How much money Leeds United could get from new Adidas kit deal despite Red Bull fears

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Leeds United are a big fish in a small pond in the Championship when it comes to the commercial income that feeds Daniel Farke’s transfer and wage budgets.

We don’t yet have access to the accounts for 2023-24, a season which saw Leeds miss out on promotion back to the Premier League at the first attempt.

But the data from 2022-23, the last financial year on record, shows income from sponsorship, merchandise, ticketing and events that other Championship clubs could only dream of.

Granted, those figures will have fallen last season as Leeds returned to the second tier, but they will still remain far, far higher than almost of all of their peers.

In the age of Profit and Sustainability Rules (PSR) whereby spending is tied to revenue, Leeds have a natural advantage over most of the EFL as long as they don’t overreach financially.

The margins in terms of PSR were razor thin in the three-year period up until 30th June 2024, but the swathe of player sales over the summer mean they now have ample headroom to spend again.

Unpopular as it may be, the front-of-shirt deal with minority investors Red Bull is worth a Championship record sum and will carve out even more PSR breathing space.

And, as explained by Liverpool University football finance lecturer Kieran Maguire, the extension of Leeds’ deal with Adidas will also provide another boost when it kicks in.

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Official data from UEFA shows that only 16 clubs sold more merchandise than Leeds in the last published financial year.

Thanks to record away shirt sales this term, they will likely be there or thereabouts again in 2024-25.

Adidas have been Leeds’ technical partner since the outset of the 2020-21 season and the two entities announce a ‘multi-year’ renewal in October.

“It is a one-city club with an international fanbase as well as a domestic one,” Maguire told LeedsUnited.News.

“Leeds won’t be a the top tier in terms of the relationship with Adidas because that is clearly reserved for the likes of Liverpool, Bayern Munich and Real Madrid.

“But there is a second tier of clubs that sit just below, however. They aren’t paid £90m like Man United are but Adidas are well aware that having a club of Leeds’ stature on their roster is valuable to them.

“It is worth fighting to get the Leeds contract.”

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How much is Leeds’ new Adidas deal worth?

Significantly, no value of the Leeds-Adidas partnership has been either announced or reliably reported.

In the Premier League, the partnership was worth around £10m annually, although that figure will have fallen after relegation.

But Maguire thinks that the new deal will be worth eight figures, which means Leeds are set to bank at least £20m from the German sportswear giants over the multi-year deal.

“Leeds’ new shirt deal will contain significant step-ups should they promoted this season or next season,” he said.

“Leeds are big hitters and sales of shirts this year have been spectacular despite some fans reservations about Red Bull.

“There is no reason why Leeds can’t be looking at an eight-figure sum from the Adidas deal.”