Expected Umbro takeover makes agencies sweat
Nike’s reported £285million takeover of sportswear firm Umbro could have massive ramifications for the northern media scene, if the deal goes ahead as expected.
Agencies tasked by the Cheshire-based football kit specialists include Manchester’s Love Creative (responsible for all global advertising), Leeds-based Swamp (digital) Manchester\'s Silver Films (production) and Xposure (PR briefs).
An Umbro PR spokesman told The Drum it was “too early” to say what the proposed deal would mean for the firm’s media and marketing contracts, but suggested that Umbro as its own entity will stay intact.
The spokesman said that Umbro would be run as its own identity even under new ownership, with Nike’s intention being to grow the business as a standalone brand, much as it does with its Converse strand.
Fears had arisen that a staff amalgamation could see the company’s marketing department roll into Nike, threatening local agency relationships. The spokesman suggested though that Nike plan to keep Umbro’s presence in the area, including its Cheadle-base.
“This is a very exciting deal for the company, utilising the brand expertise of Nike to grow the business and the Umbro brand,” the spokesman said.
Umbro is the official shirt supplier to six Premier League clubs and the England national team, while its brand is endorsed by players including John Terry, Michael Owen and Luis Garcia.
The firm lowered sales expectations for 2008 last month after summer trading on the England replica shirt market had proved “disappointing”.
Analysts predict the national team’s precarious form could also have an impact on replica kit sales, especially if the team fails to qualify for next summer’s European Championships.
Umbro’s board has recommended an offer worth 195p a share, but the deal is believed to rest on the reaction of two leading shareholders, JJB Sports and Sports Direct.