17 Sep Manchester United’s Nike Revenues Decline in Fiscal Q4
Manchester United PLC reported that Retail, Merchandising, Apparel & Product Licensing revenue was £8.3 million, a decrease 10.8 percent, over the prior year quarter.
For the full year, Retail, Merchandising, Apparel & Product Licensing revenue reached £31.6 million, a decrease of 15.7 percent over the prior year. The decline was primarily due to reduced Nike guaranteed revenue due to non-participation in UEFA competitions in the current season and the extended final period of the team’s partnership with Nike, which ended on July 31, 2015.
Nike’s contract to manage the business expired Aug. 1 , when Adidas took it over under a 10 year contract that guarantees the club £750 million in revenue. Nike had held the contract since 2002, when it agreed to pay a minimum of £303 million over 13 years plus half of annual profits from the club’s merchandising and licensing operations.