Nike Announce Sale Of Umbro For $225 Million
Nike have announced that it has found a buyer for Umbro, agreeing to sell the Manchester based sports company to American clothing giant Iconix for $225 million (£140m) in cash - Nike purchased Umbro in 2008 for $582 million. Iconix will be adding Umbro to its 29 consumer brands.
Nike announced its intention to divest of Umbro and Cole Haan to sharpen its focus on driving growth in the NIKE, Jordan, Converse and Hurley brands back in May. Iconix already have a number of sports and fashion brands in their portfolio, including Marco Ecko and Zoo York. The sale is expected to be completed by the end of 2012.
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The move is likely to mean an end to all major players wearing Umbro. It is anticipated that Manchester City England no.1 Joe Hart will join Nike. Other key names still on Umbro's books include England internationals Andy Carroll and Kyle Walker.
Nike have already stripped Umbro of its partnerships with Premier League champions Manchester City and the English national team. No longer will Umbro supply the match balls for the FA Cup. Umbro's presence in the English game has rapidly dissipated in the space of a season. Where they go from here remains to be seen.
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There has been a high turnover of Umbro players in recent months with Pepe, Gael Clichy, Gary Cahill and Jordan Henderson all having left. The company will no longer have any muscle power when it comes to sponsoring high profile players. The brands focus is likely to centre on its cultural heritage and fashion catalogue.
The danger of slipping back into the dark days that haunted the brand in the years prior to Nike's purchase in 2008 seems a sad possibility. What do you think the future holds for Umbro? Join the conversation online, on Twitter and on Facebook.
