The marketing of the USA's Dream Team is profiled on the
front page of today's WASHINGTON POST by Thomas Heath. The
approval of pro basketball players in the Olympics "has spawned a
new money making machine for the NBA and a new tier of
advertising income for some of its elite players"
HOW IT WORKS: Dream Team merchandise generates more than
$100M a year, and each player will receive $100,000 from
royalties on merchandise sales. USA Basketball, which puts the
squad together, owns the rights to the team, its merchandise and
logos, including rights to the "valued Dream Team name." Each
player signs a deal with USA Basketball that allows the player to
earn a percentage of royalties. USA Basketball hired NBA
Properties to market the Dream Team and negotiate its licensing
deals. Interest in the team is worldwide, and the number of
countries in which Dream Team merchandise will be available has
risen from seven countries, to 17. Forty-four companies are
licensed to sell Dream Team products. Royalties on sales net USA
Basketball around $5-7M annually, which is split between USA
Basketball, NBA Properties, and the players. The USOC receives
some royalty from USA Basketball, "which features products with
Olympics rings." In '96, 14 companies have paid between $1.8-3M
to link with the Dream Team, but guidelines on player use vary
depending on whether the companies buy rights to the team as a
group or the right to highlight individual players (WASHINGTON
POST, 5/15).
