England nets £400m Nike ‎deal despite early Euro 2016 exit

The Football Association is close to unveiling the most lucrative kit sponsorship deal in its history despite the England team's limp exit from Euro 2016 and even as the sport's sexual abuse scandal continues to escalate.

According to Sky News, Nike, the American sportswear manufacturer, has agreed the terms of a £400m, 12-year extension to its existing deal with the FA.

The new long-term partnership is expected to be announced within days, although the precise timing was unclear on Tuesday.

The scale of Nike's backing for ‎the FA - which will encompass all of the England national teams - will mark a modest improvement on the existing deal, which expires after the 2018 World Cup in Russia.

Nike replaced Umbro in 2013, ending an association dating back to the 1950s.

Sources said‎ the new kit supply deal would for the first time include several contingency clauses, including a financial penalty if the senior men's team fail to qualify for major tournaments.

It has also been structured to mean that there will be incentiv‎e payments if the team reaches the latter stages - expected to refer to the semi-finals or beyond - of World Cups and European Championships from 2020 onwards.

The Nike deal will come soon after the FA unveiled another major commercial deal, with the overseas broadcast rights to the FA Cup reported in October to have been sold for around ‎$1bn.

Under Martin Glenn, the former Walkers Crisps, Birds Eye and United Biscuits executive who took the helm at the FA last year, the organisation has prioritised more effective exploitation of its commercial rights.

However, the latest deal comes as the FA finds itself in the middle of a firestorm over the expanding child sexual abuse scandal which has rocked British football.

On Tuesday, the FA published detailed terms of reference for an investigation into the allegations.

English football's governing body has also had to contend with the poor performance of the men's team, with a second round defeat to Iceland at Euro 2016 following a group stage departure at the World Cup two years earlier.

Sports industry executives suggested that the size of the new ‎Nike partnership with the FA meant it would rank second behind only Germany - the reigning world champions - in national kit supply deals.

The FA's alliance, worth about £33m annually over the duration of the contract, is nevertheless significantly smaller than the most lucrative club deals.

In October, Chelsea announced a 15-year partnership with Nike worth £900m, while Barcelona's annual contract with the Oregon-headquartered sportswear manufacturer is worth an estimated £120m.

Neither the FA nor Nike could be reached for comment.

Follow The Forefront on:

   > facebook Global audience 

   > facebook Nigerian audience  
   > The Forefront on Twitter
   >BBM Channel: C002CB006 {WELCOME TO THE FOREFRONT}

 >{Instagram: the_forefront_nigeria }

 Connect with Joshua Osagie (Blog owner) 
 >  facebook personal account 
 > facebook  (fan page) 

 > twitter

 > Instagram: osagiejoshua

Share this post with others on social media with options below.