Kieran Maguire is a football finance expert in the University of Liverpool’s Management School
The judgement in favour of Liverpool means that they are free to sign a kit manufacturing deal with Nike. Whilst the up front fee from Nike, at £30m, is noticeably lower than that of other clubs such as Manchester United (£75m) and Chelsea (£60m) Liverpool will earn 20% on each sale compared to an industry standard of 7.5%. We estimate that the club will be better off financially under the Nike terms if merchandise sales are £240 million a year or more.
Liverpool feel that Nike’s greater marketing spend, number of shops and connections with existing global stars such as Drake, LeBron James and Serena Williams will help the club sell more shirts in global markets compared to the terms offered by New Balance.
The fact that the judge only ruled that 20% of Liverpool’s £1/2 million legal fees for the case should be borne by New Balance suggests that the Boston based manufacturer’s case was not a frivolous one, but Nike’s greater share of the sport and leisurewear market as well as its roster of celebrity endorsements was a critical factor.
All recent news
New VG&M exhibition: The Errant Muse
Being Human: The truths about Empire that museums don’t want to tell you
Planned Industrial Action
Take part in our IT survey for your chance to win an iPad Mini
Study launched to identify early warning signs of deterioration in children
Liverpool students join the bill with global star Tom Walker, as UK Music launch major new report on the music industry.
Read more here: http://bit.ly/374kv6A
#MAP #TalentPipeline #MusicByNumbers
Big congrats to Dr Hay Wong for scooping two awards at last night's IET Innovation Awards ceremony @livunieng
The results of this four-year vaccine trial supported by our equine vets have thrown up new information to help scientists gain a better understanding of the condition. Read more in @horseandhound