Paris St Germain Record Sales Shirts: A Powerful Renegotiation Tool

Hi everyone,PSG home and away shirts
Another merchandising milestone for Paris St Germain. The Qatar owned club sold circa 400.000 jerseys during the 2012-2013 season. The best sales season for the french club.

Back in 2011, when Qatar Sports Investment took ownership of PSG, I outlined the potential record shirts sales. Today it’s a fact: PSG joins the exclusive club of football clubs reaching the 400.000 jerseys sales mark. PSG has not yet reached the +1 million jersey sales of Manchester United or FC Barcelona, but the francilian club is getting there. 

With this in mind, BFM TV reveals that this sales record will be a significant leverage tool in the contract renegotiations with Nike. Paris St Germain and Nike’s sponsorship deal ends in June 2014 and the club of the french capital is planning a to get a meaningful increase of sponsorship fee.

Supposedly, Nike sponsorship annual fee to PSG amounts to $8.5 million a year, and PSG is targetting an annual amount of $40 million. A deal of this magnitude will rank PSG in the same deal category as Nike has with Manchester United ($38 million a year), or Puma with Arsenal starting next season: $46 million over 5 years, making it the biggest kit deal in English football.

The key question for Nike is to pinpoint the long term strategy and whether meeting PSG’s request won’t be an opened door to similar demands from other clubs within their portfolio.

Paris St Germain have a long term strategy and to the same extent of Manchester City, the french club wants to win trophies and increase revenue streams. This said, Nike’s sponsorship deal with the Citizen amounts $24 million over 6 years!

According to BFM TV, Burrda could be the next PSG kit manufacturer should negotiations fail with Nike. Burrda is owned by Qatar Sports Investment….

What are your thoughts? Is PSG asking too much? Will Nike meet their expectations? Will Nike drop PSG as it did to Arsenal?

Karl Lusbec

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