Kieran Maguire is a football finance expert in the University of Liverpool’s Management School
The judgement in favour of Liverpool means that they are free to sign a kit manufacturing deal with Nike. Whilst the up front fee from Nike, at £30m, is noticeably lower than that of other clubs such as Manchester United (£75m) and Chelsea (£60m) Liverpool will earn 20% on each sale compared to an industry standard of 7.5%. We estimate that the club will be better off financially under the Nike terms if merchandise sales are £240 million a year or more.
Liverpool feel that Nike’s greater marketing spend, number of shops and connections with existing global stars such as Drake, LeBron James and Serena Williams will help the club sell more shirts in global markets compared to the terms offered by New Balance.
The fact that the judge only ruled that 20% of Liverpool’s £1/2 million legal fees for the case should be borne by New Balance suggests that the Boston based manufacturer’s case was not a frivolous one, but Nike’s greater share of the sport and leisurewear market as well as its roster of celebrity endorsements was a critical factor.
All recent news
Crown Street car park closed this weekend
5 great ways you can celebrate Chinese New Year in Liverpool 2020
Study highlights effectiveness of behavioural interventions in conflict-affected regions
Blog: How to be (or try to be) a vegan in Liverpool
Betting bribes and mental health
Front page of our News site this morning 📰
New Centre of Excellence in Infectious Diseases Research (CEIDR) launches, why behavioural interventions work and the connection between betting bribes and mental health
Find it all here 👉 https://news.liverpool.ac.uk
Did you catch our very own Prof Calum Semple on #BBCNewsNine this morning talking with @annita_mcveigh about the #coronavirus? #amazingstaff #experts https://twitter.com/annita_mcveigh/status/1219918071139381249
Another busy morning in #Liverpool. Delighted to open the new @CEIDR_Liverpool #AMR laboratories, funded by @NIHRresearch. A fantastic collaborative effort between @LivUni & @LSTMnews.