Real Madrid Agrees Record-Breaking Adidas Kit Deal

According to reports in Spain today, Real Madrid and Adidas have finally come to an agreement regarding an extension to their kit supplier contract, which will see it become the most valuable in football.

Real Madrid is set to earn a base sum of €110 per season from 2020 to 2030 reportedly, putting it ahead of Manchester United and Barcelona - at least according to Marca who value the latter's deal at just €83 million compared to the €105 - €145 million that are usually reported.

To add some perspective to these numbers, the new deal more than doubles the previous one, closed in 2012, which is reported to be worth €52 per season in total between fixed and variables. Looking at another popular sport, the whole of the NBA gets just $125 million per season from Nike, which equals around €110 million at the current exchange rates.

Added to the guaranteed €1.1 billion Madrid will receive from Adidas during those ten years, the club will continue to benefit from merchandise sales - this will likely be similar to 22.5% of all merchandise sale that were part of a contract leaked by Der Spiegel back in 2016. A contract that was in the end never signed and made official.

Both Nike and Under Armour were rumored to be interested in taking over from Adidas, but nothing really materialized and it looks like the German brand was never really in danger of losing what likely is its most important asset in terms of clubs it sponsors.

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