New Details About The Shirt Sponsorship Deal. You'll be shocked to read.

Posting this on it's own thread even though we've already got the financial thread and the shirt sponsor thread because this is BIG news and it will get lost in there. I'll merge at a later date.

A new update added to the IPO.

MANCHESTER UNITED

This free writing prospectus relates only to, and should be read together with, the preliminary prospectus dated August 3, 2012 (the “Preliminary Prospectus”) included in Amendment No. 3 to the Registration Statement on Form F-1 (File No. 333-182535) (the “Registration Statement”) relating to the initial public offering of Class A ordinary shares of Manchester United plc. The information in this free writing prospectus is preliminary and is subject to completion or change. This free writing prospectus is only a summary of the changes included in the Preliminary Prospectus and should be read together with the Preliminary Prospectus included in the Registration Statement, including the section entitled “Risk Factors” beginning on page 18 of the Preliminary Prospectus. Capitalized terms used, but not defined, herein have the meanings set forth in the Preliminary Prospectus.

This free writing prospectus reflects the addition of the following language to the Preliminary Prospectus under the caption “Business — Revenue Sectors — Commercial — Shirt sponsor”:

Only July 26, 2012, consistent with our strategy to grow our global sponsorship revenue, we entered into an agreement with General Motors for Chevrolet to become our exclusive shirt sponsor, beginning in our 2014/15 season.

The term of the agreement runs through the end of the 2020/21 season. Annual revenue from our new shirt sponsorship agreement will be $70.0 million in the first season, and will increase by an additional 2.1% in each season thereafter through the term of the agreement. We will also receive approximately $18.6 million in fees in each of the 2012/13 season and 2013/14 season under the terms of our new shirt sponsorship agreement. Total revenue payable through the end of the 2020/21 season under our new shirt sponsorship agreement is approximately $559 million. Holy f**k !!!!

To review the Preliminary Prospectus included in the Registration Statement, click the following link on the website of the U.S. Securities and Exchange Commission (“SEC”) at www.sec.gov as follows (or if such address has changed, by reviewing the issuer’s filings for the relevant date on the SEC web site): http://www.sec.gov/Archives/edgar/data/1549107/000104746912007740/0001047469-12-007740-index.htm. The issuer’s Central Index Key, or CIK, on the SEC web site is 0001549107.

Manchester United Ltd., the issuer, has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you are encouraged to read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, copies of the preliminary prospectus related to the offering may be obtained from (i) Jefferies & Company, Inc., Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, 12th Floor, New York, NY 10022, or by telephone at 877-547-6340, or by email at Prospectus_Department@Jefferies.com, (ii) Credit Suisse Securities (USA) LLC, Attention: Prospectus Department, One Madison Avenue, New York, New York, 10010, or by telephone at +1 (800) 221-1037, or by email at newyork.prospectus@credit-suisse.com, (iii) J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by calling toll-free 866-803-9204, (iv) BofA Merrill Lynch, by calling 866-500-5408, or (v) Deutsche Bank Securities Inc. (Prospectus Group, 60 Wall Street, New York, New York, +1 (800) 503-4611 or prospectus.cpdg@db.com).

http://www.sec.gov/Archives/edgar/data/1549107/000110465912054176/a12-11113_16fwp.htm

I, and everyone else, knew it would be a big deal but THIS big ?

Me thinks either the guy who negotiated the deal on their side is an incompetent fool or something dodgy has gone on. That sounds insane

Are you sure ?

edit. I read profits where you had put revenue.

Profits 2011.

"In 2011 GM earned $6.1 billion in net income, an amount enlarged by a special exemption from income tax granted by the U.S. government, which owns roughly 25% of the automaker. That compared with $20.2 billion in net income by Ford Motor Co. (F) and $19.7 billion by Volkwagen AG. GM, while solidly profitable, trails the other top six global automakers in terms of gross profit margin."
http://finance.fortune.cnn.com/2012/05/29/gm/

Also
http://www.reuters.com/article/2011/08/04/us-gm-idUSTRE7730JW20110804
http://www.bbc.co.uk/news/business-17062698