Adidas and Real Madrid have agreed on a new contract that extends their partnership for eight more years, through June 2028. The parties have agreed not to disclose the value of the deal. According to various sources, it is worth between €100 million and €120 million a year, but Adidas declined to comment on this or on a report that Real Madrid will get a 20 percent commission on Adidas' sales of its jerseys. It told Reuters that the reported figure of €120 million was too high.

As indicated in our previous issue, the money being offered for major properties in the football sector has been escalating. Adidas has been sponsoring Real Madrid since 1998, reportedly paying about €45 million per year under the current contract, which was set to terminate next year.

Adidas announced the signing of the new contract after the team was defeated by Ajax Amsterdam in Uefa's Champions League, whose final will be played in Madrid on June 1 between two English clubs, Liverpool and Tottenham Hotspurs. Real Madrid has been the winner of the Champions' League 13 times, four of them in the last five years. It has won many other tournaments as well.

Described by Adidas as a “transcultural phenomenon,” the club has more than 600 million fans in the world, a TV audience of close to one billion people and more than 320 million followers on social networks.