The Breeders’ Cup decision to come to Keeneland for the first time this fall is an opportunity for the city to shine — and for some savvy businesspeople to tap into the event’s grandeur and crowd base.
When Mike and Letha Drury saw the June 2014 announcement that the Breeders’ Cup horse races were coming to Keeneland, they decided to create something special to sell to racing fans: A luxurious, screen printed, silk scarf bearing art that embodies the event, Keeneland and horse racing in general.
The Drurys, owners of Lexington’s South Hill Gallery, knew they needed licensing approval from the Breeders’ Cup organization to do it. The prestigious Breeders’ Cup races have been called “the richest event in racing.”
The organization, Letha Drury said, “is truly a class act, so we had to come up with something memorable and that meets their high standards to have a chance at getting it approved.”
With a year to make it happen, the Drurys got to work on the designs as well as working through the licensing hurdles.
One benefit they had was previous experience: They also had produced a scarf for the World Equestrian Games in 2010. It featured original art but no logos or images needing approval.
“We had 18 months, and we just squeaked under the wire without getting anyone’s approval. If someone’s project is anything like ours – starting from scratch with all original material and needing approvals – I suggest they allow two years just to be safe. ... There are several things that made this project easier for us,” she said. “First, our previous experience with the 2010 scarf. We had a relationship with the Breeders’ Cup from some other items they ordered from us, and that also gave us a prior relationship with their licensing agency, All Pro Championships in Louisville. Most importantly, we have a great relationship with the company that makes the scarves. Even with all those things in our favor, a year was almost not enough.”
Robert Elliston, executive vice president and chief operating officer of Breeders’ Cup, praised the Drurys, saying they matched their product to their target market well.
“First, you have to do your homework and make sure there is a demand for your product,” Elliston said. “They looked at what things traditionally work well at Keeneland and found their niche. While the scarf might not do as well in Los Angeles, it is perfect for here. The rules for marketing and selling an item to an organization are much the same as starting a business: Know your market.”
Larger organizations usually have someone to handle licensing requests. The University of Kentucky’s Nathan Schwake, assistant athletic director of marketing and licensing, handles the athletic department’s requests. His advice was similar to Elliston’s.
“[People start the process] not understanding the path it takes and which way to go, and then get far down an infringement path after not taking the proper steps in the beginning,” Schwake said.
Getting approval can take eight weeks or longer. In addition to a product and design, a marketing plan, pre-orders and other documentation is often required.
“To be successful, you must ask how are you going to be different than what’s out there, and how would the organization ... see you and your product as a way to grow their brand,” said Schwake.
After deciding to work on another scarf, the Drurys worked with their Minnesota vendor’s artist, who knew almost nothing about the equine industry, Keeneland in the fall, or the Breeders’ Cup. To orient her, the Drurys forwarded videos, articles, race programs and pictures of iconic features, like Keeneland’s gatepost.
“I wanted them all to see the opulence of the farms, and the regal-ness of the Breeders’ Cup – we said to think of it as the Super Bowl of horse racing.”
After months of drafts, they got one they loved. The result: A scarf that has overwhelming approval and that some are framing and putting on their wall as art.
Next is selling the product, and the Drury’s are using multiple channels including online sales through their website, and those of the Breeders’ Cup and Keeneland. It is currently in Keeneland’s gift shop, where it will be sold during the event.
“We were delighted by the cooperation we got from Keeneland,” Letha Drury said. “We also found the licensing agency quite helpful as they knew what others like us had done.”
Elliston said the financial terms involved vary.
“It’s usually a share of the revenue, but sometimes we pay for the product, market it ourselves and take all the risk, but there is nothing typical about it,” he said. “When you get into unique products like, for instance, the scarf or crystal, we do them on a case-by-case basis — whatever we believe to be a good risk profile and a mutually beneficial arrangement between us and the artist.”