Liverpool Football Club are being taken to High Court by club sponsors and current kit suppliers New Balance.
The Boston based franchise are seeking to retain the sponsorship of the European champions following serious interest from Nike.
Reds on the verge of a club-record deal
The Reds according to reports from The Athletic, are close to agreeing a club-record deal with Nike, which will see the Anfield club amass around £70 million per season - the biggest in the club's history.
However, the process will have to remain on halt after New Balance said they would trigger the "matching clause" originally drawn into their contract with the Reds in an attempt for the two parties to continue sponsorship together.
However, Anfield officials at the club have informed New Balance that the offer still falls short of the offer on the table from Nike, with the latter being able to offer more global recognition for Liverpool following their renewed status as Champions of Europe.
Also, it is understood that there have been distribution issues with New Balance in the past and this is one of the many reasons why the Liverpool hierarchy are desperate to strike a deal with Nike which could start from the beginning of the 2020/21 season.
New Balance have since been able to comment regarding the dispute and they maintain that the problems between them and Liverpool have been resolved and that matters will now be passed onto a judge. Documents for the case had been filed on September 10 at the commercial court of the High Court.
“We can confirm that our kit supplier, New Balance, has commenced a legal dispute against the club,” said a Liverpool spokesman.
“We will not be making any further comment during these legal proceedings.”
Serious money
As the two parties wait for the legal dispute to be resolved, New Balance have reportedly already been seen drawing up kit designs for next season.
Barcelona's £100 million per season deal with Nike is currently the biggest in football followed by Real Madrid's £98 million per season arrangement with Adidas.
Both Liverpool and New Balance will hope the issue to be swiftly resolved and the two organisations remain confident that a judge will be able to side with them.
“As a long-standing and committed sponsor, we are keen to continue our strong partnership with Liverpool Football Club and renew our agreement in 2020,” a statement from New Balance read.
“In line with our current contract, we have matched the offer made by Nike.
“As part of the contract renewal process, LFC has called into question elements of the agreement and as such we are asking the courts for clarity on this case.
“Both we, and the club, are keen to resolve any contractual challenges as quickly as possible and have agreed to an expedited process in the courts.”