Adidas have decided not to renew the sponsorship deal with Liverpool FC. Adidas CEO Herbert Hainer believed the price the 3-stripes had to pay did not meet the value of the team citing their poor performances on the pitch.
Liverpool, which is also a five-time European champion, has replaced Adidas with a club record, 6-year, 25 million pound ($38.3 million) contract with Warrior Sports, a subsidiary of New Balance Athletic Shoe Inc. The accord, Warrior’s first major soccer contract, begins next season and is worth almost double the current agreement with Adidas.
Liverpool has struggled to recapture its glory days that made it England’s dominant team during the 1970s and 80s. It hasn’t won a league championship since 1990 and last season was overtaken by Manchester United as the holder of the most titles. Liverpool didn’t make the Champions League, Europe’s top club competition, this season and is seventh in the Premier League, 13 points behind leader Manchester City.
“The gap between their performance on the field and what the number should be is not in balance,” Adidas CEO Herbert Hainer said in an interview in Munich yesterday. “Then we said, ‘Okay we will not do it. That’s the end of the story.’” Liverpool didn’t respond.
The team’s lack of success hasn’t stopped it signing other commercial agreements. London-based bank Standard Chartered (STAN) is paying a record 81.5 million pounds to have its logo displayed on its jerseys for four years. [Source: I sport Connect].
LFC and adidas kicked off a partnership back in 2006 – that brings back some memories…oh my! Liverpool was (or is) in trouble waters following Suarez’ racist insults to Patrice Evra, and the anger of the fans which trigger controversial support to the Uruguay player.
How impactful was this “mess” in not extending the partnership with the Reds? The question needs to be addressed.
Also, Liverpool is one of the few football clubs that sells approx 1 million replicas shirts worldwide. Interesting to see that this was not a “we-must-continue” factor.
According to The Telegraph, “It had been suggested that Liverpool voluntarily ended the agreement with Adidas after a dispute about control over merchandise not related to the team’s kit. “