We created some value from nothing yesterday with the JD Sports retail deal. Official Celtic merchandise will only be available through club and JD shops and online stores. This allows JD to harvest all retail margins on Celtic kit from their 700+ stores, instead of earning a small percentage, as they otherwise would. With some of that extra revenue, they will pay Celtic a fee. Celtic will see a direct sales pick-up as there are one of only two retailers selling the kit.
No information was given on the value of the deal or its duration. 14 years ago, Rangers sold the next 10 years of their retail rights to JJB Sports for £18m up front, plus £3m each year, a total of £48m.
Celtic had similar offers at the time but declined. While money was short and we were perennially in debt during that period, front loading revenue like this was thought likely to lead to a feast and famine existence. At the time, David Murray said the deal would “enable further investment to be made in the team”, ahead of the memorable Paul Le Guen era.
What do you do when you are in an arms race with a club spending absolutely everything? We brought our debt down slowly, lost three of the next six title battles, but won the war. When he needed revenue to pay creditors, instead of buying footballers, Murray could not rely on retail revenue. The deal turned sour for JJB six years later when Rangers were liquated. The episode became a morality tale.
I doubt anything like £18m is making its way to Celtic’s bank today because of this JD Sports deal, it’s more likely we have taken a slice of one year’s retail margins on our kit. An indication of where we are in the current crisis and how we are working to make up the shortfall. It takes 10,000 acts to build a successful season, not all of them happen on the park. This is good work by a commercial team that know what they are doing.
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Arch hun,Ralston,in the Record,spitting nails.Huns have released a statement,denying the story.Well,initially.Backtracked a bit near the end with a bit of a smokescreen,to confuse the gullibles.
Ralston,raging.He says”Once again Ashley has been put in his place”!!!!!!!!!!!!!.In his rage he claims Huns have sold 40,000 strips.Not in shops yet.
Could get interesting again.
Tony Rome,
No,not recently.How far you going back.
I suspect Big Mike will be back in Court soon to remind the Sevco board what the word “exclusive” means.
He’ll be seeking damages for every unit of kit sold outside of his stores. He may go nuclear and seek a stop to sales but I suspect he’s content to add to his list of damages and let Castore & Sevco tear away.
Turkeybhoy on 1st July 2020 11:08 pm
Tony Rome,
No,not recently.How far you going back.
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Ask the RES 12 bhoys they are better informed than me and probably you too.
KEEP THE FAITH
Good morning cqn from a dry, mild but grey skied Garngad
So the deal to bring big Fraser could be back on now. He needs to take a dramatic pay cut if we are to sign him, then the £5 million signing on fee wont look as bad.
If, if, if and we know the auld saying, if ma Granny had haw maws…
Right a mountain load of paper work beckons at work and the sooner I get it done the sooner I can get back to this wonderful place. Asta last vista.
Ps anyone been to Long beach resort and spa in Alanya in Turkey, my son in law booked it for next summer for us all. Looks good on you tube.
Hail Hail
D :)
Good morning, friends, from a dry, calm, cloud covered East Kilbride.
Another working-from-home day beckons but followed by 11 not-working-from-home days as I finally blink and take some of my leave entitlement. Hoping the Scottish weather improves!
I wouldn’t write off Forster not coming back just yet,it’s possibly an opening gambit on negotiations. Southampton, who by all accounts have money troubles and are up for sale, are obliged to pay FF £7 million for next 2 seasons, without getting anything out of him.From what ican see both clubs and the player want the same outcome, Southampton will need to pay him off,or pay a big chunk of his wages for 2 years,hopefully a deal can be done.
I am confused which is sadly now my default mode. I keep reading and believing that our Govan neighbors are morally (agreed) and financially destitute. I read and believed they could never survive until the start of this coming season.
How do they manage to defy the obvious and still trade? Who or what are keeping the lights on and how long can this continue? How can they be investing in players when we were all awaiting the repossession of the big screens and catering equipment?
I ask
I ask myself is that enough questions for one day? ☘️
RIP Hunderbirdsaregone. Sincere condolences to the family.
PADDY GALLAGHER on 2ND JULY 2020 7:15 AM
They just sold 40,000 season books. They will have cash for now.
The question is, how will they be getting on in January?
Morning All. What did Statement O’Clock say, especially the back tracking bit?
sevco indirectly denying any agreement with Sports Direct and saying they only have an agreement with Castore. The statement is a tad woolly. All they had to do was come out with one sentence saying that what SD said was untrue. The Daily Rangers now claiming sevco have sold 50K strips, well at £60 a pop that is only £3 million and they only get a small slice of that.
The question that is not being asked is will Castore be able to procure enough material to make 50,000 XXXXL hun strips? They may find that they are living beyond their seams.
From Andrew Smith in the Scotsman:
Rangers have sought to reassure their fans over Sports Direct’s involvement in the retailing of their new Castore-produced home strip.
Following a long-running court dispute, Rangers were finally able to cut ties with Mike Ashley’s controversial sports company in May but, in its advertising, Sports Direct claimed that the new Rangers kit would be sold “exclusively” in their stores from 1 August.
However, in statement released last night which did not make direct reference to Sports Direct, Rangers set out that Castore, the club’s official retail supplier after agreeing a £25 million, five-year deal with the Ibrox side, would determine which outlets stocked the merchandise and that all sales would “benefit” Rangers – an issue with the previous Sports Direct contract.
The statement read: “Rangers continues to look forward to their long term exclusive partnership with Castore, which, for the avoidance of doubt, is a direct agreement between those two companies with no other persons party to the deal.
“As previously stated, it offers a fresh start for the Club and a chance to purchase high quality clothing and other products that directly benefit Rangers. As is common practice in teamwear retail, Castore will form a number of wholesale supply arrangements with high street retailers in the UK and overseas because that is key to the global aspirations of both Castore and Rangers but the purpose of these arrangements will always be to maximise the availability and sales channels for Rangers products.
“Rangers exclusive partnership with Castore ensures that Rangers always directly benefits with a royalty from the sale of all of the Rangers products manufactured, distributed and retailed by Castore. This includes all products distributed by Castore to high street retailers.”
The Rangers statement highlighted that a refurbished Rangers store at the stadium would be selling the new kit from August 1. This store had previously been in the control of Sports Direct, and, as a result of the commercial conflict between the company and the club, had not sold the official Hummel-branded kit of the past two years.
“The new Rangers Ibrox Retail Store will be complemented with a number of other key retail sites in Glasgow and further afield, now identified by Castore and Rangers and close to agreement,” it read. “The Ibrox Retail Store will undergo a £250,000 renovation and become a key venue for all Rangers supporters and on matchdays will be supported with further pop up stores within the stadium.”
Hunderbirdsaregone Rest in Peace.
Pog
Having read that Statement, I am having the same experience as that woman from Still Game (?) whose olfactory nerves were stimulated.
Having said that, how often have we heard of situations predicting a near fatal outcome for Sevco yet they are still with us and, it would seem, still spending money? I feel they will never be allowed to disappear in Scotland.
While I still hope we sign Fraser Foster, I wouldn’t be too unhappy if we resign David Marshall. I still well remember his being thrown into action at half time against Barca and then going to Ibrox. He was brilliant (and he was only 19). Hopefully, our goalkeeping guru can work his magic once again.
By the bye, BBC Scotland is saying today is to be the best day of this week. No here, no so far. Have we had our summer?
PCS,
The St Pats goalie coach would work wonders with David I reckon.
If Fraser isnae coming Bach….. never forget…. I know Nothing. David would be the wan For me.
10 is Almost there. It will be the hardest to get as we are gonnae Rock overseas I reckon.
Mo is Top Drawer – deelighted he has came Bach.
new article posted.
I have a feeling Mike Ashley never went away,I Believe he is keeping the lights on at Ibrox,that’s were the money is coming from,Who in there right mind would chase a Billionaire out of ur club,especially if they are skint,and the guy who came on saying about Celtic Supporters laughing at Sevco being lied to by there board ,and saying our club are much the same he is quite right,as for Fraser Foster let him stay at Southampton,David Marshall would be a good bit off business,or the ST Mirren goalkeeper .
Paul67
You at it Paul ?
POG – Thanks for that fulsome summary of the Statement O’Shoite emanating from thems. Bewildering in so many ways. Fawning pseudo journos lapping it up. ….or making it up.
hahahahaaha…..”They may find that they are living beyond their seams.”
smiley nice wan Pog…your well named thing
Braw
Is there really a new article?
I’ve emailed Paul, as I did yesterday!
X Men: Class of ’21
Mohamed Elyounoussi
Who did we enrol today?
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I think the Fraser Hornby transfer from Everton to Stade de Reims is one worth following. Can a Scotland U21 cap impose himself in training to get in the first team? Good luck to him.
And in drops the refund cheques, now to find a bank, none here😠