Our system detected that your browser is blocking advertisements on our site. Please help support Fans Focus by disabling any kind of ad blocker while browsing this site. Thank you.
Jump to content

MyFC to vote on new Nike kit for next season...

Stu M

By Stu M
in Ebbsfleet United Forum

 Share

Recommended Posts

doheochai Newbie

doheochai

Posted
Posted
Originally Posted By: chris blanc
On the myfc forum, it's been said, by doheochai I believe that our current deal with Jako has us buying the tops at £20 and selling them for £38, which I believe would make that 95% profit? Is this right?

Hi chris - yes this is my understanding.

Originally Posted By: chris blanc
If that's the case, how can a deal giving us up to 35% be too good a deal?

The deal with Nike isn't perfect by any means - it is necessary to way up the situation -

Currently - the shop has to order items from Jako and pay upfront for the order. An order of 5,000 items would mean £100,000 upfront. Similar with smaller orders. Any unsold items incur a loss for the club. The club cannot afford to commit such resources to replica jerseys at this moment in time. Also Jako have been unable/unwilling to fulfill orders for the past three months thereby depriving the club of much needed income (I have been trying to order a jersey for some time now). There are no extras with Jako.

Nike deal - Nike will handle all online orders - we will not have to pay upfront for any items and Nike carry the can for unsold items. Nike have guaranteed availability of all items. As extras, the team will be supplied with team kit, training gear, boots etc. The club shop will be refurbished. The ladies and youth teams will receive one kit per team for every 250 items sold.

Nike state that if one third of MyFC members buy a jersey or equivalent item (about 9,000) then the club will receive in excess of £100,000.

Originally Posted By: chris blanc
Also, what happens to all the rest of the stuff in the club shop? Will the jackets still be sold or will there be new Nike jackets? How about the rest of the stuff? Will it all be replaces? What are the profit margins on all that stuff presently and who will profit from that in the future?

Nike will supply a full range of items. There does not appear to be any indication of a restriction on the club shop selling non-Nike items - but I don't know what the plan is for any remianing stock.

Originally Posted By: chris blanc
Who will then run this shop? Will it continue to be staffed as at present or will they bring in their own people?

The Fleet Trust, yes and no.

Originally Posted By: chris blanc
Sorry if this has been discussed and I missed it

No problem.
Link to comment
Share on other sites
chris blanc Newbie

chris blanc

Posted
Posted

Thanks for your answers there. You say that The deal isn't perfect but isn't a difference of 60% absolutely staggering? Do we have any idea of the deals that other clubs are getting? Is this deal really bad or was the deal we had before really good.

 

If this deal isn't the best why couldn't we wait until a better deal comes along?

Link to comment
Share on other sites
Santa Newbie

Santa

Posted
Posted
Originally Posted By: doheochai
Also Jako have been unable/unwilling to fulfill orders for the past three months thereby depriving the club of much needed income (I have been trying to order a jersey for some time now).


This is the bit I dont get.

Why wouldn't Jako want to or be able to do this ? If they had a potential order(s) of this magnitude I am sure they could modify existing practices to accommodate.

What discussions have taken place with them around this ? I got the impression a potential change of supplier came as a bit of a shock to them. The margin with Jako appears roughly 50% higher than the Nike proposal, £50,000 extra for the club on the 10,000 shirts example. With these sort of sums, I cannot believe that MyFC would not take the time to discuss the problems with Jako, to me that would seem crass....did they ? If there are insurmountable supply/cashflow problems why doesn't someone come out and say what they are.

Did they really say they couldn't fulfill these potential orders or if they could, that they would insist on 100% up-front ?


Link to comment
Share on other sites
doheochai Newbie

doheochai

Posted
Posted
Originally Posted By: chris blanc
Thanks for your answers there. You say that The deal isn't perfect but isn't a difference of 60% absolutely staggering?

My figures may or may not be accurate.

Originally Posted By: chris blanc
Do we have any idea of the deals that other clubs are getting? Is this deal really bad or was the deal we had before really good.

My understanding is that the deal is comparable with deals Nike has with other clubs with a similar potential market.

Originally Posted By: chris blanc
If this deal isn't the best why couldn't we wait until a better deal comes along?

Time was the problem. If we didn't conclude the deal now there would be no deal for the begining of next season and the potential loss of up to £100,000 to the club.

Originally Posted By: Santa
Why wouldn't Jako want to or be able to do this ? If they had a potential order(s) of this magnitude I am sure they could modify existing practices to accommodate.

Haven't a clue. All we know is that they have not supplied the shop for the last three months. One would have thought that they would have taken notice of a takeover of a club they supply, but it appears they haven't.

Originally Posted By: Santa
What discussions have taken place with them around this ? I got the impression a potential change of supplier came as a bit of a shock to them. The margin with Jako appears roughly 50% higher than the Nike proposal, £50,000 extra for the club on the 10,000 shirts example. With these sort of sums, I cannot believe that MyFC would not take the time to discuss the problems with Jako, to me that would seem crass....did they ? If there are insurmountable supply/cashflow problems why doesn't someone come out and say what they are.

Jako are a German multi-national kit manufacturer. All we know is that the shop has been attempting to purachase stock from Jako and it hasn't happened. If you had a supplier who couldn't deliver and didn't try and contact the customer to explain why - then you would be unlikely to trust them to do so in the future. Jako are not an innocent little party in all this. They are like Nike - just smaller.

Assuming it gets passed by the vote, the current deal is a three-year deal with an opt-out after one year. The Board of MyFC will be looking at any other potential offers for next year and if Jako want to make an offer it will be considered like any other.

Originally Posted By: David Holden

Quite possibly because without this deal, there won't be the funds available to cover the ongoing losses.

There are sufficient funds in MyFC to cover the current level of monthly deficit for the next year.
Link to comment
Share on other sites
Santa Newbie

Santa

Posted
Posted
Originally Posted By: doheochai
Jako are a German multi-national kit manufacturer. All we know is that the shop has been attempting to purachase stock from Jako and it hasn't happened. If you had a supplier who couldn't deliver and didn't try and contact the customer to explain why - then you would be unlikely to trust them to do so in the future. Jako are not an innocent little party in all this. They are like Nike - just smaller.

Assuming it gets passed by the vote, the current deal is a three-year deal with an opt-out after one year. The Board of MyFC will be looking at any other potential offers for next year and if Jako want to make an offer it will be considered like any other.


So I take that as a NO, even for the sake of a possible £50,000 extra for the club no one could be bothered to discuss the problems with Jako at a level at which the problems might be ironed out ?

MyFC assumed that the performance from Jako would be the same for a few hundred shirts a year as it would be for potentially 10,000.

And what of potential shirt orders from now until any Nike deal kicks in ie the next 6 months or so ?

Is this acting in the best interest of the club and its fans ?



Link to comment
Share on other sites
Uncle Urchin Newbie

Uncle Urchin

Posted
Posted
Originally Posted By: wanchai

There are sufficient funds in MyFC to cover the current level of monthly deficit for the next year.


we keep getting back to this one don't we....

firstly the rules prevent the accumulation of new debt...when it becomes apparent that new debt is unavoidable then the rules are changed to allow for members money to be used to prop it up...

when the members voted for the purchase of EUFCL were they told clearly that their money was being used to cover 400 grands worth of losses...200 grands worth of DD fees and a couple of hundred grand in consultancy fees and excessively high rent..?

perhaps MyFc should put an offer in for northern rock..that might take their fancy...!! devil
Link to comment
Share on other sites
.matty Newbie

.matty

Posted
Posted

doheochai what happens in 1 year if Nike pull out? Will myfc have something set up to ensure the club shop & web shop can still function?

 

Why wasn't there enough time to wait for another deal, it would take most companies who are looking for a deal like this 2 weeks to submit their proposal. They obviously can't now as the Nike deal is public knowledge & it would be unfair to Nike.

Link to comment
Share on other sites
Jeff Newbie

Jeff

Posted
Posted
Originally Posted By: .matty
doheochai what happens in 1 year if Nike pull out?


My thoughts exactly.

Short term, this is a top deal for them.
Guaranteed large purchases from internet hordes and a load of publicity to boot.

November is going to be an interesting month.
Link to comment
Share on other sites
doheochai Newbie

doheochai

Posted
Posted
Originally Posted By: .matty
doheochai what happens in 1 year if Nike pull out? Will myfc have something set up to ensure the club shop & web shop can still function?

Some members are already working on alternatives. I suspect that the Board will have a number of options for next year.

Originally Posted By: .matty
Why wasn't there enough time to wait for another deal, it would take most companies who are looking for a deal like this 2 weeks to submit their proposal. They obviously can't now as the Nike deal is public knowledge & it would be unfair to Nike.

Apparently kit manufacturers need a lead-in time of six months plus. Nike initial approached MyFC a number of weeks ago and Will Brooks then contacted three other companies about a possible deal. Two decided not to tender a proposal and the third said that they couldn't guarantee supply for next season because they needed a longer lead-in time.
Link to comment
Share on other sites
Charles Webster Newbie

Charles Webster

Posted
Posted

Hi Folks

 

Most of you are probably unaware that, in a previous life, I was Marketing Services Manager for Puma, handling their marketing, promotion, advertising and publicity.

 

It was quite common, at that time for Puma, and all other major sports kit/boot manufacturers, to give retailers a 100% margin, e.g. the shop would pay £20 for a shirt which they would then sell for £40. Consequently, the Jako deal - if they are/were able to ensure continuity of supply - would have been comensurate with such a structure. The Nike deal - for what they are offering to do - therefore looks somewhat skinny, especially as there seems to be a lot of expertise now available for the club/Trust, MFC members to retail kit online and through the club shop as well as other potential outlets.

 

It should also be borne in mind that, for the opportunity to sell the projected number of units being bandied about, manufacturers usually pay the club an advance payment of royalties from future sales. I.E. If the Fleet are expected to make £100,000 from sales over the next two years the manufacturer would pay them perhaps £75,000 up front to secure the contract. The advance payment also ensures that the manufacturer is incentivised to try and sell shirts themselves and one would have thought the proposed new kit(s)would have had quite a cache amongst the chattering classes everywhere and that Nike(or whoever) would benefit greatly from the "novelty" value of the kit. So far I have read of no reference to an advance being offered by Nike.

 

By the way, my choice of what's on offer would be home 3, away 2 and the white shirt as a third, or leisure shirt.Pip pip! Lord Chas

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
 Share
Go to topic listing

  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...