MANCHESTER, England - Qualcomm (NASDAQ:QCOM) Technologies, Inc. and Manchester United (NYSE:MANU) have announced the extension of their principal shirt sponsorship deal until 2029. The extension follows the successful launch of Manchester United's home, away, and third shirts, which for the first time, feature the Snapdragon brand. Snapdragon is Qualcomm Technologies' consumer brand of processors, present in over 3 billion devices worldwide.
The partnership, which began with the 2024/25 season, has already resulted in a significant digital presence, with the shirt launches generating over 2 billion digital media impressions, a record for the club. This marketing success has been coupled with a 256% increase in the Snapdragon Insiders community since the home shirt's release in July, now boasting over 16 million members.
In a move to deepen fan engagement, Qualcomm Technologies introduced an augmented reality (AR) experience accessible via a QR code on the shirts. This innovative feature transports fans to Old Trafford's pitch and provides exclusive content throughout the season.
As part of the expanded agreement, Qualcomm Technologies has secured rights in the PC category and will have its logo featured on the back of Manchester United shirts in the upcoming 24/25 season. This additional branding will be visible in Women's Super League fixtures and select men's, women's, and academy matches.
Omar Berrada, CEO of Manchester United, highlighted the synergy between the two organizations and expressed pride in the extended partnership. Don McGuire, Senior Vice President and CMO of Qualcomm Incorporated, echoed this sentiment, emphasizing the aim to support the club's ambitions on and off the field, including the redevelopment of Old Trafford and Carrington.
The extended partnership is a testament to the successful collaboration between the technology and sports sectors, aiming to leverage integrated marketing solutions to boost brand awareness and affinity. This news is based on a press release statement.
In other recent news, Manchester United plc has announced a £50 million renovation of their Carrington Training Complex, a project led by architectural firm Foster + Partners. This investment is part of a larger £60 million two-year investment aimed at creating an integrated facility for the club’s entire football department. The refurbishments will focus on the gym, medical, nutrition, and recovery areas, with an emphasis on innovation and teamwork. The project is expected to commence next week and continue throughout the 2024/25 season.
Additionally, Manchester United has undergone significant changes in its executive leadership. Interim CEO Patrick Stewart and CFO Cliff Baty will be leaving their positions at the end of the season, with Jean-Claude Blanc stepping in as temporary CEO until Omar Berrada assumes the role on July 13. Roger Bell will be taking over as CFO. These changes are part of recent developments in the club's strategy to maintain its status as a leading sports and entertainment brand.
InvestingPro Insights
As Manchester United forges ahead with its partnership with Qualcomm Technologies, the club's financial metrics offer a glimpse into its market position. According to InvestingPro, Manchester United's adjusted market capitalization stands at $2.84 billion. This valuation comes at a time when the club is making strategic moves to enhance its global brand presence and fan engagement.
InvestingPro data reveals a robust gross profit margin of 85.77% for Manchester United in the last twelve months as of Q3 2024, reflecting efficient cost management in generating revenue. However, this financial strength contrasts with a negative revenue growth of -19.62% in the same quarter, which could suggest challenges in maintaining consistent revenue streams or reflect seasonal fluctuations in the sports industry.
An InvestingPro Tip highlights that despite a negative P/E ratio of -27.19, the club's EBITDA growth soared by 70.88% in the same period, indicating potential for future profitability and investment opportunities. This tip, along with others available on InvestingPro, can provide valuable insights for investors considering the club's stock. In fact, there are over 12 additional InvestingPro Tips available for Manchester United, offering a deeper analysis of the club's financial health and stock potential.
With an eye on the future, Manchester United's next earnings date is set for September 24, 2024, a crucial moment for stakeholders to assess the financial implications of the club's strategic initiatives, including its high-profile partnership with Qualcomm Technologies.
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