Chelsea pay Â£24m to end shirt deal

14 April 2012

Chelsea have paid an astonishing £24.5million to end their sponsorship deal with kit- maker Umbro as they line up one of the biggest shirt contracts in world football.

Umbro released a statement to the Stock Exchange this morning saying the deal had been terminated by "mutual agreement".

Stamford Bridge chief executive Peter Kenyon is in the process of securing a lucrative new sponsorship deal to fit the club's higher global profile.

It is expected that a mega deal, rumoured to be with adidas, will be announced within months.

Manchester United currently have comfortably the biggest kit deal in British football. Kenyon, then at United, agreed a £300m 15-year contract with Nike in 2000 after also dispensing with the services of Umbro.

Chelsea recently announced that their four-year £24m deal with shirt sponsors Emirates will end this season.

Kenyon, a former chief executive of Umbro, is planning to announce a new deal with another shirt sponsor shortly.

Umbro have suppl ied Chelsea with playing and training kit and the sale and distribution of replica products since 1995.

In 2001, the west London club signed a further 10-year deal with Umbro which was worth around £50million.

The contract will now end in June 2006, five years ahead of the original date.

Umbro will continue to be the kit-maker during the club's centenary season in 2005-6 when a new home kit and celebration products will be launched for the occasion.

A statement from Umbro said: "The company will receive a payment for early termination from Chelsea of £24.5m in June 2006 for the five-year period to 2011."

Kenyon said: "Umbro have made a major contribution to the Chelsea of today. However we believe this decision will help us achieve our strategic long-term goals."

Chelsea are top of the Premiership by 10 points and in the last 16 of the Champions League. They are also in the semi-finals of the Carling Cup and the FA Cup fourth round.

Chelsea pay Â£24m to end shirt deal

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