lesson 6.2 – licensing€¦ · 1/6/2017 8 lesson 6.2 branding & licensing copyright © 2014...
TRANSCRIPT
1/6/2017
1
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.
1/6/2017
2
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
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
1/6/2017
3
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:
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:
1/6/2017
4
Copyright © 2014 by Sports Career Consulting, LLC
LESSON 6.2
Branding & Licensing
Licensee Examples
Copyright © 2014 by Sports Career Consulting, LLC
LESSON 6.2
Branding & Licensing
Licensee Examples
1/6/2017
5
Copyright © 2014 by Sports Career Consulting, LLC
LESSON 6.2
Branding & Licensing
Licensee Examples
Copyright © 2014 by Sports Career Consulting, LLC
LESSON 6.2
Branding & Licensing
Licensee Examples
1/6/2017
6
The 3 P’s of licensing include:
Profit
Promotion
Protection
LicensingLESSON 6.2
Branding & 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
1/6/2017
7
Licensed products can be extremely lucrative
LicensingLESSON 6.2
Branding & 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)
LicensingLESSON 6.2
Branding & Licensing
Copyright © 2014 by Sports Career Consulting, LLC
1/6/2017
8
LESSON 6.2
Branding & Licensing
Copyright © 2014 by Sports Career Consulting, LLC
LicensingIn 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.
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
LicensingLESSON 6.2
Branding & Licensing
Copyright © 2014 by Sports Career Consulting, LLC
1/6/2017
9
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
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
1/6/2017
10
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
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.
1/6/2017
11
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
LicensingLESSON 6.2
Branding & Licensing
Copyright © 2014 by Sports Career Consulting, LLC
Licensing and Merchandise
LicensingLESSON 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
1/6/2017
12
Licensing and Merchandise
Because of high demand for licensed products and the wide distribution channels, both licensees and licensors face challenges from rampant counterfeiting
LicensingLESSON 6.2
Branding & 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.
LicensingLESSON 6.2
Branding & Licensing
Copyright © 2014 by Sports Career Consulting, LLC
1/6/2017
13
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.
LicensingLESSON 6.2
Branding & 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.
1/6/2017
14
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
LicensingLESSON 6.2
Branding & Licensing
Copyright © 2014 by Sports Career Consulting, LLC
Licensing and Merchandise
LESSON 6.2
Branding & Licensing
Copyright © 2014 by Sports Career Consulting, LLC
1/6/2017
15
LESSON 6.2
Branding & 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
LicensingLESSON 6.2
Branding & Licensing
Copyright © 2014 by Sports Career Consulting, LLC
Licensing and Merchandise
1/6/2017
16
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.
LicensingLESSON 6.2
Branding & Licensing
Copyright © 2014 by Sports Career Consulting, LLC
Licensing and Merchandise
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)
LicensingLESSON 6.2
Branding & Licensing
Copyright © 2014 by Sports Career Consulting, LLC
Licensing and Merchandise
1/6/2017
17
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
LicensingLESSON 6.2
Branding & Licensing
Copyright © 2014 by Sports Career Consulting, LLC
Licensing and Merchandise
LicensingLESSON 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.
1/6/2017
18
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
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
1/6/2017
19
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
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
1/6/2017
20
Blank Slide Available
for Teacher Edits
LESSON 6.2
Branding & 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
1/6/2017
21
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