Why is Barcelona considering terminating Nike contract in historical decision?

Following their La Liga title-winning campaign last season, FC Barcelona has been struggling to find consistency in their league title defense. Amid mounting concerns over the team’s performance, manager Xavi announced his decision to step down at the end of the season, citing that his work was not valued enough.

Meanwhile, the club is facing ongoing severe financial challenges and off-field management issues, such as the National Court imposing a €23 million fine and La Liga enforcing a €66 million salary reduction on the club. Amid this, the club is considering parting ways with its sponsor, Nike.

Why is Barcelona angling towards terminating Nike deal?

Barcelona is on the path to ending its 26-year-long partnership with American sportswear giant Nike, which has been producing the club’s kits since 1998 when they signed their first contract with the La Liga side. It is believed that recent financial disagreements are believed to have deepened the rift between the two parties.

Reportedly, the Catalan club has begun exploring options for a new kit manufacturer, and even considering creating their own brand to produce their kits. In 2016, the contract between La Blaugrana and Nike was renewed on a 12-year term, set to last until 2028, and is valued at nearly £130 million annually.

Last month Barca president Joan Laporta accused the multinational sports brand and prolonged kit sponsor of breaches in contract and publicly expressed his concerns about the situation. Laporta told RAC1 per Marca, “We have some concerns and a situation that is not what we wanted. we think they have breached the contract.” 

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Via-FC Barcelona

He added, “We are talking to Nike. In times of difficulty, they have not shown themselves. In words, yes. When we have shown our teeth, they have made the effort but it is not enough. It is at this point that we want to find the best solution.” 

How much does Barcelona get from shirt sales compared to other top clubs?

Since teaming up in 1998, Barcelona and Nike have become almost synonymous with each other, with Barcelona emerging as one of Nike’s most significant sports team partnerships. Over two decades, they have produced some of the most iconic kits in the sport, worn by the greats of the game. 

Despite the recent rift between them, their deal remains one of the most lucrative. Barcelona tops the charts in shirt sales across Europe.

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Witnessing a leap in figures from €119 million in 2020 to a whopping €179 million in sales in 2023, surpassing Real Madrid, Bayern Munich, PSG, Liverpool, and Manchester United on the list, Barca has been making some really large figures from kit sales.

Overall, the Spanish club ranks fourth among clubs generating the highest revenue last year, achieving nearly €800 million. This total encompasses all revenue streams, including broadcasting, ticket sales, brand deals, kit sales, matchday revenue, and more.


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