Why Liverpool Should Apply the Man Utd Model
This
week Liverpool announced further losses of £40.5m whilst Manchester United
announced yet another commercial deal with a Danish credit card company.
More
or less on a weekly basis Man Utd have been announcing high profile global and
regional commercial deals. With over 40 staff dialling for dollars in a swanky
Mayfair office, the commercial strategy is reaping huge rewards. Their new
shirt sponsorship set to start in 2014/15 season with Chevrolet is worth over
£40million per annum, more than double what Liverpool currently get from
Standard Chartered Bank.
The
reports suggest that Liverpool need to move into a new stadium to develop
revenues from Naming Rights etc but the fact is Man Utd are hampered in that
regard, impossible in many ways to change the name from Old Trafford without
alienating their global fan base.
Liverpool's
ownership by Fenway Sports was supposed to bring significant commercial
advantage tapping into the huge American franchise and commercial contacts.
Frankly this has not happened thus far. The £40million loss posted by Liverpool
could be made up with two or three commercial sponsorships at Man Utd.
Liverpool
should be taking the Man Utd model, copying it and replicating it. The 3 reds
(Liverpool, Man Utd and Arsenal) have a large share of global football support
particularly in markets like Asia.
It's
not rocket science, Man Utd have recognised that a combined global and regional
sales strategy is the solution to generating maximum commercial revenue. Losses
of £40 million should be a thing of the past !
