Jul 8, 2014, 7:58 AM EDT
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.
Oct 21, 2014, 12:10 AM EDT
Paderborn hasn’t stopped winning or scoring insane goals, if you haven’t noticed.
Oct 20, 2014, 11:29 PM EDT
Actor Mark Consuelos made his way to the Crap Part of Soho while the Men In Blazers tried to keep the ball out of their own net.
Oct 20, 2014, 10:47 PM EDT
Bayern Munich have a very difficult match on the road in Italy, while other matchups in Spain, Russia, and Germany will all prove enjoyable.
Oct 20, 2014, 9:28 PM EDT
Meghan Klingenberg bagged a laser beam for her first US goal and Abby Wambach grabbed two as the Americans will move on to the semifinals.
Oct 20, 2014, 8:42 PM EDT
Manchester Police confirmed a man was arrested after flying a drone over the match that entertained 45,000 people.
Oct 20, 2014, 8:00 PM EDT
Aron Johannsson bagged a penalty in his return from groin surgery, while Juan Agudelo continues to search for a new club.
Oct 20, 2014, 6:55 PM EDT
Adel Taarabt says the harsh words from manager Harry Redknapp are not only untrue but damaging as a professional.
Oct 20, 2014, 6:16 PM EDT
The New York Cosmos completed a massive signing, beating out a few of his former clubs to nab the Spanish legend as a player and coach.
Oct 20, 2014, 5:36 PM EDT
Despite a solid confirmation from Croatia, the friendly will reportedly not be happening.
Oct 20, 2014, 4:56 PM EDT
Manchester United came from behind twice but still must settle for a disappointing result away from home.
Oct 20, 2014, 4:35 PM EDT
19-year-old Lazio striker Keita Balde Diao somehow walked away from what looks to be a major accident. His Lamborghini, however, didn’t.
Oct 20, 2014, 3:20 PM EDT
Unruly fans will cost Wales and Galatasary as UEFA continues to crack down on off-the-pitch incidents.
Oct 20, 2014, 2:35 PM EDT
The yearly tournament organizes five-a-side matches for people that are homeless or living in extreme poverty.
Oct 20, 2014, 1:30 PM EDT
Liverpool, Everton and Swansea City are just a few of the Premier League clubs reportedly looking to sign the Marseille winger.
Oct 20, 2014, 12:37 PM EDT
With transfer rumors swirling, the Arsenal forward made it clear that he is #AlwaysAGunner.
Oct 20, 2014, 11:51 AM EDT
Amidst the Ebola outbreak, South Africa has ruled out hosting the continent’s premier tournament should Morocco back out.
Oct 20, 2014, 11:00 AM EDT
Sad news out of India as a young player died after injuring his spinal cord during a celebration.
Oct 20, 2014, 10:15 AM EDT
Ahmed Musa stirred the pot ahead of his club’s Champions League clash this week, calling out City’s form.
Oct 20, 2014, 9:30 AM EDT
Watch the Baggies take on Manchester United today, live at 3:00 p.m. ET on NBCSN.
Oct 20, 2014, 8:40 AM EDT
The Chelsea backup is teaching his replacement how to stay safe from head injuries, which have affected both keepers.
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