SPM 325 - lecture 20

146950000peryearin2012 licensing sends messages

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Unformatted text preview: ld Record! Nike has reached a 5­year contract extension to provide the “kit” for Manchester United: $484,915,000 Previous record: $250,545,000 for 5 years Real Madrid and adidas ManU has 33 corporate sponsors Sponsorship revenue now accounts for 42% of gross receipts. $146,950,000 per year in 2012 Licensing Sends Messages Licensing Licensing agreements allow the licensee to use a brand name, patent, or other proprietary right, in exchange for a fee or royalty. (Range from 5-25% of wholesale) Sport logos & likenesses are used by manufacturers to distinguish their products from competitors. NFL-licensed apparel accounted for over 50% of Reebok’s US sales. (2% of adidas global revenue) NFL new 5 year deal with Nike 2012-16 Sports Licensing Hurt By Recession Sports Retail Sales of Licensed Sports Products 2007 2010 2012 Past 5 years $15.0 Billion $11.8 Billion $12.6 Billion Down $2.4 B Revenues for Licensors 2007 2010 2012 Past 5 years $815 Million $645 Million $685 Million Down $130 M Licensing Player Images Licensing Teams and leagues own their logos and marks. Who should profit from the images & likenesses of their players? Former UCLA basketball star Ed O’Bannon Saw his likeness in an EA Sports game being used without his permission or any compensation. O’Bannon has been joined by dozens of former & active athletes in his suit against the NCAA, Electronic Arts, and Collegiate Licensing (CLC) Former NFL players also sued NFL Films for using their likenesses. Settlement includes setting up new licensing agency through IMG Effective Promotion & Advertising Target your audience Match th...
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This note was uploaded on 02/05/2014 for the course SPM 325 taught by Professor Dennisdeninger during the Fall '12 term at Syracuse.

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