Real Madrid underline financial power by signing new €1bn kit deal with Adidas
Real Madrid have received a financial boost after signing a new eight-year kit deal with Adidas that is believed to be the most lucrative in world football.
The 15-time European champions and the German sportswear behemoth have opted for an early extension to their partnership, which will now run until at least 2034.
Real Madrid’s previous contract with Adidas was due to run until 2028 and was reported to be worth around €120m (£104m) a year.
The new deal is thought to be even more lucrative, eclipsing domestic rivals Barcelona’s relationship with Nike, which is reportedly worth €127m (£110m) a year.
Once Real Madrid’s industry-leading percentage take on sales through Adidas outlets is factored in, it is thought to be worth more than €1bn over the length of the contract.
“This agreement we seal today is the most important in the history of football,” said Real Madrid president Florentino Perez, who was re-elected on Sunday.
“The strategic alliance between Real Madrid and Adidas has helped us during these three decades to experience one of the most wonderful periods in our history. It has also served to continue nurturing this universal feeling that is Madridismo.”
Real Madrid extend long-running Adidas partnership
Real Madrid has become the flagship club in the Adidas stable of football kit partnerships since they joined forces again in 1998, following an initial deal in the early 1980s.
During the current era, the club has also been home to some of the German brand’s best-known player ambassadors, such as Zinedine Zidane, David Beckham and Jude Bellingham.
“This is one of the longest and most successful partnerships in sports,” said Adidas CEO Bjorn Gulden.
“Real Madrid is a very special club with an impressive history. I am extremely proud that the three stripes continue to be part of this extraordinary success story.
“We look forward to continuing to create the best products for the team, helping them perform at the highest level, and offering fans around the world attractive lifestyle products that allow them to show their passion and support for the club, both in the stadiums and on the streets.”
Real Madrid became the first football club to record annual revenues of more than €1bn during the 2023-24 season and they remain the biggest income generators in the game.
Adidas is enjoying a period of dominance over main rival Nike, fuelled in part by deals with other leading clubs including Manchester United, Liverpool, Arsenal and Bayern Munich.