Manchester United are reportedly going to announce a new five-year sponsorship extension with kit manufacturer Nike, which will be worth £300 million to the Old Trafford club. For months now the rumours have been rife that United would command a £1 billion sum to agree a new kit deal with the American company, who have provided the kit for the team since 2002 and is due to expire at the end of the 2014/15 season.
It is being reported in The Sun that United’s new kit deal with Nike will be worth £60 million per year, which is nearly double Real Madrid’s £31 million a year deal with Adidas, which until now was the biggest deal for kits in world football. United have also reportedly been granted sales rights for their kits, which could be worth another £15 million per year, which could see the five-year deal worth a total of £375 million for its duration.
Nike will have provided United with their kit for 13 years which beats Adidas’ 12 years but is no way near the 40 years that Umbro provided the kit, in two spells from 1945-1975 and again from 1992-2002. The current Nike deal was reported at £303 million for the 13 years, and with this extension which will run for five-years reported at £300 million, should it end up running for the same amount of time, it could bring the club close to £1 billion in revenue.
Of course Nike will be making a lot of money selling the official club kits (shirts, shorts and socks), training shirts, jackets and much more merchandise, but the money will come in handy for United, who are currently in just under £400 million of debt, which has shrunk over the last few years, which is a good sign.
At the start of next season, United will change shirt sponsors from AON to American car giant Chevrolet, which will be worth £357 million and is due to expire in 2021, so effectively United will be worth a further £732 million, which is just revenue from signing deals with two companies to bear their names/logos on their kit, which when you consider the debt the club is currently in, it will help clear that and free up United’s future earnings from servicing and paying debt, which was wrongly piled on the club during the Glazer takeover back in 2005.
By Paul Bienkowski
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