Rise and expansion Starter was founded in
New Haven, Connecticut by David Beckerman, a
University of New Haven alumnus, to manufacture team uniforms for high school athletic programs. In 1976, the company entered into non-exclusive licensing agreements with a number of professional sports leagues, paying royalties of 8–10% for the right to manufacture and market copies of professional athletic apparel. Its first retail product was a line of jackets emblazoned with the insignias of Major League Baseball teams. Soon the company expanded its licensed apparel line to include headgear, activewear and accessories. By 1983, the company had entered licensing agreements with the
NBA, the
NFL, the
NHL and the Canadian Football League (
CFL). But the company's growth during this decade can also be attributed to an aggressive marketing strategy. Not only had the company made licensed sports apparel a fashion status symbol, it also created brand loyalty by making its "S and Star" logo a prominent part of the apparel's design. Starter innovatively placed its embroidered logo on jacket sleeves and on the back of baseball caps. breakaway jacket Starter won a contract to create the
parkas that coaches wore on NFL sidelines. For the retail market, Starter designed the "breakaway jacket", a pullover
jacket that closely resembled the coach's parka. Sales in 1989 were $58.9 million. By 1990, they had more than doubled to $124.6 million. In the early 1990s, Starter began to expand its distribution networks to reach over 25 countries in North America, Europe, and the Pacific Rim. The baseball jackets gave way to a hooded design with a side zipper, and eventually to a padded half-zip pullover. Starter apparel also expanded beyond sports clubs into styles such as plaid. A famous ad campaign featured Hip-Hop stars such as
DJ Jazzy Jeff. Within two years, Starter's net sales nearly doubled to $356 million. The company went public on the New York Stock Exchange in April 1993, earning an estimated $98 million. Proceeds from the initial public offering were used to expand sales to Europe and the Pacific Rim and also to launch "Brand Starter", the company's own sportswear line minus team logos. Capitalizing on the high recognizability of its name, Starter went head-to-head against brands such as
Champion and
Russell. Starter's competition in the licensed sports apparel business intensified in 1994 when Logo 7 Inc., the 2nd. licensed sports apparel manufacturer, won a much coveted NFL Pro Line license and beefed up its advertising budget in an attempt to knock Starter from its number one position. Overall, the boom in the licensed sports apparel market began to slacken in early 1994, slowing from an average of 38 percent annual growth to 15 percent annual growth. Starter moved into new markets with its licensed sports apparel, focusing on sales to young children and youth, and signed a new contract to manufacture the center ice jersey for the National Hockey League. The company purchased a retail chain, First Pick Stores, for $5 million of new stock in March 1994, and also established a Hong Kong office to better coordinate relations with manufacturers. Beckerman stepped down as president, although he retained the posts of chairman and chief executive. John Tucker, former president and chief executive of a sporting goods and sportswear concern, assumed the position of president. As part of an M&A transaction, Starter acquired all shares of the screen-printing company Galt Sand Co. in 1996 for a total value of $26 million. No contribution to earnings was projected for the current year, but one was anticipated for the following fiscal year, 1997.
Decline and restructuring Although Starter began 1994 with a 23-percent increase over the first quarter 1993, it suffered a loss of $2.2 million in the second quarter. Second quarter 1994 sales were flat: $57.8 million, slightly lower than second quarter sales from 1992. Starter had predicted the loss, which it blamed on late deliveries from vendors, shipping delays to retailers, additional advertising and personnel costs, as well as start-up and contractor costs for a new Memphis distribution facility. 1997 saw Starter become one of three suppliers (along with
Champion and then-rival
Nike) of uniforms for the NBA, most notably the
New York Knicks and
Charlotte Hornets. When the original company declined financially, their accounts went to
Puma. In 2000, when 29 other MLB teams switched to the MLB Authentic Collection, the
New York Yankees were the last team to wear Starter jackets. Starter filed for bankruptcy and the Starter name was purchased in 1999 by Official Starter Properties and Official Starter. These holding companies were in turn purchased by Nike on August 12, 2004, for about $43 million.
2000–present Starter partnered with
Walmart during the late 2000s/early 2010s. On November 15, 2007,
Iconix Brand Group bought the Starter brand from
Nike, Inc. Starter provided equipment to all teams until the league folded in April 2019. In November 2019, the company announced an agreement with
Coca-Cola to produce and commercialise apparel with the logo and image of the brand. == Former sponsorships==