The Knicks Bootleg Merchandise Dilemma

Bootleg merchandise is the curse of any self-respecting intellectual property. For sports brands, a large percentage of their income comes from it, with estimates that online sales for NBA merchandise reach over $580 million a year. The last thing a team needs is people using its brand without permission. With one of the biggest illegal merchandise problems in the league, could it actually be a help and not a hindrance?

Sales of Bootleg Merchandise

At June’s Ticker Tape Parade, unlicensed merchandise flooded the streets of NYC. To celebrate the team’s championship, one vendor reported that he had sold 40 hats in under 45 minutes, all landing at prices of between $100 and $150 a go. One vendor reported making over $10,000 in sales. While police did move people on, it seemed like a game of whack-a-mole for the authorities trying to clamp down on it. 

Estimates are that fake merchandise costs the NBA around $250 million a year and supports 750,000 jobs. This is a heavy price to pay, and it takes away revenue vital for teams struggling with rising costs. 

The Legitimate Licensing Route

The New York Knicks are adept at legitimately licensing their brand to many innovative products. One example is slot games, where titles like Super Swish took a 5 x3 reeled slot and replaced the familiar symbols with balls and Knicks-adorned backboards. In a vertical that is growing quickly across the US and the globe, it makes sense for both parties: The Knicks get their image into new domains, while the developers can lend an air of familiarity to their titles. 

This does not mean there is not a market for classic slots. Titles like the Double Bubble slot game are a recent example, using all the classic fruits, bar, and lucky 7 symbols in a clean, up-to-date UX. People who play these games may see a Knicks slot, enjoy it, and move into the franchise. Thus, entering new verticals in this way can increase the fanbase. 

Is Bootleg Merchandise That Bad?

This concept is the same for bootleg merchandise. Those who may be priced out of genuine merchandise can suddenly join the fandom. The culture of #dupe, which describes a fake or counterfeit item, is also huge online and on social media. When even supermarkets copy and ‘dupe’ each other’s goods, a whole generation is growing up accepting it. 

Stevie Johnson, the managing director of influencer marketing agency Disrupt, told the Guardian newspaper that it only really becomes a problem when bigger brands start duping smaller ones. “But as long as the legal implications are adhered to, I don’t see too many dupe downsides.”

These items can also make the real, genuine ones more desirable. While there may be huge online marketplaces for vintage counterfeit Knicks goods, the genuine item will always command a premium. It seems that the Knicks must strike a balance, closing down illegal operations while allowing enough to reap the benefits of the marketing advantages it can bring.