Finance

  • Nike set to dominate US sports

    Nike has extended its deal with the NFL for another 3 years.

    So all in all the NFL franchises will wear the swoosh through to 2020.

    Nike extends on-field deal with NFL

    and adidas has decided to not bid for re-newal of its NBA deal.

    Under Armour and Nike are the two brands in contention to take over from adidas in 2017

    Adidas will instead try to double the number of individual athletes that endorse its products.

    The NHL is probably least attractive of the 4 major pro sports leagues in the US.

    While the MLB is kitted out by Majestic Athletic.

    Adidas which considers itself the leading football brand in the world kits out the MLS.

  • Adidas Fiscal year 2014

    Adidas sees limited over-all growth even in a World Cup year. Total sales grew only 2%. Seems like Adidas Fiscal year 2014.

    On the other hand the company saw very strong e-commerce growth with global online sales growing 69%.

    Read the full story here on InternetRetailer - adidas fiscal 2014

    The goal is to top the 500 million Euros mark by the end of fiscal 2015.

  • Chelsea sponsorship deal with Yokohama Rubber

    New shirt sponsorship deal between Chelsea and Yokohama Rubber.

    Click here to read the story by Daily Mail!

    Here is the full list over shirt deal by English Premier League clubs.

    PREMIER LEAGUE SHIRT SPONSORS 
    Club Sponsor Value per year
    Man United Chevrolet £47m
    Chelsea Yokohama Rubber £40m
    Arsenal Fly Emirates £30m
    Liverpool Standard Chartered £20m
    Man City Etihad £20m
    Tottenham AJA £16m
    Newcastle Wonga £6m
    West Ham Betway £6m
    Everton Chang Beer £5.3m
    Aston Villa Dafabet £5m
    Sunderland Bidwest £5m
    Swansea GWFX £4m
    Stoke Bet365 £3m
    QPR AirAsia £2.5m
    Hull 12Bet £1.6m
    West Brom Intuit QuickBooks £1.2m
    Southampton Veho £1m
    Burnley Fun 88 £1m
    Leicester King Power £1m
    Palace Neteller £750k
    TOTAL £216.35m

     

    To quote the article:

    Chelsea’s new deal shows the staggering earning potential for ‘super clubs’ with genuine global followings, and highlights the global nature of the Premier League as so many foreign companies seek to use English football to sell their wares to an international audience.

    Comment:

    Well, "super clubs" might not be defined exclusively as top of the EPL but also a club with regular place among the last 8 in the UCL. Which again means that a top 4 spot is vital for any of the top 6 clubs of the EPL.

  • New Balance in Soccer

    New Balance making a move in order to try to capture a slice of the 6 billion USD soccer market.

    Click here to read the story about New Balance in soccer on bloomberg

    Continue reading

  • Block Buster Kit Deals

    Check out these Block Buster kit deals!

    In 2011 FC Bayern extended their deal with Adidas until 2020 for a total over those 10 years of 180-200 mio Euros. That is some 20-22 mio Euros per season.

    FC Bayern had a profitable 2013/14 season including revenues of 105 mio Euros from merchandising. Putting the numbers together it means that a substantial amount of licensed merchandise is sold by the Bavarian powerhouse. Typically replica kits make up 55% of total merchandising sales so most likely Bayern gets more than the 20-22 m. Euros mentioned above out of the Adidas deal. Either in variables or through their own retail activities.

    Just recently FC Bayern opened their first store outside of Bavaria, in Berlin. And in the spring of 2014 the club opened a commercial office in New York to try to grow the US market. So things are happening.

    Rumors have it that the FC Bayern online shop sells 2 mio Euros worth of merchandise a month and that out of the total 105 m merchandising turnover a year the club's own direct sales channels bring in around half of that.

    Over the summer 2014 Chelsea prolonged their deal with Adidas for another 10 years at a total price of an estimated 354 mio Euros that is 35 mio Euros per season. Already significantly more than the 20-22 m. Euros of the Bayern deal. And that is within a short time span of some 3 years that the prices have risen quite substantially.

    Real Madrid gets an estimated 38 mio Euros per season from Adidas. But how much will the next Real Madrid kit deal sell for ? The Real Madrid kit is probably the best selling kit in the world right now. So a substantial raise can be expected.

    Juventus will switch to Adidas starting from the season 2015/16 which will guarantee the club a minimum of 140 mio Euros over 6 år the equivalent of 23 mio per sæson. Slightly more than Bayern on the surface but maybe the Bayern deal has also been revised recently and maybe it includes certain variables which will let the 22 m. a year increase the total payout substantially.

    The Adidas Manchester United deal for a Minimum of 750 mio. Pund over 10 years absolutely beats everything else ever seen by a wide margin. That translates into a guaranteed 98 mio Euros per season.

    Nike so far during their 2005 to 2015 10 year contract paid Man Utd 31 mio Euros per season. So we are talking almost triple of that on the current 10 years Adidas deal.

    FC Barcelona gets 33 mio. a year from Nike making it the highest earning Nike team. Barca even has a clause in the contract saying that the club has to be the highest earning Nike club in the world. The implication being that for instance Nike signing Man Utd for 100 m Euros a year would make the total costs run into 170 m a year since Barcelona would then have to be elevated onto 100+ a year.

    Puma's deal with Arsenal is for 200 mio Euros and over 5 years. That is 40 mio Euros a year. Maybe slightly less. According to other sources it should only be an estimated 35 m a year. Which would still make it the biggest kit deal in England ever until that is the HuGe Blockbuster deal between Man Utd and Adidas the summer of 2014 starting from the summer of 2015.

    Two deals up for grabs within the next 1-2 years are:

    Warrior / NB with Liverpool. Currently estimated at some 33 m Euros a year.

    Under Armour pays around 16 mio Euros a year for the right to equip Tottenham.

    Interesting to see where Nike wants to go from here ?

    Over the last few years they have let go of: Dortmund, Arsenal, FC Porto, and now Celtic, Man Utd, Juventus.

    New clubs which have come in include: Frankfurt and AS Roma but hardly any replacements for those which have left the Nike fold.

    For the season 2015/16 the 3 top Nike team will be: FC Barcelona, Paris Saint-Germain, Manchester City. Will it be enough ?

    Second row: Inter Milan, AS Roma, Atletico Madrid.

    Third row: Zenit, Galatasaray, PSV, Bilbao.

    Compare that to the lineup of Adidas with Man Utd, Chelsea, Real Madrid , Valencia, FC Bayern, AC Milan, Juventus, Marseille, Lyon, CSKA, Fenerbahce etc.

  • Deloitte Money League 2014

    Deloitte Money League 2014

    Nice little presentation in Slide Share:

    Click here to see the Deloitte Money League 2014 in slides!

    But we will bring a summary here below in case you do not have the time for another Power Point related presentation.

     

    1. Real Madrid (adidas) [ownership Spain]

    2. FC Barcelona (Nike) [ownership Spain]

    3. FC Bayern München (up 1 place) (adidas) [ownership German]

    4. Manchester United (down 1 place) (Nike) [ownership US / publicly traded]

    5. PSG (up manyyyyy places) (Nike) [ownership Qatari]

    6. Manchester City (first time into top 10) (Nike) [ownership Abu Dhabi]

    7. Chelsea FC (down 2-3 places) (Adidas) [ownership Russian]

    8. Arsenal (down 2-3 places) (Nike - summer 2014 > Puma) [ownership US/Russian/UK]

    9. Juventus (finally an Italian team in the top 10) (Nike - summer 2015 > Adidas) [ownership Italian/public]

    10. AC Milan (going down) (Adidas) [ownership Italian]

     

    11. Dortmund (on the rise) (Puma) [ownership German/public]

    12. Liverpool (needs Champions League to rise) (Warrior / New Balance) [ownership US]

    13. Schalke 04 (Adidas) [ownership German]

    14. Tottenham (Under Armour) [ownership UK]

    15. Inter (free fall from top 10 now barely making it into top 20) (Nike) [ownership Italian / Indonesian]

    16. Galatasaray  (Nike) [ownership Turkish]

    17. HSV (mediocre team - impressive to make it to number 17) (Adidas) [ownership German]

    18. Fenerbahce (another Turkish team - what is going on here ?) (Adidas) [ownership Turkish]

    19. AS Roma (Asics / Own Label - summer 2014 > Nike) [ownership US]

    20. Atletico de Madrid (finally a third horse running in Spain) (Nike) [ownership Spanish]

     

    Let's count:

    Spain - 3

    England - 6

    Germany - 4

    Italy - 4

    Turkey - 2

    France - 1

    and on a different note:

    Nike: 9

    Adidas: 7

    Puma: 1

    Warrior: 1

    Under Armour: 1

    Asics: 1

  • Deloitte Money League 2013

    Deloitte Money League 2013

    The numbers stem from the season 2011/12 and are thus not up to date when the report is released.

    But these are the latest figures and thus the best way to reflect the state of the finances for Europe's top football clubs.

    The figures stated are revenues in million Euros and thus do not take into account and profit/loss statement.

     

    Real Madrid - 512.6

    FC Barcelona - 483

    Man Utd - 395.9

    FC Bayern - 368.4

    Chelsea - 322.6

     

    Arsenal - 290.3

    Man City - 285.6

    AC Milan - 256.9

    Liverpool - 233.2

    Juventus - 195.4

     

    Dortmund - 189.1

    Inter - 185.9

    Tottenham - 172.2

    Schalke 04 - 174.5

    Napoli - 148.4

     

    Marseille - 135.7

    Lyon - 131.9

    HSV - 121.1

    AS Roma - 115.9

    Newcastle U - 115.3

     

    To read the full report click on the link below:

    The Deloitte Money League 2013 Report

     

    and those clubs just outside the Top 20:

    Valencia - 111.1

    Benfica - 111.1

    Atletico Madrid - 107.9

    Ajax - 104.1

    VFB Stuttgart - 103.2

     

  • Sporting Goods digitalization

    The Digitalization of Sporting Goods | ID Motion

     

    Companies like Nike, adidas, and Asics lead the way when it comes to merging digital with the world of physical products.

    Starting with running where the idea of measuring time and distance is pretty straight forward these companies now try to branch out into different directions experimenting with other ways of applying digital to athletic apparel and equipment.

    The strategy is three-fold.

    The first reason is pretty straight forward and is simply to use the technology to create better products.

    The second is less obvious to the consumer but has real effects in the market: to lock-in the consumer to a specific brand by making switching costs higher and by leveraging network effects.

    If your friends and others are also on this network the cost of switching rise exponentially because you would need to persuade all friends, and all other people with whom you interact to move also. If Nike or adidas owns your data or if the format is incompatible with other services it is inconvenient to go elsewhere since the switch would come at a loss.

    Big data is the new buzz word in the world of business. Google and Facebook sit on the biggest loads of data but surely any digital platform no matter the size has the ability to generate valuable insights. So no doubt that adidas and Nike also use their digital platforms for data mining.

    For other companies in the industry the challenge to keep up is daunting. Firstly, it is necessary to develop and roll out a good product which does not come cheap. Secondly, the problem with everything digital is that there tends to be a winner takes it all effect. If you already have a profile on Facebook and your friends are there you do not want to be on google + or myspace etc. also.  If you already have a profile on adidas do you want to run other profiles simultaneously on 3-4 different platforms for other brands?

    Solution ? Open Source.

    My suggestion in order to combat this development of walled gardens is to create an open source framework where a number of sporting goods manufacturers come together and create an open standard which can then be used to build digital products.

    The advantages would be many and the same as seen from the world of software. E.g. Linux, Mozilla, Android etc. Which are all very effective and market leaders in their niches for server software, browsers, and mobile OS.

    Developments costs for everyone involved would go down dramatically. The fact that the digital dimension could be used cross-brand would be a boon for consumer choice and options. Productivity, creativity, and development of new products would be much greater than if the system was to be developed and maintained by just one company. Reach would be bigger.

    The great success of Apple is not due to its devices but due to its app ecosystem where it managed to take advantage of first mover effects catching everyone by surprise. The app store is now thriving due to the immense network effect mentioned previously.

    By developing a basic API standard, and by putting some basic tracking devices compatible in format with products from companies subscribing to the open source format into stores it would allow anyone in the whole world to write an app which could then turn the information generated by the tracking device into valuable information in innumerous ways. The app developer would be free to sell the product or offer it for free as known from the app store or from google play (former android market).

    The retailers would love it. Adidas and Nike now compete heavily with their own retailers by locking in consumers and by marketing to them and selling to them through their proprietary platforms. With an open source system InterSport could create their own app tapping into the data generated by the devices used in conjunction with products from brands like Puma, Warrior, Under Armour, Macron , etc. whoever subscribes to the framework.

    As a user you would own your own data and you would be able to move it, upload it to new apps and other services coming out so that you would be able to bring your online digital “identity of motion” with you. It would put the user in control.

    Smaller brands would be able not only to compete with the big boys but also actually win the digital war since their digital offering would be more appealing. Anyone who has used adidas micoach for anything but running realizes how poor it is from a technological point of view as well as the limited benefits to the athlete. But with an open source system laid out for anyone to participate in the wisdom of crowds would flourish and would unleash an enormous creativity as seen with the app economy of Apple. Niche products suitable for only a small group of people would emerge. Adidas and Nike target mass-market. An app economy would mean greater targeting and many more niche products = more consumer value.

    New hardware could come out as well with smarter tracking devices and smarter uses. Puma could come out with a piece of intelligent clothing where the tracking device could sync the data with a Facebook app which would also be able to pull data from a pair of sneakers from New Balance. A hardware device by a third part company from Taiwan could be sold as a stand-alone product and Under Armour could then design apparel or footwear in such a way that the device could be inserted into a slot in the shoe or in the jersey.

    It would be possible to merge sports with lifestyle since the standard could just as well be adopted by apparel and shoe manufacturers in fashion. So you could track your movement not only when wearing sneakers but also when wearing dress shoes.

    There is no need to invent and re-invent the wheel 2345 times for every single sporting goods manufacturer out there. One time ought to be enough and it would surely benefit those companies with a smaller R&D budget than Nike / adidas.

     

     

  • UEFA HQ Nyon Switzerland

    UEFA HQ Nyon Switzerland

    So this is where the huge business of football is directed and managed from. A very discreet and quiet location right on the Lac Leman or Lake Geneva.

    The building itself also appears very Swiss.

     

    UEFA HQ Nyon Switzerland

     

    Tucked in between mountains and lake of course there as to be a football stadium nearby.

     

    UEFA stadium Nyon Switzerland

     

    and seen from the lake side.

     

    UEFA HQ seen from the lake Geneva

     

    Nice modern building with canteen and a terrace overlooking the lake.

    and how about the neighbors ? well , they look like they are doing OK also ) Nice view, nice villla, nice neighbors ?

    UEFA neighbors villa view lake

    Absolutely cool, stunning, and discrete.

     

     

  • Soccer Jersey of the Year 2012 Read

    Soccer Jersey of the Year 2012 Award - and easy read

    soccer jersey of the year 2012

    We provide you with the single page format here.

    Take a look and lets us know what you think!

    Click here to download the report with all details of the soccer jerseys for the season 2012/13!

Items 11 to 20 of 25 total

Page:
  1. 1
  2. 2
  3. 3