• You may have to login or register before you can post and view our exclusive members only forums.
    To start viewing messages, select the forum that you want to visit from the selection below.

Scums kit deal

Status
Not open for further replies.
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 can't imagine any manufacturer selling shirts for £100 a pop. There would be uproar. That would then make a junior/ kids shirt about £60 or something like that.

Would love to see the business case from Adidas for this.
 
I can't imagine any manufacturer selling shirts for £100 a pop. There would be uproar. That would then make a junior/ kids shirt about £60 or something like that.

Would love to see the business case from Adidas for this.


As I said earlier maybe they are willing to spend £25m per season just to have their logo on our shirts for marketing.
 
Could be, its interesting that Nike pulled out though. They know the market and what its worth.
They also lost Arsenal to Puma so you'd think they wanted to keep Utd.
 
Could be, its interesting that Nike pulled out though. They know the market and what its worth.
They also lost Arsenal to Puma so you'd think they wanted to keep Utd.

Or maybe Nike are slowly leaving English football or unable to compete with Adidas.
 
Or maybe Nike are slowly leaving English football or unable to compete with Adidas.

Doubtful. Leaving the most popular football League in the world doesnt sound like something Nike would do easily.

As I said earlier, would love us to work with Nike when the Warrior deal expires.
 
I'd take whoever offers us the most money. Would add in some clauses about requiring to pay us an additional £5m per shite slogan e.g. Rise Up. We Come Not To Play etc.
 
I can't imagine any manufacturer selling shirts for £100 a pop. There would be uproar. That would then make a junior/ kids shirt about £60 or something like that.

Would love to see the business case from Adidas for this.


I've seen some Adidas shirts selling for £65 a pop this world cup. There's "replica" shirts and "performance" shirts. They do sell the same kit as the players wear for £185 as well. £185 to be a full kit wanker.
 
I've seen some Adidas shirts selling for £65 a pop this world cup. There's "replica" shirts and "performance" shirts. They do sell the same kit as the players wear for £185 as well. £185 to be a full kit wanker.


Wow. Didn't know that. Fucking hell!
 
Yes it is.


Of course it is.

How is any different than Chevrolet paying us £53m to have their name on our shirts?


Maybe we're disagreeing on the same thing. A business case is a company willing to spend £X to achieve £Y and/or other gains. Those other gains are likely the £750m profit and other potential profits they expect to make over 10 years. A business case is not here's £25m for the honour of putting our badge on your kit. Regardless, this is a gamble by Adidas and we'll soon find out whether it's the fans who are footing the cost or not.
 
Maybe we're disagreeing on the same thing. A business case is a company willing to spend £X to achieve £Y and/or other gains. Those other gains are likely the £750m profit and other potential profits they expect to make over 10 years. A business case is not here's £25m for the honour of putting our badge on your kit. Regardless, this is a gamble by Adidas and we'll soon find out whether it's the fans who are footing the cost or not.


Advertising and brand-building are still business decisions, though. It's just not as clear-cut as £50 for a shirt less £20 in rights and £10 in manufacturing and distribution and £10 in retail making £10 profit.
 
Advertising and brand-building are still business decisions, though. It's just not as clear-cut as £50 for a shirt less £20 in rights and £10 in manufacturing and distribution and £10 in retail making £10 profit.


It's not a business case though is it which is if I invest X I expect Y.
 
It's not a business case though is it which is if I invest X I expect Y.


I don't know. Isn't it? I'm not sure what a business case is and what it isn't. What I mean is that it could be a commercial investment with the goal of a return. Call them X and Y if you want. Just like any marketing activity. Spend X on a campaign, increase sales by Y.

Personally I'd call that a business case. Whatever, though. The point is it's a commercial decision.
 
I don't know. Isn't it? I'm not sure what a business case is and what it isn't. What I mean is that it could be a commercial investment with the goal of a return. Call them X and Y if you want. Just like any marketing activity. Spend X on a campaign, increase sales by Y.

Personally I'd call that a business case. Whatever, though. The point is it's a commercial decision.


It's a commercial decision I agree but marketing is generally about brand awareness which can differ from a business case which defines what value should be derived from a defined investment in order for that investment to be approved.

The underlying point remains though - how will Adidas achieve their profits ?
 
It's a commercial decision I agree but marketing is generally about brand awareness which can differ from a business case which defines what value should be derived from a defined investment in order for that investment to be approved.

The underlying point remains though - how will Adidas achieve their profits ?


I don't know, like Si says it'd be interesting to see their reasoning. But what I and the manc are saying is that I don't think you can just say 'direct cost of deal > than direct revenue from shirts therefore deal has failed'. It could be part of a much more ambitious expansion than that.
 
I don't know, like Si says it'd be interesting to see their reasoning. But what I and the manc are saying is that I don't think you can just say 'direct cost of deal > than direct revenue from shirts therefore deal has failed'. It could be part of a much more ambitious expansion than that.


I haven't said anything about a failed deal Peter - they're words you're using. All I've said is that it's reported ,at the current rate of shirt sales, to achieve the target profit for Adidas shirts will have to be sold at £100 a go. In that sense it's a gamble but let's wait and see.
 
Sorry we'd wandered so far from the original point I'd forgotten about the profit projections. Yeah if that's what they're really banking on then they have quite a challenge.
 
Sorry we'd wandered so far from the original point I'd forgotten about the profit projections. Yeah if that's what they're really banking on then they have quite a challenge.

Possibly but I guess they are stuck with £75m per season now regardless of what happens.

I'm sure there were similar comments when we signed the £25m Nike deal 12 years ago and they ended up paying us over £35m last season. Which is more most current deals of other teams.
 
Possibly but I guess they are stuck with £75m per season now regardless of what happens.

I'm sure there were similar comments when we signed the £25m Nike deal 12 years ago and they ended up paying us over £35m last season.


It's not really a challenge for Man Utd though it's one for Adidas. The only implication really is will the fans get hit (as per fucking usual) as a result of it ? I.e. drive prices up ?
 
My impression has always been that there's something unique about the English clubs in terms of support in developing markets. Maybe it's a biased view because we see the teams on their tours and all the fans out to worship them. Maybe it's the same for Real Madrid and Bayern Munich and Juventus. Somehow I doubt it though.

And among English teams Utd are a behemoth. If I were running Adidas I'd absolutely pay a premium to associate the brand with them as these markets grow and grow.
 
So would they apparently. I'm not convinced about the growth argument though. Anyway...
 
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.


You sound like an absolute dick. Shut the fuck up will you?
 
Glazers are selling £90m of shares and they have had to release new info on the kit deal.

We lose 30% if we fail to we fail to qualify for the CL for two consecutive seasons starting in 2015/16, bring deal down to £52.5m per season.

If we get relegated the deal is halved and can then be cancelled.

However, we can get an additional £4m pa if we start winning stuff again.

And more significantly we retain the right to sell non adidas branded stuff in stores and online.

Global Technical Sponsorship and Dual Branded Licensing Rights Agreement

We have reached a 10-year agreement with adidas with respect to our global technical sponsorship and dual-branded licensing rights, beginning with the 2015/16 season. The minimum guarantee payable by adidas is equal to £750 million over the 10-year term of the agreement or an average of £75 million per year, though actual cash payments per year will vary, subject to certain adjustments including those described below.

Payments due in a particular year may increase if our first team wins the Premier League, FA Cup or Champions League, or decrease if our first team fails to participate in the Champions League for two or more consecutive seasons starting with the 2015/16 season, with the maximum possible increase being £4 million per year and the maximum possible reduction being 30% of the applicable payment for that year. If the first team fails to participate in the Champions League for two or more consecutive seasons, then the reduction is applied as from the year in which the second consecutive season of non-participation falls. In the event of a reduction in any year due to the failure to participate in the Champions League for two or more consecutive seasons, the payments revert back to the original terms upon the first-team participating again in the Champions League. Any increase or decrease in a particular year would have the effect of increasing or decreasing the minimum guarantee amount of £750 million payable over the 10-year term of the agreement.

The minimum guarantee does not include payments for rights with respect to mono-branded licensing rights or the right to create and operate Manchester United branded soccer schools, physical retail channels and e-commerce retail channels, which rights may generate additional revenue for the club.

The consideration does not include the value of the adidas products that will be supplied annually to the club or performance related incentives and bonuses. The club may also benefit from additional royalty payments upon exceeding a threshold of sales.

The agreement with adidas is subject to reciprocal termination provisions in respect of material breach and insolvency. Adidas may reduce the applicable payments for a year by 50% if the first team is not participating in the English Premier League during that year. In addition, adidas may terminate the agreement by giving one full-season's notice if the first team is relegated from the English Premier League or if it is otherwise determined that the first team shall not be participating in the Premier League, or the top English league.

For the 2014/15 season, Nike will continue in its role of technical sponsor and trademark licensee.
 
72343a3a50ad7f36466d3feac2cd4c60.png


Wonder if the kits come with random names as well.
 
Status
Not open for further replies.
Back
Top Bottom