In a groundbreaking move, Manchester United (MANU.N) has inked a monumental £900 million ($1.1 billion) partnership with sportswear giant Adidas (ADSGn.DE) on Monday. This landmark deal signifies a momentous renewal of the English soccer club’s association with its official kit supplier for an impressive 10-year extension.
Manchester United, boasting U.S. owners contemplating a potential sale of the renowned Premier League club, rejoices as they make a triumphant return to the highly coveted UEFA Champions League this season, following a remarkable top-four finish in the domestic league under the expert guidance of manager Erik ten Hag.
The renewal marks a triumphant reunion between Manchester United and Adidas after a hiatus of 23 years, surpassing their previous record-breaking £750-million deal with Nike (NKE.N) in the 2015/16 season. As part of this exciting development, Manchester United emphasizes their dedication to empowering their women’s team since its reintroduction in 2018, as stated in a joint press release with Adidas.
The partnership’s visionary trajectory extends well beyond the 2023/24 Premier League season, setting its sights on an enduring alliance until June 2035. Notably, the new agreement stipulates that certain portions of the annual payments are linked to Manchester United’s participation in the illustrious Champions League, according to the latest annual report by the company. As a testament to their unwavering commitment, the northwest England-based club reveals that failure to secure a Champions League spot for two consecutive seasons or more results in a reduction of annual payments by 30% of the applicable amount, as per the terms of the deal.
As part of this visionary collaboration, Adidas CEO Bjorn Gulden enthusiastically affirms their dedication to combining tradition and innovation, catering to the aspirations of players and fans alike. This renewed focus promises to usher in an era of groundbreaking advancements in sports apparel, revolutionizing the soccer experience for everyone associated with Manchester United.
Amidst this momentous deal, Manchester United remains engaged in negotiations for a potential sale, following the formal sale process initiated by their American owners, the Glazer family, late last year. While Qatar’s Sheikh Jassim bin Hamad al-Thani and British billionaire Jim Ratcliffe emerge as potential suitors for the club, the newfound partnership with Adidas holds great promise for elevating the club’s financial prospects. Last month, the illustrious 20-time English soccer champions raised their annual profit and revenue forecasts, fueling optimism for a prosperous future.
