Word-leading sports marketing advisor explains Liverpool's current Nike - New Balance situation
- NB have filed the dispute at court not willing to quit their partnership with Liverpool.
- Tim Crow, the advisor, says that it's likely that the club will simply pay to get out of the deal.
- Such precedents have previously occurred, with Chelsea, for instance.
- However, the ourcome will highly depend on the details of the current contract.
- It will make it much harder for LFC if the court finds out that NB have the right to automatically trigger the extension clause.
Recent reports suggested that New Balance are willing to take legal actions against Liverpool amid rumours of the new kit deal being agreed between the Reds and Nike.
NB are adamant they have triggered their right to match Nike’s offer. The current kit sponsors believe they should be granted a contract extension while the current deal expires in May 2020.
The situation is to be resolved in court and as Tim Crow, world-leading sports marketing advisor, suggests, the chances of Liverpool paying off New Balance's claims are rather high.
"So, I think even if it is found in favour of New Balance you might see a situation where Liverpool pay to get out [of that contract]," he told Liverpool Echo.
"That depends on what is in the contract, but it is by no means unprecedented, that is what happened with Chelsea.
"It obviously does massively depend on what the detail on the contract is.
"If the court finds that New Balance have an automatic right to renew then obviously that makes it very difficult and then you would see a situation where if they are very much of the mind that Nike is for them, then I think you would see a situation where they would want to pay to get out of it."
As it was revealed earlier, the Reds are on the brink of sealing an agreement with Nike that will guarantee fixed payment of just around £30 million a year. The Reds, however, will be getting 20% of all global sales. Still, high-profile stars promoting Liverpool's brand along with extensive distribution network will reportedly deliver far greater total revenue for the club.