Kieran Maguire: Liverpool on course for stunning £70m windfall
Liverpool are “reliant” on Nike but on course for a stunning £70million windfall this year.
That is according to finance guru Kieran Maguire, speaking exclusively to Football Insider after Liverpool released their 2021-22 away kit on 8th July.
The Reds joined forces with the American sportswear giant ahead of last season in a deal worth £30million-a-year.
Liverpool accepted a lower base rate in exchange for a greater cut of sales profits.
The Liverpool Echo reported on 8th July that many analysts believe this means the true cost of the deal could be worth closer to £70m-a-year.
The sale-incentivised nature of the partnership means Liverpool are relying on Nike to shift a high volume of shirts in order to earn top dollar.
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But they could not be in more capable hands, asserts Maguire.
He told Football Insider correspondent Adam Williams: “Nike are the effective distributor and retailer of the kit everywhere except the store at the stadium and the one that they’ve got in Liverpool One.
“It’s in Nike’s best interest for this kit to be a success. While Nike’s upfront fee of £30m-a-year is relatively low compared to the likes of Man United and Chelsea, they’ve still got to deliver.
“It is still an awful lot of fixed costs to cover, £30m. So they are reliant on Nike but if you take a look a the marketing nous of Nike, you realise they’re in safe hands.
“Nike’s total marketing spend in 2020 was $3billion. That’s 10 per cent of their total revenue that goes on marketing.“