Thread: Speculation: Doan or Selanne?
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07-10-2012, 07:01 PM
  #48
wpgsilver
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Quote:
Originally Posted by Gm0ney View Post
There's a per-item licensing fee that Reebok and other manufacturers pay to the NHL for the rights to produce official merchandise. That revenue is shared among all the teams (actually I think there's a split where a portion goes into the Revenue Sharing fund specifically to help out the weaker teams that qualify, and the rest is divvied up evenly between the 30 teams). The money TNSE makes from sales of merchandise at Jets Gear stores is the same markup that River City makes when it sells any items. So they get a replica jersey from Reebok for $70 and sell it for $125, then Chipman lights a cigar with the $55 bill you just gave him. Also, I'm sure the markup on customization is similar to popcorn at a movie theatre.

Anyway, assuming Selanne sold an extra 10,000 customized jerseys - half at Jets Gear. Say 75% replica ($55 markup), 25% pro ($120 markup), plus a $50 markup for customization...carry the one...that could be worth close to $500,000 to TNSE through Jets Gear. The other 5000 jerseys would earn the jets maybe $1 each in shared licensing revenue...so $5000 (assuming a $35 licensing fee per jersey with $5 going to special shared revenue and $1 each to the 30 NHL franchises). This is all completely ballpark, figures pulled out of thin air. With those assumptive figures, they'd need to sell about 50,000 Selanne jerseys through Jets Gear to earn $5 million.
Mark up is substantial on jerseys, and your numbers are fair (based on my time in sports retail). I'm pretty sure though that you're agreeing that TNSE wouldn't be banking on recovering the monetary value of Teemu's contract through jersey sales.

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