Manchester United have fortified their commercial partnership with Adidas, signing a 10-year extension deal worth a baseline figure of £900m.
This lucrative arrangement extends their alliance with the global sportswear giant until June 2035, offering an encouraging boost to the club’s revenue stream.
This renewed sponsorship agreement, superseding the preceding 10-year contract worth £750m, further strengthens the bond between Manchester United and Adidas, a relationship that has been engrained in the annals of football since the 1980s.
The club’s Chief Executive, Richard Arnold, conveyed his enthusiasm about the agreement, terming the association between Manchester United and Adidas as “one of the most iconic in world sport”. Arnold applauded the evolution of their partnership over the past decade, which has consistently showcased cutting-edge designs and sportswear technology.
Adidas’ relationship with Manchester United was rejuvenated at the onset of the 2015-16 season. Prior to that, Adidas had been the kit supplier for the club from 1980 until 1992.
The English giants ensured that the updated deal incorporated a “minimum cash guarantee of £900m, subject to certain adjustments”.
Reflecting on the terms of their original agreement with Adidas, a portion of the yearly payments is tied to Manchester United’s Champions League participations.
If the club fails to qualify for the prestigious tournament for two consecutive seasons, it would trigger a 30% reduction in the annual payments.
Despite missing out on Champions League action in the 2022-23 season, Manchester United appears optimistic, expecting record revenues.
The club has adjusted its annual forecast to between £630m and £640m due to stronger matchday and commercial revenues. This projection surpasses their previous best of £627.1m reported in 2019.
While the club’s American owners, the Glazer family, continue negotiations to sell Manchester United, the acquisition process is yet to be finalised. Persistent rumours suggest that some family members might retain a stake in the club.
Despite a financial burden exceeding £950m, inclusive of more than £160m in outstanding transfer fees, the fresh kit agreement underpins the club’s growing focus on its women’s team, reintroduced in 2018.
Adidas’ CEO, Bjorn Gulden, echoed the shared excitement, stating that Adidas and Manchester United are “two of the most important brands in international football”, thus making their continued collaboration highly significant.
Fans got a glimpse of the brand-new home kit in the latest pre-season friendly against Borussia Dortmund, indicating the successful commencement of this new chapter in Manchester United’s partnership with Adidas.