Discussion Revenue from guernseys

[Broken]

Just curious from the main thread discussion Jumper clash fails how much do teams benefit from guernsey sales?
To me, struggling teams would benefit from pumping out X amount of designs each season to prop up their financial woes, but I'm wondering how much it would work in the real world.

For instance the Suns, with no tradition, would make a killing from a new design every two years.

 

[magpienato]

Just curious from the main thread discussion Jumper clash fails how much do teams benefit from guernsey sales?
To me, struggling teams would benefit from pumping out X amount of designs each season to prop up their financial woes, but I'm wondering how much it would work in the real world.

For instance the Suns, with no tradition, would make a killing from a new design every two years.

I wouldn't know the exact numbers but what I do know is that it's often not enough to be worth it for the manufacturers. The club's do fine off the revenue, but manufacturers are usually left with a very small cut of the sales. This leads them to pick up multiple clubs just to make up the margins, but as we've seen with BLK and ISC this just spreads them too thin and they end up collapsing.

 

[Mero]

Manufacturers make jumpers, they generally sell them to the retail outlets for 50% of the eventual retail sale.
It is also a generalisation, but close to the mark that where the manufacturer has them made under license, they make 50% markup.
E.G. Hawthorn's jumpers are not made by adidas in Australia, they're made by a Chinese company under license to adidas, who then sell them to adidas Australia.
The manufacturer then give a certain number to the club as part of their sponsorship.
Usually this is two jumpers for each number for each design the club has.
E.G. Essendon has two of each of their Home, Away (Sponsors reversed), Clash, Anzac, Indigenous, Country Round jumpers.'
In most cases they will also provide the VFL jumpers as well.

The manufacturer has the right to sell the jumpers to outlets that purchase from them.
Generally they will have to order a certain number of jumpers or a certain dollar value.
Some choose to make less than 50% and they're the ones selling online at a discount.
Others, like Rebel and AFL Stores will order based on location, and historical sales numbers.
Collingwood sells better than anyone, then West Coast, then Adelaide.
Rebel Knox probably has more Richmond jumpers than Rebel in Mentone, which would have more StKilda jumpers.

When the club's retail outlet sells the jumpers, they are no different from Rebel, except that the markup goes to the club.
The risk they take is they're buying a certain number of each jumper, in each size, and hoping to sell a minimum of half of them to break even.
If they don't sell 50% of what they order, they lose money. This happened with Heritage jumpers, and is the reason Heritage Round doesn't exist anymore.

For every jumper sold, the AFL gets a 12.5% commission.
66% of the 12.5% goes to the club whose merchandise was sold.
So for a $110 Clash jumper (based on the Suns website) they would have bought those jumpers from New Balance for $55.
If, to make the numbers easy, they bought 100 jumpers, let's say 20 kid sizes, and 20 in Adult S, M, L & XL.
They need to sell 50 of those jumpers to get back the $5500 they spent buying them.
For every jumper past 50 they're making $55 per jumper.
Then, the AFL get $6.87 from each jumper (12.5% of the $55 the New Balance sold them for)
Of this the club gets 66.67%, which in this case is $4.58.
This also means the apparel sponsor is now getting $48 per jumper because the AFL is taking nearly $7 per jumper)

The other thing the AFL Research shows is that success in a particular jumper definitely impacts the acceptance of that jumper.
Richmond's Yellow Clash jumper was generally not accepted by the Richmond faithful, and sales were poor, until they won a Grand Final in it.
Essendon's Clash jumper has never sold well, irrespective of the design changing somewhat almost every year.
Gold Coast have always been last in merchandise revenue, I don't have the numbers on jumpers specifically.

I don't know what you call "making a killing from a new design every two years." but I would suggest they probably make around $5,000 - $10,000 at best.
This estimate comes from the low supporter base, a low expectation of the popularity of their Clash jumpers and the low number of people collecting every Gold Coast jumper.
If Gold Coast sold 200 Clash jumpers at their Club shop, which I think is extremely ambitious, they'd make $5,500.
(Plus they'd make $900 or so in AFL revenue split)
If all other retail outlets also sold another 100 Gold Coast Clash jumpers they'd make a further $458 from AFL Revenue.
Adjust your estimates accordingly, but these are the AFL numbers.

Here's the 2017 revenues, the more recent data has proven difficult to find online.

 

[Timewaster]

Manufacturers make jumpers, they generally sell them to the retail outlets for 50% of the eventual retail sale.
It is also a generalisation, but close to the mark that where the manufacturer has them made under license, they make 50% markup.
E.G. Hawthorn's jumpers are not made by adidas in Australia, they're made by a Chinese company under license to adidas, who then sell them to adidas Australia.
The manufacturer then give a certain number to the club as part of their sponsorship.
Usually this is two jumpers for each number for each design the club has.
E.G. Essendon has two of each of their Home, Away (Sponsors reversed), Clash, Anzac, Indigenous, Country Round jumpers.'
In most cases they will also provide the VFL jumpers as well.

The manufacturer has the right to sell the jumpers to outlets that purchase from them.
Generally they will have to order a certain number of jumpers or a certain dollar value.
Some choose to make less than 50% and they're the ones selling online at a discount.
Others, like Rebel and AFL Stores will order based on location, and historical sales numbers.
Collingwood sells better than anyone, then West Coast, then Adelaide.
Rebel Knox probably has more Richmond jumpers than Rebel in Mentone, which would have more StKilda jumpers.

When the club's retail outlet sells the jumpers, they are no different from Rebel, except that the markup goes to the club.
The risk they take is they're buying a certain number of each jumper, in each size, and hoping to sell a minimum of half of them to break even.
If they don't sell 50% of what they order, they lose money. This happened with Heritage jumpers, and is the reason Heritage Round doesn't exist anymore.

For every jumper sold, the AFL gets a 12.5% commission.
66% of the 12.5% goes to the club whose merchandise was sold.
So for a $110 Clash jumper (based on the Suns website) they would have bought those jumpers from New Balance for $55.
If, to make the numbers easy, they bought 100 jumpers, let's say 20 kid sizes, and 20 in Adult S, M, L & XL.
They need to sell 50 of those jumpers to get back the $5500 they spent buying them.
For every jumper past 50 they're making $55 per jumper.
Then, the AFL get $6.87 from each jumper (12.5% of the $55 the New Balance sold them for)
Of this the club gets 66.67%, which in this case is $4.58.
This also means the apparel sponsor is now getting $48 per jumper because the AFL is taking nearly $7 per jumper)

The other thing the AFL Research shows is that success in a particular jumper definitely impacts the acceptance of that jumper.
Richmond's Yellow Clash jumper was generally not accepted by the Richmond faithful, and sales were poor, until they won a Grand Final in it.
Essendon's Clash jumper has never sold well, irrespective of the design changing somewhat almost every year.
Gold Coast have always been last in merchandise revenue, I don't have the numbers on jumpers specifically.

I don't know what you call "making a killing from a new design every two years." but I would suggest they probably make around $5,000 - $10,000 at best.
This estimate comes from the low supporter base, a low expectation of the popularity of their Clash jumpers and the low number of people collecting every Gold Coast jumper.
If Gold Coast sold 200 Clash jumpers at their Club shop, which I think is extremely ambitious, they'd make $5,500.
(Plus they'd make $900 or so in AFL revenue split)
If all other retail outlets also sold another 100 Gold Coast Clash jumpers they'd make a further $458 from AFL Revenue.
Adjust your estimates accordingly, but these are the AFL numbers.

Here's the 2017 revenues, the more recent data has proven difficult to find online.
View attachment 1468765

Yeah but can you give us any details please