Celtic set for ‘significant revenue’ boost following Newcastle United's £30m deal and Aston Villa move

Newcastle United ended a three-year deal with Castore to conclude an agreement with Adidas which is worth around £30m per season to the club. The move was greeted with huge celebration within the fanbase as it meant Adidas, who manufactured their kits during the ‘Entertainers’ era and then during their successes under Sir Bobby Robson, were returning to the club after a 14-year absence.

Whilst Newcastle United are not among Adidas’ ‘Elite’ clubs, their five-year agreement will net them significantly more than their previous deal with Castore. Aston Villa soon followed the Magpies in moving from Castore to Adidas with big names like Manchester United, Arsenal, Bayern Munich and Real Madrid also part of Adidas’ range of clubs.

Scottish Premiership champions Celtic also have their kit made by Adidas and finance expert Stefan Borson believes the Hoops, who are expected to renew their deal with Adidas when their current one comes to an end in 2025, will get a similar deal to the one Newcastle United signed ahead of the new season - a deal that will bring in ‘significant revenue’.

“I think what’s probably happening there is the deal they have done with Adidas is similar to the Newcastle deal, where Adidas design a whole range of products, Celtic have a high-quality product, but they have good prices that they are buying wholesale from Adidas.” Borson told Football Insider.

“They will then put their own margin on them and sell them out into the market. I suspect that deal is working quite well. Celtic are quite an unusual club, where you can imagine that lots of that fashion product is being bought by a global market that’s that not necessarily even a massive fan of Celtic but has an affiliation with Celtic generally. There is probably quite a bit being sold in the US.

“What’s probably happening there is similar to the Newcastle deal that was signed up, where there has been quite a lot of misunderstanding about what that deal is. It’s not like the Man United deal as they have guarantees in there, with some quite big licensing fees.

“The Newcastle deal appears to be more of a supply and distribution deal, where they are effectively provided and they buy the product themselves to sell in their own stores, and they make a margin on top of whatever their wholesale price is.

“If you have got a deal with Adidas of this nature, you have got good distribution, good product and good buying prices, meaning these deals can be much more successful than some of the deals that you have done historically.

“I think Celtic are more similar to the Newcastle situation. They have been pushed up the tiers in terms of how they are perceived at Adidas.

“They are not the top tier, which is Man United and Liverpool, but they are a very important club. That brings in significant revenue and profit. That’s probably what Adidas are looking at thinking ‘This is working well, let’s carry on with it’.”