Chelsea are set to double their earnings from kit sponsorship after signing a deal worth £60 million a year with Nike, if reports from England are to be believed.
The Blues had recently announced they will be breaking off from their current kit sponsors Adidas, after completing just four years of the decade-long deal. Chelsea have also had to pay a sum of £40 million to Adidas to dissolve the deal, which is now set to last till the end of the 2016/17 season.
However, this payout is unlikely to hurt their pockets, as they have already signed a 10 year deal worth £600 million with Adidas’s rivals Nike, according to The Telegraph. This means that the Blues will double their money from the kit sponsorship deal, earning £60 million per year.
This deal makes Chelsea one of the highest earners in the Premier League. While they are set to earn around double the amount as that of Arsenal (Puma — £30 million) and Liverpool (New Balance — £28 million), the Blues will get almost six times more than what Manchester City (Nike — £12 million) earn from their kit deals.
However, Manchester City’s deal with Nike is set to come to an end in 2019, which is when they can push for more competitive rates.
Chelsea can make expensive signings in spite of UEFA Financial Fairplay
The UEFA Financial Fairplay rules have been imposed on football to ensure that clubs can try to balance their books instead of just going on a spending spree. However, UEFA have recently amended the rules of the Financial Fairplay to allow clubs show up to £23 million loss on their balance sheet in a duration of three seasons.
Chelsea’s failure to qualify for the Champions League next season means that the Blues are set to lose out on around £40 million in 2016/17. However, with the Nike deal set to kick-in from the 2017/18 season, Chelsea will not have to cut down on their expenses in the upcoming transfer window.
The current three-year term includes the 2015/16, 2016/17 and 2017/18 seasons, which means that Chelsea will receive the first injection of the big money deal well before the three year term ends.
The fact that they will not have to hold back on their spending this summer will be hugely beneficial to the club, as incoming manager Antonio Conte reportedly wants to sign a few top class players to improve the strength of the squad.
