Since November 1 2019, the date when New Balance's appeal against the High Court's kit case verdict has been rejected, it is official that Liverpool will wear Nike kits from next season. The big news overshadowed other aspects Nike and Liverpool agreed in their partnership. Today we want to take a look at what the Nike deal will bring Liverpool FC.
LFC Nike Kit Deal - All Important Details Revealed
Nike will pay Liverpool £30 million per season plus 20% of net sales of all licensed products except footwear and 5% of net sales of licensed footwear. This means that Liverpool exit an agreement with New Balance that offered the club a guaranteed payment of £15 million pounds more per season than that offered by Nike. But why?
First, and only logically, Nike will produce/sell and market LFC, in a manner that is consistent with Nike’s other top tier UK football clubs e.g. Tottenham, Chelsea (subject to similar performance). In addition to that, Nike will also give the club several extra premium features.
Nike's Special Feature / Premium Offering For Liverpool FC
- Produce Licensed products under at least 2 global Nike-controlled brands (e.g. Nike and Converse)
- Produce Licensed Products in collaboration with third party brand(s), including in association with a major US sports team located in a major US market;
- Market LFC and/or Licensed Products through marketing initiatives featuring not less than three (3) non-football global superstar athletes and influencers of the calibre of Lebron James, Serena Williams, Drake, etc.…….;
Sell Licensed Products throughout the Term (including for the avoidance of doubt, Licensed Products produced for the start of Season 2020/21
(i) in not less than 6,000 stores worldwide, 500 of which shall be Nike owned or controlled with the potential for sale of Licensed Product in as many as 13,000 stores worldwide
(ii) within not less than 51 countries online though Nike.com. Nike warrants that, as of the date of this contract, it can distribute Licensed Product in at least 6,000 stores worldwide, 500 of which are Nike owned or controlled.
It also has to be noted that the Nike offer exceeded the industry standard on net sales remission
All the agreements above and Nike's much better distribution of LFC products in contrast to New Balance are the reason why New Balance lost the battle against Liverpool / Nike.
Do you look forward to the special collaboration collections Nike will release for Liverpool? Share your thoughts in the comments below and find out more about why New Balance lost the battle against Liverpool FC on lawinsport.com.