SBD/July 10, 2013/Marketing and Sponsorship

Univ. Of Oregon's New Licensee Agreement May Eliminate Smaller Merchandise Producers

Oregon wants to charge licensees a $500,000 minimum royalty guarantee
Some of the smaller companies that produce Univ. of Oregon merchandise "submitted proposals Monday to continue their official licensee status,” but none of them “believes they have much of a shot at staying with the program,” according to Allan Brettman of the Portland OREGONIAN. OU “announced a significant change earlier this year in the way it plans to select its licensee partners.” The school declared in a request for proposal that in the future it "would cost an apparel licensee a minimum $500,000 royalty guarantee to play on the Ducks apparel and headwear program.” It is expected the new licensee agreement “will be for five or 10 years, starting next summer.” Still, some longtime licensees “without hope of meeting the $500,000 submitted proposals on Monday anyway.” Complaints from local retailers “prompted some Oregon state legislators to urge the university to take another look at the apparel and headwear proposal.” It is "unclear when the new licensees will be named.” The university announced in the RFP's first version that new licensees “would be notified ‘approximately’ Aug. 9.” But OU Assistant VP/Strategic Communications Phil Weiler on Monday said that the date “may be changed to accommodate the two-week extension for submission of proposals” (Portland OREGONIAN, 7/9).
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