Brands at Play: More Than Just a Game

Officially licensed consumer products – from teams to players, leagues and equipment – have been integral to fan culture since the early 1900s, evolving into a multi-billion-dollar industry that captivates enthusiasts worldwide.

Stemming from collectible sports memorabilia, a long-cherished form of consumer engagement for brands and brand embracement for fans, modern brand licensing in sports has evolved into a movement, carving out a formidable category in popular culture. It has exceeded the once-tribal view of sporting fandom and evolved into some of the most exciting and creative collaborative collections on the market.

In professional football (American football for our U.K. brethren), teams and games generate massive revenue through fandom. During the 2024 Super Bowl season, License Global’s Jane Neal spotlighted statistics driving growth, with the NRF reporting 13% of consumers watching the Super Bowl planned to purchase team apparel, and Circana reporting sales of NFL-licensed apparel for the teams headed to the Super Bowl increased more than 200% in the areas the Super Bowl-bound teams represent.

An industry long considered an early adopter of the brand licensing business model, automotive and racing effectively leverages licensing to evolve from traditional consumer product streams. One company that is all too aware of the power an automotive brand holds over its fans is Shelby.

Related:The Rise of Women’s Sports and Brand Licensing

“Automotive brands are unique as they tap into a consumer’s affinity based on functional application as well as lifestyle,” says Andrew Lieb, president, JRL Group, brand licensing representatives of Shelby. “Automotive brands build trust over time when delivering quality, technology and innovation in a trusted, safe vehicle, allowing these brands to have ‘permission to play’ in expanding product categories ... For many muscle cars from the ’60s and ’70s, there continues to be a trending consumer demand to tap into these logos, images and vintage artwork. Our licensees have tapped into an extensive library of images, vintage and contemporary logos and artwork to create and deliver unique products to consumers who have an affinity for automotive-themed products. Luxury automotive brands with superior reputations, such as Ferrari, Lamborghini and Shelby, become aspirational, which allows consumers who may not be in a position to afford one of these vehicles to show their passion through licensed products.”

To celebrate our latest cover collaboration with OneTeam written by License Global’s own sporting “almanac,” Ian Hart, women’s sports are also deservedly gaining traction worldwide, with the WNBA leading the charge. The league’s partnership with Fanatics for exclusive merchandise has expanded its reach and engaged a growing fan base by providing a tangible showcase of fandom. WNBA All-Star 2023 merchandise sales saw 658% growth compared to the 2021 Las Vegas WBNA All-Star (WNBA Official), and WBNA jersey sales reached 258% in the heat of the 2024 season (FanArch).

Related:Super Bowl Brings in Big Bucks for Food and Gear

Sports isn’t just a fan-driven spectacle; through brand licensing, it can become aspirational. EA Sports’ FIFA video game series allows fans to experience the thrill of the sport virtually, bringing countless football (or soccer, for our North American friends) teams, stadiums, leagues and events to the player’s demand and driving engagement beyond the stadium. When considering this success across 2K’s NBA series or racing simulators such as Gran Turismo and Forza, modern sports and video games become an example of the versatility and collaborative nature of “play.”

Taking a short step from gaming, location-based experiences, esports and virtual reality experiences are also opening new avenues for sports licensing, capturing the imagination of younger audiences. The rise of esports leagues and VR sports simulators, such as the F1 Arcades in London and Las Vegas, offers fans immersive experiences, further cementing the symbiotic nature of gaming and sports. 

Related:10 Minutes With ... JRL Group on Automotive Trends

The global leaders for sports licensing may be soccer, football, basketball and racing, but this short run-down doesn’t afford the space to cover other mainline sports such as baseball, golf, ice hockey, rugby, collegiate football, cricket, tennis, the entire universe of individual players spanning countless teams or the global economic driver, The Olympics. However, with the international sports merchandise and licensed consumer product market projected to grow from $27 billion in 2023 to $45 billion by 2030, according to Zion Market Research, not to mention the billions in retail sales highlighted in the Top Global Licensors 2024 Report, innovative collaborations and digital integrations are set to drive further fan engagement as sports brands continue to innovate through new, exciting and authentic partnerships.

This story was taken from the August 2024 issue of License Global. Read the full issue here ...