Jul 8, 2014, 7:58 AM EST
It turns out there’s truth to the rumor that Nike’s relationship with Manchester United will be no more.
Reuters has issued a report that, according to sources, the American sportswear giant is stepping away from its longstanding status as kit-supplier to the Red Devils over what it considers an imprudent cost of doing business.
And to be fair, United came close to doubling its asking price.
From the report:
“Clearly Nike’s football business is booming and they could easily afford to do this (deal). They had the right to match any other offer but looking at the deal on the table, they will walk away as it doesn’t make commercial sense,” the source said.
United got around 38 million pounds ($64.7 million) from the Nike deal in 2012-13, including its share of profit from the sale of merchandise around the world.
Media reports had suggested the club was looking for a new deal worth around 60 million pounds per season.
Everything has its breaking point, and a doubled-cost is apparently Nike’s line in the sand (thought Nike unveiled its latest Manchester United shirts earlier this month).
It will be interesting to see how this affects the fee for other clubs and their apparel providers, as the move is likely less about Manchester United and more about the cost of doing business with massive clubs as a whole. There’s no doubt this story will be discussed in board rooms from Barcelona to Rome and beyond.
And as Southampton moved its shirt production in house — and, gasp, they still look fine — could the industry be seeing teams playing a bit of hardball? The Saints deal seems to be more about a disagreement in turnaround time with adidas, but surely eyes will also be watching whether there’s shirt success at St. Mary’s despite a lack of manufacturer branding on the kit.
It wouldn’t bother me one bit if I were a Saints fan, but I’m not one for caring about a shirt brand. Would it stop you from buying a shirt? Perhaps more importantly in the branding world, who absorbs the criticism if the fans don’t like a shirt? In Southampton’s case, there’s little to worry about: Fans have been clamoring for the return of vertical stripes for two seasons, so this is a wise risk from the Saints.
Mar 3, 2015, 3:29 PM EST
A referee in Cyprus has come clean, describing an incredibly deep-rooted problem of match-fixing in the country that makes us wonder how prevalent this problem really is.
Mar 3, 2015, 2:35 PM EST
The FA says the finding of “significant new information” has led them to extend the investigation.
Mar 3, 2015, 2:09 PM EST
A massive relegation six-pointer between these two north east rivals. Watch live online, here.
Mar 3, 2015, 2:00 PM EST
Can Villa get their first win under Sherwood in this huge Midlands derby? Watch live online, right here.
Mar 3, 2015, 1:50 PM EST
Can Saints get back to winning ways as old boss Pardew brings Palace to town? Watch live online, here.
Mar 3, 2015, 1:33 PM EST
With just over 72 hours to go until the MLS season kicks off, talks between the league and the Players Union still ongoing.
Mar 3, 2015, 1:08 PM EST
The Dynamo have a few new pieces and Owen Coyle is a trailblazer, but things still smell of the failures of last year, and this season looks to be a mountain for the Dynamo to climb.
Mar 3, 2015, 12:05 PM EST
Could the former USMNT head coach move into an executive role for the first time?
Mar 3, 2015, 11:36 AM EST
Which one of Major League Soccer’s new stars will make the biggest impact? There are plenty of familiar faces, but also a few new ones looking to make a name for themselves.
Mar 3, 2015, 10:19 AM EST
He will stay as owner and has appointed his 23-year-old grandson as his successor.
Mar 3, 2015, 9:16 AM EST
It’s going to be a grind, but can the Union make the playoffs? They have the talent.
Mar 3, 2015, 8:09 AM EST
Can Tim Sherwood pick up his first points with Aston Villa on the third try? Midweek Premier League action!
Mar 2, 2015, 11:16 PM EST
It’s been a tough run for Southampton, but it’s not the first bump in the road this season.
Mar 2, 2015, 10:00 PM EST
RVDV to SKC? Bild says they’re making their play, and offering lots of cash.
Mar 2, 2015, 8:30 PM EST
Reports of racist abuse are up 70 percent, which is actually a good thing, because it’s being reported more than ever before.
Mar 2, 2015, 7:15 PM EST
John Terry knows he’s fighting every year for a new contract at Chelsea, and it’s inspired the best form of his career.
Mar 2, 2015, 7:00 PM EST
Chicago has only made the playoffs once in the past five seasons, but with some big offseason signings, the Fire could cause problems in the East.
Mar 2, 2015, 6:41 PM EST
Sherwood’s putting all his eggs into Tuesday night’s derby basket, for better or for worse.
Mar 2, 2015, 5:17 PM EST
The title race was minutes from being OVER; it’s still probably over. Tevez’s goal was an absolute beauty.
Mar 2, 2015, 5:00 PM EST
Last season’s worst team in the West has a new stadium and high hopes for 2015.
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