AC Milan has closed the kit partnership deal with Puma at an annual contract for $14 million.
Missing out on World Cup berth is having its effect commercially on Italian soccer and Serie A clubs. It has been reported that 18-time Serie A champions, AC Milan have to take a cut in their annual kit deal. Though after months of negotiation Milan managed to seal $14 Million annual deal with Puma, the deal value is approximately $9 million less than what the incumbent partner Adidas would pay to the club annually.
Adidas has been club kit partner for last two decades and the 20-year association had been one of the longest standing of its kind in European club soccer. Milan were also negotiating with American brands New Balance and Under Armour before sealing the deal with the German sportswear brand Puma. Though the deal with Puma is less than Adidas deal, AC Milan can take solace in the fact that this performance-oriented deal will give them better bonuses and add-ons.
Puma is also a kit supplier for Italy’s men and women national teams, German side Borussia Dortmund and Premier League outfit Arsenal. Arsenal gets, $40 Million annually for the deal similar to the one signed by AC Milan.
It is to be noted that AC Milan has completed a takeover earlier this year with Chinese investors buying the club for $833 million (£630m).