Everton’s new kit supply deal, with Danish brand Hummel, will net the club almost double the income of its existing deal with Umbro.
SportBusiness understands the agreement is worth about £9.5m (€10.6m/$11.6m) per season, which will earn the Premier League club just under £30m across the three-season contract from 2020-21 to 2022-23.
The deal draws the curtain on the club’s six-year association with Umbro. The UK-headquartered apparel brand signed a three-season renewal with the club as recently as March 2019, worth £4m-£5m per year, but the contract gave Everton a break clause in the event of a much stronger financial offer.
The club exercised the clause upon become aware of Hummel’s concrete interest, after which negotiation between the Elite Group agency, who represent the brand across the UK market and the club proceeded swiftly.
As with outgoing front-of-shirt sponsor SportPesa, Umbro will see out the conclusion of the 2019-20 season as Everton’s kit supplier, with the club viewing this as very important, even if the season extends beyond the expiry date of the contracts.
Denise Barret-Baxendale, Everton chief executive, said: ‘It is really important that we drive maximum value from our commercial deals, and this is a Club-record deal for a technical partnership for Everton. It is also important we work with brands that share our ambition and we have all been impressed with Hummel’s originality, commitment to quality and vision to challenge expectations.’’
Money and input key for Everton
The club was attracted both by the significant uplift in fee and the opportunity to be Hummel’s flagship club as the brand attempts to increase its position in the UK.
Much like Watford in its recent deal with Spanish brand Kelme, the club believes it is better to play a bigger role in a smaller brand’s portfolio than get lost among Nike or adidas’ array of clubs, with kit designs often standardised across teams and leagues.
During a previous association with Nike, the club recognised the striking resemblance of its kit to one worn by championship side Barnsley.
It is of high importance for the club to have a say in the kit design process. It has even consulted its fans on kit design before and the Hummel kits will be developed on a collaborative basis.
There will be no change in the role of American sportswear retailer Fanatics, which has been Everton’s global retail partner.
Fanatics will continue to take receipt of Hummel’s entire Everton stock, which it will then distribute to Everton’s official stores, online channels and third-party retailers.
Hummel seeks UK powerbase
For the brand, signing with Everton is the first step to building its influence in English football.
It was impressed with the club’s growth strategy and saw a synergy in terms of the status of the club and the brand within their respective markets.
The Danish company is keen to rebuild its presence in the UK football market where it has previously held the kit supplier rights for the likes of Tottenham and Aston Villa.
SportBusiness understands Hummel are hopeful that the partnership with Everton can stretch well beyond the initial three-year agreement and are see great value in the idea of holding an association with the club during its transition into its new stadium at Bramley Moore Dock, Liverpool. This is currently scheduled to open in 2023 at the earliest.
Hummel chief executive Allan Vad Nielsen said: “Entry into the Premier League is integral to our ambitious growth plans, international expansion and focus on sport. Timing is also perfect as it is the 50th anniversary of Club legend Alan Ball introducing Hummel to the UK market with his legendary white boots. Everton enjoys a massive following both domestically and globally, providing a fantastic engagement platform and positive outlook going forward.”
Hummel is currently the kit supplier for the Danish national team, LaLiga side CA Osasuna and the German Bundesliga’s SC Freiburg. Its deal with Scottish Premiership team Rangers will conclude at the end of the current season.
SportBusiness sources indicate Elite and the brand are in advanced discussions with several sports properties within the UK market.