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

[Santa]

Originally Posted By: Charles Webster

So far I have read of no reference to an advance being offered by Nike.

Because I believe this is not the deal on offer by Nike, there are no up front payments for stock to be made so no need for advances to offset, I presume.

[Uncle Urchin]

Originally Posted By: Charles Webster

So far I have read of no reference to an advance being offered by Nike.

well it will be going somewhere thats for sure...

Originally Posted By: santa

Because I believe this is not the deal on offer by Nike, there are no up front payments for stock to be made so no need for advances to offset, I presume.

what..?

[Charles Webster]

Stock would not be required to be manufactured by Nike, or anybody else, until sales demand it is supplied. Any advance of "royalty" payments is made as a gesture of "good faith" to secure the contract. Nike, or any other supplier would be able to predict stock requirements with great precision.

 

The way you need to look at this potential deal is that EUFC is the intellectual property owner, the rights holder or the licensor. Nike, for sake of argument, or any other "supplier" would be the licensee and would, in effect, be taking out a license to manufacture, sell and distribute the EUFC replica kit and other merchandise, under license, for which they would pay the licensor a royalty which would be payable based on a percentage of sales. Nike, or any other supplier, will have looked at the potential of supplying kit to a worldwide fan base

headed to 30,0000 and upwards, and will calculate what that is worth to them. They will know, from comparable licenses for clubs with comparably sized fan bases - Forest? Southampton?(a crude estimate, I know) how many they will sell, in what sizes, and at what points over the term of the agreement bearing in mind product life cycle and when kits are likely to be changed.

 

Kit manufacturers enter bidding wars to secure the rights to clubs with extensive fan bases and consequently, large potential sales. Personally, if I was involved in this project, I would put it out to tender to Nike, Adidas, Canterbury, Kappa, Puma, Rawlings,Jako, Le Coq et al and give them all two weeks to bid. The best offer wins.

 

[Claudius]

Well,there have to be votes on top of that time frame added I´m afraid.

That to me seems to be one of the problems here.There doesn´t seem to be enough time.

This whole kit thing would of course not had to be an issue at this unappropriate timing if Jako just had managed to live up to ne expectations level.

[kaizen]

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?
If that's the case, how can a deal giving us up to 35% be too good a deal?

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?

Who will then run this shop? Will it continue to be staffed as at present or will they bring in their own people?

Sorry if this has been discussed and I missed it

Em, by my reckoning if the selling price is £38 and the profit figure is 95% of that, it means they're only paying £1.90 per shirt.... think you'll find it's roughly 47% profit.

[doheochai]

Originally Posted By: Charles Webster

Nike, or any other supplier, will have looked at the potential of supplying kit to a worldwide fan base
headed to 30,0000 and upwards, and will calculate what that is worth to them. They will know, from comparable licenses for clubs with comparably sized fan bases - Forest? Southampton?(a crude estimate, I know) how many they will sell, in what sizes, and at what points over the term of the agreement bearing in mind product life cycle and when kits are likely to be changed.

I think the problem could be that Nike and others look at the 30,000 potential market and then take the attitude that this is not like a normal club. MyFC has 30,000 members, a lot of whom buy merchandise from other clubs. The question then posed is - would they also buy EUFC merchandise? And this is the problem - the potential is 30,000 - how can a supplier maximise the potential? After one year we will ahve solid figures to work from.

[Durhamgill]

Overall I think the Nike deal is pretty good and reduces risk and capital layout by the club. The demand for shirts is unknown as its never been done before. Nike have in the last few years done alot to clean up the image and ethics of the company.

 

Overall its a deal many clubs in the higher divsions would be pleased to have.

 

And yes Im a Gills supporter as well as the Fleet and yes i am in MYFC but have seen the Fleet over many years and used to work in Gravesend at AEI

 

PS I didnt vote the the ex Gills away kit.

[chris blanc]

Originally Posted By: fleetzone

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?
If that's the case, how can a deal giving us up to 35% be too good a deal?

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?

Who will then run this shop? Will it continue to be staffed as at present or will they bring in their own people?

Sorry if this has been discussed and I missed it

Em, by my reckoning if the selling price is £38 and the profit figure is 95% of that, it means they're only paying £1.90 per shirt.... think you'll find it's roughly 47% profit.

dunno, if something cost £20 and you sell it for £38 you have made £18, which is 95% of the original cost or isn't that how it works?

Another question could be how much do the Nike tops cost to manufacture if they're going for £40?

Whatever it is (And I'm not saying that you're wrong, more that my understanding of how this all works may be) it looks like the first real bit of management that myfc get to decide on is a pi$$ poor one.

[Hannah]

Agh! Memories of GCSE maths!

[American FLEET FAN No1]

Originally Posted By: Claudius

Well,there have to be votes on top of that time frame added I´m afraid.
That to me seems to be one of the problems here.There doesn´t seem to be enough time.
This whole kit thing would of course not had to be an issue at this unappropriate timing if Jako just had managed to live up to ne expectations level.

Were Jako(or any other manufacturer) approached, or is this another of those one option choices, like taking over Ebbsfleet?

[Jeff]

Nike or nothing AFF.

[American FLEET FAN No1]

Seems to be the norm, you have a vote, but only one choice!

Hmmm.................Someone with a vested interest..........I wonder?

[doheochai]

Originally Posted By: Jeff

Nike or nothing AFF.

Actually Jeff - three other kit suppliers were approached. Two chose not to offer a proposal and the third indicated they would be unable to supply the kit for next season as they needed more lead-in time.

[American FLEET FAN No1]

Originally Posted By: doheochai

Originally Posted By: Jeff

Nike or nothing AFF.

Actually Jeff - three other kit suppliers were approached. Two chose not to offer a proposal and the third indicated they would be unable to supply the kit for next season as they needed more lead-in time.

OI, BIG NOSE! Jesus said the MEEK will inherit the earth, not the GEEKS.
That leaves you out!

[Jeff]

Originally Posted By: doheochai

Originally Posted By: Jeff

Nike or nothing AFF.

Actually Jeff - three other kit suppliers were approached. Two chose not to offer a proposal and the third indicated they would be unable to supply the kit for next season as they needed more lead-in time.

Yeah I know that. I read the article as well.
However, we don't know who they were and the only option given on the vote was do we go with Nike or do we not?

Therefore, Nike or nothing.

Not too difficult to understand is it?

Lord Chas's idea earlier about putting the whole thing out to tender would have been the most sensible way to go about this.

[American FLEET FAN No1]

But that way, they might not have got the "right" answer!

[Jeff]

Postings by my good self about this earlier on the MyFC forum:

 

Question from someone else: 'Where was the vote for MYFC members to decide if they wanted a new kit in the first place?'

 

My reply: 'There wasn't one as far as I can see.

 

It seems that major decisions are made for the members and then the members rubber stamp them, giving them the feeling that they are doing something proactive.'

 

and then:

 

'Look at the votes that have been taken so far. They have not been choices have they?

 

Shall MyFC get involved with Ebbsfleet? Yes/No

 

Shall we have Nike as a kit manufacturer? Yes/No

 

We vote yes or no but that is about it.

 

Where are the alternatives? What about Jako? Were they consulted? What about other manufacturers? Yes, I know that three were approached but who voted on which ones? In fact, we don't even know which ones.

 

You get told what you need to be told when it is the right time for you to be told.'

 

[doheochai]

Originally Posted By: Jeff

Shall MyFC get involved with Ebbsfleet? Yes/No

Shall we have Nike as a kit manufacturer? Yes/No

We vote yes or no but that is about it.

Jeff these two votes were always going to be take-it-or-leave-it votes and were always flagged as such. The responsibility for the putting of proposals to the membership lies with the MyFC Board - who ahve yet to be elected. The 'operator' has had to take the lead on a small number of issues, within the rules of the Society, as a matter of urgency and these two votes are the result. If the same situation pertains to the decision making process in a years time I will be standing beside you making one hell of a stink.

[chris blanc]

Originally Posted By: doheochai

Jeff these two votes were always going to be take-it-or-leave-it votes and were always flagged as such.

I was under the impression that the first vote after getting the club was to be IF there was to be a new kit, not WHO would supply it?

Originally Posted By: doheochai

The responsibility for the putting of proposals to the membership lies with the MyFC Board - who ahve yet to be elected. The 'operator' has had to take the lead on a small number of issues, within the rules of the Society, as a matter of urgency and these two votes are the result. If the same situation pertains to the decision making process in a years time I will be standing beside you making one hell of a stink.

What was so urgent that we couldn't have waited another month to try and get a good deal on the kit?

[Jeff]

Exactly. Or gone with Chas's tender idea?