The University of Texas can add another national title: first in merchandising.

Brandora Redaktion - August 2006

 
Bolstered by a national football championship, UT led the nation in licensing revenue and set a record with $8.2 million in royalties from 2005-06, according to the company that handles merchandise licensing for 82 Division I-A schools. The record sales mark the first time UT has been first in royalties, knocking North Carolina from No. 1 for the first time in five years.

"It's kind of that perfect storm, and we were able to capitalize on it," said Craig Westemeier, UT director of trademark licensing. "Everything had to go just right, and it did."

Michigan finished second to Texas, according to Collegiate Licensing Co. Notre Dame, Georgia and North Carolina rounded out the top five.

Schools that use other licensing companies or are independent include Ohio State, Southern California and Texas A&M. Revenues from those schools were not included in the rankings.

Besides the Longhorns' first football title since 1969, a College World Series in 2003 also helped boost royalties by 103 percent. The money goes to entire university and not just the athletic department because the school owns the trademarks.

The original Bevo -- the mascot of the UT Longhorns -- cost alumnus and Texas lawman Stephen Pinckney $124 to bring to Austin in 1916 after a cattle-rustling sting operation in West Texas.

This year, Bevo might be worth $8 million in licensing revenue, up from $4 million last year. The Longhorn logo appears on just about everything the university sells or licenses, including the thousands of T-shirts, caps and other items being sold following UT's national football championship.

"It's just such a clear logo," says Westemeier. "It says the University of Texas without any words. It's just a great brand."

UT allows hundreds of companies, from Nike Inc. to Austin Screen Printing Inc., to use its trademarks. Those licensees ordinarily pay 8 percent in royalties on the wholesale price of every UT-emblazoned item they sell. For national championship items, UT has about 80 licensees, who pay royalties of 12 percent to UT and 3 percent to the Rose Bowl.

When UT championship gear is selling as fast as it is now, that money adds up faster than quarterback Vince Young raced across the goal line to score the winning Rose Bowl touchdown.