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Denver Post August 11th 1994

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  1. It's a fall Sunday and the no-account Los Angeles Raiders rumble onto the field of Mile High Stadium, and some 76,000 orange-clad fans rise as one and boo the hated rival.
  2.  
  3. Most don't realize that head Raider Al Davis' wallet gets a little fatter every time a Bronco fan slaps down $15 for a Bronco hat or $100 for an authentic jersey or a $130 for a coat or even $9.95 for a Christmas tree ornament.
  4.  
  5. Like the other three major leagues, the National Football League pools the money from sales of licensed merchandise and splits it evenly among the league's 28 teams. (The league's two new teams won't get into the pool until next year.) "The teams that were in the large metropolitan areas automatically sold more than those in the small markets. They were trying to make it fair for teams in smaller markets. But now that is changing obviously," said Karen Raugust, executive editor of the Licensing Letter, a trade publication that covers all types of licensing.
  6.  
  7. "Retail sales of licensed sports merchandise in the U.S. and Canada in 1993 came to $13.14 billion. So it is a big market. About three-fourths of that is attributable to the four (professional) leagues and collegiate merchandise," she said. "The other fourth comes from minor-league baseball, auto racing, soccer, golf and the Olympics."
  8.  
  9. In the last fiscal year, NFL fans spent the most to wear team colors and logos - more than $3 billion. Major League Baseball raked in more than $2.5 billion; the National Basketball Association, about $2.5 billion; and the National Hockey League just over $1 billion. Collegiate sales were just over the $2 billion mark.
  10.  
  11. Dollar figures like that make team colors and logos big business, and team and league officials know that change equals more business.
  12.  
  13. "I think every team that continually, as part of their ongoing marketing plan, updates their look can expect to sell more," said Ian Gomar, a vice president of Starter Corp., a leading manufacturer of sports apparel. "It's just logical. If you have the same look year after year, the fans don't have anything new to buy. Maybe they want a new jacket, but they won't go out and buy one without a new design.
  14.  
  15. "It's a combination of colors and logo (that drive sales)," he said. "Look at the strength of the Mighty Ducks and the Charlotte Hornets. You see good color combinations and a strong logo. When a team changes or updates colors, that brings more excitement to the teams as long as the color and logo are good."
  16.  
  17. Two of Denver's three big-league teams, the Rockies and the Nuggets, have new logos. Rockies merchandise has been baseball's No. 1 seller for both years of the team's existence.
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  19. The Nuggets changed logos last season, going from a multicolored skyline to a mountain logo with only three colors: old gold, deep red and mountain blue. The current logo is the fifth in the Nuggets' 27-year history, said Scott Franklin, the team's director of retail operations.
  20.  
  21. "There was a 100 percent increase in arena sells," he said. "They have increased nationally, as well. Part of that goes hand in hand with the improvement of the team. But even before the team had its resurgence this spring, sales had risen substantially. Two years ago, we were 26 out of 27 in sales. Now, I believe we are at 13 nationally. That's out of 28 teams."
  22.  
  23. The Nuggets operate two retail stores, so an increase helps the franchise as well as increasing pool profits.
  24.  
  25. Despite the fanaticism of the Broncos faithful, the football team's national merchandise sales rank 20th out of 30 NFL teams in merchandise sells.
  26.  
  27. But don't look for a logo change.
  28.  
  29. "It is a very recognizable logo and it is us," Bronco spokesman Jim Saccomano said. "Just about anybody who follows sports - I probably shouldn't even say "just about' - and sees the "D' with the horse in it knows who it is. It is one of the most recognizable regardless of the sport."
  30.  
  31. The horse-and-"D' logo made its debut in 1968. It replaced a caricature of a bucking bronco, the only other logo in the team's 35-year history. The Broncos colors have been blue and orange for all but two of those years.
  32.  
  33. "In the first two years we had mustard and brown," Saccomano said. "Seriously, it is considered the most unslightly and garish uniform ever known. It was singular in its ugliness. We burned those uniforms in a public bonfire in 1962."
  34.  
  35. Teams can still change their on-the-field look and use the same logo and colors.
  36.  
  37. Starter's Gomar used the New York Jets as an example. "They're basically white and green with some black. Fans are not excited about a white jacket with green highlights. So we make a green and black jacket with white lights. We have been very successful with that jacket. Our strength is working with team colors to deliver a very attractive garment."
  38.  
  39. Logo changes can come in three ways. Starter and the other licensed companies can approach the leagues with ideas; the league can approach the teams; or the teams make the decision.
  40.  
  41. Starter supplies on-the-field jackets for Major League Baseball. They sold 20 of the 28 teams on a new jacket this year. Gomar said he hopes to convince the others to change within a year or two.
  42.  
  43. The Nuggets change came at the direction of club President Tim Leiweke.
  44.  
  45. "All change has to go through league approval," Franklin said. "It was a two-year process. Tim decided he wanted a change right when he came to Denver three years ago. He put in for a change in 1991 and it was unveiled in '93."
  46.  
  47. While the Broncos promise no logo changes, many predict the Denver team and many others will have to change in the near future.
  48.  
  49. "I think you are going to see, at least for the next several years, teams that haven't changed in a while try and update a little bit," Raugust said. "Usually, they try to achieve a shelf-life of at least 10 years.
  50.  
  51. "They want to make it fresh and new and merchandisable, but they still like to keep the historical elements in there. So they usually try and maintain some level of what they used to have, some kind of icon they might freshen up. Or they might keep some of the same colors to make some kind of continuity. I don't think the Yankees will ever get rid of their pinstripes, for example."
  52.  
  53. Locally, John Brennan, owner of the Sportsfan stores, said he wouldn't be surprised to see the Broncos in new uniforms next year. Brennan said the Dallas Cowboys will unveil a new look if they make the playoffs this year. "It will be much more decorative than anything you have seen so far."
  54.  
  55. The professional teams may not have a choice. So many colleges plan changes that the pros will have to respond to keep their large share of the market.
  56.  
  57. "In the next two or three years, all of the pro teams will change except for the most traditional, such as the (Green Bay) Packers and (Chicago) Bears. My guess is even the Raiders will go for the glitter."
  58.  
  59. While the Rockies might be the king of merchandise sales nationally, the baseball team is but a prince in its own hometown. And a national baseball strike certainly would have a negative impact on sales.
  60.  
  61. "We expect the Broncos to be king again," Brennan said. "The Rockies took over for a period last year. The interest in the Broncos waned for a period, but this year it's back with a vengeance. That is partly because the Broncos' season falls within a good retail-selling season. But the interest is huge this year in the Broncos. It may be the best Bronco market in four or five years."
  62.  
  63. ORANGE YOU GLAD?
  64.  
  65. The Denver Broncos logo has been around since 1968, and the orange and blue the color of choice since 1962. Should the organization make a change? Call 820-1345 and leave us a message with your suggestions.
  66. Illustration
  67.  
  68. Caption: PHOTOS: COLORS OF MONEY: A long shelf-life crucial for merchandise. Eyewear touts Rockies. HOT STUFF: Colorado Rockies hats, top, sell like crazy. Dikembe Mutombo, left, wore the Nuggets' old logo; new logo above. GRAPHIC: Top ten merchandise sales
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