Now that the University of Hawaii athletic department is poised to take control of sales of its logo wear on campus and at Ward Centre, some regents say the department should also move to gain the rights at Aloha Stadium.
On Wednesday, the five- member Board of Regents Committee on Planning and Facilities unanimously recommended approval of the agreements that will allow athletics to begin operations July 1. The entire board takes up the issue Thursday.
Under athletic department control, the outlets would be rebranded as the "H-Zone," replacing the Rainbowtique locations at Ward Centre, Stan Sheriff Center and Waikiki Beach Marriott, which have been operated by UH’s Campus Services. The Waikiki branch will close when its lease expires June 30.
But while athletics will debut a new line of merchandise at expanded operations at the Stan Sheriff Center, Les Murakami Stadium, Rainbow Wahine Softball Stadium, at selected UH road-game sites and online, it does not have the rights at Aloha Stadium, where the football team plays. Centerplate owns the concession and novelty rights there to Jan. 5, 2022, a spokesman for the firm said.
"The athletic department should be given the opportunity to become entrepreneurs in their efforts to find additional sources of income," regent Jeff Portnoy said. "(But) the issue I’m concerned about is there are multiple sources selling the same items, the stadium, the bookstore … and I would hope, at some point, efforts could be made to consolidate the sale of University of Hawaii (logo wear) and related items."
Portnoy said, "I think the issue with the stadium is a bigger issue, as we all know. It seems to me this is a good first step and I hope it doesn’t stop with this."
Athletic director Ben Jay said, "Right now our job is just to get this store (Ward Centre) going."
Jay has projected a $500,000 profit from his department’s first year of operation at Ward Centre.
According to terms of the pending three-year term sheet, UH would operate a 1,465-square-foot store at Ward Centre, compared with the 665-square-foot Rainbowtique and will pay $5.14 per square foot the first year compared to the $6.77 the Rainbowtique was charged this year. In addition, the rent will be waived for May and June as UH readies the new store for the July 1 opening.
As part of the deal, the Howard Hughes Corp., owner of Ward Centre, will become a platinum level ($100,000 and above) UH athletic sponsor.
Athletics said it will not take on any of the former Rainbowtique merchandise inventory and will begin with its own new and expanded lines, mainly featuring Under Armour items spread across several teams. Under Armour is its contracted outfitter for several sports.
Associate athletic director John McNamara said the line "will hit various price points, not just the high end. We’re sensitive to the fact our fans want a range of items and prices."
McNamara, who will oversee the "H-Zone" operations, was responsible for licensing and merchandising with the Mid-American Conference, Western Athletic Conference, and Conference USA before coming to UH. He has been the athletic department’s liaison with the UH Licensing Office and Rainbowtique.