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Puzzles over Liverpool kit deal

Liverpool's proposed kit deal with Nike is worth £15m less a year than their current deal with New Balance. However, on top of the £30m a year agreement, there is a commitment to pay the club a 20 per cent royalty on net sales of Liverpool products. They would also promote the club through stars such as Serena Williams. The club thinks the deal will allow them to tap into Nike's global marketing reach and distribution.

It is below the £50m plus a year deals negotiated with Nike by Premier League rivals Chelsea and Arsenal, and the £71m deal Nike struck with Paris Saint-Germain in the summer.

New Balance has commenced legal proceedings in the High Court against Liverpool claiming that it can match Nike's terms. A review the club commissioned into New Balance by Deloitte concluded that Nike can super charge distribution in a way that a challenger brand such as New Balance cannot.

New Balance alleges Liverpool are in breach of a matching clause agreement allowing it to extend its contract. The dispute is to be settled by a High Court judge at a three day trial listed from October 18th.

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