Manchester United are in negotiations with Nike over a renewed sponsorship deal that could be in excess of £1 billion.
A current shirt deal with Nike, worth £303 million, is set to expire at the end of next season but Ed Woodward is reportedly confident that United can secure a far more lucrative contract with Nike this time.
Although a six-month exclusive negotiating period between Nike and United ended in August, a new deal is expected to be reached because Nike can’t afford to lose out on the marketability of United that has grown so rapidly over the past few years.
As well as that, Nike’s competitors in the likes of Adidas, Warrior and Puma have already placed heavy investment into other teams in the Premier League which puts Nike in a stronger position to negotiate.
Speaking about the ongoing negotiations, a Nike spokeswoman said: “We have a great partnership with Manchester United and are still talking to them.”
Woodward may be astute in securing lucrative sponsorship deals for the club but he failed this summer in negotiating United’s transfer market. There is no doubt that a deal of that size would be fantastic for the club but given that 2013 saw United secure plenty of sponsorships with little money being invested back into the side in comparison, it is a deal that fans may struggle to see the positive side of.
Currently, fans who want to buy a new shirt from the official megastore with ‘Fellani 31’ written on the back would have to pay £73.95 for an adult shirt and a new deal with Nike would likely see the prices rise again over the next few seasons. Long gone are the days of laced Umbro shirts at Old Trafford.
If United can strike a deal worth an extraordinary £1 billion with Nike and use that money to improve the team rather than simply line the pockets of the Glazers, it would no doubt provide a real boost to the squad but there is every reason to believe that money would not be reinvested into the club given what has happened so far with sponsorship revenue.