October 24 – Liverpool FC has unveiled German sportswear company Adidas as the club’s new kit supplier in a deal expected to bring in the region of £60 million a year.
Adidas will replace their current supplier, Nike, next season.
In negotiations for the right to supply the five-time champions of Europe, Adidas were up against Nike, and an offer from their fellow German outfitter, and arch rival, Puma. Adidas last kitted out the Reds between 2006 and 2012.
The contract is for a five-year term and the powerbrokers at Anfield believe that their jersey earnings will be in line with Arsenal, Manchester City, and Chelsea, who all earn £60-65 million from deals with Adidas, Puma, and Nike respectively.
The current deal with Nike had been worth a guaranteed £30 million a year, not taking into account shirt sales. With added commercial related assets, a performance related bonus, and 20% royalty payments on net sales of replica sportswear, that total was believed to be worth close to £60 million a season.
The business of jersey deals is an incredibly lucrative market. Previous deals have seen, Adidas pay Real Madrid, £816 million for 8 years, while Nike have paid PSG, and Chelsea, £888.94 million, and close to £900 million respectively.
The current record holder for a jersey deal, much to Liverpool’s chagrin, is held by their fiercest rivals, Manchester United who will receive £906 million (approximately $1.15 billion) over 10 years from Adidas.
Liverpool, who currently sit on top of the Premier League will be hoping to add to their 19 league titles and pull even with the red half of Manchester who hold the record of 20.
Contact the writer of this story, Nick Webster, at moc.l1732185360labto1732185360ofdlr1732185360owedi1732185360sni@o1732185360fni1732185360