It is expected that Cristiano Ronaldo’s move to Manchester United will increase the club’s jersey sales. However, the big winner of this transfer is Adidas, the brand that produces the equipment for the English team.
Manchester United paid around 15 million euros to Juventus for the signing of Cristiano Ronaldo. As soon as the transfer was confirmed, there were many reports that the sale of jerseys by the Portuguese ace would be enough to pay for the purchase. However, most of the revenue from the equipment goes to the company that produces them, in this case, Adidas, according to the agreed values.
The club signed a contract in 2014 with Adidas, valid for 10 years, in which the brand paid around 870 million euros for the right to produce the equipment. This was the most profitable link in football history. “The values have already been agreed with the manufacturer and the club, so most jersey sales go to the producer,” sports economist Dan Plumley told Radio 1 Newsbeat.
“It is highly unlikely that the percentage of jersey sales will be above 10%,” explained Plumley, adding that the club is expected to receive around €5 per shirt sold. These costs, on average, around 90 euros, so Adidas keeps the vast majority of profits from each piece sold.
Source: with agencies