Nike Sponsorship

[jrb]

Let's look at it like this.

United still owe £360mill on their remaining debt.(we have no debt) Apparently they are paying down in the region of £60mill each season. That's 6 yearly payments of £60mill to clear the debt. Add our current kit sponsorship deal which is £12mill a season, combine both and that comes £72mill. So in essence United will be better off by £3mill each season. Yes I appreciate that £60mill would have to come from other revenues United have, but let's just focus on this new United kit deal and tie that in with their current debt.

And don't forget. We are expanding the stadium to £62,000. How much money is that going to bring in over 10 years? We will also gain revenues from the new £100mill training academy. How much money will that bring in over 10 years. Then we have the yet to be revealed leisure destination of national and international significance and the Etihad Campus around the stadium. How much will that bring in over 10 years? And finally, the £1bill housing proposal in East Manchester, with Sheik Mansour and ADUG being the largest investor. How much will that bring in over 10 years?

The difference being. The Glazers don't have the money up front like Sheikh Mansour does. They are still paying off their massive debt. Sheikh Mansour has the money and is ready to invest it. He is investing in proposals the Glazers and United can only dream off. United rely on a successful team and their fans to generate revenue. City rely on Sheikh Mansour and his business acumen to generate revenue. Of course, having a successful team also helps. ;-0

 

[Damocles]

It's worth noting that this deal isn't like for like with many of the ones listed, as Adidas now have the rights to produce MUFC merchandise and actually keep the money 100% to themselves. As somebody mentioned earlier in the thread, most teams just have a kit sponsorship deal and their merchandising arrangements are separate.

Basically this isn't a kit deal, United have outsourced their entire brand to Adidas.

 

[jrb]

It's worth noting that this deal isn't like for like with many of the ones listed, as Adidas now have the rights to produce MUFC merchandise and actually keep the money 100% to themselves. As somebody mentioned earlier in the thread, most teams just have a kit sponsorship deal and their merchandising arrangements are separate.

Basically this isn't a kit deal, United have outsourced their entire brand to Adidas.

Where's that snippet from?

Interesting if true?

 

[MC ID]

It's worth noting that this deal isn't like for like with many of the ones listed, as Adidas now have the rights to produce MUFC merchandise and actually keep the money 100% to themselves. As somebody mentioned earlier in the thread, most teams just have a kit sponsorship deal and their merchandising arrangements are separate.

Basically this isn't a kit deal, United have outsourced their entire brand to Adidas.

Where's that snippet from?

Interesting if true?

Agreed, that is an interesting development if true.

 

[tonea2003]

It's worth noting that this deal isn't like for like with many of the ones listed, as Adidas now have the rights to produce MUFC merchandise and actually keep the money 100% to themselves. As somebody mentioned earlier in the thread, most teams just have a kit sponsorship deal and their merchandising arrangements are separate.

Basically this isn't a kit deal, United have outsourced their entire brand to Adidas.

Where's that snippet from?

Interesting if true?

Agreed, that is an interesting development if true.

i'm sure i heard its the other way round in that utd keep more of the revenue as well as adidas paying for the privilege

hence the reason for nike bailing

i hope i'm wrong as i much prefer dam's version

 

[simon12]

From sky sports website.

A club statement on Monday read: "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 £750m, subject to certain adjustments, beginning with the 2015/2016 campaign."


Comments from some accountants underneath the article saying that it includes all merchandising.

<a class="postlink" href="http://www1.skysports.com/football/news/11667/9381853/premier-league-manchester-united-secure-adidas-kit-deal" onclick="window.open(this.href);return false;">http://www1.skysports.com/football/news ... s-kit-deal</a>

 

[MC ID]

Where's that snippet from?

Interesting if true?

Agreed, that is an interesting development if true.

i'm sure i heard its the other way round in that utd keep more of the revenue as well as adidas paying for the privilege

hence the reason for nike bailing

i hope i'm wrong as i much prefer dam's version

I'm pretty eager to find out, hopefully it's as damocles says.

While I find all these kinds of discussions deeply interesting I do wonder as a relative newcomer to football in general (only ever supported City, started in about 2009) was there anything like this discussed way back when, hell even 10years ago? Maybe it's just to do with the fact we can all easily come online now to find other fanatics with boundless information. Any of you kind sirs want to enlighten me? Can't imagine many people in the 80s all getting to the pub to discuss media buys, shirt deals and the like.

 

[FanchesterCity]

Let's look at it like this.

United still owe £360mill on their remaining debt.(we have no debt) Apparently they are paying down in the region of £60mill each season. That's 6 yearly payments of £60mill to clear the debt. Add our current kit sponsorship deal which is £12mill a season, combine both and that comes £72mill. So in essence United will be better off by £3mill each season. Yes I appreciate that £60mill would have to come from other revenues United have, but let's just focus on this new United kit deal and tie that in with their current debt.

And don't forget. We are expanding the stadium to £62,000. How much money is that going to bring in over 10 years? We will also gain revenues from the new £100mill training academy. How much money will that bring in over 10 years. Then we have the yet to be revealed leisure destination of national and international significance and the Etihad Campus around the stadium. How much will that bring in over 10 years? And finally, the £1bill housing proposal in East Manchester, with Sheik Mansour and ADUG being the largest investor. How much will that bring in over 10 years?

The difference being. The Glazers don't have the money up front like Sheikh Mansour does. They are still paying off their massive debt. Sheikh Mansour has the money and is ready to invest it. He is investing in proposals the Glazers and United can only dream off. United rely on a successful team and their fans to generate revenue. City rely on Sheikh Mansour and his business acumen to generate revenue. Of course, having a successful team also helps. ;-0

This isn't right.

They are already paying down that debt, so you can't double count their payments in the way you're doing.
The extra revenue from the Adidas deal is just that... extra revenue for them.

What you're suggesting is as though they are currently paying of NO debt, and suddenly 60 million will be lost from the 75 coming in from Adidas. It won't.

They will of course lose CL money, but for how long? not long if they spend big (which they can now do being out of FFP for CL - not that it would have mattered much anyway with their astronomic revenues).

 

[ChicagoBlue]

Loving all the wannabe accountants and marketing experts on here.

Chill out and leave it to the people who have guided us win two league titles in 3 seasons.

So, it was the "accountants and marketing experts" that won those titles?! WOW, who knew?!

BTW, what about those that might have some background in those areas? Can THEY make a suggestion or have an opinion?

 

[Damanino]

Its a stupid idea but what IF?

What IF Mansour would buy 1 million shirts this summer. Its about 50m pounds cost right?

Nike sees a growth in our shirt selling they would say wow City just made it 3 or 4 times more shirt sales than expected. We do a new deal with them maybe from 12m to 20m per year over 5 years. That 5*8m extra in 5 years so basically Nike would put back the cost of 1m new shirts into the club. Also if we get % of sold shirts it all comes back to the club in different ways.

What Mansour does with 1m new shirts I dont care.:))

And what Nike thinks when next summer shirt sales would drop back 1m less I wouldnt care either.:)

50 m is not much for Manosur. Probably all the wages and fees that went on RSC, Bridge, Adebayor was way more then 50m and we didnt get manygreat games out of them or something...

Could this trick be played?

Because FFP actually forces us to think on similar tricks if we want to keep up with the biggest brands...


While the ones with lot less richer owners/ambition are pretty much fucked forever. A team like Everton could finish ahead of United just because United has the worst fucking managerial performance in 30 years probably with Moyes. but that happens at a top club like United so rarely. And even that only got Everton an EL place.