Define 'merchandising' in relation to sports.

Merchandising in the context of sports specifically refers to the selling of licensed products and apparel that are associated with teams or athletes. This encompasses a wide array of items, including jerseys, hats, and other branded merchandise that fans purchase to show their support for their favorite teams or players.

The significance of merchandising lies in its ability to generate revenue for sports organizations, as well as to enhance fan engagement and loyalty. By offering products that fans can wear and display, teams not only create a tangible connection with their supporters but also expand their brand presence in the marketplace. This practice is not just about sales figures; it also helps to build a community around a team or athlete, promoting a shared identity among fans.

In contrast, the other options relate to different aspects of sports management. Developing promotional content for sports events focuses on marketing strategies, negotiating broadcast rights is about getting media coverage for games, and creating fan loyalty programs is a method to retain and reward fans but does not directly involve the merchandising aspect. Each of these functions plays an important role in the overall business of sports but does not directly define merchandising.