Saturday, June 09, 2012 6:35:51 PM
You already know this is going to fit UA in the scheme so if ya dont like it then click back
So Muscle Pharm releases their apparel line for $250,000 up front, and 10% annually of whatever the NET sales are. You have Drew in the Carolinas, whom the apparent privately operated company is registered to. Yet the product ships from Colorado.
Imagine for a second that Under Armour and Muscle Pharm have been in talks for some time now. If they have been then wouldn't it be a gesture of "good faith" for MP to release their apparel to their future partner, owner, or whatever you want to call it( who happens to be the authority in sports apparel) , and receive only 10% of the NET back? I know some will ask, well why only 10% why not more..
If UA truly is behind their apparel line then wouldn't it be smart for UA to take all necessary expenses out of the gross before even thinking about turning over a portion of $ to MP? Then after all expenses are paid you have whats left over and MP gets 10% of that.. and UA gets 90% for taking on this burden.. This way no matter what happens UA will not lose money on the deal. Then again isn't MP really receiving more than 10%? When an MP shirt walks in the octagon, or someone sees the logo and is intrigued, or any other type of advertising that happens due the apparel that brings in customers and brand awareness..
If MP only receives $1,000,000 off of the 10% NET then thats a total of $10,000,000 NET!!!! do yall realize how many MP logos that is, just based on the NET numbers?! At roughly $30/item on average thats 333,333 walking billboards... this number is based on NET! If you want to go off of $10M being 100% Net profit then lets say @ $30/item with gross sales there would be HALF A MILLION walking billboards(half a million i figure gross to be a little less than double the net dont have an exact number). FREE ADVERTISING... HELL PEOPLE ARE PAYING TO ADVERTISE YOUR PRODUCT!!
Everybody wins. MP receives a lump sum whenever it is they get paid. UA receives a nice check for their troubles, and good faith, and MP is advertised.
Envision this scenario.. The 2 future partners are sitting around the table and doing whatever future partners do.. and they realize how much of an undertaking its going to be to fully operate the supplement side and the apparel side.(as we have all seen, the supplement side has taken its effect) UA steps up and says, "ya know what we'll take care of the apparel. All we have to do is register the apparel to some guy, and make it a separate private entity... then we won't have to answer to anyone. And then they work out the above mentioned deal to figure out how to get everyone getting something out of the deal..
Just some food for thought.. How cool would it be.... I mean my speculative reasoning is just as good as any speculative reasoning right?!
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