Today Celtic launched their new kit.
The contract with ADIDAS is the most lucrative in the history of Scottish football.
This morning I spoke with a well-placeD source who said that the kit deal with the German giant combined the JD Sports contract puts Celtic on another level.
However, do not expect to see that narrative in the mainstream media.
My guy has a granular understanding of the finances at Parkhead, and he estimated the value to be £65m-£70m over the lifetime of both deals.
Add to that the money-spinning shirt sponsors like Dafabet.
Consequently, the very idea that any club in Scotland can compete with Celtic on or off the field is utterly risible.
However, that is not the whole story.
As regular readers here will know the Sevco shitshow has regularly been played out in courtrooms since the klub was set up in 2012.
That is especially true of their arrangements with Sports Direct (SDIR).
Here are some inconvenient facts:
The contract agreed in 2017 between SDIR and TRFC appears to give SDIR EXCLUSIVE retail rights and the rights to match any manufacturing deal that TRFC can negotiate with anyone.
There’s that word again- EXCLUSIVE.
The very one that Sports Direct used on their Facebook page last week apropos Sevco’s new Castore gear.
It is the opinion of the folks in Shirebrook that TRFC did not send SDIR the details of the Hummel/Elite deals within stipulated periods.
Moreover, they did not arrange for the strips to be delivered to or made available to SDIR, and so TRFC are in breach of the 2017 contract.
Consequently, they will continue to be in breach of contract if any new deal with Castore is not sold through SDIR.
It would appear that no one else can sell any strips without the consent of SDIR.
The Stenographers were all over the story that TRFC had done a new deal with Castore which would make them many millions over the next five years and were quick to champion that there was now no deal involving SDIR as that had finished.
An inconvenient fact is that the headline figure includes the unlikely assumption that Sevco actually wins a piece of major silverware.
I know, I know…
£3.5m per annum is a much more likely figure.
However, the Castore chap had to admit in an interview to a Sevco blog that SDIR had some retail rights and that this was normal.
The SDIR Facebook page last week (July 1st) stated that the Castore strips would be available exclusively through SDIR and no one else – contrary to what the stenographers were saying and what the Castore chap was saying.
“New Rangers Kit lands exclusively at Sports Direct August 1st.”
My guy at Shirebrook told me that sometimes it is necessary to remind everyone involved who is boss and who holds the rights here.
That was how he characterised the Facebook post.
For the avoidance of doubt, General Ashley seems to be very much in court with TRFC at the current time – he has not gone away and appears to be holding all the cards.
Therefore, it is reasonable to assume that his legal team have been in touch with both Castore and TRFC and has read the riot act to both of them.
There is now no mention of Castore branded strips on the Castore website nor are there any images of Castore branded strips on the official Rangers website for their megastore.
In April 2020 SDIR alleged that TRFC are in breach of contract and if they enter into any other contract which does not accurately reflect the terms of the deal with SDIR then they do so at their own risk.
The Annual Income Statement produced by SDIR and sent to TRFC showed that over the period June 21st 2017 to June 30th 2018 the SD Online Net Profits and SD Store Net Profits were negative numbers (i.e. showed losses). The Retail Operations at the Rangers Megastore and the Rangers Webstore had also made losses.
The only payment due to TRFC between June 21st 2017 and June 30th 2018 was in respect of Kit Royalties, and that amounted to £474,026.87 (plus VAT) – a further payment of £92,405 was due, but TRFC never invoiced for this number, and in any event, it is being withheld due to TRFC’s putative breach of contract.
Meantime the ADIDAS website appears to have crashed such is the demand for a certain strip that they are producing for the first time – but they have had to pay millions of pounds per year for the privilege of manufacturing that of course.
To compare the commercial activities of both Glasgow clubs is to observe a cruel spectacle.
Indeed, second best is the pinnacle of Sevco’s ambition.
Yeh! Go to the Celtic game with your new 2020/.21 kit jersey on. And encourage the youngsters in front of you to take up gambling via your endorsement of “Dafabet” and encourage any youngsters behind you to take up drinking alcoholic beverages through your endorsement of “Magners”. Now, there’s a “Good Day Out”. Yeh. Must be good, eh? Why not?
What would Brother Wilfred and other’s in Celtic’s history think of having a betting firm emblazoned across the famous hoops🤔
My own reading of this shambles is that it was done to sell season tickets and nothing else so, looking at it this way, it was a success. For a minute it appeared the twins, Castor and Bollux (sic) were flying.
Congratulations to Celtic on their link up with adidas. A superlative club and a superlative sportswear Company. Global brands complimenting each other.
I expect SEVCO to go into Administration rather than burden themselves with SDI forever. It’s their only way out.
Of course it will be a first time Administration and treated as such. I expect a new Clumpany to emerge with new badges and brands as SDI own the originals.
Celtic really must get into the Champions League this year. Adidas would like the exposure. CFC haven’t got in for the last two seasons and a third would be poor show. We get knocked out by clubs a fraction of our value. Athens ffs.
Sporrs Direct have the right to match any agreenent that Rangers can make with other suplliers. Is there a time limit to this or can they only buy their way out?
NEVER did actually “get” the whole adults-wearing-football-strips thing. Football strips used to be for kids, so they could play with their pals and pretend to be their club’s hero.
I’m not sure when the “wearing a strip to the match” actually started. Mid to late 1970’s, maybe early 80’s, I’d guess. I have no memories of seeing strips at matches before that.
Merchandise started being advertised on tv and in press with adults wearing it. The power of advertising changing behaviors.
The Tartan Army always wore Scotland shirts for as long as I can remember. Ditto Scotland Rugby punters. Now there’s two institutions that have always brought Catholics and Protestants, Celtic and Rangers fans together. Probably to the frustration and anger of The loony extremes.
Hi Phil,
its been a while…keep up the good work.
It certainly is very fishy that both Castore and the rangers have pulled the ‘new.’ kit from the respective websites…I wonder if the gullibillies who pre-ordered and parted with cash will ever receive a shirt – at the very least they are paying SDI’s QC fee’s.
keep digging please Phil – no other ‘Journo* in Scotland has the guts..
Br,
Allan
Many thanks Allan
If Mike Ashley truly has exclusivity then I’d expect one of three things to happen. 1. Castore forward all orders to SDI/HOF for fulfillment. 2. Castore fulfill the orders and square up Big Mike for his losses and inconvenience. 3. They cancel all orders received and advise all punters of their inability to fulfill. I would have thought 3 very unlikely as Sevco wouldn’t want that so probably option 2 is more likely. There is of course the just carry on and ignore SDI/HOF option. However if they take that route and the exclusivity is valid then they’ll undoubtedly face another court date with the usual results. Plus CA change ……..
Hi Phil, I thoroughly enjoy reading about the ongoing trainwreck that is Sevco! However, do you have any idea when it will be announced how much they owe SDI, and what is taking the judge so long to decide? I smell a rat TBH!
Call me miserable, but
I won’t be forking out £60 for a top which is;
– synthetic and mass produced
– emblazoned with adverts for a sportswear company and a betting company
– massively overpriced, as it must cost about £5 to produce?
CFC, of course, is no different to any other club in this regard.
Doesn’t make it right though…
Shirt is also available without any advertising
How much more does it cost if you request the removal of all the advertising? I know it costs you more in Burger King if you just want a plain burger without all the shi-ite. Burgers how you want them – aye.
Bob. You are 100 percent correct. If my memory serves me right, there was a programme a few years ago that investigated this whole sector of the footballing industry. And they found exactly that, it costs around a fiver to produce a whole strip, and the markup was outrageous. Something like 500 percent! When my club was my club and football was for us and not the money men, I used to buy a new strip diligently every time they came out, be it an away one or the good olé hoops. But after seeing that programme and watching the slimming down of our squads and the cutting back on the quality season after season in the last 15 years and realising where my hard earned is truly going it makes me baulk at even thinking of buying a strip now. Another part of the football industry where we need to take a stand!
Some people are living in cloud cuckoo land, have you not been watching how professional football has commercially evolved over the last 30 years, Bosman, TV contracts, advertising, agents, hospitality, etc. However distasteful I find this
I decided that this is the world we live in and if Celtic are to be successful we just have to accept these facts, the alternatives being either follow Junior football or give up on professional sport completely. I myself decided to park my principles and watch my team Celtic being the best team in Scotland whilst not being able to compete financially with teams in the top 5 leagues in Europe,
The reason for this being, the size of a countries population = value of TV contract and nothing to do with PL or DD who in my opinion manage the business side of the club pretty well. We just have to look over to the other side of the city to realise what can go wrong if you don’t get the finances right and overstretch yourself.
Michael – please forward your comments to Gamblers Anonymous or the thousands of families of gambling addicts.
Celtic have always been proud of their roots of being more than just a football club.
They currently have an enormous financial advantage over all other Scottish clubs – no better time to show leadership on such issues as others such as Barcelona have done.
“The Cardigan” declared Sevco to be a new club and wished them well in the future and then was “encouraged” to come on board, literally, for the sale of season tickets one year to give them credence, resigning when it ended. “Swally” has also shown utter contempt for the fans but it makes you wonder about how much the likes of John Grieg can stomach to see his old club’s name ( I know) get trashed day in day out. It is constant.
Cardigan and Swally made millions out of RFC for the many years they were there. They never put a penny in, always got paid money out. Both got serious lolly from SEVCO too. Never put a penny in.
I’m sure it was reported Cardigan had an EBT.
Oh deary me. TRFC: the LOL in LOyaL.
Poor old NEWCO…2nd or 3rd best again …so back in old penilee that.s CASTORE
You sound like the… err… FONT of all knowledge on this matter…