A £250 million deal could be a core part of Manchester United’s plan to build a 100,000-seater stadium.
Manchester United are yet to begin work on their new stadium with talks ongoing for a land purchase nearby Old Trafford before applying for planning permission.
Football finance expert Kieran Maguire predicts United could lower the capacity of the new stadium with Ineos expected to compromise on their ambitious plans.
When the plans were first laid out, fans were told the new stadium would be complete in 2030, but delays are expected.
Given that the stadium is expected to cost £2bn, one of the main issues is sourcing funding for the project.
Man United can strike £250m stadium deal
There are several ways United can fund the stadium build, and one option is to explore a sponsorship naming deal.
Like stadiums such as The Etihad or The Emirates, clubs often accept deals from sponsors to name venues.
Maguire spoke exclusively to United in Focus and explained that the Red Devils could easily pocket £250 million with such a deal.
“There’s no reason why Manchester United couldn’t sign a long-term deal – and I think it has to be a long-term deal – for naming rights for the stadium,” Maguire said.
“A £250 million deal could easily be signed for an 8-10 year period.
“But we’ve got to look at cash flow here when we talk about funding for the stadium. If the stadium’s being built between 2026 and 2030, but the naming rights doesn’t come in until 2030, you’ve still got to figure out how to pay for the funding during the construction period.
“So, it’s an interesting one. If I was a sponsor I’d be asking what the benefit is to me in giving Manchester United cash in 2026 if I’m not going to get the benefit for four years, which could even become five or six years.
“You can see the caution from the perspective of the other party. They’re getting all of the pain and none of the gain.”
Naming rights deal will split Man United fan opinion
Old Trafford is an iconic venue and at the heart of Manchester United’s history, accepting a naming sponsorship was never on the table, and it would’ve caused outrage if it was.
The new 100,000-seater stadium is yet to have a name coined, and that leaves Ineos the opportunity to pursue a naming deal.
READ MORE: Kieran Maguire says new £10m Ineos plan is a ‘shame’ for genuine Man United fans
It makes sense from a financial point of view, but for the fanbase it often comes across as artificial and straying from club culture.
Ratcliffe has hinted at an Apple sponsorship at United having already partnered with household names such as Coca Cola. But will United fans want an ‘Apple Arena’ instead of ‘New Trafford’? Ineos run the risk of getting on the wrong side of supporters if the naming deal goes wrong.
from United In Focus https://ift.tt/nrXacQU