copyright 1999 prentice hall 8-1 lesson 6.2 – licensing copyright © 2014 by sports career...

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Copyright 1999 Prentice Hall 8-1 Lesson 6.2 – Licensing Copyright © 2014 by Sports Career Consulting, LLC

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Page 1: Copyright 1999 Prentice Hall 8-1 Lesson 6.2 – Licensing Copyright © 2014 by Sports Career Consulting, LLC

Copyright 1999 Prentice Hall

8-18-1

Lesson 6.2 – Licensing

Copyright © 2014 by Sports Career Consulting, LLC

Page 2: Copyright 1999 Prentice Hall 8-1 Lesson 6.2 – Licensing Copyright © 2014 by Sports Career Consulting, LLC

Licensing

The 2014 report shows growth in nearly every licensing category, with entertainment, trademark/brands, fashion and sports merchandise being the key revenue drivers. These four broad-based categories together represented 94 percent of all licensed revenues last year.

LESSON 6.2

Branding & Licensing

Copyright © 2014 by Sports Career Consulting, LLC

Sales of licensed products climbed for the third consecutive year in 2013, according to the International Licensing Industry Merchandisers’ Association’s 2014 Licensing Industry Survey.

Page 3: Copyright 1999 Prentice Hall 8-1 Lesson 6.2 – Licensing Copyright © 2014 by Sports Career Consulting, LLC

2013 worldwide retail sales leaders of licensed merchandise

Character related merchandise - $51.44 billion

Corporate brands - $22.5 billion

Fashion - $16.9 billion

Sports - $12.8 billion

LESSON 6.2

Branding & Licensing

Copyright © 2014 by Sports Career Consulting, LLC

Licensing

Page 4: Copyright 1999 Prentice Hall 8-1 Lesson 6.2 – Licensing Copyright © 2014 by Sports Career Consulting, LLC

Licensing

Sports teams and athletes may have licensing agreements with product manufacturers

Licensing:

Refers to an agreement which gives a company the right to use another’s brand name, patent, or other intellectual property for a royalty or fee

LESSON 6.2

Branding & Licensing

Copyright © 2014 by Sports Career Consulting, LLC

Page 5: Copyright 1999 Prentice Hall 8-1 Lesson 6.2 – Licensing Copyright © 2014 by Sports Career Consulting, LLC

The licensor is the company or individual granting the license

Copyright © 2014 by Sports Career Consulting, LLC

LESSON 6.2

Branding & Licensing

Examples of licensors:

Page 6: Copyright 1999 Prentice Hall 8-1 Lesson 6.2 – Licensing Copyright © 2014 by Sports Career Consulting, LLC

The licensee the company or individual paying for the rights to use the licensor’s name or property

Copyright © 2014 by Sports Career Consulting, LLC

LESSON 6.2

Branding & Licensing

Examples of licensees:

Page 7: Copyright 1999 Prentice Hall 8-1 Lesson 6.2 – Licensing Copyright © 2014 by Sports Career Consulting, LLC

Copyright © 2014 by Sports Career Consulting, LLC

LESSON 6.2

Branding & Licensing

Licensee Examples

Page 8: Copyright 1999 Prentice Hall 8-1 Lesson 6.2 – Licensing Copyright © 2014 by Sports Career Consulting, LLC

Copyright © 2014 by Sports Career Consulting, LLC

LESSON 6.2

Branding & Licensing

Licensee Examples

Page 9: Copyright 1999 Prentice Hall 8-1 Lesson 6.2 – Licensing Copyright © 2014 by Sports Career Consulting, LLC

Copyright © 2014 by Sports Career Consulting, LLC

LESSON 6.2

Branding & Licensing

Licensee Examples

Page 10: Copyright 1999 Prentice Hall 8-1 Lesson 6.2 – Licensing Copyright © 2014 by Sports Career Consulting, LLC

Copyright © 2014 by Sports Career Consulting, LLC

LESSON 6.2

Branding & Licensing

Licensee Examples

Page 11: Copyright 1999 Prentice Hall 8-1 Lesson 6.2 – Licensing Copyright © 2014 by Sports Career Consulting, LLC

The 3 P’s of licensing include:

Profit

Promotion

Protection

Licensing

LESSON 6.2

Branding & Licensing

Copyright © 2014 by Sports Career Consulting, LLC

Page 12: Copyright 1999 Prentice Hall 8-1 Lesson 6.2 – Licensing Copyright © 2014 by Sports Career Consulting, LLC

Licensed products and merchandise are not manufactured by leagues, teams or schools, but rather by independent companies under an agreement with a sports entity

LESSON 6.2

Branding & Licensing

Copyright © 2014 by Sports Career Consulting, LLC

Licensing and Merchandise

Page 13: Copyright 1999 Prentice Hall 8-1 Lesson 6.2 – Licensing Copyright © 2014 by Sports Career Consulting, LLC

Licensed products can be extremely lucrative

Licensing

LESSON 6.2

Branding & Licensing

Copyright © 2014 by Sports Career Consulting, LLC

Page 14: Copyright 1999 Prentice Hall 8-1 Lesson 6.2 – Licensing Copyright © 2014 by Sports Career Consulting, LLC

In 2012, sales of licensed New York Yankees-branded fragrances exceeded Macy’s (exclusive retailer of the product) initial projections by 40 percent, prompting the company to signifcantly increase the number of stores in which the cologne/perfume was available (industry analysts estimated sales in the $12 million to $14 million range)

Licensing

LESSON 6.2

Branding & Licensing

Copyright © 2014 by Sports Career Consulting, LLC

Page 15: Copyright 1999 Prentice Hall 8-1 Lesson 6.2 – Licensing Copyright © 2014 by Sports Career Consulting, LLC

LESSON 6.2

Branding & Licensing

Copyright © 2014 by Sports Career Consulting, LLC

Licensing

In 2014, the quarterback of the Super Bowl winning Seattle Seahawks bolted up the charts in the sales of licensed goods featuring his likeness, jumped 18 spots on the NFL Players Inc. list (which said sales of all individually licensed product sales surpassed $1 billion last year) and surpassing Peyton Manning as the highest selling NFL player.

Page 16: Copyright 1999 Prentice Hall 8-1 Lesson 6.2 – Licensing Copyright © 2014 by Sports Career Consulting, LLC

Over the span of Star Wars' lifetime, $20 billion and counting of licensed goods has been sold, this on top of the $4.4 billion in tickets and $3.8 billion in home entertainment products

Licensing

LESSON 6.2

Branding & Licensing

Copyright © 2014 by Sports Career Consulting, LLC

Page 17: Copyright 1999 Prentice Hall 8-1 Lesson 6.2 – Licensing Copyright © 2014 by Sports Career Consulting, LLC

LESSON 6.2

Branding & Licensing

Copyright © 2014 by Sports Career Consulting, LLC

Licensing

Despite debuting in the fall of 2013, analysts are already anticipating sales of licensed goods featuring characters from Disney’s blockbuster film, Frozen, will generate $1 billion annually for the company

Page 18: Copyright 1999 Prentice Hall 8-1 Lesson 6.2 – Licensing Copyright © 2014 by Sports Career Consulting, LLC

LESSON 6.2

Branding & Licensing

Copyright © 2014 by Sports Career Consulting, LLC

The LA Kings set an all-time Staples Center merchandise sales record during the clinching game of the Stanley Cup (and the day after) by selling $2.5 million in licensed gear — and that was just in the arena store

 Fans spend a reported $2.9 billion a year on National Football League merchandise

Licensing

Page 19: Copyright 1999 Prentice Hall 8-1 Lesson 6.2 – Licensing Copyright © 2014 by Sports Career Consulting, LLC

LESSON 6.2

Branding & Licensing

Copyright © 2014 by Sports Career Consulting, LLC

Total NBA product sales last year were about $3 billion

Back-to-back Rose Bowl appearances meant big business for the Wisconsin Badgers as sales of licensed merchandise hit $3.3 million in 2011, an all-time school record

Licensing

Page 20: Copyright 1999 Prentice Hall 8-1 Lesson 6.2 – Licensing Copyright © 2014 by Sports Career Consulting, LLC

LESSON 6.2

Branding & Licensing

Copyright © 2014 by Sports Career Consulting, LLC

Licensing

ESPN reported that Florida State University director of trademark licensing Sherri Dye said the school's merchandise royalties were $4.58 million last season, helped by the Seminoles’ victory in the NCAA football championship game.

Page 21: Copyright 1999 Prentice Hall 8-1 Lesson 6.2 – Licensing Copyright © 2014 by Sports Career Consulting, LLC

Licensing and Merchandise

Licensed merchandise is made available through many channels of distribution

Special promotional deals create partnerships between the licensor and the licensee to help boost store traffic

Licensing

LESSON 6.2

Branding & Licensing

Copyright © 2014 by Sports Career Consulting, LLC

Page 22: Copyright 1999 Prentice Hall 8-1 Lesson 6.2 – Licensing Copyright © 2014 by Sports Career Consulting, LLC

Licensing and Merchandise

Licensing

LESSON 6.2

Branding & Licensing

Copyright © 2014 by Sports Career Consulting, LLC

The Collegiate Licensing Company generates huge profits from the sales of collegiate apparel at the local level within communities that show high levels of support for their collegiate athletic teams.

Click here to see a list of the top selling local merchants of collegiate apparel in 2014-14

Page 23: Copyright 1999 Prentice Hall 8-1 Lesson 6.2 – Licensing Copyright © 2014 by Sports Career Consulting, LLC

Licensing and Merchandise

Because of high demand for licensed products and the wide distribution channels, both licensees and licensors face challenges from rampant counterfeiting

Licensing

LESSON 6.2

Branding & Licensing

Copyright © 2014 by Sports Career Consulting, LLC

Page 24: Copyright 1999 Prentice Hall 8-1 Lesson 6.2 – Licensing Copyright © 2014 by Sports Career Consulting, LLC

Soon after the announcement that the Atlanta Thrashers NHL franchise would relocate to Winnipeg, Jets merchandise began appearing all over the Internet, despite the fact the franchise had yet to begin manufacturing any licensed merchandise. In an article appearing in the Winnipeg Sun, the newspaper reported finding a sweater described by an online site as being authentic with a price of just $28, however, officially licensed sweaters are expected to fetch closer to $130.

Licensing

LESSON 6.2

Branding & Licensing

Copyright © 2014 by Sports Career Consulting, LLC

Page 25: Copyright 1999 Prentice Hall 8-1 Lesson 6.2 – Licensing Copyright © 2014 by Sports Career Consulting, LLC

Major League Baseball uses a hologram sticker that makes a T-shirt or hat an official MLB product, making it easier for fans to identify counterfeit merchandise. MLB runs undercover investigations against merchandise counterfeiters year-round but it ramps them up every year for All-Star week.

The league cited statistics from the International Anti-Counterfeiting Coalition that says businesses worldwide lose an estimated $600-700 billion annually to counterfeiting meaning governments and taxpayers lose hundreds of millions because the sale of unlicensed products typically goes untaxed.

Licensing

LESSON 6.2

Branding & Licensing

Copyright © 2014 by Sports Career Consulting, LLC

Page 26: Copyright 1999 Prentice Hall 8-1 Lesson 6.2 – Licensing Copyright © 2014 by Sports Career Consulting, LLC

LESSON 6.2

Branding & Licensing

Copyright © 2014 by Sports Career Consulting, LLC

Licensing

During the 2011 Stanley Cup Final, authorities in Boston and Vancouver, B.C., seized more than $500,000 of fake merchandise. When the Bruins celebrated their championship with a parade in Boston, more than about $20,000 worth of counterfeit items was found.

Page 27: Copyright 1999 Prentice Hall 8-1 Lesson 6.2 – Licensing Copyright © 2014 by Sports Career Consulting, LLC

Players, teams, event names, entertainers and logos appearing on a huge selection of products

NCAA school logos find their way on to everything from pillows and bedding to waste paper baskets, wall clocks and bird houses

Licensing

LESSON 6.2

Branding & Licensing

Copyright © 2014 by Sports Career Consulting, LLC

Licensing and Merchandise

Page 28: Copyright 1999 Prentice Hall 8-1 Lesson 6.2 – Licensing Copyright © 2014 by Sports Career Consulting, LLC

LESSON 6.2

Branding & Licensing

Copyright © 2014 by Sports Career Consulting, LLC

Page 29: Copyright 1999 Prentice Hall 8-1 Lesson 6.2 – Licensing Copyright © 2014 by Sports Career Consulting, LLC

LESSON 6.2

Branding & Licensing

Copyright © 2014 by Sports Career Consulting, LLC

Page 30: Copyright 1999 Prentice Hall 8-1 Lesson 6.2 – Licensing Copyright © 2014 by Sports Career Consulting, LLC

DeLea Sod Farms, the company that supplies the New York Yankees with sod for their field, signed a licensing deal with the Yankees franchise and Major League Baseball to sell the sod at $7.50 for five square feet (and officially licensed Yankees grass seed) at New York City-area Home Depots

Licensing

LESSON 6.2

Branding & Licensing

Copyright © 2014 by Sports Career Consulting, LLC

Licensing and Merchandise

Page 31: Copyright 1999 Prentice Hall 8-1 Lesson 6.2 – Licensing Copyright © 2014 by Sports Career Consulting, LLC

Team Grill’s licensing deal with the NFL’s New England Patriots allows them to produce two team branded gas grills that retail for $699 and $1,499.

Licensing

LESSON 6.2

Branding & Licensing

Copyright © 2014 by Sports Career Consulting, LLC

Licensing and Merchandise

Page 32: Copyright 1999 Prentice Hall 8-1 Lesson 6.2 – Licensing Copyright © 2014 by Sports Career Consulting, LLC

When Universal Studios in Orlando, Fla., opened its Wizarding World of Harry Potter attraction in 2010, the park’s revenue from licensed merchandise revenue doubled from the previous year (products included souvenir magic wands, Slytherin scarves, Dumbledore steins and Voldemort key chains, among other items based on the blockbuster movie series)

Licensing

LESSON 6.2

Branding & Licensing

Copyright © 2014 by Sports Career Consulting, LLC

Licensing and Merchandise

Page 33: Copyright 1999 Prentice Hall 8-1 Lesson 6.2 – Licensing Copyright © 2014 by Sports Career Consulting, LLC

In 2011, Major League Baseball signed a three-year licensing deal with EyeBlack.com, a Maryland-based manufacturer of protective adhesives used to reduce sun glare, who will create branded versions of their products for all 30 MLB teams, the MLB World Series and the MLB All-Star Game

Licensing

LESSON 6.2

Branding & Licensing

Copyright © 2014 by Sports Career Consulting, LLC

Licensing and Merchandise

Page 34: Copyright 1999 Prentice Hall 8-1 Lesson 6.2 – Licensing Copyright © 2014 by Sports Career Consulting, LLC

Licensing

LESSON 6.2

Branding & Licensing

Copyright © 2014 by Sports Career Consulting, LLC

Licensing and Merchandise

One of the hottest selling items in Brazil during the 2014 World Cup among local fans was a $14 dog shirt with Brazilian colors and the #10 on the back—the number of Brazil’s leading scorer, Neymar.

Page 35: Copyright 1999 Prentice Hall 8-1 Lesson 6.2 – Licensing Copyright © 2014 by Sports Career Consulting, LLC

Collectibles and Memorabilia have had a major impact on licensing

According to the New York Times, there are 5 million autographs collectors in the United States alone

According to Collector’s Digest, the sports autograph market is worth $500 million

Americans alone spend an incredible $57 billion on sports memorabilia

LESSON 6.2

Branding & Licensing

Copyright © 2014 by Sports Career Consulting, LLC

Page 36: Copyright 1999 Prentice Hall 8-1 Lesson 6.2 – Licensing Copyright © 2014 by Sports Career Consulting, LLC

Collectibles and Memorabilia have had a major impact on licensing

Pete Rose, Major League Baseball’s all-time hits leader who is banned from baseball, still makes a reported more than $1 million a year signing autographs

In 1992, McDonald's offered a McJordan Burger (a quarter-pounder with cheese, onion, pickles, barbecue sauce and bacon). The dish came in limited markets, making the secret sauce limited as well. In 2012, a gallon of that sauce showed up on eBay for $10,000.

In 2012, a signed, game-used Kobe Bryant face mask sold on eBay for over $67,000

LESSON 6.2

Branding & Licensing

Copyright © 2014 by Sports Career Consulting, LLC

Page 37: Copyright 1999 Prentice Hall 8-1 Lesson 6.2 – Licensing Copyright © 2014 by Sports Career Consulting, LLC

Collectibles and Memorabilia have had a major impact on licensing

The uniform Don Larsen was wearing when he pitched the only perfect game in World Series history sold for $756,000 in 2014 in an online auction, including a 20% buyer's fee above the final bid of $630,000

In 2013, a 1928 World Series home run ball hit by legendary Yankee Lou Gehrig was auctioned off, ultimately fetching $62,617 (with the seller using the proceeds to help her son pay off his medical school debt)

LESSON 6.2

Branding & Licensing

Copyright © 2014 by Sports Career Consulting, LLC

Page 38: Copyright 1999 Prentice Hall 8-1 Lesson 6.2 – Licensing Copyright © 2014 by Sports Career Consulting, LLC

Collectibles and Memorabilia have had a major impact on licensing

LESSON 6.2

Branding & Licensing

Copyright © 2014 by Sports Career Consulting, LLC

Prior to the 2014 World Cup, 1,283 “collectible” gems were created using legendary Brazilian soccer star Pele’s hair (1,283 represents the total number of goals scored throughout his playing career) with estimates placing the cost of the souvenir somewhere in excess of $4,000

Page 39: Copyright 1999 Prentice Hall 8-1 Lesson 6.2 – Licensing Copyright © 2014 by Sports Career Consulting, LLC

Blank Slide Available

for Teacher Edits

LESSON 6.2

Branding & Licensing

Copyright © 2014 by Sports Career Consulting, LLC

Page 40: Copyright 1999 Prentice Hall 8-1 Lesson 6.2 – Licensing Copyright © 2014 by Sports Career Consulting, LLC

Branding & Licensing

LESSON 6.2 REVIEW (ANSWERS)LESSON 6.2 REVIEW (ANSWERS)

1) Define licensing

Refers to an agreement which gives a company the right to use another’s brand name, patent, or other intellectual property for a royalty or fee

Copyright © 2014 by Sports Career Consulting, LLC

Page 41: Copyright 1999 Prentice Hall 8-1 Lesson 6.2 – Licensing Copyright © 2014 by Sports Career Consulting, LLC

Branding & Licensing

LESSON 6.2 REVIEW (ANSWERS)LESSON 6.2 REVIEW (ANSWERS)

2) Distinguish between licensor and licensee

A licensor is the company or individual granting the license while the licensee is the company or individual paying for the rights to use the licensor’s name or property.

Copyright © 2014 by Sports Career Consulting, LLC