Adidas signs £750m Man Utd kit dealMonday 14 July 2014 14.48
English Premier League giants Manchester United have announced a ten-year kit deal with German sportswear group Adidas worth £750m (€942m) after US rivals Nike walked away from the club.
The sponsorship switch comes after Nike left the bargaining table last Tuesday when Adidas agreed to more than double Nike's current contract.
"Manchester United plc... has reached a ten year agreement with Adidas for a global technical sponsorship and dual branded licensing deal for a minimum guarantee of 750 million... beginning with the 2015/2016 campaign," the club said in a statement.
The club's current 13-year deal with Nike, worth £303m, is due to end in 2015 and an exclusivity period enabling the Oregon-based manufacturer to negotiate a new deal recently expired.
Adidas group chief executive Herbert Hainer said he was "excited to team up with...one of the most successful and most loved football clubs globally."
The record-breaking deal dwarfs the £248m eight-year Adidas deal with Spanish team Real Madrid and the £30m-a-year deal announced between Puma and English rivals Arsenal.
"Our new partnership with Manchester United clearly underlines our leadership in football and will help us to further strengthen our position in key markets around the world," he said.
"At the same time, this collaboration marks a milestone for us when it comes to merchandising potential."
The CEO said he expected total sales to reach £1.5bn over the course of the deal.
Despite calling Manchester United "a great club with passionate fans," Nike revealed last week it would not renew its deal.
"Any partnership with a club or federation has to be mutually beneficial, and the terms that were on offer for a renewed contract did not represent good value for Nike's shareholders," it said.
"We look forward to a successful final season with the club."
Adidas also beat off competition from US manufacturers Warrior and Under Armour during the multiple party talks.
The German manufacturer last supplied United's kits in 1992.
United is one of the most recognisable footballing brands globally and the club has won 62 trophies, including three European Cups and a record 20 domestic title, over 137 years.
The club last week revealed US car-maker Chevrolet as its kit sponsor for next season.