Nike

[Barrington Womble]

44 minutes ago, Reacher said:

 

 

 

Thank you for the breakdown and explanation, I usually give most people or organisations the benefit of the doubt but after the last couple of years my opinion is slowly changing as regards to FSG.

 

 

 

A few years ago, I'd have looked at that article and pay no heed to it. Not so much anymore and I'd imagine there’s plenty of other reds paying a lot more attention as to what FSG might be doing or not doing in many cases.

 

my personal view is they will be as flexible with reality as the law allows (or obviously the rules of the competitions too). And in many ways, why would you not be as flexible as you can, even if it is only to protect your commercially sensitive information from your competitors? when say arsenal come to negotiate a deal with adidas, if they do so knowing exactly what we're getting from NB or Nike, then it strengthens their position. So why would we want that level of detail in the public domain? 

 

I have absolutely no issue with the club being as loose as legally possible with commercial information - all of their competitors will do the same. it just means i don't really take a great deal from the accounts. turnover is probably about right. debt is probably about right. amortisation is probably about right. and a few other things. the rest? well who the fuck knows, because it depends exactly what they chuck in the big buckets of "matchday", "commercial", "television" & "wages" (or and this new "other expenses" category i think they have now). and they're not going to line item them, this is not individual transactions we see like a bank statement. just generalised shuffling of money from column a to column b. 

[TD_LFC]

20 minutes ago, Barrington Womble said:

(or and this new "other expenses" category i think they have now).

 

Other expenses has been in the accounts as far back as 1984 at least.

[Harry Squatter]

The wage bill should go down a lot now with about 5 high earners off it.

[Barrington Womble]

7 hours ago, TD_LFC said:

 

Other expenses has been in the accounts as far back as 1984 at least.

Has it really? At about 10-15% of turnover? 

[Red74]

7 hours ago, Harry Squatter said:

The wage bill should go down a lot now with about 5 high earners off it.

Don’t forget the £100 million trophy winning bonus the squad got has to come off too 

[Trumo]

With the New Balance deal, we were getting £45m per season and also a (small) percentage of the profit on merchandise sales. The deal wasn't heavily incentivised towards the merchandising, and NB didn't have the same distribution reach as Nike. The current Nike deal brings us less up front (£30m) but is very heavily incentivised towards merchandising sales, and we also get a larger cut of the profit on those sales. The global reach is greater and the sales drive is bigger and much more obvious. We also have those tie-ins with LeBron James and Converse gear.

 

With NB we were making something like £45m plus an additional £15-20m, whereas with Nike it's £30m plus an additional £60m going by the reports.

 

The next deal (most likely we will remain with Nike as only Adidas have the financial pull to match, and they've cornered most of the big guns in the largest markets already) will probably again be heavily incentivised on merchandising sales, but the up-front figure should exceed £30m.

 

The thing about these deals is that prices shoot up massively as the companies look for a return on their outlay. Look at us for example. The player versions of the shirts now retail at well over £100, and that's before you factor in things like names, numbers and patches. A lot of people cannot justify the cost so look towards the likes of DHgate for knock-off bargains.

[Harry Squatter]

26 minutes ago, Red74 said:

Don’t forget the £100 million trophy winning bonus the squad got has to come off too 

Forgot about that.

 

Even though the squad got a £4m bonus between them for winning the Champions League. The other £96m got divided up between Salah, Van Dijk and Firmino. Mane used to get a £500k bonus every time he sprinted past someone.