Monday, April 25, 2011

Manchester United Demanding £450 Million Nike Kit Deal


Manchester United's home shirt for 2011/2012, designed by Nike
Manchester United will attempt to reach a new kit manufacturing deal with Nike in the coming months, which could see The Red Devils earn up to £35 Million per annum and over £450 Million over a period of more than a decade. The current deal with the world's no.1 sports brand expires in 2015, and will soon be renegotiated...

The France national football team recently agreed a €42.5 (£38) Million-a-year contract with Nike, lasting 7½ years. The total amount paid to The French Football Federation (The FFF) will eventually reach €319.5 (£282) Million, setting the tone for new kit manufacturing deals negotiated with American-based sports brand, Nike. Due to the fact that United obliterate France's global popularity, Nike will have to pay at least £35 Million per year to The Reds in future. 

Talks have not yet commenced, but are expected to conclude before 2012. The current 13 year deal ends in 2015, having been agreed in August 2002 after Umbro, Admiral Sports and Adidas had all previously manufactured the club's kits and other merchandise. United currently receive less than £23.5 Million each year from Nike - amounting to £303 Million over more than a decade. The new deal is expected to be boosted by over £10 Million per year.
Manchester United, Nike
Manchester United and Nike have been in partnership since late 2002

Recent contracts have seen United's world-record kit deal broken, with France and Barcelona both earning long-term arrangements with Nike worth £38 Million and £26.3 Million every year respectively. Added to this is the fact that rivals Liverpool are dropping kit creator Adidas for New Balance 'Warrior Sports' for the beginning of the 2012/2013 season, having agreed a £25 Million-a-year pact, over a currently unspecified time frame.

Considering Manchester United outsell any other sports team in the world in terms of merchandising, Nike or United cannot afford to lose their lucrative agreement. According to sources, The Glazer Family are targeting a £450 Million deal with Nike, over a period of more than 10 years - most likely 13 years. That would bring-in upwards of £35 Million to Old Trafford annually from Nike alone, not to mention approximately £100 Million in other sponsorship payments.

...Combined, enough to clear off our £600 Million debt figure over a number of years.

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