Liverpool’s Commercial Growth: New Adidas Deal and Asian Market Focus

Liverpool FC has achieved remarkable growth in commercial revenue, announcing a significant new deal with Adidas as they continue to expand their global reach. According to data from Blinkfire Analytics, the club recorded an impressive 1.7 billion engagements across all social media platforms last season, surpassing the total engagements of the top ten teams in the NFL and NBA combined. Notably, 60 million of those engagements came on a single day in April when the team secured the Premier League title.

Over the past decade, Liverpool’s commercial revenue has nearly tripled. The latest financial accounts for the 2023-24 season reveal that commercial income reached £308 million, now making up more than half of the club’s total revenue of £614 million. This marks the first time Liverpool’s commercial revenue has exceeded that of their long-standing rivals, Manchester United, which reported £303 million in commercial earnings.

Strategic Focus on Controllable Revenue

Liverpool’s Chief Commercial Officer, Ben Latty, emphasized the club’s ambition to maximize revenue from controllable sources rather than merely competing with other clubs for commercial success. “There’s been a step-change in terms of our revenue, but there’s still a lot of room for us to grow,” Latty stated. He underscored the importance of focusing on matchday and commercial income, which the club can influence directly.

Latty, who took on the chief commercial officer role in 2024, has been pivotal in establishing partnerships across the globe. Liverpool has set up offices in key locations including Hong Kong, Japan, Singapore, Boston, and New York. The club has secured multi-million-pound deals with major U.S. brands, such as Google Pixel, Peloton, and UPS.

Significance of the Asian Market

The Asian market remains crucial for Liverpool, with the club claiming to have nearly 250 million fans across the continent. This region is the largest in terms of retail revenue, with nine of Liverpool’s 20 standalone retail stores located in Asia. The club’s recent pre-season tour, featuring friendly matches in Hong Kong and Japan, reflects their commitment to engaging with fans in this vital market.

Latty noted the importance of assessing potential tour locations for both commercial viability and football preparation. “When it comes to tours, we always assess the market and look at different options both east and west,” he explained. Liverpool’s strategy includes bringing the club closer to fans who may not have the opportunity to visit Anfield.

The club’s connections with sponsors, including Standard Chartered and AXA, are also strengthened by their presence in Asia. The current pre-season tour is designed to cater to these relationships while maximizing commercial opportunities.

Liverpool’s partnerships are set to continue evolving, with ongoing discussions regarding extensions to existing deals, which are currently in place until 2027. Latty expressed confidence in Liverpool’s standing in the football world, stating, “I don’t believe there’s any bigger football club than Liverpool.”

As Liverpool prepares for their upcoming season, they are transitioning from their former kit supplier Nike to Adidas. The new partnership, which officially begins on August 1, has generated excitement among fans. Although the club will wear Nike kits during their summer tour, Latty confirmed that there are plans for a major launch of Adidas merchandise, coinciding with the reopening of the flagship store at Anfield.

The Adidas deal is anticipated to be more lucrative than the previous agreement with Nike, though specific financial figures remain confidential. The partnership will allow Liverpool to maintain control over branded merchandise through their retail operations, which is a crucial aspect of their commercial strategy.

Latty concluded by emphasizing Liverpool’s ambition to be one of the biggest clubs globally, stating, “As Billy Hogan said recently, we’re one of the biggest clubs in the world and we want to act like it.” With a solid strategy in place and a focus on sustainable growth, Liverpool FC is well-positioned to continue its commercial success in the coming years.