Churchill Downs Inc. has signed a multiyear deal making Fermata Partners the new licensing agency of record for the company’s iconic racetrack in Louisville, Ky., and the Kentucky Derby.
The deal goes into effect June 30. Fermata Partners replaces IMG, which had been the licensing agency for Churchill Downs for at least a decade.
“We are very excited to be partnering with Churchill Downs and the Kentucky Derby with respect to their licensing program, merchandising and brand development,” said Kit Walsh, one of the four founders of Fermata Partners.
Fermata Partners was formed in 2012 by former Collegiate Licensing Co. executives. The Churchill Downs business is the latest win for the company. Last year, Fermata signed four major universities — Georgia, Kentucky, Oregon and Miami — as licensing clients.
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Churchill’s top-selling licensed product is its annual Derby julep glass.
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Churchill had put the licensing agreement out for competitive bidding and numerous companies competed for the business, said Kristin Warfield, Churchill Downs vice president of partnerships. “We went through a month-and-a-half evaluation process of potential partners and Fermata clearly emerged as the right fit for us,” Warfield said.
Financial terms of the deal were not disclosed.
Fermata presented a vision of expanding the business past the traditional sports licensing business, Warfield said. “The bigger part, that we feel has the potential for growth for us, is the lifestyle angle to our brand,” she said.
Fermata Partners intends to increase both the distribution points for Churchill Downs merchandise, as well as the categories of products, Walsh said, but declined to provide details.
“What we really sold Kristin and her team on is the idea that the Derby and the Twin Spires of Churchill Downs are the pinnacle, of not only the sport of thoroughbred racing but also brands that stand for excellence and are the top of any pyramid,” Walsh said. “We sold them on the idea that there is room for growth in building around that brand association and that lifestyle.”
Currently, Churchill Downs’ top-selling licensed product is its commemorative Kentucky Derby mint julep glass, followed by hats and apparel. Warfield said more than $1 million in Churchill-branded glassware is sold each year. The biggest selling season is before and around the Kentucky Derby, which is always run on the first Saturday in May, followed by the holiday season.
Churchill Downs has spent millions of dollars in recent years to improve the Louisville track and its amenities. The next area of growth that the company is targeting is licensing, Warfield said.
