Manchester United has signed a groundbreaking kit deal with German sportswear giant Adidas, extending their partnership until June 2035. The deal, worth a staggering £900 million, is believed to be the largest kit deal in the history of the Premier League, surpassing Chelsea’s £900 million deal with Nike, which covered 15 years from 2017.
The relationship between Manchester United and Adidas dates back to the 1980s, and the latest partnership, which began in the 2015-16 season, has seen some of the most innovative designs and technology in sportswear. United’s chief executive, Richard Arnold, hailed the partnership as one of the most iconic in world sport.
The deal comes at a crucial time for Manchester United, as their American owners, the Glazer family, are reportedly still discussing selling the club. The new kit deal includes a minimum cash guarantee of £900 million, subject to certain adjustments. Notably, a part of the yearly payments is linked to the club’s participation in the prestigious Champions League.
United’s failure to qualify for the Champions League for two consecutive seasons reduced annual payments by 30%. However, the three-time Champions League winners are set to return to Europe’s premier club competition this season, boosting their revenues. Despite missing out on the Champions League last season, United remains optimistic about record revenues, with strong matchday and commercial income.
The increased focus on United’s women’s team is another key aspect of the new kit deal. Since its reintroduction in 2018, the women’s team has gained prominence, and the partnership with Adidas will further elevate its status.
While the new kit deal brings excitement and financial stability to Manchester United, the club still faces significant debts totaling over £950 million, including outstanding transfer fee payments of over £160 million. The Glazer family had indicated their willingness to sell the club last November. Still, a takeover has not been completed, with rumors suggesting that some family members might retain an interest.
