Connect with us

Sports

Barca’s new Nike deal explained: Is it really worth €1.7billion? And is it bigger than Real Madrid’s?

Published

on

Barca’s new Nike deal explained: Is it really worth €1.7billion? And is it bigger than Real Madrid’s?

Barcelona announced last weekend a new multi-year partnership with kit supplier Nike, extending and updating a deal which had been set to end in 2028.

In recent months Barca president Joan Laporta has regularly boasted that he would secure a deal which would be “the biggest in all of world football”, and the extended contract could now be worth €1.7billion (£1.4bn;$1.8bn) over the next 14 seasons to 2038, bringing a major boost to the club’s troubled and complex financial situation.

Confirmation of the new arrangement ends a year-long saga which hurt relations between the Catalan club and the American sportswear giant. Yet it remains to be seen whether the deal will bring immediate relief to the team’s issues with La Liga’s salary limits — including most pressingly whether last summer’s signings Dani Olmo and Pau Victor can be registered to play for the team over the second half of this season.

The Athletic spoke to figures inside and outside Camp Nou, all of whom wished to remain anonymous to protect relationships, about whether this is a good deal for Barcelona.


What did Barcelona say?

Announcing the contract on Saturday, Barca said in a statement: “This new partnership consolidates Nike as a main partner of the club and official technical partner across all professional and amateur teams, bringing a unique model that strengthens the brand association and fuels the global retail and licensing business growth.”

Advertisement

What are the financial details?

Barca officially told The Athletic that the details of the deal were confidential, but club sources stated a total figure of €1.7bn over the next 14 years.

The new contract will have two phases. The first is from 2024 to 2028, the latter year being when the previous agreement was to expire. Club sources say that for each of the next four years, the income will now be around €108million (£90m;$115m), close to doubling what the club had been earning in recent seasons.

From 2028, that figure will increase to around €120m each campaign over the following decade, according to the club sources.


Barcelona president Joan Laporta (Eric Alonso/Getty Images)

These sources said that Barcelona would also receive a ‘signing bonus’ of €158m which will be divided over the 14 years of the deal, including the current season’s accounts.

Barca consider it to be a big victory for Barca following tough negotiations, guaranteeing that most of the promised annual income will be received, regardless of the team’s performances on the pitch.

Advertisement

When previous president Josep Maria Bartomeu’s board signed the previous deal in 2016, a headline figure of €105m a year was trumpeted. However, under that deal, when the team were not as successful as hoped, for instance dropping out of the Champions League early, the club actually received only €50-60m from Nike.


chart visualization

What are Nike saying?

Nike and Barca have worked together closely since their first deal was signed in 1998. When asked by The Athletic to comment on the new deal extension, Nike said it was delighted to continue this deep and meaningful relationship.

A Nike spokesperson said: “We are excited to progress our work together at all levels, from grassroots football initiatives that inspire and empower young players, to elevating FC Barcelona as a global icon of style and culture. Together, we are particularly passionate about advancing the growth of the women’s game, and our partnership with FC Barcelona’s women’s team is a testament to our shared dedication to equality and inclusivity in sport.”

Nike said they could not confirm details of the financial or business sides of the agreement.

What’s the optimistic view?

The €1.7bn headline figure is huge, even by the standards of multi-million kit deals at the elite level in club football. It would be a huge improvement on Barca’s previous earnings from Nike, a significant boost in revenues which would help improve the club’s financial situation over the coming years.

Importantly for many around Camp Nou, with the signing bonus included it would also mean that Barca have achieved Laporta’s often-stated ambition to top Real Madrid’s €120m-a-year agreement with Adidas, currently accepted as the most lucrative in world football.

Advertisement

This would back the current board’s case that they are working successfully to fix the financial problems they inherited from their predecessors.


Barca need cash to be able to play Dani Olmo in the second half of the season (Alex Caparros/Getty Images)

What’s the reality of the situation?

It is not typical in football for a club to renegotiate a kit deal with four years still to run. But the agreement with Nike was identified by Barca’s board as a potential way to increase their revenues by ‘levering’ more money into their annual accounts.

Nike were only going to agree to a new deal if it suited them, and there had been anger within the U.S. multinational at how they had been treated through the whole negotiation process, including the Catalan club trying (unsuccessfully) to find a legal way to exit their previous agreement.

Laporta and his closest executives took charge of the negotiations which finally led to the weekend’s announcement. Full details of the agreement were not even shared with the board before last Friday’s vote to accept.

Advertisement

Some industry sources consulted by The Athletic were sceptical about the figures being claimed, with doubt from some in the Spanish capital about whether Barca’s deal really was going to be bigger than Madrid’s.

There were also concerns voiced about the effect of the new arrangement on the Catalan club’s Barca Licensing and Merchandising (BLM) arm, with the statement announcing the deal appearing to suggest a deeper role for Nike in this area of Barca’s business.

Since its launch by Bartomeu in 2018, BLM has been a big success. The €179m that Barca earned from kit and merchandising revenues was the most of any European club according to UEFA.

There are concerns that Nike playing a greater role in the many ‘casual’ ranges of clothing and other merchandise sold in official club shops will mean less of the profits end up in its coffers. Club sources have denied that this will be the case.

go-deeper

GO DEEPER

Barcelona and Nike’s breakdown in relations reveals deeper problems at Catalan club

Advertisement

What’s the latest on Barca’s salary limit?

As so often in recent years, Barca had to work hard this summer to be able to register all their current squad members with La Liga, including Spain international playmaker Olmo, a €60m arrival from RB Leipzig, and young striker Victor, a €2.7m signing from Girona.

Both were only registered at the last minute, using La Liga’s financial rule 77, which allows for the temporary replacement of injured players (in this case Andreas Christensen). That meant they were only registered with La Liga until December 31. For either or both to feature after the winter break, the club must find more money from somewhere.


Victor is another player experiencing uncertainty at Barcelona (Alex Caparros/Getty Images)

During a press conference in early September, Laporta said that Barca were “€60million away” from returning to a situation where La Liga would let them sign and register players as normal.

A few weeks later it emerged that Barca’s auditors had required a write-down in its 2023-24 accounts of the value of the club’s troubled ‘Barca Vision’ subsidiary, which holds its current and future media rights and activities.

This meant that Barca now needed to raise an estimated €120m to get back within its allowed salary limit for the current campaign.

Advertisement
go-deeper

GO DEEPER

Reading Barca’s accounts – and why a ‘€12m profit’ is actually a €91m loss

How could the new Nike deal affect the situation?

When Laporta has been asked about the Barca Vision problem, he would often mention the bumper benefits of a new kit deal as at least part of the solution.

One hope was that a ‘bonus’ of €100m-plus could fill most or all of the immediate holes in the club’s accounts caused by the failure of the Barca Studios lever. The agreed deal now divides this bonus over its 14-year term — meaning only an estimated €9m extra in 2024-25 (plus the extra €40m in normal revenues over the course of the season).

Club sources have told The Athletic that the new Nike deal helps but does not resolve the Barca Vision issue. So the search continues for more investors in that project. There is confidence at the highest level at Camp Nou that this will be successful, and player sales will not be required in the winter transfer window. However, as so often under the current regime, it looks likely to go right down the wire.

And over the longer term?

The general impression is that this new Nike deal fits well with Laporta’s policies during his second presidency. The club is gaining upfront money which it can use to fix holes in the accounts and continue to spend on the squad.

Advertisement

A longer-term issue with the new Nike contract flagged in multiple conversations with industry sources is that Barca are now locked into this deal for another 14 years. Given the inflation in the market, €127m a year may not look so good by 2034. “This deal could tie the hands and feet of the next president,” an ex-Blaugrana board member told The Athletic.

However, there is also an understanding that Barca are where they are, and the numbers coming from the club are impressive and necessary. “Financially this new Nike deal is a tremendous boost of oxygen,” said one influential figure in the club’s ‘entorno’ who has not always backed Laporta’s lever policies.

(Additional reporting: Pol Ballús)

(Top photo: Alvaro Medranda/Quality Sport Images/Getty Images)

Advertisement
Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sports

Disney, ESPN to air Mickey Mouse alt-cast for Knicks-Spurs on Christmas

Published

on

Disney, ESPN to air Mickey Mouse alt-cast for Knicks-Spurs on Christmas

It will be a Mickey Mouse production for the NBA on ESPN.

On Christmas Day, the network and the league will continue the trend of presenting alternative broadcasts when the New York Knicks face the San Antonio Spurs at noon, Disney announced Wednesday.

While the traditional broadcast will be available on places like ESPN and ABC, ESPN2 will have what is being dubbed as “Dunk The Halls,” the first animated game in NBA history. Both versions will be available on the streaming services, ESPN+ and Disney+.

The presentation will utilize Sony’s “Beyond Sports Technology” by recreating the game action of stars like Victor Wembanyama and Jalen Brunson on Magic Kingdom’s “Main Street USA.” Mickey and Minnie Mouse, Donald Duck, Pluto, Goofy and Chip and Dale will cheer on the players and deliver pretend pre-game and half-time speeches.

At intermission, the Disney characters will compete in a slam dunk contest.

Advertisement
The Pulse Newsletter

Free, daily sports updates direct to your inbox.

Free, daily sports updates direct to your inbox.

Sign UpBuy The Pulse Newsletter

After a long night of work, Santa’s helpers have been contracted to operate the cameras, while Santa, himself, will work ESPN’s “SkyCam” during the game.

Drew Carter, Monica McNutt and sideline reporter Daisy Duck will be the trio on the broadcast. The traditional telecast will feature Ryan Ruocco and Corey Alexander with Cassidy Hubbarth on the sideline.

ESPN said in its release that fans will also find out if snow will fall on “Main Street,” though it is doubtful any betting sites will take wagers (a white Christmas is a strong favorite, nonetheless). If that is not enough to entice viewers, Goofy will see how many churros he can eat.

Advertisement

The telecast continues the trend of alternative broadcasts. In 2021, the NBA and ESPN teamed up with Disney Marvel characters for an alt-cast.

Required reading

(Photo: Courtesy of ESPN)

Continue Reading

Sports

Legendary UConn coach Geno Auriemma sets NCAA all-time wins record

Published

on

Legendary UConn coach Geno Auriemma sets NCAA all-time wins record

Join Fox News for access to this content

You have reached your maximum number of articles. Log in or create an account FREE of charge to continue reading.

By entering your email and pushing continue, you are agreeing to Fox News’ Terms of Use and Privacy Policy, which includes our Notice of Financial Incentive.

Please enter a valid email address.

Having trouble? Click here.

Legendary UConn women’s basketball head coach Geno Auriemma made history Wednesday night with the Huskies’ victory over Fairleigh Dickinson University. 

Auriemma became the all-time wins leader in college basketball history for both men and women, collecting his 1,217th victory to pass Tara VanDerveer, the legendary Stanford Cardinal coach. 

Advertisement

More than 60 former players were at Gampel Pavilion as part of a sellout crowd to watch the Huskies take down the Knights, 85-41. Despite UConn being a heavy favorite in this matchup, Auriemma went about coaching like the 1,216 wins before it, until the final buzzer sounded.

Connecticut Huskies head coach Geno Auriemma reacts in the first quarter against the Iowa Hawkeyes in the semifinals of the Final Four of the 2024 NCAA Tournament at Rocket Mortgage FieldHouse. (Kirby Lee/USA Today Sports)

The game was also a celebration of Auriemma and associate head coach Chris Dailey’s 40th season leading the Huskies. It was part of a celebration that included a goat petting zoo near the arena during a fan fest, a reference to Auriemma being the greatest of all-time. 

While the night was meant to honor Auriemma and Dailey, the win to set the new record led to reflection on just how dominant his program has been at UConn all these years. 

Advertisement

GENO AURIEMMA TIES DIVISION I COACHING RECORD AS NO. 2 UCONN BEATS NO. 14 UNC 69-58

The Huskies are 11-time national champions with 23 Final Four appearances, including 15 in the last 16 years. 

Auriemma’s .882 win percentage for his career remains an NCAA record as well. 

“At the beginning, we really just had our vision and each other to say, ‘This is what we’re going to do,’” Dailey said Tuesday, via ESPN. “And we were able to convince enough people to believe that same dream. And, eventually, 40 years later, a lot more has happened than what we ever thought would have.”

Bueckers and Geno

Paige Bueckers and head coach Geno Auriemma of the Connecticut Huskies during the first half against the Duke Blue Devils in the Sweet 16 of the NCAA Tournament at Moda Center March 30, 2024, in Portland, Ore. (Steph Chambers/Getty Images)

Auriemma has only coached at one school, building his squad in Storrs to the point it was nationally recognized as a powerhouse for decades. After the team’s first national title under Auriemma in 1995, UConn was, and still remains, a powerhouse every season. 

Advertisement

Auriemma, 70, still wants to coach the Huskies despite admitting to feeling at times it was the right move to walk away. 

“As long as I’m here, and I walk in this building, and I see the players here, and I see the people that work in my little world and how we all kind of motivate each other, there’s no other place I would want to be,” he said. 

Geno Auriemma

Head coach Geno Auriemma of the Connecticut Huskies celebrates after his team’s 80-73 win against the USC Trojans in the Elite Eight of the NCAA Tournament at Moda Center April 1, 2024, in Portland, Ore. (Soobum Im/Getty Images)

UConn remains unbeaten at 4-0 to start the 2024-25 campaign. 

Follow Fox News Digital’s sports coverage on X, and subscribe to the Fox News Sports Huddle newsletter.

Advertisement

Continue Reading

Sports

Sebastian Mack makes his presence felt in UCLA's win over Idaho State

Published

on

Sebastian Mack makes his presence felt in UCLA's win over Idaho State

In case anyone had forgotten about him amid all the newcomers dotting UCLA’s roster, Sebastian Mack provided a reminder with every foray toward the basket Wednesday night.

He’s still here. Dismiss him at your own risk.

On a night that the frontcourt duo of Tyler Bilodeau and Eric Dailey Jr. continued to provide a smorgasbord of offense for the Bruins, Mack was their leading scorer on the way to an 84-70 victory over Idaho State at Pauley Pavilion.

Mack contributed 21 points off the bench on the strength of 15 free throws for the Bruins (4-1), who have won three consecutive games in convincing fashion since their setback against New Mexico earlier this month.

Meanwhile, Bilodeau and Dailey continued to carry a group of starters that hasn’t gotten much offensive production from the guards. It was a similar story Wednesday, with Kobe Johnson, Lazar Stefanovic and Skyy Clark combining for just 10 points.

Advertisement

Bilodeau single-handedly doubled that output with 20 points on eight-for-14 shooting, including four of four from three-point range for a team that made nine of 14 shots from beyond the arc. Dailey added 16 points while making seven of nine shots to go with seven rebounds.

Their efficiency prevented defenders from sagging off to contest UCLA’s most prolific offensive weapon, who continually drove the open lanes that invited a Mack attack. The Bengals kept fouling the sophomore guard and sending him to the free-throw line, where he made 15 of 16 attempts.

Mack’s presence alone could be considered a victory for the Bruins. He could have joined several teammates who departed in the offseason amid the influx of six transfers. He stuck it out, heeding his coach’s advice.

UCLA forward Tyler Bilodeau dribbles with his back to the basket, working to get an open shot against Idaho State Wednesday at Pauley Pavilion.

(Icon Sportswire / Icon Sportswire via Getty Images)

Advertisement

“The last thing you should do,” Mick Cronin said, repeating what he told Mack. “You should stay here, let me coach the hell out of you and get everything out of you that you need to get out of you so you can become who you want to become. Choose hard. It works for people. Choose hard. Don’t choose easy.”

Mack said he trusted his coach’s promise to make him a more complete player.

“Just be able to guard, shoot, score whenever I look at my teammates,” Mack said of the things he’s working on, “just all around, pretty much.”

Mack displayed unselfishness in the first half with a lob to forward William Kyle III for a thunderous dunk that enlivened the crowd.

Advertisement

After using a small lineup in the season’s early going, Cronin said he would eventually like to play the 6-foot-9 Kyle alongside the 6-foot-9 Bilodeau and 6-foot-8 Dailey to combat the larger bodies he expects to face in the Big Ten.

“When those bigger teams come,” Bilodeau said, “we’re definitely going to need the size and the strength in there.”

One possible snag is the lack of a reliable backup big man. Cronin hasn’t been happy with the performance of center Aday Mara, who had two turnovers in as many minutes Wednesday.

“Aday’s got to play better,” Cronin said, “so then we’ve got a sub.”

Advertisement

Since infuriating their coach with a lack of toughness against New Mexico, the Bruins have pleased him with improved competitiveness and defensive intensity.

Next on Cronin’s to-do list? Get better at rebounding, reducing turnovers and making shots.

There was some progress Wednesday in that the Bruins made 27 of 47 shots (a season-high 57.4%) and committed a reasonable 11 turnovers. But they gave up 10 offensive rebounds after putting a lid on the basket in practice this week to emphasize boxing out.

UCLA also exhibited some defensive slippage, particularly over the final 10 minutes, after holding its three previous opponents to 50 points or fewer at home this season.

Idaho State may not have much name recognition, but the Bengals have a proud history against UCLA. Some might say they ended the Bruins basketball dynasty with a 76-75 upset over a Marques Johnson-led team in the second round of the 1977 NCAA tournament.

Advertisement

John Wooden was already gone, you say? True, but the Bruins had extended their run of Final Fours the year after he retired in 1975, only for the team’s streak of 10 consecutive trips to college basketball’s biggest stage to end thanks to a flurry of points and rebounds from Idaho State’s Steve Hayes.

Senior forward Isaiah Griffin looked like he might reprise that role while scoring Idaho State’s first 12 points Wednesday. At that point, the Bengals (2-4) held a 12-10 lead and appeared like they might have a chance for a breakthrough after single-digit losses to Arizona State, USC and Cal State Fullerton.

But Bilodeau and Dailey countered with back-to-back three-pointers to spark a 10-0 run, and Mack kept attacking.

Advertisement
Continue Reading

Trending