Nike 320 million to overcome the fortress behind the huge price difference between the hidden hidden secret?

In 2008, French football was a good thing - not on the field but in business operations. Not long after the French professional league sold its franchise rights to 600 million euros, the French Football Association created a jersey sponsoring world record: 42.66 million euros a year! It was Nike that issued this quotation. From the top competitor Adidas, they grabbed the French team’s exclusive apparel supplier qualification from 2011 to 2018.

46.66 million euros, which is the price of an Airbus company's best-selling A320 passenger aircraft, and is also the annual budget of a French club like Toulouse. Converted to the French team jersey, it is calculated at a price of 70 euros and there are also 610,000. According to the French team's current sponsor Adidas statistics, even in the World Cup or the European Cup this year, the French team's jersey sales are only about 500,000.

There is no doubt that Nike has no reason to open such an astonishing price from a profit standpoint. After all, Umbro sponsors England and Adidas sponsors Spain at an annual cost of only about 20 million euros. Hummer sponsors world championship Italy at a cost of only 16.25 million euros. As for Nike's existing customers, the five-time world champion Brazil team received a sponsorship fee of only 1,200 US dollars and only 8 million euros. For these numbers, Nike is very clear. However, after competing with Adidas for the sponsorship of the German team, they too need to overwhelm their opponents in another big European country.

This is exactly what the French Football Association expects. Since the tender started on January 3, after a strict screening by the French Football Association's partner SPORTFIVE, only three companies have been short-listed. In addition to Nike's € 42.66 million a year, Adidas' offer is € 28.8 million, and the French domestic brand Airness is € 15 million. In the end, the French Football Confederation not only obtained one of the world’s highest esteems but also received one of the most advantageous payment treatments: The contract states that Nike will pay the French Football Association’s 40 million Euros before the 2011 New Year’s Day contract begins to be performed! After 40 years of cooperation with the French team, Adidas will have to give way to Nike from 2011. Nike's contract will continue from January 1, 2011 to the summer of 2018, the total length of 7 and a half years, a total of 320 million euros. If the French team can perform well in the contest, the amount will go up.

After the results were confirmed, Nike was very proud. The company's chairman Danson excitedly stated that the French team is one of the best teams in the world, so this partnership is the best combination. Adidas was left with a loss, and the company’s spokesperson said with regret: “We have provided the highest quotation within the intellectual scope, but the French Football Association has made a completely commercial choice. The world is not only the French team, even if In the French mainland, we still have the Marseilles club. Their sales of jerseys every season are similar to those of the French team."

Because of the huge cost, it is not so much a victory for Adidas as it is a victory for the French Football Association. After Ecclestone came to power, the French Football Association smoothed out the chaotic accounts, and with the proceeds from the relocation, it ended the year-to-year deficit situation and achieved its first profit in 2007. This time, the bidding for partners is also an important measure for Ecclestone to increase its revenue.