The impact on New Balance of Liverpool FC ending their shirt sponsorship deal with the retail giant has been revealed for the first time.
The company's lucrative deal with the Premier League club came to an end in 2020 after first being struck in 2015.
The brand had taken over from its off-shoot company Warrior, with the contract worth about £30m a year.
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However, a High Court judge ruled in 2019 that Liverpool could drop New Balance for Nike when the deal came to an end. New Balance had argued that it could satisfy a clause in the existing arrangement to match Nike's offer.
According to newly-filed documents with Companies House, New Balance's UK division said the reduction in its pre-tax losses from £11.9m to £5.9m in 2021 was mainly because of the loss of its deals with Liverpool and Celtic.
However its turnover surged from £267.1m to £413.5m over the same period.
The company's US parent is headquartered in Boston, Massachusetts, and can trace its roots back to 1906.
New Balance's UK turnover increased from £100.8m to £116.3m in 2021 while its sales in the rest of the world rose from £166.2m to £297.2m.
A statement signed off by the board said: "The reduction in year-on-year loss is largely attributable to the completion of the Liverpool Football Club and Celtic Football Club sponsorships contracts, which concluded part way through 2020.
"The generated loss was driven by increasing logistical costs that impact all industries, in addition to our continual strategic investment in the UK, particularly in both the running and football categories."
It added: "The market remains sensitive to price increases borne out of increased import costs and forecast and foreign currency exposure.
"We continue to respond to such increases responsible to maintain margin levels, whilst remaining competitive.
"Inflation has been the dark clouds hanging over consumer and retail companies since early 2022.
"Increasing uncertainties arise as a result of higher production costs as well as operational cost pressures, in addition to the generally declining consumer sentiment.
"Demand for the New Balance brand remains high, and inventory management will be crucial to weather the storm."
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