LaLiga giants Real Madrid and sports brand adidas have finally signed their kit partnership extension for a further eight seasons, from 2020-21 to 2027-28.
The new deal is thought to be worth about €135m ($151m) per season based on a fixed fee and a percentage of shirt sales – more than twice the value of the current agreement, worth about €52m per season.
The new figure puts the club second only to LaLiga rival Barcelona as the top-earning club from kit partnership revenue.
Barcelona is understood to be making €155m per season from its kit deal with Nike, from 2018-19 to 2025-26.
Details of Real Madrid’s contract-in-progress with adidas had previously been leaked to the German newspaper Der Spiegel in collaboration with Football Leaks in May 2017.
Der Spiegel reported that Real Madrid was set to collect a minimum of €110m per season over 10 years. A further €50m per season could be received depending on the club hitting certain targets.
More recent reports have also put the minimum guarantee at €110m per season, with a variable based on retail sales at about €25m per season.
Read this: European Football Sponsorship Report 2018-19: LaLiga
Kasper Rorsted, chief executive of adidas, said: “This agreement will help us to achieve our mission to be the best sports company in the world. It also underpins adidas’ leadership in the football category.
“We are proud that we continue to outfit all Real Madrid teams and serve all Real Madrid fans globally with innovative and stylish products.”
Florentino Pérez, president of Real Madrid, said: ” Together, we will continue to build on our strategic alliance that allows us to be the benchmark and leaders of the football industry.
“Hence, adidas is the ideal partner for us. adidas delivers the best material for on-pitch performance and amazing original products for our fans all over the world.”
adidas has designed and produced Real Madrid’s kit since 1998.
During this time, Real Madrid won six Uefa Champions League titles, six FIFA World Club Championships, four UEFA Super Cups, six Spanish Championships, five Spanish Super Cups, and two King’s Cups.