Barcelona Close Record-Breaking €1.7 Billion Nike Kit Deal, Largest in Football History

Spanish men’s football giants FC Barcelona have extended their contract with the US sportswear company Nike by 14 years, until 2038.

In what’s reportedly the biggest agreement of its kind in football, Barcelona have extended their long-standing partnership with Nike as a kit provider. Since 1998, “Barça” and an American sports apparel and footwear company with its headquarters in Oregon have collaborated, and their previous contract, worth €105 million (US$112 million) a year, was set to expire in June 2028.

The Spanish football powerhouse was reportedly ready to leave Nike and had been considering a number of alternatives, with brands like Puma and New Balance being mentioned in connection with a deal. It was also reported that they were thinking about designing and releasing their own kit. But now, the five-time UEFA Champions League winners (ranked as the no. 6 favorites to win the competition before the season by the odds of the best sports betting sites in Europe and as of recently moved up to the second place) have decided to negotiate a multi-year agreement with Nike. According to the agreement, the US sportswear company is the club’s primary partner and official technical partner for all of its amateur and professional teams.

According to the Catalan-based side, the deal would include a “unique model” intended to support the expansion of worldwide retail and licensing businesses. Nike will work with the club’s Barça Licensing & Merchandising (BLM) arm on product development, supply chain management, and international distribution in addition to playing a “key strategic role” in the club’s retail operations.

What Does Barcelona’s Deal with Nike Include?

The most recent contract’s duration and value haven’t been formally revealed. But, the agreement, according to Spanish sports publication Mundo Deportivo, runs for 14 years, ending in 2038. It’s valued at approximately €127 million (US$136 million) a year, or more than €1.7 billion (US$1.8 billion) overall. According to reports, the contract includes a signing bonus for “Barça” of about €158 million (US$169 million), which Nike will pay out over the course of the agreement.

Barcelona’s Nike kit agreement has been hailed as the richest in football. Real Madrid CF, Barcelona’s bitter rivals, receive at least US$120 million annually from their Adidas kit deal, while England’s Manchester United F.C. receive US$105 million from the same partnership, according to Statista.

For the club, sticking with Nike makes sense on a number of levels. As Barcelona attempt to lower their enormous debt, which has grown to €1.2 billion (US$1.3 billion), and return to the spending cap set by La Liga, the alleged record deal generates a good deal of public relations and increases the club’s commercial revenue.

Nike’s portfolio of kit partnerships with top European football clubs would have decreased even more if it had lost “Barça”. Liverpool F.C. of England will follow teams like Real Madrid, Manchester United, Germany’s FC Bayern Munich, and another English side, Arsenal F.C. in switching to Adidas starting in the upcoming season.