Manchester City announce Nike kit deal

Manchester City Football Club and NIKE announced a new partnership that will see the sponsorship of the club move from Umbro to the Nike brand from the start of the 2013/14 season.

The Umbro sponsorship, which has been in place since June 2009, will continue to the end of the 2012/13 season (next season), after which all kit, training wear and related products will be designed, manufactured and distributed by Nike. The contract will run until 2019.

Nike Brand President, Charlie Denson said:

“We’re excited by the opportunity to further develop the relationship between City and Nike Inc, which builds on the successful partnership the club has already enjoyed with Umbro, and reflects both the ambitions of the club and the Nike brand’s position within the world of football.”

John MacBeath, Interim Chief Executive Officer of Manchester City Football Club added:

“We are delighted to have further strengthened our relationship with the Nike family. Nike’s deserved reputation as the leading global sports brand, its unparalleled R&D capacity, leading global retail distribution networks and award winning marketing capabilities mean that this is a very important step forward in the evolution of Manchester City.”

This deal means that City will share shirt sponsors with their local rivals Manchester United, who have been sponsored by Nike since 2002. City had secured a 10-year deal with Umbro, worth £6million a year, as recently as 2009. But with Umbro now owned by Nike, that agreement has been re-negotiated to reflect City’s subsequent success on the pitch.

Although City have doubled the value of their kit deal by moving from Umbro to Nike, the financial benefits of the package remain some way adrift of City’s domestic rivals.

Liverpool’s £25 million-a-year deal with the American manufacturer Warrior is the biggest in the Premier League, while Manchester United are rumoured to have a possible £600 million, 10-year kit deal in the pipeline for when their current £23.5 million, 13-year agreement with Nike expires in 2015. Chelsea’s eight-year deal with Adidas is worth £20 million per annum while Arsenal’s £13 million-a-year package with Nike dates back to 2003. Globally, Real Madrid’s £28.5 million-a-year deal with Adidas outstrips Barcelona’s £26.3 million-a-year partnership with Nike.

City’s progress on the pitch has been reflected in the Nike deal, but off the field, the club has yet to prove its ability to compete with the likes of Liverpool, United and Chelsea in terms of shirt sales, both in the UK and across the globe. Hopefully, the association with Nike will boost their profile and enable the club to dramatically increase its global recognition.