NFL Under the Microscope

Rarely has the sports licensing industry turned its eyes on a single league. But such will be the case this fall as the results of the deal between the National Football League and Reebok become apparent.

Not surprisingly, the NFL is confident and excited.

"Since we announced our partnership with Reebok last December, we've had meetings with them as well as retailers to discuss and explain our new business model," says Mark Holtzman, the NFL's senior VP of consumer products. "Retailer reaction has been positive. There were questions early, but retailers understand that a better business model was needed. They know better than anyone else that the licensed product category has been lacking in a number of areas. In addition to knowing that Reebok is investing in our business for the long haul, retailers are aware that our goods will include greater fashion sense and be more strategically distributed. We're in an education mode with our retailers and it's been exciting."

Retailers seem pleased with the early results. "Jerseys are definitely leading the way so far," says Shane Stewart, licensed apparel buyer for Hibbett Sporting Goods (Birmingham, AL). "Headwear and tees are doing very well, too."

"Reebok has been great to work with and has met the delivery schedule so far," says Bob Hyde, president of Fanzz (Salt Lake City, UT). "The NFL has always been our strongest product line."

Holtzman also notes that a low crown lifestyle khaki cap designed by Reebok has been popular among retailers so far, spiking an already strong headwear category.

Reebok is not the only story out there for the NFL. There's also excitement in categories such as youth wear and electronic games. The league hopes to capitalize on an ESPN Kids Sports Poll that tabs the NFL as most popular among youths (on and off the tube).

"That market is experiencing an upswing," says Holtzman. "The most significant action is the consolidation of key youth apparel players to emphasize the NFL brand. Our business plan will allow us to connect more deeply with our young fans."

Key licenses in youth apparel include Haddad Apparel Group, VF Imagewear and Outerstuff. Youth are also a key market for electronic games. All eight NFL licensees have new releases for this fall.

"Each title has its key points of difference for exciting game play," says Holtzman. "In addition, NFL-licensed games will be featured on new platforms?Microsoft's Xbox, Nintendo's Gamecube and Nintendo's Game Boy Advance. There's more realism, improved gameplay and enhanced graphics on these systems."

The NFL can also look forward to the addition of the Houston Texans and the positive effects of realignment next season. "Television ratings, the popularity of NFL.com, NFL licensed products ? every branch on the NFL tree will grow stronger thanks to realignment," concludes Holtzman. "It's an exciting future."