Manchester United is blowing “full-time” on a training kit sponsorship deal with DHL in a bid tonet a much more lucrative substitute deal instead.
The world-famous football club, which recently listed on the New York Stock Exchange, announcedyesterday that it is buying DHL out of the four-year contract two years early as of June 30, 2013.The agreement was signed in August 2011 and was due to run until the end of the 2014-15 season.
Under the contract, whose value was not disclosed but put at £40 million by British media, theDHL logo appears on the players’ training kits which is also worn while warming up for matches. DHLalso has the rights to use Manchester United for marketing purposes and can advertise products andservices in the club’s stadium and diverse club media.
Manchester United stated in a NYSE filing that it has “successfully negotiated an early buyoutof our training kit agreement with DHL effective 30 June 2013” but stressed that DHL willcontinue as the global logistics sponsor thereafter.
“The significantly increased value of agreements concluded since entering into this agreement,such as our recent $559 million world record shirt sponsorship with General Motors, leads usto believe that there should be strategic opportunities to further optimise the value of theserights,” the club explained.
A DHL Express spokesman told CEP-Research that the company had agreed to the club’s buyout offerbut at the same time will remain Official Logistics Partner.
“DHL has seen great value from the training kit partnership in terms of brand exposure, customerengagement and corporate social responsibility activities, and are very grateful to ManchesterUnited for the opportunity,” he stated.
Asked whether DHL might seek to team up with another club instead, the spokesman said: “We havea range of world-class partnerships and are constantly reviewing them. At the same time, we are notactively seeking an alternative “training kit” arrangement.”
