Manchester United seals 10-year deal with kit maker adidas worth at least £900m

Manchester United has renewed its partnership with German sports kit giant adidas in a £900m deal over 10 years in what is believed to be the biggest deal of its kind in football.

Adidas will continue as the Premier League club’s official kit supplier, with the latest deal running until June 2035.

United said the arrangement has a minimum cash guarantee of £900m, “subject to certain adjustments”.

The club’s chief executive, Richard Arnold, said: “The relationship between Manchester United and Adidas is one of the most iconic in world sport, forged through a shared commitment to style, flair and, most importantly, high performance.

“With its roots in the 1980s, our partnership has been reinvented over the past decade with some of the most innovative designs and technology in sportswear. We are now looking forward to refreshing this powerful partnership again through the remainder of this decade and into the 2030s.”

Bjorn Gulden, adidas chief executive, said: “We are extremely proud to announce the extension of the contract with Manchester United – adidas and Manchester United are two of the most important brands in international football and it is very natural for us to continue our cooperation.

“We will combine tradition and innovation to please both the players and the fans.

“We look forward to continuing our partnership with one of the most iconic clubs in football.”

Manchester United began an historic agreement with adidas at the start of the 2015/16 season, reuniting after 23 years.

The new deal increases the focus on the Manchester United women’s team since their reintroduction in 2018 – continuing Manchester United and adidas’s commitment to drive the women’s game forward.

Earlier this month, United announced a first-of-its-kind partnership with global brand perfume Estée Lauder to reach and engage its extensive fanbase in China and the Asia Pacific region.

Victoria Timpson, Manchester United’s CEO of alliances and partnerships, said: “Estée Lauder is a globally renowned and trusted brand, and we are excited to be partnering with them in China and Asia Pacific. As one of the most followed sports teams in the world, we understand the importance of educating fans on a healthy lifestyle, and skincare is an integral part of that process.”

Announcing its third quarter results last month, the club revealed that revenues had increased, while losses narrowed. It also raised its full-year forecasts to record levels.

The club, which is currently on the block for potential sale or partial sale, with Ineos owner Sir Jim Ratcliffe and Qatar investor Sheikh Jassim both in the frame, achieved sales of £170m in the three months ended March 31, 2023, up from £152.8m at the same point the previous year.

Losses in the period were £5.6m, significantly down from the £27.7m loss registered a year ago.

The club also announced that, for fiscal year 2023, the company has raised its previous revenue guidance from £590m to £610m to a record £630m to £640m and raises its previous adjusted EBITDA guidance of £125m to £140m to £140m to £150m.

Non-current borrowings as of March 31, 2023 were $650m, which was unchanged from the same period in 2022.