Understanding the value of Liverpool FC’s return to adidas

After months of rumors circulating around a potential deal between Liverpool FC and adidas, the pair finally announced a new partnership earlier this week. The club has agreed a multi-year partnership which marks a significant return to the major German brand.

The sportswear giant previously supplied the team’s kits between 1985 to 1996 and 2006 to 2012. Since the club’s last partnership with adidas, Liverpool has had three different kit supplier partnerships with Warrior, New Balance, and currently Nike.

The new adidas deal marks a significant increase in guaranteed revenue for the club, with its annual value jumping from a reported £30 million ($39.39m) to £60 million ($77.69m). The reality of this value increase, however, is not as dramatic as initially seen.

The Nike contract’s smaller value does not include the additional revenue expected through merchandise and kit sales. Liverpool reportedly takes 20% of this revenue, up from the standard 7.5% found at most Premier League clubs. In line with previous global kit sales at the club, this would equate to an additional $23.53 million on the value of the contract.

At Premier League level, Liverpool’s new deal with adidas puts it at the same annual value as Chelsea and its kit supplier contract with Nike. Despite the club’s negotiations coming from a position of current strength, with a Premier League title almost guaranteed this season (and a potential league and cup double), the deal still sits behind Arsenal, Manchester City, and Manchester United.

Its big domestic rival, Manchester United is also set to enter the 2025-2026 season on the terms of a new kit supplier contract. United’s deal, also with adidas, is comfortably the biggest in the UK, at a value of 50% more than the new Liverpool contract, at a reported £90 million ($116.53m) a season.

Despite a shared similar history of success between Liverpool and Manchester United and continued struggles regarding results for the latter, United remains the most commercially popular team in the league.

This is shown in the comparative social media followings of each club, with Liverpool linked to almost 118 million combined followers against United’s 185 million, highlighting the gulf in global popularity between the two.

For adidas, the deal with Liverpool next season further cements its position as the most prominent kit supplier in the Premier League. Based on the current 20 involved teams, adidas is set to cover 40% of the league from the start of the 2025-26 season. It puts the brand’s annual spend in the Premier League at $433.32 million.

This is significantly more than its biggest market rivals, Nike at $120.28 million and PUMA at $85.66 million. Potential changes to the Premier League kit supplier market will come via promotion/relegation and potentially through Brentford, whose deal with Umbro is the only confirmed expiring deal at the end of the 2024-25 season which has not been renewed or replaced.

Based on current positions and records in the Premier League and EFL Championship, adidas could lose visibility in the Premier League through the relegation of Leicester City, but this would be offset by a potential promotion of Leeds United (currently top of the EFL Championship).

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