Impressions - Sports Fan Retailer - December 2015 - 21

number of players who now are nationally
recognized. "There's a lot of opportunity
around our young talent," she says.
Similarly, NFL Players Association
(NFLPA) licensees are reporting that
player-identified merchandise is growing
as a percentage of total sales, according
to Steve Scebelo, vice president of licensing and business development for NFL
Players Inc., the licensing and marketing
arm of the NFLPA, which handles group
licensing for the 1,800 active NFL athletes. Many are nationally known, largely
thanks to fantasy football.
"There's a real allegiance to players
on [a] roster, and [consumers will] buy
merchandise featuring those players,"
Scebelo says.
Of course, celebrity athletes can be
unpredictable and the consequences of
their off-field actions can be felt at the
cash register. "On a player-by-player
basis, [bad behavior] absolutely has an
effect," says Steven Heller, president of
The Brand Liaison, a consultancy representing sports clients for outbound
licensing and assisting licensees in securing sports licenses. "For Michael Vick,
Ray Rice or Adrian Peterson, their offthe-field activity has definitely affected
sales of their licensed products."
Such high-profi le cases have not affected overall sales of NFLPA- or leaguelicensed merchandise.
INNOVATION IS IMPORTANT
During the past decade or so, the four
major sports leagues have been narrowing
their licensee lists, especially in apparel
and accessories. A new wrinkle in 2015:
Some leagues are purchasing equity in
key licensees, reflecting their interest in
more vertical consumer products operations. The NFL invested in Outerstuff, while the NHL took a stake in both
Outerstuff and Fanatics.
"Probably the greatest impact will be
on product development and distribution," says Marty Brochstein, senior vice
president of industry relations and information, International Licensing Industry
Merchandisers' Association (LIMA). "You
have a closer relationship when the league
SportsFan Retailer

is one of your owners. The fewer pieces there are to mesh, the
easier the meshing becomes."
This trend is likely to make
entering sports licensing even
more difficult for newcomers.
For example, Brand Liaison
client Zumer Sport, which
holds patents for products
made from sports equipment
materials such as basketball
leather, entered the market by
partnering with multi-league
licensee Concept One, rather
than seeking a direct license.
"[Partnerships are] a creative way to get to market faster and in a larger way," Heller
says. "You'll see more joint Women's apparel continues to
gain momentum at retail, a trend
ventures and collaborations
that keeps many in the industry
as the leagues contract the bullish on the revenue-generating
number of licensees and as potential of these products.
growing companies seek to
enter the market with a greater likelisuccessful on the field or court, especialhood of success."
ly teams in big markets that haven't won
A unique product offering also is critin a long time," says Matt Powell, NPD
ical. "There's no way we would have gotGroup's vice president of industry analten as far as we have now without our
ysis, sports and leisure trends.
unique design," says Brüzer's Gardner,
"Everyone is increasingly sophisticated
whose company has been in the U.S. marabout leveraging these hot markets, [and]
ket for five years.
cutting production times to address the
Licensees also need to supply product
demand for merchandise tied to champiquickly and in small quantities. "Comonships and personal records," Brochstein
panies are innovating behind the scenes
says. "That has become a very, very wellto be closer to the market and have a
oiled machine, particularly for soft goods."
quicker response to consumer demand,"
And that's a positive development besays Scott Buoyack, co-founder of Fermacause the business has become more reta. "Those that have performed best are
gional, seasonal and hot market-driven
those who have implemented systems to
than ever. "It's gotten so fractured," Starespond quickly and manage their busiton says. "It used to be, especially in NFL
ness better."
and college, there were four to five teams
Staton says the days of booking 80%
that sold everywhere nationally. Those
of retail inventory and chasing 20% are
days are gone."
over. The ratio has flattened to 50/50.
"Where you make your big money is
"From a retailer perspective, there is more
your local hot markets," Adams says.
focus on inventory," he says. "[Retailers
"We live and die by the local teams."
are] lighter, leaner and more nimble. As
a supplier, you have to change the way
Karen Raugust, a Minneapolis-based freeyou do business to match the way the
lance writer, specializes in licensing, marretailers do business."
keting and other business topics. For more
Despite the importance of fashion
information or to comment on this article,
trends, sports licensing remains led by
or to read her twice-weekly licensing trends
fans. "It's mostly driven by teams being
blog, visit raugustcommunications.com.
December 2015 21

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