Madrid agree whopping €1,100m sponsorship deal with Adidas
Real Madrid may have been suffering some crisis on the pitch which led to the departure of Julen Lopetegui but the brand is still very strong commercially. The 2017/18 budget was approved by the club’s General Assembly with a budget of €751m, and this is 11% more than the previous year.
The commercial area experienced a growth of 16% to €297m amid indications that there will be further growth to the tune of €305.24m this season. It was also gathered that the club’s sponsorship and licensing which act as the main sources of income generation stand at €239.68m, with an 18.2% increase.
Meanwhile, the club is set to break more grounds as there is an agreement in place for the renewal of the sponsorship deal with Adidas which is set to be signed. The renewal of the deal will see the sum of €1,100m being raked in over the next 10 years.
This is obviously a ground-breaking deal in the European sports market, and the unarguable contract of the century will make the shirt the most expensive in world sport.
The deal provides a guaranteed yearly income of €110m, as well as other variables which are dependent on merchandising that could see the figure rise to €150m. This could see Real Madrid doubling the €52m they currently receive from the German company.
Madrid’s relationship with Adidas dates back to 1998 although they wore Adidas shirts in 1981. It was the first year in which the team wore a shirt that carried a sponsor’s name. It can be recalled that they wore the shirt until 1986 before changing to the likes of Hummel and Kelme from 1986 to 1994 and 1994 to 1998 respectively.