The German sportswear firm has revealed the plans about the extension deals amidst some fierce competition in the European market from Nike and a resurgent Puma.
The deal, according to media reports in Europe, is worth € 1.1 billion ($1.23 bn). Adidas and Real Madrid association has been running since 1998. Real Madrid could pick up as much as €152 million ($170 mn) per year when merchandising is factored in, a massive raise over the €52 million ($58.2 mn) on their current deal and well ahead of rivals Barcelona, who are reportedly earning around €85 mn ($ 95.14 mn) per year from Nike.
“This agreement will help us to achieve our mission to be the best sports company in the world. It also underpins Adidas‘ leadership in the football category,” adidas Chief Executive Kasper Rorsted said in a statement.
Adidas last week had reported that sales fell first quarter sales in the European market have declined 3%, but said it hopes for a recovery by the end of the year as it seeks to boost sales of sports performance gear.