University pride helps trademark logos continue to be a steady revenue stream, no matter how the University’s athletics teams are doing, one University official said.
The logos – the University “M” and the “M” with Goldy Gopher leaning on it – produce more revenue during athletics’ success, Assistant Athletics
Director Bob Hicks said. But, the symbols sell strongly year-round in the region, he said.
Logo licensing generates approximately $500,000 each year, Hicks said. The money goes to the University’s general fund, he said.
University Bookstores director Bob Crabb said money made from selling University logo apparel and merchandise in the Coffman Union bookstore is “in the millions.”
The University symbols are keys to making those profits, Crabb said.
“It is amazing how loyal the University of Minnesota customer is,” he said.
But compared to other Big Ten universities, University logos do not make as much money, University spokeswoman Amy Anderson said.
“We’re not terribly lucrative,” Anderson said.
The Ohio State University made approximately $3 million from its logo last year, said Rob Cleveland, the university’s spokesman. The University of Wisconsin-Madison took in more than $1 million last year from its logo, university spokeswoman Cindy Van Matre said.
“The more aggressive your logo is, the more popular it seems to be,” Anderson said.
Professional athletics teams bring more competition to the sports merchandise market, she said.
Still, any money the University logos generate comes from licensing.
The University controls all licensees, who sign contracts to use the institution’s name and logos for profit, Hicks said.
Hicks said licensees pay the University a $125 annual fee and an 8.5 percent royalty on the wholesale price of each item sold.
The University does not allow alcohol, tobacco or sexually explicit products to bear the logo, he said.
“We also are very discriminative when it comes to food and other products that possess an inherent risk,” he said.
Hicks said the University has twice turned down companies wishing to market University-trademarked condoms.
Licensees must also sign a conduct code that states they will not use sweatshop labor, Hicks said.
Anderson said the two University logos seem to have different meanings.
“The ‘M’ is a more recognizable symbol of the University as a whole, while the Gopher seems to connote more athletics,” Anderson said.
The University logos never go out of style, but the trends in how they are applied do, Crabb said.
The largest consumers of University logo merchandise are students, and bookstore clothing and merchandise buyers, said Dean Wendland, University Bookstores clothing and gift manager.
He said there are two markets: the sports and college fans, and the fashion conscious.
“The school spirit stuff will appeal more to the people who are really gung-ho University,” he said. “Some students are more willing to buy (newer trends) because they don’t necessarily scream ‘Minnesota.’ “