£100m Arsenal deal is cheap at the price

[Feis-al]

http://www.thisislondon.co.uk/sport/foo ... s/13618184

Actually when I was told that it involved kit sponsorship as well, I thought we missed something

 

[huyha123]

the deal will be for shirt and name rights. but not the same length. name will be 15 years. shirt is 8 years.

analysist said that Arsenal should get 5m/year for name. so with the current shirt deal 3m/year. we would come to 5m*15+3m*8=99m for the whole deal.

so the amount 100m is reasonable. not that cheap.

 

[Rupert]

Surprised Chelsea didnt come in and give us £500 million just so we would play with "Chelsea" on our shirt and they could claim that they won something

 

[r_blair2]

Its less than the £40m, three year, shirt deal with Vodafone or their £300m, 13 year, deal with Nike for shirt production that man utd have. or so they say

http://www.unitedrant.co.uk/2004/10/ars ... adium.html

 

[Exiled In Newcastle]

You're missing one very important point guys. If you read the OFEX statement then the monies are heavily weighted to the first few years. From memory something like £72m is payable by 2012 with some of the monies being paid now.

Yes there's no doubt that if the whole deal was payable in equal instalments over the length of the deal it would not be that good in comparison, but the massive early injection in effect increases the value of the deal as we get the money sooner.

 

[KingReyes]

Also I have a feeling that the Arsenal board thought this through very carefuly before signing don't you think? I'm sure they considered all options including whether to sign seperate sponsorships and thought this was the best for the club.

 

[Gunner4life09]

Also I have a feeling that the Arsenal board thought this through very carefuly before signing don't you think? I'm sure they considered all options including whether to sign seperate sponsorships and thought this was the best for the club.

agreed, the arsenal board wouldn't just sign who offered the money, if you think about it Emirates aren't bad sponsors, there a well known airlines company, they have experience sponsoring Premiership clubs, there given us a good deal. the only real problem i have is that the sponsored chelsea. This deal + wenger sigining a new contract has really given us a huge boost, finally we have the finacial power to really compete with the business side of things with the likes of chelsea and man utd. With a top quality side, a brand new 60,000 seater stadium, the worlds best club manager and the money to back that all up, theres not stopping us.

 

[Loylz]

Not yet we don't Gunner4life09,. Slowly as we grow bigger as a club we will get more and more money from exposure around the world, winning more things, an having a bigger audience of fans. Therefore anything with our name on it will be more expensive so the club will become richer, and with the debt of the stadium being paid off we wil be raking in cash from ticket sales and merchandise.

At the moment though Man U are top of the pile in these terms. We are ahead of Chelsea, but their sugar daddy ensures they are agead of us financially, but the flipside of this is we are secure financially for the long term but if/when Abramovic leaves will they be able to compete with us financially? Don't think so.

 

[the dawn raids]

Im not sure if 100 million and cheap can be used in the same sentence

 

[Exiled In Newcastle]

lol. That's a damn good point!

 

[gunnertilldeath]

its a huge deal. think about AFTER emirates is gone. we could simply sell the rights again. we will surely be a bigger team by then and will probably get more. after we have milked every team in the world dry, we could just slap on a permanent name like "wenger park" and count the benjamins...

 

[gunnertilldeath]

its a huge deal. think about AFTER emirates is gone. we could simply sell the rights again. we will surely be a bigger team by then and will probably get more. after we have milked every team in the world dry, we could just slap on a permanent name like "wenger park" and count the benjamins...

 

[fuzz]

does anyone know what our nike kit deal is worth?

 

[JazzG]

It is all good saying we could of got a better deal but you think the board would of taken this deal if they knew they could of got higher splitting it up? Analysts can say what they want and many think they are true straight away but the bottom line as far as I'm concerned is, this was the best deal available so we took it.

does anyone know what our nike kit deal is worth?

Around £13.5mill a year. The Mancs in comparison get £21mill a year but they have handed over all their rights and extra sales go into Nike's pocket, don't have a clue if we have done anything similar.

 

[Exiled In Newcastle]

I think we have.

But whilst manc kit sales are going down ours appear to be going up. The yellow away kit was the fastest selling kit we've ever had and apparently the new home kit is selling extremely well. And that's despite all the moody ones from the far east (if anyone's going or out there - I saw someone with the new home kit, but purple! He said it was one he'd bought out there somewhere. It was a real vivid purple but the styling, badges etc were identical to the new home kit. Get me one!).

 

[Aussie]

I think we have.

But whilst manc kit sales are going down ours appear to be going up. The yellow away kit was the fastest selling kit we've ever had and apparently the new home kit is selling extremely well. And that's despite all the moody ones from the far east (if anyone's going or out there - I saw someone with the new home kit, but purple! He said it was one he'd bought out there somewhere. It was a real vivid purple but the styling, badges etc were identical to the new home kit. Get me one!).

The Yellow shirt was the fastest selling shirt. I also belive that Reyes was the most printed name on the shirts as well.

 

[leongsh]

I'm not going to second guess the Arsenal board in deciding to go with the deal that Emirates offered. We really do not have the details of the deals, whether it be Emirates, O₂, Nike, Samsung, or any other corporate bidder, offered to the Arsenal board. It may have been the best deal available at that point in time that was offered and the board went with it.

So far, the Arsenal board is doing a good job of managing the financial affairs of the club. Unless we can get more details from a reading of the agreement made and what the other bids offered, let's not jump the gun and call it cheap.

 

[fuzz]

I read today in the sun that arsenal could have gained a further 23 million if we had seperated the shirt sponsorship from the stadium sponsorship. While i reckon this is probabaly true i dout that the we "missed out" on this. i am certain the club knew how much they could have earnt, don't forget they highered the best company in the business to negotiate this deal and the arsenal board have negotiated other sponsorship deals before. The arsenal board aren't ignorant of finance and sponsorship. I beleive they have done this deal for a collection of reasons:

firstly having one sponsor for both stadium and shirt sponsor is a far neater deal for the fans to deal with. I think that having to two seperate sponsors for the stadium and shirt would have looked asthetically far less pleasing especially to the fans. This way by having one sponsor we will have a far more developed relationship with emirates. Also the club will look far less moeney hungry compared to having several sponsors compared to one (emirates).

Emirates also offers more than just a single company's sponsorship. What i mean is that the middle east will be opened up by this deal. This deal with offer other forms of financial gain indirect and direct from other sponsors and investment.

Emirates may also have been the highest of all the companies to offer a combined deal not just for the stadium alone and since their offer represented more than the board had forecasted for the bank model it seemed a far more attractive and neat deal and hence their was no need to squeeze out every penny out of this sponsorship deal at the clubs detrement in terms of image atleast especially when this deal is more than we had predicted for.

So ultimately the club knows what it could have earnt if the deals had been split, but to view the deal in such a way is to have too narrow and tunnel visioned a view of things, aswell as a far too short term view of things. The middle east love their football, but since their teams and leagues are weak they look for others to sponsor and we will be the primary benefactors of that.

 

[macardi]

does anyone know when we might be debt free?

 

[Feis-al]

Agreed with everything Fuzz said and started this topic but just to show what the media thinks. Funny that all the press even the lousy sun has nothing but what we saw on thisislonmdon. We have not been in the Leads area and the stadium took so much. we still make profits and that should speak volumes of what the financial managers are doing. I have all the faith and whatever the press claims we missed, I'm happy with what we have.