The LA Galaxy announced today the extension of their shirt sponsorship deal with Herbalife. The new contract calls for a ten year deal valued at over $44 million. The previous deal was announced at five years and between $3.5 million and $5 million. Between this announcement and the local television deal, the Galaxy have amassed capital unmatched in Major League Soccer.
"Herbalife bet on the Galaxy six years ago and now MLS has exploded in popularity and growth. For them to renew their partnership for this extended length is a tremendous mutual reward for both of us and a demonstration of their belief and faith in MLS," said Tim Leiweke, CEO of Anschutz Entertainment Group (AEG). "To have this kind stability and strength in a partnership that will take us into the next decade is refreshing for the sports industry."
This Galaxy shirt sponsorship deal significantly surpasses the Chicago Fire's announced deal of three years at $8 million from Quaker Oats announced earlier this year. Manchester United have the world's most lucrative shirt sponsorship, with AIG paying $126,752,000 over four years to sponsor the world's most popular club.
"We made our first commitment to the LA Galaxy and MLS more than five years ago and we are delighted to carry on by committing to a long-term relationship," said Michael O. Johnson, Herbalife’s chairman and CEO. "We continue to believe in the global appeal of the club, and the sport of soccer, to promote a healthy, active life. The LA Galaxy have created much excitement for the sport among soccer fans and among our independent distributors around the world."
The deal will keep the Herbalife name across the front of LA Galaxy kits for the next ten years. It also makes Herbalife the Galaxy's exclusive nutrition partner, providing supplements such as energy drinks and powders for the club.
At the official announcement, the Galaxy also announced that $2.5 million of the contract will go toward charitable efforts to benefit vulnerable and underprivileged children. The Children's Institute, which housed the press conference, was given a $1 million check to support fitness and nutrition programs for some of LA's most at risk kids. Members of the youth organization were on hand to kick the ball around with Galaxy players.
The Galaxy play next on Sunday, at 4pm at Home Depot Center. The team will be presented with their championship rings honoring the 2011 MLS Cup win.