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Jersey Contracts


kmccarthy27

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I had a question that I could not find anywhere and thought that someone here might know. When a sports league signs a deal with a company how exactly does the deal work? My question is with MLS really. They signed a deal with Adidas for uniforms and such, what does Adidas do and what does the team do? I know Adidas designs the uniform for the team but does the club buy the uniforms from Adidas or does Adidas give the clubs them, or do they get an initial allotment and any after the club has to buy them. I understand they make money when teams or Dick's buys the replicas for their stores or stadium stands but how are they making any more money.

I used an MLS example but I think the question goes with NBA, NHL, NFL, etc....

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I am not sure but i think that the teams get their jerseys for free and then the company gets a portion of the money from jersey sales to the public. For your MLS example think of how many jerseys adidas makes for the teams and the small cost of those jerseys versus the amount of jerseys sold in stores. This huge difference makes it so that the cost of the jerseys for the teams is not even an issue. Companies like adidas, reebok and majestic sign these contracts not for the money to sell the jerseys to the teams but for the rights to exclusively make the jerseys to sell to the public. Think of all the people you see wearing NFL jerseys and assuming that those are all reebok jerseys at a minimum of $80 a piece (for adult replicas) reebok must make a good amount of money off of these sells. Hope this helps

-kcchiefsfan

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Thats interesting. I worked for the Washington Power (now Colorado Mammoth) when they were in the DC area and there was a jersey deal with the NLL (Projoy I believe) but they were very conservative when it came to that stuff. I know they reused jerseys when people left saying the could not afford to order more. I cannot see how ProJoy made money that way?

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I had a question that I could not find anywhere and thought that someone here might know. When a sports league signs a deal with a company how exactly does the deal work? My question is with MLS really. They signed a deal with Adidas for uniforms and such, what does Adidas do and what does the team do? I know Adidas designs the uniform for the team but does the club buy the uniforms from Adidas or does Adidas give the clubs them, or do they get an initial allotment and any after the club has to buy them. I understand they make money when teams or Dick's buys the replicas for their stores or stadium stands but how are they making any more money.

I used an MLS example but I think the question goes with NBA, NHL, NFL, etc....

Don't know about the MLS, but the way it works (cliffs notes version) for MLB, NFL, NHL and NBA is that the leagues are paid an up front sum of cash by the company. The company then outfits the team in a certain amount of uniforms and other gear each season at no cost to the teams. Past that amount, the team would pay the wholesale price, but it's a fairly generous amount. I know people that have worked as teams reps for Reebok and Majestic and they very rarely had additional orders that were in excess of the initial allotment.

In exchange for outfitting the league and paying a huge fee, the manufacturer is allowed the exclusive right to sell branded apparel at retail. That's where they make all of their revenue on the big 4 sports.

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Thats interesting. I worked for the Washington Power (now Colorado Mammoth) when they were in the DC area and there was a jersey deal with the NLL (Projoy I believe) but they were very conservative when it came to that stuff. I know they reused jerseys when people left saying the could not afford to order more. I cannot see how ProJoy made money that way?

In the cases of minor league and non-major sports leagues, the teams buy almost all of their equipment, including uniforms. If a league has an exclusive deal, then they've probably arraigned a discounted price for the teams to order for in exchange for brand visibility.

For example, in Minor league Baseball, MLB would prefer that all teams use Majestic. MLB sees to it that all players in Spring Training are assigned a certain amount of Majestic parent club apparel (undershirts, jackets, fleece) and require all minor league teams to allow players to wear their parent club gear if they so desire. From there, the minor league teams are allowed to sign deals with anyone, and many do. Wilson has deals with a lot of minor league teams for uniforms. Nike's MLB contract allows for minor league teams to purchase branded gear at low cost for both game use and retail sales.

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Along the lines of what BRice16 said, I had a discussion on this same topic with someone on the board with knowledge of the MLB/Majestic relationship concerning COOLBASE sets and such. Every MLB team gets a set of uniforms for each jersey they wear in either COOLBASE or doubleknit as a part of the contract. If a team wants the jersey in both materials, they pay for the other set. So Houston gets 5 sets of jerseys from Majestic (3 different homes & 2 aways, with the brick away in COOLBASE only), while St. Louis gets 2 sets of jerseys (1 home, 1 away) and pays for the second set of each in the other material (several Cardinals only wear doubleknit, like Pujols).

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Along the lines of what BRice16 said, I had a discussion on this same topic with someone on the board with knowledge of the MLB/Majestic relationship concerning COOLBASE sets and such. Every MLB team gets a set of uniforms for each jersey they wear in either COOLBASE or doubleknit as a part of the contract. If a team wants the jersey in both materials, they pay for the other set. So Houston gets 5 sets of jerseys from Majestic (3 different homes & 2 aways, with the brick away in COOLBASE only), while St. Louis gets 2 sets of jerseys (1 home, 1 away) and pays for the second set of each in the other material (several Cardinals only wear doubleknit, like Pujols).

Unless something has changed very recently with the MLB contract, teams get 5 sets of game jerseys each year and choose how to spread that out. Most teams order two sets of white and one of the others.

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Along the lines of what BRice16 said, I had a discussion on this same topic with someone on the board with knowledge of the MLB/Majestic relationship concerning COOLBASE sets and such. Every MLB team gets a set of uniforms for each jersey they wear in either COOLBASE or doubleknit as a part of the contract. If a team wants the jersey in both materials, they pay for the other set. So Houston gets 5 sets of jerseys from Majestic (3 different homes & 2 aways, with the brick away in COOLBASE only), while St. Louis gets 2 sets of jerseys (1 home, 1 away) and pays for the second set of each in the other material (several Cardinals only wear doubleknit, like Pujols).

Unless something has changed very recently with the MLB contract, teams get 5 sets of game jerseys each year and choose how to spread that out. Most teams order two sets of white and one of the others.

From what I was told (and it could be wrong, I don't know anyone at Majestic), the whole one-set-of-each-jersey thing was part of the reason teams were going exclusively to COOLBASE. Some teams (Dodgers & Padres) didn't want to spend the money on a second set, so they went all COOLBASE all the time. Other teams are willing to pay for both (Red Sox & Cardinals). But this was all second-hand. Majestic wants everyone in COOLBASE but not everyone wants to do it (Yankees), so there is going to be holdouts.

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  • 3 months later...

FASCINATING bit on how the throwback promotions work with Majestic and a few insider details on the MLB Majestic contract in today's UniWatch:

Uni Watch - May 3, 2011

The article focuses on LA's faux-satin throwbacks and their local supplier. Teams don't have to do throwbacks with Majestic (known), but they get credit from Majestic for products, so that's why most teams do it.

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Along the lines of what BRice16 said, I had a discussion on this same topic with someone on the board with knowledge of the MLB/Majestic relationship concerning COOLBASE sets and such. Every MLB team gets a set of uniforms for each jersey they wear in either COOLBASE or doubleknit as a part of the contract. If a team wants the jersey in both materials, they pay for the other set. So Houston gets 5 sets of jerseys from Majestic (3 different homes & 2 aways, with the brick away in COOLBASE only), while St. Louis gets 2 sets of jerseys (1 home, 1 away) and pays for the second set of each in the other material (several Cardinals only wear doubleknit, like Pujols).

Unless something has changed very recently with the MLB contract, teams get 5 sets of game jerseys each year and choose how to spread that out. Most teams order two sets of white and one of the others.

From what I was told (and it could be wrong, I don't know anyone at Majestic), the whole one-set-of-each-jersey thing was part of the reason teams were going exclusively to COOLBASE. Some teams (Dodgers & Padres) didn't want to spend the money on a second set, so they went all COOLBASE all the time. Other teams are willing to pay for both (Red Sox & Cardinals). But this was all second-hand. Majestic wants everyone in COOLBASE but not everyone wants to do it (Yankees), so there is going to be holdouts.

It wouldn't make sense that a team like Houston would get 5 sets while STL would only get 2 sets. That would only encourage the more traditionally-minded teams to come up with minor variations of their home and road in order to get more sets provided to them. My guess would be that it is a flat number that the teams could choose how to deal with (like BRice said.) In fact, that may explain why teams like Houston cap themselves at 5 different jersey styles.

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Along the lines of what BRice16 said, I had a discussion on this same topic with someone on the board with knowledge of the MLB/Majestic relationship concerning COOLBASE sets and such. Every MLB team gets a set of uniforms for each jersey they wear in either COOLBASE or doubleknit as a part of the contract. If a team wants the jersey in both materials, they pay for the other set. So Houston gets 5 sets of jerseys from Majestic (3 different homes & 2 aways, with the brick away in COOLBASE only), while St. Louis gets 2 sets of jerseys (1 home, 1 away) and pays for the second set of each in the other material (several Cardinals only wear doubleknit, like Pujols).

Unless something has changed very recently with the MLB contract, teams get 5 sets of game jerseys each year and choose how to spread that out. Most teams order two sets of white and one of the others.

From what I was told (and it could be wrong, I don't know anyone at Majestic), the whole one-set-of-each-jersey thing was part of the reason teams were going exclusively to COOLBASE. Some teams (Dodgers & Padres) didn't want to spend the money on a second set, so they went all COOLBASE all the time. Other teams are willing to pay for both (Red Sox & Cardinals). But this was all second-hand. Majestic wants everyone in COOLBASE but not everyone wants to do it (Yankees), so there is going to be holdouts.

It wouldn't make sense that a team like Houston would get 5 sets while STL would only get 2 sets. That would only encourage the more traditionally-minded teams to come up with minor variations of their home and road in order to get more sets provided to them. My guess would be that it is a flat number that the teams could choose how to deal with (like BRice said.) In fact, that may explain why teams like Houston cap themselves at 5 different jersey styles.

From the Uni Watch article today (and the information that was out in the public before), it sounds like a team gets x sets of jerseys and credit to use with Majestic. So it's not likely that Houston or Oakland is necessarily getting "more" from Majestic than St. Louis or the Yankees would, since Houston getting 5 sets means the Yankees might only get 2-3 sets plus more credit. It probably balances out like that.

Majestic seems to be saying "OK, the most we could ever spend on a single team is Houston and their 5 sets, so we have that + a small credit be the amoutn of merchandise all teams get. You automatically get x sets of each jersey and your credit is spent however you want. That way Houston & the Yankees are spending the same amount with Majestic and the Astros don't get "rewarded" for having 5 sets.

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Along the lines of what BRice16 said, I had a discussion on this same topic with someone on the board with knowledge of the MLB/Majestic relationship concerning COOLBASE sets and such. Every MLB team gets a set of uniforms for each jersey they wear in either COOLBASE or doubleknit as a part of the contract. If a team wants the jersey in both materials, they pay for the other set. So Houston gets 5 sets of jerseys from Majestic (3 different homes & 2 aways, with the brick away in COOLBASE only), while St. Louis gets 2 sets of jerseys (1 home, 1 away) and pays for the second set of each in the other material (several Cardinals only wear doubleknit, like Pujols).

Unless something has changed very recently with the MLB contract, teams get 5 sets of game jerseys each year and choose how to spread that out. Most teams order two sets of white and one of the others.

From what I was told (and it could be wrong, I don't know anyone at Majestic), the whole one-set-of-each-jersey thing was part of the reason teams were going exclusively to COOLBASE. Some teams (Dodgers & Padres) didn't want to spend the money on a second set, so they went all COOLBASE all the time. Other teams are willing to pay for both (Red Sox & Cardinals). But this was all second-hand. Majestic wants everyone in COOLBASE but not everyone wants to do it (Yankees), so there is going to be holdouts.

It wouldn't make sense that a team like Houston would get 5 sets while STL would only get 2 sets. That would only encourage the more traditionally-minded teams to come up with minor variations of their home and road in order to get more sets provided to them. My guess would be that it is a flat number that the teams could choose how to deal with (like BRice said.) In fact, that may explain why teams like Houston cap themselves at 5 different jersey styles.

From the Uni Watch article today (and the information that was out in the public before), it sounds like a team gets x sets of jerseys and credit to use with Majestic. So it's not likely that Houston or Oakland is necessarily getting "more" from Majestic than St. Louis or the Yankees would, since Houston getting 5 sets means the Yankees might only get 2-3 sets plus more credit. It probably balances out like that.

Majestic seems to be saying "OK, the most we could ever spend on a single team is Houston and their 5 sets, so we have that + a small credit be the amoutn of merchandise all teams get. You automatically get x sets of each jersey and your credit is spent however you want. That way Houston & the Yankees are spending the same amount with Majestic and the Astros don't get "rewarded" for having 5 sets.

That makes sense.

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