Oh dear. It seems Nike aren't prepared to meet the rags' sky high demands for shirt sponsorship.
From the Wall Street Journal.
Manchester United, fresh off its worst season in more than two decades, is shooting for another record: the largest sponsorship deal in soccer.
The English football juggernaut is in talks with Nike Inc. NKE +1.39% and some of the biggest names in sports apparel--as well as a Michigan-based maker of lacrosse wear--over a deal to outfit the team. Manchester United MANU -0.76% executives think the contract could top $600 million over a dozen or more years, according to people familiar with the discussions.
Nike, the current supplier of Manchester United uniforms and first in line for the next deal, is balking at Man United’s lofty asking price, the people said. The current deal with Nike, valued at GBP302 million ($507.8 million) across 13 years, entitles the sportswear maker to manufacturing and retail rights to the team’s uniforms, as well as fan wear and merchandise. The team and the company jointly operate Manchester United Merchandising Ltd., which handles all of the team’s merchandising business and a network of junior soccer schools. The Nike swoosh is also prominently displayed at Old Trafford Stadium--Manchester United’s home turf--along with signage from other sponsors.
The U.S.-based company has the right to match any competing offer that Manchester United may receive. While Nike executives would like to see the team continue to wear its brand in games, they won’t do so at any cost, according to a person familiar with the matter. A $1 billion multiyear deal between the two parties, reported by some British tabloids, would be out of the question, this person said.
Last week, Manchester United CEO Ed Woodward said the club is having “very good discussions with a number of parties.”