By reading the prospectus relating to AS Roma’s capital increase we discovered further details about the agreement between AS Roma and Nike Inc.
Undoubtedly, most of us already knew many things about this deal, however, it is interesting to analyze the bonus section and the relative remuneration that Nike will pay on a yearly basis. In fact, we discover that the contract foresees a payment of € 3 million as a signing bonus on the date of the signing of the contract as well as an additional bonus of € 3 million at the date of the signing of the so-called Long-Form Contract.
In addition to the mentioned bonus, which were duly paid, the contract foresees the recognition of a fixed annual remuneration of € 4 million. The 6th and the 7th year of the contract an increase is expected, up to a maximum of 3%, on the basis of the eventual increase in the ISTAT’s index.
However, the most interesting section of this agreement seems to be that relating to the remuneration that Nike will pay to AS Roma right after the construction of the new stadium. In fact, in the year of the opening of the new stadium € 1 million will be added to the yearly amount bringing the total yearly remuneration to € 5 million. By forecasting that the stadium should be ready for the season 2017-2018 AS Roma would receive a bonus of € 7 million.
In addition, the fans should be happy because Nike “obliges” Roma to maintain a high standard of competitiveness. In fact, Nike also has the right to reduce the fixed annual remuneration and the minimum royalty in the case of non-participation to the European competitions for two consecutive seasons.