The Reds believe they will earn around £75m per season from the agreement, eclipsing the club’s previous £45m-per-year deal with New Balance, which will end this summer after Liverpool won a High Court case over renewal of that deal.
As part of the deal, Nike have agreed to pay 20 per cent royalties to the club on net sales of all Liverpool FC merchandise sold. Those royalties on net sales of all club-branded merchandise and their network of big-name brand ambassadors are expected to more than make up for that shortfall.
Liverpool were forced to argue that fact in the High Court late last year as New Balance attempted to enforce a matching clause present in their contract.
However, the judge found that the Boston-based sportswear manufacturer's smaller distribution network meant they were unable to meet the fresh terms agreed.
It is Nike's global reach that leads Liverpool to believe they may have struck one of the most lucrative kit deals in world football, with the Reds expecting the deal to rival the £75m-a-year Manchester United are receiving from Nike.
Billy Hogan, LFC’s managing director and chief commercial officer, said: “Our iconic kit is a key part of our history and identity. We welcome Nike into the LFC family as our new official kit supplier and expect them to be an incredible partner for the club, both at home and globally as we continue to expand our fanbase.
“As a brand, Nike reflects our ambitions for growth, and we look forward to working with them to bring fans new and exciting products.”
Liverpool's agreement with Nike underlines their return to the top tier of European football under the guidance of Fenway Sports Group.
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Shortly after taking over at Anfield in 2010, the club's Boston-based owners were informed that Adidas would not be renewing a long-running kit deal that they believed no longer represented value for money.
The Reds have since worn kits made by Warrior and New Balance while undertaking a journey that has seen them crowned European and world champions, with hopes of a first English crown in 30 years fast growing.
A transformation that has brought regular Champions League football and a host of star names to Anfield allowed FSG to negotiate with the likes of Adidas, Puma and Nike this time around before settling on the latter.
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