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  #1  
Old 03-08-2009, 01:03 PM
HiBoltage
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Default Jersey sales & LT

With all the talk of how LT leaving would impact profit generated off of jersey sales, I sought to find out just how much money we're talking here. No definative answers yet, but I did come across an article on AskMen.com with this interesting little tidbit:

In a good year, a typical NFL team makes about $5 million off merchandise sales, which worldwide totaled $3.2 billion in 2006. However, because of a wacky economic scheme, the teams don’t benefit all that much, sharing only about 12% of the wholesale price of an item. So, based on that number, when a superstar’s jersey is sold, each team gets 11 cents a piece.
http://www.askmen.com/sports/busines..._business.html


... so does the team get 11 cents for each jersey sold, or do all teams split the profit which equals to about 11 cents each? Either way you look at it, losing 11 cents on each jersey sale is really a negligible amount if you ask me. By this figure, if a million LT jerseys were sold next year, the Chargers would get about $110,000. How does that stack up to the $6,000,000 it takes to pay the guy every year? Either I'm missing something, or the status quo is misinformed.

Someone please enlighten me.

Last edited by HiBoltage; 03-08-2009 at 01:16 PM..
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  #2  
Old 03-08-2009, 05:21 PM
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That's all they make off of merchandise??

Why the hell are jerseys 200 bucks a pop then?
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  #3  
Old 03-08-2009, 05:26 PM
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Quote:
Originally Posted by JOE KING View Post
That's all they make off of merchandise??

Why the hell are jerseys 200 bucks a pop then?
Maybe because a portion of sale has to go to Reebok,NFL,the team, the player and the munchkin that makes it. Possibly?
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Old 03-08-2009, 05:36 PM
Ironpump Ironpump is offline
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LT has his name on more merchandise then jerseys though.
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  #5  
Old 03-08-2009, 05:52 PM
socalntve76
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Default Merchandise

Don't just look at the money from Jersey Sales look at the profit they make from the charger store, they make items specifically utilizing what LT stands for. T-shirts, hats etc. Items such as this and the fact that draw people to the chargers and other intangibles that you just cant put a dollar figure on.
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  #6  
Old 03-08-2009, 06:00 PM
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Money really isn't an issue for LT. Cap space is the issue.
I'm pretty sure the FO is not thinking that they'll lose 110,000 dollars if they cut LT.

And also, like someone already said, why are the jerseys 300 bucks then if the team only gets 11cents?
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Old 03-08-2009, 06:22 PM
teeper
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Quote:
Originally Posted by HiBoltage View Post
... so does the team get 11 cents for each jersey sold, or do all teams split the profit which equals to about 11 cents each? Either way you look at it, losing 11 cents on each jersey sale is really a negligible amount if you ask me. By this figure, if a million LT jerseys were sold next year, the Chargers would get about $110,000. How does that stack up to the $6,000,000 it takes to pay the guy every year? Either I'm missing something, or the status quo is misinformed.

Someone please enlighten me.
according to what was said in the article you quoted, all 32 teams divide 12% of the wholesale price of a jersey. counting backwards starting with 11 cents, their calculation would be 11 * 32 = 352 cents. 352/0.12 = 2933.333... cents = $29.33 dollars. with other words the wholesale price of a jersey would be roughly 30 dollars. it sounds a bit low to me assuming they're talking about a replica.

for an authentic jersey using the same logic assuming a wholesale price of $150 a team would get 56 cents.

i hope this can't be right though. it doesn't sound reasonable to split the profit evenly between teams even though some teams sell way more jerseys than others, and it also sounds like they should be getting more overall.

an authentic jersey probably doesn't cost more than 10 dollars to produce for reebok, and i always assumed the reason for why anything official was so damn expensive was because of the huge margin. also, being in the position of bein the only one able to supply the official jersey, it's easy for them to raise up the price cause there's no competition. i really can't see how they would only make 12% divided by 32. maybe the other 55% or so goes to the nfl in general?

Last edited by teeper; 03-08-2009 at 06:24 PM..
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  #8  
Old 03-08-2009, 06:22 PM
HiBoltage
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I don't know why the teams would only get 11 cents when a jersey costs $300, that's why I'm asking you guys. Maybe they mean replica jerseys, I dunno..

I'm only bringing this to attention because one of the arguments for keeping LT was "jersey sales alone." If teams only make 11 cents off a jersey sale, then that's hardly a reason to keep a player. Maybe jersey sales fit into the same model as ticket sales, where all money goes to the NFL and gets distributed evenly throughout the league from there.

Someone brought up the Chargers store, and while it's true that the team will make significantly more off of jersey sales there, it's only going to generate about as much profit as the Foot Locker at your local mall. Nothing to spend 6 million dollars a year over.

Would it be safe to say that the "jersey sale" argument is put to rest? I'm tired of all of them, but hey.. there's one less to worry about.

Last edited by HiBoltage; 03-08-2009 at 06:29 PM..
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  #9  
Old 03-08-2009, 06:28 PM
teeper
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Quote:
Originally Posted by HiBoltage View Post
Maybe jersey sales fit into the same model as ticket sales, where all money goes to the NFL and gets distributed evenly throughout the league from there.
yeah, that's what it said in the article you quoted. for every jersey a team gets roughly 11 cents. so if tomorrow, 1000 people buy a tom brady replica jersey, the chargers would get 110 dollars, and so would the patriots.
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  #10  
Old 03-08-2009, 06:29 PM
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The OTHER teams get 11 cents, the team that has the player gets more than that.
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