£60m Adidas deal speaks volumes as Liverpool follow Newcastle United lead

Newcastle United's top four-chasing rivals Liverpool look set to follow in the Magpies' footsteps by striking a lucrative deal with Adidas in the coming months.

The Reds' five-year association with manufacturing rivals Nike is approaching its end, with Adidas poised to swoop in and strike a £60m-plus agreement with the Merseyside outfit in a big boost to Liverpool's coffers. The club's current contract sees them pocket just £30m-a-year, plus a decent revenue cut on all club and Nike merchandise sold, compared to the £60m earned by Arsenal through their own Adidas agreement and the £65m Manchester City earn from their Puma deal.

Newcastle moved to bring Adidas back to Tyneside over the summer, striking a multi-year deal, understood to be worth around £30m-a-season. This, on top of the mammoth merchandise sales seen in the north east of late and the new global exposure on offer in recent months.

Adidas' home, away, third, training and retro offerings have all gone down a treat with the Newcastle faithful, with the club's official store all set to open in the coming days to provide another revenue boost.

Liverpool's move to the German company is a reminder of why Newcastle acted so swiftly to reunite with Adidas after well over a decade apart. The Anfield outfit are expected to double their yearly revenue from the manufacturing deal alone, despite already enjoying one of the most profitable kit agreements in Europe.

Meanwhile, Liverpool's decision to ditch previous manufacturer New Balance for a move to Nike was motivated by their desire to 'better serve the global market' - something Newcastle specifically sought to capitalise on by moving to Adidas.

Liverpool are already supported globally and have a significant presence in all corners of the world. Newcastle, meanwhile, are seeking to emulate their 'Big Six' rivals - not only on the pitch but off it too - and know how powerful these type of agreements can prove away from Tyneside.

Billboards in Dubai, Saudi Arabia and Japan, showcasing Newcastle's new Adidas gear, have adorned some of the busiest streets in Asia in recent months as the club seek to broaden their horizons and attract more international followers. “Adidas is committing to supporting our growth globally and from a brand perspective, it will be a watershed moment for the club," Peter Silverstone, Newcastle's Chief Commercial Officer, said earlier this year.

Newcastle need all the help they can get when it comes to bolstering their revenue, allowing them in turn to spend similar quantities to their Premier League rivals. That cause will have been greatly boosted with Adidas kit launch over the summer, when excitement reached fever-pitch over the club's new era with Adidas.

“I think one of the most underrated things about a kit launch is how it can help establish a narrative for a club’s whole season,” Sam Diss, a football branding consultant, told GQ over the summer. “It’s seen by some as just a marketing moment, a way to relieve fans from a few more quid, but a launch really can be a way to codify what you want fans to feel, what you want the club to represent.”

Once the Liverpool agreement has been struck, Adidas will be responsible for the kits of eight Premier League sides [Arsenal, Aston Villa, Fulham, Leicester City, Manchester United, Newcastle and Nottingham Forest], reinforcing why the Magpies were so keen to revive a popular relationship with the merchandising giants.

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