Why MGoBlueShop?

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Why purchase your "M" products from the MGoBlueShop?
By purchasing from the MGoBlueShop, you are directly supporting the athletic department as proceeds from each sale go to the athletic department for its operating needs.

Royalty revenues from these licensing endeavors help support our 25 sports teams. The revenues fund athletic department infrastructure, pay for long-term capital projects and contribute to U-M's academic programs.

Only approximately 40% of Athletic Department revenue comes from the sale of football tickets and the department is financially dependent on other revenue streams, such as licensing and royalty contracts.

What does it mean when you have an "official retail store"?
University athletic departments either establish an internally-operated retail operation or partner with an organization to provide an official retail store for the athletic department. Michigan has elected to outsource the official retail store, where we are able to secure additional royalty income while minimizing the risks associated with operating a retail store.

Am I supporting the athletic department when I purchase "M" products from other retail stores?
Any licensed product carrying the "official licensed product" seal does generate licensing royalties for the University (typically about 5% of the retail price). However, when you purchase your "M" products from MGoBlueShop, the total royalty income to the University is usually five times that (typically about 25% of the retail price).

Why did the Athletic Department recently change its "official retail store"?
As stewards of a valuable public resource, U-M has a fiduciary responsibility to negotiate the best terms and conditions possible. The previous contract had not been put up for review in 10 years.

Competing bids were solicited and analyzed from other vendors as part of a regular process when partnership contracts expire. The request for proposals resulted in a number of interested parties, both local and national. All of the bids were competitive and offered higher royalty rates and guarantee than the existing official retail contract.

Ultimately, we selected eSports Partners, our partner in the MGoBlueShop retail operation, to be our new vendor handling game day concessions, and the new official Athletic Department Internet e-commerce and catalog provider. The University selected eSports Partners based on its experience with partner branding, customer satisfaction and long-term financial potential. We believe we selected a partner that has the ability to grow the MGoBlueShop merchandise brand locally, nationally, and internationally.

What will MGoBlueShop offer to fans?
We expect our new partner to demonstrate exceptional customer service and emphasize quality product selection. Our partner in the MGoBlueShop venture is eSports Partners. eSports has delivered superior results with their other partners with a dedicated call center, broad lines of championship apparel to celebrate team accomplishments, customized jerseys, an easily navigable Web site and virtual catalog technology. eSports, a merchandise partner for 7 of the top 10 NFL franchises, as well as a number of NCAA Athletic Departments, has the best-in-class solutions for e-commerce, catalogs, events and retail.

eSports has committed to invest in the region by building new stores in Ann Arbor and in the state of Michigan and to improve and expand game-day concession areas.

What differences should I look for on game days?
MGoBlueShop is making major investments in the game day operation to enhance customer service and product selection. In the south end of the stadium, a new store will be open that significantly expands the available space for apparel and souvenir sales. New stadium locations are also available between sections 15-16 (where the MGoBlueShop women's store will be) and sections 29-30 (where the MGoBlueShop's customized jersey operation will be located).

MGoBlueShop locations will be available outside the stadium gates as well, such as the opposite corner of Gate 3 (Stadium Blvd and Main Street) in the Pioneer High School parking area, and a few locations in the Blue (Michigan Stadium/Crisler Arena) parking lot.

Remember to look for the "official" retail operations that are clearly marked "MGoBlueShop", as there will be several other vendors selling Michigan products on other property.

Why didn't the Athletic Department select a local company, particularly in these tough economic times?
The financial differences of the eSports bid (and other competing bids) and local retail bids were too large to ignore. We anticipate generating twice the royalty revenue as we did under our prior official partner agreement.

Local retailers will continue to sell U-M licensed items and operate their stores, e-commerce, and catalog operations as they have in the past. MGoBlueShop will bring new outlets for fans to shop and enhance the presence of "M" products.

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