March 2 – The Brazilian club market for kit sponsorship deals is hotting up. Last week Santos forced Umbro into a renegotiation of a deal signed just four months ago. This week São Paulo announced they are ditching Under Armour for Adidas.
The Adidas still requires approval of the Sao Paulo board but the terms are reckoned to be too good to be turned down. Adidas won the club despite fierce competition from Topper and Diadora while Under Armour were expected to keep the contract that runs out this June. Under Armour may to choose to exit earlier.
Adidas previously sponsored São Paulo’s local rivals Palmeiras. Now with the switch across town the German firm keeps a foothold in the capital city.
No terms were given for the deal except that São Paulo will reportedly receive 26% of the prioce of each branded Adidas item sold in royalties.
The deal marks a return for Adidas who partnered São Paulo between 1985 and 1990 and then between 1996 and 1999.
Santos also switched kit supplier last November – from Nike to Umbro. Under the original contract Umbro would have paid R$7.5 million ($2.3 million) per year. Santos complained that this was too far below market price and pointed to Brasileiro Série A side Grêmio’s R$17 million (US$5.2 million) annual deal as evidence. Gremio are also with Umbro.
Full details of the renegotiated Santos deal have not been released but reports are that Umbro have increased the royalty payments by about 50%.
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