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England on course for World Cup bonus from Nike as £400m deal laid bare
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- England on course for World Cup bonus from Nike as £400m deal laid bare
photo by Mike Kemp/In Pictures via Getty Images
England are three wins away from a first World Cup since 1966.
Norway and Erling Haaland stand in their way first; if they navigate that challenge, a semi-final with Argentina likely awaits; then, France , Spain or Belgium in the final in New Jersey.
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When Bobby Moore lifted the Jules Rimet trophy at Wembley 60 years ago he did so in an unbranded shirt. It wasn't until 1974 that they struck their first kit deal, a five-year contract with Admiral worth about £10,000 and a 10 per cent royalty on units sold commercially.
Fast forward another 52 years and kit deals often span decades, involve global distribution networks and are worth hundreds of millions of pounds.
Photo by Eddie Keogh – The FA/The FA via Getty Images
These are complex agreements, both in terms of the logistics and contracts. England's deal with Nike was renewed in 2016, taking the pair's partnership to at least 2030. Over the duration of the agreement, the American sportswear firm will pay the Football Association in the region of £400m.
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And, as football finance expert Professor Kieran Maguire explains in exclusive conversation with HITC , the contract almost certainly includes a hefty bonus if Thomas Tuchel's side win the World Cup this summer.
Football finance expert explains England's kit deal with Nike
Most kit agreements are complexly structured, a patchwork of fluctuating royalties depending on sales totals, a linear upfront fee, inflation-indexed escalator clauses, rebates and performance-related bonuses.
If England – who will wear Nike's white home kit against fellow Nike-sponsored Norway in Miami on Saturday – lift the trophy on 19th July, a significant uplift will kick in, says Maguire.
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"There is always a reward element in a major contract like England's with Nike," the University of Liverpool football finance lecturer and Price of Football podcast host tells HITC .
"That's the same at domestic and international level. Nike cannot afford to lose the deal. If England go on to win this tournament, the kit will be nearly as iconic as Bobby Moore's red jersey in 1966 because people will want a memento. That will have a positive impact for Nike in terms of sales of this kit but also going into Euro 2028, because there will be a feel-good factor, plus England are the hosts too.
Photo by Dominika Zarzycka/SOPA Images/LightRocket via Getty Images
"Nike and the FA will have embedded clauses into the contract to make sure they are rewarded for success at the World Cup.
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"The biggest challenge for both the FA and Nike is the increased prevalence of pirated kits. For consumers, you can now go and pay £10-12 for a fake replica. The scarcity benefit that Nike had for England kits because they had licensed the IP is being eroded by the pirates. 90 football fans out of 100 know the name of the website they can use to buy the fakes – the site is even on the App Store. That tells you how confident the pirates are."
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