Posted on Mon, May. 12, 2008

Big payoff -- before the race

Sales good for Equestrian Games merchandise

By Jim Jordan

JJORDAN1@HERALD-LEADER.COM

More than $500,000 worth of Alltech FEI World Equestrian Games T-shirts, caps, pins and coffee cups have been sold through retailers and the Internet in the past year or so.

As Jack Kelly tells audiences around the state, that's "twice as much" as the tally for the entire 2006 games in Aachen, Germany.

Kelly, CEO of the foundation organizing the Lexington games, says the Aachen total hasn't been officially disclosed, but insiders say it was $150,000 to $200,000.

There are "two reasons" for the low European sales, Kelly says. "One is that we have done quite well for early on and the other one is that it was not a priority, or didn't seem to be a priority," for the 2006 games.

Unlike European soccer and cycling fans, European equestrian fans do not generally buy souvenirs and memorabilia at their big events.

"We are more of a merchandise-oriented society," Kelly said of Americans, "but it is a real barometer that we sold this much so far."

The public willingness to spend on an event that is still more than two years away is a welcome indicator of future success to games organizers.

"That much business this far out is very strong," agreed Ben Erps, the games' chief merchandiser. "By the time all is said and done, this program hopefully will be north of $3 million."

The World Games 2010 Foundation makes money on every sale -- a few cents to a few dollars, depending on whether the item is sold retail or wholesale.

Organizers originally expected to make $500,000 from merchandise sales. They knew it was a "conservative" estimate, Kelly said. Such strong sales this early couldn't be predicted.

"You didn't see Kentucky Derby stuff in the stores in January. You don't see World Series stuff now," he said. "All this stuff we move now is just gravy."

The big rush will occur during the 16 days of competition at the Kentucky Horse Park in 2010, when $2 million worth of shirts, caps and cups could be snapped up.

At the current pace, the $2 million mark could be in sight before the games actually begin, Kelly said.

That total does not include the games trade fair, where merchants will have booths and are expected to sell an estimated $8 million worth of generally bigger-ticket items -- collectibles, riding gear, household furnishings, toiletries, jewelry and the like.

Meg Jewett, owner of L.V. Harkness & Co. in Lexington, said her designers are working on a line of collectibles that will be unveiled in 2009 "so people can start collecting" before the games.

Harkness also is the official supplier of trophies and awards for the games. Design work began a year ago on those items, she said, but production probably won't be completed until 2010.

As for items to sell to the public, "we are definitely trying to hit every segment (of the market) we can think of. We are taking what we do every day and applying it to the games," Jewett said.

The average equestrian fan will buy the same kinds of items sold at other large spectator sports, said Erps, the president of All Pro Championships Inc. in Louisville.

"Most of what we sell is stuff that will retail for $20 to $25 -- and that's true for the Super Bowl, Kentucky Derby, World Equestrian Games, the in-field crowd or Millionaires' Row," he said. That's the real foundation of a merchandising program like this."

Caps, T-shirts and lapel pins will lead the list, although All Pro expects to have 350 to 500 items available by the time the games begin, Erps said. Many will be simple color or design variations on caps, T-shirts and other mass-produced items.

Sellers also will introduce new items throughout the games -- on days 6 and 11, for example -- to spur sales, he said.

Other sports events last a day to a week and get one surge of goods, Erps said. The World Equestrian Games is "more like a marathon. You have to throttle back and pace yourself."

Erps and Kelly said advance sales at the recent Rolex Kentucky Three-Day Event and other events allow mechandisers to test designs, colors and other variables to gauge what is popular now and what will be hot in 2010.

They also allow horse groups to see what's available and to begin considering co-branding deals in which the group's logo would appear with the 2010 games logo on T-shirts and other items.

"We don't make a lot of money on individual shirts, but each person who wears one is wearing a billboard for us," Kelly said. "It kind of validates the event."

Added Erps, "We have hardly scratched the surface of what we are going to do.

"This area does so well in supporting special events, whether it's Ryder Cup or PGA championships or Breeder's Cup. It just sets records and support is building for this thing. ... This time in 2010 after the Derby, it will just be crazy. It's all you are going to hear about."

Where to find WEG merchandise

Official merchandise for the Alltech FEI World Equestrian Games is available at Lexington-area gift shops, including the Marriott Griffin Gate Resort, Blue Grass Airport and the Kentucky Horse Park.

Items also can be ordered on the Internet at www.feigames2010.org, www.alltechfeigames.com or allpro2.stores.yahoo.net.