According to a report in Spanish newspaper Marca, if the deal goes through it will be the first time that the American sportswear giant will break into the Spanish football market. It could make the Real Madrid club the most expensive in the world too.
The report suggests that the La Liga club Real Madrid could part with Adidas if it can manage to finalise a $160 million a year deal. Adidas and Real Madrid have been partners since 1998.
Founded in 1996, Under Armour is the shirt sponsor for English Premier League football club Tottenham Hotspur since 2011. They also sponsor the shirt of Bundesliga club St. Pauli.
Real Madrid is the third largest football club in the world in terms of revenues. Its 2015-16 consolidated revenues, according to the Deloitte annual Money League report, was $656 million. It was pipped to the third place by rival Barcelona.
Real Madrid has been the top club in the world for 11 years till last year when Manchester United wrested the top spot. It is also the most valued football club in the world, according to Forbes. Its fans are located in every part of the world and it also has Cristiano Ronaldo, who has nearly 250 million followers on social networks.
At the time of announcing the 2015-16 financials, the club announced that its long term trend of generating higher cash that the year before has extended to another year. To the delight of its fans and supporters, the trend has continued uninterrupted since 2000-01 season.