Some pundits have been quick to forecast the demise of Manchester United, drawing comparisons with Liverpool in the early 1990s. However, this overlooks the strength of United as a global brand and the sophistication of their marketing team. This leads to strong competition for the most prized sponsorships and interest in the more unusual ones. This in turn means that the club will have all the financial firepower it needs in the summer transfer window.
Some pundits have been quick to forecast the demise of Manchester United, drawing comparisons with Liverpool in the early 1990s. However, this overlooks the strength of United as a global brand and the sophistication of their marketing team. This leads to strong competition for the most prized sponsorships and interest in the more unusual ones. This in turn means that the club will have all the financial firepower it needs in the summer transfer window.
This is evident in the intensifying competition for the next United kit deal. Nike has a clause in its existing £23.5m a year kit deal with United which expires next year that allows it to match any rival bid. It is facing mounting competition from an ambitious Japanese fashion retailer and United could well earn £70m a year from the new deal.
Adidas appeared to be the main rival to Nike and they are continuing to talk to the club, but now the main challenge appears to come from Uniqlo, the principal subsidiary of Japanes retail giant Fast Retailing Co. Ltd. Never heard of either of them? That’s the whole attraction of sponsoring a global sporting brand. In particular, the 325 million followers of United in Asia are a big attraction.
Moreover, Uniqio is planning to open dozens of stores in the United States, Australia and Europe. There is clearly a risk for United as so many of their players are sponsored by Nike and the Japanese company are very much the new kid on the block. It seems likely that at the end of the day Nike will keep the contract but have to pay twice the £35 a year that Arsenal gets from its new contract with Puma.
Since the Glazers bought the club in 2005, commercial income has more than trebled to £153m last season. This in part reflects the investment in the marketing operation which is unrivalled among other clubs.