Sports Licensed Products: A Source of Solid & Steady Sales

Sales of sports licensed merchandise are approaching the record highs of the mid ‘90s. According to SGMA, retail sales of sports licensed products in the U.S. and Canada were $13.23 billion in 2005 – up from $12.60 billion in 2004.
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WASHINGTON, D.C. – March 23, 2006 – Sales of sports licensed merchandise are approaching the record highs of the mid-1990s. According to the Sporting Goods Manufacturers Association (SGMA), retail sales of sports licensed products in the U.S. and Canada were $13.23 billion in 2005 – up from $12.60 billion in 2004. Sales for the entire licensed products business in the U.S. and Canada in 2005 were $71.21 billion, down from $70.50 billion in 2004.

Of the six major categories (NFL, Major League Baseball, NBA, NHL, NASCAR, and colleges/universities) featured in SGMA's Sports Licensing White Paper (2006 edition), only sales of NHL products dropped in 2005 compared with 2004. The decline in sales of NHL merchandise was due to the lockout that cancelled the 2004-05 season.

Listed below are some of the facts and figures from the Sports Licensing White Paper:

- Statistical Share. The sports licensing share of the total licensed products market in the U.S. and Canada is 19%.

- Virtual Entertainment. Half of the top ten video games sold in 2005 were based on sports licenses.

- Clothing Connection. Apparel is the top category of sports licensed product sales.

- Sales Source. Specialty stores are the leading retail outlet of sports licensed products.

- Ladies League. The NFL says that women account for 40% of the league's fan base.

- Sox Sensations. Recent victories in the World Series by the Boston Red Sox and Chicago White Sox have boosted MLB sales dramatically.

- Worldwide Winner. International NBA licensed product sales are outpacing those in the U.S. in every product category, with the exception of video games.

- Coed Cool. The top five universities for selling school merchandise are North Carolina, Michigan, Texas, Georgia, and Oklahoma.

- Surging Sales. NASCAR merchandise sales have increased by 250% since '95.

There is also a series of charts which indicate Trends in Fan Interest in Selected Sports
– NFL, Major League Baseball, College Football, NBA, College Basketball, NASCAR, WNBA, NHL, and Major League Soccer.

To order SGMA's Sports Licensing White Paper (2006 edition), access www.SGMA.com – click on Insight; click on Industry; and click on General.

The Sporting Goods Manufacturers Association (SGMA) is the global business trade association of manufacturers, retailers, and marketers in the sports products industry. SGMA, owner of the Sports Research Partnership®, enhances industry vitality and fosters sports, fitness, and active lifestyle participation. More information about SGMA can be found at www.SGMA.com.


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