Football Business : PSG signs largest ever merchandise deal with Fanatics

French Ligue Champions Paris-Saint Germain (PSG) have sealed a ten-year, multi-million e commerce, manufacturing and licensing deal with merchandise specialist Fanatics.

The new partnership promises provide PSG fans worldwide with the most comprehensive array of merchandise ever offered through Fanatics’ vertical commerce model, with the aim of making the club’s merchandising business one of the biggest in sport.
PSG signs largest ever merchandise deal with Fanatics

Terms were not announced, but people with knowledge of the deal said, the 10-year pact is the largest financial deal the 25-year-old retailer has struck with a sports team.

The agreement also replaces the e-commerce only agreement and gives Fanatics more control of the club’s manufacturing and “the master licensee” for Paris Saint-Germain team merchandise. “The expansion will propel the Paris Saint-Germain merchandising business into one of the biggest in the world of sport,” the company said.

The deal, a massive expansion from the previous ecommerce only agreement between the two parties, will now see Fanatics gain a broader set of rights across e-commerce, as well manufacturing, and management of PSG’s merchandise operation. The overarching contract also covers club apparel, headwear and hard goods licensing programme, designed to create a wider range of PSG products.

Fanatics executive chairman Michael Rubin told CNBC that the agreement is extremely “exciting.” He said it allows the company “to partner with one of the most progressive clubs worldwide that, like us, is consistently thinking about new and creative ways to grow their brand and transform the direct-to-consumer experience.

“PSG is now our biggest global football partner, and I can’t wait to begin our work together,” Rubin added.

PSG, which has more than 5,000 licensed products, said it wants to double its total licensees over the next two years with the new deal.

“This agreement marks yet another new chapter in Paris Saint-Germain’s ambitious growth story,” PSG Chairman Nasser Al-Khelaifi told CNBC in an email. “In Fanatics, we are partnering with the global leader of sports merchandising, a collaboration which will bring with it a vast array of unique commercial opportunities across the globe.