Newcastle United and Wolves have both kicked off new kit partnerships this season, parting ways with Castore. Newcastle’s switch to Adidas has especially thrilled fans on Tyneside, with the iconic brand’s return generating major excitement.
When the deal was initially announced, reports indicated that Newcastle United’s partnership with Adidas could be worth £40 million per season. However, these headline figures have faced scrutiny and been disputed, leaving some uncertainty around the actual financial implications of the agreement.
Wolves have now partnered with Sudu, a new sportswear company founded by Chinese owners Fosun, who emphasize their commitment to “putting fans first.” The financial details of this deal have yet to be disclosed. Notably, Fosun is also seeking around £75 million in minority investment for Wolves, intending to reinvest in their sportswear portfolio.
Last season, both Newcastle and Wolves were signed with Castore, the Manchester-based brand that has emerged as a significant disruptor in the sportswear industry in recent years.
Both deals with Castore were signed during the 2021-22 season, reportedly valued at around £3 million per year for Wolves and £5 million per year for Newcastle. Throughout these partnerships, some supporters raised concerns over quality control, which were also echoed by players from Aston Villa, another team in partnership with Castore.
In response to these complaints, Castore acknowledged the issues and emphasized its commitment to maintaining the highest standards in its products.
Castore has reported a significant loss of nearly £22 million for the 12 months leading up to February 4, 2024, despite ongoing contracts with Newcastle, Wolves, and Aston Villa. This comes as a stark contrast to the £12 million profit recorded in the previous financial year, highlighting the challenges the brand faces amidst rising concerns over quality and competition in the sportswear market.
Despite the significant loss, Castore’s turnover surged from £115 million to £190 million. Of this revenue, £106 million was generated in the UK, bolstered by partnerships with the Premier League trio of Newcastle, Wolves, and Aston Villa. Additionally, new agreements with European clubs like Bayer Leverkusen, Athletic Bilbao, and Feyenoord contributed to a rise in sales across Europe, reaching £60 million.
The true value of kit deals often goes beyond the headline figures, which can be misleading in terms of the actual financial benefit to the clubs. Some teams may inflate the perceived worth of their contracts, while others opt for a more cautious approach, providing a more realistic assessment of the deal’s value. This discrepancy can lead to confusion about how much revenue clubs will genuinely receive from their kit partnerships, making it essential to dig deeper into the specifics of each agreement.
In Newcastle’s situation, it would be quite surprising—though not entirely out of the question—if the baseline fee from Adidas truly reached £40 million, as some reports suggest. More likely, this figure encompasses structured performance-related bonuses, such as increases tied to Eddie Howe’s team qualifying for European competitions. This kind of arrangement is common in kit deals, reflecting both the club’s performance and the potential for greater revenue through success on the pitch.