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Fanatics To Have Exclusive NHL Rights To Playoff Apparel, Replica Jerseys In '17-18

Fanatics today revealed some specifics within the broad licensing deal it signed with the NHL more than a year ago. Starting next season, Fanatics will have exclusive playoff and championship locker-room apparel rights with the NHL, along with the rights to exclusively make and sell adult-sized NHL replica jerseys for 16 years. Those replica jerseys will carry Fanatics logos and will be manufactured by Fanatics Branded. As previously revealed, the NHL also received equity in Fanatics as part of the deal. Fanatics, the NHL’s e-commerce operator since '05, also will operate venue retail at NHL events and administer the NHL’s auction web site. adidas takes over NHL authentic jersey rights next season. NHL Exec VP & Chief Branding Officer Brian Jennings said that working with Fanatics on the replicas will allow adidas to focus on adding “performance characteristics” to the on-ice jerseys. Fanatics will service its expanded hockey rights with a wholesale sales division covering both the U.S. and Canada, along with new distribution centers. The company recently hired Jeff Budway as its GM for Canada. Word of Fanatics’ broad NHL rights comes a week after the revelation that the company has obtained MLB rights, which will result in Fanatics producing and marketing MLB replica jerseys, along with on-field MLB jerseys with Under Armour logos on them, beginning in '20. Fanatics has been consolidating league apparel and retail rights at an unprecedented rate, roiling the licensed sports apparel industry. One veteran team merchandising exec said, “This is the blueprint, they (Fanatics) want jersey rights and (championship) locker room rights for as many big properties as they can get."

IPO COMING FOR FANATICS?
Sources are saying a Fanatics IPO is expected in '18, though a company spokesperson would not comment. In an industry starved for margins, the "vertical" Fanatics model -- combing manufacturing and retailing across retail channels -- has been talked about for years. Now that vertical arrangements are in place at some of the biggest sports properties, the industry is having a hard time focusing on anything else. “Fanatics' growing presence is the most polarizing issue in sports licensing,’’ said a senior exec at a large sporting-goods retailer. “If they’re going to be a manufacturer and a retailer, my questions are who are they shipping to first -- their retail or mine -- and do we have to sell goods on our own floor that have the name of my competitor (Fanatics) on them?’’ 16W Marketing Partner Frank Vuono, who previously served as the NFL's licensing chief, said, “For Fanatics, it’s smart to go vertical and to be able to sell across every retail channel and with the league as your partner it’s a way to minimize risk. As they continue to collect more rights, Fanatics is going to be tough to compete with.’’ The Javelin Group Principal & President Jeff Bliss: "Clearly Fanatics’ model is one that’s appealing to the leagues. Consolidating these rights has been a great strategy for Fanatics. Down the road, you wonder about over-consolidation and whether the leagues will be relying too much on one licensee.’’ 

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