When handing out licenses, MLB plays small ball v8, issue 16, by Dave Andrews

While the NBA, NFL and NHL have contracted with big name Reebok for the main bulk of their licensing, MLB has taking a different route. MLB as decided to look into the smaller domestic production companies that have a specialization in the quick-turn demands that necessary in the licensed apparel market. They believe dividing the channels of distribution is the best way to cover all the bases.

Reebok has its logo on NFL and NHL jerseys; MLB bid out its on-field apparel rights last season to much smaller firms such as New Era and Majestic. New Era continued as the exclusive primary headwear vendor and Majestic grew its jersey rights from half to all MLB teams. Nike ended up with the compression wear as well as limited apparel and cap rights, while Reebok ended up acquiring s smaller footwear license.

A comparison was made between the annual revenue for New Era and Majestic and Nike and Reebok, but it was justified by staying that how MLB was looking for companies who were the best at what they do. This quote from Howard Smith (former Reebok marketer and current point man for MLB licensing) was “Companies like New Era and Majestic are Boston Whalers, zipping around a harbor of giant cruise ships,” … “If Adidas or Reebok doesn’t ship a cap, no one knows it. If New Era isn’t shipping, someone in Derby, N.Y. isn’t eating.”