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

Managing Digital: Reckitt Benckiser’s VP marketing

VP to agencies: understand consumers' digital behaviour and deliver KPIs

On The Move: Changes at FCB, eBay, Defy and Hill + Knowlton

A weekly recap of who's headed where in Canadian marketing and communications

Gap’s 1Q profit falls as it attempts turnaround

Banana Republic and Gap banners continue to struggle, while Old Navy flourishes

Campaign for weight-loss firm gives the skinny on diet fads

Dr. Bernstein effort from Giants & Gentlemen includes TV, online and OOH

Best Buy revenue slips as it closes Future Shop

Electronics retailer cites "ongoing softness" in the local market as reason for decline

Nutrition House chooses first Public Relations AOR in a decade

Idea Workshop hired to develop blogger, media and digital marketing strategies

Weber Shandwick handed digital duties for McCormick Canada

Mandate includes content creation, web development, video production and social

Doi Chaang Coffee hires Korrelation as PR AOR

Canadian coffee company looks for media support as it expands nationally