Nike has announced it will end its shirt manufacturing deal with Manchester United after the 2014/15 season.
The US sportswear company has worked with the Premier League club for the past 13 years but will end its partnership next year. The firm said in a statement that it felt the terms of the renewed agreement did not represent good value for the company and its shareholders. The announcement comes after Manchester United released images of their new shirt for the coming season, the first with new sponsor Chevrolet.
According to the Financial Times, adidas is primed to take up Nike's contract. The German company is primed to sign a contract to supply Manchester United's kit for the next ten year in deal worth £750 million. The club approached rival companies after Nike's period of exclusivity to extend its partnership expired and it subsequently decided against exercise the option to match any competing offer.
Should the former Premier League champions sign a deal with adidas it is likely to dwarf the German company's current agreement with Real Madrid where it pays the La Liga club a reported £31 million a season.
Nike said: "Any partnership with a club or federation has to be mutually beneficial and the terms that were on offer for a renewed contract did not represent good value for Nike's shareholders. We look forward to a successful final season with the club."
The 2013/14 season represented the first time Manchester United did not qualify for the Champions League in 19 years. Following the disappointing campaign, manager David Moyes was sacked and subsequently replaced by current Netherlands national team coach Louis van Gaal.
As the new Premier League season draws closer, Manchester United have already been involved in the transfer market bringing in Southampton's Luke Shaw and Athletic Bilbao's Ander Herrera.
Manchester United's share price on the New York Stock Exchange closed 1.29 per cent down at 17.61 on July 8th.
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