Manchester United and Adidas have formed a partnership that will help both remain behemoths of the sports world for years to come.
Manchester United and Adidas signed a landmark uniform (or “kit”) manufacturing deal Monday. The sports apparel company will pay the £750 million ($1.28 billion) for the right to make and sell Manchester United’s uniforms for 10 years starting in 2014-15, according to the BBC.
Manchester United will earn £75 million ($128 million) per season under the terms of the world-record deal. Real Madrid’s £31 million- ($53 million)-a-year agreement with Adidas is a distant second in the uniform race among soccer clubs around the world.
Manchester United’s current uniform deal is with Nike, which pays the Premier League club £23.5 million ($40 million) annually. After failing to extend its partnership with Manchester United, Nike declined to match Adidas’ offer, saying that it “did not represent good value for Nike’s shareholders.”
Warrior and Under Armour also were reportedly in the running, but Adidas outbid them all in an effort to exclusively manufacture and distribute Manchester United’s uniforms for the first time since 1991-92.
Adidas expects to make a significant profit from the mammoth agreement with Manchester United.
Adidas CEO Herbert Hainer said the deal will help his company “further strengthen our position in key markets around the world.”
“We expect total sales to reach £1.5 billion ($2.4 billiion) during the duration of our partnership,” Hainer added.
The extra income from Adidas will help Manchester United continue to operate at the top of the salary and transfer market in the seasons to come.