It is interesting. I guess the details are in commercial confidence so we'll never know.
I sort of assumed that the club got what the manufacturer paid for the deal and that was that. Then when a shirt is sold a percentage goes to the retailer - whether its MUFC, or Sports Direct - the rest to the wholesaler/manufacturer. If the player gets anything then isn't it through direct endorsement deals?
Or to put it differently - suppose Addidas don't recoup £75m a year in sales of United shirts, do the club pay them back? A lot of analysts do think Addidas overpaid and that they may lose money on the deal. Nike certainly didn't think it was good value at that price.
Damn, me python got absolutely bossed on this one. Shouldn't throw stones in glass houses
I'm guessing (because, unlike Python, I'm not 100% correct) that Adidas expect sales of merchandise to increase as they expect to make £750M profit over 10 years.
Maybe Nike were worried that United might be out of the CL for a few years and they've now got City making strides forwards. Maybe they will put all their backing behind the current successful Manchester club and try and drive their income upwards as they have a cheap deal with us. I can certainly see the merchandise costing more in the club shop these days.
I'd expect United to have a deal whereby they get a % of the take if it goes over a certain level. I'd be astonished if they didn't have such a deal in place.
comment by Nickalopodis (U9257)
posted 3 hours, 47 minutes ago
Damn, me python got absolutely bossed on this one. Shouldn't throw stones in glass houses
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Eh, how do you work that one out?
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James Rodriguez sells shirts
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posted on 25/7/14
It is interesting. I guess the details are in commercial confidence so we'll never know.
I sort of assumed that the club got what the manufacturer paid for the deal and that was that. Then when a shirt is sold a percentage goes to the retailer - whether its MUFC, or Sports Direct - the rest to the wholesaler/manufacturer. If the player gets anything then isn't it through direct endorsement deals?
Or to put it differently - suppose Addidas don't recoup £75m a year in sales of United shirts, do the club pay them back? A lot of analysts do think Addidas overpaid and that they may lose money on the deal. Nike certainly didn't think it was good value at that price.
posted on 25/7/14
Damn, me python got absolutely bossed on this one. Shouldn't throw stones in glass houses
posted on 25/7/14
I'm guessing (because, unlike Python, I'm not 100% correct) that Adidas expect sales of merchandise to increase as they expect to make £750M profit over 10 years.
Maybe Nike were worried that United might be out of the CL for a few years and they've now got City making strides forwards. Maybe they will put all their backing behind the current successful Manchester club and try and drive their income upwards as they have a cheap deal with us. I can certainly see the merchandise costing more in the club shop these days.
I'd expect United to have a deal whereby they get a % of the take if it goes over a certain level. I'd be astonished if they didn't have such a deal in place.
posted on 25/7/14
comment by Nickalopodis (U9257)
posted 3 hours, 47 minutes ago
Damn, me python got absolutely bossed on this one. Shouldn't throw stones in glass houses
----------------------------------------------------------------------
Eh, how do you work that one out?
Page 2 of 2