Regardless, the key word is control though.
We have a whole other structure to this deal which will increase our revenue.
Scums kit deal
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Regardless, the key word is control though.
We have a whole other structure to this deal which will increase our revenue.
I know your are being sarcastic, but we have no hope of winning the league next season and little or no hope the season after that. But at least this deal allows us to be as financially competitive with any team for the next 10 years even if we don't get CL football.
No Utd will win the league
Ok ☺
How do they work that out?
Between 2008 and 2012 we sold an average of 1.4m shirts per annum. Given the growth in popularity of the PL since then and into the future a figure of 2m isn't outlandish. Which would be enough to make them some profit without significant price increases. Im sure they will probably hike the price regardless.
When I was there in 2009 shirts were between 80 and 120 Euro. I've been back more recently but never checked the price as they were so expensive the first time I went!
How do they work that out?
Between 2008 and 2012 we sold an average of 1.4m shirts per annum. Given the growth in popularity of the PL since then and into the future a figure of 2m isn't outlandish. Which would be enough to make them some profit without significant price increases. Im sure they will probably hike the price regardless.
I think with AliExpress and similar sites starting to really grow in popularity in the last few years, reliable fakes of Nike/Adidas are much easier to make than Warrior/Puma/UnderArmour. Costing around 25% of the store price, I'm not entirely sure what sort of dent those sales put into these numbers.
I think the issue is going to have to really come to a head soon, as the copies I've purchased are identical to the manufacturer originals. And with free shipping as well, no taxes, and motivated vendors, you can see more and more people buying these replicated replicas. Especially in foreign countries, where purchasing a kit and having it shipped adds a ton to the cost, whereas AliExpress vendors offer free shipping to just about anywhere.
How do they work that out?
Between 2008 and 2012 we sold an average of 1.4m shirts per annum. Given the growth in popularity of the PL since then and into the future a figure of 2m isn't outlandish. Which would be enough to make them some profit without significant price increases. Im sure they will probably hike the price regardless.
So what is your conclusion from the above?
How do they work that out?
Between 2008 and 2012 we sold an average of 1.4m shirts per annum. Given the growth in popularity of the PL since then and into the future a figure of 2m isn't outlandish. Which would be enough to make them some profit without significant price increases. Im sure they will probably hike the price regardless.
I think a figure of 2m is outlandish myself. Just reporting what they've been saying on the BBC. Need to be careful as well, a large price hike may result in less sales. Time will tell.
He's not a twat, and he's not come here on the wind up, some people just like to get different opinions. As far as Scum fans go, he's sound.
Wind yer neck in
2m shirts at £60 a pop is £120m revenue per year, knock off £75m for us and still leaves Adidas room for profit.
Plus these deals are never just about the shirt sales. The shirt deals also about increasing the brand profile of Adidas, Warrior or Nike so that can sell other stuff such as socks, trainers, hats, track suits. So of it may be United related some of it will just be Adidas stuff
No. This is a Liverpool forum. He can get to fuck.
What have I posted that offends you? Or is it just my presence here?
Quite possible even probable depends on how much we spend, who we bring in and how Van Gaal settles in. From the numbers Adidas seem to be betting that we get straight back in, although not sure how much sales suffer without CL.
But this deal means we are more likely to get back in at some stage because even without CL football we will still have more financial power than the teams above and below us as everyone will have to comply with FFP.
I do not want to come onto a Liverpool forum and see your opinion on anything. I do not want to see a picture of Juan Mata in a scum shirt. You're a member of a Liverpool forum. Seriously, what the fuck is wrong with you? I'm guessing you're from Chicago or Malaysia or somewhere and have no fucking clue as to what you are doing.
I'm not sure what Adidas are playing at here really. Were they tricked by Ed Woodward into believing that some other kit manufacturer was paying 50m a year? It reminds me of that crazy Seth Johnson / Leeds United story / urban myth.
I take on board what you say about increasing the brand profile, but your figures suggest that the shirts just pop up out of thin air. There is a cost and tax element to be considered before you can arrive at a profit figure. For example a £60 shirt is probably £50 net of VAT. Even at a profit margin of say 50% the figures would be 2m ( very ambitious) at £25 = £50M.
Or am I reading the process wrong?
The 2m figure is complete fantasy. They sold 1.4m at their peak, their not going to get a 33% increase in sales especially when they're out of Europe. If anything, that will lead to a potential decline in sales. Adidas reckon they'll make £75m a year profit and to do that someone has calculated - at current shirt sales levels - they need to sell at £100 a pop.
An increase in sales of 33% after winning the quadruple is unlikely never mind after relative failure.
I'd say the cost of producing and getting a shirt made in China is f all. £10 tops
This article say £4 in Indonesia and £17 in Europe.
http://www.mirror.co.uk/news/uk-news/englands-90-world-cup-shirt-3376507
I don't think it will happen next year but maybe they reckon over the course of the contract shirt sales will increase.
Also people are forgetting that Adidas are probably willing to spend £ X m pet year just to have their logos on our shirts like Chevrolet or Standard Chartered are.
Maybe that is £25m out of the £75m which makes the deal look much more sensible.
Its a very good deal for Utd regardless. But 10 years is a long time. Still, Chevrolet and Adidas would conpensate at least financially if you miss out on CL this season and next. Its on the player recruitment side you'll get hit the hardest first with those deals in place, short term at least.
When our Warrior deal is finished I'd like us to sign with Nike.
Having lost both Arse and Utd, they need someone at the top.
When our Warrior deal is finished I'd like us to sign with Nike.
Having lost both Arse and Utd, they need someone at the top.
That's irrelevant though. The premise remains that based on current sales levels they'd need to sell shirts at £100 a pop to make target profit. Your idea of increasing sales by almost 50% just isn't viable. Any business that could do that would be performing amazingly but achieving that in a fairly saturated market just doesn't have any real groundings in reality. Still a great deal for your club of course but ultimately will the fans bear the cost yet again ?
I get what you're saying, but personally I wouldn't take anything for granted about the size of the market over the next 5+ years. There's potential for huge growth in China, India, and maybe even the States. No-one really knows how big this thing might get.
Well even £10 knocks 20M off your calculations. Another £10 for VAT is another 20M. And there are more costs, (other than the actual manufacture), involved in getting a product to a point of sale and beyond.
To hit the profit figure that growth would have to happen much sooner than 5+ years unless there was some form a huge growth explosion.
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