Record-breaking partnership extension worth £900 million between Manchester United and Adidas
Record-breaking partnership extension worth £900 million between Manchester United and Adidas
Manchester United and sportswear behemoth Adidas have agreed to a minimum £900 million 10-year extension of their existing alliance.
Their partnership will now last until June 2035, beyond their prior 10-year, £750 million arrangement.
This renewal puts Manchester United in the lead and is thought to be the biggest clothing contract in Premier League history. Chelsea and Nike agreed to a £900 million contract in 2016, although it was for a lengthier 15-year period starting in 2017.
Richard Arnold, United's chief executive, praised the "iconic" partnership between Manchester United and Adidas and emphasised the relationship's rich history, which dated to the 1980s. He praised their decade-long cooperation, which led to the introduction of cutting-edge designs and sports technologies.
During the 2015–16 season, Manchester United and Adidas rekindled their prior connection, which lasted from 1980 to 1992 when Adidas provided the team's uniforms.
The new agreement includes "a minimum cash guarantee of £900 million, subject to certain adjustments," as conversations concerning the Glazer family's future sale of Manchester United continue. The first contract with Adidas ties a percentage of the yearly compensation to the club's Champions League participation, according to United's most recent annual report. A 30% drop in yearly earnings is possible if two straight seasons of Champions League failure occur.
After failing to qualify for Europe's top club tournament in 2022–2023, United is returning this season.
While Manchester United's prospective sale is in the news, the team still has a large debt load, including over £160 million in unpaid transfer fees. However, the new clothing contract will help to increase the attention on Manchester United's women's squad, which was reintroduced in 2018 as a symbol of their dedication to supporting women's football.
Bjorn Gulden, the CEO of Adidas, stressed the natural partnership between the two companies, viewing Manchester United and Adidas as significant figures in world football. Their ongoing partnership is anticipated to raise the bar for sportswear in the football market.
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