THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Monday, January 23, 1995 TAG: 9501230130
SECTION: SPORTS PAGE: C1 EDITION: FINAL
SOURCE: BY HARRY MINIUM, STAFF WRITER
LENGTH: Medium: 96 lines
The East Coast Hockey League is poised to make a change in its bylaws today that would strip the Hampton Roads Admirals of control over sales of their novelties, such as jerseys, hats and pucks, and perhaps force the team to accept a league-imposed redesign of its logo.
The change could cost the Admirals thousands of dollars, force them to stop ordering goods from local companies and probably increase prices of novelties at Scope, team president Blake Cullen says.
The ECHL's board of governors will meet today in Greensboro to vote on about a dozen agenda items, including the move that would transfer control of the 18 team logos from the teams to the league's marketing committee. That committee then would pick a national distributor to license products nationwide - including Admirals products in stores in Hampton Roads.
The league tried to ram through a similar change last year, but
Cullen protested that the ECHL bylaws needed to be changed first. That blocked the move for a year, but Cullen admits he'll probably face defeat today.
Some league officials think the ECHL could hit a marketing bonanza by selling its novelties nationwide.
``Some of them said, `Look what happened with Michael Jordan and the NBA,' '' Cullen said. ``I guess they think they're going to make millions. My response is that we don't have Michael Jordan and we're not the NBA.''
Cullen isn't opposed to a national marketing effort. He said that the NHL recently asked the ECHL to join marketing forces, and that he is urging the league to accept the offer. Failing that, he has suggested that the league market novelties nationally by pooling items in a warehouse and setting up an 800 number.
``I think we should do that, that it's worth the effort to try to make (novelties) available wherever we think there's demand,'' Cullen said. ``All I ask is that they leave me alone in my own market. Just leave me alone in Hampton Roads. Let me sell here, and the league can sell our stuff anywhere else it wants to.''
Cullen has granted rights to market novelties to two firms in Hampton Roads. Wards Corner Sports Goods sells items at Scope and in its sporting-goods stores. Jacobson Inc. markets items to other sporting-goods stores and department stores in Hampton Roads.
Cullen's agreements with those firms give him a generous take of sales, the ability to guarantee that local companies manufacture most of the novelties, and control over where the novelties can be sold.
It's a lucrative business. Few minor league sports teams sell as many novelties as the Admirals, whose games are attended by thousands of fans wearing jerseys. Some Admirals jackets cost nearly $200, though most items cost $10 or less.
Cullen won't say how many novelties are sold, but he acknowledges that Scope sales alone total about $1 per fan, or more than $200,000 per year.
The ECHL's proposed plan would force Wards Corner Sports Goods to buy novelties from a national distributor.
``It would cost Wards Corner a hell of a lot more under this proposal,'' he said. It might force Cullen to end his relationship with Jacobson, because a national distributor would take over the task of promoting novelties to stores.
A percentage of revenues from sales outside of Scope, revenues that now go into the Admirals' coffers, would be shared by all league teams.
Cullen says that isn't the worst feature of the plan.
``The worst part is that we would lose control of our own market,'' he said. ``The marketing committee probably would grant a license to Classic Cards to do our cards. I would like to give that business to (Admirals captain) Dennis McEwen and the company he works for. But I won't be able to. I won't have any say over what I buy.''
Cullen recalls walking into a shop at the Norfolk Airport last year and striking up a conversation with the shop owner. He asked if she would be interested in selling some Admirals novelties. She agreed to sell a few dozen items.
``Well, they sold out quickly and then ordered more, a lot more,'' Cullen said. ``They're still selling them and are very happy. That's the way we've done things. We deal with businesses, small and large, personally. We're flexible.
``That wouldn't happen with a national distributor. A small businessman would call and ask for a dozen hats, and they'd laugh at him. They'd tell him he'll have to order a minimum of 500 items, and fill out a seven-page credit report first. That means that our hats and shirts other items won't be in a lot of stores we'd like them to be in.''
Cullen says a national distributor who is bidding for the ECHL contract told him he would have many of the team logos redesigned, something the league could do legally once the bylaws are changed.
``He said a lot of our logos are plain,'' said Cullen, whose team logo is blue and gold with an anchor with stars. ``He said we all need to have animal logos. An animal with an attitude is what the kids want, he said. I told him I already have an animal with an attitude. He's (coach) John Brophy.''
The league will also discuss expansion, whether to hold an all-star game next season and Cullen's proposal to expand league rosters from 17 to 20 players. But nothing is more important to Cullen than the change in bylaws.
``There has been talk of a compromise,'' he said. ``I hope it happens.'' by CNB