The Wyoming High School Activities Association is looking into a licensing deal that would allow high schools to profit from sales at large retail stores on apparel that bears the school’s name, mascot or logo.

The association’s board of directors approved the agreement with Licensing Resource Group in Casper late last month and Commissioner Ron Laird said he and his staff are currently looking into finalizing the deal, which would take effect January 1.

Under the proposed agreement, 50 percent of the royalties from the apparel sales at large retailers like Kohl’s and Wal-Mart would go back to the individual school, with the state association receiving 7 percent, the National Federation of State High School Associations getting 2 percent and the rest of the royalties going to the licensing company.

The royalty process would come into play at the manufacturing level, and 10 percent of every sale goes to the total royalty pot. That means if a t-shirt has a wholesale price of $10, the individual school would receive 50 cents from the sale.

While the state association is on board now, Laird said some concerns about the potential impact on local businesses and booster club efforts cropped up in the early stages of discussion. But after working with the licensing company they have reworked the contract to protect those entities that have long supported high school sports in Wyoming, he said

“We didn’t see any downside to it, it’s really not changing anything that’s already happening,” Laird said.

Dick Welsh, general merchandise manager at Licensing Resource Group, said the company first started looking into agreements with high schools when it heard from numerous big-box retailers that the apparel was part of a fast growing market. Wal-Mart representatives tell Welsh it could be a $100 million market for the retail giant, he said.

Additionally, the company saw an opportunity to help schools make money from apparel that used their logos without interfering with the relationships individuals the schools already had with their local communities.

“We don’t want to add any burden to their particular cause,” he said.

Welsh said his company contacted every state about similar deals, and so far about 30 to 35 have either agreed to a contract or have shown high interest in doing so.

“Considering we only started less than a year ago, we’re doing pretty well as far as state count is concerned,” he said.

Jim English, president-elect of the WHSAA board and activities director at Torrington High, also said he sees the possible agreement as a positive and doesn’t see it impacting the relationships the school has long had with local businesses and booster clubs.

While noting that schools with bigger sports programs located in larger cities like Cheyenne will see more money come their way, English said he doesn’t see any glaring downsides for smaller schools like Torrington.

“It’s something that professional teams have always done, it’s something colleges have always done,” he said in addressing the issue of athletics licensing.

And if an individual school isn’t interested in the program or already has a licensing agreement in place, an opt-out clause is available, but Laird said he doesn’t see that coming into play.

“I’d be very surprised if any of the schools opt out,” he said.



For the complete article see the 10-14-2009 issue.

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