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 23, 2014, 11:27 PM EDT
Surely one of these clubs enjoyed the sweeter side of this deal and here we set out to see who it was.
Jul 23, 2014, 10:40 PM EDT
Despite starting only 12 Premier League matches last year, James Milner has decided to remain at Manchester City and fight for his place.
Jul 23, 2014, 10:00 PM EDT
Catch the San Jose Earthquakes and Chicago Fire live on NBCSN and online via Live Extra tonight at 10:30pm ET.
Jul 23, 2014, 9:43 PM EDT
In a relaxed match featuring over forty players, the difference came in the 89th minute as Marco Borriello knocked home a corner.
Jul 23, 2014, 8:50 PM EDT
Rijeka have come forward to say they “clearly and unequivocally reject” City’s allegation of racism.
Jul 23, 2014, 8:21 PM EDT
Beasley signed a two-and-a-half-year deal with the Dynamo and becomes the club’s third Designated Player.
Jul 23, 2014, 6:48 PM EDT
Catch Liverpool and AS Roma live on NBCSN and online via Live Extra tonight at 7:00pm ET.
Jul 23, 2014, 5:49 PM EDT
Jurgen Klinsmann has long coveted Zelalem and the 17-year old looks to be next in line to don the Stars & Stripes.
Jul 23, 2014, 5:01 PM EDT
According to Fuchs, Germany and France would be happy to take over if needed.
Jul 23, 2014, 4:21 PM EDT
Sigurdsson, who scored seven goals during a loan spell with Swansea in 2011/12, returns at the Liberty after two seasons at Spurs.
Jul 23, 2014, 2:40 PM EDT
Can the Spanish international be a success at Chelsea? You bet.
Jul 23, 2014, 1:46 PM EDT
Is there anything Balotelli can’t do?
Jul 23, 2014, 1:16 PM EDT
Will Lampard be suiting up at Yankee Stadium for NYC FC next season? We find out Thursday…
Jul 23, 2014, 12:26 PM EDT
What would your school look like as a professional soccer team?
Jul 23, 2014, 11:40 AM EDT
The show will go on, but not in eastern Ukraine as fighting between pro-Russian rebels and the military continues.
Jul 23, 2014, 10:52 AM EDT
German boss reveals he will stay on as manager until at least 2016. Can you smell a dynasty?
Jul 23, 2014, 10:18 AM EDT
Substance over style: Barca sign towering defender from La Liga rivals Valencia.
Jul 23, 2014, 9:29 AM EDT
Will the Mexican international be moving on this summer?
Jul 23, 2014, 8:46 AM EDT
Aspas to Spanish radio: “They are treating Luis like a murderer and not like a footballer.”
Jul 23, 2014, 8:07 AM EDT
Cole: “People were killing me about possibly playing in the USA, saying it’s for the money and easy lifestyle, I choose to play in a more demanding place and team.”
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