My bad. Feck it then. Chop change for the price of our soul.
So this new kit deal then
- Thread starter Melvyn
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http://edition.cnn.com/2014/01/22/sport/football/football-money-manchester-united-real/
Real - $702m
United - $574m
The new deals will definitely eat in to that gap but don't expect Real's revenues yo plateau - they have had very steady growth.
The CL exclusion will hit us next year but the year after we will be good (hopefully).
And shirt sales between us three are within a couple percent. Facebook likes would have to be a strong indicator of popularity of course. It is hardly suprising when you're policy is snap up the worlds top players at any price that you become the most admired teams
Great to see this finally announced and at the massive amounts that were rumoured.
Will be interesting to see what sort of kit we get when this new deal kicks in.
Will be interesting to see what sort of kit we get when this new deal kicks in.
What is the world press saying about our Adidas deal?
So that's $46m extra from Aon-Chevrolet and $80m from Nike-Adidas.
574 + 36 + 80 = $700m and also the new TV deals.
Almost Real level and maybe more including the TV money. Not to mention we're looking to acquire more marketable players that will further bring in more revenue.
A point I don't think has been made yet is what the Adidas deal means for future sponsors.
It's just been announced around the world what Adidas paid to get the deal with us. We are now a very premium brand to be associated with. So when we negotiate a deal with someone to become our official Suitcase and Travel Bag sponsor or official Eyewear sponsor (if we haven't got those sponsors already) we can negotiate a better deal for ourselves again because those companies know that customers will see the link with United and know that they are linked with a premium brand, that they must have paid a serious amount to earn that link and that they are therefore a very big and respected company themselves.
It's just been announced around the world what Adidas paid to get the deal with us. We are now a very premium brand to be associated with. So when we negotiate a deal with someone to become our official Suitcase and Travel Bag sponsor or official Eyewear sponsor (if we haven't got those sponsors already) we can negotiate a better deal for ourselves again because those companies know that customers will see the link with United and know that they are linked with a premium brand, that they must have paid a serious amount to earn that link and that they are therefore a very big and respected company themselves.
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Rumour I heard is that rather than selling naming rights to OT which would piss a lot of fans off, is to instead use land around the stadium long-purchased for long-term 'leisure park' facility and just sponsor the shit out of that.
quite the opposite actually.
teams like Utd, Bayern, Barca, Madrid etc have always been market leaders and fashion setters when it comes to the commercial side of things.
One of those 4 will get a big deal and other clubs in the top 20 or so worldwide tend to latch onto the back of that and get deals (obviously not as lucrative) of their own.
I should imagine with this £75m flat rate deal with Adidas that Real and Bayern will be knocking at the Adidas door very soon for renegotiating and likewise in the next couple of season for clubs like Chelsea and their level.
Every club will soon have training ground naming and sponsor rights, commercial ventures around stadiums, etc etc...and the marketing section of each club will be working to identify new ways of bringing in cash especially if FFP really does kick in properly
It isn't "flat rate" at all. If it was the wording in the statement wouldn't have referred to a "minimum" of £75m a year.
Bayern Munich only renewed theirs two years ago at a rate lower than what we were receiving from our deal signed 10 years before. You're living in cloud cuckoo land if you think suddenly they're going to pitch up and demand parity. Same from Madrid and Chelsea, both of whom have very recent renewal deals signed. Adidas deal with Bayern, Madrid expire in 2020 and with Chelsea in 2018. There will be no negotiation until then whatsoever.
Our kit deal 12 years ago wasn't a barometer for anything then and it won't be now. Like then it'll take clubs the best part of a decade to be even close to catching up.
Adidas aren't making a lot of profit from this deal. The fact that Nike pulled out shows just how exorbitant the price is. This is not so much financial benefits as it is brand exposure for Adidas. Thus, there will only be a select few clubs that they are willing to pay this kind of money for. I highly doubt that anyone other than Real Madrid will be able to negotiate the kind of deal we just signed as it's just not financially viable for Adidas to do so.
Oh I agree with you lad! You got the wrong end of the stick, I was talking more on our rivals thinking...United are in debt, downward spiral, no CL so no money etc. They were loving it weren't they.
Wrong....for example Chelsea's have renegotiation clauses in all their commercial contracts and have regularly done so over the years.
I wouldnt be surprised in a couple of years time they renegotiate for around 40m a year. But it doesnt really matter as far as that club is concerned because it is pointless comparing them to Utd or Real on a commercial scale
Real Madrid as the biggest club in the world ( allegedly ) will certainly be able to get any sponsor back round the table.
However at the end of the day, Manchester United is run as a for-profit enterprise, whereas Chelsea and certain other clubs are run as a for-trophies enterprise. This is a huge distinction, as Chelsea and Roman Abramovich have demonstrated that the club will spend as much as it's allowed in the pursuit of winning. Manchester United, on the other hand, is run like a normal business, where the ultimate goal is to make money.
So yes, your info is from before our three massive new deals, and therefore completely defunct. Again, any up to date source?
Care to show me where it says that global shirt sales are that close? Because the fact that our kit deals are more than double theirs would suggest otherwise, unless you think the people at Adidas and Chevy are just stupid?
As for Real's steady growth... yes of course. But steady growth is not going to keep them in touch with us when we just more than doubled deals that they only signed a couple of years ago - they can't renegotiate their £31m/year Adidas deal until 2020, for example. And in fact the latest La Liga TV deal barely managed to beat the price of the last one, a situation which experts have been predicting for a long time now. Whereas obviously the PL deal skyrocketed in value.
I know the caf loves to assume that we must be worse than the 'big European clubs' in every way, but there's simply no denying the facts on this one - we now blow every other club out of the water in terms of revenue.
And as I said before, Facebook likes are not an indicator of popularity, but of interest. The people who like a team's page on Facebook are not the fanbase. The people who watch that team every week and buy their jersey are the fanbase. Unless you consider anyone who likes our Facebook page a fan, then there's no arguing that point.
not on shirt deals..of course not. But anyone who does buy is a walking billboard and Adidas are hoping that stuff like tshirts, polos shirts, sporting equipment etc they manufacture will get sold on this basis
Real Madrid have been able to get any sponsor around any table they like yet it still took them near enough a decade to get close to the same amount we had signed for 10 years earlier. If what you say is true why did it take Madrid and Barcelona years to get parity and why we still get more from our old deal than all other clubs besides those two despite the fact all have had renewals very recently.
Why is suddenly this deal going to be any different? Likewise where are all the clubs desperately renegotiating based on our Chevrolet sponsorship? They're not. It doesn't work like that.
Why is suddenly this deal going to be any different? Likewise where are all the clubs desperately renegotiating based on our Chevrolet sponsorship? They're not. It doesn't work like that.
No, Plugsy's right, that's simply not how the kit manufacturer deals work. You sign for 10 years or so for a fixed yearly rate (sometimes with certain small upward negotiations or conditional rises available) and then you're stuck with it.
If you want proof of that, look at us. Until next year, we'll have been on £23.3 for thirteen years. We've just signed a new deal for £75m a year. If there was any feasible way to force a negotiation, don't you think we'd have done it years and years ago? Our value has obviously been much greater than £23.3/year for a while now. But you negotiate the price in the hope that you're covering your potential future value as much as possible, and then you're stuck with it for the duration.
Isn't Real and Barca's TV deal the main reason why they have such a high revenue? I could imagine that if La Liga would ever adopt a collective TV-deal like the PL or the Bundesliga the revenue of the two Spanish giants would look quite differently.
Yeah, the distribution of money in La Liga is hugely unfair to any club not named Real Madrid or Barcelona.
Yeah and as much as £75m seems like a good deal now in 8 years time at the fag-end of the deal it may look seriously undervalued. But I guess them's the risks. I was doubtful as to whether we would enter into such a long-term deal given how by the end undervalued the Nike deal was. This, plus the "minimum" word usage in the statement, plus the fact our deal with Chevrolet includes yearly increases and the fact our Nike deal did include % of profits from sales too, makes me think that the Adidas deal could be structured similarly.
Because world wide we have more fans and pockets than any other club. Real and Barca are of course HUGE clubs known for winning and spending big on superstars. Still neither club is as marketable as United.
It goes something like this commercially for size.
United>>Madrid/Barca>>>>>>>>Bayern>>AC Milan>>Arsenal>>Chelsea and then the margins get smaller with Chelsea hovering around with Juventus, Liverpool. The likes of Man City and PSG would be hovering a few paces behind those clubs still by a long way.
Of course it means nothing on the pitch but in terms of the size of the club there arent many clubs that have a strong support in almost every reach of the world.
Which makes it all the more baffling as to why we think we can lowball clubs when we stand to make hundreds of millions off the potential marketing and exposure our players get.
We're not really lowballing. £27m for Shaw, fully paid release clause on Herrera. But we'd be making a rod for our own back if we announce our riches and then embark on a 'name your price' spending spree.
No way SolidState. That order is really messed up. Milan is huge especially in South America and Asia (two massive football markets). Bayern isn't anywhere close to that.
Similarly Liverpool, Chelsea, Arsenal who definitely have more supporters than Bayern particularly because of Asia and the Premier League being ridiculously popular.. Maybe even Internazionale and Juventus (unsure). Bayern is towards the lower end of the Top 10 in terms of popularity. Their revenues are mainly down to a massive German market and their booming economy. If you look at their sponsors most of them are domestic - Allianz, T Mobile, Audi, Adidas, Lufthansa, Paulaner, MAN, Siemens...
Nah, deals like this always look undervalued by the end and overvalued at the start. That's just the way the model works out. There was nothing much wrong with our Nike deal (Real's, signed 10 years after it, was only £8m/year higher, after all). And there's definitely nothing wrong with the new Adidas deal. Probably by the end it will look a little underwhelming, but right now it looks absolutely staggering, and that's the way these deals balance out. You could restructure the money so we're getting £50m now and £100m by the end and you'd avoid that illusion but the amount of money we'd get would be the same.
So how come clubs have managed to renegotiate in the past already such ad Chelsea....better deal makers in marketing dept? I doubt it but it shows that it has been done and will be done again in the future by clubs
No we haven't. The actuals for 2004 and 2005 were £20.8m and £19m. We didn't step up to a base of £23.3m until 2007 and the base moved up to £25.4m in 2011. Additionally we have a profit sharing agreement which last year pushed us up to over £38m.
It will be regional rights, so we'll make even more money.
As far as I've hear Chelsea tend to make a different sort of deal to most big clubs. They negotiate lower fees in exchange for greater flexibility.
The profit sharing money is a different part of the deal - I'm talking about the straight sponsorship fee part of the deal. As you point out, there are generally small conditional performance-related bonuses or negotiations available. But you can't just decide to renegotiate the basic price, which is what TheMuffer suggested when he said this:
The deal might include incremental rises or performance bonuses, but however big the club is you can't force a renegotiation. You're stuck with the contract you signed.
Chelsea - 32M
Liverpool - 21M
AC Milan : 21M
Bayern - 17M
Yeah right, Chelsea have bigger global appeal than Bayern and Liverpool.
Edit :
Inter Milan : 3M
Spurs : 5M
Chelsea perhaps not, but the Premier League compared to the Bundesliga? Definitely, and Chelsea get the knock on of that with being one of the top teams.
Mate, just look at the difference between Chelsea and Bayern, that is in noway indicative of Global appeal. All I am saying is that Facebook likes should not be taken as an indicator for club stature.
United are one of the biggest clubs in the world, but no way we are bigger than Madrid/Barca. I would settle for third. Also as already pointed out Bayern is much lower on the scale.
The reason why we get so much more money for the shirt deal than Madrid/Barca is because we are more valuable as a commercial brand. Huge part of the supporters for Madrid/Barca come from South/Central America. The majority of the fans in those countries have never bought a genuine brand name shirt - those markets are ruled by fake merchandise. On the other hand we are hugely popular in North America/East Asia - that's where Adidas is making a killing. That's also the reason why Bayern will never get a deal close to ours or even the Madrid/Barca deals - the Bundesliga is just not popular enough outside of Germany.
As great as a deal as it undoubtedly is, unless the money if poured back into the club (and not just there to line Glazer's back pocket) then its ultimately meaningless for us as fans. Only time will tell...
Really hope Adidas will make something like
or
or
Must admit I'm not the biggest fan of Addias clothes, especially those damn stripes on everything, but for £75 million minimum a year I think I can deal with looking at it. Unlikely I would be buying one anyway.
They are both pretty awful. I'm sure they can do much better.Really hope Adidas will make something like
or
best laid plans and all that LOL
think you need to check again
http://www.deloitte.com/view/en_GB/.../5999f66f7d8b3410VgnVCM2000003356f70aRCRD.htm