Fanatics and OneTeam Collaborate to Develop a Substantial Collegiate Group Licensing Venture
January 30, 2023
When college athletes gained name, image, and likeness (NIL) rights in July 2021, it was anticipated that jersey sales could provide a substantial income source. However, the absence of a structured jersey program, like those in professional sports, created challenges. College athletes lacked the means to manage their commercial rights, leading to third-party involvement. This was complicated by the sheer number of athletes and the absence of a centralized mechanism.
In 2022, OneTeam Partners and Fanatics launched a college jersey program, signing over 8,000 athletes from various sports and schools. Fanatics expanded offerings to include football jerseys with actual player names and numbers and extended to spring sports like baseball, softball, and lacrosse, promoting inclusivity.
The program will encompass tens of thousands of athletes, with products available online. Athletes use the Compass NIL app to join, with OneTeam Partners taking a 30% share. Schools negotiate their royalty rates, and athletes receive a 4% royalty on sales.
Despite serving as a recruitment tool and school service, generating revenue, especially for basketball jerseys, remains challenging due to the lack of star-caliber athletes like in the professional realm. College jerseys are produced on-demand due to unpredictable demand.
While the ultimate success of college jersey sales is uncertain, progress through collaborative efforts suggests emerging opportunities benefiting athletes and schools. The complexity of establishing large group licensing programs in college sports is being addressed.