Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, October 28, 1993 TAG: 9310280505
SECTION: BUSINESS PAGE: B-8 EDITION: METRO
SOURCE: Newsday
DATELINE: LENGTH: Medium
Sales of NFL licensed merchandise bearing the team colors and logos of the expansion franchises are expected to reach more than $120 million each by April, according to NFL Properties, the marketing arm of the league. That's about 8 percent of the $3 billion in projected U.S. sales of NFL merchandise in fiscal 1993, up from $2.6 billion last year. Another $350 million worth of NFL apparel and products was sold overseas in 1992.
And the cash registers could start ringing as early as this week.
The NFL approved the logos and colors weeks ago, and a handful of licensees already have produced hundreds of T-shirts and caps with logos and team We also have guys from our company with graphics in hand, positioned at printers in all five cities. Eddie White, Logo 7 colors for each of the finalists - Baltimore; St. Louis; Charlotte, N.C.; Memphis; and Jacksonville, Fla.
"We also have guys from our company with graphics in hand, positioned at printers in all five cities," said Eddie White, director of public relations for Indianapolis-based Logo 7, the NFL's No. 2 licensee in 1992, behind Starter. "They're ready to go with caps and T-shirts as soon as the winners are announced."
White said retailers already have "if win" orders placed, "so we'll be trucking the products to Footlocker, Champs and other chains overnight." Full-page ads were prepared to run in newspapers published in winning cities immediately, telling readers in what stores the merchandise would be available.
There's also money to be made on the products for the three teams who aren't selected. "The league owns the rights to those logos and trademarks, so they'll be collectors' items," said one New York sports marketing consultant.
Sixty-five percent of the NFL merchandise sold is apparel: T-shirts, caps, sweat shirts and jackets. Typically, NFL Properties receives royalties of about 9 percent, which essentially is split between the 28 - soon to be 30 - teams.
Logo 7 reportedly paid the NFL $500 million in royalties last year. That's because merchandise sales have continued to climb. In the 1992 fiscal year that ended March 31, about $2.6 billion of NFL licensed merchandise was sold in the United States, up from $2.2 billion in fiscal 1991.
The league thinks caps, T-shirts, jackets and souvenirs of the new teams will do for the NFL what Miami Magic and Charlotte Hornets merchandise did for the NBA: boost sales in new markets.
Last year the Dallas Cowboys led the pack with 17.3 percent of sales; the Los Angeles Raiders were No. 2 at 16.5 percent. Then there was a drop-off: the Washington Redskins were third at 8.5, the San Francisco 49ers were fourth at 6.5 percent and the Chicago Bears fifth at 6.1. NFL Properties expects the two new teams to immediately break into the top 10.
\ THE WESTERN VIRGINIA ANGLE\ Wayne Mosdell, store manager, CMT Sporting Goods Co., Roanoke: "We had about four calls [Wednesday] for anything that has a Carolina Panthers logo. We'll get sweat shirts and T-shirts next week. Anytime you have a new franchise in any sport, the merchandise sells well."\ \ Kathy Rogers, Tultex Corp., Martinsville: "It will have an extremely positive impact. It opens a new market for us. An expansion team means more business." (Tultex is contracted to make T-shirts, sweat shirts and sweat pants printed with NFL team logos, and apparel worn by coaches and other sideline personnel of three teams during games. The contract with the NFL is through Logo 7, its marketing subsidiary.)\ \ Gene West, president, Collegiate Pacific Inc., a Roanoke maker of printed sportswear: "Carolina people are sports crazy; they couldn't have picked a better place for a team. Needless to say, it will be a boon to business, but not to us. We're not licensed to make NFL goods."
by CNB