Nike to end kit supply deal with Manchester United: Source
Published on Jul 8, 2014 6:54 AM
LONDON (REUTERS) - US sportswear company Nike will not renew a long-running kit supply deal with English soccer club Manchester United because of the cost of a new contract, a source with knowledge of the negotiations said.
Nike has been supplying United's famous red shirts since 2002 but the current agreement expires next year. Its withdrawal is expected to clear the way for the club to sign a lucrative new deal with German sportswear company Adidas. "Clearly Nike's football 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," the source said.
United got around £38 million (S$81 million) from the Nike deal in 2012-13, including its share of profit from the sale of merchandise around the world.
Media reports had suggested the club was looking for a new deal worth around £60 million per season.
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