NEW YORK (TheStreet) --Shares of Manchester United PLC (MANU) are gaining 5.46% to $18.75 in mid-afternoon trading on Monday after the British soccer club signed a 10-year, $1.3 billion deal with Adidas AG (ADDYY).
The record breaking deal makes the German sports footwear, apparel, and accessories retailer Manchester's new kit sponsor, ending the team's 13-year relationship with Nike (NKE), The Guardian reports.
The agreement takes effect at the beginning of the 2015-2016 season. Nike will continue to act as Manchester's technical sponsor and trademark licensee for the 2014-2015 season.
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Separately, TheStreet Ratings team rates MANCHESTER UNITED PLC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate MANCHESTER UNITED PLC (MANU) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company's profit margins have been poor overall."