Getting a product into the end zone

Nation's Business, Feb, 1997 by Michael Barrier

How does one present a product to be approved as an official licensed product of, say, the National Football League (NFL) or the National Collegiate Athletic Association (NCAA)? M.P., Knoxville, Tenn.

Brian McCarthy, manager of corporate communications for the NFL, says that potential licensees should contact NFL Properties, the licensing and marketing arm of the NFL and all its teams, at 410 Park Ave., New York, N.Y. 10022; (212) 838-0660.

NFL Properties works with 275 licensees, which manufacture more than 1,000 products. The licensee total is down from 425 a couple of years ago-NFL Properties has been "consolidating" licensees, McCarthy says--but there is still room for new licensees who propose products "that would fill a niche and help enhance the fens' enjoyment of the game."

Once NFL Properties has given the green light to an idea, the applicant must provide product samples that meet the NFL's quality standards. Moreover, the company must be prepared to make versions of the product that represent all 30 NFL teams. A business in Baltimore, for example, can't make products representing only the local NFL team, the Ravens.

A company applying for a license must also come up with an impressive marketing plan and otherwise demonstrate financial strength.

A licensee must pay a royalty of 9 to 11 percent of the wholesale price of each item and must guarantee a certain minimum total payment to NFL Properties even if the product turns to be a bomb.

The NCAA is organized very differently You must go through the NCAA to use its insignia and trademarks such as "Final Four." The NCAA is at 6201 College Blvd., Overland Park, Kan. 66211; (913) 339-1906.

Many individual schools handle their own licensing, however. Others have assigned their rights to the Collegiate Licensing Co., in Atlanta; (770) 956-0520.

A full report on licensing, "Hot Names, Top Dollars," was the August 1995 cover story. Reprints of that article are available for $1.99 each. To order and pay by credit card, call 1-800-692-4000.

RELATED ARTICLE: HOW TO ASK

Have a business-related question? Mail or fax your typewritten query to Direct Line, Nation's Business, 1615 H Street, N.W., Washington, D.C. 20062-2000; (202) 463-3102. Or transmit your question to our CompuServe address: 76436,1735. Be sure to include your address and telephone number.

Because of the high volume of letters, we can answer only those that are chosen for publication.

Questions may be condensed, and writers will be identified only by initials and city.