SBD/January 12, 2011/Marketing and Sponsorship

National Championship Should Boost Auburn's Licensing Royalties

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 is selling “more than 175 different national championship items (Tuesday) morning on its official online store , ranging from shirts to teddy bears to Cam Newton commemorative jerseys with a national championship logo on it.” 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; 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).

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