Getting full retail price for your replica match shirts changes the profitability of your merchandise significantly. When Celtic sell a shirt through their retail outlets, they buy that shirt from through the manufacturer’s distribution on similar terms to any other retailer. An item with a full retail price of £60 will have a gross markup of around £10.
If the discount retailers have access to the merchandise, they need to cut into that margin to drive business to their stores (online or otherwise), so will make do with a £5 markup. If you are a consumer, the difference between an item at £55 or the same item at £60 is very little, but if you are a club retail operation, that 100% increase in gross markup, could see your net margin increase by around 300%.
If you are a club and want to protect your margin – all clubs do, this is not a bad thing – an exclusive deal with one retailer is the road to travel. This is legal. If you permit only two retailers access to your merchandise, they will either compete or have to illegally collude to fix prices.
This morning’s news that Newco and two retailers face charges of illegal price fixing is more a sign of commercial competency than a club exploiting its own fan base. They are inexperienced and perennial underachievers compared to Celtic’s commercial team. I’m less exercised on the desire to get an extra £5 for your shirts, they all want this, for the reasons outlined above.
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It’s a fix a tell ye 😜
Oh! Close!
Bronzing myself
Tuesday 7 June 2022
Following positive and collaborative discussions between the board of the Scottish Lowland Football League, representatives from the Scottish FA and the Scottish Professional Football League, plus Celtic, Heart of Midlothian and Rangers, a revised proposition for season 2022/23 has been agreed.
This proposition allows the three guest clubs to participate in the Lowland League for season 2022/23. In addition, the respective league bodies have agreed to participate in the Scottish FA’s pyramid working group discussions aimed at providing a longer-term solution to optimise the structure and aid the transition of talented players between the ages of 17 and 21.
Following a positive vote, the plan commits to the following:
Celtic, Heart of Midlothian and Rangers will join the Lowland League for season 2022/23, creating a 19-team league for one season only. This will result in a 36-game fixture calendar.
Guest clubs are required to field seven players eligible for Scotland national teams in the starting line-up.
Each guest club will provide funding to help develop the league and its clubs.
The Scottish FA will lead on a review of the pyramid structure, with recommendations proposed ahead of the 2023/24 season.
Ian Maxwell, Chief Executive Scottish FA: “We are delighted that the Lowland League clubs have approved the participation of three guest clubs for the forthcoming season. The Scottish FA supports the principle of elite player development and particularly providing opportunities for talented players in the key transition years from 17 to 21.
“The Scottish FA will oversee a discussion in parallel to propose and implement a long-term plan with the objectives of optimising the pyramid, which has been a resounding success in Scottish football, harnessing the player pathway and accelerating the development of the country’s most talented young players through the national youth teams to the full international stage.”
Thomas Brown, Chairman, Lowland League: “We were always open to the inclusion of guest clubs for a further season given the successful player development outcomes from last year’s pilot. We want to be a modern and progressive league and we are excited to be playing our part in the eco system that develops Scotland’s talent.
“Importantly, we now look forward to working with the Scottish FA, the SPFL and our friends in the pyramid to create some new solutions to some existing challenges which will provide a bright future at all levels of our game.”
Neil Doncaster, Chief Executive, SPFL: “It is hugely encouraging to see such a joined-up and collaborative approach being adopted in such a vital area of our game.
“There are few more exciting things in football than watching the development of home-grown talent and it’s extremely encouraging that the Lowland League has agreed to assist our clubs on a temporary basis for Season 2022/23.
“The SPFL will commit our energies to a process that will explore options and, hopefully, allow us to move forward various aspects of our game for the benefit of our 42 member clubs and Scottish football as a whole.”
Thank you Paul67, a more balanced explanation than some of us were suggesting :)
And not something you’ll see anywhere else 👍
‘This morning’s news that Newco and two retailers face charges of illegal price fixing is more a sign of commercial competency ‘
####
Shurely shome mishtake.
Paul- does this mean that Celtic are doing exactly what Sevco have just been found guilty of, but we haven’t been found out yet?
Dustin Johnson getting $125 million,just for switching to Saudi golf tour,Mickleson been offered £200 million….that’s before prize money
!!BADA BING!! on 7TH JUNE 2022 1:07 PM
“Dustin Johnson getting $125 million,just for switching to Saudi golf tour,Mickleson been offered £200 million….that’s before prize money”
That’s obscene, just absolutely obscene. There’s something so wrong in the World when anyone can offer that kind of money to someone to play Golf and for those individuals to accept it! Yet, the government here can only offer 2% to Nurses and the like, as I said OBSCENE!
por cierto.
Sevco would sell the shirt off your back, oh wait a minute!!! por cierto
SETTING FREE THE BEARS FOR RES. 12 & OSCAR KNOX on 7TH JUNE 2022 1:06 PM
That was my reaction too.
Pingback: Price fixing and commercial competency | Celtic FC News Now
POR CIERTO
It is OBSCENE but just shows the value of Sportswashing for the Saudi’s and the amount of money to be made by sponsors selling golf equipment to ageing white blokes.
I last upgraded my clubs 23 years ago when my daughter was born. Every year, they claim that the latest driver technology will add at least 5 yards to my tee shots.
Given that I normally hit the ball about 180 yards, if I had bought a new driver every year, would I now be hitting it 395 yards?
Dustin Johnson is lucky that I stopped spending my money on golf.
While I see Paul’s point, I still hope the hun get a hefty fine.
This will ruin the Open the US open and the Ryder Cup, things as a golfer I look forward to, however since the European Tour became the DP World Tour I’m already much less interested, Sky sports have also played a role in the demise of the Open as the organisers sold the game out to them and its no longer available free to view live, greed of individuals has no bounds as we can see, I hope LIV fails miserably and people don’t watch it or attend to watch.
Dessybhoy
Spot on.
Can one purchase a dodgy stick and claim the moral high ground ? :)
Took me a good five minutes to stop laughing at this:
Calvin Bassey.
Gers’ versatile young defender has emerged as one of the brightest prospects on the continent after his incredible Europa League campaign.
Here’s the Guardians take on it
At the time, Elite was the manufacturer of Rangers-branded clothing and also sold the products directly through its Gers Online store and later in physical shops in Glasgow and Belfast. The only UK-wide big retailer selling those products at the time was JD Sports.
The CMA alleges that at the start of the 2018-19 football season, Rangers FC became concerned that JD was selling the Rangers replica top at a lower price than Elite, regarded as the club’s retail partner at the time. The three parties agreed that JD would raise its price for the Rangers adult short-sleeved home replica shirt by nearly 10%, from £55 to £60, to bring it in line with the prices being charged by Elite.
Sadly I’ve heard many Celtuc fans say openly that they wished the club be taken over by a rich Arab or American, I say we have billionaires on our board at the moment and what benefit has it been to the club, also we do not receive handouts or easy money from sky, CL money enables Celtic to reach 3 figure turnover the vast majority of which is raised by the support, who in my opinion cannot do any more ,but the frustration comes from small parochial clubs bolstered by Sky money who are able to blow Celtic out of the water in salaries, developing players will put up with the wages on offer here for a couple of seasons but if they are competent nearly all move to the money league.
Yes a couple of exceptions have existed Henrik brown callum but most take the money on offer.
SFTB, honestly! No. Of course not.
GGH
Cheers
I think the defence of incompetence or ignorance doesn’t really stand up. Of course your average Joe Soap won’t be aware of competition laws but a board of directors ?
Where this Celtic, heads would be rolling on the boardroom carpet and rightly so.
SETTING FREE THE BEARS FOR RES. 12 & OSCAR KNOX on 7TH JUNE 2022 1:06 PM
Paul- does this mean that Celtic are doing exactly what Sevco have just been found guilty of, but we haven’t been found out yet?
………………………………………
My reading is that he is saying that Celtic’s competence in such areas means not allowing themselves to get into this kind of situation.
“They are inexperienced and perennial underachievers compared to Celtic’s commercial team. ”
———-
So why compare them?
BB
That should pay off a chunk of Micklesons gambling debt.
Wouldn’t it have been more prudent of the hun and elite sport to drop their price by a fiver ..
Prudent anknowamhavingalaugh…..prudent and hun in the same sentence 😁
A Billionaire at Celtic who is never there ,personally I think it’s time the club got rid of it being a P L C ,Good honest Celtic supporters should run our club with every penny going into the club,rather than shareholders,took a walk round the stadium on Sunday by god it’s looking very drab and the need of a good lick of paint.
ERNIE
“It seems a bit unfair to be blaming the club for price fixing when it was obviously the holding company that was the guilty party.”
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Laughed out loud at that, Ernie. Spot on!
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& 7/8/14/15 March
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Wrongwayround🙈
Matchdays 🗓️
1: 6/7 September
2: 13/14 September
3: 4/5 October
4: 11/12 October
5: 25/26 October
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UEFA Champions League
@ChampionsLeague
==============
@ChampionsLeague
Knockout phase 👊
===============
🔹 Round of 16
14/15/21/22 February
& 7/8/14/15 March
===================
🔹 Quarter-finals
11/12 & 18/19 April
======================
🔹 Semi-finals
9/10 & 16/17 May
==========================
🔹 Final (Istanbul)
10 June
===============================
TEXASTIM & UNCLE JIMMY
“You must agree with me that they are upper and lower blue dots 🔵, not commas as you claim in your otherwise helpful post.”
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O.K. They are not commas, but on my device the blue dots have a straight blue tail, the leading one below the dot, and the second one above the dot. Like miniature lollipops, one straight up, and the other inverted.
dessybhoy- TH- Guys in their 40s will head to that golf tour,the Seniors Tour will die away,they wanted Mickelson as the poster boy for it,but DJ is a coup,at the height of his career.
There is an exclusive tie up with JD Sports and Celtic but the evidence points to an absence of mutually agreed pricing.
JD (last year or 2020) were selling shirts for about €10 more than the euro rate Celtic Online or the Dublin stores were doing. Supply issues meant they could charge more. Probably allowed to discount as well, I imagine, when the market softens
Sevco, the tap sellers champions of champions!
PAUL67 @1:48 PM
“SFTB, honestly! No. Of course not.”
——————————————
Thanks for the reply. You know how confused I can get when talking about big money issues.
I think Joe 11 and Coneybhoy have just added to my understanding of what you were saying.
Now- my question is- you seem to be allocating naivety and inexperience as the causal factor in Sevco falling foul of the law (yet again) rather than their usual downright criminality.
Boris Johnson could do with a defence lawyer like yourself.
Good afternoon all from sunny Jamaica. Street.