District fails to profit from stores' spirit sales

Published October 14, 2008

By Patrick E. Litowitz
New Castle News

Each Red Hurricane win infuses spirit into New Castle’s football faithful.

While the team profits from every victory, the district receives next to nothing in school merchandising fees.

Unlike college and universities in addition to professional sports teams, school districts traditionally do not apply for trademark protection. The trademark permits its owner to negotiate a fee for its logo’s use.

For example, Pittsburgh Steelers merchandise costs more than Mahoning Valley Scrappers items. That results from the fan base and the team’s popularity, which allows the Steelers to charge a higher trademark fee.

A business selling Red Hurricane T-shirts, hats, sweatshirts or related articles does not require nor asks the district for its approval.

National chains, such as Wal-Mart, Walgreens and Rite Aid, market products promoting school spirit. The Wal-Mart in Union Square Plaza caters to New Castle and Union Township. At the Walgreens in Poland, Ohio, shoppers find sports gear for the Poland Bulldogs and Struthers Wildcats. The Rite Aid on South Jefferson Street features Red Hurricane items.

“We do it to try to help out the community and get them outfitted for schools,” said Lisa Dolecki, Wal-Mart’s fashion merchandiser for northwestern Pennsylvania.

Joseph Ambrosini, the city schools’ business administrator, confirmed that the district does not hold trademark rights. With a schoolwide dress policy in place, he said the administration sought apparel that complied with the school policy. To get more vendors involved, New Castle logos were offered without trademark considerations.

“We asked them to carry our dress apparel so that parents had an option,” Ambrosini said. “We weren’t saying that you just go to one store.

“That wasn’t our goal: to make money.”

Ten vendors, including Wal-Mart, were originally asked to take part.

While Wal-Mart doesn’t compensate the district, the company does offer grants for educational and nonprofit ventures. New Castle does not pursue those funds, but affiliated groups do.

“They actually want to help booster clubs and school organizations,” Ambrosini said. “They do want to make sure it’s something you’re doing with the school.”

One company, Ohiopyle Prints, guarantees a percentage of its wholesale price to school districts. The Fayette County-based screen printing and embroidery business donates 7 percent of its sales.

Ohiopyle Prints’ product line involves souvenirs, such as those found at state parks, museum and tourists attractions. Local businesses contracted the firm to create New Castle and Union keepsakes, such as hats, T-shirts and Teddy bears.

Steve Shidel, Ohiopyle’s director of sales and customer service, credited owner Fred Wright with the concept.

Over the course of a year, New Castle will receive $160.

“We wish it was bigger,” Shidel said. “The more that’s sold, the more that goes to the school.”

There’s another location to pick up Red Hurricane gear: Canes Corner, located in the senior high school.

Juniors and seniors who attend the school’s marketing management course operate the facility.

“In the school store, there is mark-up cost,” Ambrosini said. “Those funds are used for school activities.”