To cut cost, AIG is not renewing its sponsorship for British soccer team Manchester United. AIG was currently paying around 25 million dollars per year to sponsor the team. After receiving the 150 billion bailout from the U.S government, it is not surprising that the company is reducing costs. AIG has already cancelled its sponsorship for the U.S Davis Cup tennis team. I am sure AIG will continue to reduce costs as they try to get back on track. Soccer teams get paid huge amounts of money from there sponsors. There is no doubt companies see potential in sponsorship as millions of people follow soccer around the world and so many buy the soccer kit. This puts there name out to millions of people however, in my opinion there will many more companies that will be more hesitant to sponsor professional sports as they will also look to reduce costs.
http://news.bbc.co.uk/2/hi/business/7841748.stm
Sunday, January 25, 2009
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