Manchester United the most successful club in England and one of the most famous around the world are doing their utmost to capitalize on its reputation.
Recently it announced a £156m 8 year deal to make its training complex known as the “Aon Training Complex”.
Of course Aon have previously been the shirt sponsors paying £25m a year for that privilege.
At the same time it has agreed with Chevrolet that they will become the new shirt sponsors from 2014,in a 7 year deal worth £357m. Nike will be the producers of that shirt and will pay£650m over 10 years for having the “swish” clearly visible.
Finally it is in negotiations with airline companies to become their airline sponsor,taking over from Turkish airlines in a potential £100m contract.
The gradual strengthening of the € against the £ will see the price of our goods becoming more expensive in the U.K. thus problems for our exporters. At the moment €1 will get you £0.87 but there is speculation that parity is a possibility. Exports to Britain are worth €15 bn a year. Indigenious Irish business is heavily dependent on the U.K. so they will be hard hit by such an event.
Vitamins,supplements,sports drinks and other nutritional products have in recent times become mainstream products and are being actively produced by many of the worlds leading pharmaceutical firms. Glaxo Smith Kline, UK’s biggest drug company,and the owner of Lucozade paid €190m to acquire Maximuscle.
Other companies like Procter & Gamble,Pfizer,BASF together with Irelands Glanbia have been instrumental in the creation of products they claim improve athletic performance,make us look or feel better. In fact their combined activities has led to a new sector called the “nutraceutical” sector.
Falling sales and stiff competition from Samsung and Apple has seen the once dominant Blackberry slip in the market and leave it vulnerable to being broken up or be taken over. Lenova,the Chinese computer giant, Microsoft and Nokia are tipped to be in the running.
Ryanair has submitted a new proposal to the E.U. regarding its takeover of Aer Lingus. Having had previous attempts turned down by the state as a shareholder(25%),Air Lingus
workers via E.S.O.T.(14%) and the EU commission it is hoping for a positive response on this
occasion. A decision is due before March 6th.
In 2007 the EU blocked the takeover on the grounds of Ryanair becoming a monopoly if the bid was successful. Now it looks like Ryanair has made an arrangement for other airlines to purchase short
haul Aer Lingus routes thus ensuring competition, allowing Ryanair to expand by acquiring flights to the U.S etc.
Personal and institutional investors own 31% of Aer Lingus.
Companies that persist in sending unsolicited marketing text messages and e-mails will be prosecuted and face fines of up to €250,000 in court according to the Data Protection Commissioner(D.P.C.).
Carphone Warehouse and Meteor are just two of the companies to be found to have acted in breach of the Data Protection Act 1988 /2003, with the mobile phone network found guilty of sending unsolicited marketing texts to at least 11,000 people-fines were issued in both cases.
Retail Ireland,a division of Ibec is lobbying the Government to tackle the problem of smuggled cigarettes. Research indicates that 1/3 of cigarettes smoked are bought on the black market,costing the State massive amounts of lost taxes.
Researchers were paid to dig in the public bins of 44 towns,checking cigarette packs for duty stamps!
At present 78.5% of the price of a pack of cigarettes in Ireland is made up of excise duty + vat.
Some of our students participated in the CIMA (Chartered Institute of Management Accountants) quiz night for Junior Cert. students held in NUIG recently. Prior to the event the lads were given a tour of the Cairnes School of Business in the college. The questions were 50% from the Business Junior Cert. course and 50% general knowledge. An enjoyable evening for all.
Irish Government spending in 2011 was €64bn while income came in at almost €39 bn.
Thus we had a deficit of €25bn. This will certainly mean further cuts in expenditure and increases in taxes.
Meanwhile take a look at our national debt clock-however be warned you might start to feel unwell!