We are Warriors…!

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In the past couple of days, the international media has been carrying the news that Liverpool Football Club has struck a record breaking deal with US-based kit suppliers Warrior Sports. The deal, said to be worth in the region of Stg 25 million a year, would even surpass Man Utd’s Stg 23.5 million a year deal with Nike!

The unconfirmed story, which would effectively bring twice the cash Adidas have been paying, also poses a couple of issues that may leave some fans perplexed. There is also concern that with Warriors Sports having experience restricted to hockey and lacrosse teams, even though they apparently purchased a company called Brine Sporting Goods in 2007, which company is quite involved in the US soccer world. The relatively unknown brand this side of the pond, has a global turnover exceeding US$ 1 billion therefore a deal of this nature is more than sustainable. The fear of the fans is that Warrior Sports might not be able to match the much liked and admired Adidas kits but if this deal is well and truly in the making, then perhaps Warrior will rise to the occasion and produce a kit that is worthy of the tradition and world-wide exposure of Liverpool Football Club. The deal would come into effect in the 2012/13 season.

It is estimated that the Reds sell as much as 900,000 replica shirts annually, and are surpassed in this classification only by Real, Barca and Man Utd (with regards to the Adidas brand, the Reds are second only to Real). Given that these three are considered to be arguably the world’s top three clubs on the rich-list, this is an amazing achievement by the Club, especially when one takes into account that we have not been so successful in recent years.

With the new UEFA rules coming into play and FSG’s philosophy to stabilize the Club’s finances and then to let it run on its own steam, an extra Stg 12 million a year could prove to be an important income on the balance sheet, especially since it has been rumoured that TV-rights related funds could be reduced in the coming years.

Should the deal be confirmed by FSG and LFC, it will contribute to strengthen the belief that John Henry and Co are taking our beloved Club to a higher level. The foundations are being laid for a new era, and I somehow feel that there is more in store for us in the coming months. Perhaps our fellow Red fans in the US can give us some more insight into this story.

43 Comments

  1. Are you sure this is true? A bid might of been placed but the only news outlet that reported it as a done deal was the Daily Fail. I’ll believe it once the official site says so.

  2. I feel the same way Tonio about FSG. The rules will bring a more level paying field for the club and ridiculous money will be more difficult to spalsh around.
    FSG´s businesses are in SPORT. Whichever way you look at it sports business is about winning whatever the name of the company making the shirt. As long as they don´t sell our name to the highest bidder and concentrate on maintaining us at the highest level the money will be made and the club and profits will be always healthy.It is a simple formula which they seem to understand. The Red Sox haven´t won many this season but you don´t here them crying they seem to have things under control now.

  3. The kit will change to Warrior for the 2012/13 season, not a hoax it was reported by all major sport trade publications.

    The club hasn’t announced it yet because they want to first launch the 2nd away kit.

    Expect an announcement this summer.

    1. Since there hasn’t been any official statement, I hope that FSG is hoping Adidas or a legitimate kit manufacturer will lodge a larger big. Warrior does not deserve to manufacture the Red Shirt. They are a tiny, insignificant company with no distribution/name recognition. No one has ever heard of them overhere in the States and those who have only know them for making mediocre Lacrosse and now Hockey equipment.

      1. Tobiasfunk did you know who fsg where before they bought lfc? Just because you dont know doesnt mean they cant do the job. Adidas took over from reebok, who are big in america because they merged with them to promote adidas in america. Warrior could be bigger then we know.

  4. if this is true i would like to Question the reach of Warriors worldwide?? Will it be capable to sell d shirts all over the world like Addidas?

      1. Antoine, I cannot imagine a bank selling replica shirts. What about the rest? Training wear, bottles, bags etc? Online is hardly cost effective to most. Plus, as is the case with most online things, some prospective buyers would be put off since they like to touch and feel and try before they buy.

          1. True for most of us actually. I have a few adidas stores around where I live but I still purchase my shirt online (for the LFC style lettering and for getting many more options in merchandize). But my comment was for people who would rather buy after trying on. If you buy online there’s a £15 shipping cost for international locations. I think that’s a downer for someone who only wants a £42 shirt.

    1. I understand they were bought by Rebok which means they should have the resources for distribution worldwide and we have to assume that Henry and co. have thought this through. Their goal is more income and if they had doubts that warrior couldn’t deliver then I doubt they would have done the deal. Why would they take more on the annual contract if they would lose on the total sales end…wouldn’t make sense. I am a little nervous to be honest but not about this aspect but more about how they will design our kits. Nearly all my gear (LFC or not) is addidas or Puma (don’t like Nike much) so this is a bit of a bummer but I am hopeful Warrior will come through. Time will tell but the numbers don’t lie and there isn’t much of a choice if they are prepared and able to pony up the cash. Onward and upward!

  5. Antione, it was broken by the Daily Fail and the story was regurgitated in a few publications. I wouldn’t say this is certain.

  6. Tonio, I’ve always wanted someone to talk about this and could have bet my money that it would be you. I can see there are two talking points in the article above. One the money that it brings to the club. And the other, Warrior as a kit supplier itself.

    Finances & FFP: LFC is a reasonably profit making club if we were to take out the interest payments from last unfortunate regime. The finances/ profit have only gone up since we changed the principal partners. With regards to the FFP, there are a couple of things: 1. they don’t penalize until the losses after the third year are £15m+ (I might be mistaken with the exact number). So basically, you can register a loss of £10m per year for two years and make a profit of £5m for the third and be ok. 2, there is also leverage (grace) for some salaries agreed before the some FFP notifications. Finally 3, the player purchases are amortized over a period of their contract. So if we buy someone for £25m for 5 years, the cost per years is only £5m that will go into the financial statements. Liverpool FC is not going to lose from FFP guidelines, and would only gain if these are implemented. FFP is more for people like FCB, RMCF, MCFC, CFC who have been bankrolling success without paying much heed to the bottom-line. In fact, there is also a clause that prevents Sheikh to make Etihad (Sheikh owned) pay obscene amount to MCFC in order to comply with FFP.

    Now Warriors: While I am extremely happy that the club is top of the charts with annual revenues from the deal, what disappoints me is that the reach of Warriors/ New Balance is very limited. So is their brand perception. If the club was selling 900k shirts per year, a large part of it is due to adidas’ massive reach across continents. I don’t think there are many stores outside Americas for exclusively retail New Balance or Warrior products. I am not worried about the fashion or the technology aspect since I believe Americans do a good job at it. But there is absolutely no market reach for this brand. Speaking of the region I hail from, there is a huge market for fake merchandize in South and South East Asia. I’m sure these opportunity losses do not worry Warrior sports but looking around and seeing people wearing fake replicas just sounds godawful. Elaborating on what you said before, I sense that Warrior would come up with a rocking kit worthy of Liverpool’s tradition, but worldwide reach, I doubt. Let’s call for upgradation of LFC online store’s servers?

  7. I cant comment on how easily warrior will be able to distribute world wide, but as an american red i can definately vouch for the company. Warrior makes top notch lax gear, and i will bet the lfc kits will be class. Warrior is owned by a boston based company called new balance, who have a merchandise deal with the redsox, and a good relationship with john henry. To my knowledge this is only a one year deal and im sure the supporters voices will be heard regarding the quality of the warrior kits

  8. Only dissapointment in this is that you walk around liverpool and scousers are all wearing adidas trainees an trackies, warrior won’t catch on at all apart from the kit. But 25 mill is payin for a world class player a season so i don’t really care

  9. Everyone on here saying they don’t deserve to make our kits should take Adidas cock out of their mouth for a minute, take a breath, and realize what a deal of this size means… 25 million FUCK OFF! Do you forgot that our club was going to be the next LEEDS UNITED!! FUCK OFF!!

    Take the money and win championships bunch of fuckin poofs worried about multi-national corporations and brands.

  10. Agree with Danny in essence. So much money so I’d really not care about the rest of the jing bang.

    1. So you think that it would have been a mistake to give Coady 10 minutes last Saturday in favour of Shelvey who has already tasted Premier League football already this season? Did you think that Birmingham would overturn a 4-0 deficit with 10 minutes to go? Spearing could have gone to leftback and Coady could have slotted in with Lucas.

  11. Let’s face it The kits are all made in China from asian cloth, who cares whos logo is on it except for the sados who have to wear labels.

  12. Tonio: Do you feel that the signing of the currently injured Sylvain Marveaux is a POSITIVE signing for LFC? Bear in mind with your answer that this guy has not played since November?

        1. Well we will have to wait and see. The player has not played much as you said, however there is no doubting his quality. All depends whether he can avoid relapsing back to injury, and how he fits in with the squad. I do think it’s a gamble but he is coming on a free.
          I don’t feel I can commit much on this for the time being.

  13. Seems that this is a done deal. So much so no one has come out to deny it and am sure Adidas would have every reason too, our Club being their second best selling football brand for shirts.
    This deal has come about notwithstanding the fact that the Reds have not been successful in recent years. Because this kit company believes in the Liverpool project, and also because they have a strong association with FSG.
    This is the way forward for our sport and we need to capitalise on all such instances.

  14. Agree with Dan.

    People act like adidas makes their kit in London and Rome, employing laid off Armani designers to do the stitching.

    Here’s what will happen. The sweat shop in China were adidas made the kits will face layoffs. The same bunch of people will move 30 km away to another factory leased by Warrior and make the same kits there … and the guy who stitched the three stripes will lose hs job.

    A kit is a freaking t-shirt and shorts. It’s not a custom suit. As for the “fit”… if you’re fat, just buy XXL and if you’re a small lady, buy petite.

  15. Right, here’s the thing: the reason Liverpool sell 900k shirts a year is because of the reach of Liverpool Football Club, not because of Adidas. Couldn’t care less about who makes it, just as long as it looks good! Plus, 25 mil is a Suarez a year basically. I see no problem with Warrior supplying the kits

  16. As long as it doesn’t look Pikey and shit i’m not bollocksed.Let’s face it,as much as i love Adidas,they haven’t made any really good kits since the late 80’s.UNFORGIVABLE when they changed the logo and utterly hopeless ever since.Not that all this really matters though,i guess..

  17. I have no problems with the Warrior deal as long as the kit looks top notch.

    If anybody has been watching the Stanley Cup playoffs, you will see a ton of Warrior gear on the players. Big name players wearing their gloves and, most likely but you can’t see them, their pads. That gives me enough faith that their product will be just fine.

  18. I’d just like to add that we won’t be getting 25 mill extra, but rather 13 mill extra as Adidas pay in the region of 12 mill a year.

    Tonio do you know how these deals work after the annual payment? Does Liverpool then get a percentage of every shirt sold thereafter? Because if they don’t then who cares if Warrior sell less merchandise.

    1. Hi Steve. I don’t have that kind of detail at hand, but what is sure is that the deal is worth the money. It’s double what we get a present. Furthermore Standard Chartered will also want more exposure in the Far East where they have the bulk of their interests, and should be be able to obtain a Korean, Japanese or Chinese star to play for us then one can imagine what a boost it would be for sales.
      You have also to consider the boost in merchandising sales by the club. I am more than sure that the Club gets a cut from these sales worldwide.
      There is nothing to loose from this it’s all win-win.

  19. Agree with Ben.
    I’m from Malaysia. Adidas is very famous here and the whole of Asia. But, i bought the LFC kit not because of Adidas BUT because of Liverpool Football Club. End of.

  20. Warriors don’t have to open outlet all over the world just to sell the shirts, but there’s a way to do it with less cost. They can ask or cooperate with local fan club. Since I believe every local fan club have their own webpage, and they will more than happy to do this selling online. Yes, this is not easy to do, but this is just an idea from me >,< How to make it professional, leave it to you to think about it.

    But, I believe this will also help the grow the LFC fanbase.

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