After run of poor results in major tournaments it was feared that Nike won’t renew their kit deal with England national team which runs out in July 2018 after the world cup in Russia. But both parties had been in negotiations for best part of last 6 months and they finally reached an agreement to extend the control till 2018. The new deal comes into play after the Russia world cup in August 2018 and will be valid till 2030 World Cup. However Nike managed to negotiate an incentive based contract where results on the pitch will have major impact on financial details.
Financial Penalties: With the new contract Nike are suppose to pay £33 million a year to England FA but if England fail to qualify for any major tournament (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 period of until England qualify for the major competition again. In case if England fail to qualify for two consecutive major tournaments the financial penalty will increase to 50% on yearly payments.
However if England were to reach semifinal or beyond in any of the major tournaments they will get 30% increase on yearly payments. The new deal put England third on the list of most lucrative national team kit deals. Germany’s Adidas kit deal is worth a wooping €50 million a year till 2022. While Franch Nike deal is also more lucrative than England stands at €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.|