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By: Bethany Wales
As the former-CEO of Manchester United, Richard Arnold knows a thing or two about high stakes.
But with a recent career pivot seeing him take the helm of beloved heritage motorcycle brand Norton – which is currently fighting for survival after being rescued from the brink of collapse four years ago – the biking enthusiast has said that this time it’s personal.
Arnold will be a familiar name to most football fans. In his 16-years at the iconic Premier League club he oversaw some of the most lucrative sponsorship contracts in its history, including a world record seven-year $600m (£470m) kit sponsorship deal with General Motors in 2014 and a $1.3bn (£1bn) sports equipment deal with Adidas a year later.
But after billionaire Jim Ratcliffe snapped up a $1.65bn (£1.3bn) minority stake in the club, Arnold left his role as CEO to pursue the “opportunity of a lifetime” – leading a comeback attempt by the troubled British motorbike brand, Norton Motorcycles, as it eyes a global expansion of epic proportions.
“Norton’s heritage is undeniably huge and what we’ve got coming up is incredibly exciting,” Arnold said.
“We’re going to go from selling a relatively small number of models in one country to selling a large number of models all over the world.
“The scale of the plans is tremendous, as is the amount of resources we’re going to be pouring into them.”
Last month Norton Motorcycles’ revealed plans to release six new products by 2027 and to expand its sales into a slate of international territories, beginning with the USA, Germany, France, Italy and India.
Norton Motorcycles: Scandal and insolvency
In 2020 Solihull-headquartered Norton was rescued out of administration for the second time in less than 20 years, and has continued to see its losses widen year on year ever since.
In the year ending March 31, 2024, the company posted pre-tax losses of £38.2m, having lost £29.6m in the 12 months prior.
This was despite its revenue increasing from £370,353 to £3.9m during the year.
These recent money woes followed a high-profile pensions scandal in 2012 which saw more than 200 people lose their life savings when they were tricked into allowing around £11.5m to be transferred out of their existing retirement plans and invested into the business.
The company’s disgraced former owner, Stuart Garner, received an eight-month prison sentence, suspended for two years, after he pleaded guilty to three charges of breaching pension scheme regulations.
Since then Norton Motorcycles has worked hard to leave the saga behind and is now a separate business under new ownership.
Its current owner, the Indian multinational manufacturer TVS, has committed £200m into turning the business around, with a strong focus on product development and this latest international expansion effort.
Biking as ‘Zen therapy’
Despite the turmoil of the past 20 years, Arnold brushed off questions about whether Norton was aiming too high.
“We’re owned by a well-funded company with incredible knowledge about the global motorcycle industry,” he said.
“The scale of our ambitions for the brand is backed up by a large investment, with millions earmarked for ramping up our marketing efforts, not just in the UK, but in those key foreign markets.
“Globally the motorbike sector is experiencing strong growth, especially in the premium market which is where we reside.
“Our bikes represent more than just a way to get from A to B – they’re an investment, collectors items.
“For most motorcyclists a motorbike is part of their character and personality, so that passion and enduring relationship with their bikes is partly why you see this continued growth.”
As a biker of more than 25 years, Arnold understands the connection between rider and bike better than most.
His pride and joy, a Norton V4SV One of One, lives in his living room to “protect her from the elements” – a small price to pay, he said, given the benefits it brings him.
“Some people spend thousands on therapy or meditation lessons, but for bikers like me that zen state happens inside the helmet.
“When you’re in a car, especially a modern one, you can’t tell if it’s warm or cold outside, you can’t smell or feel the air. You’re totally disconnected from the experience.
“On two wheels you can’t help but feel that connection to the bike. And that’s an incredibly special thing.”
How does Norton compare with its competitors?
Norton isn’t the only British motorcycle brand with its sights set on world domination.
Derbyshire-headquartered Triumph Motorcycles entered China in 2022 – which it described as “very successful” in its most recent company accounts – marking its 35th entry into a non-UK market.
Bosses said they would continue to expand into new countries as part of its plan to increase its geographical footprint.
In its most recent financial year the brand sold 88,607 motorcycles wholesale with 89.5 per cent of those bought by overseas dealers – up 0.5 per cent on the year before.
This amounted to a turnover of £703m during the 12 months ending June 30, 2023, a slight decrease from £711m in the year before.
Triumph’s pre-tax profit for the period was just over £72m, up from almost £53m in the previous 12 months.
Meanwhile the European arm of iconic American motorbike brand Harley Davidson, headquartered in Oxfordshire, saw its turnover rise to £613m in 2022, up from £550m in the 12 months before. Its 2023 accounts are yet to be published.
Despite this its pre-tax profit fell £7m to £1.8m during the year, down from £8.8m in 2021. The company is due to file its 2023 financial results this week.
The European arm of Honda, based in Berkshire, also saw a slight dip in revenue to £3.5bn in the year ending March 31, 2023, down from £3.6bn in the 12 months prior. This figure included sales across its vehicle range.
Its pre-tax profit, however, increased significantly to £71m, up from a pre-tax loss of almost £15m in the year before.
The UK arm of Japanese motorbike manufacturer Suzuki bucked the trend of declining turnover, reporting vehicle sales worth £442m in the year ending March 31, 2023, up from £437m in the 12 months before.
A 19 per cent increase in UK motorbike sales, which totalled 3,281 bikes over the 12 months from 2,750 in the year before, helped to drive this increase.
The company’s pre-tax profit also increased, hitting £27m during the year from £23m in the period before.
