English soccer giants will end their 11-year association with Nike after the sportswear giant was outbid by rival Adidas for the contract, reports Reuters. The news agency reports that Nike pulled out of negotiations after Adidas bid $100 million for the rights to make the United jersey.
Here’s what you need to know:
1. Adidas Will Take Over in 2015
Chevrolet's new kit, sponsored by Manchester United. pic.twitter.com/E0dgg2Wegb
— Tom (@FourFourTom) July 7, 2014
Man United has just launched their 2014/15 jersey, the first with American car company Chevrolet as the shirt sponsor. The team’s Nike deal expires in 2015 with Adidas expected to take over for the 2014/15 season. Bloomberg reports that the negotiations over a new deal between Nike and Manchester United have been ongoing since 2012.
2. Nike Refused to Pay the $100 Million That United Wanted
According to Reuters’ source, “Clearly Nike’s soccer business is booming and they could easily afford to do this (deal). They had the right to match any other offer but looking at the deal on the table, they will walk away as it doesn’t make commercial sense.” In 2013, Man United took in $64.7 million from Nike, a sum that includes a share in profits.
3. These Are Interesting Times For the World’s Biggest Soccer Club
Manchester United is in a curious state of rebuilding right now. Since legendary manager Sir Alex Ferguson retired in 2013, the team has struggled on the field. The 2014/15 season will be the first time the club will not compete in the prestigious UEFA Champions League since 1995. For next season, the team has already installed Netherlands manager Louis van Gaal as new head coach.
4. Adidas & Man United Last Did Business in 1992
Adidas last made Manchester United’s jersey in 1992, but before being replaced by Umbro, Nike took over the mantle in 2002 and has remained there ever since.
5. Adidas Pays Real Madrid Only $50 Million Per Year
The highest paid team on Adidas payroll right now are UEFA Champions League winners Real Madrid, ESPN reports that the German company pays Madrid $50 million per year to make their sports gear.