OutByEaster? Posted February 8, 2007 Moderator Share Posted February 8, 2007 I hadn't considered the idea that Nike would make more money on a shirt sold in a Nike shop and Villa would make more money on a shirt sold in the Villa Park shop. Whichever way you look at it, it would appear that Nike can afford to be more generous than Hummel, as it seems safe to assume judging by the reaction on the board that they can have a great deal of confidence in selling an awful lot more "product" than their competitors. Link to comment Share on other sites More sharing options...
MWARLEY2 Posted February 9, 2007 Share Posted February 9, 2007 As the excellent piece by NV says, Nike don't deal with anyone and everyone. I think what we have to realise now is that our key executives are on a par with the key movers and shakers in world sport. Maybe Bob Kain did pull the Nike CEO's mobile number out of his extensive contact list. However this deal came about, it just proves that we will now be punching our weight. This board has been utterly convincing in every move they have made so far. Link to comment Share on other sites More sharing options...
NurembergVillan Posted February 9, 2007 Moderator Share Posted February 9, 2007 NV, how do deals like this work ? I presume there's a payment up front or an annual payment, and then payments based on performance ? TV appearances ? That's right OBE, yes. How do shirt/leisure sales figures affect the clubs deal ? Does the club get a percentage on each shirt sold, or are there bonus's for target levels ? Is the industry standard deal based on payments or sales results ? It's split. Obviously there are performance and exposure related incentives, but for sales there would normally be royalties involved - usually 10% on the cost price - so if Nike sold a product in JJB that had cost £10 to make (and it had a Villa badge on), then Villa would get £1. In the simplest terms, I'm wondering if I spend £50 on a shirt, how much of it can I expect to go into the club ? Depends where you buy it from, and also the %age royalty might be higher on shirts than other products. As above, if a shirt costs £10 to make (for simplicity of the sum!) and you buy it from JJB, then Villa will get a quid. If you buy it from the club shop then Villa get a quid, plus the retail mark up i.e. a retailer might buy it for £20 from Nike and sell it for £40, meaning you buy it from the club and Villa get £21 rather than JJB getting £20 and Villa £1. Put simply, if you want more money going into the club, buy your products directly from them. It makes a MASSIVE difference. Obviously there are other complexities in an agreement like this such as exclusivity on products, varying royalty percentages etc but this is a basic model based around the shirt only. Link to comment Share on other sites More sharing options...
OutByEaster? Posted February 9, 2007 Moderator Share Posted February 9, 2007 Thanks NV. I didn't realise that buying direct or through another retailer made such a huge difference (although I guess it should be fairly obvious.) S'interesting stuff ! Link to comment Share on other sites More sharing options...
avsteve Posted March 11, 2007 Share Posted March 11, 2007 I will buy mine from club shop in future. I don't mind paying slightly more from Villa than say Sports Soccer because I know I am not just lining Doug's pockets now. The money we all put in to the club will be used for the club IMO. Link to comment Share on other sites More sharing options...
kurtsimonw Posted July 2, 2007 Share Posted July 2, 2007 Thanks alot for the NV, great read. Link to comment Share on other sites More sharing options...
NurembergVillan Posted July 2, 2007 Moderator Share Posted July 2, 2007 No problem! Link to comment Share on other sites More sharing options...
OutByEaster? Posted July 2, 2007 Moderator Share Posted July 2, 2007 NV, I've been to Villa Park today, and as yet there is no Nike merchandise of any kind in the club shop. Would it be standard for the Team Shirt to lead the way in terms of merchandise, or would the fact that Nike have nothing else in the store yet suggest that we're still tied into a commercial agreement with Hummel and that this is what's controlling the release date for the kit ? (Hope that makes sense.) Link to comment Share on other sites More sharing options...
NurembergVillan Posted July 2, 2007 Moderator Share Posted July 2, 2007 That's a tough one to call. It depends on the end date of the Hummel agreement, although I'd imagine that was "the end of the season". In terms of other merchandise I'd say that it will probably all land at the same time as the production timelines will be the same for all of the products. You can probably expect the product offering to keep growing right the way up to Christmas, though, as priority will have been given to some things with other stuff to follow later. Link to comment Share on other sites More sharing options...
OutByEaster? Posted July 2, 2007 Moderator Share Posted July 2, 2007 Thanks NV, I was thinking that some of the more generic items that Nike makes might have already landed in the shop. Thought Hummel might have put the stoppers on. I seem to remember someone explaining that Villa will have to sell all of the Hummel merchandise and shirts to avoid making a big loss on them ourselves, perhaps we're just trying to push the last of it out before the mad rush for the swoosh ! Link to comment Share on other sites More sharing options...
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