Vodafone Ends Shirt Deal Two Years Early - 23/11/2005

Vodafone has ended its shirt sponsorship deal with Manchester United two years early. The £36m (£9 million a year) deal, the fifth biggest in Europe, will finish at the end of the season with Vodafone opting to associate its brand with the Uefa Champions League. The club is putting a brave face on events, claiming that 'in the current market, there is a genuine chance to attract significant additional investment.' However, Shareholders United Chairman Nick Towle commented, 'It looks as if Vodafone has got cold feet about sponsoring what us rapidly becoming a tainted brand. The Glazer debt is having an impact on team affairs.' The news comes at a time when the club is on the brink of elimination from the group stages of this season's Champions' League after a 0-0 draw against Villareal which could cost the club revenues of up to £10 million and leave a serious hole in the Glazers' financial planning. The club can only proceed to the next stage of the competition if they beat Benfica away and they have not won away in the Champions League since November 2003. A draw would leave them relying on Villareal to beat Lille which is far from certain. United officials have started to talk up the financial spin offs from finishing third and being demoted to the Uefa cup which would allow them to fix an independent television deal. However, should they lose in Lisbon they will finish bottom of the group and be denied even that consolation.