LONDON — Adidas has signed an agreement with British soccer club Manchester United to become the team’s global technical sponsor and official licensing partner for the next 10 years.
Adidas will provide equipment and apparel to the team and will have the exclusive rights to distribute its merchandise worldwide that will yield multibillions for the German brand.
According to a Reuters report, Adidas has paid a record 750 million pounds, or $1.3 billion at current exchange, to supply Man U with shirts and kit. The 10-year agreement announced on Monday is a world record for a soccer club.
“We are [pleased] to team up with Manchester United, one of the most successful and most loved football clubs globally,” said Herbert Hainer, group chief executive officer at Adidas.
“Our new partnership with Manchester United…will help us to further strengthen our position in key markets around the world. At the same time, this collaboration marks a milestone for us when it comes to merchandising potential.
“We expect total sales to reach 1.5 billion pounds during the duration of our partnership,” he added. At current exchange, that figure is $2.57 billion.
Adidas was involved with the 2014 FIFA World Cup, having dressed the German and Argentinian teams, the two finalists in the tournament held Sunday in Brazil.
Manchester United joins the roster of sports teams that have partnered with Adidas, including Real Madrid, FC Bayern Munich, Chelsea FC, AC Milan, Flamengo and Juventus.