Rick Valderrama Licensing Your Product to Major League Sports Franchise, NFL, NBA, MLB, NHL, MLS, NCAA Tips to Get it Done!

Anna Ankari Startup Your Life
Anna Akbari, Ph. D. Author of Startup Your Life
February 1, 2017
David Frankel
David Frankel is a Man of Style and his Perky Collar is taking the Clothing Accessory Industry by Storm!
February 7, 2017

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Podcast Notes

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0:01
hi everybody and welcome to another
0:04
edition of inventors launch pad roadmap
0:07
to success i am your host carmine
0:09
danisco and today i wanted to cover a
0:12
subject that kind of occurs around a lot
0:15
of the major sporting events here at the
0:18
launch pad and probably around it around
0:20
the country at other product development
0:21
houses we filled a lot of questions
0:24
about licensing products to major league
0:28
teams to be specific the NFL or some of
0:32
the actual specific teams within the NFL
0:35
and again major sports things so I
0:38
wanted to bring my partner Rick
0:40
valderrama on who handles a lot of this
0:43
type of questions a lot of the business
0:45
sides of it he has actually licensed
0:47
products and he's been the license or of
0:50
products so he can answer some questions
0:52
and really try to sign a spotlight on
0:54
the high level of what's happening I
0:56
don't think he's gonna be able to go too
0:57
deep with you out of time we have but
0:59
let's bring them on and see what he has
1:01
to say hey Ricky over there therefore
1:04
how you drunk are mark richt I'm doing
1:06
good man thanks for coming on the show I
1:08
know that you're going to be a frequent
1:09
guest on our show and I appreciate you
1:13
jumping on real quick I had some
1:15
questions that came over the line about
1:17
licensing and I want to bring on and do
1:20
that just to let the the listeners know
1:23
that we are recording just before the
1:25
Super Bowl and not to date the podcast
1:28
but that's one just came up Rick if you
1:30
can just give a quick intro and
1:33
basically just again a quick little bit
1:36
of what you do let him in as launch pad
1:39
so my name is Rick's all drama I work
1:43
getting rid of launch pad and I am ahead
1:45
applies development as carmine spoke I
1:49
do handle most of engagement with new
1:53
clients as they come in and we do get
1:55
that question a lot about how do they
1:59
how to clients have access to placing a
2:03
sports team logo on their product they
2:06
could have a good product that they feel
2:09
that you know with the right license
2:12
they can be very
2:13
successful and really I can get them to
2:16
the next level you know as most people
2:20
know the NFL is the the big dog the AFL
2:26
if the general rule of thumb is if you
2:28
get approved as a NFL vendor you will be
2:31
approved for the NBA NHL NASCAR and NC
2:36
double-a pretty easily they are of the
2:39
the strictest least they do have the
2:41
strongest requirements and the most
2:44
chomping oh ok and I believe it NFL is
2:47
probably huge I mean if you get a
2:49
product onto the NFL or major team it's
2:52
probably build will be grow your company
2:55
at the National they have a product and
2:58
I want it and I want to get it it's a
3:01
perfect product for football or for a
3:03
college team or major league team what
3:06
do i do I just go to the team and I say
3:09
hey I got this product and then what do
3:10
they do they allow a day license it from
3:12
me or they allow me to show them how
3:14
does it work really if I have a product
3:15
so the NFL I'm going to stick with
3:18
talking about the NFL's beginning they
3:21
are the strictest league they have very
3:24
stringent requirements they they do not
3:27
use middlemen they require you to be a
3:30
manufacturer they require you to have
3:33
manufactures your product for three
3:34
years before even applying and in most
3:38
cases but sorry I cut you off three
3:41
years I have to be manufacturing a
3:43
product first we have to be the face
3:44
that's right wow that's right that's
3:47
right okay okay that would get the prize
3:50
so yes I guess its manufacture for three
3:54
years you have to show consistent
3:56
products they are very stringent on
3:58
every color code when when you are
4:02
putting the Dolphins logo on a product
4:05
the orange better be the right orange
4:06
and the white better be the right white
4:09
with no variation of it or you will lose
4:10
your contact a typically the easiest way
4:14
the easiest way to enter a NFL license
4:18
agreement is to go to a manufacturer
4:21
that's already owns a license someone
4:23
who's already selling in your category
4:25
if they're so
4:26
in the category they could easily add
4:29
your product to their suite of products
4:31
and then have the channel to put into
4:34
the stores to get your product of the
4:36
most you know and the NFL is doing a
4:38
good job of actually consolidating a lot
4:41
of their manufacture fish or vendors for
4:45
different categories so typically
4:47
there's only going to be five maybe ten
4:49
vendors even licensing you know certain
4:53
products so it's apparel if it's house
4:56
goods if its luggage whatever it may be
4:57
you're only going to find five to ten
5:00
companies in the world that are actually
5:04
able to manufacture the product so we
5:06
recommend the clients to find the
5:08
company that's already manufacturing a
5:10
product engage them and then get the
5:13
license deal although it's still
5:15
difficult it's much easier than going
5:17
directly to the NFL the requirements are
5:19
just too too great for a small company
5:22
should 50 inventors okay so so again
5:25
it's I didn't realize that it was this
5:28
this intricate so what you're saying is
5:30
if if I had a product and I did end up
5:32
getting a licensing agreement with the
5:35
nsl I wouldn't be able to manufacture it
5:39
myself is what it sounds like because it
5:41
has to be such a stringent rules and
5:44
regulations and then also it sounded
5:47
like what you said is there's different
5:48
categories or the different
5:49
manufacturers for a specific license so
5:52
if i had a product for a hat it would be
5:55
different license if I had a product for
5:58
luggage say yeah in most cases yes I
6:01
mean if you are the manufacturer all
6:02
these products and you have been
6:04
existence for three to five years then
6:06
you have the financial capacity to to
6:09
meet the stringent requirements of the
6:11
NFL then you can go ahead and do that
6:13
but if you do have three or four
6:15
different categories of products like
6:17
you said a hat or a jacket you would
6:19
typically going to have to find two
6:21
different companies that are already
6:22
showing those types of products through
6:24
the NFL license and license to them and
6:27
then once you like to them they will
6:29
send it out to their channels and sell
6:30
it out now the NFL is unique here the
6:33
n-c-double-a is one specifically that
6:37
you can go and go directly to the
6:39
University if you
6:40
are interested in doing the you know and
6:45
Alabama or university shop forward or
6:48
anything like that you can go to the
6:49
University and sauna license agreement
6:51
directly with them giving you the
6:52
permission to put their brand on your on
6:55
your product and that's for one product
6:57
and that's for one University that does
7:01
not give you the right to give use it
7:02
for the entire incident of away but it
7:04
does give you for that one University
7:06
that's a possibility now you know how
7:08
much in fact that's going to be done it
7:09
really depends on you but that's the
7:12
unique thing about the n-c-double-a
7:14
however if you do focus on the NFL once
7:17
you do get the NFL licensed through a
7:18
another manufacturer directly with the
7:21
NFL that does open the gateway to every
7:23
other sports venue Wow so the NFL is
7:27
huge but I like the part where you
7:28
talked about the NC double-a so if I
7:30
live next to say a few colleges or if I
7:32
had friends that were going to college
7:34
it might make it easier to get it into
7:36
one or two colleges just to test the
7:38
market test itself unless I am you know
7:41
I went to a school and I just want to
7:43
sell for that certain college so it
7:44
sounds like the NC model a is a little
7:46
bit easier but it sounds like a lot of
7:48
work to go to each college if I had to
7:51
yeah it does it does but again you know
7:55
products are some products are so
7:58
significant that it could be for college
8:01
you know population I know that we here
8:03
at the launchpad have a few products
8:04
that we're looking at colleges and NC
8:06
double-a in that sense and I know that
8:08
that you are working on several licenses
8:11
and you have the ends at the NFL and
8:13
some of those different different you
8:16
know projects and soccer and I'm
8:18
immediately baseball in that sense
8:19
what's kind of timeline they say all of
8:22
this take care and you know we had magic
8:25
wand and we've got through all of these
8:26
things and even after you know again
8:29
what kind of time want to not only get
8:31
that like an agreement signed but then
8:33
to get that product going is is there a
8:35
specific that you that you can think of
8:37
this for allowed yeah now I can go fix
8:39
much 18 months no problem they can go
8:42
with this lot of variables and
8:44
negotiation directly for license
8:48
agreements one part and then getting
8:50
your product us you know perfect to the
8:53
end
8:54
fell requirement you know there's all
8:56
these variation is all a lot of back and
8:57
forth if you get approved by the NBA NFL
9:01
whichever whichever league is doing that
9:04
your product once it's printed and it
9:06
looks good it has to get approved not
9:08
only by the NFL but by the team so
9:10
there's some specifics there that make
9:13
it a little challenging now the one good
9:15
thing that I do want to make sure I
9:17
state before we go on this call is the
9:22
the beautiful thing about the license
9:25
agreement specifically for inventors is
9:28
that if you have a product that's unique
9:29
and that product is then license to the
9:32
NFL they only hold the NFL license in
9:36
the sports team license you could still
9:38
sell it without the logo on your own and
9:41
if you don't pay them anything you don't
9:43
pay them a royalty sure you get the
9:44
benefit of having a name recognition via
9:48
your the team logo out there but she'll
9:50
it as a blank or show it with another
9:52
brand on it when you go out to the
9:56
retailer so if you're it was currently
9:59
being sold at walmart at target with the
10:01
NFL logos you could sell your own
10:03
product out there with your own logos
10:06
and it doesn't affect that license room
10:08
at all wow that's a that's actually a
10:11
pretty good piece of information because
10:12
most licensing contracts even ones that
10:14
we work on records I mean it's it pretty
10:16
much covers all sales so right you're
10:20
working on that NFL where she would be
10:22
huge if you get an NFL you know like me
10:24
agreement it's going to bring so many
10:26
eyeballs on to your products and being
10:28
able to sell it out into retail I'm not
10:30
kinda that's kind of like double dipping
10:32
which is a great idea well no I mean you
10:38
know again the NFL as you said any kind
10:40
of mingling sports team you're going to
10:41
put thousands of people are going to
10:42
maybe buy your products and then people
10:44
are going to see it and being able to
10:46
licensure or sell your product to retail
10:48
is really important now if I had a
10:51
product and I license it to the NFL or
10:54
to ask Rita sports team am i able to
10:56
still sell it with logos on it and say
11:00
hey I tried to get it on HSN or try to
11:02
get in on a TV shopping channel am i
11:04
able to sell it on my own with those
11:06
logos
11:07
that's going to be dependent on your
11:08
license agreement typically you can but
11:11
you would just be a vendor of your own
11:12
product you would have to buy them from
11:14
the company that owns your license okay
11:18
all right that makes sense all right
11:19
cool well it's a man I know that that
11:21
yours you're low on time there is there
11:23
a couple quick tips that's if somebody
11:26
was looking to get a product license
11:27
they had an idea or even if they haven't
11:29
even made their product yet they have an
11:31
idea or they made their prototyping or
11:32
thinking about it where they have a
11:35
product and they think it's perfect for
11:36
a major sports team or ngwa just letting
11:39
you a couple quick tips on what they
11:40
should do for their next step as in any
11:43
product they should test the market I
11:45
mean it no matter whose life in your
11:47
product whether it's a manufacturer
11:50
outside of the the NFL or sports or as a
11:52
sports a company that's its licensing
11:55
your product they're going to want to
11:58
show fail they want to see some numbers
12:01
they want it before they invest time and
12:02
energy on a product they want to be
12:05
assured that it's going to make some
12:07
money so what I would tell anybody is
12:10
that you try to sell it in your own you
12:13
get some performance reports done you
12:15
get some analytics you you get a break
12:18
down as to what they could they could
12:21
see in the future as far as how much
12:24
cost per unit cost how much you could
12:26
sell it for work and and what kind of
12:28
momentum you could have if they were to
12:30
put some logos on it if you have that
12:32
information it's going to make that
12:33
conversation but go much easier ya know
12:36
that makes sense i mean basically for
12:37
everything for retail and they mean so
12:39
that's kind of a business side of things
12:41
so and i know that you helped any of
12:43
those benefits or people with products
12:45
with that all right Rick would so listen
12:48
thank you very much for being on the
12:49
show I do want to tell anyone that's
12:50
listening if you have a question for
12:52
Rick you can get him on the inventors
12:55
Launchpad website that's inventors
12:58
launch pad com he also maintained the
13:00
largest inventor group on LinkedIn
13:04
inventors launch pad it is called and to
13:07
go ahead and join that group you can ask
13:08
some questions on their we're also on
13:10
facebook but go ahead and reach out with
13:12
any questions you have and i guarantee
13:14
that we will get back to you and thanks
13:17
for listening and then we'll talk to you
13:18
soon
13:19
all right bye-bye

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