United Nike Contract Under Threat - 30/05/2005

Nike could pull out of its £303m merchandising deal with Manchester United if the club's performance doesn't improve. The thirteen year contract has a break clause that could be invoked at the end of the 2007-8 season. Failing to qualify for the Champions' League could well lead to the end of the deal. The contract is the largest commercial one that United has and accounts for 12 per cent of the club's turnover. Losing the contract would make it much more difficult for Malcolm Glazer to service the debt he has accumulated in his takeover of the club. However, second tier sponsors have confirmed their links with the club. Anheuser-Busch, the US group behind Budweiser beer, and betting firm Ladbrokes said that they remain committed to maintaining their sponsorship ties with the club.