Nike has confirmed it will not extend its long-term partnership with Manchester United beyond the 2014-15 season, stating the terms being sought by the English Premier League football club do not represent good value for the US sportswear company’s shareholders.
United’s current 13-year deal with Nike expires in July 2015 and consists of a basic annual fee, plus a share of profits from merchandise sales.
The club is said to have earned around £38m (€47.5m/$65m) in total from this arrangement in 2012-13, but is reported to be seeking a new contract worth £60m per season over 10 years.
Any such agreement would represent a new record for a club kit contract. Nike had the right to match any bid made by a rival, but has decided the price is too high with German rival Adidas now reported to be close to replacing it as United’s new partner.
Nike said: “Manchester United is a great club with passionate fans. We are proud to have partnered with them for the last 12 years and will continue to sponsor the club until the end of the 2014-15 season. Any partnership with a club or federation has to be mutually beneficial and the terms that were on offer for a renewed contract did not represent good value for Nike’s shareholders. We look forward to a successful final season with the club.”
The 2014-15 season marks the first campaign of United’s new shirt sponsorship deal with US automotive firm Chevrolet, which will bring in a record-breaking $559m (€411m) over the seven-year duration of the agreement. United’s partnership with the General Motors brand will run through 2020-21.