Licence deal to boost RCG's profit

MELBOURNE: The investment company that operates the Athlete's Foot chain of sports shoe shops has paid its US franchise manager A$7.36 million ($9 million) to hold the licence agreement for the next 249 years.

In doing so, Australian company RCG will top up its own bottom line by A$1.2 million a year because it will no longer have to pay royalty fees for the brand.

RCG paid US franchise brand manager NexCen Brands US$6.2 million ($9 million) to restructure its sports shoe licence agreement.

RCG, owner of The Athlete's Foot (TAF) Australia, paid NexCen's subsidiary, TAF Australia, the lump sum in return for a royalty-free exclusive licence for the TAF trademarks in Australia and New Zealand.

- AAP