Key Steps and Objectives in Sports Licensing Process

Running head: SPORT LICENCE
SPORT LICENCE
Name of the Student
Name of the University
Author Note

1SPORT LICENCE
Question 1
The question raised in the given scenario is the involved key steps of the sports licensing
process in XYZ Licensing Company situated in the United States, a company that is new in
licensing. Sport licensing is considered as the sport business executives’ business tool while
seeking the access to someone else’s owned intellectual property or allowing the permission of
using the IP of their own. There are some key steps which are involved in the sports licensing
process which the aforementioned company needs to take during the process of the sport
licensing. The first step is the establishment of strategic fit. The executive of sport licensing
needs to assess a strategic rationale and a complete strategic licensing fit within its wider
business strategy. The second key element is determining the products which are to be licensed.
The third key element is the identification and targeting the categories on the basis of strategy.
The fourth element is the identification and performance of the due diligence on the potential
partners. The fifth element of sport licensing process is the development and negotiation of the
key points of business deals. The sixth element of sports licensing process is the negotiation of
the final contract. The seven and final element is starting the management and implementation of
the license business/program.
Question 2
The raised question in this scenario is the main objectives and issues of the licensor
which they must address while they prepare to enter licensing relationship. There are various
objectives and issues of a licensor while entering into a relationship of licensing, which are:

2SPORT LICENCE
Revenue
Revenue is a vital source which is provided by licensing to both the licensor and the
licensee. A royalty is being received by the licensor for each and every licensed products sold by
the licensee. The National Collegiate Athletic Association (NCAA) can be considered as an
example. The licensing program is being used by them for generating revenue in order to
enhance and support its programs and providing scholarship funds or services rendered to
athletes who are NCAA affiliated college students.
Brand value
Licensees are selected by the licensors who will help in enhancing brand image of the
sport organization or the team. Signet licensing and Marketing which is a consultancy of South
Africa has the objective of establishing and developing brand value and brand awareness for the
clients.
Relationship
Sport licensing is used by the organizations in building relationship with the supporters.
Manchester United, an English soccer club has near 56 million supporters and fans in Middle
East by license implementation and by merchandising and reinforcing deals.
Distribution
Distribution in a widest possible forms both the licensor and licensee is necessary for
supporting the relationship and branding objectives. As per Signet Licensing and Marketing,
license program can be successful by implementing critical strategies of distribution.