Liverpool win New Balance court battle allowing Nike to become kit supplier
Liverpool have won their court battle with New Balance which will now allow Nike to become the club’s kit supplier from next season.
New Balance took Liverpool to High Court for allegedly refusing to honour the terms of their current deal by allowing Nike to become the club’s new kit sponsor despite a stipulation in the contract that would allow them to match any rival offer – something they felt they had done.
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However, following a three-day trial the judgement went in favour of the Champions League winners on the grounds that New Balance’s marketing offer was “less favourable” than Nike’s.
New Balance’s current deal with Liverpool expires next May and the company argued that it had matched the offer from Nike of a £30m-a-year deal for five years.
Liverpool argued that New Balance could not match Nike’s distribution and that their offer was not made in “good faith” as it did not “genuinely believe” it could stock kit in 6,000 global retail outlets.
The club also said New Balance could not match Nike’s marketing offer, which inluded initiatives with three non-football global, superstar athletes “of the calibre of LeBron James, Serena Williams, Drake etc”.
Nike’s superior marketing
While New Balance suggested this could not be quantified, the judge disagreed.
Mr Justice Teare wrote: “In my judgement the calibre of the named athletes or influencers can be measured.
“I have therefore concluded that the New Balance offer on marketing was less favourable to Liverpool FC than the Nike offer because Liverpool FC cannot require New Balance, on the terms of its offer, to use global superstar athletes of the calibre of LeBron James, Serena Williams, Drake etc.
“It must follow that Liverpool FC is not obliged to enter into a new agreement with New Balance upon the terms of the latter’s offer.”
It frees up Liverpool to enter the partnership with Nike, which is worth £150m from 2020 to 2025, plus 20 per cent in royalties and marketing campaigns.
New Balance were ordered to pay 20 per cent of Liverpool’s court fees, which totaled £555,126, meaning the sportswear brand will have to pay £111,025 on top of their own costs.
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A spokesman for the club said: “Liverpool FC is pleased with the Judge’s decision to rule in favour of the club following the legal dispute with our current kit supplier, New Balance.
“We will continue with New Balance for the current season, in combination with preparing next season’s Liverpool kits with our new supplier.“