Commercial Revenues - The Real Game Changer | Vital Football

Commercial Revenues - The Real Game Changer

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We are in a transition period where we are going from mid-tier compensation to the lower end of top-tier compensation. The younger players can transition with us. The older players need to maximize their earnings potential so they need to leave to do that. There will be those older players that want to stay for glory but they will be few and far between.

Daniel Levy is raising compensation levels right across the club as the club realizes more revenue.

My guess is that he has talked to the players about the project and asked them to go for the ride. It appears that a lot of them have agreed and in turn, he has delivered on the pay increases.

4 years ago our salary cap was 60K per week. That has long gone by the wayside.

The players should be paid, on a contribution to success basis, their fair share of the 55% (IIRC) of recurring revenues allocated to player salaries plus their bonuses derived from revenues from team and personal success.

And that is what we are doing.

To move to the top of the top tier we will need to increase commercial revenues to the levels, and beyond, of the teams above us in this measurement.

Commercial revenues are a popularity contest.

There is only one way to become more popular than the other teams.

Winning.
 
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Good post even if you wrote most of it twice.

I don't think it's just winning that raises your commercial profile though. It's winning with style which I think we do regularly. There was a complaint that post Bale we didn't have players that got you off your seat, I think Eriksen, Son, Dele, Dembele and Kane all do so. Lucas has the potential to add to that.
 
The most salient point is that the new stadium is not the ultimate panacea for our ability to compete at the very top sustainably.

The stadium is the next step.

Manchester United's mobile/digital marketing is growing at a decent rate. While it is only around 12 million pounds it is growing. It is this area, merchandising and sponsorships that will make the real difference. All driven by winning. I agree style helps. But sponsors will pay to be associated with winners.

There is the Pochettino factor though. He represents solid ethical and philosophically sound behaviour. That has some real value as well. But it is tied to an individual. Something that makes a business brand vulnerable.
 
true. Wonder how long his new contract offer will be for. I'd offer him a long contract with major bonuses tied to commercial growth. He's the most important part of the project for me, more than Kane or Levy
 
true. Wonder how long his new contract offer will be for. I'd offer him a long contract with major bonuses tied to commercial growth. He's the most important part of the project for me, more than Kane or Levy


I'd put Levy and Pochettinoon on equal footing now. But only if they are a team. Financial acumen plus an excellent operating culture is a beautiful thing in business.....any business. The two of them together provide this.

But there is no doubt, Levy needs Pochettino more than Pochettino needs Levy.
 
We are in a transition period where we are going from mid-tier compensation to the lower end of top-tier compensation. The younger players can transition with us. The older players need to maximize their earnings potential so they need to leave to do that. There will be those older players that want to stay for glory but they will be few and far between.

Daniel Levy is raising compensation levels right across the club as the club realizes more revenue.

My guess is that he has talked to the players about the project and asked them to go for the ride. It appears that a lot of them have agreed and in turn, he has delivered on the pay increases.

4 years ago our salary cap was 60K per week. That has long gone by the wayside.

The players should be paid, on a contribution to success basis, their fair share of the 55% (IIRC) of recurring revenues allocated to player salaries plus their bonuses derived from revenues from team and personal success.

And that is what we are doing.

To move to the top of the top tier we will need to increase commercial revenues to the levels, and beyond, of the teams above us in this measurement.

Commercial revenues are a popularity contest.

There is only one way to become more popular than the other teams.

Winning.

As you will know; I've long predicted how we would progress through closing the financial gap and the new incremental revenues will be used.

So far, I have been exactly right.

I have one correction though; we NEVER operated a pay cap and still don't, what we do have is an overall relationship between revenues and player payments - this relationship was 50-55% of revenues.

It was then, just as it is now to far exceed your base contracted payments by the performance related elements - these are now kicking in, so much so, it enable Levy to effectively boast how well they are working - based on my own analysis the bonus pool last financial year escalated to around £30-40 mill and allowed the regular first team players to bank very sizable bonus's.

I fully expect this to be even bigger at the end of this financial year, and escalating beyond that as newer revenues kick in (most especially the new and exciting commercial deals that are beginning to be struck - including of course the 'big' one!'_.

I would urge one word of caution, yes winning helps commercial revenues, but it's actually not the be all and end all - individual player associations and profiles is, believe it or not worth more to key large sponsors than cup wins....and there are a lot of reason behind that which I could fill pages of stuff here on, but won't as it is all pretty obvious.

Our future success beyond 2020 will now be heavily dependent on the long term mezzanine finance(s) that are being finalized now, which I personally believe will leave a significant and very healthy transfer and payments war chest for future seasons...
 
I'd put Levy and Pochettinoon on equal footing now. But only if they are a team. Financial acumen plus an excellent operating culture is a beautiful thing in business.....any business. The two of them together provide this.

But there is no doubt, Levy needs Pochettino more than Pochettino needs Levy.

Just don't forget that for the vast majority of managers, the sack is the ultimate destination.

I still do not expect that to be any different with Poch.
 
BL - We are moving in a positive direction.

I like it! The future looks bright
 
Just don't forget that for the vast majority of managers, the sack is the ultimate destination.

I still do not expect that to be any different with Poch.

You've been underestimating MP all along.
As you will know; I've long predicted how we would progress through closing the financial gap and the new incremental revenues will be used.

So far, I have been exactly right.

I have one correction though; we NEVER operated a pay cap and still don't, what we do have is an overall relationship between revenues and player payments - this relationship was 50-55% of revenues.

It was then, just as it is now to far exceed your base contracted payments by the performance related elements - these are now kicking in, so much so, it enable Levy to effectively boast how well they are working - based on my own analysis the bonus pool last financial year escalated to around £30-40 mill and allowed the regular first team players to bank very sizable bonus's.

I fully expect this to be even bigger at the end of this financial year, and escalating beyond that as newer revenues kick in (most especially the new and exciting commercial deals that are beginning to be struck - including of course the 'big' one!'_.

I would urge one word of caution, yes winning helps commercial revenues, but it's actually not the be all and end all - individual player associations and profiles is, believe it or not worth more to key large sponsors than cup wins....and there are a lot of reason behind that which I could fill pages of stuff here on, but won't as it is all pretty obvious.

Our future success beyond 2020 will now be heavily dependent on the long term mezzanine finance(s) that are being finalized now, which I personally believe will leave a significant and very healthy transfer and payments war chest for future seasons...


We went from 100 million to 126 million in compensation, year over year. We are currently sitting at 41% of revenues as compensation.
 
You've been underestimating MP all along.



We went from 100 million to 126 million in compensation, year over year. We are currently sitting at 41% of revenues as compensation.

That doesn't show the full year effect of bonus's (next financial year) and in season contract rises - of which there were 12.
 
That doesn't show the full year effect of bonus's (next financial year) and in season contract rises - of which there were 12.

Thank you. :thumbup:

Is that in the financials? I only browsed them. I was looking for a breakdown of executive compensation so I could defend Levy. :slap:
 
Thank you. :thumbup:

Is that in the financials? I only browsed them. I was looking for a breakdown of executive compensation so I could defend Levy. :slap:

It's not in the notes, but I had well know football financial analyst who works at one of the big agents to give me a heads up on how it all breaks down...
 
Ultimately, it's the THFC brand that drive commercial revenues. The brand of football we play, the image of the manager and players, the vision of the club we are painting through the media with the new stadium etc. Obviously, winning trophies is a great way to promote the brand. Even if you are a kid that starts supporting Spurs because they love Harry Kane, that is still our brand working.

Co-branding is also important. Our previous Under Armour deal was £50m over 5 years. Our new Nike deal is 3 times that. Our AIA deal is worth £16m per annum, but when you consider Chevrolet give Utd £53m a year that shows the gulf between the 2 clubs brands. We have to convince these companies that our brand is worth them investing in and it will give them a good return on their marketing dollars.
 
An area we really need to push on with. Hopefully the stadium will help but we need to keep our best players to really move up the rankings.

Big names help.

Have the chavs slipped?