Manchester United and Adidas announced on Monday the renewal of their partnership with a 900 million pound ($1.16 billion) deal spanning the next 10 soccer seasons.
The new deal secures the German sportswear giant as the team’s official kit sponsor.
“The new deal increases the focus on the Manchester United women’s team since their reintroduction in 2018,” United said in a joint press release with Adidas.
Manchester United chief executive officer, Richard Arnold said: “The relationship between Manchester United and Adidas is one of the most iconic in world sport, forged through a shared commitment to style, flair and, most importantly, high performance.
“With its roots in the 1980s, our partnership has been reinvented over the past decade with some of the most innovative designs and technology in sportswear.
“We are now looking forward to refreshing this powerful partnership again through the remainder of this decade and into the 2030s.”
Chief executive officer at Adidas, Bjorn Gulden, said: “Adidas and Manchester United are two of the most important brands in international football and it is very natural for us to continue our cooperation,” adding that he looked forward to continuing working with “one of the most iconic clubs in football!”
Adidas and United’s first major partnership was a 750 million pound deal ($1.28 billion at the time) signed in 2014, a record for the sports industry. The ten-year deal marked the end of the club’s 13-years collaboration with Nike.
Under manager, Erik ten Hag, United has secured its return to the lucrative UEFA Champions League for the coming season after finishing in the top four in the domestic league last season.
The company’s latest annual report revealed that the new agreement with Adidas links a part of the yearly payments to the club’s participation in said Champions League, Reuters reported.
According to stipulations in the deal, failure by the club to play in the Champions League for two or more consecutive seasons will reduce its annual payments by 30 percent of the applicable amount.
The deal comes after United raised its annual profit and revenue forecasts last month.
Meanwhile, pressured by fans disgruntled over debts and lack of investments in the club’s facilities, the Glazer family, United’s American owners, continue negotiations to sell the club.
Among the potential buyers are Qatar’s Sheikh Jassim bin Hamad al-Thani and British billionaire Jim Ratcliffe, who has supported the team since his childhood.
Mr. Ratcliffe previously bid to buy rivaling club Chelsea F.C. after sanctions following the Russian invasion of Ukraine forced its Russian owner Roman Abramovich to put the club up for sale.
Chelsea was eventually sold to American businessman Todd Boehly.
