England Nike New Kit Deal Financial Details (Revealed)– After the spate of pathetic results in a number of major tournaments, the speculation was rife that Nike may not renew their kit deal with England national team. The team of England will be running out in July, 2018 after the World Cup in Russia. Interestingly, both the parties were in negotiations for the last 6 months. After a series of negotiations on talking tables, they finally agreed to extend the deal. The new deal comes into play after the Russia World Cup in August, 2018 and will last till 2030 World Cup. But, this time the sports kit giant Nike has managed to negotiate an incentive based contract where the results on the pitch will have a major impact on the financial details.
Nike to Pay £33 million a year to England FA
As per the new contract, Nike is supposed to pay £33 million a year to England FA. But, it is not a sweeping payment. It is simply because if England fails to qualify for any major tournament, the World Cup or Euros, financial penalties will come into play where England FA will take a 30% hit on their yearly payments from Nike for the period till England qualifies for the major competition again. But, if the contrary becomes correct, that means if England fails to qualify for the two consecutive major tournaments, then on yearly payments, the financial penalty will surge to 50 %.However, if England manage to reach in the semifinal or beyond in any of the major tournaments, then it will get 30% surge on their annually payments.
Third Most Lucrative national Team Kit Deal
The new deal has placed England third on the list of the most lucrative national team kit deal. Germany’s Adidas kit deal is worth a whooping €50 million for six years that is till 2022. However, it is important to know that the French Nike deal is also even more lucrative than that of England with astronomical €42.6 million a year.
|CONTRACT||New deal comes into play from August 2018 and will be valid till July 2030.|
|VALUE||Nike will pay around £33 million a year to England if minimum targets are meet (England must qualify for every major tournament)|
|PENALTIES||30% decrease in yearly payments if England fail to qualify for either World Cup or Euros. 50% decrease in yearly payments if England fail to qualify for two consecutive major tournaments.|
|BONUSES||30% increase in yearly payments incase if England reach Semifinals of any of the major tournaments.|
|CURRENT DEAL||The current deal with Nike was suppose to expire in July 2018 and England were getting £25 million a year guaranteed with this deal.|
Time Period of the Contract
The new deal will be effective from August, 2018. The time period for the validity of the deal will be up to July, 2030. Simply put, the deal will be effective for twelve years. As per the deal, Nike will be paying around £33 million a year to England if England qualifies for every tournament. That means, winning the major tournament is the criterion for making the deal effective.
The Provision of Penalties
Along with the pay out, there is also the provision for penalties. If England does not qualify for either the World Cup or Euros, there will be 30% decrease in yearly payments. The penalty will surge to 50% if England fails to qualify for the two consecutive major tournaments.
Bounty of Bonuses
Along with the provision of penalties, bounties are also very much in place in the new deal. If the team of England reaches in the Semifinals of any of the major tournaments, it will attract 30% increase in yearly payments.
The Current Deal
The current deal with Nike will be invalid after July, 2018. Under the prevailing deal, England were getting guaranteed £25 million in a year.