Manchester United and adidas have signed a ten-year agreement for the biggest deal of its kind in history.
Adidas will pay £750 million (£75 million a season) to make United's kit starting from the 2015/16 season. The moves comes after US firm Nike decided to end its association with the former Premier League champions after 12 years. Adidas' deal represents a major precedent in sports sponsorship and dwarfs the £31 million-a-year agreement with Real Madrid which the biggest club contract of its kind.
Nike will produce the kit for the 2014/15 season before the German sportswear giant takes over next season. Nike's final campaign coincides with United beginning their affiliation with US car giant Chevrolet, which will be the main shirt sponsorship. The agreement is worth a reported £53 million per season and will raise both the profile of United and Chevrolet across the globe.
A statement from United read: "Manchester United plc has reached a ten-year agreement with adidas for a global technical sponsorship and dual branded licensing deal for a minimum guarantee of £750 million, subject to certain adjustments, beginning with the 2015/2016 campaign.
"For the 2014/2015 season, Nike will continue in its role of technical sponsor and trademark licensee."
Adidas has previously worked with United, making the team's kits between 1980 and 1992 but since the club has signed a number of major deals with the likes of Umbro and Nike.
Under the terms of the agreement with adidas the German firms will provide training and playing kit to all the club's teams and will also have the exclusive right to distribute dual-branded merchandising products across the world.
As of 08:50 on Tuesday (July 15th), Manchester United plc's share price stood at 18.64 finishing 4.84 per cent up on the previous day.
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