Next season, we will see Manchester United kits featuring another brand manufacturer than Nike’s. The swoosh ended the negotiations stating that the terms being sought by the English Premier League football club do not represent good value for the Nike brand and shareholders.
The Red Devils current 13-year deal with Nike expires in July 2015 and consists of a basic annual fee, plus a share of profits from merchandise sales.
The club is said to have earned around £38m (€47.5m/$65m) in total from this arrangement in 2012-13, but is reported to be seeking a new contract worth £60m per season over 10 years.
This could be a new record club kit contract, currently owned by the Puma-Arsenal partnership. Nike had the right to match any bid made by a rival, but has decided the price is too high and ended the negotiations.
Supposedly, adidas has the upper hand to replace Nike from next season onwards as official kit manufacturer. If true, the deal would represent an approximately 50 percent premium to what Nike reportedly paid the club the last seasons.
Nike said: “Manchester United is a great club with passionate fans. We are proud to have partnered with them for the last 12 years and will continue to sponsor the club until the end of the 2014-15 season.
Any partnership with a club or federation has to be mutually beneficial and the terms that were on offer for a renewed contract did not represent good value for Nike’s shareholders. We look forward to a successful final season with the club.”
The 2014-15 season marks the first campaign of United’s new shirt sponsorship deal with US automotive firm Chevrolet, which will bring in a record-breaking $559m (£357m) over 7 years (£51m a year). United’s partnership with the General Motors brand will run through 2020-21.
The last 2 years, the Barclays Premier League clubs kits sponsors has been shifting majorly. With Warrior and Under Armour partnering respectively with Liverpool and Spurs, Puma inking a record deal with Arsenal and adidas supposedly replacing Nike on Manchester United kits, we are witnessing a major shift.