Manchester United are seeking to boost their already considerable commercial income, forecast to pass the £200m mark this year, by taking full advantage of their new kit contract with adidas.
The contract kicks in next summer and will guarantee United a minimum of £75m annually over the next ten years, three times the base value of the Nike arrangement. Moreover, the club have negotiated a deal that will allow them to retain the licensing rights to all items apart from signature items such as replica kits and training gear.
Manchester United are seeking to boost their already considerable commercial income, forecast to pass the £200m mark this year, by taking full advantage of their new kit contract with adidas.
The contract kicks in next summer and will guarantee United a minimum of £75m annually over the next ten years, three times the base value of the Nike arrangement. Moreover, the club have negotiated a deal that will allow them to retain the licensing rights to all items apart from signature items such as replica kits and training gear.
Over the 2012-13 season, United sold about five million branded licensed products, although two million of thse were replica shirts. Other items sold to 120 countries covered a wide range from stationery and water bottles to bedroom, kitchen and bathroom accessories.
The adidas contract contains considerable incentives to boost performance on the pitch. Payments would increase by up to £4m a year if the club won the Premier League, FA Cup or Champions League. Against that payments would drop by 30 per cent if he club fails to qualify for Europe’s premier club competitions for two seasons from next season. Such a decrease would cost the club £22.5m in lost revenue.