University pushes licensed products, reaps royalty cuts

Tanith L. Balaban Arizona Daily Wildcat Sweatshirts, hats and other memorabilia stand ready for purchase at Campus Athletic, 936 E. University Blvd., even as the fury over Arizona's National Championship win wanes.

Sales of licensed University of Arizona products generate about $500,000 in royalties annually, but that number is expected to increase sharply in the aftermath of the Wildcat's victory, said Derek Eiler, of The Collegiate Licensing Co. The licensing comp any works with the UA to license manufacturers to use registered UA logos and trademarks.

The university receives 8.5 percent of the wholesale price of each item that bears a registered trademark, said Scott Ford, also of the Atlanta-based licensing company.

However, Ford said the cut increases when products carry logos and emblems of the "Final Four" or the "National Championship." Then the NCAA and the UA share a 10 percent royalty - 8 percent goes to the school and 2 percent to the NCAA. He said the UA als o receives a 10 percent royalty on merchandise that bears a national championship logo that is not affiliated with the NCAA.

Actual royalty figures will not be available for three to six months, Ford said.

In a five-day span immediately after Arizona's March 31 championship win, Tucson retailers, including those on campus, sold more than 150,000 T-shirts, Ford said. He said those and other products, like baseball-style caps, sweatshirts, mugs and other appa rel, will continue to generate royalties throughout the year.

The UA's rank as 21st in the nation in 1996 licensed product sales is expected to jump to between 10th and 13th this year, Ford said.

The licensing company represents more than 150 universities and the NCAA, giving it 80 percent of the collegiate market. The University of Michigan is the number one-ranked school, generating more than $1 million in royalties per year, Ford said.

Doug Day, senior merchandise manager for J.C. Penney Co. Inc. in the Tucson Mall, said that in three weeks of business since the championship, the store has sold more sports apparel than it has in the previous nine months.

"It is probably the biggest event ever in Tucson. I can't think of anything else bigger," Day said.

Day said he estimated his store sold more than 13,000 championship items valued in excess of $240,000. He said the store sold between $50,000 to $60,000 in Final Four gear prior to the championship game.

The Pro Image in the Tucson Mall reported sales during the week of April 1-7 were up about 257 percent compared to the same week after the 1996 NCAA Championship game, said Mark Weisbrot, Arizona and New Mexico district manager for The Pro Image.

"It's almost like having Christmas in the spring," Weisbrot said.

Weisbrot said he estimated 2,500 T-shirts and championship hats were sold during that week.

Miles Simon, the Final Four MVP, visited the store the week after the championship. He was mobbed by fans and had to leave through the back door, Weisbrot said.

Campus Athletic, 936 E. University Blvd., has also seen sales jump in the weeks after the championship.

"Sales have definitely increased; more people have walked by and been attracted to the championship merchandise," said Julie Friedman, the store's assistant manager.

Approximate sales of merchandise jumped to between $6,000 and $9,000 for the two-week period after the game, Friedman said.

Kentucky championship sales had to compete with the Kentucky Derby last year, but the UA does not have any direct competition except for the Phoenix Suns, who are in the NBA playoffs.

The UA and the Collegiate Licensing Co. are working together to create promotions to increase royalties and keep the national championship fresh in people's minds, Ford said.

Ford said some promotions being developed include a national championship soft drink that has yet to be chosen but will be distributed and sold throughout the state.

Ford also said Domino's Pizza is having a promotion that may offer a deal sometime in mid-May such as a free commemorative glass with the purchase of a pizza. He said more deals similar to Domino's Pizza's are on the horizon.

An official national championship book is in production with UMI Publications, Ford said. He said this will be the only officially authorized book and may cost between $29 and $36.

Sports Illustrated has also run a full-page advertisement in its last three issues promoting UA merchandise and is running a television commercial nationwide, promoting a limited, covered edition of its national championship issue and a national champions hip basketball with a paid subscription.