Officials say an overall decline in apparel sales, mediocre performances by UNC sports teams and other factors contributed to the decrease in revenue.
The Board of Trustees announced Thursday that licensing royalties earned from apparel sales dropped 16 percent for fiscal year 1999-2000.
About two-thirds of apparel and logo royalties are earmarked for financial aid, while one-third of the revenue funds athletic scholarships. "A decline of this size would be significant, though not devastating," wrote Shirley Ort, director of scholarships and financial aid, in an e-mail Friday. "Licensing revenues comprise approximately 2 percent of the financial aid that we offer to students each year."
Ort also wrote that the shortfall would amount to only about $100 per person if spread evenly among all financial aid recipients.
UNC's royalties are negotiated through the Atlanta-based Collegiate Licensing Co., which develops contracts with manufacturers. The manufacturers then pay 8 percent of wholesale profits to the University.
Several factors contributed to the drop in royalty revenue in fiscal year 1999-2000. "Since 1995, there has been an across-the-board decline in apparel sales across the country," said Rut Tufts, director of auxiliary services.
Although the University's royalty revenues dropped, its overall sales rank rose to No. 2, behind the University of Michigan.
Tufts said the performance of UNC's sports teams, such as the failure of the men's basketball team to make the Final Four in 1999, also affects revenues.
"When our sports teams do real well, there is a spike in sales," he said. "In recent years, teams have not been as strong."
