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December 11, 2005

The UT brand

UT brand.jpgInasmuch as big-time college football is to the National Football League as triple A minor league baseball is to Major League Baseball, a team's branding rights can become an important asset. Along those lines, this interesting Austin American-Statesman article reports on the surge in royalty income that the University of Texas is enjoying from its athletic teams' recent successes:

The Longhorns' Rose Bowl victory over Michigan in January and the baseball team's national title in June helped boost University of Texas merchandise royalties 29 percent to $4 million in the last fiscal year, . . . So far this year, [UT] has collected more royalties than any of the 200-plus schools affiliated with the Collegiate Licensing Co., which coordinates licensing for most major universities.

To license its trademarked logos, UT charges 8 percent of a product's wholesale price. If a $20 Longhorns T-shirt has a wholesale price of $10, UT would get receive 80 cents. It might not sound like much, but consider that retail sales of collegiate merchandise topped $3 billion last year, according to Collegiate Licensing.

Add a football championship to that, and last year's $4 million could end up looking like a paltry sum.

The article goes on to note that UT's annual royalties from merchandise sales had fallen to a mere $600,000 as of the end of the John Mackovic era, which suggests that UT's considerable investment in Mack Brown has been pretty darn savvy, after all.

Posted by Tom at December 11, 2005 6:53 AM |


A friend of mine suggested that Texas can legitimately claim to be in the hunt for national championships in football, basketball (let's ignore that whipping by Duke yesterday), and baseball.

There's no marketing campaign like winning!

Posted by: kevin whited at December 11, 2005 11:56 AM

Sounds like these stats make the Longhorns America's Team

Posted by: Kevin Tucker at December 11, 2005 9:18 PM

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