Manchester United has announced a new deal with German kit manufacturer Adidas, which will run until June 2035. The previous 10-year agreement was valued at £750m.
The club’s American owners, the Glazer family, are currently engaged in discussions regarding the potential sale of Manchester United.
Expressing his thoughts on the partnership, Richard Arnold, United’s chief executive, stated, “The relationship between Manchester United and Adidas is one of the most iconic in world sport. With its roots in the 1980s, our partnership has been reinvented over the past decade with some of the most innovative designs and technology in sportswear.”
The collaboration between Manchester United and Adidas began at the start of the 2015-16 season, following Adidas’ previous supply of United’s kit from 1980 to 1992.
The new agreement includes a minimum cash guarantee of £900m, subject to certain adjustments.
According to United’s latest annual report, a portion of the yearly payments under the original Adidas agreement is tied to the club’s participation in the Champions League. If United fails to qualify for the Champions League for two consecutive seasons, the annual payments would be reduced by 30%.
However, the club is set to make a return to Europe’s premier club competition this season after failing to qualify for the 2022-23 season.
Despite missing out on the Champions League last season, Manchester United recently announced that the club is on track to achieve record revenues.
Stronger matchday and commercial revenue led the club to revise its annual forecast from £590m-£610m to £630m-£640m, surpassing their previous record of £627.1m in 2019.
While the Glazer family expressed their readiness to sell the club last November, a takeover has yet to be finalized. Rumors suggest that some members of the family are keen on retaining an interest in the club.
Manchester United still faces significant debts, with a total exceeding £950m, including outstanding transfer fee payments of over £160m.
The new kit deal will also contribute to an increased focus on Manchester United’s women’s team, which was reintroduced in 2018.
Adidas CEO, Bjorn Gulden, stated, “Adidas and Manchester United are two of the most important brands in international football, and it is very natural for us to continue our cooperation.”
The post Manchester United And Adidas Strike £900m Deal For 10-Year Extension appeared first on SurgeZirc UK.
