Dallas Cowboys fan Joseph Hernandez was standing in his driveway waiting for his Uber car to arrive. He knew the driver was bringing his advanced copy of the brand new EA Sports’ Madden NFL 16 that he had ordered through Uber’s special one-day promotion. But he didn’t know about the passenger. So when the GMC Yukon pulled up and former Cowboys’ linebacker Bradie James stepped out and handed him his Xbox game—along with a “swag bag” containing Uber mugs and other goodies—he nearly keeled over.
It was an experience Joseph would never forget, one that would deepen his devotion to Uber which he went out of his way to praise for the cameras recording the event. And so it went in the other 31 NFL markets where Uber ran what it described as one of its most successful promotions ever. Click here for a video highlight of the EA/Uber campaign featuring Redskins’ QB Kirk Cousins.
The invisible hand behind the Uber promotion was the NFL Players Inc., the licensing and marketing arm of the NFL Players’ Association (NFLPA). NFLPA not only procured the players who hand-delivered the Madden games to lucky passengers but also helped connect its marketing partner Uber with longstanding licensee EA Sports. The deal is typical of how NFLPA is using the star power of its players to maximize and grow its $1.34 billion licensing business.
Context: The Business Model
To appreciate what the NFLPA is doing, you need to recognize that like the other pro sports leagues, the NFL relies on a two-tiered licensing system:
- The League, i.e., 32 team owners, owns the rights to team names, logos and “trade dress,” or visual appearance (e.g., Raider silver-and-black or Viking horn-shaped striping);
- The NFLPA owns the rights to the players’ names, likenesses, numbers and signatures.
When a player enters the NFL and signs his player contract, he also signs a group licensing agreement with the union authorizing the NFLPA to market his rights as part of a group of six or more players. and negotiate group licensing deals on their behalf.
Evolution of the NFLPA’s Licensing Strategy
Appreciation of the NFLPA’s licensing successes also requires a little historical context. The NFLPI was formed in 1994, at a time when players had neither the resources nor inclination to seek their own opportunities. Accordingly, licensing was left to the League and players were largely content to accept an allotted share on the deals. Player licensing was on cruise control and the union relied on the growing popularity of the sport to do the work.
This passive approach of sitting back and letting the owners grow the sport remains the model in some sports leagues. The NFLPA was the first players’ union to take a proactive approach. “It started with an epiphany at the end of the [2011] lockout when we really began to appreciate the power of the players,” relates Demaurice (De) Smith, who took over as NFLPA Executive Director in 2009. “We realized that the players weren’t just the benefactors of the sport’s popularity; they were a key reason for its existence.”
Having recognized the players’ potential, the NFLPA embarked on a more aggressive, proactive licensing strategy to maximize it. In 2014, the NFLPA added impetus to the program by naming Ahmad Nassar, a seasoned NFLPA licensing attorney, as President.
Leveraging the Players
Like before, the NFLPA still gets much of its licensing revenues via product categories traditionally associated with sports, including video games (with EA Sports as principal licensee), apparel (Nike, VF, Outerstuff), and trading cards (Panini, Topps). And like before, the principal licensees in those categories also secure separate licensing agreements with the NFL. But the NFLPA also seeks to cultivate its own deals independently of the League. It’s a new approach that often requires creativity, imagination and willingness to innovate. Examples:
Players-only deals: The NFLPA is pioneering new kinds of deals licensing the names, likenesses, numbers and signatures of popular players without the team rights owned by the League. Examples include “spirit jerseys” for women and downloadable player avatars for Temple Run 2 and other mobile games. “Fans love not just their teams but their players,” explains Nassar. Fantasy sports have also deepened personal attachment to individual players.
Collaboration with other licensors: The NFLPA has been creative in finding ways to collaborate with other licensors. The leading examples are deals combining individual players’ and collegiate rights, e.g., NFLPA’s teaming with licensees who also have collegiate t-shirt and jersey rights to create products featuring the college jerseys of popular NFL players like Tom Brady (University of Michigan) and Russell Wilson (University of Wisconsin).
Expanding the licensee pool: The NFLPA licensee roster now totals more than 80. Although most licensees are in one of the union’s traditional triad of apparel, hardlines (e.g., trading cards, toys, gifts, etc.) and multimedia lines, the NFLPA has also reached out beyond its backyard for licensing and marketing partners including nonprofits, online artist communities, children’s book publishers, confectioners, entertainment licensees and car services.
Expanding the product pool: The NFLPA has moved into new product categories, like food/beverage (e.g., QB gummies), women’s apparel (e.g., G-III Sports’ Touch by Alyssa Milano), wellness apps (e.g., Fan Health Network) and experiential services (e.g., Fandeavor).
Expanding the geographic pool: The NFLPA has also made new licensing deals outside the U.S., including Mexico and Europe. Australia will soon be added to the list thanks to the popularity of Jarryd Hayne, the established Aussie rugby star who made the San Francisco 49ers as a rookie running back.
Broadening the Base
As in other sports, NFL player licensing has traditionally been limited to the household names. Although it still looks after the Peyton Mannings of the world, the NFLPA is determined to get more players involved in licensing. “The ultimate vision is to be able to provide opportunities for all 1,800 of our members,” says NFLPA VP Licensing & Business Development, Steven Scebelo. “Social media, interactive retail models, 3D printers and other technology is making it possible to match individual fans with the right players and quickly and efficiently generate the products that satisfy those needs.”
The NFLPA has already made strides in its goal of increasing the roster of players featured on licensed products by creating opportunities for players who are popular in local markets. A notable example is the licensing of local favorites like Eagles’ linebacker Connor Barwin and Steelers’ tight end Heath Miller for Bleacher Creature plushies targeting the players’ local markets.
Another variation of the strategy is to keep tabs on NFL players who are increasing in popularity. In January, the NFLPA compiled its first-ever Rising 50 list. Like its established Top 50 sellers list, the Rising 50 is based on sales and other data compiled by the NFLPA from its licensees. In addition to generating publicity, the Rising 50 provides valuable marketing intelligence to potential new vendors and accelerates the “gestation” period between a player’s success on the field and opportunities for licensing and endorsements.
The NFLPA has also compiled a database profiling all 1,800+ players and their backgrounds that can be used to match players with partners, such as by making players who have opened their own business available for speaking engagements for the local chamber of commerce. “We’ll provide the right players for the right opportunities. The only limit is our clients’ imagination,” says Smith.
Licensee | Product Category | Products | ||||
---|---|---|---|---|---|---|
500 Level | Apparel | T-shirts & fleece (men’s, women’s, youth) | ||||
Airborne Studios | Digital | App shelves, digital content, wallpapers | ||||
American Mills | Apparel | Beanies, caps | ||||
Aminco | Hardlines | Lapel pins, key rings, magnets, ID tags, fashion jewelry, earrings, bracelets, hair accessories | ||||
Associated Press | Hardlines | Customizable & personalizable photo products | ||||
Athlitacomics, LLC | Hardlines | Comics, art, t-shirts | ||||
Bare Tree Media | Digital | Mobile digital content | ||||
BDA | Hardlines | T-shirts, hats, mugs, glasses, pens, gloves, buttons | ||||
Beveridge Marketing LLC dba Eye Black | Hardlines | Eye black | ||||
Bleacher Creatures LLC | Hardlines | Plush, puppets, action figures, wind-up toys, wood trains | ||||
Boelter Brands | Hardlines | Drinkware, metal buckets | ||||
Bradford Exchange | Hardlines | Holiday décor, wall décor, home décor, lighting, trains, toys, figurines | ||||
Dallas Cowboys Merchandising | Apparel | Jerseys, headwear, fleece, t-shirts | ||||
DecoPac | Hardlines | Cake decorations | ||||
Electronic Arts | Digital | Console video games, mobile game apps | ||||
Elms Marketing | Apparel | Jersey customization services (Europe) | ||||
Exclusive Pro Sports | Apparel | Jersey customization services | ||||
Fan Health Network | Digital | Mobile apps (health & wellness) | ||||
Fanatics, Inc. | Apparel/Hardlines | Customized jerseys, t-shirts, fleece, headwear, cardboard standees, autographed memorabilia, framed images, photos, plaques, cachets, magnets, display cases | ||||
Fandeavor | Experiential | B2C experience packages with players | ||||
FanPrint | Apparel | T-shirts (men’s, women’s, youth) | ||||
Fans Only, LLC | Apparel | T-shirts & fleece (men’s, women’s, youth) | ||||
Fathead, LLC | Hardlines | Wall hangings | ||||
For Bare Feet | Apparel | Footwear, hosiery, leg warmers | ||||
Freaker USA | Apparel | Knit socks, beverage insulators | ||||
From The Bench | Digital | Mobile apps | ||||
Front Office Live | Apparel | Customizes t-shirts, jerseys, photos for fantasy teams | ||||
Funko | Hardlines | Bobbleheads, vinyl figurines, plush | ||||
G-III Apparel | Apparel | NFL x Collegiate co-branded t-shirts, fleece, tanks, fashion tops (women’s) | ||||
Global Business Intercoe | Hardlines | Vinyl figures, key chains, plush | ||||
Glu Mobile | Digital | Mobile game apps | ||||
Hallmark | Hardlines | Ornaments | ||||
Highland Mint | Hardlines | Collectible coins, medallions | ||||
Identity Games | Hardlines | Games (FindIt®) | ||||
Imangi Studios | Digital | Mobile game app content (including Temple Run 2) | ||||
Intel | Digital | Digital content | ||||
Just Be Friends | Digital | Social games | ||||
Kelly Toy Worldwide | Hardlines | Plush, pillows, backpacks, balls, beanies, caps, flags, banners, novelties | ||||
Kervan | Food/Beverage | Gummy candies | ||||
Licensed Products Co./Jarden Sports Licensing/Rawlings | Hardlines | Footballs (miniature, full sized, customized, signature) | ||||
LiveLids | Apparel | Headwear with LCD screens | ||||
Lids | Apparel | Custom embroidered headwear | ||||
Mask-arade | Hardlines | Card face masks, card desktops, life-size standees | ||||
MasterPieces Puzzle Company | Hardlines | Puzzles | ||||
MBI Inc. | Hardlines | Plates, steins, clocks, gold cards, figurines | ||||
NeonMob | Digital | Marketplace for artists to publish digital art & artwork | ||||
New Era | Apparel | Headwear (men’s, women’s, youth) | ||||
Nike | Apparel | Jerseys (on-field, authentic, replica), t-shirts (adult’s), fleece, fashion jerseys | ||||
Opendorse | Unconventional | Social media endorsement platform | ||||
Outerstuff | Apparel | Jerseys (youth), fashion jerseys, t-shirts, sleepwear, fleece, outerwear, headwear | ||||
OverDog | Digital | Mobile apps, web platforms & video services connecting players to fans via console video games | ||||
Oyo Sportstoys | Hardlines | Miniature figurines | ||||
Panini America, Inc. | Hardlines | Trading cards, card games, stickers, albums | ||||
Penguin Young Readers Group | Publishing | Books | ||||
Perfect Timing | Hardlines | Calendars, stationery, notebooks, book covers, note & memo pads | ||||
Photo File, Inc. | Hardlines | Photos (framed, matted, plaqued), desktop standees, ceramic tiles | ||||
Pixpose | Digital | Mobile apps | ||||
Pro Merch | Apparel | T-shirts & fleece (men’s, women’s, youth) | ||||
Ripon Athletic | Apparel | Jersey customization services | ||||
Run Games | Digital | Mobile game apps | ||||
Silver Crystal Sports | Apparel | Jersey customization services | ||||
Skinit | Hardlines | Vinyl skins for consumer electronics devices | ||||
Stahls’ Hotronix | Apparel | Jersey customization services | ||||
Team Beans | Hardlines | Plush, bags, ornaments, dog tags, bobble heads, wristbands, backpacks, wall hangings, magnets, nutcrackers, balls | ||||
Team Spirit Store | Hardlines | Posters, coloring books, calendars, greeting cards | ||||
Tervis Tumbler | Hardlines | Drinkwear | ||||
The Northwest Co. | Hardlines | Drinkwear, throws, pillows | ||||
The Topps Company, Inc. | Hardlines | Trading cards, card games | ||||
TMP International, Inc. | Hardlines | Action figures, accessories, play sets | ||||
TopLine Game Labs, LLC | Digital | Social gaming platform | ||||
Trends International | Hardlines | Posters | ||||
Uber | Unconventional | Automotive services designed to provide players safe transportation | ||||
United Performance International Marketing, Inc. | Hardlines | Fantasy football draft kits, draft boards, labels | ||||
VF Imagewear | Apparel | T-shirts (men’s & women’s) | ||||
Wear for Fun Inc. d/b/a Spirit Jersey | Apparel | Leggings (women’s), shorts, spirit jerseys | ||||
Wild Sports | Hardlines | Tailgating games & tables | ||||
WinCraft | Hardlines | Pennants, jewelry, signs, drinkware, snack helmets, towels, gifts & novelties | ||||
Zapexa | Digital | Emoji, screensavers, avatars, digital images, stickers | ||||
Zynga | Digital | Online social games |