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Manchester United and Adidas announce record £75 million per year deal after Nike opt out

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Manchester United and German based sportswear giants, Adidas, have agreed a mammoth new kit deal worth a record £75million a year, set to start in 2015-16. The deal will run for 10 years. The incredible sum of money is more than double what they currently receive from Nike, who confirmed last week that they will not extend their contract which is set to expire at the end of this season, and smashes the previous record set by Arsenal’s new kit deal with Puma which is believed to generate £150million over the five year contract.

"We are excited to team up with Manchester United, one of the most successful and most loved football clubs globally," said Adidas Group CEO Herbert Hainer. "Our new partnership with Manchester United clearly underlines our leadership in football and will help us to further strengthen our position in key markets around the world. At the same time, this collaboration marks a milestone for us when it comes to merchandising potential. We expect total sales to reach £1.5billion during the duration of our partnership."

A statement from the club read: "Manchester United Football Club 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, who have worked with United in the past, have fended off competition from two American sportswear brands in Warrior and Under Armour, even though the former already supply fierce rivals Liverpool with their kits. With Nike set to end their 13 year partnership with the club at the end of the season, Adidas will unveil their first kit next summer, although it is Nike’s recently unveiled Chevrolet sponsored kit that is currently the talk of United fans. The current deal with Nike is worth around £25.4million a year. The US brand revealed last week that they were not looking to extend their deal due to the enormous figures involved in negotiating a new agreement.

A Nike statement read: "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."

With the club expecting a £50million loss due to the failure to qualify for the Champions League under sacked manager David Moyes, the deal will come as a huge boost to ensure the financial stability of the club remains intact. With Louis van Gaal set to arrive at the club on Wednesday to begin his tenure at Old Trafford, United officials will hope they can return to Europe next season where the new deal will give them an even greater boost financially than they already enjoy over the majority of teams.

United have invested this summer in strengthening their squad after last season’s disappointment, with the £30million plus signing of Luke Shaw following the estimated £29million deal for Ander Herrera, Van Gaal looks set to continue the spending with interest in Juventus star midfielder Arturo Vidal and Real Madrid's Angel Di Maria.

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