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Author Topic: Merchandise Sales  (Read 332 times)
the paw
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« on: June 28, 2020, 11:48:48 AM »

I've been looking over the financial reports for the community teams, mainly trying to understand how much teams would be expected to lose etc.  One of interesting things I observed, is that teams don't really make money from merchandise.

The Bombers bury their merch sales along with concessions, but the Esks in 2018 sold $1 million, but had the same expense for merch to offset it.  Even the mighty Rider Merchandise Machine doesn't make much.  They sold an impressive $6.8 million, but incurred $6.4 million in expenses to sell it.  That's $400k profit, but a pretty low margin on that volume of sales.

Bottom line, merchandise sales are not really a direct contributor to the bottom line.  They build the brand, and encourage viewership and ticket sales. 
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grab grass 'n growl
bluebeard
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« Reply #1 on: June 28, 2020, 02:01:01 PM »

Interesting...Wonder who is making the money.  Would be great to see a further break down on these figures.  A great way to hide expenses that you would not want to have fans and patrons see.
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the paw
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« Reply #2 on: June 28, 2020, 02:58:00 PM »

I don't think its a question of hiding figures, different teams just have different formats for their financials.

As for who is getting the money, the manufacturers probably get at least half of the retail price.  A certain amount would be stale order markdowns, (I.e the inventory of Matt Nichols jerseys).  Probably 4% to credit card and debit card companies.  A large part would go to staff, utilities, display costs and other overhead related to operating the Bomber store. 
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grab grass 'n growl
TecnoGenius
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« Reply #3 on: June 29, 2020, 05:06:45 AM »

It would be very interesting to see the actual breakdown.  I'm pretty sure WM (or was it KW?) spoke directly to the increased profit the WFC was getting due to the GC win causing increased merch sales.

I'd be shocked if WFC's merch sales were only getting them a 400k on 6.8 ratio.  You're right that the markup is at least 100% and so the only way you do poorly is if your overhead is too high or you make poor decisions and have to markdown tons of inventory because it didn't sell.

The actual profit margins might vary wildly by club and their business acumen.  I bet the Bombers do it better than most (by profit, not necessarily by revenue).  SSK might do worse because they might focus on promoting the brand (i.e. shirts being walking advertisements to sell tickets) vs raw profit on merch.
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Never go full Rider!
Throw Long Bannatyne
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« Reply #4 on: June 29, 2020, 03:45:57 PM »

It would be very interesting to see the actual breakdown.  I'm pretty sure WM (or was it KW?) spoke directly to the increased profit the WFC was getting due to the GC win causing increased merch sales.

I'd be shocked if WFC's merch sales were only getting them a 400k on 6.8 ratio.  You're right that the markup is at least 100% and so the only way you do poorly is if your overhead is too high or you make poor decisions and have to markdown tons of inventory because it didn't sell.

The actual profit margins might vary wildly by club and their business acumen.  I bet the Bombers do it better than most (by profit, not necessarily by revenue).  SSK might do worse because they might focus on promoting the brand (i.e. shirts being walking advertisements to sell tickets) vs raw profit on merch.


The Riders have or had 2 outlets in addition to their main store in Mosaic which adds greatly to their expense column, I believe they recently shut down the Saskatoon location.  Hanging on to an old business model trying to flog merchandise is poor business, there is no reason to carry that extra expense, their brand is established, people will find ways to purchase the merchandise.

Riders are forecasting a $10 million loss for this season, doesn't bode well for other CFL teams with less income.

https://www.cjme.com/2020/06/24/embargoed-until-7-p-m-biggest-financial-crisis-in-riders-history-roughriders-brace-for-economic-impact-of-covid-19/
« Last Edit: July 02, 2020, 12:28:24 PM by Throw Long Bannatyne » Logged
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