Manchester United are all set to negotiate with various sportswear companies for a record breaking kit deal. United’s current £23.5m a year deal with sportswear giants Nike will expire at the end of the 2014-15 season, and United have been unable to agree a new deal during the exclusivity period.
With companies like Adidas, Puma and Warrior involved, reports suggest that a bidding war could ensue, and United could be likely to earn up to an incredible £70m per year. The jersey of Manchester United is one of the highest selling in the world, and a new deal would sign the end to the 13 year partnership with American sportswear giant Nike.
This potential deal will dwarf the recent £30m per year five season deal that Arsenal signed with German sportswear manufactures Puma. Arsenal hoped that the £150m deal would provide the funds required for Arsenal to strengthen the squad in the summer when the deal kicks in. Puma acquired the rights to produce Arsenal-branded merchandise as well as the club’s training and first-team kits and ended Arsenal’s 20 year association with, incidentally, Nike.
Liverpool renewed their kit deal last year and signed with American sportswear manufacturers Warrior in a £25m-a-year contract, and last week signed three new commercial deals to boost their finances. Liverpool signed a multi-million-pound global partnership with the American company Dunkin’ Donuts and tied up a deal with Vauxhall to replace their departing automotive-partner Chevrolet. Liverpool also completed a two-year training kit sponsorship deal with Indonesia’s national carrier Garuda Indonesia, who were already the clubs official airline partner, worth £32m.
In another finance related update, Manchester City have reportedly halved their losses for last season and are confident of being able to comply with UEFA’s Financial Fair Play regulations. City posted a net loss of £51.6m, down from £97.9m they suffered last year and much less than the £197.5m back in 2011. UEFA regulations allow maximum losses up to €45m (£37m), and City are confident about being within these limits once the expenditure on youth development and training facilities are removed from the calculations.
City’s impressive performances on the pitch is likely to increase their income – they have qualified for the Champions League knock-out rounds as well as reached the finals of the Capital One Cup. Besides, the newly negotiated Premier League TV deal will also fill their coffers by almost £25m.