On Monday, the English soccer club Manchester United renewed its association with Adidas for another ten years by signing a 900 million pound ($1.1 billion) contract with the company. Adidas is the team’s official clothing supplier.
After finishing in the top four of the Premier League in the previous season under the management of Erik ten Hag, Manchester United will compete in the lucrative UEFA Champions League once again in the next season. The club’s American owners have been contemplating selling the club in recent months.
In the 2015–16 season, the German sportswear company Adidas took over as the club’s official shirt sponsor, reconnecting with the club after an absence of 23 years. They did so by signing a record-breaking 750 million-pound contract with Nike NKE.N to take over the sponsorship from Adidas.
The statement was made by Manchester United and Adidas in a joint press release. “The new deal increases the focus on the Manchester United women’s team since their reintroduction in 2018,” the statement said.
United’s American owners, the Glazer family, started a formal selling process before the end of last year, and the airline is currently engaging in discussions to sell itself.
Sheikh Jassim bin Hamad al-Thani, who is from Qatar, and British millionaire Jim Ratcliffe are both names who have been mentioned as possible buyers for the club.
The club, which is headquartered in the northwest of England, said that the new agreement with Adidas would extend their collaboration until June of 2035. The 2023–2024 Premier League season will begin the month after next.
According to the most recent annual report published by the corporation, the initial deal with Adidas stipulated that a portion of the annual payments be contingent upon the club’s ability to compete in the Champions League.
According to the terms of the agreement, the club will have to lower its yearly payments by thirty percent of the corresponding sum if it fails to participate in the Champions League for two or more seasons in a row.
United Airlines did not make any quick comments about the stipulations of the new arrangement. Adidas did not want to remark on the matter.
“We will combine tradition and innovation to please both the players and the fans,” Adidas CEO Bjorn Gulden said in a statement.
The 20-time winners of the English soccer championship increased their yearly profit and revenue projections late last month.