Liverpool is expected to enter into contract extension talks with apparel behemoth Nike. After a legal struggle at the High Court in London, the Reds successfully terminated their prior kit arrangement with New Balance in 2019.
Nike was chosen as the preferred partner because of their capacity to produce on a large scale and their willingness to share 20% of the proceeds from Liverpool and Nike-branded items. The agreement, which is now set to last until the end of the 2024/25 season, has proven to be extremely beneficial to both parties.
Given the business benefits to the club, both Liverpool and Nike are eager to extend the agreement indefinitely. Not only has the relationship increased Liverpool’s commercial revenue, but it has also opened up new markets through projects like the LeBron x Liverpool collection and the partnership with Nike-owned Converse.
The real value of the collaboration is expected to be exposed in the future financial accounts, with yearly sums of $102 million (£80 million) possible.
Nike has celebrity clients such as rapper Drake, tennis player Serena Williams, and basketball legend LeBron James, who is also a partner of Liverpool’s owners, Fenway Sports Group (FSG). FSG, along with Nike and RedBird Capital, has invested in James’ SpringHill Entertainment Company, cementing the companies’ relationship even further.
Liverpool’s collaboration with Nike, according to Mike Cox, vice president of merchandising, has been extremely fruitful. The partnership’s success has been driven by record-breaking kit sales and the opportunity to reach a global fan base via Nike’s online and physical presence.
“The relationship with Nike is a really good one,” he told the Liverpool ECHO earlier this year. “As time has passed, we’ve grown accustomed to working together and gained a better understanding of them as a brand and how they operate.” Similarly, they have learned more about us as a club, how we function, and what the opportunity entails.
“Our previous launches have been extremely successful.” We’ve had record kit debuts for home and away, as well as some of the third kits that we’ve introduced with them recently. Commercially, it has been extremely successful. “I believe there is a lot of opportunity going forward.”
Liverpool and Nike are very likely to extend their collaboration beyond 2025. The only other sportswear brand that may come close to filling Nike’s shoes is Adidas, but considering Liverpool’s longstanding association with Nike, a split appears improbable.
The value of the next deal, though, will be determined by Liverpool’s ability to remain competitive at the top level and attract players with international appeal. The club’s financial performance is inextricably connected to its competitive success.
