Munster Rugby have signed two significant deals this week which lay down a marker for their ambition and which will also shake up the sports retail sector.
The first is with Adidas who have signed a five year extension to their deal to produce the Munster kit. This is important in that the brand has been stepping away from Rugby in recent months with an exit from production of the British and Irish Lions jersey a seeming indicator that they were tiring of the sport.
Munster are believed to be the top performing shirt retailer in Europe, a reflection of the pride that fans invest in wearing the logo, and an obvious commercial reason why Adidas are staying in for the long term.
The five year deal is the third extension to the contract that was first signed in 2007 and will see adidas continue to supply Munster Rugby with the most technically advanced rugby kit until the end of the 2020/21 season.
“This is great news for the province and we are delighted to once again continue our partnership with a world leading sports brand such as adidas,” said Munster Rugby CEO Garret Fitzgerald.
“Their investment in kit technology and production ensures we have access to the highest quality rugby apparel each season.”
“We have had an excellent working relationship for the past eight years and we look forward to the next five years together.”
“Adidas are delighted to have been appointed by Munster as an official partner for the next five years.”
“Adidas and Munster have enjoyed a hugely successful partnership since it began in 2007 and we are excited to extend that relationship into a new deal.”
“We are committed to providing new kits to both players and fans featuring stand out designs and the latest cutting edge technologies.”
In a back to back deal Munster has also confirmed an exclusive five year retail partnership with Lifestyle Sports. This will come into effect from the start of the 2016/17 season and will mean that the jersey and Munster merchandise will only be available through Lifestyle’s 41 stores nationwide, 19 of them in Munster, and online
This will mean that Elvery’s and Sports Direct of the other major players will no longer have the right to sell Munster kit and merchandise.
Clubs need to have huge confidence in their own brand equity to strike a deal like this but that is something which Munster have never lacked and in a sector which has shown real renewed growth in the past two years it looks like a winning deal for Lifestyle as well.
The key for any retailer is to differentiate and signing exclusive deals with the biggest sellers is a clear way of going about that.
“This adoption of a kit partnership and retail model employed by topflight sports clubs throughout Europe,” said a Munster Rugby spokesman.
“This agreement will further benefit the ongoing investment and development in rugby throughout the province, strengthening the Munster Rugby brand on and off the field.”
It will also prompt further discussion with Connacht and Leinster where Lifestyle is the existing retail partner but whose kits are currently sold general through other stores.
Image credit: Inpho.ie
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