New Balance Takes Liverpool To Court To Compete With Nike

According to the telegraph, Liverpool will soon reach a sponsorship agreement with Nike, which will take effect from the 2020-21 season. Nike will replace New Balance as Liverpool's New Jersey sponsor. However, in September 24th, New Balance submitted a legal document to the high court of England, which formally brought legal proceedings against Liverpool.

Liverpool club spokesman later said: "we do have a legal dispute with New Balance, the partner of the Jersey. But in the course of judicial proceedings, we will not make other responses to this matter.

The Telegraph reported that as early as the beginning of 2019, Liverpool had in-depth negotiations with Nike on a new long-term Jersey sponsorship contract, and Nike handed in an offer agreement which is expected to exceed 75 million pounds. If the two sides sign the contract and the amount is true, it will surpass the contract between Adidas and Manchester United and become the most outstanding Jersey sponsorship contract in the Premier League.

But New Balance does not want to let Liverpool go. They claim that there is a right of renewal in the terms of contract with Liverpool, allowing them to give priority to the renewal of the same bid. During Liverpool's bid for Nike, New Balance also offered a renewal offer for Liverpool at the same price.

But according to The Athletic, Liverpool's judgment of Nike's perfect and efficient global distribution network is unmatched by New Balance. They believe that this can greatly expand the sales channels of the global team, and solve the problem of fans buying the wrong Jersey. At the same time, Liverpool also hopes to help Nike expand its overseas market with the help of its huge market share. According to the report, under such circumstances, Liverpool believes that the value of the New Balance offer is not the same as Nike and refused to renew the contract.

In 2013, New Balance offered Liverpool a sponsorship contract worth 45 million pounds a year, which is about to end at the end of the season (summer 2020).