Manchester United have secured a 10-year extension to their partnership with sportswear giant Adidas, worth at least £900m.
The new deal will extend their support until June 2035, surpassing their previous 10-year contract worth £750 million.
Regarded as the most significant cut deal in Premier League history, the extension puts Manchester United ahead. While Chelsea signed a £900 million deal with Nike in 2016, it covered a longer period of 15 years from 2017.
Praising the “iconic” relationship between Manchester United and Adidas, Richard Arnold, United’s chief executive, highlighted the long-standing relationship dating back to the 1980s. He credits the collaboration of the last decade which has resulted in the introduction of innovative designs and sports technology in his sportswear.
The current partnership between Manchester United and Adidas began during the 2015–16 season, reviving a previous relationship spanning from 1980 to 1992 when Adidas supplied the club’s kit.
As talks continue about a possible sale of Manchester United by the Glazer family, the new deal “comes with a cash guarantee of at least £900 million, subject to certain adjustments.” According to United’s latest annual report, the original deal with Adidas linked part of the annual payments to the club’s participation in the Champions League. Failure to qualify for the Champions League for two consecutive seasons can lead to a 30% reduction in annual payments.
United are returning to Europe’s elite club competition this season after failing to qualify for the 2022-23 campaign. Despite missing out on the Champions League last season, the club recently posted record revenue estimates thanks to strong matchday and merchandising earnings. As a result, they changed their annual forecast to an impressive range of £630 million to £640 million, beating their previous best of £627.1 million in 2019.
While a potential sale of Manchester United remains in focus, the club is facing considerable debt, including outstanding transfer fees of more than £160 million. Nevertheless, the new kit deal will help Manchester United focus on their women’s team, which was re-introduced in 2018, underlining their commitment to promoting women’s football.
Adidas CEO, Bjorn Gulden, emphasized the natural synergy between the two brands, describing Manchester United and Adidas as key players in international football. Their continued collaboration is expected to set new standards in sportswear in the football industry.
