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Marketing and Sponsorship

Thiago Silva's Switch From AC Milan To PSG Will Affect His Contract With Nike

When defender Thiago Silva switched from eight-time European champion AC Milan to Paris St. Germain he "diminished the value of the sponsorship" he receives from Nike, according to Carvalho & Winckler of IG.com.br. AC Milan is considered by Nike to be a "category 1" club, while PSG is one level under. The switch will result in a €200,000 ($249,340) difference in Nike's contract with the Brazilian. PSG is actually sponsored by Nike, while AC Milan is sponsored by adidas. But in Nike's opinion, the Italian club "has larger visibility" and the player "will get less exposure in Paris than he did in Milan." Fortunately for Silva, PSG "accepted to bear" the €200,000 ($249,000) annual difference in the player's deal with Nike in the form of a bonus on top of the €780,000 ($972,400) monthly salary he will receive. In addition, Silva's contract is filled with possible bonuses if the team performs well this season. If the club wins the Ligue 1, he will receive an additional €257,000 ($320,400). The Coupe de France would result in a bonus of €161,000 ($200,700). If the club can manage a Champions League title he would receive €650,000 ($810,350). All the values are net of taxes (IG.com.br, 8/20).

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