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 2, 2015, 3:14 PM EDT
Tony Pulis is a hard-nosed leader, but unless Saido Berahino can repeat his goal-scoring year from last season, it will be a tough go for the Baggies.
Aug 2, 2015, 2:30 PM EDT
Take a bow, Benteke. Take a bow.
Jose Mourinho says “best team lost,” attacks Arsenal’s defensive tactics, as Chelsea beaten at their own game
Aug 2, 2015, 1:50 PM EDT
Chelsea boss hits out at Gunners as he loses to Wenger for first time in 14 attempts.
Aug 2, 2015, 1:07 PM EDT
The long-time spat between the managers of Arsenal and Chelsea rumbles on.
Aug 2, 2015, 12:45 PM EDT
Catch up on all the latest transfer rumors and gossip, right here.
Aug 2, 2015, 11:57 AM EDT
Wenger finally beats Mourinho, while the Blues have some issues up front.
Aug 2, 2015, 11:55 AM EDT
Arsenal takes claim to the Community Shield as Arsene Wenger has finally defeated Jose Mourinho.
Aug 2, 2015, 10:49 AM EDT
The Gunners took a 1-0 first half lead over Chelsea in the FA Community Shield thanks to a classy finish from Alex Oxlade-Chamberlain.
Aug 2, 2015, 10:04 AM EDT
In the City of Brotherly Love, it was only fitting that the Wright-Phillips boys led New York to a victory.
Aug 2, 2015, 9:07 AM EDT
There’s a legitimate chance that Roy Keane has never taken a picture with his cell phone.
Aug 2, 2015, 8:12 AM EDT
Manchester United’s Di Maria experiment is all but over, and it’s going to cost them $20 million.
Aug 2, 2015, 12:02 AM EDT
That’s 7 losses in 8 games for the Sounders. Meanwhile, the ‘Caps go top of the West.
Aug 1, 2015, 10:47 PM EDT
Another Royal Rumble between old rivals. While the rest of MLS went goal-crazy, these two did what they always do.
Aug 1, 2015, 9:33 PM EDT
The goals floweth over in MLS tonight. Cyle Larin scored his second straight brace for Orlando City.
Aug 1, 2015, 9:11 PM EDT
D.C. United and RSL combined for 10 goals at RFK Stadium Saturday night. Let the video do the talking.
Aug 1, 2015, 7:25 PM EDT
The Premier League season is here…almost. The final week of preseason has begun.
Aug 1, 2015, 6:25 PM EDT
The new seasons in Germany and France are underway following an afternoon full of Super Cup action.
Aug 1, 2015, 4:29 PM EDT
It’s not been the greatest week of Miguel Herrera’s life. He’s in legal trouble yet again.
Aug 1, 2015, 4:15 PM EDT
Another wild afternoon at Yankee Stadium ends in defeat for NYCFC. Pirlo made his first MLS start and Lampard made his MLS debut.
Aug 1, 2015, 2:45 PM EDT
Can Spurs crack the top four? Or will it be another season on the outside looking in at White Hart Lane?
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- Arsene Wenger, Jose Mourinho fail to shake hands, as Gunners boss finally prevails 1
- Three things we learned from Arsenal’s Community Shield win vs. Chelsea 0
- Arsenal 1-0 Chelsea: Oxlade-Chamberlain strike wins Gunners FA Community Shield 0
- Report: Manchester United, PSG agree to $70 million fee for Angel di Maria 2
- MLS Snapshot: Seattle Sounders 0-3 Vancouver Whitecaps (video) 2