Your last breakup may not have been worth millions of dollars. But, perhaps you too had to decide what to do with a corporate logo after dissolution or split. Perhaps you needed to find an outlet for your uniforms after a company name or logo change. Or, maybe you decided not to give that favorite concert t-shirt back to your ex. Either way, there’s a lot more to think about after a big breakup than just the feelings. Don’t forget to consider the stuff!
Manchester United, one of the champions of the Barclay’s Premier Football League in England, made big news recently when they switched from Nike to Adidas as the main supplier for their kits. The deal is the highest uniform deal of all time in any sport. Adidas will pay Manchester United $1.3 billion over 10 years to provide uniform kits.
The Initial Breakup:
Nike decided after a 10-year relationship that ManU wanted too much money to continue the relationship. Did this have anything to do with Manchester’s recent poor performance in the Premier League? They finished 7th this past season. Either way, when word got out that Nike was moving on, sports powerhouse Adidas was more than happy to move in. Adidas worked a deal to pay $130 million per year for the next 10 years to Man United. They expect $400 million in sales per year to generate from this relationship. Man U put Nike on notice in January, and the Adidas deal was done by June. The new kits start in the 2015-2016 season.
Intellectual Property and New Gear:
Of course, the brand owns their logo as intellectual property. But as part of the complete kit, Adidas will outfit Man U with an updated, slightly tweaked logo, and full game and training uniforms (down to the underwear). However, the deal is only for playing and training wear. Unlike with the Nike contract, now the team will control any other licensing for promotional products directly.
And what is the team to do with the old, outdated Nike gear? The team will continue to use the kit through the 2014-2015 season. But, what happens to the gear after that?
Often, teams need an outlet for getting rid of outdated products. Some clubs sign the old items and give them to charity. Others are required to donate the items, but not in a geographical area that they can be resold or profited. It can be mandated that the items be sent to third-world countries and given to charity.
Man U is hosting a contest this season so that people can enter to win Nike Tour Gear worn during game play and signed by the players. You can enter here.
Whether a logo change or corporate split, what do companies do with all the old stuff? Have you found creative ways to use last year’s marketing materials? Tell us in the comments below!