NFL Licensing and the Million Dollar (Royalty) Club

Greetings -

My name is Scott Sillcox and I am a consultant to people and businesses wanting to enter the licensed sports product business. If you are in need of information about sports licensing, I'm your guy and you should contact me at ssillcox@rogers.com . I wrote a 12 part blog on sports licensing and even though it was written in 2012, it has been updated and is still the definitive introduction to sports licensing anywhere out there - it's been viewed more than four millions times.

Today I'd like to tell you what I know about the NFL's Million Dollar Royalty Club.

For some years – I believe since 2000-ish - NFL Properties (the NFL's licensing arm) has been welcoming companies into what they call the “Million Dollar Club”. The Million Dollar Club is a group of companies who for the first time generated at least $1,000,000 in annual royalties for the NFL. When the NFL royalty rate was 10%, this meant a company had to have sold at least $10,000,000 worth of NFL merchandise in that year ($10,000,000 sales x 10% royalty = $1,000,000 in royalties). When the NFL rate increased their royalty rate to 12% in 2004-ish, this meant a company needed to sell at least $8,500,000 worth of product in a year to gain entry to the club ($8,500,000 sales x 12% royalty rate = $1,000,000 in royalties). And when the royalty rate increased to 14% in 2010-ish, it meant that a company needs to have sold at least $7,500,000 of product per year to gain admission to the "Million Dollar Club" ($7,500,000 sales x 14% royalty rate = $1,000,000 in royalties).

My company, Maple Leaf Productions, was an NFL licensee from 2000 onward and I was present each year when the NFL officials announced the newest members to the club as part of their annual Hardlines Summit (now called the Consumer Products Summit) held each March in a rotating NFL city (the first Summit was held in Green Bay in March 2003).

Sadly, I didn’t keep notes of who the various winners were for the first 10+ years, nor does the NFL publish the list in any sort of public forum, so forgive me for providing you with partial information. If you have information that you can share, I'd welcome your contribution!

I certainly recall that NFL licensing giants such as Wincraft and The Northwest Company were members of the club during the 2000 - 2010 era, but I would only be guessing from memory at some of the other licensees who gained admission at that time.

That being said, here is what I do know re companies that have made it to the lofty level of having generated at least $1,000,000 in royalties for the NFL for the first time. If you happen to know any winners prior to 2012 and can provide me with details, I’d be happy to update this post and give you credit.

2000 - 2010 Seasons
Wincraft
The Northwest Company

Named in March 2012 for the 2011 NFL Season

1. Fabrique Innovations

2. Tervis Tumbler

Named in March 2013 for the 2012 NFL Season

???

Named in March 2014 for the 2013 NFL Season

1. BDA

2. Great American Products

3. Otter Box

4. Pandora Jewelry (now exited from licensed sports products)

5. Sports Licensing Solutions

Named in March 2015 for the 2014 NFL Season

???

Named in March 2016 for the 2015 NFL Season

1. Aminco

2. Amscan (now exited from licensed sports products)

3. Little Earth Productions

4. For Bare Feet

Named in March 2017 for the 2016 NFL Season

???

Named in March 2018 for the 2017 NFL Season

Logo Brands

Named in March 2019 for the 2018 NFL Season

Pegasus Sports

Named in March 2020 for the 2019 NFL Season

TBA

Thanks for reading and if you are looking for an online database of licensed sports product companies in North America, I have created a searchable online directory of most of the licensed sports products companies and key personnel in North America. This valuable resource can be found at: www.LicensedSports.net .

Thank you for your interest -
Scott

Licensed Sports Products and the ebb and flow of time: What can change in 10 short years

I’ve written a fair bit about how difficult it is to acquire an NFL license, and I stand by what I have said and written. It is tough sledding to get an NFL license.

But time is a curious master, and I wanted to share with you the slightly bigger picture of what time can do and what the passage of time reveals.

When I became an NFL licensee in 2000, there were a large number of licensees – perhaps 300 or more. Things ebb and flow, and shortly after I became a licensee the NFL made a conscious decision to significantly reduce the number of licensees – a real bloodletting as I recall. There could be all sorts of reasons for the NFL to decide to reduce the number of licensees (then or now), but the prevailing thought at the time, as it was explained to me by several members of the NFL licensing team, was that if the NFL had six companies producing headwear, they would fight and bicker and point fingers at each other and generally make life miserable for the NFL licensing staff, but more importantly, they would compete in the marketplace and lower the wholesale, and therefore retail, prices of ball caps. Now on the surface of things that sounds like a good thing – companies competing and prices being reduced - but look at it through the eyes of the NFL licensing team at the time…

Let’s say each of the six companies sold 500,000 ball caps, and let’s say the average wholesale price of each cap was $7.50. The NFL’s royalty (at the 2002 royalty rate of 10%) would be:
500,000 caps/company x 6 companies x $7.50 each wholesale x 10% royalty = $2,250,000 in royalties

But remove the competition (ie reduce the number of licensees from 300+ to 100), and the prices for caps are going to rise. And the thinking was that regardless of price, the number of caps sold will be the same (perhaps a flaw in the thinking I realize, but accept it for now). In this scenario, the NFL royalty would be:
3,000,000 caps/company x 1 company x $10 each wholesale x 10% royalty = $3,000,000 in royalties.

And not only would the royalties increase by 25% by reducing the number of licensees, but the NFL licensing staff headaches of trying to adjudicate the fighting and finger-pointing between licensees would also largely go away. A win-win if ever there was one for the NFL licensing team, and thus the rationale for reducing the number of licensees.

Whether you agree with the thinking or not, accept for the moment that the prevailing thinking in 2000-2001-2002 was that by reducing the number of NFL licensees, the royalties collected would increase and the headaches would decrease.

So between 2000 and 2003, the number of NFL licensees decreased from 300+ in 2000 to just less than 100 by 2003.

September 2013: I used to show a list of NFL licensees that was given to me by the NFL in 2003, but I have been asked by the NFL not to publish that list - strange but true. This isn't a big deal, so let's not sweat it. Suffice it to say that the list, which I have, shows the NFL having just less than 100 licensees and since I was given this list by the NFL in March 2003, I will presume that it is more or less accurate.

Turn the hands of time ahead to 2008, and the NFL was continuing to make further reductions in the number of licensees. The thinking, as it was explained to me in March 2008 at the NFL Hardlines Summit in Miami, was that the NFL wanted “blue chip” licensees, and by reducing the number of licensees (from 100-ish where it had hovered for 5 years) to 80 while simultaneously increasing the annual guarantees somewhat significantly, they would shed some of the smaller, riskier companies and yet still increase the royalties generated on the basis of increased annual guarantees. “If you want to remain an NFL licensee, you’re going to have to prove you belong by paying for that privilege.”

Turn the hands of time to 2012, and the pendulum has clearly swung the other way. By my count there are approximately 175 NFL licensees in 2012, a very significant increase since 2008.

Why has the pendulum swung the other way? A host of reasons, including:

1. The NFL lost the American Needle court case in 2010, and regardless of what the NFL might say publicly, the Supreme Court ruling meant the NFL needed to increase competition and that meant increasing the number of licensees, particularly on the apparel (softgoods) side of things.

2. The NFL licensing team had some turnover after 2008, and with new people come new ideas. “What do you mean they reduced the number of licensees and stifled competition – what were they thinking?”

3. The NFL licensing team realized that by limiting competition, they were also limiting creativity and ingenuity, and they were actually starving the baby, not nourishing it.

Which way is the pendulum swinging right now? Is it still on the upswing or has it reached the peak and will soon be on the downswing? My guess is the NFL is still increasing the number of licensees, and that we might see as many as 200+ licensees in the next year or two.

And what impact would a larger pool of licensees have on things? If you are someone who is interested in acquiring an NFL license, my guts says now is a pretty good time to make your case and get in line.

Here are a couple fact-driven points that I would like to make.

I have said that things ebb and flow. I said that in 2000 there were 300+ NFL licensees, and by 2003 that number was barely 100 licensees. And I have said that now - in 2012 - there are roughly 175 licensees.

Of the 98 licensees from 2003 - not even 10 years ago – what percentage would you guess are still NFL licensees in 2012? 70%? 80% 85%? I would love to ask my friends at the NFL this question, because I’m guessing they have never been asked.

So please take a moment and guess, and think why you guessed the figure you did. What percentage of NFL licensees in 2003 are still NFL licensees in 2012?

The truth is, I think even the staff in the licensing department of the NFL would be surprised by the answer. I think if we were all honest with each other, we would think a fairly high percentage would still be licensees, largely because we all want to believe that having an NFL license is a bona fide ticket to prosperity – the pinnacle of the licensed sports business, the gold standard by which all leagues are judged.

So here are the facts as best I can determine:

Of the 98 NFL licensees in 2003, only 44% (43 companies) are still NFL licensees in 2012 – more than half the licensees have fallen by the wayside in less than 10 years. I realize that some companies were purchased and thus in a sense they are still licensees, but that’s gilding the lily. I also realize that I may have missed a handful of companies because the company name has changed slightly and I may have miscounted by a few companies, but the big picture point is that it appears that less than half the NFL licenses in 2003 remain licensed by the NFL less than 10 years later.

LIST OF THE 43 2003 NFL LICENSEES WHICH ARE STILL LICENSED IN 2012
1 Action Images, Inc.
2 BIC Corporation
3 Bradford Exchange, The
4 Brax, Ltd.
5 Highland Mint, The
6 Caseworks International
7 Classic Balloon Corporation
8 Decopac
9 Duck House, Inc.
10 Electronic Arts Inc.
11 Everlasting Images, Inc.
12 Fabric Traditions
13 Franklin Sports, Inc.
14 Fremont Die Consumer Products, Inc.
15 Great American Products, Inc.
16 Hallmark Licensing, Inc.
17 Hunter Manufacturing Group, Inc.
18 Imperial International
19 Kolder Inc.
20 Danbury Mint / MBI Inc.
21 McCarthur Towel and Sports, Inc.
22 McFarlane Toys
23 Memory Company, The
24 Mounted Memories, Inc.
25 MSA
26 National Emblem, Inc.
27 Northwest Company, The
28 Party Animal, The
29 Photo File, Inc.
30 Pro Specialties Group, Inc.
31 Reebok International, Ltd.
32 Rico Industries DBA Rico Industries/Tag Express
33 Riddell
34 Siskiyou Buckle Co., Inc.
35 Sports Coverage
36 Forever Collectibles / Team Beans, LLC
37 Topperscot, LLC
38 Topps Company, Inc., The
39 Twins Enterprise, Inc.
40 Wilson Sporting Goods Co.
41 Wincraft
42 Winning Streak Sports, Inc.
43 Zippo Manufacturing Company

Or phrased another way, of the 175 NFL licensees in 2012, only 25% (43 companies) were licensees in 2003 - less than 10 years ago! So over a period of less than 10 years, the NFL created well more than 100 new licensees. And that doesn’t take into account the companies who became licenses in 2004 –2010 and then fell by the wayside by 2012. So it’s possible that the NFL may have licensed 150 new companies, perhaps even 175 or more, over the last nine years – a significant number of companies!

No matter how you slice it, that’s a fair amount of turnover. In one sense that’s good news if you are currently seeking a license – this suggests that it’s not an impossible dream.

On the other hand, this is a bit scary in that it reveals, no matter how you slice it, that having an NFL license is not a ticket to the promised land. And having that perspective on things is an important lesson for anyone to learn, the NFL included.

Food for thought…

Many thanks for reading and as always, please contact me if you have any questions.
Scott Sillcox

List of NFL Licensees - National Football League Licensees

Greeting folks!

This note is written by Scott Sillcox in fall 2023 in response to a lot of readers asking me two questions:

A. You wrote and posted many of your blog postings several years ago, is the info still relevant today? Short answer - absolutely! The basics of sports licensing change very little over the years, so I strongly suggest that if you are trying to learn about sports licensing, read away! I have also tried to update certain areas where there have been significant changes, so I feel comfortable in telling you that this information is still highly relevant.

B. You mention that you are a consultant and might be able to help me, do you still do consulting? Short answer - absolutely. I work in the licensing field virtually every day of my life, so if you have questions or would like my help, contact me! The two primary ways I work are hourly telephone consulting ($175US/hour) and face-to-face meetings where I come right to your office for a full day ($1500US/day + $650 travel expenses).

Many thanks and happy reading -
Scott Sillcox

================

Have you been looking for a list of NFL licensees? Have you been scouring the internet but keep coming up empty? I know - I've been there too.

I've got good news - scour no more - you've found the right place!

In early 2012 we launched a brand new, searchable Online Directory of 2500+ North American Licensed Sports Products Companies - it’s called LicensedSports.net and it can be found at that same address and costs just $59 to use for three months. This is a highly searchable directory of licensed sports products companies in North America, companies that have been licensed by various sports leagues. There is nothing on the internet that comes close to this resource. And I update the database weekly, sometimes daily. So please take advantage of this resource and "Search Away". If you're not sure if this database would be worth the investment, check out this 3 minute video that gives you a sense of what to expect.

Two great features of the Online Directory are:

1. The dynamic view of each company’s website – when you look at a company’s record, there is a live screen with their website right there on your screen.

2. We have tried our best to show one or more key contacts at each company, and wherever possible we have included email addresses, phone #’s, fax #’s and even Linkedin url’s.

This is intended to be a reasonably comprehensive and up-to-date listing of licensed sports products companies, but please understand no list is completely comprehensive or entirely accurate – we strive to do our best and over time this list will become even better. And remember, because this is a live, online directory, it will be constantly changing. I will be adding licensees as I learn about them, and deleting those who exit the licensed sports products business as well. If you have any comments or suggestions, please email me at: ssillcox@rogers.com

So while I encourage you to visit the actual website/online directory to get up-to-date (and far more detailed) information, here is a snapshot of NFL licensees as of March 2012.

List of NFL Licensees - List of National Football League Licensees
Company Name
1 180s LLC
2 A & A Global Industries
3 Action Images Inc.
4 Activa Global Sports & Entertainment LLC
5 Acushnet - Titleist
6 adidas America / Reebok
7 Akzo Nobel Paints
8 American Needle
9 Aminco USA / Aminco International
10 Anastasio Moda
11 The Antigua Group
12 AP Images
13 Artissimo Designs / Artissimo Sports & Entertainment
14 Athalon Sport Gear
15 Authentic Street Signs
16 B.S.I. Products Inc.
17 Baby Fanatic
18 Best of Times LLC
19 BIC Inc. / Bic USA
20 Big League Promotions - See Rico / Tag Express
21 Big Time Jersey LLC
22 Blakeway Worldwide Panoramas
23 Bleacher Creatures
24 Boelter Brands
25 BÖfor Betsy
26 The Bradford Exchange Ltd.
27 Brax
28 Brite Lite Logos
29 Caseworks
30 Centon Electronics
31 Charm 14
32 Classic Balloon
33 ComfyFeet
34 Concept One Accessories
35 Crocs
36 Cuce Shoes
37 Cufflinks
38 Cutter & Buck
39 The Danbury Mint / MBI Inc.
40 Deco Pac
41 Duck House
42 Dunbrooke Apparel Corp.
43 EA Sports - Electronic Arts
44 EA Sports Canada - Electronic Arts
45 Eagles Wings
46 EB Brands - Excaliber Division
47 Enmon Accessories LLC / Old Pro Leathers
48 Eton - a division of Tandy Brands Accessories
49 Evergreen Enterprises / Team Sports America
50 Everlasting Images Inc.
51 Fabric Traditions
52 Fabrique Innovations / Sykel / Scrub Dudz / Collegiate Snuggie
53 Fan Creations
54 Fan Mats
55 FatHead- LLC
56 Fazzino
57 Fiki Sports
58 Foam Fanatics LLC
59 For Bare Feet / FBF Sportswear
60 Forever Collectibles aka Team Beans
61 Forty Seven Brand / Twins í47 Headwear/ Banner í47 Apparel
62 Franco Apparel Group- a division of Infinity Group
63 Franklin Sports Industries Inc.
64 Fremont Die
65 Game Time Geeks / Flash Ventures / Tribeca
66 Game Time Watch / Game Time LLC
67 GameWear International / Wear The Game
68 Gerber Childrenswear
69 G-III Leather Fashions Inc. / G-III Sports / 58 Sport
70 Good Stuff / Win Stuff
71 Great American Products
72 Hallmark Cards Inc.
73 The Highland Mint / Bullion International
74 Hunter Canada
75 Hunter Manufacturing
76 ID Blingz
77 Imperial USA
78 Inflatible Images
79 Jarden Sports Licensing- LP
80 JF Sports Canada / NNL Enterprises
81 JF Turner / John F. Turner & Co. / Lang Holdings - See Perfect Timing
82 Junk Food Clothing
83 KE Specialties LLC
84 Keg-a-que
85 Keyscaper
86 Kolder
87 Little Earth Productions Inc.
88 Logoart - A Division Of Herff Jones- Inc.
89 Majestic Athletic / Majestic Industries / VF and VFC
90 Marketing Results Ltd / MRL Sports
91 McArthur Towel and Sports- a Wincraft Company
92 McFarlane Toys / TMP International
93 The Memory Company
94 Milliken Rugs / Milliken and Company
95 Mounted Memories
96 MSA - The Safety Company
97 MTH Trains
98 MVP Collection
99 Name In The Frame / That's Me Sports / MVP Pics
100 National Design
101 National Emblem
102 New Era Cap Co. Inc.
103 NIKE USA
104 NorthPole LLC
105 The Northwest Company LLC
106 Original Mini's Jersey
107 Pangea Brands
108 Panini Group / Panini America
109 The Party Animal Inc.
110 Peak Season Shop- a division of Isaac Morris
111 Perfect Timing- Inc.
112 Pets First Inc.
113 Photo File Inc.
114 Picnic Time Inc.
115 Power Decal- a division of Axiz Group
116 Press Pass Inc.
117 Pro Specialties Group
118 Profile
119 Promark / Team Promark
120 Promotional Partners Worldwide LLC
121 Quick Hit- Inc / Majesco Entertainment
122 Quiksilver Inc.
123 Real Indigo Sports / PL Sports
124 Reebok - Mitchell and Ness Nostalgia Company
125 Reebok - Outerstuff- a division of adidas
126 Reebok - Sports Licensed Division
127 Replay Photos LLC
128 Reyn's / Reyn Spooner Inc.
129 Rico Industries / Tag Express
130 Riddell Sports
131 Rooms To Go
132 Sara Lynn Togs / College Concepts / Concepts Sport
133 Scottish Christmas / SC Sports
134 Seven Sons / Sterling Contract Packaging
135 ShurTech Brands
136 Siskiyou Gifts / Siskiyou Buckle Co.
137 Skidders- a division of Celebrity International
138 Skinit Inc.
139 Sports Coverage
140 Sports Logo Lights LLC
141 Stadium Associates
142 Style Pasifika International
143 Team Golf / College Golf Gear / Alumni Golf
144 Team Grill Inc.
145 Team Sports America - See Evergreen Enterprises
146 Tervis Tumbler
147 Tiffany
148 Topperscot
149 The Topps Co. Inc.
150 Trends International- LLC
151 Trends International USA
152 Under Armour
153 UPI Marketing Inc. / Team Keys
154 USA Licensed Bows / Sports Bows
155 USAopoly
156 Victoria's Secret / VS Pink
157 Vineyard Vines
158 Wild Sales LLC
159 Wilson Sporting Goods
160 Wincraft Inc.
161 Winning Streak Sports
162 Wolf Manufacturing Company
163 Zeikos Inc. / iHip
164 Zippo Manufacturing Company

I have also attached a jpg of the same list showing the City, State/Province and Country of each NFL licensee. But once again, remember that if you go online to the searchable directory, you will get complete information including address and website, as well as contact information including phone, fax, email and in some cases Linkedin info.

At some point you might ask yourself, why would Scott Sillcox spend so much time and effort to create this Online Directory of 2500+ licensed sports product companies in North America?

The answer is simple. I have a fair amount of knowledge about the licensed sports products business, knowledge that seems to be in scarce supply, especially on the internet. After spending 15+ years in the licensed sports products business, I accumulated a wealth of knowledge that I am happy to share. This blog and the Online Directory are designed to share that information and are my way of giving back and helping people interested in the world of licensed sports products.

This blog and Online Directory are also my way of letting people know that I am a licensed sports products consultant. I am available to consult with existing and potential licensees and my goal is simple, to help you make money by being a better licensee and/or save money by avoiding licensing pitfalls. If you would like to learn more, please contact me: ssillcox@rogers.com or by cell 416-315-4736. I am here to help and I am a good listener! And if you are someone interested in becoming a sports product licensee and haven't yet read my 12 Part Blog called "An Insider’s Guide to the World of Licensed Sports Products in 12 Parts: Practical Lessons from the Trenches", I encourage you to read it - you can find it in the blog listing to the right of this posting. The introductory blog can be found here.

But most importantly, check out this searchable Online Directory of North American Licensed Sports Products Companies at LicensedSports.net - it's only $59 to use for three months. And I update the database weekly, sometimes daily.

Thanks and Search Away!
Scott