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When Manchester United signed on with AIG in the biggest shirt sponsorship contract in footballing history, the move was seen as vindication of Manchester Uniteds position as the most marketable football brand in the world.Today we read about the difficulties the insurance company faces and there is genuine concern that AIG will go belly-up. For Manchester United fans the details of AIGs plight are irrelevant but it would be, at the very least, a major inconvenience for the club if they were forced to find a new sponsor in the middle of the global credit crunch at the same rates as AIG were willing to pay.So how does AIGs future look like?The bad news is that the level of investment required to bail AIG out is colossal AIG have already raised $20 billion this year and are looking to raise another $40 billion. Theyve turned down financing offers that would give other parties control over the company. Theyve registered $13 billion in losses for the first 6 months of this year. Their stock has fallen nearly 80% this year.The good news (in all this mess) is that AIG is a much bigger and much more valuable company than, say, West Hams ex-sponsors XL. They have assets that they can auction off to raise the needed capital, and they have the political and financial clout to secure funding to help them ride out the storm. Its tough, but its by no means unmanageable.Long story short, expect AIG to see out this downturn in fortunes. Their deal with Manchester United a paltry $30m/year should not be under any threat (if they paid Manchester United 30m/day, it would take almost 2 years for them to run out of their $20 billion capital raised so far this year) at all.And in the case AIG do fold up, Im pretty sure Gill and co. will have sponsors lined up to take their place. And if theyre not paying as much as AIG, maybe we can get a better-looking logo the next time around?
AIGs troubles and what it means for Manchester United
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"I sat down and took time to make the right decision, which I feel I have done.
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Fabio Cannavaro has been asked if his is leaving Real Madrid in the near future, after failing to sign a new contract.The 35-year-old was recently quizzed on the topic again, despite the Cannavaro stating that the timing was not right for negotiations with the protracted boardroom drama at the Santiago Bernabeu."For now I am happy here," said Cannavaro in a recent interview. "I am a part of one of the most famous clubs in the world.""Once again, Madrid are in a difficult period at present, so I don't think that this is the right time to be discussing contract renewals," continued the Azzurri captain. "We must wait and see what happens," he suggested."It has been well documented that the Naples-born defender would love to end his career where it all started, but he is open to staying with Los Merengues if the right offer comes in.His current contract with the Spanish giants expires on June 30 and he has admitted that he is unsure where he will be playing next season, calling the situation an extremely ‘difficult' one.
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