Real Madrid’s Adidas Contract Worth €100 Million A Year

Der Spiegel has published documents from Football Leaks [source: AS] on Real Madrid’s contract with Adidas. Signed in 2015, the deal, which will expire in 2024, is reportedly worth €1 billion in total. This sum averages at roughly €100 million per year, which is split up into two different fees.

The first fee, is a fixed payment of 70 million euros and the second, is a conditional sum which provides Real with 22.5 percent of all sales of their branded merchandise.

Adidas has also committed to paying several bonuses if Real experience title success. If Los Blancos win the league, Adidas will pay €2.5 million; a bonus that will rise by an additional €1.5 million after 2020. If Real win the Champions League, Adidas will hand over €5 million, which will rise to €7 million if the feat is repeated after 2020.

While this is may seem like a ridiculous amount of money for Adidas to part ways with, the sports apparel company will get much in return. Besides benefitting from a favorable percentage on the sale of Real’s branded merchandise, they also “have secured the right to organize Real Madrid’s traditional title celebrations at the Cibeles fountain in central Madrid.” This will provide the company with even more exposure and therefore greater revenue.