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Why Is FC Barcelona Terminating 25 Years Old Contract With Nike? Find Out
FC Barcelona signed a contract with Nike back in 2016 that was set to last until 2028, but the Catalonians do not look satisfied.
FC Barcelona and Nike have a deep-rooted connection that goes way back. However, it seems like Barcelona might have to explore other options apart from Nike. The partnership between Nike and Barca has been flourishing for a quarter of a century, but now it appears that there are some issues arising and the agreement might be on the verge of termination. Apparently, the folks from Catalonia are dissatisfied with the terms offered by Nike, and both sides are struggling to find a middle ground.
Barcelona's main kit sponsor is currently the American giants, who signed a contract extension in 2016 lasting until 2028. As reported by Sport, the agreement guarantees Barcelona at least €105 million annually, with a potential maximum of €169 million based on meeting certain incentives. Nevertheless, reports suggest that only €66 million of this total is directly from sponsorship revenue.
What happened between Nike and FC Barcelona?
According to Sport, Barcelona President Joan Laporta has been dissatisfied with the team's relationship with Nike for some time and is apparently looking for other marketing partners for the club. Despite receiving an offer from Puma for €100 million (£86 million/$108 million) every season, the president is considering moving to an in-house manufacturer for the famed shirts.
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According to reports, Barça is poised to cut relations with Nike and begin creating their jerseys. In the next few days, a definitive choice must be taken, and Barcelona is likely to create a new brand for its jerseys. Everything indicates that Barcelona would create its brand to make kits rather than enter into a deal with a third party after its relationship with Nike is terminated.
It will be surprising if Barcelona president Joan Laporta makes the decision, considering the long-standing partnership with Nike since 1998. Over the past 25 years, they have consistently extended their contract, making it one of the most lucrative deals for the club.
The Catalans have reached out to big companies worldwide for help with their in-house production. The club will handle all production, distribution, design, and manufacturing expenses. Opting for in-house solutions means they will get all the revenue and income from shirt sales. This strategy might shake up the traditional Barcelona approach, but it could also greatly impact the club's financial situation.
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