The Fat el Hombre
Well-Known Member
Re: City & FFP (continued)
Spit it out fbloke
Spit it out fbloke
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City & FFP | 2020/21 Accounts released | Revenues of £569.8m, £2.4m profit (p 2395)
- Thread starter Marvin
- Start date
Chippy_boy
Well-Known Member
Re: City & FFP (continued)
It's taken me a while to reply to this as I have been away from my computer with the relevant files. However, the above is incorrect.
The Adidas deal is £75m per year and may be increased if they win the PL, FA Cup or CL. They do not have to win any of these to get a steady £75m per year.
If they fail to get into the CL for 2 consecutive seasons, beginning with the 2015/16 season, then the £75m can be reduced. So they would have to not qualify now until 2017/18 in order to receive anything less than £75m/year. This is pretty bloody unlikely, unfortunately.
fbloke said:MeatHunterrr said:But you have to remember that even if we catch them in 2014/15, they will take 1st place again because of the Adidas deal, IF they get to Champions League, otherwise they have 30% slashed off that Adidas deal per annum. Also the CL revenue they get on top of that.Silva_Spell said:According to Soriano, our revenue for 13/14 - the accounts set to be released in the new year - is expected to be around 404m Euros (£315-320m)
With the extra £30-35m p/a from the new CFA sponsors and the Etihad extension that would put us at around 444m Euros (£350m) *before* any other increases in revenue for this season - not far away from being the highest in the PL (Utd expected to be around £390m this season)
Suck on that, twatini et al.
The Adidas deal they signed is something £75m per annum?, IF Champions League.
One thing is laughable tho that their wage bill went over £200m mark even before Falcao and Di Maria.
The Adidas deal created headlines for its size but once the details started to emerge it is clear that for the £75m figure to be hit they have to win the league and CL.
If they fail to win silverware and fail to get into the CL they get paid less than under the previous Nike deal.
It was a deal of desperation as far as united are concerned and Adidas were being very businesslike and realistic in the structure. The theatre of dreams means nothing to the hard nosed German businessmen at Adidas.
It's taken me a while to reply to this as I have been away from my computer with the relevant files. However, the above is incorrect.
The Adidas deal is £75m per year and may be increased if they win the PL, FA Cup or CL. They do not have to win any of these to get a steady £75m per year.
If they fail to get into the CL for 2 consecutive seasons, beginning with the 2015/16 season, then the £75m can be reduced. So they would have to not qualify now until 2017/18 in order to receive anything less than £75m/year. This is pretty bloody unlikely, unfortunately.
Re: City & FFP (continued)
Wow, well I dont think i'm alone in having read numbers that said the exact opposite somewhere. I guess we can only hope LVG carries on in the same manner as Moyes did.
Chippy_boy said:fbloke said:MeatHunterrr said:But you have to remember that even if we catch them in 2014/15, they will take 1st place again because of the Adidas deal, IF they get to Champions League, otherwise they have 30% slashed off that Adidas deal per annum. Also the CL revenue they get on top of that.
The Adidas deal they signed is something £75m per annum?, IF Champions League.
One thing is laughable tho that their wage bill went over £200m mark even before Falcao and Di Maria.
The Adidas deal created headlines for its size but once the details started to emerge it is clear that for the £75m figure to be hit they have to win the league and CL.
If they fail to win silverware and fail to get into the CL they get paid less than under the previous Nike deal.
It was a deal of desperation as far as united are concerned and Adidas were being very businesslike and realistic in the structure. The theatre of dreams means nothing to the hard nosed German businessmen at Adidas.
It's taken me a while to reply to this as I have been away from my computer with the relevant files. However, the above is incorrect.
The Adidas deal is £75m per year and may be increased if they win the PL, FA Cup or CL. They do not have to win any of these to get a steady £75m per year.
If they fail to get into the CL for 2 consecutive seasons, beginning with the 2015/16 season, then the £75m can be reduced. So they would have to not qualify now until 2017/18 in order to receive anything less than £75m/year. This is pretty bloody unlikely, unfortunately.
Wow, well I dont think i'm alone in having read numbers that said the exact opposite somewhere. I guess we can only hope LVG carries on in the same manner as Moyes did.
Chippy_boy
Well-Known Member
Re: City & FFP (continued)
FYI I got the info from their October 30th 2013 prospectus pending the offering of 12,000,000 new shares. You can be 100% certain it's correct or they would have class action lawsuits all over the place.
The exact text is this:
"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."
So, sadly I think their demise is not something that's going to happen in the forseeable. LVG will just keep spending until they start winning things again.
fbloke said:Chippy_boy said:fbloke said:The Adidas deal created headlines for its size but once the details started to emerge it is clear that for the £75m figure to be hit they have to win the league and CL.
If they fail to win silverware and fail to get into the CL they get paid less than under the previous Nike deal.
It was a deal of desperation as far as united are concerned and Adidas were being very businesslike and realistic in the structure. The theatre of dreams means nothing to the hard nosed German businessmen at Adidas.
It's taken me a while to reply to this as I have been away from my computer with the relevant files. However, the above is incorrect.
The Adidas deal is £75m per year and may be increased if they win the PL, FA Cup or CL. They do not have to win any of these to get a steady £75m per year.
If they fail to get into the CL for 2 consecutive seasons, beginning with the 2015/16 season, then the £75m can be reduced. So they would have to not qualify now until 2017/18 in order to receive anything less than £75m/year. This is pretty bloody unlikely, unfortunately.
Wow, well I dont think i'm alone in having read numbers that said the exact opposite somewhere. I guess we can only hope LVG carries on in the same manner as Moyes did.
FYI I got the info from their October 30th 2013 prospectus pending the offering of 12,000,000 new shares. You can be 100% certain it's correct or they would have class action lawsuits all over the place.
The exact text is this:
"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."
So, sadly I think their demise is not something that's going to happen in the forseeable. LVG will just keep spending until they start winning things again.
GXCity
Well-Known Member
Re: City & FFP (continued)
The best thing is that based on current shirt sales, Adidas will have to sell each shirt at £100 to break even.
fbloke said:Chippy_boy said:fbloke said:The Adidas deal created headlines for its size but once the details started to emerge it is clear that for the £75m figure to be hit they have to win the league and CL.
If they fail to win silverware and fail to get into the CL they get paid less than under the previous Nike deal.
It was a deal of desperation as far as united are concerned and Adidas were being very businesslike and realistic in the structure. The theatre of dreams means nothing to the hard nosed German businessmen at Adidas.
It's taken me a while to reply to this as I have been away from my computer with the relevant files. However, the above is incorrect.
The Adidas deal is £75m per year and may be increased if they win the PL, FA Cup or CL. They do not have to win any of these to get a steady £75m per year.
If they fail to get into the CL for 2 consecutive seasons, beginning with the 2015/16 season, then the £75m can be reduced. So they would have to not qualify now until 2017/18 in order to receive anything less than £75m/year. This is pretty bloody unlikely, unfortunately.
Wow, well I dont think i'm alone in having read numbers that said the exact opposite somewhere. I guess we can only hope LVG carries on in the same manner as Moyes did.
The best thing is that based on current shirt sales, Adidas will have to sell each shirt at £100 to break even.
Re: City & FFP (continued)
They will saved a fortune on not having to order PL Champions badges for a few seasons.
GXCity said:fbloke said:Chippy_boy said:It's taken me a while to reply to this as I have been away from my computer with the relevant files. However, the above is incorrect.
The Adidas deal is £75m per year and may be increased if they win the PL, FA Cup or CL. They do not have to win any of these to get a steady £75m per year.
If they fail to get into the CL for 2 consecutive seasons, beginning with the 2015/16 season, then the £75m can be reduced. So they would have to not qualify now until 2017/18 in order to receive anything less than £75m/year. This is pretty bloody unlikely, unfortunately.
Wow, well I dont think i'm alone in having read numbers that said the exact opposite somewhere. I guess we can only hope LVG carries on in the same manner as Moyes did.
The best thing is that based on current shirt sales, Adidas will have to sell each shirt at £100 to break even.
They will saved a fortune on not having to order PL Champions badges for a few seasons.
M18CTID
Well-Known Member
Re: City & FFP (continued)
This is what I don't understand about the Adidas deal. United sell a lot of shirts - about 1.5 million a year - but that isn't anywhere near enough to justify paying them £75 million a year. And it's not like Adidas need to piggy-back on United's name to promote their own brand because they're already the most recognised sportswear firm in the world along with Nike.
GXCity said:fbloke said:Chippy_boy said:It's taken me a while to reply to this as I have been away from my computer with the relevant files. However, the above is incorrect.
The Adidas deal is £75m per year and may be increased if they win the PL, FA Cup or CL. They do not have to win any of these to get a steady £75m per year.
If they fail to get into the CL for 2 consecutive seasons, beginning with the 2015/16 season, then the £75m can be reduced. So they would have to not qualify now until 2017/18 in order to receive anything less than £75m/year. This is pretty bloody unlikely, unfortunately.
Wow, well I dont think i'm alone in having read numbers that said the exact opposite somewhere. I guess we can only hope LVG carries on in the same manner as Moyes did.
The best thing is that based on current shirt sales, Adidas will have to sell each shirt at £100 to break even.
This is what I don't understand about the Adidas deal. United sell a lot of shirts - about 1.5 million a year - but that isn't anywhere near enough to justify paying them £75 million a year. And it's not like Adidas need to piggy-back on United's name to promote their own brand because they're already the most recognised sportswear firm in the world along with Nike.
Re: City & FFP (continued)
Thanks for that.
Am i being very dumb in that the minimum is guaranteed at £750m over ten years but they could lose 30% if they miss out on CL for 2 seasons?
So if they were to fail to get into the CL for 9 seasons of the 10 year deal Adidas reduce the payment for those seasons to £52.5m but g'teeing that £750m means that they get a bumper final year payment to fulfil the g'tee?
Chippy_boy said:fbloke said:Chippy_boy said:It's taken me a while to reply to this as I have been away from my computer with the relevant files. However, the above is incorrect.
The Adidas deal is £75m per year and may be increased if they win the PL, FA Cup or CL. They do not have to win any of these to get a steady £75m per year.
If they fail to get into the CL for 2 consecutive seasons, beginning with the 2015/16 season, then the £75m can be reduced. So they would have to not qualify now until 2017/18 in order to receive anything less than £75m/year. This is pretty bloody unlikely, unfortunately.
Wow, well I dont think i'm alone in having read numbers that said the exact opposite somewhere. I guess we can only hope LVG carries on in the same manner as Moyes did.
FYI I got the info from their October 30th 2013 prospectus pending the offering of 12,000,000 new shares. You can be 100% certain it's correct or they would have class action lawsuits all over the place.
The exact text is this:
"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."
So, sadly I think their demise is not something that's going to happen in the forseeable. LVG will just keep spending until they start winning things again.
Thanks for that.
Am i being very dumb in that the minimum is guaranteed at £750m over ten years but they could lose 30% if they miss out on CL for 2 seasons?
So if they were to fail to get into the CL for 9 seasons of the 10 year deal Adidas reduce the payment for those seasons to £52.5m but g'teeing that £750m means that they get a bumper final year payment to fulfil the g'tee?
Centurions
Well-Known Member
Re: City & FFP (continued)
I was wondering that myself because the statement doesn't really make sense.fbloke said:Chippy_boy said:fbloke said:Wow, well I dont think i'm alone in having read numbers that said the exact opposite somewhere. I guess we can only hope LVG carries on in the same manner as Moyes did.
FYI I got the info from their October 30th 2013 prospectus pending the offering of 12,000,000 new shares. You can be 100% certain it's correct or they would have class action lawsuits all over the place.
The exact text is this:
"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."
So, sadly I think their demise is not something that's going to happen in the forseeable. LVG will just keep spending until they start winning things again.
Thanks for that.
Am i being very dumb in that the minimum is guaranteed at £750m over ten years but they could lose 30% if they miss out on CL for 2 seasons?
So if they were to fail to get into the CL for 9 seasons of the 10 year deal Adidas reduce the payment for those seasons to £52.5m but g'teeing that £750m means that they get a bumper final year payment to fulfil the g'tee?
Chippy_boy
Well-Known Member
Re: City & FFP (continued)
I didn't copy all of it since it went on a bit.
The final sentence says (forgive me I can't be arsed looking it up again) that if they do take a hit in any one year, whatever that reduction is, comes off the £750m total. (So say they only get £60m one year, then the total for the 10 years is reduced by £15m to £735m).
I didn't copy all of it since it went on a bit.
The final sentence says (forgive me I can't be arsed looking it up again) that if they do take a hit in any one year, whatever that reduction is, comes off the £750m total. (So say they only get £60m one year, then the total for the 10 years is reduced by £15m to £735m).