Bayern Munich's Adidas Kit Deal: Time for a Review?
- Current Contract Position: Bayern Munich's Adidas contract, signed in 2015 and valid until 2030, is valued at approximately €65 million annually.
- Market Evolution and Contract Disparity: Bayern's Adidas deal is significantly lower than those of Adidas peers like Real Madrid and Manchester United, despite Bayern's similar revenue from kit and merchandising.
- Future Options: Bayern may consider a mid-term renegotiation of its Adidas contract to secure more favorable terms, as other elite clubs have done.
In the ever-evolving landscape of football kit manufacturing deals, should Bayern Munich's long-standing partnership with Adidas come under scrutiny?
Current Contract Position
Bayern Munich's current supplier contract runs until 2030 and is valued at approximately €65 million annually. The company's existing deal with Adidas, signed in 2015, is valid for 15 years.
However, now 10 years later, despite Bayern's consistent on-field success and commercial growth, Bayern's kit deal is significantly lower than other Adidas Elite Club peers, particularly Real Madrid and Manchester United. Real Madrid and Manchester United both get at least €100 million annually from Adidas - €35 million more than Bayern.
Meanwhile, revenue from overall Kit and Merchandising is higher for Bayern than for Manchester United and just slightly lower than Real Madrid's. This suggests that Bayern either has some bonuses or favorable measurements in the Adidas deal, or, more likely, Bayern just sells a lot more merchandising than the other teams and, therefore, make up the gap.
The Unique Bayern-Adidas Dynamic
Unlike standard kit manufacturing arrangements, Bayern Munich's relationship with Adidas transcends typical sponsor-club dynamics. Adidas holds an 8.33% ownership stake in the club. This shareholding element adds complexity to any potential negotiations or changes.
Market Evolution and Contract Disparity
Recent developments in the football kit manufacturing sector highlight growing disparities:
- Elite clubs are securing increasingly lucrative terms
- Bayern's €65 million annual revenue appears below market rate for a club of its stature
- The 15-year contract duration (2015-2030) may limit flexibility in adapting to market changes
- Competing clubs such as Barcelona have demonstrated the ability to negotiate more favorable terms
Future Options
Given the contract's duration and complexity, Bayern might consider a mid-term renegotiation, as done by FC Barcelona, Manchester United, and other clubs.
The current terms appear increasingly modest for a club of Bayern's stature. The €65 million annual value falls short of market-leading deals secured by peers of similar standing. As we approach the final third of this long-term contract, we would not be surprised to see an early extension with better conditions soon.
Another long-standing Adidas team also had a very long partnership with Adidas - the German national team. Germany decided to switch to Nike, who pay more than €100 million per year - double what Adidas paid...
Do you think Bayern Munich will negotiate a better deal soon? Let us know in the comments below.
