When famed English Premier League club Chelsea tore up its shirt sponsorship with adidas last week many thought the club was mad.
Chelsea pulled the pin on the deal – worth £30 million ($A58.8 million) a season – with six years still left to run on the contract and happily paid the £40 million ($A78.5 million) ‘get out’ clause to do it.
The famed London club believed its shirts were worth twice what the German sportswear manufacturer was paying, and it appears it was spot-on.
The UK’s The Telegraph is today reporting that Nike is the new kit sponsor and is set to pay a staggering £60 million ($A121 million) a season for the next 10 seasons for the rights to the famed blue kit.
And it’s clear the £40 million Chelsea had to pay to get out of its adidas contract will look like chicken feed as it now stands to make an extra £180 million ($A363 million) more had the original deal gone the distance.
The Telegraph is reporting that the new deal was thrust onto the Club after a rather dismal 2015-2016 season where it finished ninth and had no success in the spin-off European tournaments which all led to a significant hit to the bottom line.
When it comes to EPL teams if they fail to perform or, heaven forbid, get relegated then the sponsor has a ‘get out’ clause. Chelsea’s failure to qualify for the European Champions league last season reportedly cost the club £40 million ($A80.7 million) in sponsor bucks.
However, the new Nike deal is far from the EPL’s biggest. That honour still goes to Manchester United who get £175 million ($A353 million) a season from adidas.