According to reports in Goal, Real Madrid has reportedly inked a massive new €1.1 billion (£946m/$1.2bn/N450bn) sponsorship deal with German renowned brand company Adidas. The Spanish giants are set to continue their partnership with the company through 2028 as part of a new sponsorship agreement The German sportswear giant and the Spanish club have been working together since 1998, and Adidas confirmed that a new deal was in place on Wednesday, though the company did not offer up financial details.
The €1.1b figure is expected to be the guaranteed amount picked up by the club and is thought to be the most lucrative kit deal in football history. Real Madrid could pick up as much as €152m (£130m/$170m) per year when merchandising is factored in, a massive raise over the €52m on their current deal and well ahead of rivals Barcelona, who are reportedly earning around €85m per year from Nike.
“This agreement will help us to achieve our mission to be the best sports company in the world. It also underpins Adidas’ leadership in the football category,” company chief executive Kasper Rorsted said in a statement.
While the company did not release financial figures of the deal, they did dispute earlier reported figures that had the deal being worth as much as €1.8bn to the club. The new deal will run through 2028, with their previous deal set to expire in 2020. Adidas has found itself in a fight for the top clubs in Europe with both Nike and Puma in recent years.
The German company reported last week that sales across Europe had fallen by 3 per cent over the first quarter of the year and have seen U.S. competitor Nike move in on several clubs. Champions League finalists Liverpool are also reportedly in talks with Nike, potentially adding yet another top team to their brand.
Madrid are currently third in the La Liga standings and would have to win both of their closing matches and have cross-town rivals Atletico lose both to climb to second this season. The club were also dumped out of the Champions League by Ajax following three straight titles, falling at the round-of-16 stage. Los Blancos are widely rumoured to be in for a rebuild this summer, with the influx of money likely to help in that aim.