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