Premier League champions Manchester United have agreed a three-year sponsorship deal with Zong, a Pakistani mobile telecommunications company. Zong will become the official mobile partner of Manchester United in Pakistan, allowing its customers to watch all of the team’s goals and receive news, interviews and other exclusive content.
Manchester United commercial director Richard Arnold said: It is a relatively young company but has ambitions to be one of the major players in the country. Last night, Manchester United recovered from Sunday’s 6-1 drubbing at the hands of local rivals Manchester City with a 3-0 Carling Cup win away at Aldershot.
A look at Manchester United wages shows little room for actual transfers, just a lot of rumors. Besides a transfer of Ron Vlaar -- which is possible, particularly if Aston Villa wants some money instead of letting him go on a free transfer at the end of the season -- the rest of the players are surely needed by their respective clubs and would be too expensive for Manchester United to acquire. Financially, there are four things for the club to consider when looking at transfer spending moving forward: UEFA's Financial Fair Play (FFP) regulations and then Premier League's home grown talent rule, wage uplift rule, and break-even rule. Manchester United revenue is expected to drop ?40 million to ?50 million just from missing out on the Champions League this season. With both break-even rules measured over a three year period -- Manchester United has been profitable the past two years -- basically any spending during this transfer window won't affect either break-even test for next year. Homegrown talent  The next rule teams need to keep in mind for transfers and squad composition is the homegrown talent rule, which requires teams to have 8 "homegrown" players in order to have a full 25-man roster of players over the age of 21.
Wage uplift  The Premier League's wage uplift rule is the one area that may impact the team during this transfer window.
The wage uplift rule was started as part of the Premier League's "short term cost control" -- it compares the total player wages ending in each season against the benchmark year. Or wages can be higher than the rule if the increase is funded by the club's "own revenue," which includes essentially all revenue besides Premier League TV money and includes profit from player sales.
The mistake I've seen a few analysts make is to simply pull wages from the annual report, but that number includes all the wages and social security costs for the club's 800-plus employees and 2,300 temporary staff, in addition to the 49 players on the first team squad.


With the player wage increase estimated at ?10 million to ?17 million and "own revenue" up only ?14 million to ?24 million, that leaves little room for a major signing, unless there is also an accompanying sale or player loan.
Manchester United transfers going forwardWhile the January transfer window is limited, things look good for this summer, regardless of whether the club makes the Champions League or not.
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While UEFA FFP regulations don't apply this season, assuming Manchester United qualifies for European play in 2015, this season's decisions will matter. You can read more about Manchester United transfers, financial fair play, and the break-even tests in my upcoming article.
Without getting into all the details, Manchester United is well above that threshold with 11 qualifying players, so the roster is unaffected.
While fans are hoping for a big money signing announcement, this seems unlikely under the wage uplift rule unless another player is transferred out at the same time. The 2012 to 2013 season currently serves as the benchmark, and the rule applies to the seasons ending in 2014, 2015, and 2016. With the team not making the Champions League, I expect "own revenue" including profit from player sales to be around ?315 million to ?325 million for this season.
It is remarkable that Manchester United's own revenue is up despite the approximate ?50 million hit the club is taking from not making the Champions League.
At the end of last season, Manchester United added 16 coaching, 13 commercial, 22 media, and 78 other staff for a total of 126 new employees compared to the 2012-2013 season.
The ?75 million a year Adidas deal will provide a big boost to revenue starting next season, and the club will surely add more sponsors to increase revenue between then and now.
But if you want to make sure that 2015 is your best investing year ever, you need to know where to start.


The release of the home kit confirms those rumours, with the leaked designs matching the official photos.. 2nd and the rumor mill in full swing, it's a good time to look at how the various FA and UEFA rules on spending and costs could affect the club.
However, the steady increase in revenue from sponsorships, which should rise nearly 25% this season to ?170 million as a result of the notable $70 (?46) million a year Chevy kit sponsorship, means the club will be close to breakeven this season.
So Manchester United's player wages are allowed to be ?14 million to ?24 million above the 2012 to 2013 level. This shows how exceptional the organization is when it comes to generating commercial and sponsorship revenue. Using the club guidance for wages and assuming the employee numbers are unchanged, we can back out the social security costs and some other small costs, so my estimate of wages and salaries is ?175 million to ?182 million for the 2014 to 2015 season.
In the meantime, Ed Woodward and the Glazers have invested the club's finances well over the past eight years, and they should continue to do so going forward. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead.
Making some basic assumptions, my analysis shows Manchester United doesn't have much room to maneuver in this transfer window.
We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.



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