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The Chang Deal

By Andrew Steen :  17/01/2008 :  Comments (26) :
With the official announcement of the new shirt sponsorship deal Everton & Chang have reinforced the impression that the relationship stretches further than a simple shirt deal. The new Shirt deal represents a 45% increase on the last shirt deal with Chang (official site figures). The new deal will be up for renewal in 2011.

It is likely that Everton will look to tie up a wrap around sponsorship deal at the next renewal stage. This would include, stadium naming rights, shirt sponsorship and partner status. It is my understanding that Arsenal's Emirates deal was for a period of 10 years. The agreement Bolton had with Reebok was initially for 10years. I think it will be likely that Everton's next deal will be over a period of 10 years with stage payments. Everton will then be able to secure funding against these payments.

Assuming a modest 25% increase to the latest deal when it is renegotiated in three years time, Everton would receive £3.325M per year for the next shirt deal. If this is on a 10-year contract then Everton would see secure funding of £33.25M. Add this figure to the stadium naminig rights (est £30-50M for 10 years) and the total funding jumps to £66.25M - £86.25M)

If we take the prudent figure then Everton in three years time (or less) will secure around £66.25M of investment into the club

If you now add the sale of Goodison Park (expected to raise £12M) then the investment figure rises to £78.25M and this is before you take into account new corporate box sales / sponsorship of stands etc.

General expectations are that a full mid-range fit-out of the stadium (not including the vacant space in the north stand) will cost £40-£50M. By my simple reckoning these figures add up to portray the new stadium as both affordable and from a business angle an attractive investment.

I think the Robert Earl factor is starting to have a positive effect!

Reader Comments

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Dan Johnson
1   Posted 17/01/2008 at 15:02:50

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Anyone else think we could have got more £8M? I think we could have easily got at LEAST £3M a year. I think its just Wyness shooting his load in excitement too early.
Danny Militwitch
2   Posted 17/01/2008 at 15:04:31

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I would usually be proud of the fact that we are finally being recognised as a commercial force, however when I looked at the backpage of the echo It actually really riled me. Spread across the back page like a fat cheshire cat you have got that fat clown Wyness taking credit for something that ultimately has very little to do with him. He has done nothing to stabalise the fortunes of our club. It is David Moyes and the eleven players that run out every week that have stabalised our club and made it such an attractive proposition. The Echo has really alienated a few blues I know with their imbalanced reports on the business side of all things everton. It really pisses me off.
Chris Briddon
3   Posted 17/01/2008 at 15:17:34

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Some people really can’t help themselves can they.

It doesn’t matter what the story, they just have to put the boot in to Bill & Keith a bit.

Davey has done a good job on the playing side, but couldn’t have acheived it without a major degree of financial stabililty on the business side.

Remember Peter Johnson - gving wally £20m to spend then selling players behind is back 2 months later to pay it back!
Greg Doyle
4   Posted 17/01/2008 at 15:37:55

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Where did you get the £30m for the stadium naming rights from?
Would Tesco not have some option with it? Or recieve part of the revenue from the deal?
Peter Laing
5   Posted 17/01/2008 at 15:34:19

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When I read that Everton had signed an extension to their shirt sponsorship with Chang on the official site I was hardly suprised. I was however dissapointed that Wyness and Co had only managed to secure £8M over three seasons, considering the last deal was signed 2 seasons ago when our star and profile had yet to start rising, a £0.6m a year increase seems rather paltry. The hawking off of the merchandising operation to JJB, 10 year deal with kit manufacturer Umbro, and outsourcing of commercial enterprises has been widely condemned on these pages, with the current improvement in form I would tend to agree that this may represent another major faux pas by Bully Wyness.
Peter Sosnowy
6   Posted 17/01/2008 at 15:49:39

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Interesting to note the new "Chang" deal, 8m good business, however Changs business partners in Asia are Carlsberg! Does that ring a bell?
Paul Lenehan
7   Posted 17/01/2008 at 15:55:03

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Liverpool deal is worth £7.5m per yr; Spurs deal £8.5m per year; Newcastle deal £5m per yr; Villa just over £1m per yr; our new deal £2.67 per yr. We are still a long way short of clubs that not only are we competing with. I suppose the only way of improving that figure is continuing to improve on the footballing side and playing CL football.
Jay Campbell
8   Posted 17/01/2008 at 16:04:40

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£8 Million with Chang!!!

That will send shockwaves in FTSE market’s.

Well done Keith keep up the bad work.
Arthur Jones
9   Posted 17/01/2008 at 16:06:11

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Just as a matter of interest, what happened about the legislation that was due to be released that Children?s replica shirts could not carry any sponsors names that advertised alcohol? Has this had any bearing on the deal just signed? Or is the said ?laws? just going to be brushed under the carpet?
Tim Keen
10   Posted 17/01/2008 at 16:26:27

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Apologies if this sounds harsh but that is simply laughable analysis.

Put it another way....we have signed a deal that is less than FULHAM get per year and less than a third per annum less than Spurs get.

If we get all the money up front to put towards the stadium construction then for the next 10 years we have to do without any sponshorship revenue at all. In this time Tottenham will have bought in around £100m in shirt deals alone based on current figures. So in other words they will have made more money from running around with a name on their shirt then the best case scenario figures for the stadium deal.

Danny Militwitch
11   Posted 17/01/2008 at 16:18:26

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Chris Bryddon,

I really have no issues with Bill Kenwright, I just do not trust Wyness. You said Davey Moyes could not achieved what he has without a degree of financial stability, and I Completely agree with you-however to credit this to Wyness is a fucking joke.
The financial stability was achieved when Kenwright appointed a manager with his head screwed on, coupled with the untimely departure of Rooney.
Wyness has simply rode the crest of a wave, and for me every time I hear him speak I feel that he is a man of little integrity who does not understand what Everton is all about. At least Kenwright cares to an extent, but that fat clown Wyness will be exposed for what he really is I am sure.
Adam Carey
12   Posted 17/01/2008 at 16:33:17

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With the exception of Spurs who seem to have a fantastic deal based on little recent success, I think this new deal is good business.
Liverpool have played CL each year and their sponsorship relates to that and Newcastle are sponsored by a bank that is on the verge of being state run by the government so that explains that deal!
Ray Nickson
13   Posted 17/01/2008 at 17:35:11

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I dont why so many get wound up about Wyness. I know fuck all about running a football club or any big business come to that. But I?m happy that we seem a better proposition all round than a couple of years ago. Whether that is because, or despite Wyness I really don't care.
Tony Marsh
14   Posted 17/01/2008 at 17:48:29

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What kind of fool would want to pay thousands of pounds for a corporate box on a super market car park?It just won't happen. Once we go off to Kirkby, potential investors and big money spenders will not want to know. A safer bet will be Anfield 5 miles up the road and in a proper city. Dream on mate with your imaginary figures.
Rupert Sullivan
15   Posted 17/01/2008 at 18:51:36

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I have to agree with Tim on this one, I do not think that your analysis is very good Andrew. This is not a good deal for a club which looks likely to finish in UEFA cup places every year. £3 a year is not a lot in this age of football.

EFC would have been better off taking a gamble and waiting until the end of the year to see if CL or UEFA is in for next season; unless os course extra payments are included for CL or UEFA appearances. To me this smacks of fear of failure this year, another distinct lack of ambition by EFC and Wyness, I would rather trust my cat than KW to make financial decisions; at least that way the house would be full of tuna and I’d have something to eat!

Danny Militwitch
16   Posted 17/01/2008 at 19:07:34

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Dont forget the echo in all of this bullshit propaganda either, look at how dickhead dominic king has reported it, and i quote "Wyness seals the biggest sponsor deal in club history"
Yes it is - but with the progres we have made it is hardly going to be on par with what we had last time.
There is just something not quite right with the whole Echo / Wyness relationship, half the time it sounds as if he writes his own fucking articles!
Dave Wilson
17   Posted 17/01/2008 at 20:28:47

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Kirkby boxes wouldnt be worth a fucken brass raazoo
thats just one of many reasons Kirkby wont happen
Jo Smith
18   Posted 17/01/2008 at 20:37:27

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Local paper in close ties with local club shocker!

Do you think the Echo would have a go at either Everton or Liverpool

They need to be onside so has to get player access etc

Its called the REAL world
Lee Naylor
19   Posted 17/01/2008 at 22:12:00

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What’s with the picture on the OS of Wyness stood behind three young Asian boys who are bent over a table, did they offer us more but he asked for the boys instead?
Keith Glazzard
20   Posted 17/01/2008 at 22:51:32

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Personally, I think Corporate Boxes should have been banned by the government in 1975. But this is where we live, and the Mercs will roll in and out of the new Goodison, wherever it is. This is not an issue. Our media profile, determined by league position + euro stuff will decide all that. And sponsorship will depend on it.

What hits me the hardest is potential £12 m for Goodison, £8m from Chang .... and, as good as he is, £11 m for Yakubu. Crazy fucking world.
Kevin Mitchell
21   Posted 17/01/2008 at 22:43:26

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Andrew, all the facts and figures would be believable if we were redeveloping Goodison or staying in the city. Kirkby will be a white elephant. By going to Kirkby our financial pulling power will deteriate. Them midweek Carling Cup games now costing £20 per adult will be down to a fiver, can?t you see it?
As for Robert (eight minutes to Kirkby) Earl, he?s only been here a couple of months and he?s telling us he knows best what's good for us. The only effect he?s having on me is a vomiting bug.
Keith Glazzard
22   Posted 17/01/2008 at 23:18:19

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Now that’s a good idea !

Tickets down to a fiver. In Germany they regularly play to 50,000 crowds paying much less than we do here.

Could be a winner.
Eric Myles
23   Posted 18/01/2008 at 01:42:05

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I think you’ll find you’re wrong about the Chang and Carlsberg relationship in Asia Peter.

They are 2 different companies although the brewer of Chang in Thailand originally brewed Carlsberg under license I believe.

Now they are bitter rivals with Carlsberg brewing in neighbouring countries and Chang exporting to neighbouring counties but in Thailand Carlsberg no longer exists and you can’t buy it here.
Chang Drinker
24   Posted 18/01/2008 at 03:32:37

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Actually there’s an interesting history between Chang and that piss Carlsberg.

They’d agreed a co-marketing deal, where Chang would promote Carlsberg in Asia, and Carlsberg would reciprocate in Europe.

Carlsberg stiffed Chang, and did fuck all.

So, the Thais, being Thais, smiled politely, and set about their revenge.
Who do Carlsberg sponsor? We’ll sponsor their rivals.

They are a good company. It’s interesting to note that they are referred to as Partners, not Sponsors. They have done loads to raise our profile in Asia - at their expense. Carlsberg do fuck all to promote their RS relationship.

But try telling that to the RS-supporting gobshites in Asia? Don’t bother - some things don’t change, although at least the Chang here is served cool.
Stu Foster
25   Posted 18/01/2008 at 09:30:20

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When they started negotiating this deal last summer, they were looking for £5million pa and also wanted to include naming rights (this was just after the vote). I was told that there was no way that they would get £5 million, with £2 million being more realistic. This was from someone who had recently negotiated such deals for the ?biggest? club in the world. So to get just under £3million seems quite good. He also told me that combining the shirt and stadium sponsorship was a financial mistake!
With regard to Tottenham, they caught Mansion on the rebound from Utd, which is why they got the deal they did.
Stephen Stott
26   Posted 18/01/2008 at 12:29:15

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Oh Mr Marsh you have to spout off again don?t you - it?s so predictable & boring. So when we move to Kirkby (not if) our corporate boxes will be in a supermarket carpark - good design & planning then! Potential investors and big money spenders will not want to know - well they are banging on the doors of Goodison as we speak - listen to that (it?s deafening!).
Kirkby & Tesco is one the best deals any premiership club has lined up - there is very little debt involved (would you wish we were in same position as the Sh... - I don?t think so!).

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