I'm sorry now, but....

[Lario]

How the fuck do the Mancs get a 10 year £750m deal? Surely it can't be a guaranteed amount? The official line seems contradictory:

 

""Manchester United plc has reached a 10-year agreement with Adidas for a global technical sponsorship and dual branded licensing deal for a minimum guarantee of £750million, subject to certain adjustments, beginning with the 2015/2016 campaign."

 

I know "fuck them" an' all that. But this sort of money is massive. It'll actually cover their interest payments with some left over, which but them in a fairly strong financial position again.

[PestiRed]

It's a bastard but it probably means that we will be getting a massive increase for our next contract. The numbers are ridiculous but if Adidas, Nike etc want to pay them.....

 

Look on the bright side, at least we are not putting all our merchandising through Kitbag for £2m a year

 

 

Edit: BBC say it includes an exclusive right to distribute all merchandising products so it may be an aggregation of a number of different deals and not quite as massive as it looks

[Red Banjo]

It's still huge. Only slightly less than the club was bought for. How the Fuck they've managed to get twice as much as Real and Barca I'll never understand.

 

Assume it's the Moyes factor. Wait... What?

[PestiRed]

Adidas believe that they will bring in 1.5bn revenue from the deal and presumably are expecting to make a profit after paying Utd 50% of that, plus the various other costs of making and selling a shirt. Wonder how much it costs to make a shirt then? Bad news for sweatshop employees

[Lario]

Tis this part that has me pondering:

 

"minimum guarantee of £750million, subject to certain adjustments"

 

I mean, it's either fucking guaranteed or not. And that's supposed to be a minimum!

 

Listening to cunt Manc supporters in here, giving it loads about money, Van Gaal, Suarez, Vidal, Bony....

Normally couldn't be arsed, but I hate those fuckers!

[dickie mint]

Adidas aren't soft they'll double there few bob they've laid out as they've said,just check the big names who wear Adidas and you'll see a lot of them in the utd team over the length of the deal.

[J-V]

The Manc deal is probably similar to what they had with Nike where Adidas will own the rights to every piece of merchandise and their retail operations where's ours with Warrior is just Shirts and Training gear I believe.

 

Still a shit load of money though and as usual commercially they are ahead of the game.

[Red Banjo]

Adidas believe that they will bring in 1.5bn revenue from the deal and presumably are expecting to make a profit after paying Utd 50% of that, plus the various other costs of making and selling a shirt. Wonder how much it costs to make a shirt then? Bad news for sweatshop employees

Or good news if you factor in all the overtime they can expect. It's a double edged sword.

 

That extra 16p a week for an extra 32 hours comes in handy.

[PestiRed]

Just checked and apparently Utd sell 5m pieces of merchandise a year with about 1.4m being shirts. We sell just over 800k shirts

 

http://www.sportingintelligence.com/2012/10/08/exclusive-manchester-united-and-real-madrid-top-global-shirt-sale-charts-081001/

 

Although Adidas must have taken a chunk out of profits to land this deal, especially as their other teams will be expecting increases as a result

[an tha]

Sadly because of their success they are a massive draw for all the shirt buying whoppers all around the world.... Adidas know this of course and therefore it's a price worth paying....... Be interesting to see what would happen if they slumped over the next few years though.

 

But with the kind of financial power they have and as evidenced by deals like this, they will be able to buy well enough to be at the top. Money rules as we all know.

[Tony Moanero]

Shirt buying whoppers?

[Paco]

united in adidas reminds me of ron Atkinson, paul mcgrath, whiteside, moran, duxbury, olsen, davenport, robson, albiston and brazil

[FanchesterCity]

 

So, 1.4 million shirts a season at 50 quid a throw (say), that's 75 million quid. Then you have to take out manufacturing costs and any retailer markup. so you're probably looking at 60-65 million quid tops (per year)

 

Of course it's not JUST shirt sales, it's other mechanise too... sportswear, bags and such, plus Adidas probably get image rights to use player images on their advertising.

 

If we assume those 1.4 million people are likely to buy more than just the shirt (or there's other punters who might not buy a shirt, but will buy some other merchandise (say 30 quid worth) then they'll be making about 35 million on top of that. so that's 95 million or so.

Adidas reckon they'll make 150 million - I'd like to see how they predict that when Nike seemingly couldn't see that sort of return.

 

Nike pulled out. They had an option to match the best deal and chose not to. 

 

God knows that clauses are in the deal, but surely it has to be related to CL presence. They are a whopping brand, but sustained omission from CL is bad news for any club and their marketing.

 

And lets not forget, Adidas are Key (Major) sponsors of FIFA,  Secondary (Minor) sponsors of UEFA and shareholders in Bayern. It's very hard the believe they don't exert any influence in the running of football. 

 

Regardless, you can bet your arse that Real Madrid will be on the phone asking people how if Adidas can make 150 million a year with United (75m profit), then why can't they do something similar with Real.... 

 

There will be some very interesting calls happening, I'm sure of it.

 

 

[Red Banjo]

Fucking Chelsea. Fuck off.

 

Never realised there were 910,000 people in the world who are happy to out themselves as know nothing, plastic cunts.

 

Learn something new every day.

[PestiRed]

 

So, 1.4 million shirts a season at 50 quid a throw (say), that's 75 million quid. Then you have to take out manufacturing costs and any retailer markup. so you're probably looking at 60-65 million quid tops (per year)

 

Of course it's not JUST shirt sales, it's other mechanise too... sportswear, bags and such, plus Adidas probably get image rights to use player images on their advertising, but still, it's very hard to see how they'll double their return.

 

Nike pulled out. They had an option to match the best deal and chose not to. 

 

God knows that clauses are in the deal, but surely it has to be related to CL presence. They are a whopping brand, but sustained omission from CL is bad news for any club and their marketing.

 

And lets not forget, Adidas are Key (Major) sponsors of FIFA,  Secondary (Minor) sponsors of UEFA and shareholders in Bayern. It's very hard the believe they don't exert any influence in the running of football.

 

As above, Adidas expect an average of 150m revenue a year, which over the shirts and 3.6m other bits of merchandising seems achievable. However they are willing to pay 75m per year for this as opposed to Nike's 30m. Either they anticipate increased sales or prices, or they are happy to take a dip in profit margins for Utd (and presumably their other clubs when they renegotiate)

[FanchesterCity]

Fucking Chelsea. Fuck off.

 

Never realised there were 910,000 people in the world who are happy to out themselves as know nothing, plastic cunts.

 

Learn something new every day.

 

300,000 who buy all three shirts probably!

[Trumo]

Bear in mind those figures are up to 2011/12. There's bound to be a drop off when a club isn't competing in the Champions League or in the middle of a general downward spell but in Liverpool's case (and Arsenal's to be fair), up until then the club's biggest seller was on sale for 2 years rather than changing every year. Home shirts will be by far the biggest sellers for any club, and the other clubs were changing them every season for at least 5 or 6 years previously. That makes a difference. A more accurate barometer would be to look at the shirt sales figures from 2012 onwards.

[FanchesterCity]

Seriously.... I wonder how many sales are via airports.

 

There must be loads of people going through Heathrow, or Madrid and as an easy souvenir, they buy a shirt for their son / mate / whatever.

 

If you get in that space, I bet they do bloody well out of it.

 

My son used to work at United (just bar staff) and I'd collect him sometimes... the shop there is literally heaving every day with Japanese tourists buying full kit etc. The whole corporate operation too, it's just bloody impressive.  Irksome, but impressive. 

 

I can see the improvement at City from a crap little store to a quite decent retail outlet, but it's not even in the same league as United. 

 

I know you guys are no fans of oil clubs etc, but there's no stopping these fuckers any other way. 

[FanchesterCity]

Bear in mind those figures are up to 2011/12. There's bound to be a drop off when a club isn't competing in the Champions League or in the middle of a general downward spell but in Liverpool's case (and Arsenal's to be fair), up until then the club's biggest seller was on sale for 2 years rather than changing every year. Home shirts will be by far the biggest sellers for any club, and the other clubs were changing them every season for at least 5 or 6 years previously. That makes a difference. A more accurate barometer would be to look at the shirt sales figures from 2012 onwards.

 

Surely there are provisos in this deal that mention CL presence. It's hard to believe if United were actually out of CL for 10 years (as unlikely as that sounds) Adidas would be happy to keep paying these prices.

[PestiRed]

Bear in mind those figures are up to 2011/12. There's bound to be a drop off when a club isn't competing in the Champions League or in the middle of a general downward spell but in Liverpool's case (and Arsenal's to be fair), up until then the club's biggest seller was on sale for 2 years rather than changing every year. Home shirts will be by far the biggest sellers for any club, and the other clubs were changing them every season for at least 5 or 6 years previously. That makes a difference. A more accurate barometer would be to look at the shirt sales figures from 2012 onwards.

Figures above are an average over 5 years up to 2012. As mentioned in the article, United's website was claiming they had sold 2m that year so there must be a fair bit of flux depending on how well the team does in that season. Before they won the CL, Chelsea were roughly on par with us

[Gym Beglin]

I would imagine that the story is somewhat lacking in concrete figures, and there's some hefty guess work and rounding up.

 

It's a bit disengenious to round up sales over 5 years though.  A LOT of people bought Ronaldo and Beckham shirts once upon a time, same with Rooney in his pomp, but I'm not sure that the pull of players like Shaw, Herrera, Cleverley, Young, Mata etc is going to carry on shifting the same units.

 

Big big year for United in terms of a cross-roads in their fortunes.  They could get left face-down in the dirt, or could lazarus their way back into contention.  Looking at the strength of Chelsea and Man City and their potential signings, those two will finish in the top 4, and then Arsenal with Sanchez, and then Ozil can't have as bad a season as last year, they must fancy the top 4 as well, it seems like the fight for that last place is likely between us and United, on paper.  The sale of Suarez has to bring us down a peg in terms of confidence, but I still look at United's side and think it's poor, whereas I look at us and think that the likes of Sterling, Coutinho and Sturridge can only get better and better.

[Trumo]

Figures above are an average over 5 years up to 2012. As mentioned in the article, United's website was claiming they had sold 2m that year so there must be a fair bit of flux depending on how well the team does in that season. Before they won the CL, Chelsea were roughly on par with us

 

If your home kit is used for 2 seasons, the majority of sales of that kit will happen in its first year. There will be a drop-off in the second year as most of the people that buy such a thing will already have one. If you release a new home kit every season, you'll most likely be selling more home kits over a two-year period than you would if your home kit was on sale over that same two-year period. Home kits will sell even if away kits have nicer colours or designs (not generally something which affects Warrior then!) as they are a definite identifier of the team you support.

[FanchesterCity]

I think Chelsea benefit from marquee players too. A lot of fans will buy into clubs because they have an African player etc.

 

Also, Chelsea seem to have made a real play for the Far East market, while Liverpool and City fancy a crack at the USA. I'm not as sure about Liverpool there, you guys would know better, but I thought with FSG's involvement, the USA was important to them.

 

Obviously, it's not JUST the USA, but it does look like clubs are trying to grab / target new fan bases in specific places.

[FanchesterCity]

If your home kit is used for 2 seasons, the majority of sales of that kit will happen in its first year. There will be a drop-off in the second year as most of the people that buy such a thing will already have one. If you release a new home kit every season, you'll most likely be selling more home kits over a two-year period than you would if your home kit was on sale over that same two-year period. Home kits will sell even if away kits have nicer colours or designs (not generally something which affects Warrior then!) as they are a definite identifier of the team you support.

 

I sometimes get a shirt for xmas. It's an easy gift, but I do know some who will wait until shirts fall to 15 quid at the end of the season. I would imagine there's a little surge when that happens. Vintage shirts seem popular too... cheaper and not prone to the dating issue. No idea how that plays out with current season shirt sales.

[Malarkey]

I sometimes get a shirt for xmas. It's an easy gift, but I do know some who will wait until shirts fall to 15 quid at the end of the season. I would imagine there's a little surge when that happens. Vintage shirts seem popular too... cheaper and not prone to the dating issue. No idea how that plays out with current season shirt sales.

 

Adidas do great remakes of old stuff.