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.
Aug 30, 2015, 9:15 PM EDT
A complete performance from the Red Bulls, who will finish the season unbeaten against their Atlantic Cup rivals.
Aug 30, 2015, 8:05 PM EDT
Find out what moves have been completed with the transfer deadline approaching, as Wolfsburg made three big deals today.
Aug 30, 2015, 7:04 PM EDT
More than 64,000 supporters packed CenturyLink Field as the Sounders downed the Timbers in a Cascadia Cup clash.
Aug 30, 2015, 6:20 PM EDT
Catch up on all of this weekend’s action from Spain and Italy’s top flights.
Aug 30, 2015, 5:30 PM EDT
The French winger has played for Paris Saint-Germain, Juventus, and now Bayern Munich. All before his 20th birthday.
Aug 30, 2015, 4:38 PM EDT
Tim Howard and Geoff Cameron are back in the squad, while the relatively unknown Andrew Wooten gets his first call-up.
Aug 30, 2015, 4:00 PM EDT
In a managerial battle between the young Garry Monk and the veteran Louis van Gaal, the kid came out on top.
Aug 30, 2015, 3:05 PM EDT
After losing three matches all of last season, Juventus has now lost their first two games of the new campaign.
Aug 30, 2015, 2:08 PM EDT
The Manchester United manager believed his club got so comfortable on the ball that they lost their focus.
Aug 30, 2015, 1:38 PM EDT
Reports indicate the Saint-Etienne medical staff was initially afraid that the young striker had suffered a heart attack, but it appears the issues are just heat related.
Aug 30, 2015, 12:51 PM EDT
The Red Devils thought they’d picked up points at the Liberty Stadium, but Bafetimbi Gomis had other ideas.
Aug 30, 2015, 11:48 AM EDT
Juventus was in for the Schalke winger, but Wolfsburg now need a replacement for Kevin de Bruyne.
Aug 30, 2015, 11:12 AM EDT
Wolfsburg tried its darndest, but Kevin de Bruyne still decided to leave in favor of a crowded Manchester City squad.
Aug 30, 2015, 10:42 AM EDT
Manchester United has started the season strong, but they take on a team that beat them twice last season.
Aug 30, 2015, 10:22 AM EDT
Graziano Pelle grabbed the opener and Dusan Tadic finished it off with a brace as Southampton flew to its first win of the year.
Aug 30, 2015, 9:29 AM EDT
Could Valdes be forced to stay with Manchester United despite his obvious wish to leave?
Aug 30, 2015, 8:46 AM EDT
Oh the season hasn’t started yet? Jamie Maclaren wasn’t aware.
Aug 30, 2015, 7:50 AM EDT
Ronald Koeman must pick up a win fast or risk seeing Southampton in a serious early season hole.
Aug 30, 2015, 7:30 AM EDT
A single coach had yet to be fired as we approach the start of September, but that changed as Montreal made a change.
Aug 29, 2015, 11:37 PM EDT
The playoffs look a might big ask of RSL, as they sit rock bottom, 10th place, in the Western Conference.
- Done Deals: De Bruyne joins Manchester City in busy day for Wolfsburg 0
- USMNT releases 23-man roster for September friendlies 0
- Swansea City 2-1 Manchester United: Swans comeback stuns Red Devils 3
- Sunday Transfer Rumor Roundup: Draxler to Wolfsburg, Wanyama to leave Saints 1
- Manchester City officially signs Kevin de Bruyne 1
- Watch Live: Swansea City vs Manchester United (Lineups and Live Stream) 0