Nike could pull plug on £303m Man Utd sponsorship deal

by Joe Lepper, Brand Republic 31-May-05, 09:00

LONDON – Nike has warned Manchester United it could end its £303m sponsorship deal unless the Premiership football club improves its performance on the playing field.

According to reports, Nike's vice-president of sports marketing Ian Todd has put a question mark over the future of the 13-year kit deal, which started in 2002.

"We don't know what is going to happen next year. All options are open... if, for example, United failed to qualify for the Champions League next season that might be a problem," he told The Sun.

It is understood Nike has a break clause that can be triggered at the end of the 2007-2008 season. This would be a huge financial blow to the club because the sportswear giant's contribution is understood to be around 10% of the club's annual revenue and worth an estimated £130m over the first six years of the deal.

The comments from Nike are the latest blow to the club, which failed to win a trophy this season and has been taken over by US sports tycoon Malcolm Glazer amid fury from many fans.

Man Utd lost the league title to Chelsea, the FA Cup to Arsenal and saw Liverpool win the Champions League.

There is also speculation that Glazer will limit the club's transfer kitty, further denting its ability to compete with rivals such as Chelsea in the domestic game and Real Madrid in Europe.

Meanwhile, one of the club's other major sponsors has rallied to its support. In The Times today, a spokesperson from Anheuser-Busch, which owns sponsor Budweiser, said the firm is "committed" to Manchester United.

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