Licensing Project by Christian Anderson

Definition

christiananderson25_ — 2024-09-26 12:37:37 UTC

In the sports and entertainment industries, licensing entails a business (the licensee) paying for the right to use the intellectual property (trademarks, logos, etc.) of another business (the licensor) on goods.

Ex. The NBA licenses Nike to use their team logos on apparel.

Key Terms

christiananderson25_ — 2024-09-26 12:47:58 UTC

Licensor: The party that owns the rights to the intellectual property.

Licensee: The party that receives permission to use the intellectual property.

Trade mark: A symbol, word, or words legally registered for use by a company

For Licensers

christiananderson25_ — 2024-09-26 14:33:33 UTC

Provides a new stream of revenue without upfront investments

Invokes the expansion of brand presence in new markets

For licensees

christiananderson25_ — 2024-09-26 14:33:40 UTC

Brand recognition and credibility

Increased chance of gaining more partnership agreements

For Licensers

christiananderson25_ — 2024-09-26 15:29:04 UTC

Chance of brand dilution if the licensee produces poor quality products and poor credibility

Licensors lose control of how their brand is run and or perceived

NFL & Nike

christiananderson25_ — 2024-09-26 15:55:18 UTC

Licensing agreement: The NFL licenses Nike to use its club logos to create official jerseys and fan gear. Nike makes millions of dollars in revenue each time an item is sold and pays a royalty to the NFL.

Royalties & Agreements: Nike provides the NFL with a steady cash flow by paying the league hefty royalties that are based on merchandise sales and guaranteeing a minimum amount.

Exclusive Rights: Nike has a competitive advantage in the sports merchandising sector as the sole licensee for NFL clothing, which strengthens its brand recognition among football enthusiasts.

NBA & 2K Sports

christiananderson25_ — 2024-09-26 15:56:06 UTC

Licensing agreement: The NBA gives 2K Sports permission to use player likenesses, team logos, and other intellectual property for their well-known NBA 2K video game brand.

Royalties & benefits: Being one of the most successful video games of the year, 2K Sports pays the NBA royalties depending on the game's sales.

Brand exposure: The NBA receives international exposure thanks to the NBA 2K series, which attracts new fans who might go to games, buy NBA gear, or keep a close eye on the league.

Soccer (MLS & Adidas)

christiananderson25_ — 2024-09-26 15:57:24 UTC

Licensing agreement: Adidas and Major League Soccer (MLS) have an exclusive licensing agreement, under which Adidas produces the official uniforms (kits), training equipment, and fan merchandise for every MLS team.

Royalties: Adidas helps MLS finance its teams and operations by paying MLS significant royalties from product sales. In addition, Adidas promises MLS a certain sum every season, independent of actual sales.

Benefits For MLS & Adidas: Adidas helps MLS finance its teams and operations by paying MLS significant royalties from product sales. In addition, Adidas promises MLS a certain sum every season, independent of actual sales.

Leagues

christiananderson25_ — 2024-09-27 15:28:10 UTC

Annual revenue from licensing: $3 billion.

Annual revenue from licensing: $2.6 billion

Annual revenue from licensing: 700 million

Annual revenue from licensing: Over 1 billion

NCAA

Annual revenue from licensing: 1 billion

Definition

christiananderson25_ — 2024-09-27 15:33:39 UTC

Unauthorized products that violate licensed trademarks constitute counterfeit merchandise, causing financial harm to licensees and licensors alike.

How Sports Leagues/Teams are Preventing Counterfeit Merchandise

christiananderson25_ — 2024-09-27 15:35:03 UTC

NFL: Uses security labels and holograms on all official merchandise.
NBA: Partners with online platforms to remove counterfeit listings and trace unauthorized sellers.
MLB: Runs awareness campaigns and conducts regular raids on unauthorized vendors.

Examples

christiananderson25_ — 2024-09-27 15:39:06 UTC

License the school name/logo to local businesses for promotional events

License the sports team logos to companies that produce branded water bottles, bags, and gym gear.

License student-designed products like stickers or notebooks and sell them to raise funds.

For Licensees

christiananderson25_ — 2024-09-27 15:45:54 UTC

High royalty fees
Upfront guarantees can strain profitability

christiananderson25_ — 2024-09-27 15:55:42 UTC

This Licensing Agreement is made between St. Maximilian Kolbe Chs Ms Miranda and School Spirit Merch, Inc. Christian Anderson, effective from January 1, 2025, to December 31, 2027. The Licensor grants the Licensee the exclusive right to use the school’s name, logo, and mascot on clothing and accessories for commercial purposes within the agreed terms.

The licensee, Mr Anderson, is permitted to sell the licensed goods online via the school's official store and locally, up to a 50-mile radius around the school. The licensee agrees to pay the licensor a royalty of 10% on all gross sales of the school-branded products in exchange. In addition, regardless of actual sales performance, the Licensee guarantees the Licensor a minimum yearly payment of $5,000.

Signed,
St Maximilian Kolbe CHS – Principal, Ms Mirana
School Spirit Merch, Inc. – CEO, Christian Anderson

christiananderson25_ — 2024-09-27 16:13:17 UTC

Coffey, Emily. “Exploring Lucrative Opportunities: Licensing Agreements in Emerging Sports.” FADEL, 18 Sept. 2024, fadel.com/exploring-lucrative-opportunities-licensing-agreements-in-emerging-sports/.

“Sports Brand Licensing, Partnerships and Collaborations: Latest News.” License Global, www.licenseglobal.com/sports. Accessed 27 Sept. 2024.

“What Is Sports Licensing?” Sports Management Degree Guide, 30 Sept. 2014, www.sports-management-degrees.com/faq/what-is-sports-licensing/.