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Ken Clark

$1.1B Sponsorship Deal

Manchester United and Adidas agree to a 10 year, $1.1B sponsorship extension ensuring the iconic Red Devils kit will garner 3 Stripes for the next decade. The headline and the dollar amount are eye catching but what goes into this deal and why is it so important?

Now there are many answers to that question depending on where you sit, so I will just pull up on a few.

Brand Identity. Adidas aligns their brand to a top football property with a global fan base that is in the most visible league in the world. Manchester United will help drive Adidas authentic presence in the Football landscape for years to come.

Exposure. Adidas will be front and center as over a billion fans take in Manchester United matches live at Old Trafford, on global TV, and highlights across all media platforms. Those impressions all have value.

Sell shirts. And shoes and other gear. Adidas affiliates with Manchester United which draws in their massive fanbase to hopefully buy more than just United kits from the brand. They hope to turn the kit purchase into other purchases like casual gear and footwear.

Data. Yes, data. Deals like this blur the line of where one side, Adidas, ends and the other, Manchester United, begins. Consumers who purchase from Manchester United might be lined up to enter the broader Adidas ecosystem and vice versa. Consumer information has value and the brands can tap into that information to grow their business and interact directly with a motivated group of consumers.

10 years. $1.1B. Adidas and Manchester United. What are some other reasons why this deal makes good business sense? Are there any downsides?

This example is from the last 7 days. These examples are all around us and are the types of discussions, case studies, and topics that launch us into learning at Sports Business United.

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