United calls end to DHL training kit deal
26 Oct 2012
Manchester United has reached a settlement agreement on its training kit sponsorship with DHL in the belief that the partnership is significantly undervalued.
The leading logistics company upgraded its relationship with the English Premier League giant in August 2011 to become its first official training kit sponsor. DHL had been United’s official logistics partner for a year, but the new four-year agreement, worth £40 million, has seen the company’s logo included on the club’s training kit during domestic competitions. The agreement dwarfs the revenues that the majority of United’s Premier League rivals generate for their main shirt sponsors, but United believes that it can secure a more lucrative deal.
The move comes after United in August announced a record-breaking seven-year shirt sponsorship deal with Chevrolet worth £357 million. United’s partnership with the General Motors brand will commence in the 2014-15 season, when it will replace Aon as the club’s main sponsor. “We have successfully negotiated an early buy-out of our training kit agreement with DHL effective 30 June 2013,” said United in a statement. “DHL will then continue as our global logistics sponsor.”
The club added: “The significantly increased value of agreements concluded since entering into this agreement, such as our recent US$559 million world-record shirt sponsorship with General Motors, leads us to believe that there should be strategic opportunities to further optimise the value of these rights.”