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      Nike confirmed as LFC kit supplier from 2020-21. (Updated 07/01/20)

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      bigvYNWA
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      Re: Nike linked with new LFC Kit deal
      Reply #69: Sep 28, 2019 02:11:43 am
      Full article:

      Nike kit deal would guarantee Liverpool only £30m per year

      exclusive
      Paul Joyce, Northern Football Correspondent
      September 27 2019, 5:00pm, The Times

      New Balance has started legal proceedings against Liverpool for what it believes is a breach of a matching clause agreement

      Liverpool’s proposed new kit deal with Nike is only worth a guaranteed £30 million per year, according to High Court papers seen by The Times.

      On top of that agreement, there is a commitment from the American sportswear manufacturers to pay the club a 20 per cent royalty on net sales of Liverpool Football Club products and promote the club through stars like tennis player Serena Williams and musician Drake.

      The base figure is surprising and less than the present £45 million-a-year deal with New Balance, which has commenced legal proceedings against the Anfield club claiming it can match Nike’s terms.

      It is also below the £50 million-plus-a-year deals negotiated by Premier League rivals Chelsea and Tottenham Hotspur with Nike, and also the £71 million-a-year agreement Nike struck with Paris Saint-Germain in the summer.

      However, Liverpool believe Nike can “deliver far greater total revenue for the club than has been generated by the present deal with New Balance, because of the royalties that will be generated by Nike’s extensive distribution network.”

      The Anfield hierarchy is essentially backing the success manager Jürgen Klopp is driving on the pitch in transforming the club into Champions League winners, and Premier League leaders, to continue. Shirt sales increase with on-field success.

      The battle to manufacture Liverpool’s kit from 2020-21 is to be settled by a High Court judge next month after New Balance said it can replicate the “material, measurable and matchable terms of the Nike” deal.

      It alleges Liverpool are in breach of a matching clause agreement allowing it to extend its contract to manufacture the kit.

      Nike would use global superstars like Williams to help market Liverpool’s kitNike would use global superstars like Williams to help market Liverpool’s kit

      Papers served to the commercial court of the High Court reveal the £30 million figure and also that Nike would plan to market Liverpool through initiatives which feature not less than three “non-football global superstar athletes and influencers of the calibre of” Williams, Drake and LeBron James.

      James, who plays basketball for the Los Angeles Lakers, is a minor shareholder in Liverpool.

      The court papers outline that Liverpool’s desire to ditch New Balance and switch to Nike is linked to distribution of the new kit.

      Liverpool entered into exclusive negotiations with New Balance in 2018 with regard to an extension of the existing contract, which focused on New Balance’s ability to “improve its global distribution network.”

      The club commissioned an independent review into New Balance by Deloitte which concluded Nike could “super charge distribution in a way challenger brands [like New Balance] are not able to do.”

      Nike has said it will distribute a new kit through “6,000 global doors” with New Balance having not exceeded “3,000 global doors.”

      However, New Balance insists it can match the same deal as Nike and believe it has proved it can meet demand when the club is thriving on the pitch, having delivered two of the biggest selling home kits for Liverpool fans.

      In a statement at the start of the week, a spokesman for New Balance added it would “continue to match the ambition and achievements of the club as it grows from strength to strength.”

      A three-day trial has been listed from October 18.

      From The Times


      Would be quite annoyed if we're selling out for a ludicrous base figure like this. We should be worth more PLUS then get all the advertising and marketing. Find it hard to believe to be honest.
      racerx34
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      Re: Nike linked with new LFC Kit deal
      Reply #70: Sep 28, 2019 11:57:02 am
      Would be quite annoyed if we're selling out for a ludicrous base figure like this. We should be worth more PLUS then get all the advertising and marketing. Find it hard to believe to be honest.

      From what I've seen the comparitive value based on NB sales would be at least 70 million.
      Given NB can't keep up with demand and that sales would kick on under Nike I'd be surprised if it's not closer to 80 million.
      FL Red
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      Re: Nike linked with new LFC Kit deal
      Reply #71: Sep 29, 2019 12:11:13 am

      I think my trousers just moved....
      Boston not la
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      Re: Nike linked with new LFC Kit deal
      Reply #72: Sep 30, 2019 07:36:41 pm
      Not really happy with the using celebs to sell shirts type sh*te.Supporting Liverpool is already diluted as F**k over here.having more clueless types walking around in lfc shirts nah F**k that.
      racerx34
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      Re: Nike linked with new LFC Kit deal
      Reply #73: Oct 01, 2019 10:40:02 am
      https://twitter.com/scoutedfc/status/1177348396589486082?s=20

      Mockups but also match the colour templates that Footy Headlines have named, and they normally get that right.

      https://www.footyheadlines.com/2019/09/nike-liverpool-20-21-home-away-third-kits.html
      « Last Edit: Oct 01, 2019 10:48:06 am by racerx34 »
      Borg
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      Re: Nike linked with new LFC Kit deal
      Reply #74: Oct 01, 2019 01:47:23 pm
      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 thoughts

      LFC 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 James
      American owners who want to be partnered with the most successful branding operation in the world...Nike

      Likely.....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
      « Last Edit: Oct 01, 2019 01:57:07 pm by Borg »
      HUYTON RED
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      Re: Nike linked with new LFC Kit deal
      Reply #75: Oct 01, 2019 06:22:04 pm
      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 thoughts

      LFC 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 James
      American owners who want to be partnered with the most successful branding operation in the world...Nike

      Likely.....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


      Just get them to pay half of M'bappe's wages and we're laughing.
      fields of anny rd
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      Re: Nike linked with new LFC Kit deal
      Reply #76: Oct 01, 2019 06:29:33 pm
      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!
      karlp606
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      Re: Nike linked with new LFC Kit deal
      Reply #77: Oct 02, 2019 09:14:11 am
      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!

      All part of the Fenway group strategy, increasing the value of the LFC brand 👍🏻
      racerx34
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      Re: Nike linked with new LFC Kit deal
      Reply #78: Oct 02, 2019 10:20:42 am
      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.
      FL Red
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      Re: Nike linked with new LFC Kit deal
      Reply #79: Oct 02, 2019 01:11:57 pm
      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.

      And with a company that has the brand and celebrity marketing power of Nike as well.
      racerx34
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      Re: Nike linked with new LFC Kit deal
      Reply #80: Oct 03, 2019 11:15:45 am
      From what I've read, this is the colour the away top will be if Nike deal is done:

      mcarz
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      Re: Nike linked with new LFC Kit deal
      Reply #81: Oct 04, 2019 12:33:47 pm
      From what I've read, this is the colour the away top will be if Nike deal is done:



      There are rumours that the home kit will be this colour too...

      RedPuppy
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      Re: Nike linked with new LFC Kit deal
      Reply #82: Oct 04, 2019 04:23:28 pm
      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.

      Frankly, Mr Shankly
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      Re: Nike linked with new LFC Kit deal
      Reply #83: Oct 13, 2019 04:37:34 pm
      So when's this deal with the world's biggest doping cabal going to happen?
      FL Red
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      Re: Nike linked with new LFC Kit deal
      Reply #84: Oct 13, 2019 07:08:35 pm
      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.



      You know the club has final input on their design? So blame it on RedBull that they were ok with it. Nike has plenty of good looking kits so they are perfectly capable.
      « Last Edit: Oct 13, 2019 10:26:28 pm by FL Red »
      HUYTON RED
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      Re: Nike linked with new LFC Kit deal
      Reply #85: Oct 13, 2019 08:28:36 pm
      So when's this deal with the world's biggest doping cabal going to happen?

      Listen to any conspiracy-theorist nutjob Evertonian and they may tell you that's us!!
      Dadorious
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      Re: Nike linked with new LFC Kit deal
      Reply #86: Oct 13, 2019 08:35:15 pm
      So when's this deal with the world's biggest doping cabal going to happen?

      Goes to court on the 18th so it’s imminent.
      racerx34
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      Re: Nike linked with new LFC Kit deal
      Reply #87: Oct 21, 2019 03:37:52 pm
      Final deliveries tomorrow.
      Not sure how NB can claim to have matched Nike contract given their distribution numbers have been thorn apart.

      https://www.liverpoolecho.co.uk/sport/football/football-news/liverpool-kit-deal-trial-live-17102743
      FL Red
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      Re: Nike linked with new LFC Kit deal
      Reply #88: Oct 21, 2019 03:44:09 pm
      Final deliveries tomorrow.
      Not sure how NB can claim to have matched Nike contract given their distribution numbers have been thorn apart.

      https://www.liverpoolecho.co.uk/sport/football/football-news/liverpool-kit-deal-trial-live-17102743

      From what I've read, it's over for NB....Liverpool and Nike want each other, Nike has already spent a ton of money on design and manufacturing of our new kits for next season and while it looks like a very modest deal up front, the numbers I was reading showed that we'll likely far surpass dollars with Nike's distribution and plans for other merchandise to be sold. It will likely net us a huge amount  (as long as we continue winning).
      racerx34
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      Re: Nike linked with new LFC Kit deal
      Reply #89: Oct 21, 2019 04:24:51 pm
      From what I've read, it's over for NB....Liverpool and Nike want each other, Nike has already spent a ton of money on design and manufacturing of our new kits for next season and while it looks like a very modest deal up front, the numbers I was reading showed that we'll likely far surpass dollars with Nike's distribution and plans for other merchandise to be sold. It will likely net us a huge amount  (as long as we continue winning).

      The anomolies on the numbers produced seems damning.
      NB can't afford to lose Liverpool though.
      Their marquee Football brand, but they aren't keeping up with demand.
      Dadorious
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      Re: Nike linked with new LFC Kit deal
      Reply #90: Oct 22, 2019 11:51:22 am
      Yep involved in a fair few of these commercial arbitrations through work and NB look to be doomed here.
      HUYTON RED
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      Re: Nike linked with new LFC Kit deal
      Reply #91: Oct 22, 2019 02:19:15 pm
      The anomolies on the numbers produced seems damning.
      NB can't afford to lose Liverpool though.
      Their marquee Football brand, but they aren't keeping up with demand.

      And that will be the main reason why we want to swap from NB to Nike.

      The fact the team had to use a league kit with the arm "WU" sponsors bit covered by the Champions League badge for the final against Spurs speaks volumes.

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