Reds’ Nike partnership yields premier earnings from kit sales

Liverpool FC has outpaced all Premier League clubs in earnings from shirt sales and merchandise, thanks to their lucrative deal with sportswear giant Nike. UEFA’s latest report sheds light on the financial success of this partnership, revealing figures that place Liverpool at the top of the league in terms of kit deal profits.

The club’s strategic move to switch kit suppliers from New Balance to Nike involved a base rate negotiation that appeared lower at face value. Initially, the deal guaranteed Liverpool £30 million per season, a decrease from the £45 million they received under New Balance. However, the inclusion of royalties on sales turned this agreement into a golden handshake, as evidenced by the impressive financial outcomes.

According to UEFA’s ‘European Club Finance and Investment Landscape’ report for 2022/23, Liverpool’s kit and merchandise sales amassed £113.1 million. This remarkable sum ranks them fourth in Europe, trailing only behind football behemoths Barcelona, Real Madrid, and Bayern Munich. Furthermore, the Reds managed to surpass their domestic rivals, including Manchester United, by a slim margin, highlighting the financial prowess and global appeal of their brand.

Liverpool’s earnings from Nike, primarily driven by a 20% royalty on sales, underscore the strategic value of their partnership. The report estimates the value of these royalty payments to exceed £80 million, a testament to the club’s robust merchandising strategy and its global fanbase’s loyalty.

Despite a slight decline in earnings compared to the previous year—from £117.3 million in 2021/22 to £113.1 million—the club’s revenue from kit and merchandise sales remains a significant contributor to its financial health. This slight drop in sales highlights the dynamic nature of merchandise revenue streams and the factors influencing consumer purchasing behaviour.

As Liverpool approaches the end of its fourth season with Nike, speculation about the future of this partnership is rife, given the current deal’s impending expiration next season. The success of this collaboration, both in financial terms and brand visibility, sets a high bar for any future agreements.