Celtic, Nike Extend Sponsorship In Five-Year Deal Exceeding $35M

Sponsorship Extension Will Go Into Effect Summer 2010

Scottish Premier League club Celtic has extended its current five-year deal with Nike for another five years, effective in summer '10, according to the BBC. A club spokesperson said that the deal will be "in excess of the existing" US$35M agreement. Celtic CEO Peter Lawwell said it is "pleasing that Nike once again sees Celtic as one of the leading names in world football." Lawwell: "This extended relationship will allow us to further achieve our aspirations both at home and abroad" (BBC.co.uk, 3/12). Nike will "pay Celtic an annual fee plus royalties on Nike's sales of Celtic branded products, with additional bonus payments depending on football success" (THE SCOTSMAN, 3/13). In Glasgow, Ronnie Cully noted the deal is the "most lucrative in Scotland," and it "comes at a time when there is uncertainty over TV contracts and other important income streams as a result of the credit crunch." Celtic "recently returned half-yearly figures which showed that they continue to attract good levels of sponsorship," but Celtic Chair Dr. John Reid "underlined that they face a testing time as the financial meltdown bites into football" (Glasgow EVENING TIMES, 3/12).