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Louisiana Tech University has seen a 61 percent increase in revenue from licensing in the 2021-22 fiscal year. Revenue from trademarks — the university’s intellectual property owned by the university’s foundation — grew significantly last year despite challenges from supply chain issues and the continued recovery from the effects of Covid-19 nationwide.
The impact of this increase comes on the back of the 2020 and 2021 fiscal years, which saw downward trends in royalties and sales primarily due to the pandemic. The cuts have also impacted college campuses’ licensing efforts in 2020, as campus closings, event cancellations and live sports schedule adjustments will disrupt sales.
In the year In 2021, supply chain problems caused by factory closings and labor shortages caused another year of declines for Collegium’s licensing revenues. However, Louisiana Tech’s decline this time was below average thanks largely to licensing decisions made in conjunction with the university’s licensing partner, Collegiate Licensing Company (CLC). These business activities continue to strengthen sales today.
“Early in the pandemic, we decided to expand opportunities to order Louisiana Tech merchandise online,” said Tonya Oakes Smith, Tech’s executive director of university communications. “The online shopping trend hasn’t slowed down and we hope to continue to provide more opportunities for our fans to shop tech gear wherever they are.”
A Louisiana Tech brand store on Amazon launched in early 2021, with sales up 82 percent in 2022. Retail sales increased dramatically across the board during this period. One of the university’s top retailers of merchandise is Walmart, where sales of licensed items are up 219 percent. Oak Hall Industries, the exclusive supplier of Louisiana Tech’s graduation caps and gowns, saw its royalty rate rise 84%, making them one of the most significant sources of licensing revenue.
The partnership with Ruston businesses will continue to benefit the campus and the community as a whole. Fanbase, the area’s favorite storefront, accounted for one of the highest retail sales volumes in 2022, up 71 percent from last year. Other retailers in the city, such as Patton’s Western Wear and The Children’s Shoppe, also saw significant growth in licensed sales.
“In addition to these partnerships with local retailers, we’ve focused on licensing new and innovative products designed to attract new fans with companies like WRLDINVSN,” Smith said. “The launch of the wine line, which coincides with the release of a Louisiana Tech documentary on veteran coach Leon Barmore, offers another line of merchandise that is currently in high demand.”
Additional key licensing partners, all with royalty increases, include Barnes & Noble College, Adidas, Academy Sports & Outdoors, Fanatics and Jostons Inc. In 2022, there is no general royalty reduction from any entities that offer officially licensed Louisiana Tech merchandise. .
Branded sales campaigns such as the “Powered By” Women’s History Month campaign through CLC provided focused efforts to generate revenue. Percentage wise, Louisiana Tech experienced a 20% drop in sales compared to their peer group average from other universities in the same athletic conference.
Increased licensee sales result in royalties to the university, with the impact of these sales exceeding one dollar.
“It’s great to see growth in this area, especially with established partners and new relationships that have developed in recent years,” said Tech President Dr. Les Guise. “This growth is valuable to the Louisiana Tech brand, which is being strengthened online, in-store and through meaningful and intentional collaborations with licensees.”
Overall, Louisiana Tech’s 2022 total royalty rate is $168,219 (a 61 percent increase). Total sales were $1,257,429 (up 53 percent). Total units sold were 131,693 (an increase of 74 percent). Apparel businesses account for 66 percent of these numbers.
“I look forward to the continued success of Louisiana Tech’s licensing efforts,” Smith said. “Knowing that we laid the groundwork for these increases during difficult times makes the results even more significant.”
Proceeds from Louisiana Tech’s bequests and partnerships benefit student scholarships.
“The licensing will strengthen Louisiana Tech University in a number of ways,” said Brooks Hall, vice president and CEO of University Advancement. “Proceeds support unique scholarship initiatives for our students, and having our fans and supporters around the world represent our university increases brand awareness.”
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