Reds seek global domination after bumper deal

LIVERPOOL announced a multi-year kit deal with Nike yesterday as the European champions seek to capitalise on their on-field success by boosting global commercial revenues.

The US sportswear giant will supply playing, training and travel wear to the Premier League leaders from the 2020/21 season after the club won a court battle with current suppliers New Balance in October.

The Reds look likely to be crowned champions of England for the first time in 30 years this season – they currently have a 13point lead at the top of the Premier League table.

According to a report in The Athletic in October, Liverpool hope to bank up to £70 million (RM370m) a year in total under the bumper deal.

But it differs from most major kit contracts signed by Europe’s elite clubs because it involves lower guaranteed fees and higher commissions.

Liverpool will reportedly earn a flat fee of

£30 million (RM159m) a year from Nike, which is below the £40 million (RM212m) New Balance are thought to pay per season and less than half of the £75 million (RM397m) deal Premier League’s rivals Manchester United signed with Adidas in 2014.

However, Liverpool will also earn royalties of 20% on all net sales of merchandise other than footwear, plus bonuses for winning the Champions League and Premier League.

New Balance had argued it had triggered a clause in the current deal that would allow it to maintain the contract for another five years if it matched the terms of any competitor’s offer.

But a judge ruled in favour of Liverpool’s case that New Balance could not match Nike’s enormous distribution network and promise to market the club via “superstar athletes and influencers”. – AFP