
On entering the Kraken Opus offices, in the centre of the City and within sight of St Paul's, one is immediately introduced to this publisher's niche. Signed football shirts hang in frames. A number of staff work beneath a large plasma screen relaying the latest sports news. A photographer assembles his equipment. Sporting memorabilia litters the offices, including glossy red components of an F1 car. And a colossal book, some 4ft high, 4ft wide and 1ft in depth, dominates the boardroom desk…
These enormous books are the USP of the Kraken concept. These are large format titles with a difference: they are limited edition, aimed at the wealthy sports enthusiast and each is the size of a coffee table!
Kraken is a heady combination of wealth, sporting success, and the luxury end of the publishing market. It culminates in physically enormous, limited edition titles on subjects with well-established, worldwide followings – Manchester United, Wimbledon, the Super Bowl, Maradonna, Muhammad Ali, Celtic -- and cost from upwards of £3000 (for a normal edition) to literally £1 million for a special limited edition (a £1 million Manchester United edition, to be precise, purchased by wealthy Gulf investors).
Kraken Opus was started in 2005 by former derivatives trader and tax expert, Karl Fowler. With a successful career in finance with Morgan Stanley and Goldman Sachs, I wondered what had brought him to realise his publishing venture. Was it love or money?
'Both. I love photography, I collect first editions. The sports autobiographies around are not even written by sportspeople, they are ghost-written, cheap, nothing between the covers, poorly produced. I wanted to produce material not seen before; telling a story in an unprecedented way. The market was a factor – there is clearly an appetite for a high-end, collectable first edition. To justify the price that we charge, we had to be offering a certain level of integrity and exclusivity.'
From just looking at the physical dimensions of these books, it is immediately apparent that every one is the culmination of costly investment. Not just in monetary terms, but in labour, time and production. Each title tops the scales at around 35kg, with a minimum of 850 pages and print runs ranging from just under 1,000 up to around 10,000. A high proportion of the £3m budget for each title is spent on commissioning. The writing function is outsourced, with well-known writers such as David Halberstam, Jim White, Hugh McIlvanney and James Lawton signed up to produce editorial for the books. The production and research teams are based inhouse.
The printing of these titles is carried out in China by Artorm, a company cleared by the International Olympic Committee to produce material for the 2008 Chinese Olympics. This print partner was apparently chosen by Kraken solely on the basis of their production values. The company also agreed to set aside an annex, on their printing operation, to house three more Heidelberg's to focus on the demands of the Kraken product. Size necessitates the Kraken products have to be hand-bound.
So how does Fowler see Kraken adding value to subjects already so well-documented? After all, there are already so many established titles on the market concerning the larger football clubs. A search of Amazon displays 64 titles for Celtic alone; there are hundreds of titles for Manchester United.
'The images are unique. 50% of the photographs have never been published before and the pages bear the signatures of the sportsmen central to the story. We will turn down offers to have them printed again. For example, they will not go to newspapers. The Manchester United title was composed of 75% of original photographs, it is creative storytelling. These are the minimum requirements.'
Looking at the Kraken products online, I noticed several have unusual methods of adding value, each of which seems destined to feed headlines and publicity. For example, the first 100 copies of the Maradonna title will have samples of his blood and hair, with a profile of his DNA inside the cover. The first copy of the forthcoming title on the musician Prince will have his emblem in platinum on the cover, inlaid in that will be a number of purple diamonds. I wonder if these extras do the titles justice: do they add to them, or do they in fact detract from taking the content seriously? I would hope that for most people it will be the former, and the hard work that has gone in to create the editorial and images does not get overshadowed.
How did they secure the services of such sporting luminaries as Alex Ferguson and Bobby Charlton early on, and convince them to cooperate with the mass signings and book promotion? Fowler is not forthcoming with remuneration, but adds:
'We approached Manchester United and explained this side of the club's story has never been told before. Manchester United wanted to be involved and tell their story from this perspective.'
Focussing on high-priced titles alone in the current economic climate certainly seems risk-laden to me, especially as the core market of wealthy people are even more conscious of where their money is invested. Fowler was optimistic: '25% of these books are bought as gifts. The economy is in a sticky situation but books are an investment. Look at the 1930s and the Great Depression, Hollywood was created as an escape from reality. These books can be the same.'
Are these the most challenging times for the company?
'Yes, but in terms of how do we scale up? The last 2 years have been important, but now is the most challenging. 20 deals have just been signed, and Michael Jackson has just signed a deal. We are soon publishing an Opus on Sachin Tendulkar, the Indian cricketer. It takes around 3 years to bring each one to the market.'
What are the future plans for Kraken?
'We've just opened in LA and Dubai. I want to float the business in London or on the NASDAQ. I want to raise capital to a new level. We're also looking at different media platforms: an e-version of titles; a tv channel; a radio channel which concentrates only on historical sporting content. There is a natural linkage between the two, and the publishing side of the business was always a platform to leap into other genres anyway.'
What to think of the Kraken business model? One must certainly acknowledge Fowler's initiative, enterprise and financial might. The subjects have guaranteed audiences, and the professional sports world which Fowler was well acquainted with as a tax advisor is certainly cash rich. Kraken bucks several trends in the publishing industry: in terms of staying with print, and avoiding digitalisation; in using vast quantities of paper and shipping the product from one part of the globe to the other; and in the high financial stakes involved (from commissioning to production to retail price) against the backdrop of a turbulent economy. It is hard to think of competitors in this market.
I am part of the majority that will never be in a position to purchase a Kraken Opus. Am I at a disadvantage at not being a part of this glamour, this exclusivity? After all, I am an avid Manchester United fan (just don’t talk to me about the European final!) and I treasure rare books. For the answer to this I have to go back to 2000. Whilst researching a dissertation for a publishing course at Stirling University, I was given a private viewing of a complete set of John James Audubon’s Birds of America in the John Rylands Library, Manchester. The thrill Audubon's books gave me has never been replicated since, I doubt any modern exclusive book would provide that experience, and that was before I was told by the librarian of their worth (£5m for each volume of the set). And it didn’t cost me a penny.
Perhaps there is a lesson to be found here: young publishers, in our clamour to gain technical skills, should not neglect the opportunity to develop our understanding of real intrinsic value. We should be all the more prepared to serve our markets well. The right product at the right cost goes a long way to achieving this. Integrity in publishers is a necessity when adding value.
For me the question remains: do these amounts truly reflect the value of the Kraken product? Do quantities of original photographs, famous writers and famous names in the sporting and entertainment world justify these retail prices? That is for the investor to decide. These are lavish books aimed at lavish pockets, and Kraken pitch their products well to this most exclusive of markets.
These enormous books are the USP of the Kraken concept. These are large format titles with a difference: they are limited edition, aimed at the wealthy sports enthusiast and each is the size of a coffee table!
Kraken is a heady combination of wealth, sporting success, and the luxury end of the publishing market. It culminates in physically enormous, limited edition titles on subjects with well-established, worldwide followings – Manchester United, Wimbledon, the Super Bowl, Maradonna, Muhammad Ali, Celtic -- and cost from upwards of £3000 (for a normal edition) to literally £1 million for a special limited edition (a £1 million Manchester United edition, to be precise, purchased by wealthy Gulf investors).
Kraken Opus was started in 2005 by former derivatives trader and tax expert, Karl Fowler. With a successful career in finance with Morgan Stanley and Goldman Sachs, I wondered what had brought him to realise his publishing venture. Was it love or money?
'Both. I love photography, I collect first editions. The sports autobiographies around are not even written by sportspeople, they are ghost-written, cheap, nothing between the covers, poorly produced. I wanted to produce material not seen before; telling a story in an unprecedented way. The market was a factor – there is clearly an appetite for a high-end, collectable first edition. To justify the price that we charge, we had to be offering a certain level of integrity and exclusivity.'
From just looking at the physical dimensions of these books, it is immediately apparent that every one is the culmination of costly investment. Not just in monetary terms, but in labour, time and production. Each title tops the scales at around 35kg, with a minimum of 850 pages and print runs ranging from just under 1,000 up to around 10,000. A high proportion of the £3m budget for each title is spent on commissioning. The writing function is outsourced, with well-known writers such as David Halberstam, Jim White, Hugh McIlvanney and James Lawton signed up to produce editorial for the books. The production and research teams are based inhouse.
The printing of these titles is carried out in China by Artorm, a company cleared by the International Olympic Committee to produce material for the 2008 Chinese Olympics. This print partner was apparently chosen by Kraken solely on the basis of their production values. The company also agreed to set aside an annex, on their printing operation, to house three more Heidelberg's to focus on the demands of the Kraken product. Size necessitates the Kraken products have to be hand-bound.
So how does Fowler see Kraken adding value to subjects already so well-documented? After all, there are already so many established titles on the market concerning the larger football clubs. A search of Amazon displays 64 titles for Celtic alone; there are hundreds of titles for Manchester United.
'The images are unique. 50% of the photographs have never been published before and the pages bear the signatures of the sportsmen central to the story. We will turn down offers to have them printed again. For example, they will not go to newspapers. The Manchester United title was composed of 75% of original photographs, it is creative storytelling. These are the minimum requirements.'
Looking at the Kraken products online, I noticed several have unusual methods of adding value, each of which seems destined to feed headlines and publicity. For example, the first 100 copies of the Maradonna title will have samples of his blood and hair, with a profile of his DNA inside the cover. The first copy of the forthcoming title on the musician Prince will have his emblem in platinum on the cover, inlaid in that will be a number of purple diamonds. I wonder if these extras do the titles justice: do they add to them, or do they in fact detract from taking the content seriously? I would hope that for most people it will be the former, and the hard work that has gone in to create the editorial and images does not get overshadowed.
How did they secure the services of such sporting luminaries as Alex Ferguson and Bobby Charlton early on, and convince them to cooperate with the mass signings and book promotion? Fowler is not forthcoming with remuneration, but adds:
'We approached Manchester United and explained this side of the club's story has never been told before. Manchester United wanted to be involved and tell their story from this perspective.'
Focussing on high-priced titles alone in the current economic climate certainly seems risk-laden to me, especially as the core market of wealthy people are even more conscious of where their money is invested. Fowler was optimistic: '25% of these books are bought as gifts. The economy is in a sticky situation but books are an investment. Look at the 1930s and the Great Depression, Hollywood was created as an escape from reality. These books can be the same.'
Are these the most challenging times for the company?
'Yes, but in terms of how do we scale up? The last 2 years have been important, but now is the most challenging. 20 deals have just been signed, and Michael Jackson has just signed a deal. We are soon publishing an Opus on Sachin Tendulkar, the Indian cricketer. It takes around 3 years to bring each one to the market.'
What are the future plans for Kraken?
'We've just opened in LA and Dubai. I want to float the business in London or on the NASDAQ. I want to raise capital to a new level. We're also looking at different media platforms: an e-version of titles; a tv channel; a radio channel which concentrates only on historical sporting content. There is a natural linkage between the two, and the publishing side of the business was always a platform to leap into other genres anyway.'
What to think of the Kraken business model? One must certainly acknowledge Fowler's initiative, enterprise and financial might. The subjects have guaranteed audiences, and the professional sports world which Fowler was well acquainted with as a tax advisor is certainly cash rich. Kraken bucks several trends in the publishing industry: in terms of staying with print, and avoiding digitalisation; in using vast quantities of paper and shipping the product from one part of the globe to the other; and in the high financial stakes involved (from commissioning to production to retail price) against the backdrop of a turbulent economy. It is hard to think of competitors in this market.
I am part of the majority that will never be in a position to purchase a Kraken Opus. Am I at a disadvantage at not being a part of this glamour, this exclusivity? After all, I am an avid Manchester United fan (just don’t talk to me about the European final!) and I treasure rare books. For the answer to this I have to go back to 2000. Whilst researching a dissertation for a publishing course at Stirling University, I was given a private viewing of a complete set of John James Audubon’s Birds of America in the John Rylands Library, Manchester. The thrill Audubon's books gave me has never been replicated since, I doubt any modern exclusive book would provide that experience, and that was before I was told by the librarian of their worth (£5m for each volume of the set). And it didn’t cost me a penny.
Perhaps there is a lesson to be found here: young publishers, in our clamour to gain technical skills, should not neglect the opportunity to develop our understanding of real intrinsic value. We should be all the more prepared to serve our markets well. The right product at the right cost goes a long way to achieving this. Integrity in publishers is a necessity when adding value.
For me the question remains: do these amounts truly reflect the value of the Kraken product? Do quantities of original photographs, famous writers and famous names in the sporting and entertainment world justify these retail prices? That is for the investor to decide. These are lavish books aimed at lavish pockets, and Kraken pitch their products well to this most exclusive of markets.



