Sports marketing · Sports

Finalizing a Projected P&L for a sport marketing product? Margins? 4X? 5X? Agent/Player/Channel?

Ken Steinberg Innovator and Serial Market Disrupter

August 1st, 2016

This is pretty straight forward....I have a sport marketing product I can make for (example)  $10.  I need to determine the number of times this will get uplifted before it hits retail.  Do you have direct knowledge of the margins I will need to accomodate?

Typical retail is a 4x, example make product X for $10, sell for $40.

In sports marketing/retail with a player/league involved, I am curious if this changes?

1) I know there is a league royalty (NFL, NHL, NBA,etc)
2) What do players typically ask for?  Do they give their agents 20% out of their cut or do I have to factor that in?
3) Wholesalers expect 1x or more?

Share your knowledge please...

Ken

Erik Baumgartner

August 1st, 2016

I personally don't know the answer to your questions, but I belong to a global Community for Sports Tech Entrepreneurs that you might want to check out that could help you answer your questions.  Starters dot Co.  Good luck!

Andrew Bondarowicz Experienced Attorney, Business Consultant & Entrepreneur

August 2nd, 2016

There are a number of layers to this question. I am a sports law attorney, so this falls right into our space.

First, you have to worry about league licensing. If you are playing on using professional or college marks (logos or affiliates), you will need to have the proper licenses from the rights holders. Next, if you typically have 6 or more players involved, you may also need to have a license from the players association too.

For players, doing a PA deal may be beneficial as they can provide access to deals. If you are going individually, then the "price" would usually be an all-in rate and they are paying their agents. That can vary greatly too.

Wholesales are a whole different economics depending on the industry. But a 25-50% market up is not unexpected.

You can reach our directly if you want to talk specifics.