LIVERPOOL SET FOR ADIDAS RETURN

Liverpool is set to reunite with Adidas from next season as their partnership with Nike comes to a close. The move, though not officially confirmed, signals the end of a five-year relationship with the American sportswear giant, with Liverpool expecting to receive over $74 million (£60m/€72m) in guaranteed revenue from the new deal.

Since last year, it has been widely known that Liverpool intended to part ways with Nike at the end of the 2024/25 season. While Nike’s deal was reportedly worth $37 million (£30m/€35m) annually, it also included a 20% share of sales from Liverpool-branded merchandise, potentially bringing in an estimated $87 million (£70m/€84m). Despite this, Adidas has successfully won the bid for the Reds’ next kit deal, and the new partnership is seen as not just financially beneficial but also a strategic move to boost global merchandise sales.

The competition between sportswear giants Nike and Puma to extend their contracts with Liverpool was fierce, but only Adidas had the financial and brand power to land the deal. Liverpool’s willingness to take New Balance to court in 2019 over their contract is a clear indication of the club’s aggressive commercial strategy, ensuring that their kit partnership terms work in their favor.

With Nike, Liverpool benefited from collaborations involving high-profile celebrities such as LeBron James and Drake. The club also introduced merchandise in partnership with Nike’s sister brand, Converse, aiming to attract casual supporters and fans outside of football, with notable success. These partnerships highlighted Liverpool’s desire to connect with wider audiences, something the club intends to continue under Adidas.

In a 2023 interview, former senior vice president of merchandising Mike Cox explained Liverpool’s strategy behind these collaborations, focusing on targeting new fanbases and engaging people beyond the sport itself. This forward-thinking approach seems to be a key factor in Liverpool’s decision to transition from Nike to Adidas, reflecting a shift in the club’s commercial strategy.

While Nike and Adidas have both seen financial ups and downs, the commercial trajectory of the two companies does not appear to have significantly influenced Liverpool’s decision. Nike’s recent stock drop by nearly 33% contrasts with Adidas’s rise, which has seen its stock price increase by over 50%. However, the historical connection between Liverpool and Adidas, which dates back to the club’s most iconic kits of the 1980s and 1990s, plays a pivotal role in the club’s decision to re-establish this partnership.

Adidas is well-positioned to support Liverpool’s growing global presence, especially in markets like North America. The company’s strong ties to UK football culture and its association with Liverpool’s past successes make it an ideal partner to help expand the Reds’ reach beyond the UK, cultivating fan loyalty and boosting merchandise sales worldwide.

The partnership will likely be shorter than those of other clubs, giving Liverpool flexibility to adjust to future market trends. This gives the Reds an opportunity to explore new opportunities should market conditions change. As the new Adidas deal takes shape, Liverpool fans can look forward to a refreshed merchandise offering, and the club is poised to capitalize on the commercial opportunities this partnership will bring.