Nike and FC Barcelona Extend Relationship
October 27, 2006
BEAVERTON, Ore., and BARCELONA, Spain (27 October, 2006) – NIKE, Inc. (NYSE:NKE) and Futbol Club Barcelona, popularly known as Barça and one of the world’s leading clubs, today announced a new five-year agreement for approximately $189 million (150 million euros) plus bonuses and royalties, which extends their relationship through 2013. The agreement also includes a possible five-year renewal, which would further extend the relationship through 2018. More specific terms were not disclosed.
“FC Barcelona is one of the game’s best football clubs and one of the most exciting teams to watch, and we are very pleased to extend Nike’s relationship,” said Nike Inc. President and CEO Mark Parker. “Our long-term relationships with top football clubs such as Barcelona deepens our global leadership in the world’s most popular sport and strengthens our growth opportunities as the No. 1 football brand.”
FC Barcelona President Joan Laporta said Barça was “very excited to extend this relationship with Nike.”
“The agreement is an international recognition of the level that the club has reached both for our performance on the field and our social and community commitments,” Laporta said. “We especially appreciate the effort that Nike has made and will continue to make towards positioning FCB as ‘more than a club.’”
FC Barcelona has been playing football since 1899 and has an extremely rich heritage. Nike has sponsored the club since 1998. The team, with an estimated 70 million supporters worldwide, is the defending holder of the UEFA Champions League title and is regarded as among the best in Europe and one of the most popular clubs in the world. In the last three years, Barcelona also has been a two-time La Liga Championships winner and has won the Supercopa de Espana twice. One of the club’s star players is Nike athlete and two-time FIFA Player of the Year Ronaldinho, who now is in his fourth season with the club.
Nike and FC Barcelona underscored that the sponsorship agreement includes a significant marketing investment over the life of the contract to position FC Barcelona worldwide and to support its “More than a club” motto and community activities. For example, Barcelona recently entered into a five-year relationship with UNICEF to support the U.N. Millennium Development Goals and UNICEF activities.
Nike sells Barcelona jerseys in approximately 50 countries, and the club’s jerseys are among the best-selling jerseys in the world. A long-time favorite in Europe, the club is increasingly popular in the United States. During a tour last August, Barcelona exhibition matches in New York, Los Angeles and Houston sold out quickly, with more than 240,000 fans attending the games.
Over the past decade, Nike has become a global leader in football, building its business from approximately $40 million in 1994 to $1.5 billion today. Nike currently sponsors 32 clubs and 18 national teams worldwide, as well as many of the game’s best players.
NIKE, Inc. (NYSE:NKE) based near Beaverton, Oregon, is the world's leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities. Wholly owned Nike subsidiaries include Converse Inc., which designs, markets and distributes athletic footwear, apparel and accessories; NIKE Bauer Hockey Inc., a leading designer and distributor of hockey equipment; Cole Haan, which designs, markets, and distributes fine dress and casual shoes and accessories; Hurley International LLC, which designs, markets and distributes action sports and youth lifestyle footwear, apparel and accessories and Exeter Brands Group LLC, which designs and markets athletic footwear and apparel for the value retail channel.