Manchester United and Adidas agree record-breaking £900m extension deal

Manchester United secured a groundbreaking 10-year extension to their partnership with Adidas, valued at a minimum of £900 million. 

The new deal with the German sportswear giant is set to run until June 2035, superseding their previous 10-year agreement, which was worth £750 million.

This extension is believed to be the largest kit deal in the history of the Premier League, based on revenue per season. Back in 2016, Chelsea signed a £900 million deal with Nike, but it spanned a 15-year period from 2017.

Richard Arnold, United's chief executive, expressed his admiration for the "iconic" relationship between Manchester United and Adidas, dating back to the 1980s. He highlighted the decade of collaboration, which has led to the introduction of innovative designs and sports technology in their sportswear.

The current partnership between Manchester United and Adidas commenced during the 2015-16 season, rekindling a connection that previously existed from 1980 to 1992 when Adidas supplied the club's kit.

While discussions continue concerning the potential sale of Manchester United by the Glazer family, the new deal boasts "a minimum cash guarantee of £900 million, subject to certain adjustments." The original agreement with Adidas, as outlined in United's latest annual report, ties a portion of the annual payments to the club's participation in the Champions League. Failure to qualify for the Champions League in two consecutive seasons could lead to a 30% reduction in annual payments.

United will be back in Europe's elite club competition this season after failing to qualify in the 2022-23 campaign. Despite their absence from the Champions League last season, the club recently projected record revenues, with stronger matchday and commercial earnings leading them to revise their annual forecast to an impressive range of £630 million to £640 million, surpassing their previous best of £627.1 million in 2019.

As the Glazer family explores a potential sale, the club continues to face significant debts, including outstanding transfer fee payments exceeding £160 million. However, the new kit deal is expected to elevate the focus on Manchester United's women's team, reintroduced in 2018, demonstrating a commitment to promoting women's football.

Adidas' CEO, Bjorn Gulden, emphasised the natural synergy between the two brands, citing Manchester United and Adidas as key players in international football. Their continued cooperation is expected to shape the future of sports apparel in the world of football.