Thursday, March 28, 2024

Selling Sparty

Licensed products offer U T-shirts, coats for profit

October 30, 2002
Duane and Judy Vernon show their Spartan spirit in the basement of their Lansing home on Monday. Since 1979, the couple have decorated and developed the basement as a tribute to MSU, Duane's alma mater, as a way to express their gratitude for what the university has given them. —

MSU fans love to show off their Spartan pride, and on football Saturdays on campus, it’s easy to spot thousands of MSU faithful showing off their love for their team with commercial products.

Fans can stay dry under an MSU E-Z UP Instant Shelter, relax on an inflatable MSU chair or folding tailgate chair, wear an MSU cap and check their MSU watch to make sure they get into the stadium before kickoff - all while cooking some bratwursts on the grill, topped by an MSU grill cover.

Terry Livermore, the manager of MSU’s University Licensing Programs, said there are 500 companies under license from MSU and they experience about a 20 percent turnover per year.

Livermore said the university’s royalty rate is 8 percent of the wholesale price and revenues are down 6 percent this year.

The money the university makes from royalties are split between the Academic Scholarship Fund, the Ralph Young Fund and Auxiliary Services, Livermore said.

“Being a public institution, we’re sensitive to a company’s request,” he said. “Usually, we’ll grant a license, but reserve judgment on offering renewal terms based upon how well they do during the course of their contract with us.”

Livermore is also a board member of the International Collegiate Licensing Association, a group that promotes the administration of intellectual properties throughout the collegiate industry.

MSU earned about $1.9 million during the 2001-02 fiscal year, and about $2.2 million during the 2000-01 fiscal year, he said.

Livermore said the success of sports teams, such as the 2000 men’s basketball national championship, reflects in the numbers.

“The performance of our sports teams has an impact on our program,” he said.

Lansing resident Duane Vernon frequents stores in East Lansing, including the MSU Bookstore in the International Center and the Student Book Store, 417 E. Grand River Ave.

“I’m always looking for new things and once in a while you find something really neat,” he said. “There’s a ton of stuff out there, I see new stuff all of the time.”

Although Vernon said he owns a lot of noncommercial MSU products, he owns commercial items such as Final Four mugs, Rose Bowl mugs, candy and popcorn holders, clocks, MSU Snoopy dogs, birdhouses and model holders that have the MSU license on them.

Livermore said that most products have the potential to display a trademark and can usually be sold in a department store.

“Some of the more unique items of late are a contractor who installs tops in recreational rooms of various residences,” he said. “We’ve also seen a resurgence in rubber ducks, one in the image of Sparty, and retro replica jerseys.”

Brad Ballein, the manager of Student Book Store, said he has seen some interesting products come through the shop.

“I’d say the pet stuff, like the dog bones and things like toilet paper,” he said. “They’re both good sellers, but what I used to think was weird 10 years ago is not so strange anymore.

“Who would have thought we’d sell $400 leather chairs today - people are spending their income on things like that, whereas 10 years ago, the most expensive thing someone would buy was a class ring.”

Ballein said he has seen some inappropriate items with the MSU logo on them, and refuses to carry items that would offend anyone.

“We’ve had some pretty funny things over the years and some pretty tacky stuff,” he said.

“In our case, we’ve got customers coming in who want to spend $200 on a leather coat or $50 on a paperweight, so they don’t want to see items that are offensive.”

When deciding which items to carry, Ballein said the bookstore looks at three things. First, if the product is going to sell, if it’s something the customer will want and what the retail price will be.

“We have people shopping here from ages 90 to five, and with that big of a spectrum you have to be careful about what you’re carrying to make sure it isn’t derogatory and offensive,” he said.

Although Livermore said he is approached by roughly three to six companies per month, he occasionally sees a good amount of counterfeit products being distributed without his approval, most of which occur at sporting events like football or basketball games.

“The university supports our counterfeit surveillance through (MSU’s) police department,” he said.

“Unauthorized merchandise can be confiscated, along with any money derived from their sale, and a citation can be issued.”

But Ballein said he has never had anyone try to pull a fast one on him with a counterfeit product.

“Typically we deal with name brand people,” he said.

“The companies we work with send us updates with who is eligible on putting university marks on products and we have a good relationship with them.”

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