Like many a United fan I am sure you have found it strange that United’s much talked about strip is nowhere to be seen. That United are touring the States in last seasons jerseys and that while other clubs around the country have fans sporting their team’s new colours and we all sitting on our hands counting down the days. Here is why…
Manchester United officially unveil their latest strip on August 1st ending their 13 year relationship with Nike and entering into a new mouth watering 10 year deal with Adidas. The deal is set to be worth £750 million, that is £75 million a year. Let’s put this into perspective… Adidas pay Real Madrid a figure of £31 million a year… Let that sink in. Who is the biggest club in the world? Is there any doubt?
United’s current deal with Nike, which ends on July 31st had United raking in £24 million a year. Ed Woodward had met with Nike’s main men to thrash out a deal or more so lay down the demands he expects from his sponsors. Nike declined stating “the terms on offer for a renewed contract did not represent good value for Nike’s shareholders.”
So what exactly were Woodward’s demands? United insisted that the rights for training strips, tops and merchandise would all end up back in the hands of United. Currently United split evenly the revenue created from the superstore, online mugs, towels, scarfs etc etc. The new deal thrashed out would mean United would have to manufacture these products but it also means United get to keep all the profits .Earning close to £40 million last year from merchandise just goes to show the master stroke Ed Woodward has pulled off.
Adidas are in no doubt about the deal stating “this collaboration marks a milestone for us when it comes to merchandising potential, we expect total sales to exceed £1.5bn during our partnership.”
United also earn £53 million a year from their shirt sponsors Chevrolet and a mammoth £120 million a year from AON just to have their names on our training kits!
With such an enormous strip deal in place, a price hike (inevitably) on the much anticipated stripes on our kits, a new TV deal, the enormous cash boost the champions league will once again give us and the way United are conducting transfer business it certainly looks like we are becoming the fiercest and biggest team in the world once again.
And finally, just in case you are in any doubt who the biggest club in England is just look at this… As we know United earn a monstrous £75 million a year from Adidas. Liverpool earn £25 million a year and Manchester City earn a measly £12 million from their respective kit suppliers!