Manchester United reported that revenue from its Nike managed merchandising business, which Adidas will take over next season, continued to decline in the fiscal second quarter.
Man U reported Retail, Merchandising, Apparel & Product Licensing revenue for the second quarter was 7.9 million, a decrease of 1.2 million, or 13.2 percent over the prior year quarter, primarily due to reduced Nike guaranteed revenue due to non-participation in the UEFA Champions League in the current season.
The decline was dwarfed, however, by a 6.8 million, or 23.4 percent increased in sponsorship revenue, which reached 35.8 million during the quarter.
Under Man U's record deal with Adidas, which was signed last summer, the soccer club is guaranteed a minimum 750 million ($1.3 bn) in payments over ten years beginning with the 2015/2016 season.
