Liverpool might sign a deal with Nike for their kits in the 2020-21 season. However, this deal can be blocked by their current sponsors, New Balance.
Liverpool is imminent to accepting a new kit deal with sportswear producers Nike. This could realize the history of the English football club. However, the proposed deal could be hindered by their prevailing kit suppliers New Balance. They have initiated judicial actions against the Champions of Europe. Liverpool’s £45m-a-year contract with New Balance terminates next summer. Hence, meetings have been held between the club and several other sportswear corporations for the past year.
Nike as sponsors of other clubs.
The club is perceived to have arrived at an arrangement with Nike. The deal would match the rival’s Premier League’s most lucrative kit deal. Manchester United has £75m-a-year partnership with Adidas. Manchester United signed a deal with Adidas in 2015. As things stand, they would stand to drop out on a vital sponsorship revenue through Adidas. This will happen if they are incapable to qualify for the Champions League this season.
United confirmed their prevailing kit contract with Adidas in 2015 for £750million after switching from Nike. Nike was the club’s sponsors for 13 years. The deal between United and Adidas is supreme in terms of being one of the club’s principal reservoirs of funds. In fact, there is a condition within Adidas’ deal with United. It states that if Ole Gunnar Solskjaer’s side slips to achieve Champions League football in two back-to-back years. Under the former three-year sequence of television rights, from 2015/16 to 2017/18, the club gained only £2.5million more.
Statements that matter.
A Liverpool spokesperson announced: “We can confirm that our kit supplier, New Balance, has commenced a legal dispute against the club. We will not be making any further comment during these legal proceedings.”In the statement to The Athletic, a New Balance spokesperson said: “In line with our current contract, we have matched the offer made by Nike.”
“As part of the contract renewal process, LFC has called into question elements of the agreement and as such we are asking the courts for clarity on this case. Both we and the club are keen to resolve any contractual challenges as quickly as possible and have agreed to an expedited process in the courts.”
Liverpool has conquered the Champions League in their last campaign and mounting a credible Premier League title challenge. They are arguably in their most potent marketing position ever. Jurgen Klopp’s side has commenced the new season well. They have won all six of their starting league matches to install a five-point lead at the top of the table. But in a narrative to The Athletic, New Balance authenticated that they had met an offer by Nike, possibly triggering a ‘matching clause’ in their current agreement.