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Nike Sources part II

Discussion in 'The Football Forum' started by JurgenKlopp, Sep 23, 2019.

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  1. tombrown

    tombrown Very Well-Known Member

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    At £60 per shirt, 20% of that gives £35M for the club, then, as Stevie says, there's all the other gear
     
  2. Dahuge

    Dahuge Very Active Member

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    but that still only gives us 65 million which is still 15 million behind utd

    . That is assuming we sell 2.9 million shirts - sales people over estimating sales to make their boos feel good - never. Yes there are other items but what will we sell obn that 1 million @ 50 quid average that another 10 mill which means at best we still only get the same at a failing has been.

    We should be looking at 40 million base and then the 20% of sales and 5% on trainers....

    I know FSG have done well on the commercial side, I am not sure it is that good of a deal...
     
  3. momoWASboss

    momoWASboss Very Well-Known Member

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    Isn’t there bonuses for winning things? Also, hasn’t united’s deal shrunk due to lack of champions league football? Or was that just sponsorship?
     
  4. Insignificance

    Insignificance Bad to the bone Member

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    Hmmm. What is the background and insight you have to actually judge if the deal is good or not? I mean, first of all you use wrong numbers (Man U doesn't have a 80 mill deal). Second of all you brand the United deal as we only get the same as a failing would. They have been quite successful over a period of time, which have built them a large fanbase who buys shirts (which is what the kit supplier actually look for). I assume these cynical commercial guys in Puma, Adidas or Nike look at potential shirtsales over short term success? If not probably Leicester should have a bigger deal than both us and United?

    And a sentence saying we should be looking for x and y. Where did you come up with the 40 mill number from? What is the basis? You just look at what other have and say "I want same or better?". For some reason I think both the club and the partner use a bit more analytical approach than that.

    https://www.independent.co.uk/sport...s-leaked-most-expensive-ranking-a8781026.html

    Clicking through the images in the article our new deal rank at 3rd place.
     
    Last edited: Oct 28, 2019
  5. Hansern

    Hansern Part of the Furniture Member

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    Utds Adidas deal was 750 mill £ over 10 years, 75 mill pr year.
    If they dont qualify for the CL this season, they will see a drop with 30 %.
     
  6. Hass

    Hass Well-Known Member

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  7. Insignificance

    Insignificance Bad to the bone Member

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    Imagine the photoshooting if they succeed? Don't expect any smiling face in red shirt?
     
  8. doctor_mac

    doctor_mac My cowboy name is Garland Justice Moderator

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    There won't be an Mbappe in the photoshoot and that's for sure, never mind one with Lebron, Serena and Drake.
     
  9. Hyena

    Hyena Well-Known Member

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    Well for one NB will have to invest heavily in their infrastructure if they hope to meet the demands of the proposed deal.

    They were already projecting a loss when deciding whether to bid, and their performance will be under scrutiny of they somehow sneak in...

    I suppose NB is / was hoping that the club will make an offer to settle the dispute by paying them a large sum of money to go away and stop making the club look bad.
     
  10. Farkmaster

    Farkmaster Very Well-Known Member

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    Does it make the club look bad? It makes us look really desirable. It makes them look worse.
     
    FoxForceFive likes this.
  11. King Binny

    King Binny Very Well-Known Honorary Member

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    Article: The High Court in London ruled against New Balance in their battle to keep alive a deal with European champions Liverpool last week, a seven-year association in tatters after a legal scrap.

    Mr Justice Nigel Teare agreed with Liverpool's stance that New Balance couldn't match a deal proposed by Nike. Crucially in terms of global distribution, a topic that was the main arguing point across the benches in late October.

    Despite the ruling (and seemingly fractured relationship) New Balance lodged an appeal. Perhaps more aligned to the thoughts of a severance package, rather than a rekindling of future agreements.

    On this part, another judgment awaits–but for now, Liverpool are set to press ahead on five-year deal already agreed in principle.

    The American sports giant has spent $6 million (£4.6 million) on designs and fabrics. With Liverpool's colorways decided for the 2020/21 season, the following campaign’s creation is already said to have begun.

    [​IMG]
    Is this how Liverpool could look under Nike next season in their 2020/21 colorway?

    Nike's key offer to the Merseyside club was enhanced distribution into the global marketplace, coupled with the association of key stable influencers-an edge in a competitive market-space.

    Serena Williams, LeBron James and Drake are perhaps not well known for their football knowledge, or tactical appreciation of the game, but in these Nike influencers Liverpool can walk a path currently unavailable–exposure to a market that guarantees sales.

    There is no doubt that the sight of those listed above, donned in the red of Liverpool, will not drive sales in traditional areas. However, it will open up new lucrative paths for the Merseyside club, in parts of America and the Far East.

    Success on the pitch will always bring shirt sales. Liverpool have re-emerged under Jurgen Klopp into genuine Premier League title contenders, their appearance in back-to-back UEFA Champions League Finals only furthers this position.

    [​IMG]
    Michael Jordan attends a Paris Saint-Germain (PSG) fixture complete with Jordan and PSG branding.

    There are though, markets available who will lap up the Liverbird adorned merchandise purely on who wears it. A reality that another Nike club, Paris St-Germain (PSG) knows all about.

    The French champions are virtually untouchable in their home league, but in wider Europe they are not regarded in the same breath as other continental giants.

    This hasn't detracted from their sales on the American mainland or across the globe, a partnership with Nike's “Jordan” arm has become more lucrative than anyone could have imagined.

    The collaboration with basketball phenomenon Michael Jordan is set to push the French club past 1 million shirt sales. Popularity of the club's shirts in the United States soared-sales of merchandise went up a staggering 470%.

    Just seven years ago, PSG struggled to achieve a quarter of their 2019 projected sales figures. Their turn around off the pitch has been achieved with clever branding and backed up by on-field progressions.

    Ligue 1, the domestic league PSG play in, is shown in the U.S. on beIN Sports–a channel that has seen its viewing figures fall after being dropped by three big television networks.

    Comcast/Xfinity, DircetTV and Verizon Fios all parted ways with the sports broadcaster, in a move that saw its reach into American homes drop by 30 per cent. Despite the reduction (22 million homes to just 15.4 million) the market share of PSG's merchandise increased.


    One of the contributing factors in the rise of the French club's merchandise sales was the public wearing from crossover stars.

    Music artists such as Travis Scott, J. Cole and 6ix9ine have all been pictured in the Jordan collaboration clothing, along with Basketball big hitters Ben Simmons, Draymond Green, Nicolas Batum, Tony Parker and of course, Michael Jordan himself.


    [​IMG]
    Paris Saint-Germain's and Jordan have become an off the field marketing sensation.

    Liverpool's value on the Forbes list sits at $2.2 billion (£1.7 billion), with commercial revenue hitting $580 million (£447.2 million) as of May 2019.

    In Deloitte's 2019 Football Money League, Liverpool are placed seventh (just behind PSG in sixth) with a key projection for long term success identified as ‘future markets’.

    “Continued success on the pitch should also bring the exposure the club requires to continue growth of its commercial revenue,” the report stated.

    “Association with a club, with the history of Liverpool, competing strongly in multiple competitions over a prolonged period of time, is an attractive proposition for potential commercial partners.” Deloitte explains.

    With Liverpool set to begin a partnership with Nike in the summer, the increase in numbers achieved by PSG and the American sportswear brand look within an easy reach of the Merseyside club.

    The exposure the Premier League has in the American market from rights holder NBC Sports would only add fuel to a fire that could potentially rage, with regards to already high sales.
     
  12. King Binny

    King Binny Very Well-Known Honorary Member

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  13. Barba Roja

    Barba Roja Plundering since 2005... Member

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    I'm very pleased with this. It seems shrewd and forward thinking. I really do like the infra structure about the club. Is it even a gamble? I guess it is. We'll see I suppose. Anyone with more knowledge about such things care to give me the lowdown in layman's terms. What does it actually mean and what does it depend on? Cheers in advance.
     
  14. moron

    moron i am legend Member

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    You are a fucking hard-nut Viking innit ? No one messes with you lot, it's too cold.
     
  15. bluebell

    bluebell Very Active Member

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    With the new deal, will the clubs hierarchy seek players who will be commercially successful?

    As Cristiano Ronaldo joins Juventus the team sells $60 million worth of his jerseys in 24 hours

    Published Thu, Jul 19 201811:57 AM EDT

    Abigail Hess@ABIGAILJHESS
        
    [​IMG]
    Juventus new signing Cristiano Ronaldo poses for a portrait shoot on July 16, 2018 in Turin, Italy.
    Juventus FC via Getty Images
    On July 10th, it was announced that Cristiano Ronaldo had signed a multi-million dollar agreement with Italian soccer team Juventus, marking an end to his nearly decade-long career with Real Madrid.
    Juventus seduced Ronaldo with a contract worth well over $100 million, and the deal already seems to be paying off. According to The Guardian, the team sold 520,000 shirts bearing Ronaldo’s name within just 24 hours of the merchandise being released.

    To put that into perspective, beIN Sports reports that the team sold just 850,000 shirt during the entirety of the 2016/2017 season. Business Insider estimates that these Ronaldo-related purchases translate at least $60 million in sales, and notes that since “typically clubs receive only 10-15 percent of the revenue generated by the kit manufacturer (in this case, Adidas),” the team will probably see about $6 to $9 million of that money.
    [​IMG]
    Juventus new signing Cristiano Ronaldo poses for the media during the press conference on July 16, 2018 in Turin, Italy.
    Valerio Pennicino - Juventus FC/Juventus FC via Getty Images
    Juventus merchandise doesn’t come cheap. According to the team’s website, Ronaldo fans can purchase children’s jerseys with his name for €84.95 ($98.90), women’s jerseys for €94.95 ($110.60), men’s jerseys for €104.95 ($122.20) and an authentic replica of the gear worn by Juventus players for €137.45 ($160.10).
    This means that average price for a Juventus Ronaldo jersey is $122.95. Multiplied by the 520,000 shirts sold, Juventus could have brought in $63,934,000 in one day. The team’s Twitter account also gained one million new followers overnight.
    The Guardian, Sky Sports and Mirror report that Ronaldo’s four-year contract with Juventus includes an annual salary of roughly €30 million ($34.9 million). According to Forbes, that actually translates to a paycut. The deal will decrease Ronaldo’s gross salary from $66 million to $64 million. Juventus is also required to pay a €120 million ($140.80 million) transfer fee to Real Madrid.
    So far, it seems like Juventus’ investment in Ronaldo is paying off for the club, but the player seems to believe that the deal is advantageous for him as well.

    “I want to leave my mark on the history of Juventus,” he said at his first team press conference according to The Guardian. “This is one of the best teams in the world, and I’ve had my mind set on coming here for a little while.”
    “I feel great, for me it is another challenge,” the Portuguese player said. “I know it will be tough. I will be ready, Juve is ready.”
     
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