Hail to the… Redskins?

Hail to the… Redskins?
How the TTAB’s Cancellation
of a Historic Mark Impacts
Brand Value and the NFL
Michele M. Riley, CPA/CFF, CFE, MBA – [email protected]
Duke J. Schaeffer – [email protected]
Introduction n n n
This is not the first time the TTAB has made an adverse ruling
with regard to the Redskins’ trademark registrations. In 1999,
The Washington Redskins (“Redskins”) of the National Football
the Redskins’ trademark registrations were cancelled under the
League (“NFL”) own some of the most recognizable and
same disparagement provision of the Lanham Act.7 On appeal
valuable trademarks in the world. However, on June 18, 2014,
in 2003, the D.C. District Court reversed the TTAB’s decision
the Trademark Trial and Appeal Board (“TTAB”) cancelled
and, in 2009, the reversal of the TTAB’s cancellation was upheld
the federal registrations for six of the Redskins’ trademarks,
by the D.C. Circuit.8 In 2006, five Native Americans filed a new
potentially jeopardizing the value of the Redskins brand. The
TTAB, a body of the United States Patent and Trademark
Office (“USPTO”), cancelled the trademarks because they
were “disparaging to Native Americans at the respective times
they were registered.”1 The cancellation ruling only applies to
trademarks bearing the name “Redskins.” The American Indian
Chief logo, stamped on the players’ helmets and the middle of
FedEx Field, is still protected.2
Valued at $2.4 billion,3 the Redskins are the seventh most
valuable sports team in the world and the third most valuable
team in the NFL behind the Dallas Cowboys and New England
Patriots.4 All of the NFL’s 32 franchises, which share revenues
from broadcasting and licensing deals, fall in Forbes’ top 52
most valuable sports teams.5 According to John Vrooman, the
author of The Economic Structure of the NFL, “Over the last halfcentury the National Football League (NFL) has become the most
economically powerful sports league in the world largely because
it has also been the most egalitarian.”6 Given this revenue-sharing
arrangement, the TTAB’s ruling has the potential to financially
impact not only the Redskins franchise, but the entire NFL.
United States Patent and Trademark Office Trademark Trial and Appeal Board,
Cancellation No. 92046185 in Amanda Blackhorse, Marcus Briggs-Cloud, Philip Gover,
Jillian Pappan, and Courtney Tsotigh v. Pro-Football, Inc., 18 June 2014, 2.
Specifically, the TTAB ruled that these trademarks were in violation of Section 2(a)
of the Lanham Trademark Act.
2
Ken Belson and Nick Corasaniti, “Redskins Trademark: A Primer on the Cancellation,”
The New York Times, 18 June 2014, http://www.nytimes.com/2014/06/19/sports/football/
redskins-trademark-a-primer-on-the-cancellation.html?_r=0 (accessed 25 July 2014).
3
Forbes, “NFL Team Values, The Business of Football,” Aug. 2014,
http://www.forbes.com/nfl-valuations/list/ (accessed 9 Sept. 2014).
4
Forbes, “NFL Team Values, The Business of Football,” Aug. 2014, http://www.forbes.com/
nfl-valuations/list/ (accessed 9 Sept. 2014); Forbes, “Soccer Team Values, Business on
the Pitch,” May 2014, http://www.forbes.com/soccer-valuations/list/ (accessed 9 Sept.
2014); Forbes, “MLB Team Values, The Business of Baseball,” March 2014, http://www.
forbes.com/mlb-valuations/list/ (accessed 9 Sept. 2014); Forbes, “NBA Team Values, The
Business of Basketball,” Jan. 2014, http://www.forbes.com/nba-valuations/list/ (accessed
9 Sept. 2014); Forbes, “NHL Team Values, The Business of Hockey,” Nov. 2013, http://
www.forbes.com/nhl-valuations/list/ (accessed 9 Sept. 2014).
5
Michael David Smith, “Sharing the wealth has made NFL owners the richest in the world,”
NBC Sports, 16 July 2013, http://profootballtalk.nbcsports.com/2013/07/16/sharing-thewealth-has-made-nfl-owners-the-richest-in-the-world/ (accessed 25 July 2014).
6
John Vrooman, “The Economic Structure of the NFL,” Chapter 2 of The Economics
of the National Football League: The State of the Art, K.G. Quinn (ed.) (Springer
Science+Business Media, LLC 2012), 7, http://www.vanderbilt.edu/econ/faculty/Vrooman/
VROOMAN-NFL.pdf (accessed 25 July 2014).
7
Latham & Watkins, “Fine Timing For The Washington Redskins: ‘Racial Epithets’ As
Trademarks,” Litigation Department, Client Alert Number 1526, 22 May 2013, http://www.
lw.com/thoughtLeadership/washington-redskins-trademark (accessed 25 July 2014).
8
Gene Quinn, “Supreme Court Refuses Harjo, Redskins Can Keep Trademark”
IPWatchdog, Inc., 16 Nov. 2009, http://www.ipwatchdog.com/2009/11/16/supremecourt-refuses-harjo-redskins-can-keep-trademark/id=7314/ (accessed 25 July 2014).
1
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case requesting that the TTAB cancel the Redskins’ trademark
Nike, along with other apparel and headwear licensees, make up
registrations, which led to the recent TTAB ruling.
nearly half of the royalties generated from NFL licensed goods.14
9
Royalty revenues from these merchandise sales are most likely
NFL Dollars — What’s At Stake? n n n
to be affected by the TTAB’s decision. Without federal trademark
According to Forbes, the average NFL team earns $299 million in
revenue per year, and $53 million in profit per year.10 The Redskins
are well above the average, generating $395 million in revenue and
$143 million in profit per year.11
protection, it is possible that unlicensed sources could begin to
sell unauthorized “Redskins” products with impunity.
In addition to the shared pot of revenues, Mr. Phillips says that
each team generates local revenues through some combination
Jeffrey S. Phillips, Head of SRR’s Transaction Opinion practice,
has extensive experience in providing valuation opinions for
professional sports teams, including the NFL. According to Mr.
Phillips, while NFL team revenues come from a variety of sources,
more than half of all revenues are attributable to a shared NFL
pot, comprised mostly of national broadcasting and licensing
deals. Furthermore, “Market size and performance do not matter
to the pool of national revenues — all teams get an equal share.
Any impact on the Redskins impacts the whole NFL. It’s a fairly
of the sale of tickets, suites, sponsorships and naming rights,
local pre-season television and radio deals, concessions, parking,
programs, novelties, and merchandise. The TTAB’s decision
could directly impact the Redskins’ local revenues, primarily those
generated from merchandise sales. The combination of potential
losses in the shared pot and local revenues could amount to
millions of dollars.15
Impacts of the Cancellation n n n
socialistic league. From a revenue perspective, the primary impact
It is important to note that even if the Redskins lose their trademark
of the TTAB’s decision will be felt in the shared licensing revenues.”
registrations, the franchise is still permitted to use the name, albeit
without federal trademark protection.16 In addition, the franchise
will retain the right to pursue damages from non-licensed entities
Figure 1: Examples of NFL Licensing Deals
($ millions per year)
$250
common-law claim by virtue of having used the name for so long.17
Nevertheless, the TTAB’s decision poses two serious threats to
$220
$200
$200
$ millions/year
that use the Redskins trademarks; the team can argue that it has a
the Redskins organization. First, if the cancellation is affirmed
$180
by a federal court, or if the franchise fails to appeal — a highly
unlikely outcome — the team would lose certain legal protections
$150
conferred by federal trademark registration. Second, even if the
$100
$70
$50
$0
TTAB’s ruling is reversed, the decision has spurred a national
$45
debate revealing mounting public opinion against the continued
use of the team name. If sales of licensed Redskins merchandise
Nike
AnheuserBusch
Verizon
Pepsi
Gatorade
Within the shared pot of revenues, licensing deals for the NFL
are very lucrative.
12
See Figure 1. Nike, one of many licensees
to NFL trademarks, reportedly paid $1.1 billion in 2012 to be the
league’s official uniform provider for five years.13 Payments from
become diluted due to an influx in unauthorized merchandise, or
decrease due to deteriorating public opinion, all NFL franchises18
stand to lose revenues.
Unauthorized Merchandise
The loss of legal protections afforded by federal trademark
registration may significantly impact the market for counterfeit
goods. Such sales plague the NFL to the tune of billions of dollars
Latham & Watkins, “Fine Timing For The Washington Redskins: ‘Racial Epithets’ As Trademarks,” Litigation Department, Client Alert Number 1526, 22 May 2013,
http://www.lw.com/thoughtLeadership/washington-redskins-trademark (accessed 25 July 2014).
Forbes, “NFL Team Values, The Business of Football,” Aug. 2014, http://www.forbes.com/nfl-valuations/list/ (accessed 9 Sept. 2014). Averages calculated by Stout Risius Ross.
11
Forbes, “Washington Redskins, NFL Team Valuations,” Aug. 2014, http://www.forbes.com/teams/washington-redskins/ (accessed 9 Sept. 2014). Revenue is net of stadium revenue
used for debt payments; operating income is earnings before interest, taxes, depreciation and amortization.
12
CNN Money, “Inside the NFL’s $9.3 billion money machine,” 9 Mar. 2011, http://money.cnn.com/galleries/2011/news/1103/gallery.nfl_total_value.fortune/4.html (accessed 25 July 2014).
13
John Kell, “Nike Shows NFL Gear: League’s New Uniform Supplier Will Launch Consumer Line at End of April,” Wall Street Journal, 4 Apr. 2012,
http://online.wsj.com/news/articles/SB10001424052702303816504577321743295501220 (accessed 25 July 2014).
14
Ken Belson, “Nike to Replace Reebok as N.F.L.’s Licensed-Apparel Maker,” The New York Times, 12 Oct. 2010
http://www.nytimes.com/2010/10/13/sports/football/13nike.html?_r=1& (accessed 25 July 2014).
15
Amanda Ciccatelli, “Washington Redskins trademark registration canceled,” InsideCounsel Magazine, 24 June 2014,
http://www.insidecounsel.com/2014/06/24/washington-redskins-trademark-registration-cancele (accessed 25 July 2014).
16
Karen Gaunt and April Besl, “Trademark Takeaways From The Washington Redskins Case,” Law360, 19 June 2014,
http://www.law360.com/articles/549468/trademark-takeaways-from-the-washington-redskins-case (accessed 25 July 2014).
17
Kavitha Davidson, “Redskins Can Lose Name or Lose Money,” BloombergView, 18 June 2014,
http://www.bloombergview.com/articles/2014-06-18/redskins-can-lose-name-or-lose-money (accessed 25 July 2014).
18
With the exception of the Dallas Cowboys, who have their own merchandising deal. Ken Belson and Edward Wyatt, “Redskins Lose Ruling on Trademarks, but Fight Isn’t Over,”
The New York Times, 18 June 2014, http://www.nytimes.com/2014/06/19/sports/football/us-patent-office-cancels-redskins-trademark-registration.html (accessed 25 July 2014).
9
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2
every year.19 Agencies like the U.S. Immigration and Customs
Enforcement (“ICE”) and the U.S. Customs and Border Protection
Figure 2: Redskins Valuation Breakdown (Forbes)
($ millions)
(“CBP”) are required to block the import of non-sanctioned
merchandise that bears federally registered trademarks.20 These
federal agencies play a large role in combating counterfeit NFL
$214
goods; in the second half of 2013 alone, they seized more than
$21 million in fake NFL merchandise and shut down more than
Shared Revenue
5,000 e-commerce websites.21 If the Redskins lose their federal
$511
trademark protection, counterfeit merchandise sales could
Market Size
$1,150
increase at the expense of legitimate merchandise sales — an
Stadium
effect that would be felt by all NFL franchises.22
$550
Market Backlash
Brand
When faced with trademark cancellation over a decade ago,
the Redskins fought the decision in court. While the team has
promised to do the same this time around,23 public opinion on the
issue is more contentious than in the early 2000s. Notable figures
and distinguish a product from others in the marketplace and
— including President Barack Obama, members of Congress, the
identify it with its source.”27
D.C. Council, and several high-profile sportscasters and journalists
— have voiced their opposition to the continued use of the team
name.24 In May of 2014, half of the Senate wrote letters to the
NFL urging a change.25 Additionally, some shareholders of FedEx,
sponsor and owner of the stadium naming rights, have asked the
company to consider the reputational risk of holding the naming
rights to the field.26
As the Los Angeles Clippers organization recently discovered
when team owner Donald Sterling’s racist comments were
publicized, public opinion can quickly force an organization to
make institutional changes. If the public dissent against the use
of the “Redskins” name continues to grow, the franchise and the
NFL may have no choice but to change the name, less it risk the
hundreds of millions of dollars generated by the team every year.
The Redskins long-standing trademarks — some registered half
a century ago28 — are some of the franchise’s most valuable
assets. Approximately half of the Redskins’ $2.4 billion valuation,
according to Forbes, is attributable to revenue shared amongst all
teams. The other half is comprised of the Redskins’ market size
($550 million), stadium ($511 million), and “brand” ($214 million).29
See Figure 2.
While a “trademark” identifies the source of a particular product,
a “brand” often signifies customer perceptions about the product
or service.30 As is the case with the Redskins franchise, a
company’s brand is often built on its collective trademarks, which
can represent a large portion of its total value. Figure 3 on the
following page, created by the Marketing Science Institute, shows
how much of a company’s value across various industries is made
What’s In a Name? n n n
up by its brand.
A trademark, according to the International Trademark Association
According to David Haigh in his book Brand Valuation:
(“INTA”), “may be any word (XEROX), name (GIORGIO ARMANI),
Understanding, Exploiting and Communicating Brand Values, “A
slogan (GOT MILK?), symbol (McDonald’s golden arches),
brand has the unique ability to transfer consumer loyalty between
device (the Pillsbury Doughboy), package design (Coca-
products, services and categories over time and to separate it from
Cola bottle), or combination of these that serves to identify
tangible production. The ability to franchise and license brands
Allan Brettman, “NFL, Nike fight to keep counterfeit products off the market,” OregonLive.com, 16 Nov. 2013, http://www.oregonlive.com/playbooks-profits/index.ssf/2013/11/nfl_nike_
fight_to_keep_counter.html (accessed 25 July 2014).20
Ken Belson and Nick Corasaniti, “Redskins Trademark: A Primer on the Cancellation,” The New York Times, 18 June 18.
2014, http://www.nytimes.com/2014/06/19/sports/football/redskins-trademark-a-primer-on-the-cancellation.html?_r=0 (accessed 25 July 2014).
21
U.S Immigration and Customs Enforcement, “Federal agencies seize more than $21.6 million in fake NFL merchandise during ‘Operation Team Player’,” News Release, 30 Jan. 2014, http://
www.ice.gov/news/releases/1401/140130newyork.htm (accessed 25 July 2014).
22
With the exception of the Dallas Cowboys, who have their own merchandising deal; Ken Belson and Edward Wyatt, “Redskins Lose Ruling on Trademarks, but Fight Isn’t Over,” The New
York Times, 18 June 2014, http://www.nytimes.com/2014/06/19/sports/football/us-patent-office-cancels-redskins-trademark-registration.html (accessed 25 July 2014). Ken Belson and Nick
Corasaniti, “Redskins Trademark: A Primer on the Cancellation,” The New York Times, 18 June 18. 2014, http://www.nytimes.com/2014/06/19/sports/football/redskins-trademark-a-primeron-the-cancellation.html?_r=0 (accessed 25 July 2014).
23
Amanda Ciccatelli, “Washington Redskins trademark registration canceled,” InsideCounsel Magazine, 24 June 2014, http://www.insidecounsel.com/2014/06/24/washington-redskinstrademark-registration-cancele (accessed 25 July 2014).
24
Mark Holan, “The Sponsors: From Team Partners, Just Silence” Washington Business Journal, Vol. 33, No. 10, 27 June 2014, 33; Theresa Vargas and Annys Shin, “President Obama says,
‘I’d think about changing’ name of Washington Redskins,” The Washington Post, 5 Oct. 2013, http://www.washingtonpost.com/local/president-obama-says-id-think-about-changing-nameof-washington-redskins/2013/10/05/e170b914-2b70-11e3-8ade-a1f23cda135e_story.html (accessed 25 July 2014).
25
Amanda Ciccatelli, “Washington Redskins trademark registration canceled,” InsideCounsel Magazine, 24 June 2014, http://www.insidecounsel.com/2014/06/24/washington-redskinstrademark-registration-cancele (accessed 25 July 2014).
26
Mark Holan, “The Stadium Name: Some Shareholders Upset with FexEx,” Washington Business Journal, Vol. 33, No. 10, 27 June 2014, 32.
27
International Trademark Association, “Introduction to Trademarks,” http://www.inta.org/TrademarkBasics/FactSheets/Pages/LearntheLanguageFactSheet.aspx (accessed 25 July 2014).
28
Ken Belson and Edward Wyatt, “Redskins Lose Ruling on Trademarks, but Fight Isn’t Over,” The New York Times, 18 June 2014, http://www.nytimes.com/2014/06/19/sports/football/uspatent-office-cancels-redskins-trademark-registration.html (accessed 25 July 2014).
29
Forbes, “Washington Redskins, NFL Team Valuations,” Aug. 2014, http://www.forbes.com/teams/washington-redskins/ (accessed 9 Sept. 2014).
30
Jerry McLaughlin, “What is a Brand, Anyway?” Forbes, 21 Dec. 2011, http://www.forbes.com/sites/jerrymclaughlin/2011/12/21/what-is-a-brand-anyway/ (accessed 25 July 2014).
19
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Maintain the Status Quo
Figure 3: Brand Equity as a percentage of firm value
The team can refuse to change
the name, as it did after the first
70%
60%
TTAB trademark cancellation, and
61%
58%
attempt to maintain the status
55%
quo. Early indications suggest
50%
the organization plans to do just
38%
40%
this. When asked if he would
35%
ever consider changing the team
30%
24%
22%
20%
name, team owner Daniel Snyder
replied, “We’ll never change the
name. It’s that simple. NEVER —
10%
you can use caps.”35 As a further
indication of its intent to stick it
0%
Apparel
Printing &
publishing
Tobacco
Food
products
Chemicals
Electric
machinery
Furniture &
fixtures
Source: “The Measurement and Determination of Brand Equity: A Financial Approach”, Marketing Science, Winter 1993
out, the Redskins recently hired
public
relations
firm
Burson-
Marsteller to battle criticism over
the use of the team name.36
has enabled recognition of this intangible property as the most
powerful and productive asset owned by modern business. For
some commentators, it is this transferability of the brand between
products that differentiates it from a trademark.”31
Change the Name
If the Redskins franchise does change its name, it could lose
profits due to the dilution of its brand strength — a brand the team
Brand owners are obviously interested in brand value. Although,
has spent years building. In addition, the Redskins would bear the
as previously mentioned, the TTAB’s decision does not affect the
costs of creating a new brand.
Redskins’ ability to use its trademarks, it could certainly impact
the organization’s image, as well as the Redskins’ ability to protect
its trademarks, and therefore ultimately harm the brand’s value.
What Can the Redskins Do? n n n
The Redskins can approach the TTAB’s cancellation in a number
On the other hand, a name change could benefit the franchise.
Changing the name could present a significant opportunity —
“Redskins” gear would become collectors’ items, driving up
prices in a fire sale fashion.37 The Redskins may likewise see an
increase in profits due to an initial surge in sales of the team’s
merchandise under its new name.
of ways. It is nearly certain the team will appeal the decision.32
The Redskins will retain federal trademark protection throughout
Allen Adamson, managing director of Landor Associates, the
the appeal process
— and if the 10-year appeal of the 1999
brand consulting firm that helped Andersen Consulting make
is any indication, the Redskins will hold onto their
the switch to Accenture, thinks a Redskins re-branding offers a
trademark registrations for quite some time. However, even if the
significant opportunity for profit.38 He states, “It creates news … It
decision is overturned on appeal, the Redskins face a serious
creates interest. It will draw people in.” When asked whether the
threat of market backlash from continued use of the name. To
Redskins might risk losing fans with a name change, Adamson
avoid a loss in fan base and potential boycott of the franchise, the
was not concerned: “Memories are short when you are in a
Redskins organization has at least the following two alternatives.
monopoly market.”39
33
decision
34
Dr. Jennifer Davis, “The value of trade marks: economic assets and cultural icons,” Chapter from Intellectual Property: Bridging Aesthetics and Economics
(Themis, University of Montreal, Oct. 2006), https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=0CCgQFjAB&url=http%3A%2F%2Fwww.
atrip.org%2FContent%2FActivities%2FDavis%2520Brandvalue.doc&ei=omjSU7uiBbLksATj0oHQDQ&usg=AFQjCNHsWa2Y4jQJA0FAFuoHL0W_fzz4xQ&sig2=e0aw9mE0dmuVvIYXD5X_w&bvm=bv.71667212,d.cWc (accessed 25 July 2014).
32
Amanda Ciccatelli, “Washington Redskins trademark registration canceled,” InsideCounsel Magazine, 24 June 2014,
http://www.insidecounsel.com/2014/06/24/washington-redskins-trademark-registration-cancele (accessed 25 July 2014).
33
Ken Belson and Nick Corasaniti, “Redskins Trademark: A Primer on the Cancellation,” The New York Times, 18 June 18. 2014,
http://www.nytimes.com/2014/06/19/sports/football/redskins-trademark-a-primer-on-the-cancellation.html?_r=0 (accessed 25 July 2014).
34
Bill Donahue, “Postgame: Drinker Biddle’s Witten Talks Redskins Win,” Law360, 24 June 2014,
http://www.law360.com/articles/551106/postgame-drinker-biddle-s-witten-talks-redskins-win (accessed 25 July 2014).
35
Erik Brady, “Daniel Snyder says Redskins will never change name,” USA TODAY Sports, 10 May 2013,
http://www.usatoday.com/story/sports/nfl/redskins/2013/05/09/washington-redskins-daniel-snyder/2148127/ (accessed 1 Aug. 2014).
36
John Clarke, “Redskins hire PR firm Burson-Marsteller amid fight over name,” Reuters, 30 July 2014,
http://www.reuters.com/article/2014/07/30/us-nfl-redskins-burson-idUSKBN0FZ2FV20140730 (accessed 1 Aug. 2014).
37
Ken Belson and Nick Corasaniti, “Redskins Trademark: A Primer on the Cancellation,” The New York Times, 18 June 18. 2014,
http://www.nytimes.com/2014/06/19/sports/football/redskins-trademark-a-primer-on-the-cancellation.html?_r=0 (accessed 25 July 2014).
38
Ira Boudway, “The Business Case for Changing the Name of the Washington Redskins,” Bloomberg Businessweek, 31 May 2013,
http://www.businessweek.com/articles/2013-05-31/the-business-case-for-changing-the-name-of-the-washington-redskins (accessed 1 Aug. 2014).
39
Ira Boudway, “The Business Case for Changing the Name of the Washington Redskins,” Bloomberg Businessweek, 31 May 2013,
http://www.businessweek.com/articles/2013-05-31/the-business-case-for-changing-the-name-of-the-washington-redskins (accessed 1 Aug. 2014).
31
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4
Controversial sports names are nothing new to the nation’s
Conclusion n n n
capital. In 1997, the National Basketball Association’s (“NBA”)
Washington Bullets changed their name to the Washington
According to the Washington Business Journal, “The [Redskins
Wizards as part of the team’s anti-violence campaign. Robert
franchise is] a key cog in the region’s economy. It has an 82-year
Pollin, the son of Abe Pollin (former owner of Bullets/Wizards
history and hundreds of thousands of rabid fans, many of whom
team), wrote recently about the Washington Wizards and
disagree on whether the team name needs to change.”49 While
Redskins, “The [Wizards] would not be one iota better, nor
the eventual impacts of the TTAB’s decision may be large, both
would they have one more fan, if they were called the Bullets …
to the Redskins and other NFL teams, neither are likely to feel
Through making such a courageous decision, Snyder would
a direct financial impact of the ruling any time soon. However,
earn the respect of his community and create a massive new
even if the team ultimately changes its name, there may be a
wave of support for his football team.”40 Even after the Wizards
silver lining to this storm cloud — if executed properly, plenty of
name change, the organization still sold Bullets “throwback”
those hundreds of thousands of rabid fans will be looking for new
merchandise.
licensed merchandise.
41
The once-Redskins, too, would likely offer
throwback Redskins gear for years after the name change.
Michele M. Riley, CPA/CFF, CFE, MBA is a Managing Director in the
The Charlotte Bobcats franchise of the NBA is an example of a
Intellectual Property Practice within the Dispute Advisory & Forensic
team that recently underwent a re-branding. The team announced
Services Group at SRR. Ms. Riley co-leads the SRR Intellectual
in May 2013 plans to change its name to the Charlotte Hornets,
Property Practice and is responsible for providing a variety of
a name the Charlotte team donned from 1988-2002.42 Although
consulting services, with a focus on intellectual property damages
the re-branding cost the team at least $3 million, the cost was
and valuation. Ms. Riley can be reached at +1.202.370.2404
arguably outweighed by the benefits.
or [email protected].
43
After the announcement,
ticket sales for the team increased 59 percent from the previous
season and a number of new sponsorship deals were made.44
Even though new Hornets uniforms, logos, and other gear had
not been unveiled, the team created two sub-brands — “Back
the Buzz” and “Buzz City” — which were so popular the team
had to secure additional inventory.
45
Pete Guelli, the Hornets’
executive vice president and chief sales and marketing officer,
said the move to re-brand opened up a number of doors that were
previously closed.46
If the Redskins franchise does change its name, there are already
Duke J. Schaeffer is a Senior Analyst in the Intellectual Property
Practice within the Dispute Advisory & Forensic Services Group
at SRR. He has experience in valuation and litigation projects
focusing on intellectual property assets. Mr. Schaeffer can be
reached at +1.202.370.2409 or [email protected].
This article is intended for general information purposes only and is not intended to provide,
and should not be used in lieu of, professional advice. The publisher assumes no liability
for readers’ use of the information herein and readers are encouraged to seek professional
assistance with regard to specific matters. Any conclusions or opinions are based on the
specific facts and circumstances of a particular matter and therefore may not apply in all
instances. All opinions expressed in these articles are those of the authors and do not
necessarily reflect the views of Stout Risius Ross, Inc. or Stout Risius Ross Advisors, LLC.
a number of suggestions. Some of the more popular labels
include the Washington: “Warriors,” “Pigskins,” “Hogs,” “Red
Hawks,” “Redtails,” “Senators,” and “Renegades.”47 Although the
Washington “Pigskins” organization might risk an initial setback,
Allen Adamson says, “I think in the worst case it would be a breakeven over a three- to five-year period.”48
Robert Pollin, “Dan Snyder can learn from when the Bullets became the Wizards,” The Washington Post, 29 June 2014, http://www.washingtonpost.com/opinions/dan-snyder-can-learnfrom-when-the-bullets-became-the-wizards/2014/06/29/6dc4659e-fe36-11e3-b1f4-8e77c632c07b_story.html (accessed 25 July 2014).
Ira Boudway, “The Business Case for Changing the Name of the Washington Redskins,” Bloomberg Businessweek, 31 May 2013, http://www.businessweek.com/articles/2013-05-31/thebusiness-case-for-changing-the-name-of-the-washington-redskins (accessed 1 Aug. 2014).
42
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