Chapter 727: Nike's VAM contract takes effect
After arranging the affairs of Shengtang's side, Sun Mingren drove back to Stanford with Liu Lang and Sun Hu, Liu Donglai and his wife and children had already gone home yesterday, and the villa was very clean after not living for more than a month, because Xu Wenxiu hired two cleaners in Chinatown when he left, and they came to clean the villa every three days, they were all Chinese introduced by Moran, and they usually made a living by working, Xu Wenxiu's salary for the two was 3,000 US dollars per person, which was 1,000 US dollars higher than the standard salary, such a high salary was already equivalent to the salary of white-collar workers in the United States。
Liu Lang came home at noon, and Knight came up at about two o'clock in the afternoon, obviously there was his "eyeliner" in the Shengtang company.
Because of Liu Lang's relationship, Knight is very familiar with many people in Shengtang Company, that is, the shoes worn by Qin Huo, the actor in Transformers, are Nike, which can be regarded as an invisible advertisement for Nike, and the computers used in Transformers are also Wanan computers, they are all "Liu Lang".
In fact, Nike's headquarters is in Silicon Valley, less than 20 kilometers from Stanford University, and Knight chats with Liu Lang when he is fine, and he always sees each other every month.
"Liu Lang, how was the summer vacation?"
Knight sat on the couch, and Liu Donglai made him a cup of tea.
"Thank you, Donglai!"
Knight said politely in Chinese, because he was always in contact with Liu Lang's family, his current Chinese level has reached "level 6".
"Alright, Phil, how's the company's sales now?"
Liu Lang is the third largest shareholder of Nike, but he is only responsible for design, and basically does not ask about other things, and even Nike rarely goes.
Many people think that the growth and rise of Nike is the result of Liu Lang's magical design, only Liu Lang knows that even if there is no other family, it will be the world's largest sporting goods company in the future, with a market value of more than 200 billion, in fact, he took advantage of the other party, so he has no doubt about Knight's ability at all.
The fourth generation of Jordan has released its latest advertisement, and the effect is very good, and it is expected to sell more than one million pairs a month after it is launched.
In addition, the pre-sale advertisement of the second generation of "Runner" has just been released, and the number of pre-orders has reached 3 million, and it is expected that the sales of this shoe will exceed 4 million pairs in a month! Now the sales of our runner have surpassed the sales of Jordan's "Flyer" series, which is good news!
The "Flyer" series of sneakers is now Nike's main hit in the basketball field, but Knight has always been a little worried, worried that this shoe will give Jordan the capital to bargain with Nike, so this year, Nike's marketing efforts to "Runner" running shoes are greater than that of the "Flyer" series, and now it has worked.
"Well, that's right, we can't let those athletes have the ability to influence us, Jordan is hot, but he lacks personal honors, and without these honors, he is not qualified to negotiate with us!"
Liu Lang said immediately.
Knight was stunned when he heard this, Liu Lang immediately understood what he meant, this comprehension ability is too good.
Liu Lang knows what kind of person Jordan is too well, "God of Basketball" is the title given to him by later generations, and his achievements in basketball are enough to deserve it, but how his character is is seen by the benevolent and the wise, and the title of "old rascal" in later generations is enough to explain the problem, good gambling and stinginess are the truth, so Liu Lang only admires him very much in basketball, and forget it in other aspects, "old hooligans" are polite.
In the previous life, the brand "Flying Man" was designed by Jordan himself, becoming a separate subsidiary, and he accounted for the majority of the shoes sold, but in this life, this brand was founded by Liu Lang, which is the brand of Nike's own company.
"Liu, you are so smart, you got to the point at once, this Jordan is going to renegotiate the contract with us, saying that he wants to enjoy 30% of the sales profit of the "Flyer" brand, I rejected him on the spot, I can give you more money in the next contract, but the brand has nothing to negotiate!"
"That is, this brand belongs to Nike, it doesn't matter to him, this is the bottom line, it can't be used as a bargaining chip at all, but we still have to try to keep him, we can't negotiate with him until we have to, it's a big deal to give him six million dollars a year for the next contract!"
Liu Lang said.
"Haha, Liu, let's think of going together, the result of our final negotiation is to negotiate a five-year contract with 30 million US dollars, the effective period is after this contract, that is, 91 years, this contract is already the highest contract in the entire sports world, enough to show our sincerity.
And there are additional conditions, such as another five million for him to win the championship, two million for winning the regular season "MVP", and five million dollars for winning the championship, that is, he may get $40 million in five years. ”
$40 million in five years was sky-high in the NBA in the 80s, and now the league's highest annual salary Magic Johnson gets about $2 million a year, Jordan signed a new five-year contract with the Bulls last year, with an average annual salary of 1.3 million per year, a total of only more than 6 million, which is incomparable with Nike.
Jordan signed such a big contract, I'm afraid I'm still secretly glad now, but he doesn't know that the NBA has developed at a very rapid pace under the leadership of Stern, and by the mid-nineties, the NBA league will become a world-renowned event, and at that time, the wages of athletes will increase significantly, and it is not uncommon for annual salaries to exceed 10 million, and advertising endorsements will be much higher, but who knows what will change in the future except Liu Lang?
"Liu, I also brought you a new contract this time, if you have no opinion, sign it!"
Knight took out a contract and put it in front of Liu Lang.
"Contract? What kind of contract?"
Liu Lang took it and took a look, it turned out to be his contract with Nike.
Liu Lang and Nike signed a contract three years ago, Nike and Liu Lang cooperated, giving him six percent of the shares, this is the lowest line, and there is a gambling contract, that is, Liu Lang will increase Nike's sales by 12 times within six years, and Nike's sales volume is about 10 million US dollars in 83 years, which means that the company's sales will reach 120 million US dollars by 90 years, once this goal is achieved, Liu Lang will own 10% of Nike's shares, and this is the contract for Nike to transfer another 5% of the shares.
"Oh, Phil, so you've already sold $120 million this year?"
"No, it will reach 100 million US dollars in September, but there are still three months before the end of the year, and I believe that it will be easy to achieve 20 million in these three months, so let's celebrate it in advance!"
Knight said, spreading his hands.