Nike extends Paris Saint-Germain partnership into 2032
today Jun 29, 2019
Paris Saint-Germain announced on Friday that it has extended its partnership with American sportswear giant Nike into 2032, signing the "biggest sponsorship agreement" in the history of the French football club, which is keen to boost its merchandising revenues in order to better cope with UEFA's Financial Fair Play Regulations.
The specific figures behind the partnership, which was set to end in 2022 before its extension, have not been disclosed. According to RMC Sport, PSG should receive around 75 million euros per season through the new deal, compared to a previous figure of 25 million.
Indeed, a source close to the club contacted by AFP confirmed that the partnership will generate a "much higher sum" than the deal signed by PSG in February with Accor Group, a new kit sponsor whose financial support is estimated to total around 55 to 70 million euros a year.
According to the same source, the deal is "effective immediately" and places PSG among the "Top 5" big European clubs in terms of sponsorship. By way of comparison, FC Barcelona and Real Madrid receive around 150 million and 120 million euros a year, respectively, from their kit providers, Nike and Adidas.
"The agreement represents a very important milestone, reflecting what the club has become on the global stage and the great ambitions we have for the future," said the president of PSG, Nasser Al-Khelaïfi, in a press release.
A partner of PSG for three decades, Nike had already intensified its relationship with the French club through an "exclusive" partnership with its Jordan subsidiary last September.
"Thanks to Nike and Jordan we have had a record season for shirt sales, one of the biggest in European football," added Al-Khelaïfi, who hopes to continue "this fast-paced growth and break yet more new ground in the years to come, especially in football’s emerging markets."
"Paris Saint-Germain is a powerful global brand and this deal further cements Nike’s position as leaders within the football industry," stated Bert Hoyt, VP of EMEA at Nike. "We are delighted to extend one of the strongest partnerships in all of sport."
According to a study published by Deloitte in January, PSG is the sixth richest club in the world. But with revenues of 551 million euros in the 2017-2018 season, the club is still a way behind Real Madrid, which reported 774 million euros in the same period.
In March, PSG won a legal victory against UEFA's Financial Fair Play Regulations, which prevent clubs from spending more money than they earn through their own means, when the Court of Arbitration for Sport (CAS) ruled in favour of the club's appeal to prevent UEFA from reopening a case against it.
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