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The University of Texas finished first for the third straight year in Collegiate Licensing Co.'s rankings of the best-selling universities for 2007-08 among its 150 client schools.
The Longhorns led all CLC schools with $8.2 million in gross royalties, followed by Michigan, Florida, Louisiana State and Notre Dame in the top five.
Royalties are based on a percentage of the wholesale price and vary by school depending on its deal with CLC. Most receive 6 to 8 percent from the wholesale price, which is typically 50 percent of the retail price.
CLC, a division of IMG College, does not release its total royalties paid, but the company did report a record year in sales. The licensing agent represents 55 schools out of 73 from the Big Six conferences, as well as Notre Dame.
"We're definitely keeping an eye on [the economy], but what we've found is that when times are tough, people turn to things that give them comfort," says Derek Eiler, CLC's chief operating officer. "Any time we've gone through a recession, there's been a counterintuitive reaction in the college market. In 2000-01, we set a national royalty record. Post-9/11, we expected a significant drop-off and set another record, which has been broken several times since then."
National titles made a difference for LSU, last year's football champion, and Kansas, the basketball champ. LSU rose from 11th to fourth with $5.3 million in royalties, a 76 percent increase from the previous year. Kansas jumped from 22nd to 14th, the biggest leap on the CLC list, with $2.5 million in licensing revenue, a 110 percent increase over last year.
Meanwhile, Texas topped the $7 million mark for the third straight fiscal year, and its $8.2 million this past season was $70,000 short of the Longhorns' record year in 2005-06, when they won the national championship in football.
"The Texas brand is alive and well," Eiler said. "The silhouette Longhorn resonates beyond Texas fans and alumni. It's really becoming a fashion item."
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