Adidas to keep making outfits for Die Mannschaft
What's the story
Adidas has extended its sponsorship with the German National Football team until 2022. Europe's largest sportswear manufacturer will pay 50 million euros a year, apparently double the amount of its previous contract. Adidas has been manufacturing kits for German football association for over 60 years now. Adidas' major rival Nike was also in the race for the German contract.
About sponsorship
What is a sponsorship deal?
A sponsorship deal is mainly of two types - kit providers and advertising on the jerseys. Football clubs and associations rely massively on their sponsors to pay salaries to the players. The kit providers and the advertisers on the jerseys are the main revenue generator for the teams. Other deals include stadium naming rights which is also a major source of earning.
Nike and Adidas
War of the giants
The competition between two major sports brands has reached another level with the ongoing Euro 2016 Adidas and Nike have bagged eight out of the worlds 10 most richest deals with the European football clubs, each having four clubs on its side. The growth of Nike in football made Adidas pay a high sum for its sponsorship deal with Real Madrid.
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Adidas leads in National sponsorships
Adidas has been supplying kits for nine out of 24 teams competing in the Euro 2016 for the last 20 years, succeeding Nike and Puma having six and five teams respectively.
Billion dollar clubs
Richest sponsorship deals in football
European football clubs have signed record breaking kit sponsorship deals this year. Nike has extended its sponsorship with the current La Liga Champions Barcelona FC by agreeing to pay $170m-$175m annually. Real Madrid is sponsored by Adidas with $157m-$160m per year. The contract is to continue until 2026. Manchester United earns $106m-$109m annually via sponsorship with Adidas while, Chelsea earns $87m through Nike.
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Adidas' sales to soar
Adidas has predicted sales of $2.8 billion with football products this year. Penning a long term contract with French footballer Paul Pogba , Adidas expects its sales to rise by 25% in 2016.