Nike Pull Plug On Rag Shirt Deal

[JamieMCFC]

How do Adidas make money out of such a deal? Are they really going to make more than £75 million a year on shirts, training tops etc?

This has the Hallmark of BS from the Glazers . Bluff the sales up as big as could be possible .

If things continue to rot at the swamp, you can bet
Adidas will have get out clauses.

Maybe I'm just naive but I can't even begin to get my head round what's actually in this for Adidas, I just don't see how it could be remotely profitable.

90+ minutes of tv exposure in every major market twice a week for 35 weeks of the year....

There aren't that many games in the PL.

albeit a few more in the Championship.

There are 38 games.

[Ted Hughes]

It just opened the door for us to what the fuck we like, & PSG too.

[ant london]

Exactly what Th'hughes said.....game the fuck on now.

Some of our sponsorship deals (Nike and Etihad especially) I think we should be pretty confident in asserting are now relatively undervalued and prime for a renegotiation.

[BlueinBosnia]

How much do they make on a shirt, £40? As I said earlier I know this will include training tops and other clothing, but will they really sell around 15/20 millions shirts a year worldwide? If so that's quite staggering.

Erm - they need to sell 2 million, if they make a 40 quid profit per shirt. They averaged 1.4 million sales per year in 2007-12.

[Feed The Goat]

Does this deal really represent true market value or whatever we were investigated on. I mean 75 mil a season for a non champions league team cant we make a complaint about their sponsorship deals like they did with our Etihad one?

[Hutch's Shoulder]

Does this deal really represent true market value or whatever we were investigated on. I mean 75 mil a season for a non champions league team cant we make a complaint about their sponsorship deals like they did with our Etihad one?

The supposed issue with our deal was the ‘related party’ element with our owner’s family also being involved with Etihad, although in the end that came to nothing.There is no such relationship between the Glazers and Adidas.

The rags seem to have done nothing wrong and negotiated a good deal. Although it is not clear if the quoted amounts are conditional (e.g. on trophies or CL qualification), nor whether 75m a year will look such an extraordinary figure at the end of the ten year deal as it does now. They may regret being tied down for so long in a few years’ time.

[Wonderwall]

Does this deal really represent true market value or whatever we were investigated on. I mean 75 mil a season for a non champions league team cant we make a complaint about their sponsorship deals like they did with our Etihad one?

The supposed issue with our deal was the ‘related party’ element with our owner’s family also being involved with Etihad, although in the end that came to nothing.There is no such relationship between the Glazers and Adidas.

The rags seem to have done nothing wrong and negotiated a good deal. Although it is not clear if the quoted amounts are conditional (e.g. on trophies or CL qualification), nor whether 75m a year will look such an extraordinary figure at the end of the ten year deal as it does now. They may regret being tied down for so long in a few years’ time.

Is an awesome deal for them, its a very strange amount though. I could imagine them breaking the record held by Barca of £31m pa by increasing it to £35m or even £40m but to state £75m pa is such a ridiculous amount that whoever negotiated it on Adidas behalf needs shooting. I can only think that it is very heavily caveated on things like winning trophies and champions league qualification. Which is the reason there are no 'exact' minimum amounts stated. I would imagine that Adidas were willing to give the big numbers as the success would give them the advertising exposure they want, but if there is no success, I would imagine there will be a clause in the contract for renegotiation of some sort or an exit strategy.

[City64]

Figures sound great for the Rags but reality surely is if they continue in downturn and DONT turn things around in the next season or two on the pitch Adidas would surely pull the plug just like NIKE have done ? No value in the deal for the sponsor if the club is failing to put it another way ;-)

[Ted Hughes]

However it works, it opens a huge door for us. Also remember the Etihad deal is flexible. Campus isn't even online yet. We had Dubai expo as an 'end of season' sponsor last season. Going rate for these small deals has now just gone up. We could have 100 of them if neccessary.

[JamieMCFC]

Does this deal really represent true market value or whatever we were investigated on. I mean 75 mil a season for a non champions league team cant we make a complaint about their sponsorship deals like they did with our Etihad one?

Who would we make a complaint to and what can be done about it? They aren't in the Champions League so they won't be investigated. We have no idea what type of hit the rags are going to take regarding the amount of merchandise they move by missing out on the Champions League. Despite Liverpool last winning the league in 1990 and their last cup in 2006 they are still one of the top kit sellers in the world.

[craigmcfc]

How much do they make on a shirt, £40? As I said earlier I know this will include training tops and other clothing, but will they really sell around 15/20 millions shirts a year worldwide? If so that's quite staggering.

Erm - they need to sell 2 million, if they make a 40 quid profit per shirt. They averaged 1.4 million sales per year in 2007-12.

Haha Yes, apologies, I was using the £750 million figure when I worked that out! Using those figures, 20 million shirts in a decade is a lot and that's if they make as much as £40 a shirt.

[patrickblue]

How are Real going to react to this, considering their marketing value is simiklar to the scum, and they're getting half the money.

[BlueinBosnia]

Figures sound great for the Rags but reality surely is if they continue in downturn and DONT turn things around in the next season or two on the pitch Adidas would surely pull the plug just like NIKE have done ? No value in the deal for the sponsor if the club is failing to put it another way ;-)

Nike didn't "pull the plug" - their contract was expiring, and they opted not to renew as they thought that 75 million quid a year did not make good business sense for their shareholders.

[Bianchi on Ice]

Figures sound great for the Rags but reality surely is if they continue in downturn and DONT turn things around in the next season or two on the pitch Adidas would surely pull the plug just like NIKE have done ? No value in the deal for the sponsor if the club is failing to put it another way ;-)

Nike didn't "pull the plug" - their contract was expiring, and they opted not to renew as they thought that 75 million quid a year did not make good business sense for their shareholders.

Plus, after the sweatshop child labour scandal the last thing they wanted was to be associated with anything else reprehensible and sordid

[BlueinBosnia]

Figures sound great for the Rags but reality surely is if they continue in downturn and DONT turn things around in the next season or two on the pitch Adidas would surely pull the plug just like NIKE have done ? No value in the deal for the sponsor if the club is failing to put it another way ;-)

Nike didn't "pull the plug" - their contract was expiring, and they opted not to renew as they thought that 75 million quid a year did not make good business sense for their shareholders.

Plus, after the sweatshop child labour scandal the last thing they wanted was to be associated with anything else reprehensible and sordid