So this new kit deal then

[golden_blunder]

can we buy back Ronaldo now please?

 

[bleedred]

I warned my Arsenal supporting roommate that we would get at least 60 million a year. He said no, it's not possible, why would a company pay a mid table club that much? The fact we did this deal coming off our worst season in decades is mind blowing. Now let's spend this damn money!

I kid you not, my mate's an Arsenal fan and he genuinely believes Arsenal have more matchday revenues than United.. Not even a wind up.. I stopped arguing with him about football..

 

[bleedred]

can we buy back Ronaldo now please?

Sadly, Ronaldo is with Nike... On the other hand, Messi is. Its ON like Donkey Kong...

 

[Rado_N]

I kid you not, my mate's an Arsenal fan and he genuinely believes Arsenal have more matchday revenues than United.. Not even a wind up.. I stopped arguing with him about football..

With what they charge it wouldn't surprise me.

 

[bonusroller]

Glazers bought the club for £790m.

Servicing the debt element of that deal is estimated at £700m.

The Adidas deal is £750m.

Crazy numbers.

 

[bleedred]

With what they charge it wouldn't surprise me.

Nah..they are not..

 

[Dreaded]

Fantastic deal.

Does anyone know if we can sell none kit related clothing such as rumoured this article?

http://www.telegraph.co.uk/sport/fo...lier-approach-when-Nike-contract-expires.html

 

[JinnerJamie]

I doubt the club would have a fashion line deal lined up, it seems too bizarre.

On the dual branded line, that means Adidas will keep all profits made on items marked with both brands. United keep all the profits from the other merchandise that doesn't feature the Adidas brand.

 

[Dreaded]

I doubt the club would have a fashion line deal lined up, it seems too bizarre.

On the dual branded line, that means Adidas will keep all profits made on items marked with both brands. United keep all the profits from the other merchandise that doesn't feature the Adidas brand.

So what can we sell that doesn't have the Adidas brand?

 

[RexHamilton]

So what can we sell that doesn't have the Adidas brand?

Mugs. And Keyrings.

 

[FromTheBench]

I doubt the club would have a fashion line deal lined up, it seems too bizarre.

On the dual branded line, that means Adidas will keep all profits made on items marked with both brands. United keep all the profits from the other merchandise that doesn't feature the Adidas brand.

If Uniqlo or whoever pays enough and this agreement allows it then that is exactly sort of thing i can see the club doing. Why not ?


Anyway, hav we have kept licensing rights to operate our own stores this time like other clubs and rights to some merchandise?

Anyone know any details regarding that ?


Adidas statement says they will have exclusive rights to distribute dual branded merchandise.

 

[Cal?]

I doubt the club would have a fashion line deal lined up, it seems too bizarre.

On the dual branded line, that means Adidas will keep all profits made on items marked with both brands. United keep all the profits from the other merchandise that doesn't feature the Adidas brand.

So we can line a separate deal with Uniqlo.

 

[Sad Chris]

Sad Chris you can still get another few years out of that top yet

Thought so too. Although I might get the away kit as backup for this one...

 

[swooshboy]

So we can line a separate deal with Uniqlo.

If that is the case, then the Uniqlo numbers could be frightening......

 

[goin4glory]

Let's see us spend some of the cash. Vidal and Di Maria Woody!

 

[Devil_forever]

So we can line a separate deal with Uniqlo.

I've not seen this mentioned anywhere that the deal allows this since it was announced. Any sources to back this up with?

 

[That'sHernandez]

Sadly, Ronaldo is with Nike... On the other hand, Messi is. Its ON like Donkey Kong...

Real Madrid are adidas, the player sponsorship is irrelevant. Particularly when we are bringing in the Suarez total transfer fee in the kit deal a year alone. I'm confident we have the funds to buy Ronaldo if we wanted.

 

[That'sHernandez]

If it was ever in doubt before, this deal emphatically shows Manchester United is the biggest club in the world.

No, it shows it's the most marketable.

 

[Grinner]

I've no idea what the maths is behind this sort of thing but how hard would it be for a big club to sort their own kits out by buying/contracting with some chinese sweatshop factory and then keeping all of the sales proceeds themselves?

 

[hurricane thunderclap]

I've no idea what the maths is behind this sort of thing but how hard would it be for a big club to sort their own kits out by buying/contracting with some chinese sweatshop factory and then keeping all of the sales proceeds themselves?

I have often thought that a club our size could indeed do this. I think though that distribution and the deals that other sports manufacturers have with the sellers make this improbable.

 

[littlepeasoup]

I've no idea what the maths is behind this sort of thing but how hard would it be for a big club to sort their own kits out by buying/contracting with some chinese sweatshop factory and then keeping all of the sales proceeds themselves?

I assume they'd need to at least hire outside people with knowledge of that market to run it, or give advice. Then you've got to consider that companies like adidas and Nike have pretty significant infrastructures in place already. Probably too much hassle than it's worth.

 

[KeninDC]

I've no idea what the maths is behind this sort of thing but how hard would it be for a big club to sort their own kits out by buying/contracting with some chinese sweatshop factory and then keeping all of the sales proceeds themselves?

If United did that-then they would have to deal with distribution. Adidas (and Nike) have a great deal of experience in dealing with retailers and wholesalers who sell the merchandise. United have a few retailing outlets and sell on its website-but this is pretty small potatoes.

So-I assume that United are willing to forego revenue that would be realized from selling stuff themselves in order to take advantage of Adidas's existing distribution network.

Edit: Got beaten to the punch again. Agree with previous posts.

 

[Grinner]

That all make sense but a club like Man Utd can make it a long-term strategy and invest heavily at the front end to make it pay off a few years down the road.

 

[Bestie07]

I assume they'd need to at least hire outside people with knowledge of that market to run it, or give advice. Then you've got to consider that companies like adidas and Nike have pretty significant infrastructures in place already. Probably too much hassle than it's worth.

Another factor is that the companies like Nike/Adidas don't just sponsor big clubs for the money from shirt sales. Kit manufacturers are kind of like shirt sponsors as well with their logos prominently displayed on the shirts and that will have a significant cost attached to it as well. Remember Chevrolet paid 53 million just to have their logo printed on our shirts. Adidas will get their logo printed as well as get to sell our shirts and make significant profits off those sales. If you have your own brand of clothing, you are potentially missing out on thse advertising costs which are inbuilt in any kind of deals.

 

[Steve the Red]

Where does this come from - I saw this post on rawk: The Adidas deal also includes the training kit so its £75m combined not just for the kit. By comparison our total kit deal is £41m per (£25m kit + £16m training gear)

The kit deal covers the playing kit and the training gear - since when is it split?? No team would have a separate playing kit and training kit deal surely??

Warrior pay Liverpool 25m pounds per year - no idea where they get the 41m figure from.

I think that Adidas producing the match and training kits won't prevent separate AON and Chevrolet shirt sponsorships. After all AON aren't actually making the shirts.

 

[KeninDC]

That all make sense but a club like Man Utd can make it a long-term strategy and invest heavily at the front end to make it pay off a few years down the road.

Not saying it'll never happen. It's just that it would be hard to start from scratch. Any supplier must compete for shelf-space, so United's own clothes would have to get shelf-space while Adidas and Nike (and whomever else sells stuff) gets less space. I think it would be difficult for United to convince retailers to take on much stock at the expense of existing suppliers that sell more than football kits.

 

[RoadTrip]

I kid you not, my mate's an Arsenal fan and he genuinely believes Arsenal have more matchday revenues than United.. Not even a wind up.. I stopped arguing with him about football..

Actually it's not that surprising. Ticket costs and general costs are significantly more than at Old Trafford. I imagine it would be quite close actually.

 

[RoadTrip]

I just can't believe by how much this eclipses all other kit deals. It's just ludicrous.

 

[Steve the Red]

Dear me, when I read the 750 million pound figure over 10 years...I was just surprised that Adidas would throw around money this easily to us. 75 million pounds per season...Surely, Adidas must have a fairly large share of the profits over the Club's sold merchandise, surely...

United's current deal with Nike gives a minimum of£23.5m per annum, plus 50 % of net profits (if any) from sales, which was another 15m in 2012/13.
Adidas will probably have something similar. Even if they get al the profits, £75 million a year is worth it.

 

[RoadTrip]

I've no idea what the maths is behind this sort of thing but how hard would it be for a big club to sort their own kits out by buying/contracting with some chinese sweatshop factory and then keeping all of the sales proceeds themselves?

The ring you're forgetting though is the sponsorship element. Adidas pay us a premium because they get their logo on our kit.

Additionally, don't the sportswear brands use special fabrics etc? I might be completely wrong but I imagine we couldn't just make shirts using cheap materials.

 

[RoadTrip]

United's current deal with Nike gives a minimum of£23.5m per annum, plus 50 % of net profits (if any) from sales, which was another 15m in 2012/13.
Adidas will probably have something similar. Even if they get al the profits, £75 million a year is worth it.

At 75m I would be very surprised if they didn't keep all the profits.

 

[Hed Zitin]

Staggering sum of money and it'll piss off the dippers even more. They love adidas and they have to watch us go around in quality clobber while they have to settle for the poor quality rubbish Warrior make.

I can finally get one of those red adidas originals hoodies I've liked for years.

 

[Feeky Magee]

Yeah, I would assume the "catch" relating to the much higher figure than any other club is that they're keeping a much higher percentage of the profits than in other deals.

 

[Nanook]

The ring you're forgetting though is the sponsorship element. Adidas pay us a premium because they get their logo on our kit.

Additionally, don't the sportswear brands use special fabrics etc? I might be completely wrong but I imagine we couldn't just make shirts using cheap materials.

The kits the players wear are different from what you buy in a shop, the material is much better and probably a lot more expensive.

 

[Judge Red]

Adidas has always been my favourite. It might get a little predictable with the stripes but I'm convinced we won't be seeing anything as shitty as this years away top from them.

Take your feckwit designers and get lost, Nike.

 

[77]

One of the main reasons we parted with adidas originally was that they only had about 15 branded products available to buy. Umbro had over 100 products in just over a year after we signed with them.
This deal covers a great deal of merchandise beyond the regular branded adidas kit.
There'll be an extensive adidas originals line coming out including track tops.
Football Club will be on the badge of all the retro products but no word on Football Club making it back on the official kit but you'd think this would be the time to do it.

 

[JinnerJamie]

At 75m I would be very surprised if they didn't keep all the profits.

They keep the profits on all stuff that the adidas logo shares with the United logo (Dual Branded), United keep all profits made from everything else the club sells ie mugs, keyrings, calendars, posters, towels, etc...

 

[Nanook]

Yeah, I would assume the "catch" relating to the much higher figure than any other club is that they're keeping a much higher percentage of the profits than in other deals.

When was the last time Barca or Madrid signed a kit deal? When they do their next one it will probably be up there with ours it terms of how much money they get per season.

 

[KM]

75m is the minimum guarantee. I'm guessing it'll increase on the basis of our sucesss and a share of profits.

Also the dual branding thing pretty much confirms that we've split up this deal. All the non first team clothing stuff will be given to some other brand.

 

[RoadTrip]

They keep the profits on all stuff that the adidas logo shares with the United logo (Dual Branded), United keep all profits made from everything else the club sells ie mugs, keyrings, calendars, posters, towels, etc...

Indeed - I wasn't disputing that. However with Nike, on top of the annual fee we got a cut of dual branded products. I imagine we will not under Adidas. Seems fair considering we picked up an extra 15m over the annual Nike fee, and even if you add that to the approx 25m base fee we were getting the 75 still massively eclipses that.