While it's yet to be officially confirmed, Liverpool is set to reunite with Adidas from next season. The current partnership with Nike is due to expire this summer.

This isn't fresh news. It's been widely known since late last year that the Reds planned to conclude their five-year stint with the American sportswear giant at the end of 2024/25. The new deal with Adidas is rumored to be worth over $74m (£60m/€72m) in guaranteed revenue for the club.

The figures associated with commercial income from kit partnership deals can vary significantly in reporting. For instance, the Nike deal was worth a flat $37m (£30m/€35m) annually for the Reds, but the club also pocketed a 20 per cent share of sales from Liverpool/Nike branded merchandise, a move some suggest could be worth around $87m (£70m/€84m).

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Both Nike and Puma made bids to extend their deals, but it was Adidas that ultimately won over the club. Regardless of the numbers being thrown around, the bottom line is that Liverpool believe the upcoming Adidas deal will not only boost the club commercially, but also aid in marketing Reds merchandise globally.

In truth, only Adidas or Puma had the resources to make a bid strong enough to snatch the deal from Nike. Let's not forget, Liverpool were prepared to take the matter to the High Court in 2019 to break free from their contract with New Balance, which included a clause allowing them to extend their partnership if they matched any competing offers.

New Balance did match the offer, but only in terms of guaranteed revenue. Liverpool and Nike successfully argued that the potential for additional revenue sharing, Nike's global scalability and distribution capabilities, and the brand's association with high-profile celebrities like Drake, LeBron James, and Serena Williams were all crucial factors, as highlighted during the court proceedings.

Collaborations have already taken place with basketball legend and Fenway Sports Group partner LeBron James, with the 39-year-old Los Angeles Lakers star recently spotted wearing a new Liverpool/Nike training top.

Liverpool also launched merchandise in collaboration with Nike's sister brand, Converse. The aim was to design a range that would appeal not just to die-hard Liverpool fans, but also to casual supporters and even those without any emotional ties to the club, who simply appreciated the fashion aspect of the collaboration.

In a 2023 interview with the ECHO, Liverpool's former senior vice president of merchandising, Mike Cox, shed light on the strategy behind their collaborations: "What we tried to do with the LeBron collaboration and Converse is try and marry something together that is stronger than the individual piece.

"Also, we wanted to appeal to different fans or attract new fans to the club who may not have been interested in football before but they love and follow LeBron, so the interest in the collaboration gets them to find out about what Liverpool Football Club is and to learn more about the city. From that perspective it has worked really well."

This innovative approach also influenced Liverpool's decision to part ways with Nike. Despite maintaining a strong working relationship with Nike, those in the know say that this shift signifies an advancement in Liverpool's commercial strategy, particularly regarding merchandising goals for the future.

While many clubs enter into extended contracts, sometimes spanning over 10 years, to capitalize on the financial stability and benefits such agreements offer, these long-term deals often come with penalties if the club fails to perform competitively. This is a situation Manchester United has encountered, as their deal with Adidas has suffered due to their absence from UEFA Champions League football.

The financial trajectories of Nike and Adidas have varied significantly over the past year, though it's unlikely this played a major role in the decision to change kit partners. Some have pointed fingers at former CEO John Donohoe's questionable marketing decisions, while others criticised the company for its lack of innovation.

Over the past year, Nike's stock price on the New York Stock Exchange has plummeted to $70.4, marking a nearly 33 per cent drop. Meanwhile, Adidas, capitalizing on the resurgence of retro trends, has seen its stock price increase by 50.3 per cent to €256.4 per share on the Frankfurt Stock Exchange.

Both brands are globally recognized, but when it comes to football, and Liverpool in particular, the bond between the German sportswear giant and the Reds is much stronger and has a longer history. The iconic three stripes of Adidas and the Nike swoosh are known worldwide, but those three stripes have adorned Liverpool kits during some of the most memorable periods in recent history. Adidas was Liverpool's partner for a decade from 1985/86 to 1995/96, producing some of the club's most iconic kits, including the Crown Paints and Candy designs.

Liverpool returned to Adidas from 2006 to 2012 before transitioning to Warrior Sports. However, the true potential of this partnership was likely not fully realized, especially during a time when the Reds and the Premier League's global popularity was skyrocketing, particularly in North America, and online retail wasn't as widespread as it is in 2025.

With the current surge in demand for classic kits and retro shirts among football fans, Liverpool can tap into their iconic collection of Adidas kits for inspiration. The synergy between Adidas and UK football fan culture, epitomized by the popularity of items like the Gazelle trainer, cannot be overlooked.

Considering the strength of the Adidas brand in other major markets and the potential for further expansion into the 'lifestyle brand' realm, this offers significant advantages for Liverpool as they strive to maximize their status as one of the world's most recognizable sports brands.

Just as major US sports teams have been embraced by the sports-obsessed UK fan base, where team-branded apparel is a common sight, the Reds aim to replicate this trend in reverse. They want to cultivate similar fandom in markets outside the UK while also satisfying home fans. Adidas, with its historical ties to successful periods in the club's history, has always been a fan favorite, making it an ideal partner in this endeavor.

The agreement is also anticipated to be shorter than those of their competitors, providing the club with the flexibility to avoid being tied down to current market prices for an extended period. This is a risk that others may face by not having the opportunity to explore the market when prices could potentially rise in four or five years.

The unveiling of the Adidas partnership and the initial months, during which the merchandise plans will begin to take shape, will shed light on the situation. However, it's undeniable that Liverpool will consider this a financially sound deal in the current market, with significant potential for global expansion.