Impressions - Sports Fan Retailer - 25

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2016, however, the industry is keeping
an eye on the NFL's ratings woes, which
add to worries over its future in light
of continued concussion concerns and
player-behavior issues.
Retailers and licensees say they have
not seen an impact on NFL licensed
products to date. "TV is losing some
of its audience to fantasy football,"
says Carl Banks, a former NFL player,
and founder and president of apparel
marketer G-III Team Sports by
Carl Banks. "But the fan enthusiasm
has always been great. People aren't
necessarily enjoying it in front of the TV
anymore, but the interest in the game
hasn't waned."
ALL EYES ON FANATICS
On the soft goods side, the big sports
performance brands - Nike, Under
Armour, adidas/Reebok, as well as
Fanatics - continue to sign lucrative
all-encompassing deals with leagues and
universities.
In October, the National Hockey
League (NHL) expanded its relationship
with Fanatics, making the latter the
official manufacturer of league replica
jerseys, along with a broad assortment
of other apparel and headwear. And
as of press time, it has been speculated
and reported in numerous media outlets
that MLB will switch from Nike and
Majestic Athletic to Fanatics and Under
Armour starting in 2020, giving Fanatics
significant apparel rights and granting
Under Armour on-field branding.
Consolidation of apparel deals by
larger licensees has been a trend for
several years, but a new wrinkle has
been the increasing participation of
Fanatics. This development evokes fear
among many licensees and retailers, as
the company increasingly positions itself
as a competitor by forging deals that
include product sourcing and bricksand-mortar operations.
"It's almost like a monopoly is coming

January 17-19, 2017

Figure 1
LONG TERM TRENDS
RETAIL SALES OF LICENSED MERCHANDISE BASED
ON SPORTS PROPERTIES, U.S. & CANADA, 2008-2015
(in billions of U.S. dollars)

2015

$14.78

2014

$14.1

2013

$13.44

2012

$13.07

2011

$12.79

2010

$12.15

2009

$12.5

2008

$15.06

0

5

10

15

20

SOURCE: The Licensing Letter

in," says Duane Adams, president of
West Coast retailer Sports Fever.
"It's safe to say Fanatics will be central
to what's going on at retail," says Marty
Brochstein, senior vice president of
industry relations and information at
the International Licensing Industry
Merchandisers Association (LIMA).
"They're still primarily e-commerce,
but they're increasing their bricks-andmortar footprint. They're taking licenses
on their own and putting out unique
goods under the Fanatics brand. They're
not just reselling, they're doing all of
what the modern retailer does, including
sourcing their own stuff."
Licensors working with Fanatics see
positives in terms of synergies, market
responsiveness and strategic direction.
The NFL Players Association (NFLPA)
signed a master direct license earlier
this year with Fanatics for hard and soft
lines earlier this year, effective in 2017.
"The licensees were skeptical at first,
but now many of them are renewing

their sub-licenses for next year," says
Steve Scebelo, NFLPA's vice president
of licensing and business development.
"That indicates that it's not only in the
best interest of the NFLPA, but of the
industry as a whole."
For retailers, these deals not only shift
the focus in terms of which brands are
carried, but they can reduce choice. "On
a strictly competitive basis it's tough for
us," says Rich Nelson, NCAA buyer for
regional retailer Fanzz. "We want to
offer our customers every option that is
possible and we don't like restrictions.
We like to have as many options
as possible."
Even
with
consolidation
in
performance apparel and jerseys,
there still is room for unique, usually
premium items that the master licensee
cannot efficiently provide. "For every
New Era, Nike, and Under Armour,
we have a Johnnie-O, a Vans, a Tommy
Bahama," says Noah Garden, executive
vice president of business, MLB. "They
25
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