Liverpool Nike Deal Worth £15m Less Than Current New Balance Contract?
Shortly after it was leaked that Nike and Liverpool have agreed a kit deal, it also emerged that New Balance has started legal proceedings against Liverpool for what it believes is a breach of a matching clause agreement. Now British newspaper The Times has revealed more details of the Liverpool Nike kit deal.
Nike Kit Deal Would Guarantee Liverpool Only £30m Per Year
According to to High Court papers seen by The Times, Liverpool’s proposed new kit deal with Nike is only worth a guaranteed £30 million per year. This is much less than the present £45 million-a-year deal with New Balance. However, while this sounds really surprising at first glance, the Nike deal brings the club other advantages compared to New Balance's contract
On top of that agreement, "there is a commitment from the American sportswear manufacturers to pay the club a 20 per cent royalty on net sales of Liverpool Football Club products and promote the club through stars like tennis player Serena Williams and musician Drake."
The addition of royalties means Liverpool could well earn more than the extra £15m on offer from New Balance in shirt sales alone. Nike boast a much larger global distribution network than the rival firm, which means more Liverpool fans from around the world will be able to buy kits and other club merchandise. This is the main reason for Liverpool to switch suppliers.
Liverpool are confident the agreement they have struck offers them better long-term value than their current New Balance agreement.
Four your interest: Liverpool's basic deal is also far below the £50 million-plus-a-year deals negotiated by Premier League rivals Chelsea and Tottenham Hotspur with Nike.
New Balance think they can compete with the terms offered by Nike and will contest their case with the Premier League club during a three-day trial scheduled to start on October 18.
Do you think Nike will win the battle against New Balance? Comment below.
