The World Cup may be over but soccer teams continue to score.
Manchester United, one of the world’s most valuable soccer franchises, said Monday it has inked a mega-jersey manufacturing deal with Adidas that will net it $1.3 billion over 10 years.
The $130 million-a-year deal, which begins in 2015, is a record for a soccer jersey maker — surpassing the $50 million-a-year deal Adidas has with Real Madrid, the powerhouse Spanish League team that recently won the pan-Europe Champions League.
The Adidas-ManU deal comes after Nike and the team, which plays in the UK’s Premier League, couldn’t agree to terms on a contract extension.
Nike has one season remaining on a 13-year deal that pays ManU $40 million. Nike had balked at tripling its fee, saying it didn’t make economic sense for its shareholders.
For Adidas, the deal will allow them to sell ManU merchandise and other sporting goods around the world. Those sales could bring in $2.57 billion — or double the fee — over the life of the deal, said Adidas Chief Executive Herbert Hainer.
As an example of just how heated the business of sports has become, the Adidas-ManU deal is worth just $68 million less than the total paid by the Glazer family in 2005 for the entire ManU team.
Plus, the team will receive $560 million over seven years from Chevrolet as the main sponsor of the jersey.
The terms of the deal mean Adidas will provide the training and playing jerseys for ManU and its youth team.
Despite not qualifying for the Champions League this season for the first time in 20 years, ManU’s deal with Adidas is a clear vote of confidence for the Premier League team’s robust brand and unmatched commercial reach.
Adidas’ ADRs gained 3.3 percent on Monday, to close at $50.22. ManU, with a market cap of $3.1 billion, gained 4.8 percent, to close at $18.64.