Bluedell 5,679 Posted June 21, 2017 Share Posted June 21, 2017 It gave us £18 million up front to reduce our debt (released at £1.8m per year to the accounts) and also saved interest on the debt at the time and a guaranteed £3m per season which was more or less the same as "In the 11 seasons prior to the JJB deal, we only ever made £3m or more clear profit from retail on one occasion." (from another web site, so not sure if accurate). There was a great deal of angst over the closure of the shops and job losses and my view at the time was that we were sacrificing future profit potential for the upfront payment. My recollection is that we never got much more than the £3m but am happy to be corrected. Yes, we got £18m upfront, although around £3.5m was used up in closure costs, but even so that's a fantastic piece of business and had the added benefit of significantly reducing the interest payments (by 600K?), as you point out. Yes, we then got a guaranteed £3m (and we never made more than that as far as I'm aware), which again was a great piece of business. So overall the deal was worth around £5m per annum to us. I don't believe that we ever made near that prior to that, although the full information is not available. For example I said the following to TB 9 years ago when discussing the deal "In 2003 accounts Nick Peel said we were 2nd in the UK with a turnover of £19.2m. What sort of net profit did we make on that? 15%-18%? Would that be normal for a retail business? Perhaps less as we don't have great economies of scale? And that was a good year. The prior year was £11.8m Still appears to be far less than we are currently making." The JJB deal was a great deal financially and took the risk away from the club. There were downsides to it but financially it made total sense. 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,679 Posted June 21, 2017 Share Posted June 21, 2017 Rangers to keep last season’s home kit for new campaign Rangers will keep their 2016/17 home strips for the new season after agreeing a fresh commercial deal with Sports Direct. The club will unveil new change kits for the 2017/18 campaign, but have decided to stick with last year’s design after supporters were once again encouraged to buy club merchandise. Read more at: http://www.scotsman.com/sport/football/teams/rangers/rangers-to-keep-last-season-s-home-kit-for-new-campaign-1-4482627 That's crap. This season, of all seasons would be the ideal time for a new strip. Are they just using up old stock? 0 Quote Link to post Share on other sites More sharing options...
BrahimHemdani 1 Posted June 21, 2017 Share Posted June 21, 2017 (edited) Yes, we got £18m upfront, although around £3.5m was used up in closure costs, but even so that's a fantastic piece of business and had the added benefit of significantly reducing the interest payments (by 600K?), as you point out. Yes, we then got a guaranteed £3m (and we never made more than that as far as I'm aware), which again was a great piece of business. So overall the deal was worth around £5m per annum to us. I don't believe that we ever made near that prior to that, although the full information is not available. For example I said the following to TB 9 years ago when discussing the deal "In 2003 accounts Nick Peel said we were 2nd in the UK with a turnover of £19.2m. What sort of net profit did we make on that? 15%-18%? Would that be normal for a retail business? Perhaps less as we don't have great economies of scale? And that was a good year. The prior year was £11.8m Still appears to be far less than we are currently making." The JJB deal was a great deal financially and took the risk away from the club. There were downsides to it but financially it made total sense. In retrospect it may have been a better deal than it looked at the time. The downsides were that we lost control of retail operations and at least some part of future profit growth but the upside was debt reduction which I agree was important. As I recall now it meant that we were the only major UK (or wider) club who did not sell their own strips and I think that was something that concerned me at the time. However, with the benefit of hindsight, it may indeed have been a good decision. It will be very interesting to see how much profit we make this season and under any new deal. Heavy hints at the beginning of the presser that we may well do a new deal with SD, certainly not ruled out. Edited June 21, 2017 by BrahimHemdani 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,679 Posted June 21, 2017 Share Posted June 21, 2017 0 Quote Link to post Share on other sites More sharing options...
BrahimHemdani 1 Posted June 21, 2017 Share Posted June 21, 2017 That's crap. This season, of all seasons would be the ideal time for a new strip. Are they just using up old stock? Deal was done too late to register a new strip and not clear if it had even been discussed. No doubt that SD are sitting on large stocks and that would have been a loss Rangers would have had to underwrite if they had changed strip for next season. 0 Quote Link to post Share on other sites More sharing options...
MacK1950 2,399 Posted June 21, 2017 Share Posted June 21, 2017 Strip had to be registered with EUFA so even if deal had been done it waould have been too late to design new strip,but seems away strips and third strips are to be issued with new design. 0 Quote Link to post Share on other sites More sharing options...
StuGers 477 Posted June 21, 2017 Share Posted June 21, 2017 Apparently 75%/25% on the PROFITS of megastore and online and 50/50 in the other SD shops, SD will get all their costs e.g. rent and staff (they will have a selling cost worked out per item or pro rata in their accounts or some such method of calculation) paid first, which is not unreasonable. Much appreciated. 0 Quote Link to post Share on other sites More sharing options...
pete 2,499 Posted June 21, 2017 Share Posted June 21, 2017 Glasgow airport shops are nothing more than a waste of space , they cost a fortune and make hardly any money , would be sad to see us back there to be honest , and I work for the airport The Airport is just a publicity stunt. 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,679 Posted June 21, 2017 Share Posted June 21, 2017 Strip had to be registered with EUFA so even if deal had been done it waould have been too late to design new strip,but seems away strips and third strips are to be issued with new design. So how were they able to register a new second and third strip but not a first strip? 0 Quote Link to post Share on other sites More sharing options...
RANGERRAB 3,732 Posted June 21, 2017 Share Posted June 21, 2017 Welcome though today's news is I think it needs to be remembered we still might not be getting what we might expect from both PUMA & 32RED. In comparison to other clubs that is. AFAIK PUMA is in its final year and it will be interesting to see what happens there. Does today's news now mean Rangers can deal direct with PUMA? Or a new supplier when the PUMA deal runs out? I was very surprised, I have to say, to see the 32RED deal getting extended. 0 Quote Link to post Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.