July 14 (Bloomberg) -- Adidas AG said it will take over from Nike Inc. as the official uniform supplier of English Premier League team Manchester United from the 2015/16 season.
The world’s second-biggest sporting-goods maker signed a 10-year deal with the record 20-time English soccer champion, it said today in a statement. The agreement is worth a minimum of 750 million pounds ($1.3 billion), Manchester United said separately. Adidas said it expects sales from the partnership to exceed 1.5 billion pounds over the 10-year term.
Nike’s contract with Manchester United will end after the coming 2014-15 season. The Beaverton, Oregon-based company declined to match Adidas’s bid, a person with direct knowledge of the matter said last week. The terms being offered to renew the partnership “did not represent good value for Nike’s shareholders,” Nike said in an e-mailed statement.
Adidas’s offer came after United’s worst season in two decades. The Red Devils finished seventh in the Premier League, a year after winning the title during Alex Ferguson’s last campaign as coach. Ferguson’s successor, David Moyes, was fired before the end of the season and will be replaced by Netherlands coach Louis van Gaal.
The new partnership “clearly underlines our leadership in football and will help us to further strengthen our position in key markets around the world,” Adidas Chief Executive Officer Herbert Hainer said in the statement.
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