It’s been a good week for Liverpool with both their players and legal teams returning to the city with big wins.
Liverpool has won their high court battle severing a multi-million pound sponsorship deal with American kit suppliers New Balance. The club was sued over its refusal to honor the terms in its £40 million deal with the company which was due to expire after this season.
A clause read that New Balance were entitled to renew its sponsorship if it matches the terms of any competitor’s offer to sponsor Liverpool kit. But Liverpool has argued that they can’t match the marketing and distribution of Liverpool products in a £30 million a year offer put on the table by Sportswear Giants Nike.
Liverpool argued that New Balance had not matched Nike’s offer, which includes a commitment to sell licensed products in “not less than 6,000 stores worldwide, 500 of which shall be Nike owned”. New Balance responded claiming they have “approximately 40,000-odd retail doors globally”.
Guy Morpuss QC representing Liverpool said that the claim was “really an attempt by New Balance to use a matching clause for a purpose for which it was never intended,” and that “The idea that New Balance would even get football kit into anything close to those 40,000 stores is utterly fanciful.” This being because their variation “inconsistent with New Balance’s historic performance.”
A spokesman for Liverpool FC said: “Liverpool FC is pleased with the Judge’s decision to rule in favor of the Club following the legal dispute with our current kit supplier, New Balance. We will continue with New Balance for the current season, in combination with preparing next season’s Liverpool kits with our new supplier. “
The proposed Nike deal would mean Liverpool would be represented by one of the powerhouses of their field and with that would come plenty of great brand and sponsorship possibilities. I’m sure Liverpool fans will be licking their lips at the kits coming their way if Nike’s portfolio this season is anything to go by.
The deal is yet to be announced as official but is expected to in the coming months.
(Picture by Blogtrepreneur under CC agreement)
