Nike are not going to renew their kit sponsorship deal with Manchester United due to the spiralling price of a new contract, Reuters have said.
Next year, Nike’s 12 year deal with United expires and with a reported world record £60m a year price tag on the next contract, a figure which dwarfs the £30m a year deal Nike currently has, the sports giant has opted not to invest despite having the capital.
“Clearly Nike’s football business is booming and they could easily afford to do this (deal),” an insider source told Reuters.
“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.”
It’s a move which leaves two main competitors in the running for United’s new kit deal – Adidas and Warrior. The former is the fans’ choice because of the beautiful kits the German company used to make for United during the 1980s and early 1990s.
— Darren Webb (@United_Webby) July 7, 2014
As for Warrior, one look at Liverpool’s new third kit is enough to persuade you that Adidas is the best option:
— Brooks Peck (@BrooksDT) July 7, 2014
At this stage, nothing is set in stone but Adidas have long looked like the front-runners to become United’s next kit sponsors in a world record deal and Nike choosing not to renew is the first major step in that direction.