28 Jan 2014 08:00:30
Just got back from the states. A good friend of mine who sits on a board with me has just joined Nike at a very senior level. Tells me the United deal will be announced shortly. Would not provide any details for obvious reasons.

1.) 28 Jan 2014
It will be a monster deal. The Chevrolet deal set a new benchmark for sponsorship deals and the Nike deal will be much bigger. Did he say when the deal will be announced?

{Ed002's Note - The Nike deal is of a similar value to the Adidas deal that Chelsea has. I was at Old Trafford a few weeks ago with the extant sponsor (who will remain as a sponsor of Carrington and the training kit) and they are of the opinion that the value in the sponsorship they have got is about four times investment. I very much doubt it. They will keep their 90 tickets per game - 45 hospitality and 45 not.}

2.) 28 Jan 2014
You watch the shares rise when the Nike deal is announced and Rooney signs a new deal. Then if MU get 4th spot in May and we strengthen more in the summer, they will continue to rise. I think if everything goes to plan we may see the Glazers float some shares around September/October time. A lot of "what ifs" though, we will see.

3.) 28 Jan 2014
Not even a hint of if it will be a mega deal or not?

4.) 28 Jan 2014
Ed002, does he mean four times the current £25.6m that MU are currently getting Ed? So he thinks it will be around £100m a year? What makes you doubt it can I ask? Thanks.

{Ed002's Note - Yes, that is what they mean. It is a beancounter's figure based on teh subjectivity of the advertising they would need to buy to get the same level of exposure. Entirely unsubstantiated.}

5.) 28 Jan 2014
There were a few of us on the dinner table and people, who are with other businesses that might be construed as competition and I really did not want to look too nosy:) They would find my high degree of engagement with the club and the site very puzzling :)

Most of the conversation was about moving to Portland from Miami Fla, which is a real step down LOL

Quite sizable I will say by the vibes I got

6.) 28 Jan 2014
Ed002, I do not think it will be anywhere near £100m personally, but I would be amazed if it was just £30m a year. Our current deal that was negotiated over a decade ago was £23.5m (approx), it went up to £25.6m (approx) a couple years ago. I think it will rise more than just £4m-£5m more a year. I thought it would be doubled at least.

Will you let us know more when you do find out the exact figures? Thanks.

{Ed002's Note - You missed the point Syd.}

7.) 28 Jan 2014
Couldn't the £300m or so be over five years Ed? As opposed to Chelsea's that is over ten years? I would have thought MU would be significantly higher than Arsenal's Puma deal and Chelsea's Adidas deal.

{Ed002's Note - You would be surprised.}

8.) 28 Jan 2014
Surely the deal will be quite a bit more than those given to Chelsea, Liverpool, Arsenal etc.

{Ed002's Note - Why would that be. There is something you are not aware of about teh deal with Adidas. There is really no need to go into these finances as people are already becoming confused.}

9.) 28 Jan 2014
Heard it was £77m per year from Nike sponsorship.

10.) 28 Jan 2014
It is basically what marketing people present to businesses in terms of exposure and what that might cost if they were to buy it.

I understand where Ed002 is coming from because quite a few of the metrics they use can be questionable in terms of their valuations.

11.) 28 Jan 2014
Surely our shirt sales etc, worldwide, are more than said clubs? What are we not aware of in the Chelsea deal ed? Don't go into figures because, as you say, it gets confusing.

{Ed002's Note - It is not simply about shirt sales for the high profile clubs. There is zero point in me explaining what will be happening with Adidas and Chelsea.}

12.) 28 Jan 2014
Ed002, what are we unaware of regarding the Adidas deal? What have I missed? Can you say?

Reuters say MU earned £38m from Nike last year. The £25m plus £13m profits from merchandise sales.

Apparently the deal is £300m over five years at £60m a year. MU will also earn up to an extra £15m a year in sales.

I guess we will find out soon enough, but many will be surprised if it's just £30m a year.

{Ed002's Note - Who suggested it was £30M a year?}

13.) 28 Jan 2014
Sorry Ed, I must have misread something. When you say similar to the Chelsea Adidas deal, what do you mean exactly? Is it more of a partnership?

{Ed002's Note - Yes Syd.}

14.) 28 Jan 2014
Ed, I did think that's what you meant, just having another dizzy moment ;)