Adidas acknowledged its upcoming kit deal with Liverpool for the first time using the strapline “the worst kept secret in football”. That’s not too far wrong, with the switch from Nike having been common knowledge for some time, but some interesting details about the finances are now emerging for the first time.
Liverpool will join a plethora of Premier League clubs already partnered with Adidas. The German manufacturer has supplied the most clubs in the division in eight of the past 10 seasons, and currently holds the contract with the likes of Arsenal and Manchester United.
Neither of those deals have been particuularly trophy-laden in recent times, but Arne Slot will hope to deliver Adidas some on-pitch success. Should he do so, he will unlock some incentivized bonuses within the kit contract.
The basic deal is worth at least $77.5m (£60m) per year, roughly doubling the basic figure Liverpool earned from Nike. However, the Reds negotiated a greater-than-average percentage of sales revenue in their previous arrangement with the American firm, which has resulted in a lucrative arrangement.
Even so, Liverpool will clearly hope to do even better financially out of the Adidas deal. With the deal set to run for five years, the Reds will bank a guaranteed sum of close to $400m over the course of the contract, before factoring in on-and-off-pitch bonuses.
Details over the size of Liverpool’s share of kit sales have not been made public. If the Reds have maintained anything close to the 20 per cent cut they negotiated with Nike, they have done very well indeed.
But in terms of the basic figure, Liverpool is actually earning a little less than some of it league rivals. Arsenal is believed to net around $97m per year from its Adidas deal, having received an uplift from $77.5m when it renewed two years early in 2022.
(Image: David Price/Arsenal FC via Getty Images)
As for Manchester United, it will be relieved to have removed a 30 per cent reduction clause that was previously set to activate after two seasons without Champions League football. But it still faces a 10 per cent penalty from Adidas every time it misses out on playing at Europe’s top table.
Nevertheless, its basic deal is worth a bumper $116m (£90m) per year. The Red Devils locked into a 10-year deal in 2023.
Having made a shorter-term commitment to Adidas, perhaps Liverpool should not be surprised to be receiving a slightly lower basic rate. But the highly-accomplished commercial team is sure to have negotiated significant bonuses — and the way things are going on the pitch, there’s every chance that the deal could end up rivalling those of Arsenal and Manchester United in practice.
Liverpool has tended to shop around with kit manufacturers in recent times. Its partnership with Adidas comes after previous deals with the sportswear giant from 1985-1996, and again from 2006-2012.
Since last parting ways, Liverpool has partnered with Warrior (which then rebranded to New Balance) and then Nike. Other previous kit manufacturers include Umbro and Reebok.
