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.
Jul 31, 2014, 12:23 AM EDT
Thierry Henry’s second half equalizer takes earns a point at Rio Tinto.
Jul 30, 2014, 10:43 PM EDT
The Revs’ eight-game losing streak ends thanks to another strong night from Lee Nguyen.
Jul 30, 2014, 9:20 PM EDT
The Red fall nine points back of second place United in the Eastern Conference.
Jul 30, 2014, 8:27 PM EDT
24-year-old defender loaned out for the seventh time.
Ugly scenes in Northern Ireland as Mexican U-19 player attempts to kick opponent’s head during Milk Cup brawl
Jul 30, 2014, 7:29 PM EDT
Game is eventually cut short after a yet unnamed player aimed at the head of a fallen opponent.
Jul 30, 2014, 6:46 PM EDT
Atlético’s interest could develop into Chicharito’s best option.
Jul 30, 2014, 5:58 PM EDT
Nick De Santis will stay with the Impact, albeit in an administrative role.
Jul 30, 2014, 5:11 PM EDT
Everton’s leading scorer returns to Goodison on a permanent basis.
Jul 30, 2014, 4:01 PM EDT
With immediate effect, U.S.’s women’s league will pause mid-half if when it’s too hot.
Jul 30, 2014, 3:12 PM EDT
Liverpool roll into town and people freak out! Watch this incredible reaction to Stevie G signing autographs.
Jul 30, 2014, 2:46 PM EDT
Reports from Texas state Jurgen Klinsmann’s side are playing Colombia in September.
Jul 30, 2014, 2:10 PM EDT
Union grab Algerian goalkeeper Mbolhi, throw MacMath’s future in doubt.
Jul 30, 2014, 1:42 PM EDT
One of the most influential men in world soccer passed away on Wednesday at the age of 82.
Jul 30, 2014, 1:07 PM EDT
After success at the 2014 World Cup, vanishing spray is coming to the PL.
Jul 30, 2014, 12:45 PM EDT
Shaw: “I didn’t come into United thinking it’s going to be much harder and that’s something I made a mistake on.”
Jul 30, 2014, 12:03 PM EDT
Ronaldo flexing the abs as he is set to appear in the largest-ever Men’s Health front cover campaign.
Jul 30, 2014, 11:18 AM EDT
United make it three wins from three on their U.S. tour. Watch the highlights from Van Gaal’s men in action.
Jul 30, 2014, 10:45 AM EDT
Will United splash the cash to sign Vidal in central midfield?
Jul 30, 2014, 10:05 AM EDT
Lukaku set to sign for Everton from Chelsea.
Jul 30, 2014, 9:11 AM EDT
United to splash the cash? Lukaku on his way out of Chelsea? All the latest gossip, right here.
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