AIG, the global insurance giant that has fallen on hard economic times to say the least, has informed Manchester United of the English Premiere League that they will not be renewing their sponsorship. The four-year, $100 million deal expires May 2010 and AIG says they are already trying to re-work that last year.
“In October, AIG told Manchester United that it is not renewing its sponsorship,” the company told Reuters.
One the world’s largest insurers, AIG had to accept $85 billion from the United States government to avoid bankruptcy. That number soon ballooned to $152 billion.
So now, the company is trying to cut costs and ending their sponsorship of one of the world’s most popular sports teams is one way to do it.
Some might argue that taking an executive retreat to the tune of $443,000 shortly after the bailout isn’t a frugal way to do business, but that’s neither here nor there.
The replacement for AIG? It could be India-based real estate and financial services giant Sahara.
“The process for the 2010 season has already started,” Man. U. spokesman Philip Townsend said. “Sahara is one of a number of companies who have expressed an interest.”