Revenue from overseas

[Bruce Wayne]

Whenever things like overseas tours and players are discussed an often used argument is the impact they have on our revenue from those areas. Just today it was suggested that dropping Howard would impact upon our revenue from America.

So it got me thinking just how much money we make from our overseas endeavors. The latest reports doesn't provide an exact figure, but under the headings of sponsorship, advertising and merchandise, and other commercial activities, we have revenue of £8.3m, out of a total of just under £80m. I would imagine the vast bulk of that income comes from the UK market, with the bulk of that around match days.

I know Man Utd earn as much from their overseas activities as they do their UK ones, but we don't seem to be anywhere near that league and our overseas income really does seem pretty small.

 

[teppic]

Honestly, players alone don't cut it.

We need to be an established top 4 side to cut in to the money overseas market.

Also we need to switch to either Nike or Adidas and get our gear in their many stores.

 

[Matt Damon]

Whenever things like overseas tours and players are discussed an often used argument is the impact they have on our revenue from those areas. Just today it was suggested that dropping Howard would impact upon our revenue from America.

So it got me thinking just how much money we make from our overseas endeavors. The latest reports doesn't provide an exact figure, but under the headings of sponsorship, advertising and merchandise, and other commercial activities, we have revenue of £8.3m, out of a total of just under £80m. I would imagine the vast bulk of that income comes from the UK market, with the bulk of that around match days.

I know Man Utd earn as much from their overseas activities as they do their UK ones, but we don't seem to be anywhere near that league and our overseas income really does seem pretty small.

The new overseas tv deal is worth £13million to the club. Up on the last one and boosting revenue.

That £8.3 million looks suspiciously like the Chang sponsorship deal figure.


United have a load of "image rights" tie ins that they've generated over 20 years. Collectively together they outstrip their match day revenues.


It depends how they're reported in Everton's accounts. Basically we'll only be able to see if they change year to year. This year they should be up as Donovan's impact has been substantial especially for our American brethren.

The margin of increase may not be all that big but it'll be a long term increase something to be built on.


Also with relevance to the merchandising it will depend how EvertonDirect (KitBag) report back.

I suspect merchandising is up, even in the recessionary period. But the risk of making the change was mitigated by the upfront contract that KitBag have given us for running that side. i.e. if the stores or website didnt make the expectant profits it was KitBag's risk not Evertons.

In the business model - this would then mean the incentive for merchandising is KitBag's. If the profit is made (minus share dividend payments for KitBag), this can be reinvested in MORE merchandising for Everton with MORE stores or MORE adverts and MORE image rights tie ins.

Basically, its about making it an efficient profitable operation to start, then build from there.



This will should grow especially if we get some real success, but also with some "faces" coming through in the likes of Rodwell etc who all the sports companies will want to be associated with.

Thats how I think its being approached.

 

[Bruce Wayne]

Fairly sure that the overseas tv deal is negotiated collectively though so it will be a Premier League deal rather than an Everton one.

I'm just curious as we often hear the argument that we should go on overseas pre-season tours and sign players from certain countries to earn revenue from these countries. For the record I think this is an area of huge potential but it doesn't seem to be earning us diddly at the moment.

 

[Matt Damon]

Fairly sure that the overseas tv deal is negotiated collectively though so it will be a Premier League deal rather than an Everton one.

I'm just curious as we often hear the argument that we should go on overseas pre-season tours and sign players from certain countries to earn revenue from these countries. For the record I think this is an area of huge potential but it doesn't seem to be earning us diddly at the moment.

The figure I mention is the revenue our club should expect to bring in from it as a club, it might not be accurate but its of the right range.

Also in relation to the marketing and commercial changes the club have made, we're only starting to see their impact now following the JJB disaster.

Elstone looked at the short/medium term in adopting the KitBag arrangement which is something that can be built on and that gives us more control. It should be much better as a business model.

Wyness on the other hand with the JJB disaster, merely cut things and took the funds to make the balance sheet look abit better. He was a **** and an inept **** one too, as the whole side got neglected.

I can see there is stuff to be built on and the changes we've seen have shown that our destiny is back in our hands when it comes to marketing and merchandising. Not neglected like Wyness did.


On the whole Overseas issue, Donovan did have an impact, but it's not what people expect to see - like yourself Bruce in the "bottom line". It might work at Real Madrid but for the adolescent merchandising/marketing system we've just put in place (i.e. new) its unlikely.

But they have a more subtle effect in growing the fanbase.

I use the example of the influx on here of our Yanks, who thanked Everton and said they would continue to follow Everton as a result of our treatment of Donovan. Year to year that may affect the bottom line by increasing the appeal of the club and size of the fan base.

Particularly with Donovan saying he'd only come to us in future. Loyalty grows loyalty.


Basically Bruce, I'd say we've a better business model than we did have under Wyness.

If we didn't I say so. But we do.

The next step is to get more coverage and start getting those nice image rights contracts for our young players like Rodwell and bring more money in. KitBag are a key part of this also. If they don't rest on their laurels and start pushing the "brand" further and keep trying to make more revenue and not do what JJB did - then it's a much better situation really.

Its all setup for us really and should be easier in marketing than it has been in years. I kid ye not.

 

[Bruce Wayne]

Good post MD. For what it's worth this is the area where a better online operation could make a big difference. We don't have the clout to tap into huge overseas retailing. Our kit is very unlikely to appear in shops around the world because our name can't compete with those who regularly reach the latter stages of the Champions League.

What we can do however is do a much better job of marketing to our international supporters online. This is what frustrates me about the inability of the club to engage more with sites like this. We have a great community here, with a good number of international members. How many have bought something from the club in the last year? I mean there's 7,500 members here. 30,000 + on our Facebook page, yet the club have failed to reach out to either.

At a time when the government is putting the squeeze on Sky to reduce costs it seems a little short sighted to me.

 

[Matt Damon]

Good post MD. For what it's worth this is the area where a better online operation could make a big difference. We don't have the clout to tap into huge overseas retailing. Our kit is very unlikely to appear in shops around the world because our name can't compete with those who regularly reach the latter stages of the Champions League.

What we can do however is do a much better job of marketing to our international supporters online. This is what frustrates me about the inability of the club to engage more with sites like this. We have a great community here, with a good number of international members. How many have bought something from the club in the last year? I mean there's 7,500 members here. 30,000 + on our Facebook page, yet the club have failed to reach out to either.

At a time when the government is putting the squeeze on Sky to reduce costs it seems a little short sighted to me.

Thats where any profits need to be reinvested for KitBag and Everton's current operation.

Like you say, we should start growing it using the money already raised, by putting in place an international merchandising operation if one isn't in place already.

Thats the beauty of the KitBag deal. We can do what we want.

You're right. If Mark Rowan's watching he should be on the phone to KitBag and arranging a sit down with Danny etc.

Can't speak for Danny but for allowing this to be an online portal for the (KitBag) Everton FC International Online Store: a suitable coverage of Danny's costs on here then they're in business.

Thats part of why the club have a facebook page and why Rowan's spot on about the "digital community" generation. Maybe he's waiting on a certain level of maturity for it though?


Unless Facebook put a swear word filter on for commercial entities pages, then although Facebook is bigger than Google it'll never be more profitable. Because some of the idiots that go on the main facebook page are pretty ridiculous in some of the commenting. Makes it look trashy.


As for GOT
Sure Danny could come up with suitable ideas for how this could be implemented non-non-invasively, and also taking KitBag's expertise in.


If you know anything about Web2.0 or ever read anything about Tim Berners Lee's thoughts on the matter then this is big business these days. Don't know how Everton handle it but as I say most big online retailers automatically collect/database customer information to tailor their marketing efforts.

The best operations also use viral marketing and forums like this to further boost growth.

Think Danny should bring up a tie with KitBag's store for on here next time he speaks to Rowan... as you are right Bruce.


I do think the club "get it" these days. More than they used to. But as I say, take a little risk for a good reward.

GOT's been running years now, i've contributed to its running cost. First time ever done that for an Everton forum as it's run very well! Loyalty breeds loyalty. GOT is breeding loyalty for EFC and could for the marketing operation too.

* (even if I do get frustrated and f-bomb more than I aught to on here soz Danny).

 

[Robert Jarvis]

Everton's green shoots are developing, they will need time. We just do not get the coverage, publicity through TV that the top 4 get. Largely because of being at the top of the PL but mainly through the CL which has a tremendous worldwide impact.

 

[Goat]

I wanna know who said dropping Howard would affect Sales in the US?

I would imagine a lot of US sales are not thru the Club shops, so any boost in sales would probably go back to LCS, so infact any drop wouldnt affect us directly, with that in mind, MUCHA IN.

 

[Robert Jarvis]

Howard said it. I thought that would have been obvious.

 

[Bruce Wayne]

It wouldn't seem to be too difficult to white label the Everton shop and let Danny shove it up on here, with GOT getting a commission on all sales generated. That really isn't rocket science these days.

As for Facebook, our wall posts typically get 40,000+ views. It seems rather naive to be cutting that off. At the moment I know Danny has done a bit with the club, but it's been largely in good faith I believe. If there were financial rewards in place then I'm sure some very creative solutions could be found to market to our fans around the world.

 

[Matt Damon]

It wouldn't seem to be too difficult to white label the Everton shop and let Danny shove it up on here, with GOT getting a commission on all sales generated. That really isn't rocket science these days.

As for Facebook, our wall posts typically get 40,000+ views. It seems rather naive to be cutting that off. At the moment I know Danny has done a bit with the club, but it's been largely in good faith I believe. If there were financial rewards in place then I'm sure some very creative solutions could be found to market to our fans around the world.

You could even get a "code" for GOT members to type/quote as like a referrer for like £5 off or free delivery or something. Tie in options and the like. Incentive for members. At end of purchases you often get option to put codes in to take advantage of offers.

Sure there could be some creative bits and pieces you're right.

I mean what was Mark Rowan talking about otherwise, its almost like self-perpetuating viral marketing at minimal cost to the club.
They could also do tie ins for EvertonTV like they have on the main site to incentivise people joining that. There's no reason that they cant start looking to increase that's bandwidth too as cost of bandwidth is dropping.

Get the creative juices flowing.

This is whats known as "user directed content"
User Directed Content
Users of Web 2.0 sites often play a growing role in how content is organized. User directed content is content that people discover via others and also refers to the general schema of content organization within a website. Examples of user directed content is *tagging*￾ and RSS feeds.

That narrow definition doesn't account for niche websites or forums such as this in directing content..............

Danny implemented the legal request immediately over the club logos. If thats not an act of good faith then I don't know what is?

 

[Axlswhk]

It's not all about marketing, as mention earlier, our brand is not attractive enough. It's good to tap into our oversea market but the revenue will not be significant to generate a "Moutinho" signing. The key is to harvest new fans and for that to happen, we need to show good and attractive football on the pitch.

 

[ToffeeDan]

If Danny wants to talk to me (pm etc.) I will enlighten him on my conversations with Elstone and my thoughts on the way forward for EFC.

 

[Lao]

I wanna know who said dropping Howard would affect Sales in the US?

I would imagine a lot of US sales are not thru the Club shops, so any boost in sales would probably go back to LCS, so infact any drop wouldnt affect us directly, with that in mind, MUCHA IN.

I think it was me in the Mucha thread, but i know nothing really.

USA has become a regular destination for pre-season, the MLS representative game last summer raised our profile. The young americans we have brought over, the Donovan deal, the massive influx of US interest in the forum.

Surely someone somewhere has a plan in all this