Burrell expects much from £1.7m Kappa deal

[Karl]

Burrell expects much from £1.7m Kappa deal
ean Williams
Friday, May 09, 2008


JFF president Captain Horace Burrell says he expects the kit deal signed with Italy-based sports good giant Kappa two weeks ago in Turin, Italy, to be of great benefit to both partners in the £1.7 million 'marriage'.

"Looking at the Reggae Boyz and Kappa brands, this provides an attractive union for those who will go out and buy sports goods. And with the wide array of styles and designs to choose from, I am sure that Kappa will see a rapid growth in their sales, especially once the goods get into the European and to a lesser extent, US markets," said Burrell.

The deal, the biggest ever in the history of the Jamaican football programme, includes a signing fee, cash incentives dependent on qualification to the World Cup and CONCACAF Gold Cup, bags, apparel, footwear, etc for all nine men's and women's teams. Kappa has the option to renew after 2010.

In a breakdown of the mega deal in a JFF release, the Boyz could stand to earn a lot from incentives which are performance-based, but an upbeat Burrell said the sky is the limit.

"I am confident that we will be able to cash in on a lot of these incentives. Firstly, let's look at the Gold Cup incentive. Once we do well in the Digicel Caribbean Cup, then we will be in the Gold Cup and there's is an incentive just for that, and owing to the fact that Jamaica will be hosting the final tournament of the regional competition in December this year, it is expected that we will do well. And don't forget that players are motivated by incentives, so we expect great performances," said the CONCACAF Executive Committee member.

For qualifying for next year's Gold Cup, Jamaica could earn US$100,000 upfront, US$50,000 for advancing to the semi-finals and US$100,000 should they advance to the final.

In other aspects of the breakdown, the Boyz collected a signing fee of US$120,000, with the annual equipment supply value put at US$400,000 (additional $150,000 if the Boyz qualify for the 2010 FIFA World Cup in South Africa).

Should they qualify for South Africa, they will be paid US$350,000 upfront and US$100,000 for each game of the knockout stage. The JFF will receive royalty fees of six per cent of net turnover exceeding the US$840,000 annual threshold.

The JFF contract with Kappa covers all nine national teams - senior, U-23, U-20, U-17 and U-15 men's and the senior, U-20, U-17 and U-15 women's.

[Karl]

Gleaner EDITORIAL: Kappa deal sounds good

Kappa deal sounds good

Saturday, May 10, 2008


Sponsorship is part and parcel of modern professional sport.
Indeed, without the deep-pocketed sponsor many of the world's acclaimed and profitable sporting entities would be struggling to make ends meet.

It's against that backdrop that this newspaper believes Captain Horace Burrell and the Jamaica Football Federation (JFF) should be commended for orchestrating the recent two-year US$1.77-million kit deal with Italian manufacturing company Kappa.

The Kappa commitment has come despite the current unattractive positioning of the JFF's flagship product, the Reggae Boyz, who were ranked 103rd at the time of the signing.
They are now at an all-time low 105th on FIFA's latest list.

Let's not forget, also, that the JFF had been out of a kit sponsorship deal for almost two years, after severing ties with Uhlsport.

On April 23 when the JFF returned to Kappa, with whom it had a previous deal under the Lanzera brand, Captain Burrell claimed in this newspaper that "this has been the most attractive deal that we have ever had and I am grateful".

The truth, of course, is that Kappa's motivation here is by no means altruistic. Rather, it is a straight business decision based on enlightened self-interest. The Jamaica brand is among the globe's most attractive. This nation's natural beauty , its music, culture, sporting excellence and high-quality niche products have long ago given it a special place in the global marketplace. It's not by accident that Jamaica's tourism product has continued to thrive despite persistent high crime levels here.

Put simply, Kappa should be very confident of rich benefits from an association with Brand Jamaica. Having partnered with the JFF between 1995 and 1998, Kappa would have recognised that they are taking on board much more than the Reggae Boyz and Reggae Girlz. They would have scrutinised the numbers and come to the conclusion that a renewed partnership with Jamaica will translate to increased business and profit.

Nor should they be discouraged by Jamaica's prospects on the field. We feel confident in arguing that the low ratings do not reflect Jamaica's true football strength. Indeed, we believe that the Reggae Boyz will have a real shot at a spot in the FIFA World Cup Finals in South Africa in 2010.
All things considered, this deal feels like a boost, especially at a time when the crunch is on at the cash-strapped JFF.

The figures show that the deal includes a signing fee of US$120,000, other cash incentives dependent on qualification to the World Cup Finals (US$350,000 and US$100,000 in each knockout game) and CONCACAF Gold Cup (US$100,000 and possibly more), bags, apparel, footwear, etc for all nine men's and women's national teams.

There are royalty fees of six per cent net turnover exceeding the US$840,000 annual threshold, and there is also the annual equipment supply value of US$400,000, plus an additional US$150,000 if the Reggae Boyz qualify for the World Cup Finals.

Kappa has the option to renew in 2010.

Captain Burrell has said that the deal was achieved following rejection by numerous 'big sporting companies' which remarked that the Boyz 'were not attractive enough to be considered for a lucrative package'.
In the circumstances, we feel compelled to say "good work, Captain".