Manchester United and Adidas are extending their apparel-sponsorship contract in a record-breaking £900 million ($1.2 billion) deal for another decade.
The German sports apparel company will keep making kits and other apparel for the English football team, in one of the biggest Premiere League sponsorships that began in 2015, following the team’s abandonment from Nike.
Manchester United said on its site that the Adidas partnership has “excited fans around the world with forward-thinking initiatives, iconic designs on the pitch and fan-favorite culturewear off of it” and that new deal “increases the focus” on its women’s team for new apparel.
Bjorn Gulden, CEO of Adidas, stated,
“We are extremely proud to announce the extension of the contract with Manchester United. 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 deal is worth more than the one before it, which was about £750 million. Deals like these can be lucrative for sports teams because they gain more international appeal and become a source of additional revenue through the sale of fashionable clothing.
The partnership comes as the undeniably popular club is conceivably available to be purchased. The Glazer family, which owns it in the United States, stated last year that it has begun a “process to explore strategic alternatives,” which may include a complete sale.
The 145-year-old Manchester United team is valued at $6 billion by Forbes, making it the second most valuable team in the world. Shares of the team perked up 2% in trading following the news.