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

CMOs want the “brand” back in branded content

At IAB Engage, marketers for Molson, Kraft, Cara Foods talk branded content strategy

Airbnb signs deal to sponsor 2016 Rio Olympic Games

Online community is the Games' first alternative accommodations sponsor

Grey Canada gets a shot at Tequila Herradura

Brown-Forman brand awards digital CRM and below-the-line duties to WPP shop

Metro pairs fashion with food

Grocer partners with fashion magazine Flare on food-focused marketing campaign

Activia kicks off campaign with world record attempt

Yogurt brand positions itself as a "lifestyle partner" through Rogers Media partnership

HBO Canada gives fans a chance to sit on the Iron Throne

Selection of Game of Thrones products available at Toronto pop-up shop

Frank & Oak push pop-up competition in the U.S.

Montreal-based retailer is giving consumers the power to pick temporary locations

How to create an engaging flyer

Expert Patrick Rodmell shares five best practices that apply to all retail sectors

What the Heinz-Kraft merger could mean for Canada

Experts say deal will likely lead to layoffs as the two companies find ways to share costs