Earlier in the summer, Manchester United sealed a record kit sponsorship deal with Adidas. Total worth of the new deal is £750 million as Adidas will pay £75m ($128m) annually for next ten years. As per the deal, Adidas will provide match and training gears to the players and staffs, and will also have the exclusive right to sell club merchandise worldwide.
Despite such a massive deal, Adidas are facing an embarrassing situation as Manchester United players may wear Nike kits during next season’s (2015-16) pre-season.
United’s current contract with Nike will expire only July 31, 2015. By that time, United would have already started their pre-season preparations. Pre-season is usually the time when clubs introduce their new kits to the fans along with their marquee signings. Since Manchester United are planning a return to United States during next pre-season, it will be a big disappointment for Adidas, considering the marketing potential of the US market and also the prospect of seeing United’s new marquee signings in Nike colors.
Manchester United’s marketing team can sort this out if they can negotiate a contract termination with Nike. United have previously terminated contracts with Vodafone and DHL in order to secure more lucrative commercial deals with other big brands.