adidas are raking it in thanks to Ronaldo
Manchester United re-signing of Cristiano Ronaldo on a two-year deal has led many to speculate that shirt sales alone would cover the £12.85m expenditure. However, experts have come forward to say that this isn’t the case at all.
“The fee’s already been agreed between the manufacturer and the club,” says Dr Dan Plumley, who is a senior lecturer in sport finance at Sheffield Hallam University told the BBC.
“So the shirt sales go to the manufacturer – or the majority of them [do].”
Back in 2014, United signed a decade long deal with adidas worth £750m.
This was the largest kit deal in history, and though United will get a portion of the money produced by kit sales, Plumley says “it’s very unlikely that that would ever be above 10%”.
Considering shirts can cost up to £100, Plumley says United could see only £5 of this. But this is good news for adidas as Plumpley suggests they could easily make back their £750m.
“There is a wider picture here of all the commercial aspects as well,” he tells Radio 1 Newsbeat.
“Big brands like to be associated with other big brands.”
For instance, Barcelona’s kit deal with Nike was another historical moment. Their long-term contractual extension has brought the Catalan giants £140m a year, money the club could have put to good use were they run in a way that even remotely resembled competency.
Related links:
- Manchester City pull out of deal to sign Cristiano Ronaldo
- Rio Ferdinand’s cryptic tweet has Man Utd fans clinging to Ronaldo hope
- Cristiano Ronaldo ‘says goodbye to teammates’ ahead of proposed Man City move
