Liverpool's announcement on Tuesday of its kit deal with Nike is the club's "first big power play" of '20 and confirmed the "worst kept secret" in soccer. Liverpool's deal with Nike is worth around $39.4M-a-year, guaranteed, some $19.7M "less than the bottom line earned from their wildly successful agreement" with New Balance. Liverpool "fought tooth and nail" to partner with Nike, winning a High Court case against NB in October (LIVERPOOL ECHO, 1/7). According to the court judgment, Nike's offer to Liverpool includes 5% of net sales of licensed footwear. The brand also promised to market Liverpool products with advertising featuring at least three "superstar athletes and influencers of the caliber of LeBron James, Serena Williams [and] Drake." Terms of the deal were not disclosed. A Nike spokesperson declined to comment on "whether they differed from terms described in the court case" (WALL STREET JOURNAL, 1/7).
Liverpool’s new shirt "is expected to become the biggest selling and most lucrative in the world" thanks to the Nike deal, which could eventually be worth more than $98.4M a year. Clubs "traditionally receive" 7.5% commission from the sale of a shirt and other merchandise, while the deal with Nike will land Liverpool 20% (London TELEGRAPH, 1/7).
