Adidas Signs $1.2 Billion Partnership With Manchester United
Manchester United and Adidas have sealed a groundbreaking deal, extending their apparel-sponsorship contract for an astonishing £900 million ($1.2 billion) over the next ten years.
The partnership between the British football team and the German sportswear company, one of the biggest in the Premier League, began in 2015 after Manchester United switched from Nike. In this extended collaboration, Adidas will continue producing kits and other apparel for the team.
According to Manchester United’s website, the Adidas partnership has thrilled fans globally with its innovative initiatives, iconic on-pitch designs, and popular culture wear. The new deal aims to place greater emphasis on the women’s team, offering new apparel options.
Adidas CEO Bjorn Gulden expressed immense pride in extending the contract with Manchester United, as both brands hold significant prominence in the world of international football, making their cooperation a natural fit.
The latest deal represents a notable increase from the previous agreement, which was valued at around £750 million. Such commercial deals are highly lucrative for sports teams, as their global appeal grows, and selling fashionable clothing becomes an additional revenue stream.
Interestingly, this deal comes at a time when the world-renowned club might be up for sale. Last year, the American owners, the Glazer family, announced their intention to explore strategic alternatives, which could potentially include a complete sale. This news was welcomed by fans, as the ownership has been deeply unpopular since the leveraged buyout left Manchester United with a net debt of $626 million, according to the latest accounts.
Forbes ranks Manchester United as the world’s second most valuable team, estimating its value at a staggering $6 billion. Following the announcement of the contract extension, shares of the team saw a 2% increase in trading.
