The following is designed to provide athletic directors (ADs) with an efficient and effective way to increase and ultimately maximize the revenue and improve the value of their institution’s next apparel rights agreement. This primer addresses three topics that are of central importance to accomplishing this goal.
1. Know Your Own Value
One of the central tools that the attached reports provide is apparel rights contract information, divided by BCS conference member institutions and by non–automatic-qualifying institutions. The report was designed to provide athletic directors with the ability to examine apparel rights agreements relative other institutions in your conference and geographic region. Thus, to maximize the value in your next apparel rights contract, it is essential to know the value of your current contract relative the other institutions in your conference and region.
2. It’s All in the Details
Apparel rights contracts contain numerous components, but there is a tendency to focus on the major components of cash and product compensation. Cash and product compensation are often the most significant sources of value, but there is extensive value to be gained from the other components as well. This specifically includes performance bonuses and royalty provisions. Although these provisions cannot generally match the value of cash or product compensation, these additional components can generate upwards of tens of thousands of dollars, or more, for your institutions.
3. Recognize What You Have to Sell
To understand what you have to sell, it is helpful to view these apparel rights contracts through the lens of the apparel supplier. Suppliers include provisions such as anti-spatting clauses, penalties for NCAA rules violations, and promotional appearances to ensure that they are going to maximize their value. Similarly, these provisions are great provisions to leverage to generate additional cash and product compensation, higher royalty rates, and more extensive performance bonuses.
Learn how Win Ad can help Maximize Revenue for Apparel Rights Agreements
Win AD has the tools to save athletic departments of all sizes and budgets time and money! To learn more about our flexible pricing options & how we can help your athletic department, contact Kevin Barefoot
