Kieran Maguire: Liverpool to turn ‘zero-cost’ deal into ‘pure profit’ after announcement
Liverpool will have spent almost nothing to produce their new ranger of digital merchandise – meaning the returns are “pure profit.”
That is the view of finance guru Kieran Maguire, speaking exclusively to Football Insider about the Merseysiders’ new deal with Meta.
Liverpool announced last Friday (14 October) that they had launched a club-branded collection of digital avatars in collaboration with the Facebook and Instagram operator.
Meta is currently developing its own metaverse, an immersive virtual reality internet experience which many analysts forecast is the next big thing in the tech industry.
Liverpool, who generated £217million in annual commercial revenue at the last count, have been enterprising in their approach to tech, as displayed by their venture into NFTs earlier this year.
Maguire explained the upsides of their latest digital deal.
“The main benefits of having a Meta-based production is that the incremental costs of production are close to zero,” he told Football Insider’s Adam Williams.
“Therefore, every piece of virtual merchandise sold is effectively pure profit which can be split between the various parties. So, you can see the benefits from Liverpool’s point of view.
“It also means that piracy in terms of traditional merchandise is far more difficult in the metaverse where you’re using digitised products.
“That, of course, means that the money you make from these things only goes to appropriate parties, i.e the club and the company with which you’ve made the deal.“
In other news, Liverpool set sights on Borussia Dortmund sensation Youssoufa Moukoko as Jurgen Klopp “blown away”.