Adidas and Juventus, the high-ranking football club of Turin, Italy, have revised and extended their partnership. The current deal was going to run from 2015 to 2021, over six seasons. The new deal will go into effect in 2019 and run for eight seasons until 2027.
Adidas will serve as technical partner to all Juventus teams for a minimum fixed consideration of €408 million, exclusive of additional royalties beyond a threshold of sales and sports performance bonuses. Acknowledging the high performance and visibility obtained by Juventus as a brand, Adidas has added a bonus of €15 million for 2018.
When it took over the contract from Nike in 2015, Adidas had pledged to pay €140 million to the team through 2021. The new guaranteed annual fee of €51 million gets Juventus close to what Puma is paying for Manchester City, but still below those that Adidas is paying for Manchester United (€85 million) and Real Madrid (€110 million) and what Nike is paying for Barcelona (€83 million).
A major contribution to Juventus' popularity has come this season from its acquisition of Cristiano Ronaldo, the 33-year-old Portuguese forward who previously played for Real Madrid, another team sponsored by Adidas. His hiring has led to a big boost in Adidas' sales of Ronaldo jerseys.
While still wearing Adidas' jerseys on the pitch, Ronaldo wears Nike's cleats under a separate contract which is reportedly worth up to €40 million a year. He has 149 million followers on Instagram, according to Talkwalker, resulting in very high level of interactions with Nike and the teams that he has played for.
Juventus is currently the #1 football club worldwide, according to the Football Database, coming ahead of Barcelona, Liverpool, Paris Saint-Germain and Manchester City.
Liverpool's high ranking has induced the club to ask for a big raise in its sponsorship contract with New Balance from £45 million a year to more than £75 million (€83m-$96m), according to the Liverpool Echo and the Daily Mail, threatening to open itself up to competing offers. The deal with New Balance began in 2015 and is set to expire after the 2019/20 season.