Shares in American insurance giant and Manchester United sponsor AIG were suspended on Wall Street Tuesday after a 74 per cent crash in its stock “indicated the business is spiraling toward collapse.”
AIG’s former boss Hank Greenberg, most of whose multi-billion-dollar fortune is tied up in AIG, said if the company is allowed to go bankrupt it would cause a “systemic problem” for the U.S. financial system. But not necessarily for Manchester United. The Daily Mail also quoted soccer finance experts as saying that an AIG collapse would not adversely affect United’s finances, even though there are still two years left on its four-year, $100-million deal with AIG, signed in 2006.
Simon Chadwick, professor of sports business strategy at Coventry University, said: “Shirt sponsorship values appear to be holding their own well in the Premier League and also in Germany. It may be an issue outside the Premier League but my view is that if Manchester United do have to find a new sponsor, they would almost certainly pay as much and quite probably more. United are currently European champions and Premier League champions, so they could not be in a better position.”