IMG Cooperating With Feds In College Licensing Investigation
IMG's Collegiate Licensing Co. division announced yesterday that it is cooperating with the U.S. Department of Justice, which has "opened an investigation into the $4.5 billion college licensing business," according to Michael McCarthy of USA TODAY. CLC Senior VP & Managing Dir Cory Moss said that the feds had "opened a preliminary inquiry in how colleges and universities select which companies they license and how they determine their royalty rates." IMG's CLC is the "biggest player in the business, representing more than 200 collegiate properties." The company works with "more than 3,000 licensees nationwide." Moss said that the federal probe "could be related to a letter sent by a Washington, D.C., law firm to IMG Collegiate and 27 Football Bowl Subdivision schools this spring demanding they stop what the law firm alleged was a 'concerted effort' to limit the number of manufacturers that are licensed to make collegiate apparel items" (USA TODAY, 12/1).