UNITED WERE 'WORRIED' ABOUT BEING LINKED WITH A GAMBLING COMPANY

Last updated : 06 April 2006 By Ed

Telegraph:

United were worried about how a link with a very secretive gambling company would affect their reputation as the world's leading football brand.

From next year, the 2005 Gambling Act comes into force. That establishes a new Gambling Commission with the power to regulate the way online betting companies advertise.

Although United's lawyers explored all the possible restrictions of a deal with Mansion, there were worries about the implications of children wearing United shirts promoting gambling.

The impact on United's image in the United States was also a consideration. Although something of a grey area, the 1968 Wire Act makes it potentially unlawful to gamble online in America.

That does not stop many online companies making the majority of their revenue from American punters. But advertising is not permitted and, as part of the deal, Mansion discussed "ring-fencing" their American operations to soothe United's concerns.

Nevertheless, the idea of a Premiership club, owned by a Florida-based family, pursuing a deal with a company that could be argued to be illegal across the Atlantic, did not go down well.

At least one American sports marketing company expressed unease. But, perhaps the greatest cause of concern for United is the way Mansion are financed. One of their major shareholders are a company called Sampoerna, Indonesia's biggest manufacturer of cigarettes.

In May 2005 the company, with revenues of $1 billion, were sold to Phillip Morris, confirming their position as a major player in the international tobacco industry.

A spokesman for Mansion confirmed that Sampoerna are a shareholder in Mansion, but refused to disclose any further details about their structure or how Sampoerna make their money. But it is a fact that the company have been accused of contributing to the high proportion of child smokers in Indonesia.

According to the Indonesian health department, 23 per cent of urban 10-year-olds smoke. Sampoerna's distinctive Kretek Clove brand has been blamed for extensive lung damage in regular smokers, too, as they allegedly contain four times as much nicotine as a strong Marlboro.