The financial dynamics behind football clubs' kit sales have been a subject of interest among fans and experts. Dr Peter Rohlmann, a German sports marketing expert, sheds light on the breakdown of earnings from each kit sold for the Mail On Sunday.
The Cost of a Football Kit
The production cost of a typical £80 shirt is just £8, covering materials, labor, and transportation, with manufacturing usually taking place in Asia.
Most big clubs earn much more from the deal than from direct sales
When a shirt is sold, the retailer, often the club itself, pockets £26.40, while the manufacturing brand receives £23.47. VAT accounts for £13.33, and the club earns a £4.80 license fee per shirt. Additionally, £2.40 per shirt is allocated for marketing purposes, and £1.60 goes towards local distribution.
The graphic also illustrates that it is very favorable for the club to sell the kit directly - if they sell it directly, they are the retailer, and grab a lot more money than if you buy the kit via the kit maker or an independent retailer.
It's important to note that these figures are illustrative and can vary depending on the contracts between clubs and their kit providers, who often make additional annual payments to the clubs.
Production cost of a typical £80 shirt is just £8
The responsibility for setting shirt prices lies with the kit providers, such as Adidas, Nike, and Puma, according to the clubs contacted by the Mail On Sunday. Replica shirt prices have experienced an increase of £5 for the 2023-2024 season at various Premier League clubs, including Manchester City, Liverpool, Aston Villa, Newcastle, Everton, Crystal Palace, and Wolves.
Biggest Football Kit Manufacturer Deals - July 2023
Of course, clubs do not only earn from sales. The biggest kit deals bring in as much as 100 million Euros per year.
Liverpool lack in the eight biggest deals in Europe - the deal just has nets a base sum of $37m per year, but there are some favorable royalties that are much higher than usual. Royalties of 20% on sales of merchandise and the firm's superior global reach have led to suggestions Liverpool could actually make upwards of £80m a year.
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