Licensing: Did You Know? Collegiate
Friday, July 16, 2010 at 11:05AM The value of retail sales for Collegiate-based licensed merchandise was estimated at $3.2 billion in 2009, according to "The Licensing Letter Royalty Trends Report." That $3.2 billion accounts for 3.5% of licensed merchandise retail sales in 2009 in the U.S. and Canada. This data was derived from The Licensing Letter’s Annual Licensing Business Survey.
The "Royalty Trends Report" estimates the average royalty rate for Collegiate-based licensed merchandise was 9.8% in 2009, one point higher than the overall industry average (8.8%) for licensed merchandise.
In further analysis of the data, the report goes on to explain that most collegiate licenses carry a royalty rate between 7.5% and 8.5%. Schools with larger programs, which command a higher (9% to 10%) rate, and goods commemorating national championships, such as NCAA Championships, boost the overall average royalty rate.
The SMA Team
