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Manchester United set to sign world record £300m kit deal with Nike

Manchester United are poised to announce a world record £300million deal with American sportswear giants Nike.

The negotiations were first revealed by Charles Sale's Sports Agenda at the start of September.

And the five year-deal, which The Sun report is set to be announced on Friday, will more than triple the annual amount they receive under their current contract.

It is almost double the current most lucrative deal - Real Madrid's £31m-a-year tie-up with Real Madrid.

United have also reportedly been granted sales rights for their kits, which could be worth another £15m per year, which could see the five-year deal worth a total of £375 million.

The current Nike deal was reported at £303m for the 13 years, and with this extension which will run for five-years reported at £300m, should it end up running for the same amount of time, it could bring the club close to £1 billion in revenue.

At the start of next season, United will change shirt sponsors from AON to American car giant Chevrolet, which will be worth £357m and due to run to 2021.

United's massive commercial arm, which will shortly boast an office in New York, in addition to the one that was opened in Hong Kong last year, now represents 42 per cent of total revenue, with sponsorship deals alone in 2012 amounting to £90.9m, a rise of 44.1 per cent.

With a new shirt deal with US car giant Chevrolet due to launch next season and negotiations with Nike over an extension to the lucrative manufacturing contract ongoing, the Glazer family have ridden through the storm that accompanied their massively controversial leveraged buyout in 2005.

While debt remains enormous by usual standards - £389.2m - it is way below the levels it once was and the Glazers still have large cash reserves, in excess of £50m following the summer arrivals of Marouane Fellaini and Wilfried Zaha.

 

Still the costs associated with the takeover continue to rise, to around £680m, which those fans who remain implacably opposed to the Glazer ownership believe would have been better invested in either the squad or a further expansion of Old Trafford.

source: http://www.dailymail.co.uk/sport/football/article-2476153/Manchester-United-set-sign-world-record-300m-kit-deal-Nike.html