Manchester United with Yankees

LONDON, England -- Two of the world's biggest sports teams have announced a joint marketing deal potentially worth billions of dollars.

British football giant Manchester United and the world-champion New York Yankees baseball team, are to enter a strategic alliance to promote their sports brands.

The agreement, the financial terms of which were not disclosed, includes plans for Manchester United to tour North America before the soccer season begins in Britain in August 2003.

"This partnership with Manchester United puts our franchises in the company of one of the strongest brand names in the international sports world," said Dr. Harvey Schiller, chief executive of YankeeNets, parent for the Yankees.

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Under the joint marketing deal a "superclub" will be formed with United and the Yankees selling themselves to potential sponsors and TV networks for millions.

There will also be an exchange of merchandising -- with the clubs selling each other's souvenirs and kits.

Manchester United, worth about $800 million (£550 million), is already the richest soccer club in the world with revenues that dwarf the rest of the English Premiership and major continental European rivals like Barcelona, Real Madrid and Juventus.

David Beckham: United's star attraction

United have already made major inroads into the Far East market and chief executive Peter Kenyon spoke recently of United's desire to "break into the U.S. markets."

By joining forces United and the Yankees will be now able to negotiate television deals from a position of massive strength.

United will be joining a group that includes not only the Yankees, but also Stanley Cup ice hockey champions, the New Jersey Devils, and basketball's, New Jersey Nets.

United's wealth is far in excess of the Yankees, who are the are the wealthiest U.S. baseball team believed to be capitalised at around $584 million (£400 million).

The Yankees' wage bill last season was about $87 million (£60 million), with Derek Jeter set to become their highest earner on $17 million (£12 million) a year when he signs a new contract currently under agreement.

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That dwarfs the pay packet of United skipper Roy Keane, who collects $75,000 (£52,000) a week.

There are comparisons between Jeter and United glamour boy David Beckham. Both move in showbusiness circles and both have high-profile partners.

Beckham's wife Victoria is a member of the Spice Girls and one of the country's leading fashion icons, while Jeter's girlfriend is the current Miss Universe.

The two clubs also have a firm grip on the major trophies in their respective sports. United, the 1999 European champions, are chasing their seventh English Premiership title in nine years.

The Yankees have won three of the last four World Series, and in all a record 26.

Reuters contributed to this report.

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