Real Madrid have announced that they're about to sign the most valuable football sponsorship deal in the world this week. The Champions League holders will put pen to paper on their new 10-year extension with adidas which will earn them €110m per year.
The deal guarantees that amount each year, but could yet be further boosted depending on merchandising results with the potential to reach up to €150m per year according to Marca. It's also been reported that the club will earn 22.5% of all merchandise sales. Big money, and arguably the most positive news from the club so far this season as on-pitch performances currently sit below par.
Throw in the €70m the club receive from main sponsor Fly Emirates compared to the €55m received by Barcelona and Man United from their respective deals with Rakuten and Chevrolet and it's clear to see that Real Madrid are still the big dog in the marketing game. Those three consecutive Champions League victories proving extremely valuable.
To put that in perspective, adidas are paying the same amount per season to sponsor Real Madrid as Nike pay the NBA to sponsor the league and every club.
Real Madrid have been partnered up with adidas since 1998, and as their relationship enters a second decade, both parties have ensured it will also reach a third. When the new deal is made official, it will mean that Real Madrid become the top earning club from a sportswear deal, ahead of Manchester United who rake in £75m (approx €96m) a year for ten years (also from adidas), and Barcelona who signed a new deal with Nike in 2016 worth a reported €105m over ten years.
Both Nike and Under Armour were rumoured to be sniffing around Los Blancos but adidas dropping €1.1 billion on the boardroom table probably did the trick. The club and the brand have worked together on numerous projects in their time together, so this relationship is more than just about the highest bidder. The Parely For The Oceans initiative and the club's icon range are just two examples of adidas keeping the club relevant in culture and lifestyle circles.
