Real Madrid and adidas until 2019-2020

Hi guys,
adidas extended the partnership with Real Madrid until end of season 2019-2020 for a record sponsorship deal of €32 million a year. The 3-stripes secure one of the most lucrative sponsorship deal in football.

It is a very important move for adidas to secure on of the best football club in the world. Obviously from a business standpoint this deal is key, but also on a sports marketing point of view. In Spain, Nike partners with FC Barcelona, Atletico Madrid, Malaga, and is also the official matchball supplier of La Liga BBVA.

Adidas is securing, more than strengthening, its brand visibility on the spanish market by extending its partnership with Real Madrid. According to Sport Business, Real’s annual report signed off on the club’s financial results for the 2011-12 year, which were published earlier this month. Real revealed revenues of Eur514 million for 2011-12 – a figure the club claims is a record for any sports team.

Real’s revenues for the 2011-12 campaign, in which it beat arch rival FC Barcelona to the league title, represent a 7% rise on last season’s generation of Eur480.2 million. The club said its net debt fell by 26.5% to Eur124.7 million, but it also reported a 23.3% fall in its yearly profits. Real’s net profit saw a significant 31.7% rise year-on-year to Eur31.6 million in 2010-11, but this has now dropped back to Eur24.2 million.

Karl Lusbec