FC Barcelona is on the verge of making a historic decision by severing ties with Nike, ending a long-standing alliance that dates back to 1998.
It was during the tenure of the board chaired by Josep LluÃs Núñez that a contract was inked with the American multinational to produce the club’s shirts.
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Barcelona Contemplates Future Partnerships Amid Dissatisfaction with Nike
Since the distant year of 1998, both entities have periodically revisited their alliance, originally slated to extend until June 30, 2028. Barcelona’s dissatisfaction with Nike has been brewing for months, prompting the club to explore alternatives to the Portland-based brand. Puma has emerged as a highly interested contender to replace Nike, offering slightly over one hundred million euros per season to Barcelona, surpassing the approximately 85 million euros annually received from Nike. However, there remains a third option to consider.
Club president Joan Laporta disclosed in a recent interview on RAC1 that the creation of Barcelona’s own brand is under consideration. Following recent discussions with Nike that yielded unfavorable outcomes, the prospect of Barcelona introducing its own line of shirts for the upcoming season appears increasingly favorable. This initiative would be facilitated through BLM, the current manufacturer and distributor of all non-sports clothing and other Barcelona-branded merchandise. Additionally, a partnership with a major multinational corporation would be established to oversee the manufacturing and distribution of the shirts.
The definitive decision regarding Barcelona’s future partnership is slated to be made in March, although sources close to the club suggest it could come as early as next week. Barcelona is awaiting further communication with Nike’s representatives. However, the club is not particularly optimistic about the outcome and doubts that the American firm will agree to Barcelona’s demands, which include a higher financial package than what is currently in place.
FC Barcelona Poised to Terminate Nike Partnership and Forge Ahead with In-House Branding
In the event of no improvement in negotiations, FC Barcelona is prepared to terminate its relationship with Nike, a historic decision championed by President Laporta. The club is also keen on pursuing the creation of its own brand, with Laporta personally engaging with various companies to explore this possibility. According to sources within Barcelona, Laporta’s boldness and willingness to take risks make him the club’s most steadfast advocate.
Should Barcelona proceed with terminating the contract with Nike, a scenario that appears increasingly likely, the club intends to handle the situation amicably. Failing to do so could potentially lead to significant legal repercussions for Barcelona, as Nike could pursue legal action against the Catalan entity for breach of contract. In such a scenario, pending a ruling, auditors may require the club’s board of directors to provision a substantial amount, posing financial challenges for FC Barcelona in future budgets.
At FC Barcelona, the Nike contract has been meticulously examined for months, with the belief that a legal dispute with the Portland-based multinational could potentially be won, although an amicable separation is always preferred. One favorable aspect in favor of winning such a trial is that Barcelona would not merely switch from Nike to another brand, but instead would embark on establishing its own brand.
The impending trial serves as a significant factor in President Laporta’s preference for in-house manufacturing. However, an even more compelling reason is the club’s conviction that with its own brand, it could generate significantly more revenue. While there would be costs associated with production and distribution, all proceeds from sales would directly benefit the club, effectively transforming the shirt into a powerful new revenue stream.
The shirt debate took center stage during the board of directors meeting held on Wednesday, February 28th, with the understanding that the final decision must be reached in the coming days. FC Barcelona is determined to sever ties with Nike and commence manufacturing its own shirts starting from the next season.
