Sport logos and merchandise design practices

[hokic]

Hi, 

 

I have a special question for any of you who is experienced graphic designer in sport industry. The question goes to industry standards in pricing, licensing royalties. Not sure this place is the right one, but I have a feeling it may be

 

I should explain a bit the background of why I ask.

 

I run a jersey design blog and Twitter account called Dresblog in Czech Republic. Not an easy thing, since european hockey design is poisoned with a lot of commercials on the jerseys, so it is not only about the design, but also about trying to persuade people things could work the same even in more decent way   And yes, I was inspired a lot also by this very website, when I got the idea to move the tweets from my personal account to some specialised one.

 

Anyway, the sport design is my hobby only, since mostly I am an illustrator. But as it turns out, some people like my opinions and ask me to do a sport design for them too. I do it now or then, yet so far mostly for friends only (you can see my pinned tweet, that is my work). 

Now it seems those requests come more often even from people that are regular customers. And here is the thing. 

 

Here in Czech Republic, there is still not much well known that graphic work and price consists from at least two parts. The job itself and the amount of rights the customer gets for using the work. No matter whether he will hang it on the wall or print the t-shirts in every country possible. I see it every day, when I negotiate with my customers, even graphics themselves, except those doing for big business companies, are not much aware they can get something like royalties. Many years of communism has damaged a lot of things, including the marke practices, this is one of them, people has lost the awareness of how to treat the creative rights fair. 

 

And that is why I ask you for an advice. For my illustrations, I got a handbook from US Graphic Artist Guild. I got some idea what to charge when I paint an illustration for a t-shirt or do a cover design for the package now. I got some idea or common prices for what to charge for a logo, for unlimited license use of such. 

 

But sport, that is still something bit different. The strength of a club history, of what it means for fans, it sets the balance elsewhere, in opinion. And I wish to be fair for both sides of the deal, customer and myself too. So I try to look around, how do they do it in other countries.

 

My basic questions I got in my head would be these:

 

1. Sport vs. business logo - does the price differ?
2. Sport logo used for merch - any fee, royalties?
3. Sport merch design generally - what royalties? 

 

I try to explain the thoughts for this: 

 

1. When I compare creation of business and sport team logo, I wonder whether is there in general any difference in price paid or price construction.
   
   Company logos are usually not charged for royalties, have unlimited usage, sice owner gets all-in rights, which are included to the price (based on the company size etc). But the sport logos will most probably take a place on merchandise often as the main theme of such merch. 
   
   So does this change the price of the logo anyhow?
    
2. Or does this lead to separation of the logo creation and basic usage price (including all-in usage on anything that is not sold) and logo merchandise usage price?
   
   So lets say the logo is priced similar way like in business. And then merch itself is priced extra and paid in royalties.
   
   If so, what should be such? I have found that average rate may be 8-11 %, but I am not sure whether this includes using of logo or some other original art (like bellow).
    
3. Speaking of original art merchandise, how are the average royalties in sport design, let’s say for designing a t-shirt? 
   
   I am aware that it could differ from the complexity of such design, with some logo plus simple typography at the lower end (if even) to higher rates for a complex original art or illustration.  
   
   But is that how things really work?

Those are questions that are not easy to answer without having the experience in this particular part of sport business. 
 

And that is why I try to find the answer here. 

If any of you have such experience and is fine with sharing it with me, if any of you knows someone who should be a good person to ask - I will be glad for any kind of answer.

I am not asking this only because of my self, or my business, though I will use any valid information. I find such knowledge to be very useful for any graphic, and it is a thing I try to share with my friends, for healthy and balanced cooperation with clients helps to all of us. Apart for the illustration itself this is one of the most common themes in our personal discussions and we share our own experiences and knowledge a lot.

Thanks a lot.

PS: I have been pondering whether to use this forum or the General Design one, but since it goes with "nothing to do with sports", I have decided this one fits the best, though it is not the usual theme.