LONDON (Brand Republic) – Sports clothing manufacturer Nike has clinched a £303m, 13-year kit deal with Manchester United. Nike will replace Umbro when its contract expires in 2002.
Under the terms of the agreement, Nike will have the right to supply Manchester United with replica kit, footwear, apparel and equipment.
Nike will pay the club sponsorship and licensing fees of £122m over the first six years and £303m over the duration of the deal. The contract will be reviewed after six years.
Nike will also form a wholly owned subsidiary which will run Manchester United’s global retail outlets.
The deal, however, has sparked fears among some shareholders and fans that Nike will have too much influence over the club. Nike is still being investigated by the Brazilian government over alleged interference with the national team, which the sports firm sponsors.