This past Sunday, Los Angeles celebrated basketball legend Pat Riley with the unveiling of a statue honoring his remarkable contributions to the Los Angeles Lakers. Standing outside the arena in a signature Armani suit, with his fist raised in triumph, the statue commemorates an era that defines Lakers history. But beyond the accolades and championships, Riley’s legacy also highlights one of the smartest financial maneuvers in sports: owning the trademark for the phrase “three-peat.”
The Legacy of Pat Riley
Pat Riley’s legacy in basketball is secure. His journey in the sport began as a player with the 1972 Lakers, where he clinched an NBA championship, followed by five more titles as a head coach. Two of those victories came back-to-back in 1987 and 1988. Entering the 1989 season, Riley’s player Byron Scott introduced the now-iconic term “three-peat” to motivate their teammates, quickly becoming a unifying chant among Lakers fans across Los Angeles.
The prospect of a three-peat seemed imminent when the Lakers, spearheaded by league MVP Magic Johnson, swept through the playoffs, taking down Portland, Seattle, and Phoenix before facing the Detroit Pistons in the finals. However, the Pistons dashed their hopes, sweeping the Lakers in four games. For Riley, though, a silver lining emerged from this setback.
Inspired by Scott’s use of “three-peat,” Riley made a forward-thinking business move. In November 1988, he filed an application to trademark the term through his business entity, “Riles & Co.” The application was approved a few months later, granting him trademark #1552980. This meant any commercial use of the phrase would require a licensing royalty payment to Riley.
Profiting from a Dynasty
The financial benefits of Riley’s trademark primarily came from other teams. The Chicago Bulls triumphed with three consecutive championships from 1991 to 1993, and again from 1996 to 1998. Merchandise producers seeking to print “three-peat” on their products had to pay for a license, benefiting Riley significantly.
In 1993, “Riles & Co.” generated approximately $300,000 in royalties. By 1998, that figure nearly doubled to an estimated $600,000.
Interestingly, Riley was not coaching during either of the Bulls’ championship runs, yet he still profited from them. The Lakers subsequently achieved their own three-peat from 2000 to 2002 under Phil Jackson, further increasing Riley’s licensing revenue.
Over the years, “Riles & Co.” has continuously earned royalties whenever any team—professional or collegiate—attempts to monetize a three-championship streak. While the exact total of these earnings has not been publicly disclosed, conservative estimates suggest the trademark has amassed well over $1 million, possibly reaching several million, from various sports franchises over different eras.
Protecting the Trademark
Riley’s shrewdness extended beyond securing the initial trademark; he actively protected and expanded it. “Riles & Co.” acquired additional marks, including variations such as “3 Peat,” and successfully challenged attempts to register similar phrases. One notable case involved a group aiming to trademark “Three-Pete” in reference to former USC football coach Pete Carroll and potential national title runs. Riley’s legal team argued the variance was too similar, leading to the rejection of the application.
While there have been occasional legal disputes asserting that “three-peat” has become generic and unenforceable in sports terminology, the U.S. Patent and Trademark Office has upheld its validity. This ensures that Riley continues to benefit financially from this enduring phrase.
John is a seasoned journalist at The Bothside News, specializing in balanced reporting across news, sports, business, and lifestyle. He believes in presenting multiple perspectives to help readers form informed opinions. His work embodies the publication’s philosophy that truth emerges from examining all sides of every story.
