What's the one solution to problems in the sports world? You guessed it, winning. And since Memphis reached the national championship game last year, they have been cashing in. This according to CNBC's Darren Rovell:"The rise in prominence of the University of Memphis men's basketball team has meant more money in the bank for the school.
After playing in the championship game last year, royalties for 2007-08 school year were up 82 percent, giving Memphis the third largest percentage growth among schools whose marks have been licensed by the Collegiate Licensing Company for at least two years.
Through the first eight months of the fiscal year, Memphis has seen its royalties jump another 47 percent, according to CLC, which is owned by IMG.
The school was ranked No. 49 in reported royalties among CLC schools this past year. But that number is up from a No. 62 ranking in 2006-07 and No. 64 in 2005-06.Thanks to their popularity, CLC says Memphis has 64 new licensees this year. New retailers like Dick's Sporting Goods, Target and Costco have just to started carry Memphis products."
A lot of these teams have been worried about the money flowing into their pockets, like the rest of the businesses out there. But sports have an edge over regular businesses.
If a team wins on a consistent basis, people will show up to their venue. They will buy lots of merchandise. They will watch the team on T.V.
I look at the Sacramento Kings for example. When the Kings were competitive, fans filled Arco Arena and bought merchandise. Now that the team is the worst in the league, people refused to pay for high priced tickets and buy expensive merchandise.
All I am saying, put a winning team on the floor, especially in basketball. People will show up. Consumers won't mind paying a little extra for tickets, if the team is playing at a high level. You have an winning product, you have butts in seats. Yes! It's that simple.
