At my son's highschool, you bought the jacket, the school gave you a letter, and if you lettered in more than one sport they gave you the little embroidered sport thing (like a small football, or crossed lacrosse sticks) that you have sewn onto the big letter. Then all added things like your number, your name, any awards (all district, etc.) any team awards (district champs, regionals, etc.) you bought and had sewn on. All told, throughout the 3 years, that darn letter jacket cost hundreds of dollars. The jacket is around $200 with real leather sleeves, and then each additional chenille patch runs around $20.
My son proudly wore it in highschool, but it is now shoved into the back of his closet, never to see the light of day again. His kids will probably get a kick out of it in the FAR distant future
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