There was an equal amount of Philadelphia Eagles and New England Patriots merchandise displayed across 400 booths at the Las Vegas Convention Center, but with the Patriots playing in their eighth Super Bowl in the past 17 years, it was evident which team is the licensing industry’s favorite.
“As a Cowboys fan, it’s hurting me,” laughed Bill Skinner, president of Team ProMark, which had a new Mustang on the show floor to display its new and patent-pending ambassador-style licensed car flags (MSRP $14.99 for a two-pack). “But for all the right business reasons, I’m an Eagles fan for now.”
For Fanatics, the quality of the Super Bowl game can mean the difference in merch sales.Terry Lefton
Since the Sports Licensing & Tailgate Show was held only a few days after the conference championships, it was a bit early for NFL licensees to receive and evaluate all of their Super Bowl “if win” orders. Nonetheless, estimates on the difference between an Eagles hot market and Patriots championship sales ranged between 2:1 and 5:1. Talk about pent-up demand: The Eagles’ last NFL championship was in 1960. The Patriots’ was last year.
“Everyone on this floor is an Eagles fan — at least for the next few weeks,” said Matt Katz of Forever Collectibles, which a few years after it had a smash hit with licensed Ugly Sweaters was attempting to extend that product by adding not only LEDs but a Bluetooth speaker to the garment (MSRP $90).
John Sabo, Fanatics general merchandising manager, estimated the difference would be at least 3:1 for an Eagles win.
Fliips markets NBA team-branded bra straps.Terry Lefton
Forever Collectibles' Ugly Sweaters.Terry Lefton
“For the Eagles, it’s been so long, we don’t really know how long the tail would be on that,” he said. “And last year’s record comeback by the Patriots showed everyone that the quality of the game itself can really influence sales. Everyone wanted to remember what was called the greatest Super Bowl ever. That translated into a great hot market.”
If the Patriots win, it would be their sixth Super Bowl championship, equaling the Pittsburgh Steelers’ mark. Some licensees were displaying six-time champions merchandise samples, suggesting that annuity would boost sales of Patriots merchandise the way it did when the Steelers last won in 2009.
TSV-licensed pizza cutters joined team-branded cupcake liners among household items.Terry Lefton
An interesting sidelight is that whereas injured Eagles quarterback Carson Wentz has not played since Dec. 10, he has remained the team’s top-selling jersey and an early top-seller for Super Bowl jerseys.
Many at the show expressed frustration at disappointing sales of NFL-licensed product. Some reported double-digit declines. Now, there are additional concerns about whether NFL declines will affect the entire sports-licensed market — the antithesis of that proverbial rising tide lifting all boats. It’s a ways off, but “futures” orders for the back-to-school season and beyond are already looking even worse, according to chatter on the showroom floor.
“Retail buyers are always going to be timid coming off a down year,” said a longtime NFL licensee.
Offered another old-timer: “NFL sales have been challenging at best. There are a lot of things contributing to their ratings decline and [declining] merch sales, but I don’t think people realize how upset middle America is with the kneeling during the national anthem.”
A number of other factors were cited as contributing to the NFL’s difficulties, including overexposure, injuries to star players like Odell Beckham Jr. and Aaron Rodgers, retail consolidation and head trauma concerns.
And there were more far-reaching concerns.
“I am beginning to wonder if there’s [an NFL] brand problem,” said Lids founder Glenn Campbell.
Evergreen Enterprises’ totem pole turns a few heads.Terry Lefton
While there were differences of opinion on which factors were the most important, one profound issue was being raised when it comes to the NFL for the first time in memory.
“The biggest question in this business is whether the NFL [sales problems] are just a blip or something permanent,” said Sol Werdiger, founder and CEO of Outerstuff. Across the sports industry, the same question is also being asked about the league’s TV ratings.
Carl Banks of G-III, which is engineering a renaissance for Starter-licensed jackets, said the NFL has only itself to blame.
“They let the entire situation get out of hand,” said the former Giants linebacker. “Fans became polarized and retailers got hurt. … Contrast that with the NBA — they don’t let anyone, including the president, control the narrative.”
> INTRIGUING INDICIA: There were a few new entrants in our ongoing “never saw a logo on that before” search. Trying to take advantage of a trend that sees women intentionally displaying brassiere straps as a fashion statement, startup Fliips is coming to market in March with spandex bra straps adorned with NBA logos (we expect it to be worn by NBA team dancers soon) followed by Major League Baseball and 50 to 60 college versions. MSRP is $19.95. Partner Eric Henry, a veteran of the licensed T-shirt industry, sees it as a gift item. We’re wondering where it fits within retail geography.
Licensees have high hopes for the Eagles.Terry Lefton
Also new to us were the licensed muffin/cupcake papers from TSV, which also is marketing licensed pizza cutters. And catching everyone’s eye, if only because of its stature, was the 6-foot-tall totem poles from Evergreen Enterprises, which come with a $2,500 retail price tag.
> LICENSING LINES: Our heart goes out to veteran sports licensing executive Gene Goldberg over the recent tragic loss of his son, Jake, an executive with the Detroit Pistons. The only thing we are happy to report about this is that the list of those attending the services was a “Who’s Who” of the business, including NFL Commissioner Roger Goodell and MLS Commissioner Don Garber. Gene Goldberg worked at NFL Consumer Products for 29 years. … Longtime Boelter Brands President Jay Wilcox has joined WinCraft as executive vice president, strategy and development. Wilcox will continue to be based in Milwaukee. … NFL Consumer Products Director Don Brown is leaving the league via the early retirement package after 20-plus years.
Terry Lefton can be reached at tlefton@sportsbusinessjournal.com.
