Nike believes in the mantra of “Just Do It.” The global hegemon of a corporation based in the Pacific Northwest of the United States is really going to “do it.” They’re going to man up with Man U to the tune of one billion dollars. Yes billion with a “b” for Nike and Manchester United.
It will indeed be a $1,000,000,000 apparel deal.
Nike is reportedly about to sign a 10-year, $1 billion deal to outfitManchester United, the storied English football club considered the most valuable franchise in the world. That’s billion with a “B.” Given Manchester’s market capitalization, this would represent almost 40 percent of the club’s value.
For Nike, the $100 million-per-year sum represents about triple the amount it now pays to have its swoosh on Wayne Rooney and the rest of the club’s Red Devils. The sponsorship agreement would roughly double the richest uniform relationship,Adidas’s agreement to outfit Real Madrid in the Spanish league. General Motors, meanwhile, is paying about $79 million per year to have its Chevrolet logo on Manchester jerseys.
The Nike deal with MUFC is a developing story that we have been following very closely for awhile. This will be break records and precedents on numerous levels for both United and Nike.
Manchester United’s existing deal with Nike earns them approximately £23.5million-a-season, but they now stand to bank more than £60million-a-year over the course of a decade-long agreement.
The Daily Mirror reports an announcement is expected shortly; ending a four way race to grab the new apparel rights.
In addition to Nike, Puma, Adidas and Warrior are all in play.
Arsenal signed a £30 million deal with Under Armour in late January, so it stands to reason that Manchester United commands a significantly higher price tag than that.
Paul M. Banks owns The Sports Bank.net, an affiliate of Fox Sports. An MBA and Fulbright scholar, he’s also a frequent analyst on multiple news talk radio stations. The former NBC Chicago and Washington Times contributor has also been featured on the History Channel. President Obama follows The Sports Bank on Twitter (@paulmbanks) you should too