Manchester United reported that its Retail, Merchandising, Apparel & Product Licensing revenue, which is managed by Nike, declined 9.5 percent in the fiscal third quarter ended March 31.
The British soccer club said those revenues fell by £800,000 to £8.4 million. Year-to-date, revenue was £28.2 million, an increase of £100,000, or 0.4 percent.
Manchester United is currently in negotiations with Nike and other vendors to determine who will run the business when its 10-year agreement with Nike expires at the end of the current season. That contract requires Nike to pay a minimum of £303 million over 13 years, plus half of annual profits from the club's merchandising and licensing operations. Nike also provides the team’s soccer kits and runs its stores in England, Singapore, Macau, Thailand and India under the agreement.
Reports continue to surface indicating Adidas has offered £600 million to secure a 10-year merchandizing deal with the club.