Arsenal are reportedly set to sign a £300m, five-year deal with Adidas that would be the third largest in football history however one sports insider has thrown cold water on the figures.

Despite reports that Arsenal would sign a ‘juicy contract’ with the sportswear giants when their current contract with Puma expires at the end of the season, Adidas are likely to view the Gunners recent decline on the pitch as problematic when offering the big money. So says one unnamed industry insider according to Sport Business, at least.

“Adidas have a strategy built around major cities and a younger urban consumer so Arsenal fit that profile, but their recent decline would work against a premium price,” the source said.

Reports claim the deal would be worth £60m-a-year to Arsenal but it is more likely to fall in the £45m-£60m bracket according to this expert.

A report in Spain on Tuesday claimed Arsenal’s deal with Adidas could also help Real Madrid earn up to £1billion from the sportswear giants.

Adidas bruised banana

Defensa Central believe Arsenal’s move could ultimately benefit Real Madrid with the Gunner’s ‘juicy contract’ laying the groundwork for the Spaniards to ask for significantly more given their recent successes in the Champions League.

Given Arsenal’s deal is reportedly worth £300m and Manchester United’s deal is worth £750m over 10 years, Real Madrid could sign a contract worth a staggering £1bn.

“Both Arsenal and Manchester [United] have not achieved important titles in recent seasons,” the Spanish publication writes. “For the second consecutive year the Arsenal does not dispute the Champions League, and United won the Europa League two seasons ago, but, despite not having been so accurate in sports, have signed large contracts with Adidas.

“All this suggests that Real Madrid, with the four Champions Leagues achieved in the last five seasons, deserves a renewal with Adidas that exceeds one billion euros, or at least that the numbers offered to whites are close to that number. It would be justice for the merits of the best club in the world.”

Arsenal kit 1990-91

Puma, who chased Arsenal for years only to end up being a major disappointment, are set to replace the Gunners in their portfolio with Manchester City.

Arsenal signed a five-year-deal with Puma worth £150m in 2014, which was highly lucrative compared to their Premier League counterparts at the time.

Since then, however, rival clubs have gone on to sign even better kit deals, blowing Arsenal’s out of the water.

PUMA Football presents Arsenal’s 2017/18 kit.

Chelsea’s deal with Nike is said to be worth £60m a year for 15 years, while Manchester United earn £75m a year from Adidas. Arsenal have fallen behind their rivals commercially and changing kit suppliers would certainly help them bridge the gap.

It’s been over two decades since Arsenal were last partnered with Adidas but a renewing of acquaintances is on the horizon.

PUMA and Adidas were set up by brothers after the pair fell out during the First World War.