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New Era's Sales Surge in First Year of NFL Contract

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For 88 years, America's own cap company, New Era, has been providing headwear to sports fans across the globe.  With its history firmly rooted in Major League Baseball, New Era entered the new frontier of professional football earlier this year when it signed a five-year contract to be the official headwear provider of the National Football League.  New Era's partnership with the NFL began just prior to the NFL Draft.  This week in New Orleans, the company put the capstone on its first year of NFL business during Super Bowl week.

For New Era, Super Bowl week in New Orleans meant an increased presence amongst players and fans through an activation campaign.  New Era set up shop at the Super Bowl Media Center, where fans and players were treated to customized black caps featuring a gold NFL logo.  New Era's media lounge featured floor-to-ceiling displays holding all 32 NFL team's New Era caps in a variety of designs.  The sleek looks of the caps were admired by the many media personalities and NFL players buzzing about the media center throughout the week.

While New Era may be the "new kid on the block" when it comes to its licensing agreement with the NFL, the truth of the matter is that the relationship has been a long time coming.  "We actually had a long-term relationship with the NFL, that when the NFL went to the single-sideline model with Reebok 10 years ago, we left the NFL.  We're known not only as the leader in headwear, but for our relationship with MLB.  We've been on the baseball field officially since the 1980s, and unofficially since 1934.  Our success and what we've been able to do in the headwear business opened up the NFL's eyes to the possibilities that existed in their own headwear business.  We were part of the process the NFL commenced for their entire licensing portfolio.  We were fortunate to come out on top for the headwear rights on the field," New Era president Pete Augustine said.

Competition to obtain the headwear licensing agreement with the NFL was steep. According to Augustine, "all of the major footwear brands had an interest."  However, Augustine believes that New Era ultimately landed the deal because "the NFL appreciated the fact that [New Era is] the category expert."  Expanding on that notion, Augustine said, "The NFL saw the expertise and horsepower we bring to the headwear game."

New Era's licensing agreement with the NFL has certainly been driven by horsepower.  Sales for the Buffalo, NY based company have skyrocketed during the first year of the deal.  According to Augustine, year one of the deal "exceeded the expectations we set out between ourselves and the NFL.  We're excited to finish off officially with what goes on in New Orleans.  We saw positive responses to the products we put out in the market in year one."

New Era's licensing agreement with the NFL means that for the first time in ten years, NFL fans had an opportunity to purchase NFL team hats from a supplier other than Reebok.  Fans certainly took advantage of this opportunity.  The top-selling New Era team hat was the Dallas Cowboys.  Because of the Cowboys' agreement with the NFL, sales numbers remain proprietary information and thus cannot be disclosed.  However, rounding out the top-five teams are the following:

San Francisco 49ers:  159,745 caps

Oakland Raiders:  141,610 caps

Chicago Bears:  98,058 caps

New York Giants:  89,474

Part of New Era's NFL brand success can be attributed to the NFL players it has brought on board as brand ambassadors.  These players include Eric Decker, Lance Briggs and Marcell Dareus.  According to Augustine, in selecting athlete endorsers, New Era "looked for guys that we thought were a mixture of fresh and established faces.  They had to have a true affinity towards the brand."  Decker spoke highly of the brand, noting that its design compliments the lifestyle he tries to live by.  "New Era is fresh and sleek.  The products are great and I am proud to endorse them," Decker said.

New Era grabbed its first year of NFL licensee status by the horns.  Over the next four years, NFL fans can expect the brand to continue perfecting the products it brings to the market.  And if the brand's long-term relationship with MLB is any indicator, the NFL can expect New Era to remain its headwear provider for some time.

Alicia Jessop is a Colorado-based attorney and the founder of the sports law website RulingSports.com.  Follow her @RulingSports and at AliciaJessop.com.