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Longhorns hook record merchandising revenue

8/26/2006 - Texas Longhorns

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

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 held the previous record of $6.2 million in 1993-94,
set during the school's "Fab Five" basketball era that included
NBA star Chris Webber.

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.

T-shirts were the top-sellers for UT, followed by hats. After the Longhorns beat USC in the Rose Bowl, the school's 450 licensees
sold everything from key chains to mini football helmets to a
Waterford crystal football. Even coach Mack Brown's photo on the
Wheaties cereal box brought in money.

UT's standard royalty rate is 8 percent of each licensed item
sold and 12 percent on national championship items.

Derek Eiler, chief operating officer for the Collegiate
Licensing Co., said pent-up demand fueled sales since UT hadn't won
a football championship in more than 30 years.

"The fan is the guy who'll buy six Longhorn shirts," said Eiler. "Then, there's fashion. Carolina had it with Carolina blue and the Michael Jordan thing. Texas happens to be experiencing that
now, people think the Longhorn logo is cool."