Real Madrid is on the brink of winning La Liga while hunting down a 15th Champions League. In the merchandise business, there’s a similarly prosperous feel.
According to the soccer data and analytics platform Football Benchmark, as noted by Diario AS, Real has the highest jersey value in European club soccer (Spanish). Real earns a combined €190 million ($205 million) from kit supplier Adidas, which pays €120 million ($129 million), and its main sponsor Emirates, which stumps up €70 million ($75 million) annually.
Second in the standings is El Clásico rival Barcelona, whose shirt revenue comes from Nike and audio streaming service Spotify. Trailing the Catalans is French side Paris Saint-Germain in third, and then Premier League teams Arsenal, Manchester United, Manchester City and Chelsea, ahead of Bundesliga behemoth Bayern Munich in eighth.
While not included in the figures mentioned, Real’s jersey engagements go beyond Adidas and Emirates. In early February, Los Blancos confirmed a partnership with IT company HP—now emblazoned on its sleeves—and reportedly valued at €70 million ($75 million) yearly. Dealing with Real seems like an attractive proposition for the right type of brand.
It’s worth remembering that, as far as apparel is concerned, elite clubs tend to make most of their money from contracts with suppliers like Adidas, Nike, Puma and sponsors rather than shirt sales. Teams negotiating more lucrative deals with manufacturers will expect them to set steep retail prices in response. Suppliers take home most of the money from these purchases and know—given the demand for iconic clubs’ kits is always high—they can still make huge profits.
A club’s image is pivotal for driving revenues in this area. As a sporting entity, Real has one of the highest brand values in the world, fuelled, in part, by a glut of trophies and international galácticos like Jude Bellingham, Vinícius Júnior and Toni Kroos. So, its superior metrics are not that surprising.
Regarding consumers and pricing, there’s another side. Supporters have no choice but to pay top-dollar for jerseys in a landscape where match tickets and television subscriptions are often extortionate. Take supporters of Premier League club Liverpool, many of whom are baulking at the price of the new red shirt for adults, a 6.7% increase in cost. Those wanting Real or Barça shirts with all the trimmings—even before the coming releases—are looking at spending nearly €200 ($215).
As the domestic seasons wrap up across Europe and more designs hit the shelves, it’s poised to continue this way.
