Football clubs generate revenue on a yearly, monthly or weekly basis from three major constituents: match-day revenue, broadcasting revenue and commercial revenue. The match-day revenue is generated from ticket sales on a seasonal, monthly, weekly or per-game basis at the actual games and also applies to the renewal of the annual memberships of ticket buyers. Broadcasting revenue is derived from both domestic and international competitions by taking part in the competitions or reaching a certain level in the competitions. Commercial revenue comes from merchandising and sponsorship deals with various manufacturers.
Like broadcasting revenue and match-day revenue, commercial revenue is a major factor determining the yearly revenue and income of not only football clubs but also the players. Clubs generate commercial revenue from, besides merchandising, kit sponsorship deal and kit suppliers/manufacturers deal. It is to be noted that both these deals are separate and different.
Kit sponsorship deals happen when a club signs with any manufacturer or company that is willing to pay the club a certain amount to place their logo or name on the club's official and training kits in all or certain competitions. Then there is the kit suppliers/manufacturers deal, which a club strikes with sports clothing manufacturers such as Adidas, Nike, Puma, Umbro, etc, for them to supply and sell their official kits worldwide. For the world's biggest or the most successful football clubs, the right to put a sports manufacturer's logo on their kit comes with a big financial pricetag.
This article is about the current most expensive kit suppliers deals of football clubs. Besides the generation of revenue on a large scale, these deals also provide the clubs' players and other staffs a number of additional hospitality rights, advertising rights and various other benefits. Also, the shirt suppliers deal is worth a huge fee because of the never-ending marketing opportunity in every game the club plays, as well as the street-level marketing that happens when fans buy and wear their favorite team's jersey.
So, without further ado, here are the top ten most expensive kit suppliers deals in football.
10 AC Milan - Adidas - $19 million per year
9 Manchester City - Nike - $19 million per year
8 Bayern Munich - Adidas - $29 million per year
7 Juventus - Adidas - $30 million per year
6 Chelsea - Adidas - $32 million per year
5 Liverpool - Warrior - $40 million per year
4 Manchester United - Nike - $41 million per year
3 Barcelona - Nike - $43 million per year
2 Arsenal - Puma - $45 million per year
1 Real Madrid - Adidas - $49 million per year
Adidas and Real Madrid's kit manufacturing partnership, extended until the end of the 2019-2020 season, is the highest-paid kit providers deal in football history. Revealing the news in their annual financial report issued to club members, the club announced that the renewal would be worth around $49 million per year. With the deal, the club continues to record increased revenue from its footballing activities, excluding transfer revenues. The partnership between the two dates back to 1998, and it is the German sports manufacturer's second partnership spell with Real Madrid.
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