What is a licensing agreement in sports marketing?

• A. A contract granting rights to use IP (logos, marks, likeness) for products and merchandise, typically with royalties.
• B. A contract to broadcast games.
• C. A sponsorship contract with perks.
• D. A contract to rent stadium naming rights.

Answer: (A)

Licensing is the permission to use a team's logos, marks, and player likenesses on products and merchandise. The agreement typically includes royalties paid on sales, plus quality‑control provisions and defined product or geographic scope. This setup lets brands monetize a team's brand by producing and selling licensed goods—like apparel, collectibles, or video games—without transferring ownership of the IP. It’s different from broadcasting rights (which cover televising or streaming games), sponsorships (brand support and activation at events), or naming rights (owning the venue’s name). That combination makes licensing the best description of the concept.