Real Madrid agree to a stunning 10-year deal with Adidas
By Ben Sundock
Real Madrid president Florentino Perez has to be a happy man after his club inked a 10-year extension with Adidas to be the official merchandise partner.
You may need to read the following sentence twice. Real Madrid will receive €1.25 billion from the kit manufacturer over the next 10-years so they can make the kits and all other official merchandise.
To break that down for you, the club will earn €110 million a year. When seeing this, my first thought was, why is this income not being turned around and spent in the transfer market?
What’s even more incredible about this deal is that Real could receive up to €150 million a year if the club performs to a high level. In essence, making the Champions League final and winning the La Liga title.
To put how unheard of this deal is, here is what Marca’s Carlos Carpio found when covering the news:
“To put this in perspective, and compare it with Nike in the NBA, who kit out all the 21 teams for 1,000m dollars over eight years. In other words 125m dollars, or 110m euros a season for 21 teams which is the same that Adidas will pay for just Real Madrid.”
This deal being finalized now is vital for Perez as he is trying to round up the necessary funds to overhaul the Santiago Bernabéu Stadium. The proposed plan is an extensive one that will see the outside of the stadium completely changed, a retractable roof added, and much more.
As of right now, the project is estimated to cost somewhere near €600 million.
Real Madrid has been partnered with the German-based company since 1998 and for a stretch from 1981 to 1986.
This deal is nearly double that of the previous contract that the two sides had. Under the current terms, Real Madrid receives €52 million anually. This is great news for the club and the fans who should (hopefully) see some more big transfers made in the coming windows.
Thanks, Adidas!