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Lesson 6  - power point presentation 3
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Lesson 6 - power point presentation 3

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  • 1. Licensing and Merchandising • Licensing: is an agreement that gives a company the right to use another’s brand name, patent or intellectual property for a royalty or fee • Licensor: the company or individual granting the license for a fee • Licensee: the company or individual paying for the rights to use the licensor’s name or property
  • 2. Licensed Products • A company may pay a fee to use a league’s, team’s or individual’s name, image or logo on a product or on the products packaging. • Example: NFL grants product licenses to companies that want to use the NFL logo on any products they sell
  • 3. The Products • Licensing agreements can apply to just about any product • The licensor must be careful to select products that reflect the image its brand name has in the public eye
  • 4. Merchandising Licensed Goods • In the past most licensed merchandise could be purchased only at the event venue • Today licensed merchandise is made available through many channels of distribution • You can purchase licensed goods in department stores, chain stores, league sponsored retail outlets, and through the Internet
  • 5. Sponsorships and Endorsements • Two forms of licensing are sponsorships and endorsements • Sponsorships: the promotional vehicles that financially support sports events • All of the major sports organizations use sponsorships to help finance their operations
  • 6. Importance of Sponsorships • Sports organizations need the money generated from corporate sponsors to help pay their costs and expenses • Players salaries, prizes, bills etc.
  • 7. Types of Sponsorships • Sponsorships can be flexible • A company can sponsor a team for a length of time or just sponsor an event
  • 8. Types of Sponsorships • Signage: Sponsors can buy signage at a stadium • Names may appear on scoreboard, floorboards, rafters, and electronic screens
  • 9. Premium Sponsors • Entitlements: occurs when there is one major sponsor for an event • NASCAR signed a 10 year contract with Nextel to be its sponsor • Facility Entitlements: where a company purchases the promotional rights to an entire stadium • Heinz Field
  • 10. Premium Sponsors • Product Exclusivity: only one product in a product category is granted sponsorship • Coke is official drink of Olympic Games