Liverpool made a gamble in the last year. The Reds decided not to renew with New Balance and instead signed a record breaking kit deal with sportswear giants Nike. The move was somewhat risky given that it was worth less in guaranteed income. However, Liverpool appear to have been vindicated by record kit sales for all the new Nike kits.
The Nike deal saga
Liverpool switching to Nike was an open secret for some time. Leaving New Balance proved more difficult than it first seemed.
The incumbent kit manufacturers contested in court that they had the right to match any offer that was presented to the club.
New Balance were paying the Reds around £45m a year whilst Nike had offered £30m a year, according to the Liverpool ECHO.
However, Nike were offering more generous royalty terms, offering the Reds 20% of each shirt sold. Combined with the giants’ unrivalled distribution ability, this made the offer worth nearly double the New Balance terms.
The case was settled in Liverpool and Nike’s favour and the rest is history.
Liverpool post record kit sales
Liverpool’s official site this week published that the club had achieved record kit sales on all three Nike kits.
The club stated that numbers were up significantly for the home and away kit whilst the away kit has achieved record numbers.
The Liverpool ECHO has claimed that home kit sales are up 15% and away kit sales are up 30%.
What RTK has to say
The vindicated Reds.
Despite the world being skint as a result of the global health crisis, sales are still up on the new kit.
We can take a lot of positives from the fact that even in the face of an impending global recession Nike have still managed to help us achieve record sales.
This kind of commercial growth is critical to the club’s success on the pitch, long may it continue.