CNBC's Brennan: Crocs Signs Licensing Deal With NFL And NHL
Crocs , best known for its brightly-colored rubber clogs, signed a three-year licensing deal with the National Football League and the National Hockey League to create shoes featuring the leagues' logos, CNBC's Margaret Brennan reported.
Crocs Chief Executive Officer Ron Snyder said the contract could possibly be extended, but he would not reveal financial details.
The deal represents the company's latest effort to move beyond beyond fad footwear and drill into niche markets.
"We don't use the "f-word" at Crocs!" Snyder told Brennan in an interview.
Some Crocs critics have said the shoe company, based in Niwot, Colo., should be worried that their omnipresent clogs may have already saturated the market. Now, the company is expanding into different product lines using the injection molded product- - to which they own the intellectual property rights -- used in their clogs.
And, with so many product knockoffs on the market, Crocs' exclusive licensing deals are a step toward exclusivity. It also provides more products that aren't tied to a specific season.
Crocs has also signed licensing deals with Disney and some U.S. colleges within the past year. The Crocs college footwear and Disney lines have sold more than 400,000 units per year.
Snyder said a distribution agreement has yet "to be determined," but he expects the NHL and NFL deals to be as successful as their collegiate wear Crocs.
It's estimated that the deals could generate at least $15 million in sales, with about $10 million coming from the NFL and $5 million from the NHL, one source told CNBC's Brennan.
Analysts are optimistic about the launch, which will be timed with the beginning of the Superbowl season.
Crocs, which went public last February, started selling its clogs in November of 2002. It acquired Jibbitz, which makes snap-on accessories for Croc shoes, last year.