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Marketing and Sponsorship

ManU's Regional Splitting Up Of Sponsorships Complicates $1.6 Billion Nike Kit Deal

ManU's worldwide commercial success in splitting up its sponsorships into different regions "has complicated negotiations with Nike" for a potential £1B ($1.6B) kit deal renewal, according to Charles Sale of the London DAILY MAIL. ManU has "been in talks with Nike over the mammoth new contract for three years, but it still remains unsigned because of the club’s quandary" as to how much of its rights should be granted to Nike, whose current £303M ($488M) shirt agreement expires at the end of next season. This 13-year deal "gives Nike control over all aspects of producing and selling the United kit." Nike would pay around £1B "for a similar length renewal with the same rights." ManU is still exploring whether it would be more profitable to do a straight record £60M ($97M)-a-year football kit supply deal "but market the retail and e-commerce licenses to numerous different global territories," as it does with its mobile and financial services sponsorships. It "could also sell a United fashion range separately" (DAILY MAIL, 11/15).

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