Liverpool reason for Adidas switch clear with huge sum on offer but Nike era could end with bang
The ECHO's Liverpool FC correspondent Paul Gorst takes a closer look at what the new agreement with Adidas means for the club for the long term
There are a number of parallels between Liverpool's new agreement with Adidas and the terms that were penned with current kit manufacturers Nike, back in 2020. Back then, Jurgen Klopp's team were the dominant force in English football, closing in on a Premier League title and looked to have a blindingly bright future at the forefront of the European game.
Fast forward five years and the very same could be said of Arne Slot's 2025 vintage as they hurtle towards a second league crown in five years while continuing their push for in Europe. The not-so-insignificant matter of a Wembley showdown with Newcastle United to retain their Carabao Cup trophy also offers the prospect of a domestic double and even a remarkable treble.
So Liverpool's announcement on Monday morning that they are moving from arguably the world's biggest sports manufacturers in Nike to the only company who can properly rival them in Adidas is just further evidence of how the club continues to grow in the post-Klopp era.
READ MORE: 'I lied' - Luis Enrique makes injury admission as PSG name squad for Liverpool tripREAD MORE: Liverpool Adidas kits predicted after huge announcement madeLiverpool fought hard to remove themselves from the agreement with previous suppliers New Balance in order to force through a future with Nike and the stand-off eventually ended in London's High Court.
Boston-based New Balance paid Liverpool £45m-a-year to produce football kits that had become wildly successful both creatively and commercially during that period. Succeeding their off-shoot company Warrior in 2015, after a string of curious designs during a largely difficult period for the club on the pitch, the Americans had been the creators of the club's two biggest-selling strips in Anfield history up to 2020.
Liverpool, at the time, were looking for something closer to the £75m Manchester United earned at the time from Adidas and while the Nike deal was 'only' worth a guaranteed £30m a year, the Oregon giants also agreed to pay a 20% royalty on net sales of products, while also promoting the club through stars like tennis legend Serena Williams and rap star Drake.
The appeal of basketball icon LeBron James was also a deciding factor in the High Court judgement, with it being eventually ruled that New Balance simply didn't have the star power to match the stable on offer from Nike, meaning that NB's 'matching clause' that they felt allowed them to continue the partnership was essentially ineffective, despite them paying £15m as a guarantee.
It was a difficult judgement given the difficulties of discerning the financial impact that came from the use of stars like seven-time Wimbledon winner Williams and Canadian rapper Drake, who was the second-most streamed artist on Spotify in 2020. There can be no doubt that James, of the Los Angeles Lakers, put in the hard yards when it came to promoting the club most, which he has a vested interest in given his links to owners Fenway Sports Group.
The ability to create sporting history like James becoming the NBA's all-time leading scorer in the process with his 38,388th point in 2023 just days before he was involved in a brand new collaboration with the Reds, was one of the key selling points Liverpool had on their hands when it came to James, who is widely regarded as the greatest basketballer of his generation
Being able to utilise the worldwide star power of an athlete of his magnitude was one of the major reasons Liverpool were so keen to strike up the partnership with the current kit suppliers. With well over 200m followers across Twitter and Instagram alone, James - as one of the most recognisable sportsmen on the planet - can open doors in the lucrative market of the United States.
That the LA Lakers star was also a former minority shareholder at Anfield, before converting that into a one percent stake of the FSG empire following RedBird Capital's purchase of 11% was also a significant element to what has been a thriving, almost unique partnership between club, athlete and sports brand.
What Adidas are unable to supply in terms of calibre of Stateside athlete or musician, however, they will be able to make up for in lump sums and the Reds are earning at least double the £30m-a-year that was banked through the association with Nike.
Reporting an exact figure on the partnership is difficult due to the incentivised nature of the contract, which will be shaped by shirt sales and the team's fortunes on the pitch, but it is fair to suggest the bottom line coming in will be at somewhere between £60m and £70m. A five-year deal at those numbers means the club will pocket over £300m from their Adidas contract.
At a time when the new-and-financially-improved Champions League will return to the Anfield coffers in time for next year's accounts, alongside further growth in areas such as commercial revenue, TV deals and the potential for windfalls that come with on-field success of the team itself, the club appears to be in a healthy place for the future. Throw in a money-spinning pre-season tour of Japan and Hong Kong that is understood to be close to official confirmation and it is clear Liverpool have a lot to look forward to in the Slot era.
Bjorn Gulden, Adidas CEO, said: “We are extremely excited that adidas and Liverpool Football Club are teaming up once again. The club is one of the biggest and most iconic names in world football with a huge fan base.
“The jerseys worn during previous partnerships are some of the greatest ever created. We are honored to once again provide the players with cutting-edge technology to perform at the highest level and are looking forward to creating more classics for the fans.”
The official changeover will take place on August 1 and supporters will now wait with baited breath for what the German giant has in store for the club ahead of the start of what will be the third association between the pair in Liverpool's history.
Crucially, the dates of the agreement means Liverpool will complete their season with Nike swooshes attached to their strips and the tradition of unveiling next season's jersey on the final home game of the campaign won't be carrying on this time out, particularly given the current suppliers will be desperate to have their brand associated with the images of a potential title procession in the coming months.
The Nike era is coming to a close at Anfield but not before perhaps their most defining Liverpool FC images yet.