Manchester United agreed to a contract extension on its partnership with Adidas that is worth a minimum of £900 million ($1.16 billion) over 10 years. The German sportswear giant will be the uniform manufacturer for United through June 2035.
Their current 10-year, £750 million deal kicked off with the 2015-16 season and has two seasons remaining. Adidas was also United’s kit supplier from 1980 to 1992.
The renewal is the largest deal in the Premier League and puts United on par with Real Madrid and Barcelona, which both earn roughly $115 million to $120 million annually in their respective pacts with Adidas and Nike.
“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,” Adidas CEO Bjorn Gulden said in a Monday news release.
The deal increases the focus on the Manchester United women’s team that plays in the Women’s Super League (WSL). The women’s team didn’t exist when the last Adidas agreement was signed; the club was disbanded shortly after Malcolm Glazer bought the team in 2005 before being reintroduced in 2018.
“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,” Richard Arnold, Manchester United CEO, said in the news release.
The £900 million is a “minimum cash guarantee” that is “subject to certain adjustments.” The previous contract called for a 30% reduction in the annual payment for any year that represents a second consecutive season outside of Champions League. United avoided triggering the clause this season by finishing third in the Premier League standings.
The announcement, made early Monday morning, was not the one for which Manchester United fans have been waiting. The sale process of the team, which launched in November with the hiring of the Raine Group, drags on as Sheikh Jassim bin Hamad Al Thani and Sir Jim Ratcliffe wait to see if the Glazers approve either of their bids, which are expected to be for at least $6 billion.
Last month, United released its quarterly earnings and also boosted its revenue guidance for fiscal 2023 to roughly £635 million ($819 million), which would be a record level of sales and ahead of earlier Wall Street expectations, as well as a 9% increase over 2022.
In January, Sportico valued United at $5.95 billion, and it ranks as the most valuable soccer club in the world, ahead of Real Madrid ($5.23 billion) and Barcelona ($4.95 billion).