French giant PSG has always been one of the biggest buyers in soccer fraternity, and that is why whenever they are subjected to comply with UEFA’s Financial Fair policy, they look for more sources to increase their paper revenue. One of their longest running sponsorship partner Nike, who has been associated with them back since 1989, is reportedly being asked to pay more via their new deal with Paris Saint-Germain. Their current contract is scheduled to expire next year, and Ligue 1 champion wants to revise their annual rates with a comprehensive margin. What they are asking is not yet confirmed but some media houses reported that they want nothing less than a threefold increase to their earlier €6.5 million per year contract, which means, they are seeking around €20 to €30 million in their new deal. This could be a big problem for Nike coz they are already running a contract with French national side at around €40 million per year and if they ever accept PSG’s demand, national football association would also like to revise their deal since they provide even more international exposure to sports equipment manufacturer.
Actually, soccer has squeezed whole world into a village where each one relates him to another no matter where other is situated. Taken an example, EPL club Arsenal recently signed a deal with another sport’s shoe manufacture Puma at around £30 million per year and French club is also looking for nothing less than that if Nike disinclines to pay them what they have asked. This is nothing but distress buying coz both Nike and PSG can’t afford to break their partnership even that would not be in favor of any of them, so other option left is finding a middle way where PSG gets a higher amount and Nike doesn’t require to pay what they are paying to the national side.
On other side, PSG’s owner, Qatar Sports Investments, have other option in hand as they also owns a sportswear company Burrda Sport which can replace Nike or become another marketing partner for them; they have done this in the past where they signed a five-year shirt sponsorship deal with Emirates airline. Actually, PSG desperately needs money into their accounts coz they have invested rather a heavy amount this summer on players like Edinson Cavani, Marquinhos, and Lucas Digne. If they want to comply with Fair Play rules, they need to justify this spending through adequate revenues, therefore it is all about how they manage their accounts and do a justice to their age-old sponsors.