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

30 Under 30 call for entries

Now is your chance to be recognized as the next generation of marketing talent

On The Move: Additions at Public, 360insights, Kaiser Lachance

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

Indigo, CIBC and Scene react to loyalty program data

Bond Loyalty Report suggests more programs per consumer, but less activity

Modern Family takes product placement to the next level

ABC works the National Association of Realtors into the plot of the popular sitcom

Three ways brands must evolve to engage female influencers

Marketers need to recognize the shift from bloggers to creators says agency president

Nintendo moves its PR account to Craft Public Relations

The consumer electronics and software company to shift its communications focus

4 reasons why Aeropostale lost its cool with shoppers

Teens returned to their favourite brands after the recession, Aeropostale couldn't compete

Boston Pizza drafts hockey fans for media photo ops

Chain uses Facebook and the NHL Draft Lottery to to connect with fans and media

Fairmont Hotels puts a focus on employees in new art exhibit

Luxury hotel chain uses staff from around the globe to help tell its brand story