Sports licensing has arrived as one of the fastest growing sectors of the licensing business worldwide. The Sports Licensing business (worldwide) stands approximately at $ 17.5 billion, generating $800-$900 million in royalty revenue annually. Sports licensing accounts for about 11 per cent of the global market. For sports rights owners of all sizes, Licensing & Merchandising is an essential part of the business mix, both producing revenue and re-enforcing the sense of fan identity and belonging. Licensing & Merchandising is one of the most powerful contemporary forms of marketing and brand extension available to brand owners today and is being used in ever increasingly sophisticated ways.
The logos, symbols, names of sports organisations and the team members themselves have become increasingly marketable as customers relate to the product, thereby adding to the revenue generation of any sports-related organisations. These items are the Intellectual Properties (IP) owned by the sports institutions, and the process of permitting the right to use these properties by the IP owner or licensor to another entity or licensee on profitable items or merchandise can be termed as licensing. The buyers’ perspective forms a significant element of any product in the market and licensing proves to be a success mantra for both the licensor and the licensee through the emotional connectivity it manages to build to enhance the relationship with prospective customers.