Spanish soccer side Real Madrid have reportedly signed a ten-year renewal with their kit supplier, Adidas.
According to German news outlet Der Spiegel, the sportswear giant will pay the La Liga outfit €1 billion (US$1.1 billion) over the duration of the contract. They will receive a fixed annual payment of €70 million (US$76 million) as well as 22.5 per cent of all sales of all Adidas’ Real Madrid branded merchandise, which is worth a further €30 million (US$33 million) million per year.
The agreement is also believed to contain performance-based incentives for the reigning European champions. Adidas will reward the 32-time La Liga winners with €2.5 million (US$2.7 million) for another national title, which will rise to €3.5 million (US$3.8 million) after 2020. Another Uefa Champions League victory, meanwhile, would see the club earn €5 million (US$5.4 million), rising to €7 million (US$7.7 million) after 2020.
Adidas is also said to have secured the rights to organise Real Madrid’s traditional title celebrations at the Cibeles fountain in central Madrid. Its famous three-stripe logo would be front and centre during the parade.
Real Madrid are currently second in Spanish soccer’s top flight, tied on 84 points with fierce rivals Barcelona but behind the Catalan team on their head-to-head record.