Liverpool: New Balance open legal dispute to halt club's new £70m Nike deal
Liverpool has confirmed that their own kit sponsor, New Balance, have commenced legal proceedings, claiming they have the legal right to match Nike's offer.
Liverpool has been dragged into a legal dispute with its current shirt sponsors New Balance that could potentially put the club’s lucrative new kit deal with Nike into jeopardy.
Liverpool’s six-year contract with New Balance, worth £45 million a year (51 million euros), is set to expire at the end of the season, with the club’s owners understood to be close to agreeing a new deal with Nike worth £70 million annually.
However, New Balance have opened court proceedings against the club, claiming that it legally has the right to match Nike’s £70 million offer, as stipulated in a “matching clause” in the contract between the two parties.
New Balance statement on Liverpool deal
"As a long-standing and committed sponsor, we are keen to continue our strong partnership with Liverpool Football Club and renew our agreement in 2020. In line with our current contract, we have matched the offer made by Nike,” read a New Balance statement issued to The Athletic.
"As part of the contract renewal process, LFC has called into question elements of the agreement and as such we are asking the courts for clarity on this case. Both we and the club are keen to resolve any contractual challenges as quickly as possible and have agreed to an expedited process in the courts."
This Tuesday, a spokesperson for Liverpool FC confirmed to Sky Sports that New Balance had “commenced a legal dispute against the club”, but added that it was not willing to make any further comments on the matter while the proceedings are ongoing.