Thoughts on the potential Nike partnership....Personally, I would prefer LFC to enter into a flat rate/guaranteed yearly fee....eg... 75 million....because I view this money as a major component of the team's base revenue along with gate receipts, concessions, guaranteed PL TV fees. This base revenue is the team's financial foundation....aka....it's budgetary floor. That being said, I suspect LFC and Nike both understood that outside the box thinking is required to shake New Balance from the equation and that simply negotiating an enormous yearly flat fee would unlikely deter New Balance.....hence the unusual structure of the proposed deal. One would think the UK courts would recognize the substantial gap in distribution opportunities between Nike and New Balance and rule in favor of a Nike/LFC partnership.If and when Nike takes over......maybe just maybe....this contract might revert to a more traditional model....but we outsiders would likely never know.More thoughtsLFC is run by....American owners who are not blind to the realities of Nike's dominance in the US and the world and the mindset of consumers who have essentially submitted to the will of Nike. American owners with their hands in multiple sporting fields who understand the power and value of branding American owners who are partnered with the most successfully branded ($$$) athlete in the world...Lebron JamesAmerican owners who want to be partnered with the most successful branding operation in the world...NikeLikely.....In Fenway Group's mind, the time has come to make their substantial investment in Lebron James payoff. Remember, FG handed Lebron a minority stake in LFC and also funded Fenway Sports Management to solely promote Lebron James.Being in business with Lebron James is not good business, it is fantastic business and the man has the ability to alter consumers' discretionary spending habits....from head to toe.Case in point: Beats....highly stylized but average sound quality headphones that achieved must-have status simply because Lebron was handed a % of ownership in the new company to wear them in public.... and he took his job seriously. Footage of Lebron walking into NBA stadiums, practicing on court pre game, walking through airports, etc etc etc was a daily phenomenon....while always wearing Beats or displaying them around his neck like a piece of must-have jewelry. Bling chains replaced by $250 plastic headphones.Young consumers pay attention to Lebron and follow his lead. Having Lebron sport LFC gear will move the needle in a major way both in gear revenue and fan base growth. Eyeballs are always on the man...and the same goes for Serena and whoever else gets deployed from the Nike stable of stars. The formula is proven.It should be noted how big LFC and the PL are getting in the states. Since NBC and the PL partnered up in 2013, LFC deservedly gets featured and often with top billing every weekend. Most interesting in my mind is how PL games are getting early afternoon slots here, partially going head to head with the NFL in the fall.My point.....LFC wants to partner with Nike who dominates the biggest consumer markets (US and the world) while deploying the greatest branding athlete in sports (Lebron) at a time LFC is virtually guaranteed a US national audience, often in prime slots, 30+ times per year without including CL games. And this is just one market Nike will sway.Seems good...doesn't it?Partnership instead of a flat fee might just be the cash cow of cows
Strange one on the face of it to have a lower flat rate than last times deal with NB/Warrior.I'm guessing we know what we're doing though!
The 20% on all merchandise, not just jersey sales, based on NB figures would put LFC deal at circa 70 Million.Now imagine that with a company that doesn't continually run out of stock.
From what I've read, this is the colour the away top will be if Nike deal is done:
Did anyone see the RedBull away kit on Wednesday? Not impressed by any stretch of the imagination. All I'll say, if you guys £60 plus for these, you're mad as a box of frogs. Nikes money would be great, but they are not paying their designers enough.
So when's this deal with the world's biggest doping cabal going to happen?