‘Celtic to land significant windfall’ after matching Newcastle deal – Borson
Celtic could make a significant profit from their new partnership with Adidas after they have likely agreed similar terms to Newcastle United’s deal.
That is the view of finance expert Stefan Borson, who exclusively told Football Insider the Scottish giants will likely purchase merchandise from the German manufacturer before adding their own margin on top of the wholesale price.
Adidas and Celtic’s current deal is due to expire in 2025, having penned a five-year deal back in 2020.
Kit specialist Footy Headlines reported on 31 October the two parties have now agreed a contract extension.
Celtic to put margin on merchandise after agreeing Adidas deal
Borson expects Celtic’s deal to be similar to Newcastle’s agreement after they partnered with Adidas earlier this year.
“There is a commitment from Adidas at the moment to football,” Borson told Football Insider.
“I think it’s not just in terms of the replica kit. If you were to go on and have a look at the diffusion ranges around the Celtic brand that Adidas have put out, there is loads of product. There is loads of Celtic fashion product.
“I think what’s probably happening there is the deal they have done with Adidas is similar to the Newcastle deal, where Adidas design a whole range of products, Celtic have a high-quality product, but they have good prices that they are buying wholesale from Adidas.
“They will then put their own margin on them and sell them out into the market. I suspect that deal is working quite well.
“Celtic are quite an unusual club, where you can imagine that lots of that fashion product is being bought by a global market that’s that not necessarily even a massive fan of Celtic but has an affiliation with Celtic generally. There is probably quite a bit being sold in the US.
“What’s probably happening there is similar to the Newcastle deal that was signed up, where there has been quite a lot of misunderstanding about what that deal is. It’s not like the Man United deal as they have guarantees in there, with some quite big licensing fees.
“The Newcastle deal appears to be more of a supply and distribution deal, where they are effectively provided and they buy the product themselves to sell in their own stores, and they make a margin on top of whatever their wholesale price is.
“If you have got a deal with Adidas of this nature, you have got good distribution, good product and good buying prices, meaning these deals can be much more successful than some of the deals that you have done historically.
“I think Celtic are more similar to the Newcastle situation. They have been pushed up the tiers in terms of how they are perceived at Adidas.
“They are not the top tier, which is Man United and Liverpool, but they are a very important club. That brings in significant revenue and profit.
“That’s probably what Adidas are looking at thinking ‘This is working well, let’s carry on with it’.”
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