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SBD/January 12, 2011/Marketing and Sponsorship
National Championship Should Boost Auburn's Licensing Royalties
Published January 12, 2011
Auburn can expect to see a “huge increase in licensing royalties” after winning the school’s first football national championship in 53 years, according to Darren Rovell of CNBC. Schools have “typically seen at least a 25 percent royalty bump” after winning the title, but Auburn’s could rise “by more than 50 percent.” The school “usually gets a 10 percent cut off the wholesale price of an item with its logos on it, but gets a 12 percent cut from national championship items.” Auburn was selling “more than 175 different national championship items" yesterday morning at its official online store, "ranging from shirts to teddy bears to Cam Newton commemorative jerseys with a national championship logo." Auburn last won a national championship in ’57. The school ranked 14th among colleges in sales from July through September, according to CLC, which manages the trademarks to most of the big time schools, and it made $3.4M “in royalties, licensing and sponsorship combined last season.” Texas, which lost in the BCS title game in ’10, “became the first school to pass $10 million in royalties last year” (CNBC.com, 1/11).
BAD WEATHER HURTS MERCH SALES: In Birmingham, Marie Leech noted Auburn fans yesterday "flocked to sporting goods stores to shop for national championship merchandise." Cars "were sparse" in the Patton Creek shopping center in Hoover, Ala., until one "rounded the corner to the area where Tiger Pride and Dick's Sporting Goods are located." Auburn fans "swarmed" those two stores "in hopes of acquiring even more fan gear" (AL.com, 1/11). However, in Alabama, Russ Corey reports managers of sporting goods stores in Florence, Ala., "blamed the lingering effects of Sunday's heavy snowfall for ... slow sales" of Auburn merchandise. They do expect sales "to increase once road conditions improve," however. Kay Pruitt, an employee of the Dick's Sporting Goods location in Florence, said that the store "opened after the game ended, but only about 30 people braved slushy roads to check out the selection of championship gear." Mike Baggett, Manager of Martin's Family Clothing in Florence, also said that his store was "set to open after the game, but corporate officials decided to wait until Tuesday because of concerns about employee safety" (Florence TIMES DAILY, 1/12).
WANDERING AMONGST GIANTS: USA TODAY's Michael Hiestand writes Under Armour was a "winner because it got in the marketing sideshow surrounding" Monday's game, and it was "gravy that Auburn ... beat the Nike-costumed Ducks." The "big deal" for Under Armour, which has "about $1 billion in annual sales, is to get mentioned in the same breath as Nike, with nearly" $20B in annual sales (USA TODAY, 1/12). Meanwhile, sponsorship measurement firm Joyce Julius found that Under Armour received nearly $1.8M of in-broadcast exposure value during the game telecast from Auburn coach Gene Chizik. Logos on Chizik's jacket and collar appeared clear and in-focus for two minutes, 44 seconds during game coverage, excluding pre- and postgame coverage. Nike logos on Oregon coach Chip Kelly's visor and shirt appeared for two minutes and 28 seconds, generating nearly $1.4M of exposure value (Joyce Julius).