The Nigerian Football Federation has revealed the financial details of its new three year kit sponsorship deal with American sportswear giants, Nike. The deal, concluded and signed last week, will see Nike design and supply kits to all Nigerian national teams including the male, female and junior national teams.
Over the course of three years, the Nigerian Football Federation expects to bank a minimum of $3.75 million from Nike. Broken down, the earnings will grow by 25 percent after the first year.
For the first year of the kit sponsorship contract with Nike, the Nigerian Football Federation will earn $750,000. However, a one-time 25 percent increase kicks in for Year 2 and will see the Nigerian Football Federation’s earnings grow to $1 million. In the third and possibly final year of the contract–barring a renegotiation or extension–the Nigerian Football Federation will also earn $1 million.
Also, asides the stipulated earnings, the Nigerian Football Federation will bank an additional $500,000 in bonuses should the Super Eagles successfully qualify for the 2018 World Cup. The tournament will be hosted by Russia.
The Nike deal represent some improvement on the Nigerian Football Federation’s most recent kit deal with German kit makers, Adidas. The deal was valued at 700,000 euros yearly.
Nigerian Football Federation’s new partners, Nike, are regarded as the world’s largest makers and suppliers in the sports wear market with similar kit deals running with notable football entities such as Barcelona, the national teams of Brazil, France, England and Netherlands. With an estimate of over 50,000 employees worldwide, Nike is a global leader with a stronghold in athletic footwear. This is evident in its current market share of 21.8 percent, and is predicted to grow to 27.2 percent in 2020.
Nike will be hoping to replicate their marketing success in merchandising with South Africa’s Bafana Bafana and as such, having come on board as partner of the NFF, will look to expand operations in Nigeria by adding to its 858 retail stores across the world.
At the 2014 World Cup, Nike had the most kit sponsorship deals as it outfitted 10 of the 32 competing teams. The new Nike with Nigeria deal will run until 2018.
