Nike Inc (NYSE:NKE) has signed a 15-year deal with Chelsea Football Club (FC).
The company announced that the deal is worth a reported 900 million pounds ($1.1 billion), amounting to 60 million pounds ($73.5 million) per year.
The soccer team – which plays in the English Premier League – previously had a deal with Adidas worth 30 million pounds a year. Chelsea paid a 40 million-pound termination fee to get out of that deal.
The move comes following Adidas’ decision to sign many major athletic teams that compete with Chelsea in the UEFA Champions League on a consistent basis, including Bayern Munich, Real Madrid and Manchester United.
The deal is worth more than the agreements that football rivals Arsenal and Manchester City have in place, but less than the 75-million-pound-a-year deal that Manchester United has with Nike.
The agreement will kick off when the 2017-18 season begins, which will include the Chelsea FC first team, academy members, as well as the ladies and its numerous affiliations.
“This is an incredibly exciting and important deal for the club,” said Chelsea director Marina Granovskia. “Like Chelsea, Nike is known around the world for its excellence and innovation and we look forward to working together in what is sure to be a successful partnership.
President of Nike Brand Trevor Edwards also hailed the move, noting the caliber of Chelsea’s game. The football club won the Premier League trophy two seasons ago (2015-16).
NKE stock is down 0.8% Thursday.
