Basketball boy, starting to shine from the slam dunk

A lifetime contract, an endorsement fee worth 2.1 million yuan, and a 10% equity dividend of the Yu series brand. If such conditions are not enough to impress Zhuang Yu, Li Chengdong really doesn’t know what will.

Li Chengdong's face was almost wrinkled like a bun.

When he saw Zhuang Yu and Zhou Zhiming finished reading it, he immediately asked, "Zhuang Yu, and Mr. Zhou, what do you think of this contract?"

Zhou Zhiming looked at Zhuang Yu, who nodded at him. Zhou Zhiming said, "We feel the sincerity of Anta from this contract. We also sincerely want to continue cooperating with Anta, but..."

Again.

Hearing the word "but", Li Chengdong's heart skipped a beat and he smiled bitterly. He was afraid of this kind of turn.

Zhou Zhiming continued, "However, we hope to continue our cooperation in another way."

Li Chengdong smiled bitterly and said, "I'm not afraid of you laughing at me. This is really the greatest sincerity that our Anta company can give. Ladies and gentlemen, this contract has already..."

Before he could finish, Zhou Zhiming interrupted and said, "You misunderstood. I wanted to change the way of cooperation, not that this contract is bad."

What do you mean?

Li Chengdong was a little confused.

"That's right." Zhou Zhiming said directly: "We hope to have long-term cooperation with Anta, grow together, and achieve mutual benefit and win-win results. So we are willing to make some concessions on the endorsement fee. An average of 3000 million US dollars per year will be enough."

"Also, we hope that this contract can be signed for five or six years, rather than a lifetime contract."

"When this contract expires, Anta will have more options, whether to renew the contract with Zhuang Yu, terminate the contract, or sign a lifetime contract. All these can be discussed, and Anta still has the priority to renew the contract."

Hearing these words, Li Chengdong was stunned.

He just looked at Zhou Zhiming and Zhuang Yu in astonishment. He thought that Zhuang Yu and Zhou Zhiming felt that the contract was not enough and wanted to bargain.

But how can you bargain like this? Why don't you raise the price but cut it for yourself?

You know, Nike offered Zhuang Yu a 10-year, US$3.4 million contract, with an average annual endorsement fee of US$3400 million. But Zhuang Yu now only wants US$3000 million, which is a full US$400 million less per year on average, and he only signed for 5 or 6 years.

Everyone understands the rules. If the contract period is long enough, the total contract amount can be lowered. After all, if the contract period is long enough, it can better protect the interests of the players, and the brand will take greater risks.

This is the same principle as the contracts signed between NBA players and teams.

If the contract is signed for a shorter period of time, the average annual salary can be higher. After all, even if something unexpected happens, the shorter the contract period, the better it can protect the interests of the team, while the risks to the players are greater.

Logically speaking, if Zhuang Yu does not want to sign a lifetime contract and is only willing to sign for 5 or 6 years, then the asking price should be higher than the average of 3400 million per year.

Why is it lower?

I don't understand!

However, Li Chengdong reacted quickly. He was also a smart man and knew that there was no such thing as a free lunch. Zhuang Yu and Zhou Zhiming were certainly not fools.

So, there must be other conditions.

Zhou Zhiming continued, "But we have one condition. We want to obtain 12% of the equity of the 'Yu Series' brand. Please note that it is equity, not dividend rights."

what?

Li Chengdong was shocked. He wondered if he had heard wrongly and couldn't help asking, "You just said 12% of the equity, not the dividend right, right?"

"You heard it right." Zhou Zhiming said, "We want to obtain 12% of the shares of the Yu series brand, not the right to dividends. Zhuang Yu wants to become a shareholder of the Yu series brand."

"This..." Li Chengdong felt a headache and smiled bitterly, "You two, this request is a bit excessive. If it's just the right to dividends, 12% is not impossible, we can still negotiate, and the endorsement fee can also be negotiated. But if you want equity, it will be difficult for us at Anta to agree."

At this time, Zhou Zhiming said, "If it's just the right to dividends, then it's meaningless for us to actively lower the endorsement fee. I heard that you have been asking about the offers made by Nike, Adidas, and Under Armour to Zhuang Yu these days. I wonder if you have found out. I can reveal one thing. Under Armour has agreed to give Zhuang Yu a 0.8% equity dividend, including an endorsement contract with a total value of over 3 million US dollars."

hiss......

Li Chengdong and his subordinates couldn't help but gasp. Is Under Armour crazy?

Zhou Zhiming continued, "Please note that the 0.8% equity dividend I'm talking about is for the entire Under Armour company, not just a certain product line or brand. The Yu series has only been independent from Anta for less than two years and is still in its infancy. Even if the Hyundai Yu series brand has a 12% equity dividend, it may not be as good as the 0.8% equity dividend of Under Armour. Am I right?"

"This..." Li Chengdong could not refute, and could only say: "But this is only temporary. The Yu series has a strong momentum of development and a bright future. As long as there are a few more years, I believe that the value of the Yu series brand will increase exponentially. By then..."

Before he could finish, he was interrupted again.

This time it was Zhuang Yu who interrupted him: "Mr. Li, I also believe in Anta and am optimistic about the future development prospects of the Yu series brand, so I proposed this signing method. I can grow together with Anta and the Yu series brand to achieve a win-win situation."

Li Chengdong frowned and thought for a long time, but could only smile bitterly: "Zhuang Yu, your idea is very novel, but we have never tried it before, and I can't make the decision. I can only report it to the headquarters and see what they think."

Zhuang Yu nodded: "How about this, to show my sincerity, I am willing to sign a bet agreement with Anta. If I can get the regular season MVP or the championship during the next contract period, I can get 10% of the shares of the Yu series brand. If I can win the regular season MVP or the championship more than once, I can get 12% of the shares of the Yu series brand. If I fail to get an MVP or a championship during the next contract period, then I only want 8% of the shares of the Yu series brand."

Hearing about the gambling agreement, Li Chengdong raised his eyebrows. He didn't believe that Zhuang Yu suddenly thought of signing a gambling agreement. He must have thought about it a long time ago.

But this is a bit too bold.

How old is he, and how dare he play a gambling agreement?

At this time, Zhou Zhiming reminded him again: "Mr. Li, don't forget that the shortest you can sign is only 5 years, and it is not easy for Zhuang Yu to do all these in 5 years. Also, he only wants the equity of the Yu series brand, not the equity of Anta. Don't talk about what will happen to the Yu series brand in the future. That is a matter for the future, and no one can predict it. The current Yu series brand is not as good as before. I think this is not too much, right?"

Li Chengdong showed no expression on his face, but he agreed with what was said in his heart.

Considering the current value of the Anta series of brands, Zhuang Yu’s request is not excessive, not to mention there is a bet agreement. If Zhuang Yu fails to do so, then Anta will make money.

Despite this, Li Chengdong could not agree.

This was very different from their previous ideas, and what Zhuang Yu wanted now was not just the right to dividends, but real equity, which he had no say in.

So in the end, Li Chengdong could only say that he needed to discuss with the headquarters and would give Zhuang Yu a reply as soon as possible, and then both parties left.

......

In the car.

Zhuang Yu and Zhou Zhiming sat in the back seat.

Zhuang Yu smiled and asked, "Uncle Zhou, your price is even higher than mine. An annual fee of 2900 million US dollars, plus 12% of the shares of the Yu series brand, do you think Anta will agree to it?"

"will not."

"Uh......"

Zhou Zhiming's answer was very straightforward, which surprised Zhuang Yu. Then Zhou Zhiming smiled and explained, "If you ask for a high price, you should pay back on the spot. Anta will definitely not agree to our price directly, but we can still negotiate. Anyway, as long as the overall framework remains unchanged, that is, the average annual fee is more or less, and the equity is more or less, I don't ask for a high price, how can I negotiate with the other party later."

Zhuang Yu also laughed: "That's the truth."

......

at the same time.

Zhou Zhiming had already started a video conference with the headquarters. He reported the requests of Zhuang Yu and Zhou Zhiming, and then stopped talking.

Because it's not up to him to decide.

No one else spoke. After a long while, someone spoke up: "We can't agree to this condition. The average annual endorsement fee can be higher, even matching the offer standards given by Nike or Adidas, but we can't give you the equity."

Another person also said: "That's what I mean. We can give them dividend rights, but not equity. We can take back the dividend rights as soon as the contract expires. If we give them equity, what if they sell it directly when the contract expires?"

"Or maybe he didn't sell it, but after the contract ended, Zhuang Yu chose to sign with another competing company, but still held the shares of our Yu series. What's going on?"

Immediately, others echoed.

The main issue is equity. They can accept dividend rights, but find it difficult to accept equity. There is no precedent for this.

Even Michael Jordan only owned 5% of the permanent dividend rights of the AJ series, not 5% of the equity.

Listening to everyone's words, Li Chengdong felt a little conflicted, but he finally spoke up: "There is a bet agreement for this equity. If Zhuang Yu loses the bet, then he can only get 8% of the equity at most. And I think the amount of this equity can be discussed again. For example, if Zhuang Yu loses the bet, then he can only get 5% or 6%."

He still hopes to renew his contract with Zhuang Yu.

Because he got the position of vice president because of Zhuang Yu. If the renewal fails in the end, what will the point of promoting him as vice president be?

He promoted you to vice president, but failed to get things done. How is he going to explain this to the company, and to so many leaders and colleagues?

What's more, he and Zhuang Yu had cooperated very happily in the past few years. He had also watched Zhuang Yu rise step by step, and he still had considerable confidence in Zhuang Yu.

Then as long as he can successfully renew the contract with Zhuang Yu, he can still hold on to Zhuang Yu, this cash cow, in the next few years, and the benefits will naturally be great.