The collegiate sports market has been experiencing upheaval over the past several years, with the advent and evolution of name, image, and likeness (NIL) opportunities; growth in athlete transfers; coaching turnover; conference realignment; revenue sharing with athletes; and more. These trends are accompanied by broader issues impacting colleges and universities, such as falling enrollments and political pressures.
With all of this as a backdrop, the collegiate licensing and merchandising landscape continues to evolve. Some recent developments:
- Expansion and acceleration through M&A. Last month, global alternative asset management firm TPG acquired Learfield, a college media and technology company whose business includes licensing management (through its Collegiate Licensing Company division) and NIL strategy. The investment will help Learfield, which is also involved in sponsorships, media solutions, ticketing technology, and AI-enabled data systems, accelerate growth and innovation across its platforms, according to the company. In addition, BSN Sports, a division of KKR-owned Varsity Brands and a specialist in team sports apparel, equipment, and gear, last month announced the purchase of Sports Endeavors and Lax.com. The acquisitions expand its foothold beyond collegiate, scholastic, club, and recreational merchandise into soccer and lacrosse, respectively. Varsity Brands also owns Varsity Spirit, the leading purveyor of cheerleading supplies.
- Appointment of new leadership. In September, Fanatics named Tommy Gray as SVP of its College Division, which oversees the company’s collegiate relationships in e-commerce, venue retail, and wholesale, as well as managing its relationships with Nike, Barnes & Noble, CLC, and OneTeam Partners. He was most recently at Altius Sports Partners, a leading NIL agency. Separately, BSN Sports promoted Todd Northrop to SVP of its Collegiate Select Division, which provides uniforms and gear to more than 1,100 colleges and universities and almost 300,000 student-athletes, in August.
- Increased supplier turnover. While it is not unusual to see some changes in official on-field and sidelines partners as contracts come up for renewal, more institutions than in the past are switching suppliers, in part because of their desire to maximize partner support for their NIL programs. Some of the shifts last fall and this spring have included the University of Tennessee transitioning from Adidas to Nike, St. John’s leaving Nike for Adidas, and the University of South Carolina, Auburn University, Colorado Mesa, and Spalding University all going from Under Armour to Nike. Several of the moves to Nike, especially among mid-sized schools, have come through BSN Sports, which distributes athletic apparel and merchandise to campuses and has a relationship with Nike. There has also been some turnover lately on the distribution side, however, with the University of Indianapolis and University of Denver moving from BSN to competitor Game One; the former institution retained Nike as its official supplier and the latter changed from New Balance to Under Armour. Of course, some universities opt to stay the course when their contracts run out. The University of San Diego recently renewed with Nike and BSN, the University of Wisconsin with Under Armour, and the University of Nevada with Adidas, for example.
- Rise of new competition. The market for collegiate merchandise has become increasingly consolidated over the years, with the number of suppliers, licensing agencies, and distribution partners all shrinking as a few key players gain strength. But there are some new participants currently trying to make inroads. Digital Brands Group, for instance, is a start-up specializing in NIL college apparel. Last year it forged its first deals in the space, pairing with two NIL programs, Yea Alabama (to sell apparel tied to the university’s female athletes through the Alabama bookstore and Yea’s online shop) and The Grove Collective (for NIL apparel tied to University of Mississippi student-athletes, including acting as the students’ NIL marketing agent). It also partnered with Traffic Holdco, the NIL marketing agent and master licensee for several universities. Digital Brands competes with the likes of Fanatics, which last month announced a 12-year extension on its deal with University of Kentucky Athletics for its UK Team Shop, with a focus on creating NIL opportunities for student-athletes.
Outside of these trends in the world of sportswear and related categories, a growing number of companies in the fashion and beauty sectors are entering the collegiate space. This phenomenon goes back several years, but NIL opportunities, among other factors, continue to drive additional growth.
Comments are closed.