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Discussion Starter #1
from the official site:


Exclusive! £48m Deal With JJB
RANGERS Football Club announced today that it has agreed to grant a 10-year licence agreement with JJB Sports worth a minimum of £48 million to the Club.

The Club will receive an initial payment of £18 million and a guaranteed minimum annual royalty of £3 million in each year of the licence.

The licence will allow JJB Sports to retail all Rangers branded sports and leisurewear and ancillary branded products throughout their substantial retail network of 439 stores within the UK.

Rangers will now enter into a period of consultation with the affected staff.

The retail network of JJB Sports provides a significant opportunity to increase the availability of Rangers product. JJB Sports will also be able to capitalise on its buying power and supplier relationships for the benefit of supporters and customers.

Consistent with the Club's current policy and focus in retail operations over the last few years, the licence arrangement with JJB Sports will safeguard the quality and range of Rangers product and provide greater availability both within the UK and internationally.

The initial payment of £18million will be received on June 7, 2006, the day the Club launches its new Umbro manufactured home kit for season 2006/2007.

The guaranteed minimum royalty of £3million is payable annually in each year of the ten-year licence period. Additional payments will also become payable to the Club when certain thresholds of Rangers product related turnover are achieved by JJB Sports.

Chairman David Murray commented: "This innovative licence agreement will allow for the reduction of the Club's debt and enable further investment to be made in the team and the Club's facilities going forward.

"The arrangement capitalises on our strong current retail trading position and will enhance future revenue streams through greater availability and continuity of the quality and range of Rangers product."



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They've got a cheek to call it an exclusive as James de Bear had this news weeks ago :)

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Have to say i have some misgivings about this - our retail side of things is only 2nd to Man Utd in the UK so obviously we're doing something right. I'd feel alot more comfortable if Nick Peel was still in his position as he really knew how to run a successful commercial operation, i'm still to be convinced Bain and co do....at least its "only" a 10 year deal, if it's successful we can do the same again, if it's not then we can bring it back in house again.

And reports that there could be up to 250 job losses, that's sad to hear. These are just normal people trying to earn a living . But then thats modern football for you, agents and players get fat off the riches and are in effect bleeding the game dry - everyone else pays for it. :(
 

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Teddy Bear said:
They've got a cheek to call it an exclusive as James de Bear had this news weeks ago :)
Totally agree. Great call there James, and I'll be the first to admit I was a tad sceptical about the info when you made it available. Kudos to you Sir.

Teddy Bear said:
Have to say i have some misgivings about this - our retail side of things is only 2nd to Man Utd in the UK so obviously we're doing something right. I'd feel alot more comfortable if Nick Peel was still in his position as he really knew how to run a successful commercial operation, i'm still to be convinced Bain and co do....at least its "only" a 10 year deal, if it's successful we can do the same again, if it's not then we can bring it back in house again.

And reports that there could be up to 250 job losses, that's sad to hear. These are just normal people trying to earn a living . But then thats modern football for you, agents and players get fat off the riches and are in effect bleeding the game dry - everyone else pays for it. :(
Modern capitalism I'm afraid TB. Without getting into the political right and wrongs (which believe me I could rant all night about, quite literally) people just don't count when these business decisions are made.

But nevertheless I won't make any pretences, this appears to be pretty good news for the club.

If this is to be Le Guen's war chest as expected, then let us move on into the new era :thumbsup:
 

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I'd want some more details before I make my mind up completely, but on the face of it it looks like a good deal for the club. Now all we need is the announcement we've all been waiting for...

And JdB, we'll be relying on you for all the insider info. from now on ;)
 

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Cheers folks, only happy to pass on any info I have and hopefully it's not all nonsense :)

The main thing about the deal is we will have a lump sum of cash this summer for the new manager to spend. This is the main thing and we'll only learn in due course how it will all fold out like will our stores shut or remain open but under the JJB name or will we have to go to a JJB store to buy anything Rangers branded.

I had to laugh when I looked at the back pages as they have us being linked with 3 french based players already.
 

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Discussion Starter #5
do you know if we are keeping the superstore at the stadium in house as well as rangers direct?

i imagine the one at the stadium must be the highest performing one cos its totally jam packed on match days and also fairly busy during the week too.
 

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From what I could gather in today's Daily Rhe....toric ;) we could end up making more money in the coming years than we would if we'd retained the shops. It seems that it's entirely down to how well the gear sells.

They also stated that we were bringing in approximately £4million a year in merchandising revenue. Is this figure accurate? If so, then barring a real meltdown we ought to be hitting at least that, under the terms of the deal (£3million guaranteed per year + performance top up's).

Seems a good deal to me on the surface anyway. I was a bit worried that we'd be forgoing a lot of yearly revenue but it appears not to be the case.
 

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Great shout James, watch the hacks are not following you about now :thumbsup:

I was a little worried about this deal to begin with but the figures look fine to me with potential for growth. That potential should now be realised as the merchandising is in the hands of people who have a proven track record. The fans also should now hopefully be getting better quality for their money too.
 

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Sounds very good. I read an article a few weeks back in the business section of the Herald about this exact deal too, so quite how its an exclusive I don't know, only thing exclusive is they confirmed it. It has been about a while.

I was originally very skeptical when I read it, because that did not state there would be a regular income from JJB yearly. But it sounds like its win win, not only for us, but for them too. It also gives us a link to Wigan, one of the most up and coming teams in Britain.

Lets hope it works as well as it sounds too. :)
 

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According to the Evening Times the deal doesn't include the Ibrox store, so that's more good news as far as i'm concerned.
 

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I agree. There must be more to come. I expect to see Murray making a TV appearance rather than a late night website annoucement like this one. Something big is still to come I expect.
 

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Will the Rangers Direct ordering be closed down like the web site and through the phone?

It is good news about the Ibrox store as it's wall to wall bears every match day - which means money , money, money.

I also hear that since Celtic fans atarted to Boycot JJB shop lifting figures have dropped dramatically.
 

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I heard about the bhoycott too. Does that mean JJB will lose revenue or gain revenue with less Celtic supporters frequenting their shops. :D *joke*
 

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chivoexpiatorio said:
I heard about the bhoycott too. Does that mean JJB will lose revenue or gain revenue with less Celtic supporters frequenting their shops. :D *joke*
lose, due to the influx of rangers supporters :tongue:
 

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More breaking news -

In the wake of the boycott of JJB stores by Celtic fans after the sports retail firm confirmed a £48m deal with rivals Rangers, unexpectedly, the companys profits have soared.

A JJB insider had this to say..."In the last two days our shoplifting losses have all but dissapeared. It's been quite remarkable, but obviously very pleasing."

The bad news however, is that many jobs will be lost. The insider went on to say: "Taking peoples jobs is not something we at JJB take lighty. But frankly, the security department is no longer required."

Savings made on air-fresheners is also reported to be 'significant'.
 
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