Shirts cost £5 to make in the Far East, clubs make just 7.5% commission, Nike or Adidas grab the lions share.
Instead they pay a fixed lump sum kit deal to clubs. The Albion-Nike deal is guessed at £2.5m per year.
The profit margin on kit is very low (@El Presidente covered this in the past, when Manure fanboys exaggerated the profit in Ronaldo rejoining).
Giving a loss to the club when unsold and discounted. So it’s a dilemma to club each close season on how much to order. No one knew it was going to...