The German sportswear brand did not believe the club's displays justified their financial demands, with Warrior Sports securing a deal to produce the Anfield side's kit

Adidas chief executive Herbert Hainer has revealed Liverpool were declined an extension to their contract with the sports brand because the side’s poor performances on the pitch did not match the companies’ expectations.

The Merseyside outfit’s new kit, due in the summer, will be branded by Warrior Sports, a subsidiary of New Balance. The deal is set to last six years and is worth £25 million, a figure almost double that offered by Adidas.

This will be Warrior Sports’ first major contract with a football club, and comes after Liverpool secured an £81.5m shirt sponsor contract with London bank firm Standard Charter.

Adidas boss Hainer insists the company’s decision to stop working in partnership with Kenny Dalglish’s side was due to the fact the club's poor displays did not add up to the fee the Merseyside club were requesting.

“The gap between their performance on the field and what the number should be is not in balance,” Hainer told reporters in Munich.

“Then we said, ‘Okay we will not do it. That’s the end of the story.’”

A benefit of the Warrior Sports deal is that the Reds now have freedom over their merchandise not related to the clothing the team wears, but a downside sees the outfit unable to profit from Adidas’ global supply chain.

Hainer added: “It all depends on the success and the effort and the popularity, the exposure on TV, revenue you can generate by merchandising.

“This all has to be brought in line between what you offer and what you get. We thought their asking and the delivering is not in the right balance.”

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