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ken_RFC
08-03-2012, 21:15
Anyone know how long the JJB contract lasts on the shirt sales or will this be affected by current situation aswell?
Sooner we get that back so the bulk of the money taken on shirt sales goes directly to the club the better. I got a feeling when we come out of the current predicament there's goin to be an unprecedented demand for the next Gers kit!! I know I'll be buying it! RTID

Andy Weir
08-03-2012, 21:32
Quick google gave me this:

(Not recent, I know)

http://www.bbc.co.uk/news/uk-scotland-glasgow-west-17063863


One of Rangers' biggest commercial partners has said it will continue to work with the club in administration.

JJB Sports and the Ibrox club entered a 10-year merchandising contract in 2006.

The firm said it was "saddened" to hear about Rangers' predicament but was "committed to working with the club".

Rangers' players met administrators from Duff and Phelps at the club's Murray Park training ground on Thursday to learn about a timetable for potential job cuts.

The club's former owner David Murray agreed the 10-year licence agreement with JJB Sports, which saw Rangers receive an initial payment of 18m, with a guaranteed minimum annual royalty of 3m.

'Full support'
There has been great uncertainty over the club's commercial deals since it entered administration on Tuesday.

In a statement, JJB Sports said: "We were saddened to hear of the news that the Rangers FC had entered administration. However, the club has our full support and we are in constant dialogue with them during this difficult time.

"We are committed to working with the club, the fans and the administrators to achieve a successful outcome to secure the club's future."

Ali Russell, chief operating officer at Rangers, said: "I would like to thank JJB Sports for demonstrating its support and commitment to Rangers during this difficult time for the club.

"We are working with the administrators to resolve the current situation and appreciate the professionalism in the way our partners are handling current events."

Rangers' shirt sponsors Tennent's made a similar supporting statement on Wednesday.

The Ibrox club entered administration after HMRC pursued legal action at the Court of Session in Edinburgh over alleged unpaid VAT and PAYE totalling about 9m.

gilday
08-03-2012, 21:33
Newco then the JJB deal would be scunnered

Tiger Wood
08-03-2012, 21:36
Being contractually obliged to jjb has been soul destroying for every Rangers fan. I'd love to get away from them.

Leedsbear
08-03-2012, 21:36
In this climate the 3m a year payment isn't too bad but I would like to see a major player like adidas produce the kit when the deal is up.

The club and JJB royally messed up and scored a major own goal when we went to Manchester though with the lack of merchandise that was available.

150 Edmiston
09-03-2012, 14:17
Deal was signed in 2006 and from recall is for 10 years.

craigie
09-03-2012, 14:20
Being contractually obliged to jjb has been soul destroying for every Rangers fan. I'd love to get away from them.

Would we be making 3m profit (minimum) if we did our own distribution?



25/10

ssblue
09-03-2012, 14:22
It was announced 6 years ago today along with the PLG appointment.

How do I know this? It was the day my son was born and I remember reading it while the missus was going through 20 hrs of labour. :o

jimbo 08
09-03-2012, 14:27
Would we be making 3m profit (minimum) if we did our own distribution?



25/10
No we wouldnt

Go_Bert_Go
09-03-2012, 14:27
Financially it's been Sir Moonbeam's best move. 4.8m a year with 18 of that upfront.

150 Edmiston
09-03-2012, 14:27
Would we be making 3m profit (minimum) if we did our own distribution?



25/10

in 2005 (when we did our own distribution), gross sales were 21m and net (yes net) profit was just under 7m. That was an exceptional year, but we would trounce 3m even in todays retail climate.

milkybarkid
09-03-2012, 14:29
2016? I'd rather suffer this deal than be reformed as newco.

newco will NEVER and I mean NEVER be the same

md1873
09-03-2012, 14:30
What has always annoyed me is any JJB in England you go into there is no Rangers stuff but loads of Filth.

Even my local sports shop has started carrying their gear/footballs and such like, needless to say they have lost a big order and I have been telling loads of people to Boycott them............

Ter
09-03-2012, 14:33
Would we be making 3m profit (minimum) if we did our own distribution?



25/10

Dunno how much we would get for each shirt sold but say it was 20 per shirt and we sold 50,000 then that's 1M pocketed. I think we could get more than 3M per season doing it on our own.

SportingLesbians
09-03-2012, 14:33
Financially I think it's supposed to be a very good deal for the club I believe the scum make a loss with their shops I may be wrong though. It is however terrible for the marketting of our club when we don't even have a shop in our city any toursts after a shirt would be drawn to the scum shop not the shitty sign thing in JJB.

Southside_Shug
09-03-2012, 14:34
in 2005 (when we did our own distribution), gross sales were 21m and net (yes net) profit was just under 7m. That was an exceptional year, but we would trounce 3m even in todays retail climate.

When every retailer in the Western Hemisphere has taken massive hits on Margins?

4.8m in the bank as profit is guaranteed

150 Edmiston
09-03-2012, 14:37
When every retailer in the Western Hemisphere has taken massive hits on Margins?

4.8m in the bank as profit is guaranteed

The 4.8 you quote is with add ons. The base figure is 3m with a ratchet upwards depending on sales volumes. The way JJB have performed as a retail business over the last few years I doubt very much if they have ever exceeded the targets. The 4.8 is not guaranteed.

macdonsj
09-03-2012, 14:40
Financially I think it's supposed to be a very good deal for the club I believe the scum make a loss with their shops I may be wrong though. It is however terrible for the marketting of our club when we don't even have a shop in our city any toursts after a shirt would be drawn to the scum shop not the shitty sign thing in JJB.

For us

Financially - excellent
Marketing wise - awful

would we rather have money or shirts nearer the door in JJB?

For them

only shop that makes money is the Yahooland one
all others lose (imagine the rent for Argyll Street)
the Airport one is basically a money tap stuck on "full belt"

EatDolphins
09-03-2012, 14:42
Worst thing we ever done regarding merch. They offer us **** all.

ThatsWhyWeirChamps
09-03-2012, 14:42
in 2005 (when we did our own distribution), gross sales were 21m and net (yes net) profit was just under 7m. That was an exceptional year, but we would trounce 3m even in todays retail climate.

3m is just a minimum too, remember.

Although, I think, in the long run, we need to be doing things ourselves. Our marketing strategy, in general, is quite poor. I'd be willing to wager that the mhanks outsell us by close to 2:1 overseas, and that's via their players too. Celtic have a first team player from most profitable, non-European markets around the World, and most of them are good players too.

I think we attempted something similar this year, but it doesn't work if the players aren't at a high enough standard. Bocanegra is a great signing, Bedoya, not so much. We tried with the Indian boys, again, not of enough quality, but the correct idea.

I think our manufacturer does us no favours in this respect. Adidas would be my choice going forward.

RFC417
09-03-2012, 14:43
The 4.8 you quote is with add ons. The base figure is 3m with a ratchet upwards depending on sales volumes. The way JJB have performed as a retail business over the last few years I doubt very much if they have ever exceeded the targets. The 4.8 is not guaranteed.

Correct, we get a base 3m a year and will never get add ons.

But we got 18m upfront so 10 year deal, 48m.

macdonsj
09-03-2012, 14:44
The 4.8 you quote is with add ons. The base figure is 3m with a ratchet upwards depending on sales volumes. The way JJB have performed as a retail business over the last few years I doubt very much if they have ever exceeded the targets. The 4.8 is not guaranteed.

the 4.8 is made up of 3m guaranteed plus 1/10 per season in the acounts of the 18m upfront amount

over the course of 10 years - the deal totals 48m

Bluedell
09-03-2012, 14:48
in 2005 (when we did our own distribution), gross sales were 21m and net (yes net) profit was just under 7m. That was an exceptional year, but we would trounce 3m even in todays retail climate.

Where do you get the net profit of 7m from?

rez_1873
09-03-2012, 14:53
Dunno how much we would get for each shirt sold but say it was 20 per shirt and we sold 50,000 then that's 1M pocketed. I think we could get more than 3M per season doing it on our own.

No we couldn't.

Many of our shops were run at a loss.

rangerstillidie
09-03-2012, 14:55
No we couldn't.

Many of our shops were run at a loss.

Have less shops and a better online presence?

I don't know if it can be done or not, but i'm sure if it was run properly we wouldn't be far off it.

150 Edmiston
09-03-2012, 14:55
Where do you get the net profit of 7m from?

Primarily wholesale (into JJB, JD, Sport Soccer etc) and licencing, both of these entities had virtually zero overhead and was the brainchild of Nick Peel who I shared an office with.

Licencing did a clean 1.5m, Wholesale did 2.5m (3 kit launches that year if my memory serves me) and retail did the balance. Retail did the volume sales, but had all the overhead like rent, rates, staff etc. so was less profitable.

Bluedell
09-03-2012, 15:23
Primarily wholesale (into JJB, JD, Sport Soccer etc) and licencing, both of these entities had virtually zero overhead and was the brainchild of Nick Peel who I shared an office with.

Licencing did a clean 1.5m, Wholesale did 2.5m (3 kit launches that year if my memory serves me) and retail did the balance. Retail did the volume sales, but had all the overhead like rent, rates, staff etc. so was less profitable.

I meant more how did you get the figure. I presume that you are saying that you had inside information?

It seems extremely high given that it earned a profit of 3.7m on a turnover of 18.7m in the previous year.

SportingLesbians
09-03-2012, 15:28
On a sidenote can anyone remember how many shops we had and in what towns and cities where they based before the JJB deal.

mckay4379
09-03-2012, 16:20
The deal we signed with jjb in 2006 was for 10 years, worth 48m. 18m of that was a lump sum payment, most of which was swallowed up by our massive debt back then. So currently we are only looking at 3m a year til the deal ends.

I don't like comparing ourselves with c*ltic because i know we are BETTER than them, but they are in a 5-year deal with nike that guarentees them 5m a year. They also have their own club shops and online store which makes them even more money on top of that. Surely we should have a similar deal with one of the big kit manufacturers like nike or adidas, and have 2 or 3 of our own shops with an online store?

150 Edmiston
09-03-2012, 18:42
On a sidenote can anyone remember how many shops we had and in what towns and cities where they based before the JJB deal.

Superstore, sauchihall st, argyll st, clydebank, st enochs, inverness, kickaldy, airport, livingston, braehead, east kilbride, belfast are all the ones that spring to mind. Dumfries, edinburgh etc were temps at xmas.

In reply to question on a previous post about me having inside information, i worked in rangers retail for 6 years before Bain decided to break it up.