Manchester United signs 10-year deal with Adidas

The $1.3-billion deal comes as Nike steps away

Manchester United has secured the most lucrative kit deal in football, announcing that Adidas has agreed to pay $1.3 billion over 10 years to take over the sponsorship from Nike.

The deal, worth 75 million pounds ($128 million) a year from 2015, was announced after Nike decided that trebling the cost of its existing 13-year equipment supply contract was not good value for the company.

The eagerness of Adidas to make the United kits is evidence of the durability of United’s brand value despite its worst-ever Premier League campaign.

Adidas currently pays around $50 million a season to Chelsea and Real Madrid, and United could make far more from the German sportswear firm than the headline figure of 750 million pounds, which is described as a “minimum guarantee.”

Nike has one more season as kit maker, recently unveiling jerseys featuring a gold Chevrolet logo for the start of the American automaker’s $559 million, seven-year jersey sponsorship deal with the team.

Adidas last held the United contract between 1980 and 1992 just before the club ended its 26-year wait for an English title in 1993, ushering in a period of dominance under Alex Ferguson.

Brands Articles

Telus gives B.C. bus commuters free wifi

Six-month pilot project tries to bolster brand in home market

McCain Foods sells frozen pizza business

North American business goes to Dr. Oetker, but keeps Pizza Pockets in Canada

The new world of loyalty data

A Q&A with Bond Brand Loyalty’s Rob Daniel

Vector strives for authenticity with YouTube star

Traffik connects Kelloggs with extreme sports fan Gavin Peacock

Bonin Bough’s digital lessons for marketers

The Mondelēz marketer shares lessons from the front lines of digital marketing

Mark’s wants #EverythingInJeans

A new campaign from Sid Lee

McDonald’s to sell packaged coffee in the U.S.

QSR to highlight coffee in restaurants

Elle partners with Hudson’s Bay on shoppable videos

#Shopyourmood 'closes the loop' for editor Noreen Flanagan

Porter Gale’s five trends to watch for

A look ahead from a former Virgin marketing exec