Font
Large
Medium
Small
Night
Prev Index    Favorite Next

Section 9 Nike (Part 2)

Inter Milan's first request made Nike confused! After Clark and Wu Nan Cravlin looked at each other for a while, the CEO Clark turned his head and said, "Mr. Kenyon, we want to listen to your other requirements first, and we will discuss it after listening to all your requirements."

It is almost impossible to agree to such an important thing, so Kenyon continued to look at the document and said, "The second article, we hope that the sponsorship fee will be floating! The 5-year, 25 million US dollars you just proposed is indeed a good contract at present. But this contract is a long-term contract with a time span of 5 years. Chairman Musco and I are full of confidence in Inter Milan in the next few years. We believe that Inter Milan will become the best team in the world! And as the most beautiful team in the world, the 25 million US dollars you currently provide seems a bit low."

"You think you can become the best team in the world?" Several Nike players looked at Kenyon in a bit incredible! How could they negotiate what they thought...

Kenyon continued to look at the document without hesitation and said, "Of course, Musco and I cannot impose our confidence on you, so we propose a floating system to determine the sponsorship fee based on the results."

"What exactly is going on? Please tell me in detail."

"We hope to take the 25 million US dollars in five years. If we can enter the UEFA Cup and the Winners' Cup, then you need to pay a reward of 1 million US dollars and get a championship of 2 million US dollars; enter the UEFA Champions League with 2 million US dollars, and win 4 million US dollars; the top three Italian League One League One Championships, the top three Italian League One Championships with 4 million US dollars; the top 500,000 US dollars in Italian Cup!" According to Inter Milan's normal strength, it should be no big problem to enter the top 3 Serie A and enter the UEFA Cup every year. In this way, Inter Milan can get at least 20 more

If you can get one of the many trophys, you can get at least $2 million. Among them, Xiao Hua, a member of the Champions League, used his future knowledge to trick Nike. In this era, only league champions can participate in the Champions League, but UEFA will soon change the way of playing the Champions League. At that time, the top three in Italy can go, and the participation fee of $2 million will basically be included in Inter Milan's pocket. If the results are not too bad, Inter Milan should be able to get a sponsorship fee of $10 million a year.

"What if your grades are too bad?"

"Since it's a floating system, we are willing to accept the losses. If we fail to enter the European arena, we are willing to reduce 1 million on the basis of 5 million per year." Failure to enter the European event actually means failing to enter the top 6 of the league.

"Your price seems to be a bit too high." Nike people roughly calculated the conditions for Inter Milan and found that if the other party's grades were OK, the money they took out would be far higher than the original 5 million US dollars.

Xiao Hua smiled and said, "We have good results, and I believe that it is the result you are willing to see. A champion team may even be a team that dominates Europe. It should be more in line with your requirements. Just like Jordan makes you the overlord of the US market, a successful Inter Milan will also help you Nike become the leader of the European sports market! I think this little reward should be considered as your expectations for us."

"We won't talk about this for the time being, let's continue to listen to your next one." Clark said anxiously.

"The next article is relatively simple. We know that you cannot pay us the 5-year sponsorship fee immediately, but we need some money now, so we hope to get your proof of credit of US$50 million. I think if we sign the contract, the total value will definitely be above US$50 million. This one should be the simplest one!" The letter of credit of US$50 million is actually a loan of US$50 million from the Inter Milan Club to the bank. Nike, as the guarantor of this money, is preparing to use US$50 million as part of the funds for building the new stadium.

"You need $50 million?"

"Yes, Mr. Clark, in order to show our sincerity, I can tell you that we are planning to build a new stadium, so we need some funds to turn over." Xiao Hua confessed to the other party why he needed $50 million.

"As far as I know, Italy does not seem to allow private ownership of the stadium." Cravlin puzzled.

Xiao Hua said confidently: "We already have a way to build a new stadium, but we cannot disclose it to anyone for the time being. We hope you can understand."

Clark and Clufflin lowered their heads and discussed for a few words, and said, "This is fine, we can promise you immediately." Indeed, a club as big as Inter Milan will not run away. Xiao Hua may be able to run away, but Inter Milan club will not disappear. Moreover, the club is worth more than US$50 million, so Nike doesn't have to worry about US$50 million flying away.

"Okay, our Inter Milan club has now finished talking about its own conditions. We want to hear your opinions." Xiao Hua took the document from Kenyon and smiled and handed it to Nike's people to look at it.

"Your conditions are a bit too harsh, I think it's probably difficult for us to agree." Clark said in a difficult manner while reading the documents with his assistants.

Xiao Hua smiled and said, "Mr. Clark, I think you probably didn't find the benefits our contract will bring to you!"

"Oh!" Clark wondered.

"The key to our contract is on the first article. I think I need to explain to you in detail the benefits this clause will bring to you."

"Then please explain it! Mr. Musco!"

"Our club has tens of millions of fans around the world, but most of the fans cannot buy our fans' products. Are they unwilling to buy? I don't think it's Mr. Clark, mainly because they have no place to buy it! In the traditional sense, the club's products are run by each club and will not be left to sponsors for sale. Now our Inter Milan club has decided to cooperate with you to jointly develop this huge market. Our resources are our tens of millions of fans and our club's products. Your resources will be your strong global sales network and professional sales staff! I think as our performance increases day by day, your publicity will become more powerful. Our Inter Milan products will bring you a lot of money, and we share the profits generated by this together!" Xiao Hua said with a confident smile.

Nike's people did not answer, Xiao Hua continued: "I want to give an example. If nothing unexpected happens next year, Baggio will come to our team! I don't know if you know that Baggio's jersey sold in the last year, and the profit alone is estimated to be more than US$3 million. This result was only achieved under the backward sales model of a sports club like Juventus. I believe that under the strong sales network of your Nike company, Baggio's No. 10 jersey in Inter Milan will be

In Europe, America, and Asia, selling larger numbers, the benefits you get from this may be much more than the sponsorship fee you pay us! And in the future, we may also introduce more Baggio, and you will also gain greater benefits from more Baggio. Perhaps Inter Milan's products will become another Jordan shoe for you all over the world! I think our model is truly cooperation and sharing of benefits with you, not the simple model of your money for us to wear clothes!”

After hearing Xiao Hua's words, Clark stood up and said, "Mr. Musco, it's getting late, I want to do this. We all understand your conditions. There are many things in it that exceed our original expectations. But to be honest, some concepts are still very attractive to me, so we decided to go back and discuss it carefully. We will continue to hold a meeting tomorrow and finally determine the conditions for cooperation?"

"OK, then see you tomorrow!" Negotiators from both sides stood up and shook hands and said goodbye.

After the Nike side left, Kenyon walked to Xiao Hua and asked softly: "Do you think they will agree?"

"Maybe only God will know!" Xiao Hua was not sure how many conditions Nike would agree to him.

Later that day, Inter Milan defeated Barry 4:0 away. While watching TV broadcast in Milan, Xiao Hua was happy for the team's good condition, he was also praying in his heart that he would be lucky at the negotiating table tomorrow.

At this time, Clark and Woonan Clavlin were also studying Inter Milan's plan in the hotel room.

Early in the morning of the second day, Inter Milan and Nike's talks on the second day continued to be held within the Inter Milan club, but this meeting was very short, because both sides knew each other's conditions after yesterday's meeting. After a night of discussion, both sides came up with a final plan.

Soon, representatives of both parties, Xiao Hua and Clark, signed their names on an agreement agreed by both parties. Since Inter Milan will end the contract with Enbao after the end of this season, the formal contract will be officially signed after the end of the season. This time, only an intentional agreement was signed, but all future contract terms have been listed in the agreement.

1. The sponsorship agreement between Nike and Inter Milan Club will start from July 1, 1995 to July 1, 2000, for a period of five years. Within five years, Nike will provide sports equipment to teams at all levels of Inter Milan Club every year and provide a sponsorship fee of US$6 million. (Since Inter Milan is unlikely to not even participate in the League Cup, Nike simply adds the prize money to participate in the League Cup directly to the sponsorship fee.) For this reason, Inter Milan Club will use Nike's products for all training from youth teams to adult teams. At the same time, Inter Milan Club must try its best to guide its players to sign Nike.

2. Inter Milan Club won the league championship Nike will reward US$3 million; participating in the Champions League will reward US$1 million and winning US$3 million; and winning the League Cup and Winners Cup championships will reward US$2 million.

3. In the next five years, Inter Milan Club authorizes Nike to sell goods with the Inter Milan Club logo for US$15 million. The sales activities will be conducted by a separate department of Nike. The personnel will be composed of Inter Milan Club personnel and Nike personnel. The specific decision will be decided by Nike. The profits generated by the sales of such products will be distributed by both parties at 50%.

4. Nike will immediately guarantee the Inter Milan Club’s credit limit of USD 50 million from the date of the official contract.

5. Inter Milan Club will form a strategic partnership with Nike. After the peace agreement expires, both parties will guarantee the other party’s priority renewal rights.

———————————————————————————
Chapter completed!
Prev Index    Favorite Next