I agree that the two companies are starting the same, a new brand with a revolutionary new bat shape. However Woodworm got lucky as they were pre IPL and even though they paid the highest price seen to sponsor Flintoff and Pietersen it was not as much as the going rate now, plus the sponsored players came very good in the highest profile series we have seen in modern times. Woodworm's market share was huge and they were doing very well. They then pressed ahead with expansion beyond their limitations including a massively expensive move into golf. The servicing of the debt owed became bigger than their profits and led to a firesale which lowered their value and sent them down in a vicious cycle.
Their is not as much profit in brand ownership as some might think, Adidas and Nike are not in the market for money from cricket kit, they are merely seeking to enhance their image and also piggyback the surge in wealth in India. I have been told directly that Adidas could sponsor every member of the England team for less than one high profile football player, they would get much better publicity from it but will not make more money from it.
That is why I think it will be very hard for the middle size cricket only brands to survive an onslaught from multi billion pound companies looking to increase their brand awareness.
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Topic: Joda Sports? (Read 9143 times)