Categories: BusinessFinance

Manchester United sign $1.1 bln Adidas kit deal for 10 years

 Manchester United signed a 900 million pound ($1.1 billion) deal with Adidas on Monday, renewing the English soccer club’s partnership with its official kit supplier for 10 more years.

Manchester United, whose U.S. owners have been considering selling the Premier League club, will return to the lucrative UEFA Champions League this year after securing a top-four finish in the domestic league last season under manager Erik ten Hag.

German sportswear giant Adidas became the club’s official kit sponsor in the 2015/16 season, reuniting after 23 years and taking over from Nike after sealing a 750-million-pound deal, which was a record at the time.

“The new deal increases the focus on the Manchester United women’s team since their reintroduction in 2018,” United said in a joint press release with Adidas.

United is still in talks to sell itself after American owners, the Glazer family, launched a formal sale process late last year.

Qatar’s Sheikh Jassim bin Hamad al-Thani and British billionaire Jim Ratcliffe are among the potential suitors for the club.

The new deal with Adidas, ahead of the 2023/24 Premier League season starting next month, will continue the partnership until June 2035, the northwest England-based club said.

The original agreement with Adidas links a part of the yearly payments to the club’s participation in the Champions League, according to the company’s latest annual report.

A failure by the club to play in the Champions league for two or more consecutive seasons reduces its annual payments by 30% of the applicable amount, according to the deal.

United did not immediately comment on the terms of the new deal. Adidas declined to comment.

“We will combine tradition and innovation to please both the players and the fans,” Adidas CEO Bjorn Gulden said.

Last month, the 20-times English soccer champions raised their annual profit and revenue forecasts.

Source : Reuters

GLOBAL BUSINESS AND FINANCE MAGAZINE

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