How Much Do Universities Get Paid for Licensed Merch?

How Much Do Universities Get Paid for Licensed Merch?

You know that awesome Michigan State hoodie you’re rocking? Or the decal on the back of your car repping MSU? Well, here’s something most people don’t know, when you buy officially licensed college gear like that, a portion of your money actually goes back to the university. 

Let’s break it down.

Yes, We Have to Pay the Universities

A lot of people are surprised when they hear this, but anytime a business (like ours!) uses a university’s logo, mascot, name, or colors, we have to get a license. And we have to pay for that privilege. That’s because these elements are considered intellectual property (IP). We can’t just print “Michigan State” on a shirt and start selling it. That would be like using someone else’s artwork without permission.

We go through a full approval process and hold official licenses with over 50 schools. Michigan State is obviously our biggest and most-loved partner (Go Green!), but we work with a wide range of universities.

How Much Do the Schools Make?

It depends on the school. Typically, universities receive anywhere from 10% to 18% of the price of every licensed product sold. The bigger and more popular the school, the higher the royalty percentage tends to be. For example, a school like Michigan State, with a massive fanbase and iconic brand, is likely earning a higher royalty.

Smaller schools, on the other hand, may take a lower cut to encourage more licensed products to be made. It’s a balancing act: the school wants to earn revenue, but they also want to make sure their fans have access to fun, high-quality merch.

When Do We Pay Them?

Every quarter, we submit a full royalty report to the universities. That includes details on every single product we sold with their branding. How many, for how much, and how much they’re owed, etc. Then we cut a check.

It’s a lot of paperwork. But it’s worth it to do things the right way and support the schools we love.

Why Does It Matter?

When you buy from a licensed vendor like Nudge Printing, you’re not just getting an awesome hoodie or decal. You’re supporting the university. That royalty money helps fund things like scholarships, student programs, and athletic departments.


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