Adidas AG ADS.XE -1.52% has offered to pay more than £60 million ($103 million) a year for a decade to sponsor soccer team Manchester United Ltd. MANU -1.29% , a giant deal that has prompted rival Nike Inc. NKE -1.25% to walk away, a person familiar with the negotiations said.
If signed, the offer by the German sporting-goods maker would rank among the most valuable of soccer sponsorships. Manchester United's biggest sponsor currently is General Motors Co. GM +0.37% 's Chevrolet for $80 million a year.
Nike, whose deal with Manchester United expires after next season, has the right to top any competing offers for the contract, but doesn't want to pay that much and has notified the English Premier League team that it is opting out, the person said.
The Beaverton, Ore.-based sportswear maker and Manchester United have been in talks for months about renewing the contract, even as their respective performances in soccer have diverged. Nike reported $2.3 billion in wholesale revenue from soccer for the year ended May 31, an 18% jump from a year earlier. Meanwhile, Manchester United was wrapping up its worst season on the pitch in more than 20 years.
The potential deal is the latest move by Adidas, the world's second-largest sporting gear and equipment maker, to regain some ground from Nike. In Adidas's home region of Western Europe, net sales were flat at €1.1 billion ($1.5 billion) for the quarter ended March 31, while Nike posted a 25% jump to $1.3 billion in the region for the quarter ended May 31.
Adidas, which currently sponsors Manchester's Premier League rival Chelsea, has been hoping its endorsements in soccer, particularly around the World Cup, will buoy its full-year results. Last month, the company reaffirmed its expectation to reach €2 billion in world-wide soccer-related sales for the year.
In recent months, Nike had been balking at Manchester United's asking price for a new deal, which some team executives believed could top $600 million over a decade, The Wall Street Journal reported in May.
Nike's current deal with the team is valued at £302 million across 13 years and includes manufacturing and retail rights to the team's uniforms and fan merchandise. Nike and Manchester United jointly operate the team's merchandising business and a network of junior soccer schools under Manchester United Merchandising Ltd.
Lacrosse gear maker Warrior Sports, a subsidiary of New Balance Athletic Shoe Inc., also has expressed interest in sponsoring the soccer team, which has an avid and global fan base despite its tough year.
On Monday, Manchester United unveiled its Nike-made uniforms for the 2014-15 season, which prominently display the emblem of Chevrolet across the chest, reflecting the team's $80 million a year deal with GM that was struck in 2012.