Increasing Club Revenue

[Peter Griffin]

On 18/08/2021 at 13:56, sidcow said:

The use of Villa Park for concerts is interesting. It's not been used for that purpose for decades.  Have they managed to sweet talk the council and will we now see more of this in the future? 

Could be a nice little earner.  These kind of things have gone to Coventry in recent years. 

But as a club we don't own Villa Park, we only rent it from the owners. The rent has to reflect a fair market rate. If we are permitted to use it for other purposes than football which generate more revenue I would suspect that may need to be reflected in the rent. We have to be very careful with this as the FA clearly do not like club owners selling the stadium to themselves to avoid FFP issues as they have closed this loophole. We would need to be squeaky clean with revenue generation from the stadium. It would be nice if we got ourselves in a position to buy VP back

[Peter Griffin]

31 minutes ago, DevonIsAPlaceOnEarth said:

 for Nassef not pushing for a nice Adidas deal for us

That's not going to happen. Adidas is not going to give a preferential deal to a company owned by a 6% shareholder. The other 94% may not be too impressed and it would not be ethical. NS would not tarnish his integrity trying to achieve a sweetheart deal for Villa

[DevonIsAPlaceOnEarth]

1 minute ago, Peter Griffin said:

That's not going to happen. Adidas is not going to give a preferential deal to a company owned by a 6% shareholder. The other 94% may not be too impressed and it would not be ethical. NS would not tarnish his integrity trying to achieve a sweetheart deal for Villa

I don’t think it’ll be a sweetheart deal or overvalued at all. As a shareholder he would look at synergies and mutually beneficial arrangements, Adidas taking control of our distribution channels benefits them too.

[Peter Griffin]

1 minute ago, DevonIsAPlaceOnEarth said:

I don’t think it’ll be a sweetheart deal or overvalued at all. As a shareholder he would look at synergies and mutually beneficial arrangements, Adidas taking control of our distribution channels benefits them too.

I am sure he would make an introduction to the relevant people at Adidas but I would be absolutely shocked if he didn't completely remove himself from all negotiations, from both a Villa and an Adidas perspective. He would leave it to Purslow to Nicola Ibbetson to agree any deal with Adidas and only if a mutually beneficial deal could be agreed

[DevonIsAPlaceOnEarth]

5 minutes ago, Peter Griffin said:

I am sure he would make an introduction to the relevant people at Adidas but I would be absolutely shocked if he didn't completely remove himself from all negotiations, from both a Villa and an Adidas perspective. He would leave it to Purslow to Nicola Ibbetson to agree any deal with Adidas and only if a mutually beneficial deal could be agreed

100% and that is the way it should be. It certainly will be interesting to see the nature of our sponsorships now we are established again.

[Peter Griffin]

Just now, DevonIsAPlaceOnEarth said:

100% and that is the way it should be. It certainly will be interesting to see the nature of our sponsorships now we are established again.

It is a very interesting time for us with shirt sponsorship. Yes we are in a better position for negotiation a better deal next summer but, and assuming the club is confident in its strategy of getting into Europe and pushing up the league, we will probably only be looking for a short term shirt sponsor deal. Our value isn't there yet and it is we won't get too much financial commitment based on potential. So if we sign a medium to long term deal we could be underselling ourselves. I expect we may sign a 2 or 3 year deal with the hope that following that we will be in Europe and in a much better negotiating position. We will no doubt build in some clauses to increase the sponsorship based on Euro qualification etc but we would get a much better deal if we already have Europe

[OutByEaster?]

Another partnership added today in the form of Parimatch.

They've added two other clubs today and are now official partners with us, Chelsea, Everton, Leicester and Southampton.

Hopefully it's a few more quid in the piggybank.

[The Fun Factory]

On 07/09/2021 at 17:01, OutByEaster? said:

Yep, but where we're different to most clubs is that we don't own our in house retail operation - our club shop is essential a Fanatics store with a Villa badge on it - it was interesting that Nicola Ibbetson said at a recent meeting that the club had under-ordered on shirts which is why there had been limited stock - I'd have thought that Fanatics were in control of that, although the details of how this arrangement works have always been particularly murky.

I'm guessing that Fanatics pay Villa a fee for ownership of the brand and then become the retailer (the JD sports) with Villa no longer having a direct outlet. It used to be that when you brought kit from the club shop a much higher percentage of that money went directly to the club, so even though the prices might have been more expensive, at least you knew that the money was going to Villa. That's not true in our current arrangement.

Incidentally, that's also why stuff like the reward points and season ticket ownership can't be linked to discounts on shirts and training kits - Fanatics aren't going to give anything away to customers of another company, even if they're really good customers - they'd be charging any discount back to the club.

If the Fanatics deal does work on a fee basis then it's likely that the fee is pretty low given when the deal was established and the state of the club at the time and if it's purely fee based then I'd guess that the club has made absolutely no increased revenue on increased kit sales during our renaissance of the last three years - it was a deal to bring in 'today' money for a club that was wobbling under Tony Xia, not a deal to protect the future revenues of a thriving colossus.

Personally I suspect it's a horrible deal for the club, I'm sure it's a horrible deal for the supporters and I sense it's a pretty good deal for Fanatics. I look forward to it ending and I hope we'll see an increase in revenues as a result.

 

 

Wasn't contracting this out one of Keith Wyness's ideas?

Edited September 13, 2021 by The Fun Factory

[AvfcRigo82]

On 07/09/2021 at 18:05, Peter Griffin said:

That's not going to happen. Adidas is not going to give a preferential deal to a company owned by a 6% shareholder. The other 94% may not be too impressed and it would not be ethical. NS would not tarnish his integrity trying to achieve a sweetheart deal for Villa

I don't see why so many want Adidas as our kit supplier anyway.

Their kits and templates are mostly crap.

[Dale]

25 minutes ago, The Fun Factory said:

Wasn't contracting this out one of Keith Wyness's ideas?

Yes, I think it was prior to the club being in a horrible mess. It's the same thing that Everton had done under him which turned their in house merchandise from loss making to profitable. I'd suggest one of the ways that they become profitable is as they don't have to do too much in terms of discounting due to the dire stock position.

I don't know how long the deal is but I suppose a big part of next, at the very least, will be disaggregating the retail from the kit manufacture (as I think that Fanatics also manage manufacture of the kit, and probably take more of a cut from Kappa that the club should have)

[The Fun Factory]

In the grand scheme of things it wouldn't contribute a whole lot, but I still miss the club shop in the city centre. It was a great location right in the centre and was useful to buy or pick up tickets there rather than going all the way out to Villa Park.

Edited September 13, 2021 by The Fun Factory

[Dale]

4 minutes ago, Dale said:

Yes, I think it was prior to the club being in a horrible mess. It's the same thing that Everton had done under him which turned their in house merchandise from loss making to profitable. I'd suggest one of the ways that they become profitable is as they don't have to do too much in terms of discounting due to the dire stock position.

I don't know how long the deal is but I suppose a big part of next, at the very least, will be disaggregating the retail from the kit manufacture (as I think that Fanatics also manage manufacture of the kit, and probably take more of a cut from Kappa that the club should have)

Just read a bit more, Villa are paid a set fee by Fanatics, this has been static, but demand for kits has more than doubled since the deal was signed. We're getting taken to the cleaners, there was mention that the deal ends this year. No idea if that's Kappa or Kappa/Fanatics - if the latter, it's a huge opportunity (our kit is top 15 in Europe by sales now).

[The Fun Factory]

12 minutes ago, Dale said:

Just read a bit more, Villa are paid a set fee by Fanatics, this has been static, but demand for kits has more than doubled since the deal was signed. We're getting taken to the cleaners, there was mention that the deal ends this year. No idea if that's Kappa or Kappa/Fanatics - if the latter, it's a huge opportunity (our kit is top 15 in Europe by sales now).

Wow really? Top 15 is a brilliant stat. That will put as ahead of numerous fairly big hitters in Europe.

[Follyfoot]

1 hour ago, Dale said:

Just read a bit more, Villa are paid a set fee by Fanatics, this has been static, but demand for kits has more than doubled since the deal was signed. We're getting taken to the cleaners, there was mention that the deal ends this year. No idea if that's Kappa or Kappa/Fanatics - if the latter, it's a huge opportunity (our kit is top 15 in Europe by sales now).

Have you got the source as would like a look at this 

[Dale]

55 minutes ago, Follyfoot said:

Have you got the source as would like a look at this 

It's a Purslow quote. 

http://www.avillafan.com/33794/aston-villas-kappa-deal-and-fanatics-coronavirus-efforts/

[TrentVilla]

So its £50 a ticket for Wolves… I did say they would be looking to increase ticket revenue from the existing capacity before they would expand.

I was almost universally told I was wrong, well looks like its starting.

[mattyvilla]

17 minutes ago, TrentVilla said:

So its £50 a ticket for Wolves… I did say they would be looking to increase ticket revenue from the existing capacity before they would expand.

I was almost universally told I was wrong, well looks like its starting.

Probably classing it as a premium fixture , don't know if this has happened over recent seasons but always used to

[blandy]

41 minutes ago, TrentVilla said:

So its £50 a ticket for Wolves… I did say they would be looking to increase ticket revenue from the existing capacity before they would expand.

I was almost universally told I was wrong, well looks like its starting.

Were you? Cripes.

My perception is that most people expect them to rise a bit - I mean the kind of early renewal discount went this year, and if some Wolves tickets are 50 quid. - is that the most expensive ones? then that's a bit of a shame. I guess they reckon the people in the posh seats can and will afford it. I guess also it'll test how firm the demand is - we know it's high, but don't know how price sensitive it is.

I bit of a creep up of prices can be swallowed, but I think that with stuff like household bills going up and cuts to working credit and such like they need to recognise that some people are struggling already - don't kill the demand and the next generation of supporters.

[TrentVilla]

4 minutes ago, blandy said:

Were you? Cripes.

My perception is that most people expect them to rise a bit - I mean the kind of early renewal discount went this year, and if some Wolves tickets are 50 quid. - is that the most expensive ones? then that's a bit of a shame. I guess they reckon the people in the posh seats can and will afford it. I guess also it'll test how firm the demand is - we know it's high, but don't know how price sensitive it is.

I bit of a creep up of prices can be swallowed, but I think that with stuff like household bills going up and cuts to working credit and such like they need to recognise that some people are struggling already - don't kill the demand and the next generation of supporters.

Yes and my perception is that most don’t or didn’t expect them to raise and that there is an unrealistic expectation amongst fans that the owners will continue to spend, the team improve, demand increase but that cost doesn’t.

The ticket price of £50 isn’t the most expensive I believe those are £55 in the DE, I’m not sure they are the “posh seats”.

 

[OutByEaster?]

4 minutes ago, TrentVilla said:

Yes and my perception is that most don’t or didn’t expect them to raise and that there is an unrealistic expectation amongst fans that the owners will continue to spend, the team improve, demand increase but that cost doesn’t.

The ticket price of £50 isn’t the most expensive I believe those are £55 in the DE, I’m not sure they are the “posh seats”.

I thought most people were expecting some sort of rise this year?

The £55 is the middle of the Upper Ellis on the halfway line, the middle of the Trinity around the half way line and the middle of the Upper Trinity on the half way line. It's interesting that the club sees those as the prime seats when it's those nearer the pitch that always sell out first.

Anyways, none of this is commercial revenue, so I guess we're in the wrong thread!