Aug. 17, 2006
For the third consecutive year, Baylor University enjoyed record-breaking sales of its officially-licensed merchandise according to figures recently compiled by the Collegiate Licensing Company (CLC).
During the recently-completed year, Baylor generated $227,701 in gross royalties on retail merchandise sales which topped $5.5 million, both of which were school-record marks. That represented a 20 percent increase over Baylor's record-setting 2004-05 year, when it generated $189,303 in gross royalties on retail merchandise sales which topped $5 million. Overall, it marked the third consecutive year that Baylor's royalties saw an increase.
"We are delighted with the growth in licensing revenues and success of Baylor apparel in the marketplace," said Baylor Director of Athletics Ian McCaw. "Clearly, there is more high quality Baylor merchandise available in retail stores, and our fans have responded resulting in record sales."
The overall increase posted during the fiscal year can be attributed to solid royalty revenue reported by many of Baylor's top licensees. For the year, 14 of Baylor's top 20 licensees reported an increase in royalties.
Some 53 percent of Baylor's royalties were generated by apparel licensees and 37 percent came from non-apparel companies. The Baylor program finished the year with 224 licensees, while 197, or 88 percent of these licensees, reported royalties for Baylor during the 2005-06 fiscal year.
One of the key contributors to the increase in Baylor's royalties was its inclusion in Electronic Art's new college baseball video game, MVP 2006 - The Road To Omaha. The game featured 128 universities and 19 authentic stadiums, including Baylor Ballpark. The release of MVP 2006 marked the first time a college baseball title had ever been produced. This new game generated $15,796 in incremental royalties for the Baylor licensing program.
Nike, Baylor's official sideline provider for football, finished the 2005-06 fiscal year as Baylor's No. 2 apparel licensee, generating $13,645 in royalties. Nike's 2005-06 figure for Baylor marks an increase of $8,055, or 144%, when compared to 2004-05 figures. It marked the second consecutive year that Nike had shown significant growth for Baylor, as it increased royalties to the school by $5,470 between the 2003-04 and 2004-05 fiscal years.
All-told, Baylor saw a 110% increase in the outerwear category for the fiscal year with Majestic Athletic, Red Oak Sportswear, Holloway Group Inc., Cutter & Buck and Nike leading the way.
Another key to Baylor's licensing success was its inclusion in the Lowe's/NCAA gift card promotion. Lowe's Home Improvement, an NCAA corporate partner, worked through CLC and International Sports Properties, BU's multi media partner, to secure the rights to nearly 100 institutions, including Baylor, for the opportunity to offer collegiate branded gift cards for purchase by consumers. Baylor received a $7,500 promotional rights fee for its participation in this program.
Baylor's licensees also turned in strong performances in the mass distribution channel. Mass licensees are the primary supplier of apparel products to such retailers as Wal-Mart, Kmart, Target and Sam's Club. Mass licensees, including Red Oak Sportswear by Knights Apparel, Starter by Knights Apparel, 4004 Incorporated, Captivating Headgear and Outdoor Cap Company, all showed positive royalty increases during the year.
"The record licensing numbers reflect the continued excellence of our athletic programs as well as the passion of our Baylor fan base," says BU Associate Athletic Director for External Affairs Bill Chaves. "It also reflects a concerted effort by the University's licensing office and athletic marketing to provide more merchandise in the marketplace to our various constituencies."
The Collegiate Licensing Company (CLC) is the nation's leading collegiate trademark licensing and marketing company, assisting collegiate institutions in protecting, managing and developing their brands. The mission of CLC is to be the guiding force in collegiate trademark licensing and one of the top sports licensing firms in the country. As such, CLC is dedicated to being a center of excellence in providing licensing services of the highest quality to its member institutions, licensees, retailers, and consumers.
Founded in 1981, CLC is the oldest and largest collegiate licensing agency in the nation and currently represents more than 200 colleges, universities, bowl games, athletic conferences, The Heisman Trophy and the NCAA (including the Men's and Women's Final Four, the College World Series, and all NCAA Championships). CLC is a full-service licensing and marketing company, which employs a staff of 80 licensing professionals with the capability to establish and manage every aspect of a collegiate licensing program.
Based in Atlanta, CLC provides its member institutions the expertise, resources and experience necessary to maximize licensing revenue potential through the power of consolidation.