Real Madrid are on the verge of agreeing a 10-year, €110m-a-year deal with Adidas that dwarfs the £65m-a-year deal Arsenal recently agreed with the German sportswear manufacturers.

Of course, there is quite some difference in the commercial value of the two clubs given Real Madrid’s recent Champions League exploits and Arsenal’s relegation to the Europa League, but it is still a significant gap.

Manchester United recently agreed a 10-year deal with Adidas that will see them earn £750m over the life of the contract.

Back in August, before Arsenal’s deal was announced, it was claimed that Arsenal’s deal could help Real Madrid seal a one with Adidas worth over £1bn and that is exactly what has happened.

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

“Both Arsenal and Manchester [United] have not achieved important titles in recent seasons,” the Spanish publication wrote. “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.”

Puma, who chased Arsenal for years only to end up being a major disappointment, will 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.

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 will certainly help them bridge the gap.