Lyon & Umbro extend shirt deal

Umbro have extended their shirt sponsorship deal with Olympique Lyonnais until 2013. French side Lyon have just won their six straight French League Championship title

At the same time as clinching the deal with the Ligue 1 team, Umbro have also agred to take a 49% share in French licensee, Noel Soccer.

Shirt deal for Olympique Lyonnais with Umbro extended

Peter McGuiga, Umbro Chief Executive said:

“France is Umbro’s largest international market and our partnership with our most successful licensee,” McGuigan said. “Coupled with our sponsorship of France’s most successful football team, (this) ensures that Umbro is well-positioned for future growth in this market.”

The overall stake in Noel Soccer is comprised of £5.9 million cash for 36% and a further £2.17 million in a shareholder loan which will be converted into equity,

Umbro buy in Noel Soccer

Umbro is paying GBP 5.9 million for a 36 percent stake in Noel Soccer, and has made a shareholder loan of GBP 2.17 million which will be converted into equity and give Umbro a 49 percent stake overall.

The deal also provides for an additional GBP 4.07 million payment over the next six years if Noel Soccer achieves sales and profits growth targets. The two sides, who have been collaborators since 1993, also have extended a distribution agreement to 2020.

Umbro has a market value of GBP 241 million and posted pre-tax profits of more than GBP 26 million on revenues of almost GBP 150 million for 2006.