Liverpool are in “ongoing” talks over a possible extension of their kit deal with Nike, after it was revealed that the club earned £113 million last season alone.
The Reds are in the fourth of five seasons in their current agreement with Nike, who took over as kit manufacturer in 2020.
During negotiations ahead of the switch from New Balance, Liverpool agreed a lower base rate of £30 million per season with Nike, but with significant royalty payments.
It is proving to be a lucrative partnership, with UEFA’s ‘European Club Finance and Investment Landscape’ report revealing that Liverpool earned £113.1 million from kit and merchandise sales in 2022/23.
That is more than any other Premier League club and fourth-most across Europe – behind only Barcelona (£153.25m), Real Madrid (£132.7m) and Bayern Munich (£125.9m).
(Graphic via UEFA)
There is no surprise, then, that Liverpool’s commercial director Ben Latty told The Athletic this week that there are “ongoing conversations” over a renewed deal.
“We are having those conversations with [sponsor] AXA and hopefully we can get to a good outcome,” says Latty.
“As for Nike, given the sheer volume of kit we produce around the world and the distribution related to a deal like that, there is a long path leading to those types of deals.
“We are having ongoing conversations with them. I can’t break any confidentiality in terms of where they are heading.”
It remains to be seen whether Liverpool would entertain talks with other suppliers such as Adidas, though it is likely that there would be interest in taking on the rights.
But there could be an opportunity to further restructure the Nike deal in Liverpool’s favour, with the current focus on royalties clearly paying off.
The uncertainty over the club’s future with the resignation of Jurgen Klopp could cloud things, of course, with there less of a guarantee of on-field success.
However, Liverpool are cemented as a global brand regardless, and that is only growing as they explore more markets around the world.
Elsewhere in The Athletic’s report, it is explained that recent sponsorship deals with Google Pixel, Peloton, UPS and Orion Innovation have brought in more than £45 million.
Recent pre-season tours have seen the Reds visit the Far East, with stops in Thailand and Singapore, while they will return to the United States this summer for the first time since 2019.
There is an expectation that the first team will engage in more commercial activity during pre-season after Klopp’s exit, with the manager’s influence having vetoed certain duties.
Liverpool and Nike will likely both hope that continues to come with the iconic swoosh on their kits.
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