In 2002, Nike agreed to fork over £303 million ($485 million) and give a share of retail sales to Manchester United so its iconic swoosh could grace the home kit, away kit and related apparel of the world's most popular soccer team. But their 13-year agreement comes to an end in 2015, and the word from the Daily Mail is that the two sides are in the midst of negotiating a new deal that could pay the Red Devils a massive £1 billion ($1.6 billion).
If signed, it’ll be the largest sponsorship deal in all of sports. Not too shabby for a team thatForbes ranked as the top of its annual ranking of the world’s 50 most valuable sports teams.Forbes valued ManU at $2.23 billion, $350 million more than the second team on the list, Real Madrid.
Nike will have a six-month window to negotiate, the Mail reports. Sure to be mentioned in the talks is the fact that GM's Chevrolet division agreed this summer to shell out $559 million over seven years so Manchester United would sport Chevy's logo on the front of the shirt — the terms of whichcontributed to the ouster of GM's former CMO, Joel Ewanick.
All of this dealmaking with US brands may be part of the publicly-traded ManU’s desire to get more exposure in the United States. The Guardian has it that the team is heading to the Big Apple, and “will open an office on the east coast to maximize commercial opportunities in the United States.” That would make ManU the first Premier League team to open a US office. Or maybe it’s just that American entrepreneur Malcolm Glazer, who also owns the NFL’s Tampa Bay Buccaneers, owns the majority of the team’s shares.
"The US we view as a really good opportunity," said United's vice-chairman, Ed Woodward, according to the Guardian. "The US media rights for soccer have rocketed. The 2010 World Cup, they were the No. 1 payer for broadcasting rights. It's rocketed again for 2014 in Brazil and we are expecting the Premier League to have a good outcome there for the [TV] rights given the way it's taken off from being a niche sport."
As for the £1 billion … well, Nike has supposedly agreed to pay £156m ($249.7 million) over 10 years to golfer Rory McIlroy just to put the Nike logo on his golf equipment and apparel, the Belfast Telegraph reports. What’s a few dollars more for a whole team of fellas?
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