Great Article In The Independent ( A must read) The truth!

I hope the rewards one day come more from playing football than they do from wearing a nike boot

what a minefield of bullshit

may all (particularly Beckhams )sponsors go to the wall
 
Project said:
I read that Kaka had something in the region of 20 sponsorship deals. I'm sorry but you really need to know at least the basic structure & clauses of each of these agreements and how it might affect you before you can come up with a figure that you'd like to pay the player each week.

The whole point of being able to offer him 500,000 and still make "business sense" as Cook/Hughes have implied, is that you can go to town with IP rights. What if the Adidas agreement stipulated that Kaka cannot be seen endorsing any other sporting apparel brand? There could have been a million other clauses which would have constrained our ability to market him.

I think we could have offered a ballpark figure on salary (after sleeping on it the night before the next meeting), but it sounds like they got cold feet in a hurry so we never got to that stage.

For once, i'm firmly on Cooks side on this. This is one part of football where he knows his shit. I cant really blame him for Milan/Bosco not coming through on a similarly professional level.

I am and remain a Cook sceptic and think he may have been trying to be a little too clever (you cant push new concepts (like a Kaka Foundation) where the recipient isnt receptive but if there is one area of expertise Cook has its in international brand/IP management. Again I also agree we needed to have reviewed everyone of the sponsorship deals.

Essentially, the club made an offer of E100m subject to due diligence. The due diligence element is very rarely an issue at this stage of deals in football as due diligence is called scouting in respect of players. You usually carry out due diligence pre-bid. Kaka is different (like the Beckhams, Ronaldinhos etc) and so a period of reviewing his existing contracts are essential. Both Kaka (possibly because his father wasnt sophisticated enough or because he had no desire to agree) refused such access. The only justification to say Milan bottled it must be that Cook would have expected, as I would, for them to apply pressure to release or release the documents themselves.

Im still annoyed that the statement the club made was gibberish - it just made me think they had fcked it up and were hiding something. I dont know why they couldnt have set a statement out in similar terms to above.

It should have read - they have my permission to use it today if they so choose:

"Manchester City ("the Club") confirms that it has terminated discussions in respect of the transfer of Kaka from AC Milan. Following some weeks of discussion with AC Milan, the Club agreed a substantial fee with AC Milan, subject to due diligence and contract. As part of that due diligence process, the Club made requests to both the player's advisers and AC Milan to review Kaka's image rights and other intellectual property agreements that are material to the transfer of Kaka away from AC Milan. These documents are critical to finalising the personal terms of the players contract. Unfortunately, despite repeated requests, the Club was prevented from carrying out this review and, accordingly, was unable to finalise an offer of personal terms for the player. Contrary to media speculation, the Club believes that the signing of Kaka, in addition to adding one of the world's best players to its squad, would have been commercially viable. However, without being able to complete our due diligence, the Club was left with no option but to withdraw from negotiations. [INSERT POSITIVE WORDS ABOUT HOW WE WILL TRY AND TAKEOVER THE WORLD AND THE FANS DESERVE IT ETC] "
 
jrb said:
From the Independent.(just appeared on News Now)

Where the deal went wrong: A sky-blue project that failed to convince shooting star to fly

By Ian Herbert and Frank Dunne in Bologna
Wednesday, 21 January 2009

The atmosphere among Milan's fans had a boiling intensity when Manchester City touched down in Milan on Monday but the atmosphere at the downtown solicitors' office where they sat down to talk business was chilly to say the least.


The discussions began at 4pm and ran for seven hours but refreshments did not stretch beyond a cup of coffee and there was a clue, from the fans audibly chanting Kaka's name on the street outside, as to why Bosco Leite, Kaka's father and agent, was less welcoming than City had hoped he would be. "They gave us a cup of coffee so it would be unfair to say there was no welcome," City's executive chairman, Garry Cook, reflected yesterday. "But it was evident the hospitality wasn't the finest. We heard the noise [of the fans] and that's obviously somewhat distracting. The dynamics of it were strange, very unnerving. It wasn't a place we would want to be in."

City were only there because of the encouraging noises they had been getting from Milan for over a month. Cook still has the fax, sent by Milan's vice-president Adriano Galliani on 15 December, demanding €200m (£180m) for Kaka, which prompted Cook to ask wryly at the time were Milan "talking in lira?" But last week Milan went public on the City talks, with the club's president, Silvio Berlusconi, apparently intent on gauging from the fans' response whether public opinion would allow him to take the Arab millions he badly needed or, failing that, to present himself as the man who rode to the rescue.

The levels of opposition spoke volumes. Cook said yesterday that Galliani had revealed to him during a private discussion preliminary to the full negotiations on Monday afternoon how that resistance, which rose to a groundswell at Milan's 1-0 win over Fiorentina on Saturday, was affecting him. "He told me his life had changed," Cook said. "He had had to move his office, being at the game at the weekend was threatening to him and he wanted to get this thing closed as quickly as possible. There was clearly political pressure and supporter pressure. You could feel it." This was the same Galliani who, a week ago, had been prepared to let City – with their big ideas of selling Kaka's image rights across the globe to recoup the £91m they were planning to pay Milan, probably over five years – take their best player.

Cook's six-man delegation, including lawyers with expertise in intellectual property rights, had headed to Italy with high hopes. They knew they needed to sell their image rights ideas to Leite before they would manage to meet and convince Kaka himself. But that seemed unlikely from the moment they sat down. Attempting to establish whether Kaka's current deal with Adidas left any room for City to tie up image rights deals of their own and earn a return on their £91m investment, the club met a wall of resistance from Leite.

City told Leite of their ideas for a Kaka Foundation, through which his image would make money for a "humanitarian" cause. There was talk of lucrative digital TV and internet image rights deals. Privately, City were astonished that Kaka's current entire image rights income is believed to be €8m (£7.4m). In Cook's previous role with Nike, he was responsible for the international image rights of the basketball player Michael Jordan. They earn him $12m (£8.6m) a year for his signature alone. Football clubs have not touched the surface of such commercial opportunities.

But Leite would only talk about the player's personal terms. "They didn't want to get to the complexities and the sophistication," Cook said. "They just wanted an offer in cash terms." A brooding presence as the talks foundered was Galliani, in a side room nearby.

Getting nowhere as Monday night drew on, City suggested a period of reflection and shook on a plan to meet again in Milan today. Leite's desperation for a quick deal then led City to agree to bring that date forward 24 hours. A new day, they seem to have figured, offered hope of a change of heart. But after Cook and his delegation had left, the Italians decided they could not wait – and run the risk of City embarrassing them by unilaterally calling talks off. Cook was in the departure lounge of Milan's Linate Airport At 11.03pm, Italian time, when he received a phone call from Alberto Zilani, Leite's translator. "We want a cash offer now," Zilani said. Resigned to the fact that the deal was going nowhere, Cook called it off and both clubs formally announced the fact.

Cue Berlusconi. It was at 11.11pm, by City's reckoning, that the Italian Prime Minister telephoned the first of two football programmes – Il Processo di Biscardi – on the regional channel, to announce that the deal was dead. Once again, his genius for using the media to seize the initiative, set the agenda, suggest the editorial line for newsrooms around the peninsular and, in doing so, to emerge from unfavourable situations as a hero, had come to the fore.

While admitting that the decision to reject City's world record bid was the player's, the Italian Prime Minister knew that by being the bearer of the good news, he was likely – subliminally, at least – to be perceived as the man responsible for it.

It worked. The front-page headline in yesterday's Gazzetta dello Sport said: "Silvio: Kaka is staying. Berlusconi's announcement." Corriere della Sera also chose to present the news as an announcement of Milan's owner: "Berlusconi: Kaka is staying at Milan. For him money isn't everything." Another daily, La Repubblica, usually a fierce critic of Berlusconi on political matters, weighed in with: "Berlusconi guards Kaka."

City's delegation awoke to rather different headlines in Britain. Theirs might have been a ground-breaking proposition, ahead of its time, but Milan politics and the might of Berlusconi have prevailed and their big football project is back to square one.

Brazil nuts: How Manchester City's move for Kaka was KO'd

September 2008 New Manchester City owners, the Abu Dhabi United Group, express interest in signing Kaka. City fans chant the midfielder's name. Kaka dispels rumours, pledging his loyalty to Milan.

November Amid rumours of a £100m joint bid for Gianluigi Buffon and Kaka, Robinho urges Kaka to join him at Eastlands. Kaka admits to being flattered by the interest.

13 January 2009 Executive chairman Garry Cook travels to Milan to discuss a world record £100m bid.

14 January Milan confirm discussions with Manchester City are 'ongoing'.

16 January Milan coach Carlo Ancelotti speaks of his desire to hold on to the Brazilian.

17 January Kaka plays in win over Fiorentina, with emotional scenes of celebration at the end of the match. Fans demonstrate during the game.

18 January La Liga champions Real Madrid express an interest in the midfielder, casting doubt over Manchester City's chances.

19 January Fans protest outside Kaka's house. Milan owner Silvio Berlusconi announces on Italian TV that Kaka has turned down the move. Cook accuses Milan of 'bottling it'.

Looks like the truth to me. Couldn't we however have left the complexities on image rights till we got in front of Kaka? Surely a big number on the table to Dada would have opened that door even if Dada was out of his depth as far as image rights and sponsorships were concerned?

Did we needlessly overcomplicate it ourselves??
 
Damn,

I've only just added the image of Boscoe as Grandpa Simpson to my mental picture of the negotiations for Kaka taking place in a Travelodge, and Projectriver goes and ruins it all with a simple explanation of how transfers like this would work. I could keep a comedy Boscoe, I guess, but it's not the same without the full cast.

Its ruined, I tell you. Ruined.
 
I think the key to all this was Kaka's father.

He was confronted with all Cook's ideas regarding image rights etc. Cook promised to substantially increase Kaka's earnings off the field.
So had Bosco gone to his son and told him about these new revenue generating streams perhaps Kaka might have thought to himself why didin't you do this for me already dad.

So Bosco perhaps thought that he would be exposed for his failings by the new offer from City. He therefore refused to involve himself in something City felt was important. This lead to the two parties drifting further apart and so leading to a breakdown in negotiations.
 
That'll do for me...

If this is correct then any future big targets know what we can do for them regarding their "image rights" so could encourage the likes of Villa/Messi/Kaka (again?).

Keep it up Cookie, we'll get there!
 
I can understand that due diligence and thorough research had to be done on the players existing contracts to understand how a change of club could impact him and us. However, I dont see why we couldnt give them a cash amount and just add a caveat that this may change based upon existing contracts. Say Cook gets the call at 11.03pm. Kaka's dad wants a figure. Why not just say "200k a week after tax is our wages but that will be affected by further investigation into existing imaging and contractual rights." If Kakas dad decides to hang up, then hey-ho fuck him.

Still agree with this. At the end of the day the offer shoudl have been tabled and then issues raised not the other way around. To me if Kakas dad ishappy with fiqure you move on and then discuss image rights regardless of how much it impacts the deal. They should have had a third party to close the deal between them.
 
More from the MEN, quotes from Cook:

"We visited Milan four times and the delegation on Monday involved three lawyers that represent the legal counsel for Manchester City football club," revealed the executive chairman. "It also involved a board member who had flown half way around the world from Abu Dhabi, me and one other senior executive.

"We were confined to a room, with no food or drink, and we asked some questions of the Milan and more importantly we asked some questions of the representatives of the player and they simple could not answer the questions.

"What they wanted to talk about was; `how much are you going to pay him?' We chose not to get into that and we didn't make an offer to the player.

"People perhaps don't understand the complexity of deals like this. There are all kinds of stages to deals with when it comes to players of the stature of Kaka. One is the transfer fee, the second is the commercial terms and Kaka has seven separate sponsors who all have clauses in their agreement with regard to where he plays football. You have to work through all that before you even get to personal terms.

"When those start they are related to basics and bonuses and all three stages are complex in their own right. They require legal and financial counsel and they require counsel from executives of the club.

"In some cases you can phone up a club, ask if a player is for sale, meet with him and his agent put in an offer, agree terms and it can all be done in 24 hours.

"When you are talking about players of Kaka's ilk it doesn't work like that. I think what has disappointed us that the circus that took place around this deal was created by AC Milan.

"That is the disappointing part, but we have always said we will walk away from deals that are not right and we are not anybody's fool."
 
Dubai Blue said:
moomba said:
Are you suggesting that we should never question Cook because he used to market a basketball player?
No. I'm suggesting that when it comes to complex agreements centred around intellectual property rights, Mr. Cook probably knows a little more than you.

Have you thrown your seasoncard away yet?

Dubai Blue... that's a brilliant argument.

Cook knows more about business than we do. So we can stop that line of argument straight away. Whatever he does as Executive Chairman is above criticism, 'cos he knows far more about businesss than any one on this board.

Hughes knows far more about football than we do. So we can stop that line of argument straight away. Whatever he does as Manager is above criticism, 'cos he knows far more about managing a football team than any one on this board.

Any player knows far more about football than we do. So we can stop that line of argument straight away. Whatever he does as a player is above criticism, 'cos they know far more about football than any one on this board.

Right. So just remind me again... what's the point of having a discussion board?
 
Project said:
I read that Kaka had something in the region of 20 sponsorship deals. I'm sorry but you really need to know at least the basic structure & clauses of each of these agreements and how it might affect you before you can come up with a figure that you'd like to pay the player each week.

The whole point of being able to offer him 500,000 and still make "business sense" as Cook/Hughes have implied, is that you can go to town with IP rights. What if the Adidas agreement stipulated that Kaka cannot be seen endorsing any other sporting apparel brand? There could have been a million other clauses which would have constrained our ability to market him.

I think we could have offered a ballpark figure on salary (after sleeping on it the night before the next meeting), but it sounds like they got cold feet in a hurry so we never got to that stage.

For once, i'm firmly on Cooks side on this. This is one part of football where he knows his shit. I cant really blame him for Milan/Bosco not coming through on a similarly professional level.

Very good post here .... I will be a little over the top here but if they did not check the clauses in the various contracts we could have been in the state where he would be wearing his own shirt sponser or we would have to have his. I know would not have happened, just trying to point out the extreme.
 

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