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.
Sep 18, 2014, 3:09 PM EDT
With Week four in the books, here’s how the PL teams stack up in our rankings of power.
Sep 18, 2014, 2:27 PM EDT
What are people saying about Major League Soccer’s new look?
Sep 18, 2014, 1:45 PM EDT
Wenger: “I was so close to signing Cristiano Ronaldo.”
Sep 18, 2014, 1:09 PM EDT
After just four wins from 20 games, Fulham’s owner has seen enough from Magath.
Sep 18, 2014, 12:37 PM EDT
Rodgers’ side have had an up and down start to the season. Is it the sign of things to come?
Sep 18, 2014, 11:33 AM EDT
Here’s what lies in store for Everton and Tottenham as Thursday night soccer begins.
Sep 18, 2014, 11:00 AM EDT
Parmigiani watches worth over $25,000 dished out by Brazilian federation to FIFA’s exec. members must be returned.
Sep 18, 2014, 10:18 AM EDT
Gunners need reinforcements in defense, so who are they making a move for?
Sep 18, 2014, 9:35 AM EDT
Norwegian boss let go after just 9 wins in 30 games in charge of the Bluebirds.
Sep 18, 2014, 8:56 AM EDT
Star striker struggling with persistent hamstring problem ahead of Manchester City clash.
Sep 18, 2014, 8:19 AM EDT
What do you guys think of the brand new MLS logo?
Sep 18, 2014, 7:40 AM EDT
Klinsmann’s men move up after Czech Republic win. See where they’re ranked in the top 20.
Sep 17, 2014, 11:30 PM EDT
A dog home ravaged by fire last week believes Mario Balotelli has made a sizable donation.
Sep 17, 2014, 10:55 PM EDT
Joe Prince-Wright and myself sat down with Jenna Corrado to discuss what City and Chelsea each need to accomplish to secure victory.
Sep 17, 2014, 10:28 PM EDT
Looking for complete transparency, however, Van Gaal has laid down the law: English only.
Sep 17, 2014, 9:20 PM EDT
Marcelo Claure has hinted that news regarding a potential MLS franchise in Miami could soon be on it’s way.
Sep 17, 2014, 8:42 PM EDT
“Remy could have scored, Terry could have scored, Hazard could have scored, but that’s football,” Mourinho said.
Sep 17, 2014, 7:54 PM EDT
Gazzetta dello Sport claims that one CSKA fan who had been stabbed in the stomach.
Sep 17, 2014, 7:00 PM EDT
Gotta love Ajax fans, they’re always loud, positive and pretty darn clever.
Sep 17, 2014, 6:45 PM EDT
Living off the counter-attack, Schalke looked for Draxler every time out the gates.
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