1200 as needed
It is basically impossible for ordinary teams to earn much profit from jersey sales. Their biggest income is the sponsorship fees given to them every year.
In addition to the team wearing jerseys to advertise these jersey sponsors and having varying exposure rates every week, the team also authorizes the team's team logo, player name, LOGO, number and other rights to the jersey sponsors.
But this is an ordinary team. At the level of the giants, jersey sales can make considerable or even huge profits.
Take Real Madrid as an example. After signing James Rodriguez, who was very successful in the 2014 World Cup, their agreement with the jersey sponsor was to receive a commission of 40% of sales. 48 hours after signing James Rodriguez, Real Madrid recovered 13 million euros from James Rodriguez's personal jersey sales!
When Situ Yunbing coached Liverpool, the agreement with the sponsor would be very complicated, so the commission ratio of different players was different. That is to say, the commission for selling Mbappe's jerseys could reach 50%, which was the agreement when he coached Liverpool in the last year of coaching. The commission for selling Kulibali's jerseys was only 15%, because the consumption capacity of the African market was not high, and Kulibali only represented an African country.
I guess Umbro did not expect Schalke 04 to sign a Chinese player, and he is a well-known star player among Chinese fans!
This makes Umbro very passive when developing and expanding the market, and their presence in the Chinese market is almost zero!
Especially jerseys are just a small part of sports brands, not all. Umbro has not yet figured out their own business strategies and brand styles.
Even so, the overseas shopping craze in China has enabled a large number of purchasing agents to directly stimulate the sales of jerseys from abroad!
But this is not the way to directly make the highest profit from the Chinese market.
Two years ago, with the rise of Spark Series in Chinese football, Situ Yunbing already has a jersey production line and independent brand!
From the Spark Youth Football Training Base to the club where Situ Yunbing invests in overseas, this jersey called Spark Sports has already started the deployment and promotion of the global strategy.
Instead of spending money, they formed a complete business chain with the resources they own.
Last year, with the opening of the Youth National Competition, the jersey sponsors of all participating teams were Spark Sports. After the World Cup, the sponsorship brand of the Chinese national team also became Spark Sports. In the new season of the 2019 Chinese Super League, the jersey sponsors of all teams were Spark Sports!
It can be said that Xinghuo Sports has developed very rapidly in the past two years, and it is also rapidly seizing the Chinese market, so that it will not flow to outsiders.
Now Schalke 04 wants to earn more money from the Chinese market, Situ Yunbing doesn’t think there is any problem. After all, wealthy families around the world have been constantly developing and exploring the Chinese market since 20 years ago!
However, to ensure the interests of Situ Yunbing himself, fans and consumers, and Schalke 04, Situ Yunbing needs to think of a solution.
He took Siglid and two children to travel in Germany for two days, and then came to the office of Schalke 04 with his plan.
Tunis has begun to formulate a reform plan, and also hopes that Situ Yunbing can come up with effective solutions so that their financial resources can be achieved immediately!
When Situ Yunbing sat on the sofa in his office, Toonis went to pour tea for him himself.
Situ Yunbing handed his plan to Toonis, who picked it up and read it carefully.
As he looked, his brows frowned.
"Schalke 04 wants to ensure the main position of Chinese players in the team?"
Situ Yunbing took a sip of tea and tasted it. The fragrance was fragrant, but it lacked a little aftertaste.
He said for granted: "Yes, I don't want the Chinese market to pay for capital, and I don't want Chinese players to be just money trees. Cooperation belongs to both parties and cannot guarantee the main position, so the cooperation will be terminated."
Tunis then looked down, frowning deeper.
"You want us to be tough on Umbro and ask for a new agreement?"
Situ Yunbing shrugged and said, "This is related to Schalke 04's interests. You can't wait for money to fall from the sky, right?
Moreover, the premise for bringing benefits to Schalke 04 is that you must increase the income share of Bai Yuanfan's jersey. Isn't that right?
I will increase sales, and Umbro will give you profits. At the same time, I will advertise Umbro in the Chinese market. Shouldn’t I ask for costs?
This is the reallocation of interests, right?"
After thinking about it, Tounis decided to try it. Moreover, Situ Yunbing's idea is completely fine. Whether Umbro wants to create higher income or conduct marketing promotion, they are likely to accept this new agreement.
Two days later, the tripartite talks.
In Tunis' office, Situ Yunbing met the marketing director of Umbro's German market. He had absolute power to manage everything about the German market.
After introducing each other, the three of them sat down and started negotiations. After hearing the Umbro representative Charles said that he would modify the income sharing requirement of Bai Yuanfan's jersey, he smiled and shook his head.
"Mr. Chairman, you only see that Bai Yuanfan's jersey sales have far surpassed other Schalke 04 players in the past six months. You think Schalke 04 club is at a loss, but have you ever thought about our interests?
Schalke 04's record this season, let's not consider the most pessimistic ending. Schalke 04 will not be relegated, but it will definitely not appear in the European arena next season. We should have a consensus on this. How much do you think we have lost because of your team's poor record?
How should we make up for our losses?”
Toonis was speechless, and Situ Yunbing spoke at this time.
"Charles, I think you misunderstood the goal of this negotiation. I think this negotiation is not that you both are trying to squeeze each other's profits, but that we three parties jointly create more profits!
This is a talk that can bring more benefits to all three parties."
Charles, a middle-aged British man in Scenic, smiled at Situ Yunbing and said, "I hope to hear it clearly."
Situ Yunbing said: "What we are sure is that Bai Yuanfan's jersey sales are brought up by Chinese fans. There are many professional purchasing agents here, including overseas Chinese fans, but Umbro did not directly obtain beyond imagination in mainland China.
I can calculate the calculations for you now. Bai Yuanfan's jersey income was only 10% given to Schalke 04 Club, which means that a 49 euro jersey was only given to Schalke 04.
I deducted the cost of Imba from production to sales and calculated it at 25%, which means that Imba's own profit is 65%.
If Umbro increases Schalke 04's share to 25%, and then passes the cost to me, you only need to authorize me and collect money, and you can get 25% of the jersey income.
At the same time, you will get brand promotion in the Chinese market.
The remaining 50% belongs to me, but I bear the production and sales costs of the jerseys.
According to the calculation just now, I have 25% of my income.
Maybe you think the loss of 40% of the gains given up is huge, but my sales network in mainland China can increase sales by 10 times or 20 times?"
Charles began to think seriously when he heard this, and at this time Toonis made up a knife.
"If Umbro does not agree to this plan, we can terminate the contract early, or wait until the contract expires and Schalke 04 cooperates with Spark Sports again. What we need is a long-term partner that can maximize the club's benefits. Obviously, we have the opportunity to increase our revenue now, but Umbro's share in the Chinese market simply does not exist."
Charles ignored Toonis. Of course he knew that Schalke 04 was in a financial crisis. In order to prevent the club from going bankrupt, the chairman was already a little anxious.
He said to Situ Yunbing: "I don't think this is just a simple matter of authorization. You must know that our brand has excellent craftsmanship and excellent quality assurance. If the market is full of products with our trademark but poor quality, it will have a fatal blow to our brand!"
Situ Yunbing smiled and said, "I don't think there is any need to worry about this. Since I dare to authorize the production, I can guarantee the quality and process level. If we can finalize the cooperation plan, you will definitely need to check the quality of the sample before the product is launched."
Perhaps China’s counterfeit goods were indeed world-famous ten years ago, and shoddy fakes were everywhere at that time, but today is different.
China's ability to counterfeit is no longer just to use fakes to make real, but is better than genuine products, and the quality of authentic products!
It is not easy for Charles to continue discussing this issue after hearing Situ Yunbing say this. It is meaningless. No matter what, Situ Yunbing still has to sell his face.
Especially when he just led the Chinese team to win the Asian Cup championship, Situ Yunbing's influence in Chinese football is unprecedented!
The reputation has reached its peak. If Situ Yunbing takes over the banner, Umbro does have room for imaginable in the Chinese market.
But this plan requires him to report to the headquarters and decide by Umbro headquarters. After all, this is not just a matter of the German market, but involves the Asian market.
The three parties then bargained, which was nothing more than a matter of the proportion of interest distribution.
In the end, Schalke 04 club took a step back and gave up 2% of its share to Umbro. Not only did Situ Yunbing not give in, he also stated that he would lower the price of the jersey in the Chinese market. In the European 49 euros, the jersey will only be sold for RMB 299 in the Chinese market.
Charles did not agree at first, but in the end, Situ Yunbing said that he would compete with Nike and Adidas, and he would have a genuine jersey, 399,499,599. If he sells it for the same price, how can he compete?
The Chinese fans have a huge market. If he wants to expand the market, he must have an advantage in price!
Chapter completed!