Tampa apparelmaker scores long-term baseball contract
By KRIS HUNDLEY
Published August 7, 2003
TAMPA - For 15 years, VF Imagewear Inc. has been one of several apparelmakers churning out T-shirts and sweatshirts emblazoned with the logos of major-league baseball teams for sale at big retailers like Wal-Mart and Target.
Beginning in 2005, the Tampa division of giant VF Corp. gets this piece of Major League Baseball's action all to itself.
The MLB named VF Imagewear one of seven exclusive partners in a five-year global licensing agreement expected to net the league and its 30 teams at least $500-million by 2009.
The value of the VF contract was not disclosed, though Tom Riden, senior vice president of VF Imagewear, described it as "substantial."
"Previously we've been competing with somewhere from three to five different suppliers," Riden said. "And we've always competed on price rather than the correct decision to promote Major League Baseball. So this gives us new opportunities to concentrate in those markets without an actual bidding war."
VF Imagewear will be producing "non-authentic" apparel, that is, clothing that is not worn by players on the field but which carries official MLB logos. Blank T-shirts and sweatshirts are made overseas and decorated by screening or embroidering at VF Imagewear's Tampa plant. Riden said the new contract is good news for local employees.
"All those people should feel more secure in their positions," said Riden, who estimated the Tampa workforce at about 800. "And we'll probably be adding more people as this opportunity materializes."
In addition to having an exclusive on baseball logo T-shirts and sweatshirts sold in discount stores, the new five-year contract gives VF Imagewear several other exclusives. The company will continue to be exclusive provider of what Riden called "locker-room apparel," the T-shirts players and coaches don in the locker room immediately after winning post-season playoff games. That contract had previously been renewed annually.
VF Imagewear also will be the exclusive supplier of T-shirts and sweatshirts with players' names, numbers and team logos. These shirts, which wholesale for about $7, sell in both discount stores and mid-tier retailers such as Sears and JCPenney.
VF Imagewear will have rights to sell its apparel in team shops and through electronic retailers. And it will be able to market these goods in Canada as well as South and Central America.
Steve Armus, vice president of licensing for Major League Baseball, said the decision to focus on a smaller number of licensing partners makes sense.
"Before, we had situations where we weren't doing right by our brand by having so many people try to deliver the same thing," he said. "Now we're allowing licensees to really have ownership in a particular business where they can excel."
Other companies signing agreements with MLB for other licensed products were Majestic Athletic Ltd. of Bangor, Pa.; New Era Cap Co., Derby, N.Y.; Nike USA, Beaverton, Ore.; Twins Enterprises Inc., Boston; Dynasty Apparel Industries Inc., Miami; and Drew Pearson International Inc. of Addison, Texas.
