JJB Deal

[rbr 1,247]

With JJB yet again making the financial pages for the wrong reasons , do any of our Financial whizz kids know what our position would be regarding our rights to our merchandise , ie would JJb be deemed to be in breach of contract and the remaining amount of the initial �£18 million 10 year deal which is brought down at �£1.8 million per year , would that be ours or returned , would we be free out of necessity to then negotiate a new deal with another retailer as I cannot see us starting our retail operation's all over again .

[Bluedell 5,356]

With JJB yet again making the financial pages for the wrong reasons , do any of our Financial whizz kids know what our position would be regarding our rights to our merchandise , ie would JJb be deemed to be in breach of contract and the remaining amount of the initial �£18 million 10 year deal which is brought down at �£1.8 million per year , would that be ours or returned , would we be free out of necessity to then negotiate a new deal with another retailer as I cannot see us starting our retail operation's all over again .

 

Given none of the financial whizz kids are around, I'll have a go at answering.

 

I can't see any way that the deal would have been structured that Rangers would have to repay any of the initial �£18m if JJB default.

 

Whether we were able to walk away from the deal depends on the level of the breach of contract and the detailed clauses contained within it. However if JJB totally folded then we would be able to neotiate a new deal with someone else, which may not be on the same basis as the JJB deal but could be more of an agency set-up and not with the same level of exclusivity.

[Frankie 8,183]

Bluedell - yesterday...

 

[Stimpy 0]

I've said this on numerous occasions. This must be terms and conditions attached to the service level agreement that has seen JJB default on. Jeez, before they found themselves in financial difficulty I'd have thought they would be breach on contract. Poor decision making getting involved with this mob.

 

What shame when the 'buy direct' campaign saw us post sales above most Euro heavyweights. Only manure posted bigger sales in the UK.

[Bluedell 5,356]

I've said this on numerous occasions. This must be terms and conditions attached to the service level agreement that has seen JJB default on. Jeez, before they found themselves in financial difficulty I'd have thought they would be breach on contract. Poor decision making getting involved with this mob.

 

What shame when the 'buy direct' campaign saw us post sales above most Euro heavyweights. Only manure posted bigger sales in the UK.

 

Sales may have been up but was it more profitable?

[Bluedell 5,356]

Bluedell - yesterday...

 

 

Bring back the groans!!!!

[craig 5,199]

Bring back the groans!!!!

 

Aye, where are the groans - they were of HUGE benefit, especially with Gav and maineflyer around :devil:

 

Agreed with BD, just because sales are higher does it make it more profitable ? However, you would have to think that the overheads of "buy direct" would be limited. The problem we have even if JJB are in breach of contract is that we dont have any club shops to turn to other than the Megastore. Our retail distribution would become virtually zero.

 

We would then need to turn to another retailer and quite quickly.

 

I cant imagine that we would have to pay back any of the initial 18 mill. We would obviously lose out on the remainder of the contract as we would, I suspect, be an unsecured creditor and dependend on the true nature of JJB's financial strife could get pennies on the pound. Any new contract would probably be nowhere near the level of the current deal.

 

I also think that the deal was actually a GOOD business move for the club. It was guaranteed income in what has ended up being a worrying financial climate. Would we have made as much money if we were running our own merchandising ? Maybe, maybe not. So would you take the guaranteed income or roll the dice ? Guaranteed income was the way to go. The fact we pissed the money up the wall is another discussion altogether....

[Stimpy 0]

Sales may have been up but was it more profitable?

 

It wasn't much different to what we receive now, if I recall correctly. I'm pretty sure Rangers could have hired some retail expert to look at the options we had. Close the low turnover stores, bin the ticket office and make the shops deal with ticketing: this would increase footfall into the shops and you'd pick up sales from that.

 

Once a month have a player visit one shop to meet with fans, again, increasing footfall leading to more sales. Different player for a different shop each month.

 

Create promotions that could see you win OF or CL tickets.

 

Loyalty cards or % off with your ST

 

Ask the fans what we want, can't go wrong there.

 

Endless opportunities for improvement!

[rbr 1,247]

http://menmedia.co.uk/manchestereveningnews/news/business/s/1387920_jjb_sports_shares_slump_after_debt_warning

 

 

The trading crisis at JJB Sports deepened today as the Wigan-based retailer warned it was continuing to underperform, with freezing weather expected to hit revenues even further.

 

The group, which last year stayed afloat by selling its fitness club chain and negotiating a restructuring deal with landlords, also warned it was likely to breach the conditions of a �£25m Bank of Scotland loan in January.

 

JJB said that conditions had "remained extremely challenging" since its last update three weeks ago and, with just two months of Christmas and New Year trading remaining, the full-year outlook remained uncertain.

 

A major promotional drive through its 250 stores had failed to deliver results and JJB is now exploring further restructuring options and considering alternative sources of finance.

 

Mark Photiades, an analyst with Singer Capital, said that JJB may be forced to turn to shareholders in a further fundraising.

 

JJB, which issued a profit warning last month, did strike one positive note by reporting an encouraging performance in six recently refitted stores, with sales 11 per cent above the company average during November.

 

JJB shares slumped more than 15 per cent in the wake of the trading update.

 

Kate Calvert, retail analyst at Seymour Pierce Research, said the broker maintained its "sell" recommendation due to JJB's difficult financial position as rival SportsDirect heaps pressure on the company by increasing promotional activity.