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DOWNERS GROVE, ILLINOIS (October 17, 2024) – You may be getting questions from your high school customers about the significant increase of the National Federation of State High School Associations (NFHS) Authenticating Mark Program fees that starts January 1, 2025 and the increased prices of ball purchases. Some of your customers may not be aware the increase is coming.
The National Sporting Goods Association (NSGA) has put together this Q&A that will not only help you answer questions but it also reiterates that these price increases are not driven by the team dealers and retailers. NSGA hopes this will help with questions and possible backlash you may receive from school administrators, athletic directors and coaches.
Click here to access the Q&A document. If you have any questions please contact Marty Maciaszek, NSGA Team Dealer Director, at mmaciaszek@nsga.org.
OCTOBER 17, 2024
The National Sporting Goods Association (NSGA) has been informed that the National Federation of State High School Associations (NFHS) is increasing its Authenticating Mark Program (AMP) fee to manufacturers from a minimum royalty rate of 50 cents to a standard royalty rate of 5% for sales of NFHS stamped inflatable balls or for a dozen baseballs, softballs, lacrosse and field hockey balls and pucks. This increase is scheduled to take effect on January 1, 2025.
As team dealers and retailers, you may get questions from your high school athletic directors, administrators and coaches regarding the increased prices of balls purchased with the NFHS AMP stamp. NSGA has produced this document of questions you may receive so you have some of the answers you need to share with your customers.
We want to be clear in the marketplace that these cost increases come directly from NFHS, not our retailer/team dealer network. If you need more information please contact Marty Maciaszek, NSGA Team Dealer Director, at mmaciaszek@nsga.org.
Q: Why have the costs for the balls I am purchasing gone up?
A: NFHS has changed its Authenticating Mark Program from the minimum royalty rate of 50 cents to a standard royalty rate of 5% on wholesale pricing. Unfortunately, the costs for retailers and team dealers to purchase the balls from the manufacturer with the NFHS stamp have increased from this change and the result is an increase in the sale price.
NSGA believes this percentage-based fee resembles a national sales tax on sports equipment, implemented by an organization that is not represented by the people who will pay the “tax.”
Q: What is the new NFHS AMP rate?
A: It is 5% on wholesale purchases for inflatable balls or a dozen smaller non-inflatable balls or hockey pucks with the NFHS stamp.
Q: When does the increase take effect?
A: The NFHS AMP increase goes into effect January 1, 2025. The old NFHS AMP stamp was phased out January 16, 2024 and the new marks have a minimum size of 2½ inches on inflatable balls and 1¼ inches on non-inflatable balls or hockey pucks.
Q: When was this increase approved?
A: The change to the NFHS AMP fee structure was approved by the NFHS Board of Directors on October 9, 2023. NSGA and the sporting goods industry were not made aware of the change until after it occurred.
Q: Can we still use our current inventory of balls with the old NFHS AMP stamp? Do we have to phase them out?
A: You are allowed to use your current inventory of balls with the old NFHS AMP stamp in game competition for as long as you wish. The NFHS did not set a hase-out date so you can use these balls for the length of their useful life.
Q: Can our school still purchase balls with the current NFHS AMP?
A: Yes. Any inventory currently in the system with the current NFHS AMP stamp can be purchased and used in game play. There is no phase-out or drop-dead date for purchases of inventory currently in the system.
Q: Do our teams have to use balls with the new NFHS AMP stamp in practice?
A: No. You can use whatever product you wish for practice. Balls with the NFHS AMP stamp are only required for games.
Q: What is the additional revenue going to be used for by NFHS?
A: NFHS said it plans to use the revenue to help fund education and training programs – including for coaches – so schools and participants will not have to pay for them. NFHS said the change to a standard royalty rate also is more secure from NFHS about where the money is coming from and more in alignment with other programs in the sports industry.
Q: Was a formal announcement (press release) of this change made public by NFHS throughout the country?
A: As of October 16, 2024, NFHS has not made any published comment to schools or state associations that NSGA is aware of. There is nothing on the NFHS website that provides details of the pending AMP changes. The AMP section of the NFHS website, as of October 16, 2024, has no information about the changes that are coming to the program.
NSGA was told by NFHS there has been communication on this issue with some state associations and athletic directors. But as of mid-October 2024, NSGA also continued to hear from member dealers that there are high school athletic directors and state associations unaware this change was occurring.
Q: When was the last increase in the NFHS Authenticating Mark Program?
A: The last increase took effect in 2018 and went from 35 cents to 50 cents per inflatable ball or noninflatable dozen. NFHS initially proposed an increase from 35 cents to $1 and informed NSGA of this proposal in December 2016. That gave NSGA time to talk with its membership and provide a response to NFHS that the increase was excessive. This action by NSGA helped reduce the increase.
In this current instance NSGA had no opportunity to voice its concerns before NFHS made its decision. NSGA did send a letter expressing concerns with the significant increase to NFHS in mid-August but as of mid-October had not received a response.
Q: Why does NFHS require balls/pucks to have an authenticating stamp/logo?
A: NFHS wants to ensure that balls/pucks with the AMP stamp have met quality and safety standards for play.
Q: Who is responsible for enforcing the in-game use of balls/pucks with the NFHS AMP stamp?
A: Game officials are responsible for ensuring the proper legal equipment is being used in high school contests.
Q: Why haven’t I already heard about this from NFHS or my state association?
A: You should contact a staff member at your state association, the NFHS’ Mark Koski at mkoski@nfhs.org or the NFHS office at (317) 972-6900 regarding that question.
Topics
Authenticating Mark High Schools Balls Soccer Field Hockey Ice Hockey Volleyball basketball Football Lacrosse NFHS Softball Baseball NSGA