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SBD Global/January 28, 2014/Marketing and Sponsorship
Arsenal Leaves Nike After 20 Years, Announces Five-Year, $250 Deal With Puma
Published January 28, 2014
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SPENDING CASH: In London, James Riach reported Arsenal Manager Arsène Wenger "is set to sign a new contract" and "will be given a huge transfer budget in the summer" following the Puma deal. Arsenal CEO Ivan Gazidis said, "The money from this deal will be available to the club from this summer" (GUARDIAN, 1/27). Also in London, Jeremy Wilson reported the deal will increase Arsenal's revenue by £22M ($36M). It is the biggest deal in English football history. However, ManU is "soon expected" to announce a £76.9M ($227M) deal with Nike. Barcelona and Real Madrid's current kit deals are worth £27M ($45M) and £31M ($51M), respectively (TELEGRAPH, 1/27). The BBC reported Cardiff City and Newcastle are the only other Premier League teams to have kit deals with Puma. Puma also supplies kits to the Bundesliga's Borussia Dortmund and Italy's national team (BBC, 1/27).
RARE OPPORTUNITY: In London, Roger Blitz wrote the deal marked a "rare opportunity for the German company to gain a foothold in the top European fooball club market. " One source "familiar with the industry" said,
"What Puma is able to get in the market is dependent on what Nike and Adidas don’t take.” Gulden said "the deal made good on a promise he made when he took over" the struggling company in the summer that he would "prioritise sports brands over lifestyle brands" (FINANCIAL TIMES, 1/27).