Castore is well-positioned to dramatically increase its profile in English football over the next few years by taking on clubs currently contracted to Umbro following a deal to sublicense the sportswear brand, SportBusiness has learned.
The company today (Tuesday) announced a deal with Umbro licensee, GL Dameck, to sign as the exclusive ‘Umbro Professional Team Sports’ sub-license holder in the UK, Germany, Austria, Switzerland, Belgium, Netherlands and Denmark, and will look to bulk up its club partnerships beginning next season using both brands.
The agreement gives Castore the exclusive right “to seek to work” with Umbro’s existing English Premier League team partnerships with AFC Bournemouth, Brentford, Luton Town and West Ham United, as well as English Football League Clubs Ipswich Town, Huddersfield Town and Forest Green Rovers, from 2024-25.
SportBusiness understands that Castore is essentially taking over all existing Umbro football kit contracts in the UK. Although these clubs will continue to wear Umbro kit until each individual contracts run out, Castore has an exclusive window to become those clubs’ kit supplier after the contracts with Umbro expire.
The Castore brand itself is currently kit supplier to three Premier League clubs in Wolverhampton Wanderers, Aston Villa and Newcastle United, albeit the latter two have announced they will switch to Adidas from 2024-25.
Castore’s understanding of the Umbro brand was enhanced in February 2023, when Sam Lucas, the former director of sports marketing at Umbro, joined Castore as chief sports marketing officer.
The company indicated that a £145m (€170m/$184m) investment round in November 2023 is related to the Umbro deal.
“We will continue to innovate in the elite sports market with this Umbro Pro Team licence marking its emergence as a multi-brand business,” Castore said in a statement. “The agreement also signifies our first step towards a brand segmentation strategy, enabling us to take a significant position in the UK and European elite sports markets.”
The “brand segmentation” approach means that Castore will explore opportunities for both Castore and Umbro brands as it seeks a level of ubiquity in the marketplace.
Castore said it would apply its digital expertise to the “marketing of Umbro’s exceptional brand heritage and authenticity and further expand the Umbro partnership portfolio, with fans remaining at the core of its strategy.”
Castore will also supply, under the Umbro brand, Scottish Premiership club Heart of Midlothian [Castore is already the global kit partner for Glasgow Rangers] and England Rugby men’s and women’s teams.
Tom and Phil Beahon, founders of Castore, said: “We are delighted to bring together Castore’s innovative digital platform, and investments in supply and distribution, with one of football’s great heritage brands, in Umbro, to reach a new generation of fans. Umbro is a global brand which is woven into the heart and soul of football culture, and this deal represents the first step in the next chapter of Castore’s continued progress.”
Outside the UK, Umbro’s presence in Castore’s sub-licensee markets is currently limited to kit deals with Dynamo Dresden and VfL Osabrück in Germany. Among its deal in the top tier leagues from other markets, Umbro has agreements in place with Rayo Vallecano (Spain), Stade de Reims (France); Club Atlético Rosario Central (Argentina); Santos, Grêmio, Fluminense, Club Athletico Paranaense, Sport Club do Recife and Chapecoense (Brazil) and Nacional (Uruguay).