Kieran Maguire: Man United shielded from Cristiano Ronaldo exit blow by £75m-a-year deal
Man United will not suffer a great deal in the commercial department if Cristiano Ronaldo quits this summer because of the structure of their kit deal with Adidas.
That is the view of finance guru Kieran Maguire, speaking exclusively to Football Insider about the wantaway 37-year-old’s effect on the Red Devils’ bottom line.
United’s share price on the New York Stock Exchange soared to around $20 shortly after the legendary forward re-signed for United in August last year.
But as relayed by Maguire via Twitter last Tuesday (5 July), the stock value has tumbled and now sits below $11.
The slump coincides with the news that Ronaldo has not joined up with the United squad for the pre-season tour of Thailand and Australia.
But Maguire explained why United’s £75million-a-year deal with Adidas will insulate the Old Trafford giants from a direct revenue hit.
“With United’s commercial income over the last three quarters compared to recent years, the Ronaldo effect is negligible,” he told Football Insider’s Adam Williams.
“The reason for that is because the Adidas deal is structured in such a way that there is a guaranteed fee of around £75m. After that, you’ll see a relatively small margin on each shirt being sold.
“What people don’t realise is that United fans will buy a shirt in any case. Over the last 12 months, they might have bought a United shirt with Ronald’s name on the back but they aren’t buying more than one.
“It’s a substitute effect rather than additional revenues.
“United as a brand is actually smaller than Ronaldo. You only have to compare their Instagram followers to see that. If people want to benefit commercially from Ronaldo, they go to the player himself.”
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