Real Madrid are close to securing a new, €100 million (US$113 million) per season kit supplier deal with German brand Adidas, according to Spanish publication AS, reports, www.sportspromedia.com/.
Real Madrid's current contract with Adidas runs until 2020, but having been signed in the 2011/12 season its returns are now grossly outweighed by rival deals across Europe.
Under the current terms, Real Madrid should receive €40 million (US$45 million) a season from Adidas. However, the club have reportedly only been receiving only €35 million (US£39.5 million) a year after requesting an advance of €40 million (US$45 million) from Adidas in the early stages of the arrangement.
Real Madrid and Adidas were close to signing a new deal in 2015 with the two parties apparently agreeing a €1 billion (US$1.13 billion) ten-year contract. However, the renewal fell through when Adidas proposed a fixed €70 million (US$79 million) a season arrangement with the remaining fee variable based on sales.
Under the terms of the upcoming new agreement, Real Madrid have apparently insisted on a fixed fee of €100 million (US$113 million) a season with up to an additional €50 million (US$56.5 million) in variables based upon branded merchandise sales.