Barcelona Nears Groundbreaking £171m Kit Sponsorship Deal with Puma, Facing Hurdles with Nike

Spanish football giants Barcelona are reportedly on the verge of securing a record-breaking sponsorship deal with Puma, potentially becoming the most lucrative kit sponsor arrangement in football. However, complications arising from their existing contract with Nike pose a significant challenge.

As per reports from Sport (via Forbes), Barcelona and Puma are in advanced talks, with the proposed deal estimated to be worth around €200m (£171m) per season. This historic contract guarantees a fixed amount of at least £98.2m annually for Barcelona, with the potential to escalate to the full £171m based on meeting various incentives.

Despite the promising negotiations, Puma has made it clear that they will not formalize any agreement until Barcelona severs ties with Nike, their current kit supplier. Barcelona’s current deal with Nike, in place since 1998, is valued at approximately €105m (£90m) per season, potentially rising to €155m (£132m) with bonuses.

The primary obstacle lies in Nike’s apprehension, anticipating losses of €350m (£300m) if Barcelona terminates their contract in the coming months. Barcelona is navigating a delicate situation, engaging in discussions with Puma while concurrently attempting to resolve issues with Nike. Puma has indicated a willingness to offer a bonus to expedite the termination of the contract with Nike.

Puma, known for sponsoring Premier League champions Manchester City, has a track record of substantial kit deals, having agreed to pay approximately £650m to Manchester City over a ten-year period starting in 2019.

Real Madrid currently holds the title for the most lucrative kit deal in football, securing over £1bn in their eight-year contract with Adidas, effective from 2020. The potential Puma deal with Barcelona, at £171m per season, could surpass Real Madrid’s £102m figure, making it the most significant kit sponsorship deal in football history.

Barcelona, grappling with well-publicized financial challenges in recent years, sees this sponsorship opportunity as a crucial avenue to become the highest-paid club globally in terms of kit sponsorship. The urgency to finalize the deal is palpable for Barcelona, even if it involves navigating a delicate exit from their longstanding partnership with Nike.

The coming months will be pivotal in determining whether all parties can reach a consensus, with keen interest surrounding potential compromises and fees that might be negotiated.