The landscape of English football has changed a lot in recent years. New television money has made virtually every club in the EPL this season rich, while the streams of revenue outside of TV money have seemingly dried up elsewhere.
One area that hasn’t dried up is the on-going battle between two giant athletic apparel companies — adidas and Nike. The former is Chelsea’s current kit sponsor, but the latter has just been announced has adidas’ replacement.
In fact, Nike splashed a club record £60 million-a-year ($73 million) deal in front of the West London club. The deal is set for 15 years and, if it goes through to the very end, will net Chelsea a cool £900 million.
Chelsea director Marina Granovskaia believes the new deal will offer the west London club a unique opportunity in brand development.
“This is an incredibly exciting and important deal for the club. Like Chelsea, Nike is known around the world for its excellence and innovation and we look forward to working together in what is sure to be a successful partnership,” Granovskaia told Chelsea’s official website.
“We believe Nike will be able to support our growth into new markets as well as helping us maintain our place among the world’s elite football clubs.”
Let’s be real here – the money offered by Nike is what makes this deal important to Chelsea.
The club is trying to finance new stadium renovations while also competing on the international merchandising market with Manchester United and Barcelona, among many others
It is that international support that is also likely to attract a kit maker like Nike to do this deal. Getting in on the lucrative markets of Asian and North American EPL fans is important, especially after the Eugene, Ore.-based company saw its kit sponsorship deals dwindling in the most visible soccer market in North America.
This is a deal that can help Chelsea secure its long-term financial future, along with getting their new stadium up and running of course.
