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VBS – Lesson 8 Licensing “NOTES”. VSB – 8 “Licensing” Licensing Royalty Licensee Licensor Be sure to read these as they are listed on the side of your VBS – Lesson 8 Assignment Sheet. Key Terms. Licensing. Many companies fined it extremely attractive to be associated with athletes.
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VSB – 8 “Licensing” Licensing Royalty Licensee Licensor Be sure to read these as they are listed on the side of your VBS – Lesson 8 Assignment Sheet Key Terms
Licensing Many companies fined it extremely attractive to be associated with athletes. Various items sold with licensing agreements; shoes, cleats, gloves, bats, jersey, etc. It is typically win/win situation for both the parties involved.
Examples…. Jon Wall - LeBron - Kevin Durant -
How does it work? 1st – a company will license the use of the name and/or logo on a particular item. 2nd – the license may be exclusive (means that no one else can sell the same type of item with the team’s name and logo) or non-exclusive. 3rd – typically the Licensee pays the team a fixedfee and a % or amount per unit soldof its sales on the item (know as the royalty). VBS – three licensing agreements to analyze; DVD’s, Sports Goods and Apparel
Who do teams/athletes pick who to have licensing contracts with? A team/athlete will consider the amount of the fixed fee, and the royalty (% of the sales) based on the estimated sales projections of the item. Which deal is better? Fixed Fee Royalty or Price Units Sold Estimated Sales $100,000 $2.00 10,000 $25,000 $3.00 75,000 $200,000 $1.25 30,000 $120,000 $250,000 (best deal) $237,500
Assignments • VBS – Lesson 8 “Licensing” Do not turn in the assignment sheet until you equaled or surpassed the Number To Beat! $730,000 • FFFL Week 13 – Stats Update