Nike threatens to pull out of United Sponsorship deal

gandalf

Looks like Nike are getting worried about sponsoring the 4th team in England

http://news.bbc.co.uk/sport1/hi/football/teams/m/man_utd/4591031.stm
Sponsor puts pressure on Man Utd
Ferguson is under pressure to win trophies next season
Manchester United have been warned that another season of failure on the pitch may lead to Nike reconsidering their multi-million pound sponsorship deal.

The sportswear giant started a 13-year kit deal with United in 2002 - worth up to £303m to the Old Trafford side.

But vice-president of sports marketing Ian Todd says that a continued lack of success may not be tolerated.

"If they failed to qualify for the Champions League, that might be a problem," he told the Sunday Telegraph.

Todd added: "We will look very carefully at this situation, as we do with all our sponsorship agreements. We don't know what is going to happen. All options are open."

Nike reportedly has a get-out clause with United that would allow the company to back out of the deal after the 2007-08 season.

Sir Alex Ferguson's side failed to win a trophy in the 2004-2005 campaign.

And Todd admitted that lack of success on the pitch is a concern.

He said: "Chelsea won the league this year, Arsenal won the FA Cup and Liverpool won the Champions League.

"So you could argue that Manchester United are only the fourth-best club in England at the moment."

Mitch Connor

and things just get better and better! its such a happy time to be a united supporter. look at me do my happy dance----> ***Tauren does his happy dance***...............sigh

PHB

Oh no what will we do
First off, Nike aren't stupid, United still sell the best.
Secondly, if they did, Glazier would hook us up with some American brand name which would pay just as well.
troubling times really

Mitch Connor

funnily enough - glazer and nike are reported to have a very good relationship.

The Muppet

gandalf wrote:

"So you could argue that Manchester United are only the fourth-best club in England at the moment."

You could argue black was white if you were so inclined but you would be wrong.

Mitch Connor

The Muppet wrote:

You could argue black was white if you were so inclined but you would be wrong.

true - everton would not be happy! :rolleyes:

LegacyUser

grrrrrr --> frustrating times.

andyman

We could get a deal anyway with a high paying American brand which PHB pointed out.

Mitch Connor

andyman wrote:

We could get a deal anyway with a high paying American brand which PHB pointed out.

why? Nike are one of the leading brands in the world, if they didn't want to sponsor us why would an american firm? Glazer might see the American market as a gold mine but if it has not been cracked already why does anyone think he can do it? The United board have already pointed this out. I'm positive we could find another sponsor withoput any problems, but i doubt kappa, or addidas, or reebok, or umbro, or whoever are going to pay more, or the same as Nike are paying to make our tops.

andyman

Good point.

***andy stands down***

Mitch Connor

looking at it from another angle, its could be viewed as good news. Glazer needs the money Nike give us, so he really needs us to be succesfull - speculate to accumulate. It could be the kick up the arse the club needs.

Gangsta

PHB wrote:

First off, Nike aren't stupid, United still sell the best.

Then why are they thinking of pulling out? :rolleyes:

PHB wrote:

Secondly, if they did, Glazier would hook us up with some American brand name which would pay just as well.
troubling times really

They will always find another sponsor but, a deal worth 303million?

andyman

The team could be Motivated by saying to themselves that they need to have a successful year or risk a pay cut

astrofool

the story is up on football365 as well, for some reason, the bbc left this bit out:

"If, for example, Manchester United failed to qualify for the Champions League next season, that might be a problem. We will look very carefully at this situation, as we do with all our sponsorship agreements."

Its a story out of nothing.

Or on a re-read, did have the same quote, but everyone is ignoring it.

I think if utd. didn't qualify for the cl, nike pulling out would be the last of their worries. They strolled to the top 3 this season, and had a bad season, and have more money to spend than all the teams bar chelsea in the summer.

Mitch Connor

astrofool wrote:

the story is up on football365 as well, for some reason, the bbc left this bit out:



Its a story out of nothing.

i hate football365 so much - i'd love to punch whoever runs that site.

Gangsta

Tauren wrote:

i hate football365 so much - i'd love to punch whoever runs that site.

Tis a crappy version of football forums. Boards is much better.

Mitch Connor

Gangsta wrote:

Tis a crappy version of football forums. Boards is much better.

the constant referral to Manchester United as Man Yoo really gets on my nerves. i hate that site so much

PHB

Then why are they thinking of pulling out?

Perhaps you could show me where they said they would? Or where they were considering it?
They said if something happens, they might consider, which is similar to saying, if United got relegated, we would have to consider it.

Glazer might see the American market as a gold mine but if it has not been cracked already why does anyone think he can do it? The United board have already pointed this out.

Thats cause the board isn't going to say,
'Hey, you are totally right, we messed up big time in America, please takeover the club so we can all be fired'
Duh, they are business men.
Glazer cracked the American market with Tampa Bay, and he will do so again with United.

LegacyUser

Tauren wrote:

the constant referral to Manchester United as Man Yoo really gets on my nerves. i hate that site so much

That really annoys me too. I complained when i first found the site years ago but they didn't give a toss!!!!!!!!!

Gangsta

PHB wrote:

Perhaps you could show me where they said they would? Or where they were considering it?
They said if something happens, they might consider, which is similar to saying, if United got relegated, we would have to consider it.

I never said they would. They're considering it if there is a continued lack of success which is similar to, well I don't know, more trophyless seasons?

Mitch Connor

PHB wrote:

Perhaps you could show me where they said they would? Or where they were considering it?
They said if something happens, they might consider, which is similar to saying, if United got relegated, we would have to consider it.



Thats cause the board isn't going to say,
'Hey, you are totally right, we messed up big time in America, please takeover the club so we can all be fired'
Duh, they are business men.
Glazer cracked the American market with Tampa Bay, and he will do so again with United.

glazer cracked the american market with Tampa by turning them into a succesful team in a DOMESTIC sport they love, cracking the market with a foreign team playing a sport they do NOT love will be much much much harder. Soccer is becoming more popular over there, but it is still very much a minority sport, played more so by women then lads - who drop soccer for Basketball and American Football if the opertunity arises. There is certainly the potential for the american market to become big, but its not going to happen as quickly as i feel glazer needs it to.

PHB

Glazer would not have bought into United, put nearly all of his assets into the club, for it to fail.
Whatever you can say about him, and I can say lots, he knows what he is doing.

Mitch Connor

i do not think he will deliberately destroy the club - but it is a very real possibility imo.

United are now in up £600million in debt, that is not going to be easy to pay off.

David19

PHB wrote:

Thats cause the board isn't going to say,
'Hey, you are totally right, we messed up big time in America, please takeover the club so we can all be fired'
Duh, they are business men.
Glazer cracked the American market with Tampa Bay, and he will do so again with United.

Glazer cracked the American market with an American football team. Thats completely different. Also I don't know if Tampa are that popular.

Why would Americans buy into soccer? They already have four big sports. Thats more than in the UK.

Edit: Took too long replying, Tauren made the same point.

PHB, you're talking like he'll definitely succeed. You say he knows what he's doing. Maybe he doesn't? Maybe he'll fail

Big Ears

Tauren wrote:

United are now in up £600million in debt, that is not going to be easy to pay off.

That figuire just keeps seeming to rise and rise as time goes on , isn't the actual figuire about £393 million ? possibly £493 million , but its certainly no more .

Mitch Connor

add in the interest to that.

Gangsta

Ya it's 600million with interest. Something like 120,000 a day. That's shockingly high. PHB's right though Glazer wouldn't buy Man U if he wanted them to fail, he must have somekind of plan but, there doesn't seem to be any silver lining for Man Utd at the moment.

DMC

Arent all NFL jerseys done by Reebok?

And, when Sunderland and Leeds dropped out of the Premiership, so did their Nike shirt deals. I think Diadora have them now.

But I can't see Nike dropping United, as they are still the top selling jersey.

TwoShedsJackson

DMC wrote:

Arent all NFL jerseys done by Reebok?

And, when Sunderland and Leeds dropped out of the Premiership, so did their Nike shirt deals. I think Diadora have them now.

But I can't see Nike dropping United, as they are still the top selling jersey.

But another season of no trophies and all the bandwagon supporters United have had since 1992 will be wearing Chelsea or Liverpool shirts, so that'll be the end of that

PHB

But another season of no trophies and all the bandwagon supporters United have had since 1992 will be wearing Chelsea or Liverpool shirts, so that'll be the end of that

What makes you think that? While we picked up a load of bandwagon supporters in 1992, I'd be a part of that group, and once people pick a team they aren't so quick to move on normally.
Bandwagons tend to effect kids more, and you can see that already, with lots more Arsenal and Chelsea fans around these days. Won't loose the support you have already, or at least not a significant portion of it.

jank

Arsenal fans are still in a very small minority compared to the big clubs (Man Yoo , Liverpool and Celtic). There always had a bit of a support though.

and have more money to spend than all the teams bar chelsea in the summer.

The same as Wigan I see

andyman

Wigan get £25mil.

Wont suprise me if they stay up next year.