adidas eyes S$3.2b in sales with new United deal
MANCHESTER — German sportswear and apparel brand adidas has forecast product sales from its partnership with Manchester United to reach £1.5 billion (S$3.2 billion).
MANCHESTER — German sportswear and apparel brand adidas has forecast product sales from its partnership with Manchester United to reach £1.5 billion (S$3.2 billion).
Yesterday, the English Premier League club secured the most lucrative kit deal in football, announcing that adidas has agreed to pay US$1.3 billion (S$1.6 billion) over 10 years to take over the sponsorship from Nike, reported the Associated Press.
The deal, worth £75 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.
Real Madrid’s £31 million-a-year deal with adidas was the previous biggest kit deal.
The eagerness of adidas to make the United kits is evidence of the durability of United’s brand value despite their worst-ever Premier League campaign.
“We are excited to team up with Manchester United, one of the most successful and most loved football clubs globally,” said adidas Group chief executive officer Herbert Hainer in a statement.
“Our new partnership with Manchester United clearly underlines our leadership in football and will help us to further strengthen our position in key markets around the world. At the same time, this collaboration marks a milestone for us when it comes to merchandising potential.
“We expect total sales to reach £1.5 billion during the duration of our partnership.”
Nike has one more season as kit maker. AGENCIES