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Liverpool Set to Earn Over £60 Million Per Year From Adidas Kit Deal: A Record For The Club

23 October, 2024 - 4:12AM
Liverpool Set to Earn Over £60 Million Per Year From Adidas Kit Deal: A Record For The Club
Credit: designfootball.com

Liverpool expect to make more than £60m a year from a new kit deal with Adidas that will come into effect from the start of the 2025-26 season. The German sportswear company will become Liverpool’s kit supplier when Nike’s five-year contract expires. In a tender process for a five‑year contract Adidas, which last supplied the Anfield club’s kit between 2006 and 2012, won against Nike and Puma.

The club believe it will bring their kit earnings into line with Arsenal, Manchester City and Chelsea, who all receive £60m-£65m from deals with Adidas, Puma and Nike respectively. Liverpool receive £30m a year from Nike as a guaranteed base figure. With commercial tie-ins, ­performance‑related bonuses and 20% royalty payments on net sales of replica sportswear, promoted by people such as the basketball star and Liverpool shareholder ­LeBron James, the total can be closer to £60m a season.

The Premier League record is the £90m a season received by ­Manchester United from Adidas.

Liverpool are to reunite with Adidas from next season, and The deal is predicted to earn the club more than £60 million a year. This is to be the last season with Nike for Liverpool, with the German manufacturer to take over duties as the club’s official kit supplier from 2025/26 onwards. It will be the third time the two parties have collaborated, having previously done so from 1985 to 1996 and then from 2006 to 2012. Adidas won the tender process for the next five-year kit cycle ahead of Nike and Puma, with the Guardian now reporting that the deal is expected to earn more than £60 million a year.

The report states that Liverpool “believe it will bring their kit earnings into line with Arsenal, Manchester City and Chelsea,” who earn in the region of £60m-65m from their respective deals. The Times‘ Paul Joyce adds that “placing an exact figure on the deal is difficult because of the incentivised nature of the contract,” while includes sales and on-field performances. When Liverpool agreed a deal for Nike to take over from New Balance as their kit supplier in 2020, the club shook hands on a lower base rate than their previous terms. They currently earn a minimum of £30 million a season with the American manufacturers, but 20 percent royalty payments on net sales help take the deal upwards of £60 million. UEFA’s ‘European Club Finance and Investment Landscape’ report revealed that Liverpool earned £113.1 million from kit and merchandise sales in 2022/23, which was more than any other Premier League club.

Liverpool’s association with Adidas will mark a reunion after a 13-year separation, ensuring the return of a synonymous partnership that is already leaving fans excited over the possibilities.

Liverpool are set to return to wearing Adidas kits next season after agreeing a deal worth in excess of £60m-a-year with the German sports manufacturing giants. The Reds will wear Adidas brands as part of a multi-year deal - which will be a record for the club - as their Nike contract comes to an end this summer. Liverpool have not worn Adidas kits for 13 years after stints with Warrior, New Balance and Nike. The length of the deal is not known but it is believed to be long term. Both Nike and Puma had been keen to land deals with the club. But it is Adidas, who have landed another major Premier League football brand. Manchester United are believed to have extended their deal with the sports brand giant last year for another decade in a contract worth £900m. Their new deal starts next year with a £15m increase on their previous contract, although they do have financial penalties if they don’t qualify for the Champions League. It is not known if such clauses are included in Liverpool’s deal. Liverpool’s current deal with Nike was worth around £30m-a-year as a base figure but with certain percentages included on sales which routinely took it to around £50m. The Reds moved to the US sports giant in 2020 - the summer they won the Premier League title - after the end of their New Balance contract.

Adidas currently make kits for United, Arsenal, Fulham, Nottingham Forest, Aston Villa and Newcastle United. Nike’s other Premier League clubs are Chelsea, Tottenham Hotspur and Brighton and Hove Albion. The loss of Liverpool - given its worldwide brand - will be a significant blow for Nike and a coup for Adidas, who are pushing for big name signings in the wake of losing the German national team kits to the American brand.

Adidas will be Liverpool's new kit suppliers from the 2025/26 season as the German sports company replace Nike. According to The Guardian, the Reds will make more than £60million a year from the new kit deal, which will come into effect from next season. Nike's five-year contract with Liverpool expires after this campaign and Adidas won a tender process for a five-year contract against Nike and Puma. The decision by Liverpool's owners Fenway Sports Group and principal owner John Henry is expected to bring the Merseyside club's kit earnings into line with Arsenal, Manchester City and Chelsea, who all receive about £60million-£65million from deals with Adidas, Puma and Nike respectively, The Guardian reports. If Liverpool do earn £65million a year for five years from their deal with Adidas, that means the deal is worth £325million. It will be a timely financial boost for Liverpool as clubs continue to find ways to generate money amid stricter profit and sustainability rules. Arsenal's kit contract with Adidas runs until 2030 and is said to be worth around £600million. The kit makers reunited with Arsenal in 2019 after 25 years away from their previous agreement, with the Gunners and Adidas extending their agreement to 2030 in 2022. It was reported at the time that the new deal was worth roughly £600million, increasing from £60million per year up to £75million per year. It comes out as worth an extra £120million for the Gunners over the eight-year contract.

Chelsea, meanwhile, signed their current kit deal with Nike in 2016. It's believed to be worth around £900million and will see Nike supply the Blues' kits until 2032.

The German sportswear brand has previously kitted out the Anfield club across two spells, originally between 1985 and 1996 and more recently from 2006 to 2012. Arne Slot’s side will again wear the three-striped attire at the beginning of the 2025/26 campaign after winning the race to replace existing manufacturers Nike. Fellow rivals Puma were also involved in the tender process over a five-year contract, which is expected to generate upward of £60 million per year for the Reds. Liverpool’s revenues from their arrangement with Nike stand at a basic £30M with that figure raised by a series of commercial and performance-related bonus. But Anfield chiefs are understood to have agreed to Adidas’ return due to their ability to guarantee earnings in line with several of their Premier League peers. Arsenal, Manchester City and Chelsea earn between £60M and 65M from Adidas, Puma and Nike while Manchester United command a league record of £90M.

The German sportswear company had existing kit deals with Arsenal, Manchester United, Nottingham Forest, Fulham and Leicester City before adding Newcastle United and Aston Villa to their catalogue last summer. It’s understood the Magpies’ multi-year deal is worth £30million per season while Villa receive £17m. But as per FC Business Magazine, Liverpool are likely to earn more than Newcastle and Villa combined with the figure closer to the £90m Man United bank per season, which is a Premier League record. Arsenal’s agreement is said to be worth £60m. The Reds are said to net around £75m per season from their current Nike deal, which has been in place since 2020. Anfield chief executive Billy Hogan was tight-lipped when speaking to FC Business Magazine but admitted the Merseyside club need to continue to increase revenue. “Our partnerships have to be successful but also commercially viable for our partners,” said Hogan. It is about building out that long-term strategy. We are very conscious about making the right decisions for the club moving forward and continuing to grow revenues.” Newcastle were thrilled to welcome Adidas back as the their official kit partner having previously enjoyed a booming partnership between 1995 and 2010. As well as a huge uplift on the previous £5m Castore deal, the Magpies have been able its retail operations in-house. “If we talk about the different elements of the commercial horizon, then we’ve got the retail element and they’re going to deliver us incredible product which, at times, will hark back to the heritage and history of the past, but also be forward-looking,” Newcastle chief commercial officer Peter Silverstone said earlier this year. “So, they’ll provide us with great product to sell. That goes without saying, and having seen the designs for this year and next year, and ideas for the future, I’m pretty sure our fans will buy in to that and want to have that product. Adidas are also a sponsor, so they want our marketing platform and the assets and imagery that we provide – the player imagery, the player marketing, the media exposure around the stadium and different assets and rights. Then they will also provide sponsorship to us. They will market our brand globally and in targeted territories, in a unique way. Adidas are also the sponsor and kit partner of other top clubs – Arsenal, Manchester United, Real Madrid, Bayern Munich, Juventus – and we find ourselves with the same marketing partnership and capacity as they do. Our ambition is to have the great product and great platform, and ultimately have as many fans to sell our Adidas shirts to. Of those clubs I’ve just said, we don’t sell as many shirts at the moment. But our goal and ambition is to catch them up.”

Liverpool Set to Earn Over £60 Million Per Year From Adidas Kit Deal: A Record For The Club
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Makoto Yamada
Makoto Yamada

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