FC Barcelona is contemplating a groundbreaking and unprecedented move in world football by possibly severing ties with Nike, its kit supplier since 1998, after failing to reach a desired agreement.
Barcelona has consistently asserted that the club does not receive fair compensation from Nike. The current arrangement, which runs until 2028, involves Nike paying $167.5 million annually to manufacture and distribute Barcelona's jerseys and other merchandise.
Typically, the kit manufacturer retains a large share of the revenue from the products sold, offering the club a share ranging from 7.5 to 15 percent in most cases.
Given Barca's huge global fanbase, they might speculate that the amount they currently receive is way less than what Nike is making off their brand. Due to this, the club is reportedly considering producing its own jerseys to keep 100 percent of the profits.
Barcelona is set to decide within this month but is still expected to wear Nike kits for the 2024-25 season.
3 reasons it is bad idea for FC Barcelona to split from Nike and make own jerseys
1. Barcelona would have to make products beyond jerseys
In addition to the official match and fan jerseys, Nike produces a range of other products featuring the Barca brand, including hats, bags, accessories, and various apparel items such as t-shirts, jackets, tracksuits, and even limited edition shoes.
While Barcelona currently sells its branded apparel and merchandise through local stores in Spain and its website, it is not as big as the Swoosh brand's collection.
Leaving Nike would require the club to take on a more extensive role in the production and distribution of other products on a worldwide scale, given that they would be the only official source of the club's merchandise.
2. Worldwide distribution would be a nightmare
Ensuring official Barca merchandise is accessible to their extensive global fanbase, particularly for arguably being the world's most supported team, poses a challenge.
Besides its website, which only delivers to select European countries, Barcelona operates 16 official physical stores in Spain. Meanwhile, Nike has over 1,000 retail stores worldwide, selling their products in 170 countries.
To enhance accessibility, the club may need to expand its distribution scale significantly or consider strategic partnerships, such as collaborating with retailers like Fanatics in the United States to make their products more readily available to fans worldwide.
3. Player perks would be gone
If Nike were to part ways with Camp Nou, it could also impact the players, limiting their worldwide exposure through Nike advertisements and potentially affecting their access to the latest boots and other sports technology associated with the brand.
Nike's sponsorship of FC Barcelona extends beyond the men's first team to encompass various other aspects of the club. This includes support for the women's team and the basketball team and the provision of uniforms for La Masia, which is Barcelona's youth academy.
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