Liverpool’s Nike deal could be worth a whopping £100million per season
Liverpool could earn as much as £100million per season from the Nike kit deal, according to a sports marketing expert. (h/t Evening Standard)
The Reds signed a multi-million dollar agreement with the sporting apparel giants to sponsor their kits from the 2020-21 season.
The kit deal, which comes into effect from June 1 this year, is said to be worth around £30million-a-year, guaranteed. This is £15million less than the offer made by current manufacturers New Balance.
The key to Nike beating New Balance is them offering Liverpool 20% royalties on the sales of merchandise. This should see the revenue increase dramatically. (h/t Liverpool Echo)
This coupled with Nike’s market share will ensure income and global reach is a win-win for the Merseyside club as it is expected to generate upwards of £80million a year.
Sports marketing expert Alan Seymour, however, believes that the figures may even be on the lower side and has credited Liverpool owners Fenway Sports Group for securing the lucrative deal. (h/t Evening Standard)
“We’re led to believe that the commission is going to be up to about 20 per cent so, in terms of actual value, when you equate and add in the way it’s been structured… when you start to add all these things together then we’re talking, I would suggest, in excess of £80m and upwards to the £100m value.”
‘The deal that Liverpool have done with Nike is a brilliant starting point, it will evolve from there and there will be lots of things that happen alongside it.
Seymour believes that Liverpool will further benefit from being associated with celebrities under the Nike banner. Liverpool’s deal with Nike is likely to surpass Manchester United’s current record of £75m-per-year with Adidas.
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From being dropped by Adidas in 2012 to being courted by Nike in 2020, The Reds have come a long way in their clout to attract the best. Liverpool are currently on top of the Premier League. Success both on and off the pitch doesn’t look like it’s going to stop anytime soon.