Manchester United Put Pressure on Nike for Better Sponsorship Deal

Hi everyone,
This year, Under Armour and Warrior entered the football market by partnering respectively with Tottenham and Liverpool. Two new “kids on the block” in the global football. As a result, Manchester United is reported to put pressure on Nike for a better deal.

Under Armour, a Baltimore-based sportswear brand inked a deal with the Spurs for $80 million over 5 years starting season 2012-2013. Liverpool FC partnered with Warrior, a division of New Balance. A 6 year agreement starting June 1 , 2012 costing $41 million a season. This deal beats Manchester United’s previous Premier League kit record of $38m with Nike.

So Under Armour and Warrior enter the football business and challenge the powerhouses adidas and Nike. But to what extend?

Well, Ed Woodward, Manchester United’s Executive Vice Chairman said: “We continue to believe that there will be an opportunity to reset our existing deal with Nike to market rates. There have been many changes to the world of football since this deal was negotiated in 2001.” [Source: Biz Journal]

According to Bloomberg reports ManU, after reaching a record $559 million deal with General Motors that will put the Chevrolet brand on the front of its shirts, will next set its sights on getting a better deal on its decade-long partnership with Nike.

The Nike deal with Man Utd is expiring in 2015, the club is working on getting a better deal from Nike based on Ed Woodward’s comments and also, due to the arrival of Under Armour and Warrior on the marketplace. Earlier this year, Warrior inked a deal with Liverpool and outbid adidas.

Warrior create the Liverpool FC home, away and third kits, as well as their training wear for the next six years.

Nike and adidas are no longer the only choice of clubs for global sponsors. Although Under Armour and Warrior are “rookies” compared to the Beaverton and Herzogenaurach firms, more competition is proven to be beneficial for everybody.

Karl Lusbec