Santos – new kit deal with Kappa

Santos will wear Kappa until 2019. Previous kit sponsor Nike did not want to extend the current deal.
The terms of the sponsorship are different than the usual structure. No upfront payment but a higher cut for each jersey sold.

The past deal saw Santos receive 11$ per jersey sold. The new jersey will see that amount increase to 55$ per jersey sold.
According to the calculations made by Santos this should increase the income from 3.5m reais and upto 8m reais.
This means that the club counts on selling 150k jerseys a season. Quite good for a club with relatively little exposure outside of the home state of Sao Paulo.
Most other Kappa uniforms retail for 180 or 190 reais.
Three companies are involved in supply of the jerseys.
Kappa with design and brand.
Meltex – production
SPR – distribution.
On top of that there is VAT and retailer margins. So all in all the club seems to get a pretty good cut on each unit sold.