This time last year, as the undefeated Kentucky men’s basketball team stormed into the Final Four, the school was getting ready for the merchandising windfall that comes from a national title. Logos were prepared, T-shirts designed, and a deal was made to sell chunks of the championship court to fans. Coach John Calipari was going to sign some pieces, and a truck was ready to cart them away.
Then Wisconsin beat Kentucky in the semifinals, a very expensive loss for all involved. More than 500 products and designs had been approved, an effort that commanded some 600 hours of work by Fermata Partners, the Atlanta-based company that handles licensing for the Wildcats. A Kentucky championship would have produced at least $30 million in retail sales, estimated the company’s managing director Derek Eiler, about $2.5 million of which would have gone directly to the university.
Ahead of this weekend’s Final Four, North Carolina, Syracuse, Villanova and Oklahoma are going through the same process. Because the NCAA men’s basketball tournament goes from the semifinals to a champion in just 48 hours, schools, licensees and retailers have no choice but to prepare entire product lines, orders, shipping plans and marketing campaigns in advance. Four different sets of championship plans are being prepared -- only one will ever see the light of day.
These plans are in place to capitalize on fan interest, which peaks in the moments after big games. The industry has primed itself to pounce. "You get a laser-focused set of fans, and as quickly as they come, they go away very fast," said Raphael Peck, president of apparel for Fanatics, the country’s largest online retailer of licensed college merchandise.
Companies like Fermata and IMG’s Collegiate Licensing Co., which is also based in Atlanta, broker this process for the schools they work with. CLC does some degree of planning for each of its tournament teams, usually around 50 schools. This year, the company represents all of the men’s Final Four teams, and managing director Cory Moss said Friday that 98 percent of the preparations for the Final Four teams are already complete.
CLC works with firms including Fanatics and Knights Apparel, a unit of Hanesbrands Inc. which supplies product to retailers like Wal-Mart Stores Inc. and Target Corp. This week the Spartanburg, South Carolina-based company has set up operations in the hometowns of all four semifinalists -- moving people, artwork and blank products into printing shops.
"After Saturday we’re down to two, and the two that are out, all those resources, you pack up the artwork, pack up the blanks, ship them back to the warehouse and start shutting down shop," Knights Chief Executive Officer Joe Bozich said. He declined to say how much that process costs.
Fanatics has prepared six to eight creative concepts per school for more than 100 products devoted to the winner. If it’s Oklahoma, for example, fans will get "Sooner Magic," a term resurrected from a 1976 football game, plus products that celebrate the team’s three-point shooting prowess. For 10th-seeded Syracuse, championship apparel will play up their Cinderella story.