Manchester United and Nike are close to reaching an agreement on an extension that is expected to be worth £70 million ($116 million) per year according to a report in the London Express.
The total value of the 10-year deal would be worth more than $US1.1 billion and nearly triples the amount Nike is currently paying the club each year ($39 million).
The deal with Nike would begin in 2015 when the current deal expires and would easily be the biggest uniform contract in soccer, topping Real Madrid’s kit deal with Adidas, which is worth £31 million ($52 million) per year.
Manchester United will also start a new jersey sponsorship deal with Chevrolet next season that will pay the club £53 million ($88 million) each year.
This means Manchester United’s kit alone will generate $US205 million in revenue each year.
According to the recent Deloitte report, only five other soccer clubs in the world generated more than $US200 million in total commercial revenue in 2012-13, including Real Madrid ($294M), FC Barcelona ($245M), Bayern Munich ($329M), Paris Saint-Germain ($354M), and Manchester City ($231.6M).
United is currently generating $US72 million per season with its current Nike deal and jersey sponsorship with Aon.
If the remainder of Manchester United’s commercial revenue remains unchanged, their total commercial revenue will increase by $US133 million in the next two years to a total of $US380 million annually.
It is good to be United.
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