NHSD Proposes New Revenue Sources

The school district looks into a licensing agreement and possible commercial partnerships to enhance revenue.

As many local school districts seek ways to cope with decreased subsidies, the North Hills School District has two new revenue-enhancing proposals under consideration.  

The school board is reviewing a proposed licensing agreement with LRG Prep, LLC of Michigan to distribute and sell North Hills School District-branded merchandise in return for a 50 percent minimum royalty fee paid to the district.

They are also considering a commercial activities policy that would allow them to enter into partnerships with commercial businesses - advertisements, sponsorships, exclusive right contracts, and purchases of goods and services - that would result in payments or benefits to the district.

If approved, the LRG Prep agreement will grant LRG the non-exclusive right to use the district's name, nickname, mascot, logo, designs and graphics on a variety of merchandise such as apparel, accessories, gifts, home and office items, paper, sporting goods and other gifts and novelties.  LRG Prep will not own the marks.

The district can earn an additional 15 percent in royalties if buyers purchase North Hills merchandise from LRG Prep's Rokkitwear online store.  A link to Rokkitwear would be established on the NHSD website if the LRG Prep agreement is approved.

Currently, North Hills-branded merchandise can be purchased at local stores such as Dunham's, but the school district does not receive any money from those sales.  If this agreement is signed, LRG Prep will be able to manufacture and distribute the licensed product to large retailers, sporting goods stores and online retailers through its manufacturers and vendors and the school district will profit from those sales.

The proposed commercial activities policy "recognizes that public schools provide a potential market for appropriate commercial activities," according to the district's website.  It would give the district "the exclusive discretion to determine whether to pursue, accept or decline opportunities to engage in commercial activities."  One example of this would be advertising on the district's website, according to Amanda Hartle, district communications coordinator.

The NHSD board will hold it's next meeting on Monday, September 17, at 7:30 pm in the  Junior High School's LGI room.

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Stephanie Davis September 11, 2012 at 06:03 PM
As long as these companies would not have input into curriculum or grading, etc. This could get somewhat tricky legally unless roles are spelled out well.


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