| | The Daily Insider
Afternoon News & Headlines
Thursday, January 27, 2005
4:00pm ET | |
| |
| • | CSTV Acquires Exclusive Video Streaming Rights For NCAA Hoops Tourney |
| • | Michael Phelps, Amanda Beard Starring In Speedo Campaign For Axcelerate |
| • | The Hockey Company Pushes Reebok To 70% Increase In Q4 ’04 Profits |
| • | NASCAR Realignment, Increased TV Rights Fees Help Fill ISC’s Coffers |
| • | US Biathlon Relocating HQs Under Title Sponsorship Deal With Banknorth |
| • | Buzzer Beaters/Tonight’s Events/Channel Surfing/In Other News/The Daily Stat |
CSTV ACQUIRES EXCLUSIVE WEBCAST RIGHTS TO NCAA HOOPS TOURNEY
CSTV today signed a multiyear deal with CBS SportsLine.com for the exclusive video streaming rights for out-of-market game coverage of the NCAA Men’s Basketball Tournament, beginning with this year’s tourney. The CSTV.com service, “NCAA March Madness on Demand,” will begin March 17, and in addition to games, will feature interviews, press conferences and highlights. Webcasts of games broadcast by CBS in local markets will be subject to blackouts. Subscriptions cost $19.95.
CBS Sports President Sean McManus today said of the deal, "With the aggressive promotion of CBS, CBS SportsLine, the NCAA and CSTV, I think we’re going to get the message out there like it’s never been delivered before in front of people to be able to experience the tournament in a totally new way. ... I would look at this as a great collaboration between CBS, CBSSportsline, the NCAA and CSTV for a pretty exciting new way to further expose the men’s basketball championship to fans across the country” (THE DAILY).
MICHAEL PHELPS AND AMANDA BEARD STARRING IN NEW SPEEDO CAMPAIGN
Speedo today announced that it will launch a new ad campaign featuring U.S. Olympic Gold Medalists Michael Phelps and Amanda Beard in the March issues of Shape and Self magazines. Speedo also will run ads in regional publications Gotham, Los Angeles, Ocean Drive (Miami), San Diego, L.A. Confidential, Aspen Peak and Chicago. The ads will promote Speedo’s Axcelerate activewear line (THE DAILY).
THE HOCKEY COMPANY PUSHES REEBOK TO 70% INCREASE IN Q4 PROFITS
Buoyed by a one-time income tax benefit of $12M, Reebok today reported a 69.8% increase in Q4 ’04 net income, which totaled $47.7M, up from $28.1M in Q4 ’03. Excluding the one-time benefit, income for the quarter was up roughly 25%. Sales for the quarter jumped 15.6%, from $843.6M to $975.1M, aided by almost $60M in sales for Reebok’s newest brand, The Hockey Company.
For the Reebok brand, sales increased 18% to $817M in Q4, while sales of the company’s other brands – Rockport, the Greg Norman Collection and Ralph Lauren Footwear – jumped 6%, from $149M to $158M.
Full-year profits rose 23% to $192.4M, compared to $157.3M in ’03. Net sales for ’04 totaled $3.8B, an 8.6% increase over $3.5B in sales in ’03. The Reebok brand contributed $3.2B to ’04 sales, a 10% climb from its ’03 sales total.
As of presstime, Reebok’s shares were up 6.4%, from $41.60 to $44.25 (THE DAILY).
NASCAR REALIGNMENT, INCREASED TV RIGHTS FEES FILL ISC COFFERS
NASCAR’s schedule realignment, the timing of Nextel Cup races and the acquisition of Martinsville Speedway led to a 71.2% increase in Q4 ’04 profits for ISC, which today reported net income $54.4M for the quarter, compared to $31.6M in the same frame a year earlier. Revenues for the quarter were $231.3M, a 52.1% increase over $152.1M in Q4 ’03. Aided in part by a 21% increase in TV rights fees and higher sponsor contributions, net income for the year ended November 30 increased 48.2%, from $105.4M to $156.3M, while revenue climbed 18%, from $549.1M to $647.8M (ISC).
HORNETS AND MSG TODAY WELCOME NEW MARKETING EXECUTIVES
The Hornets today named branding veteran Tim McDougall CMO, effective in February. McDougall, who currently serves as Rockets VP/Marketing, will oversee marketing, branding, advertising, ticket sales, convention sales, creative services, promotions, special events, research, fan relations and broadcasting. Prior to his stint with the Rockets, McDougall was Miller Lite Senior Brand Manager (Hornets).
MSG today named John Lappas VP/Marketing Partnerships. Lappas will oversee the selling of media time on MSG Network and FSNY, promotions and signage related to the Knicks, Rangers and Liberty, as well as entertainment events at MSG and Radio City Music Hall. Lappas most recently served as ESPN Regional TV Dir of Sales (MSG).
U.S. BIATHLON ASSOC. MOVING HQS UNDER TITLE SPONSORSHIP DEAL
The U.S. Biathlon Association announced that it will move its headquarters from Colchester, Vermont, to Portland, Maine, as part of a multiyear title sponsorship agreement with Portland-based Banknorth. The deal also makes Banknorth the title sponsor of the Biathlon World Cup series, which is televised by OLN (U.S. Biathlon).
BUZZER BEATERS
Nets President & CEO Brett Yormark said that the team is “seeking an ad agency to ‘re-image’” the franchise, which currently works “with several regional shops on a project basis.” This review “would establish a retainer relationship with one primary agency” (ADWEEK.com, 1/26).
The Nuggets today named ESPN NBA analyst George Karl head coach (Nuggets).
Nintendo today announced that Red Sox 1B David Ortiz will be the cover athlete for its “Pennant Chase Baseball” video game, which hits retail on April 4 (Nintendo).
The new Rose Garden managers “are increasing their full-time staff by 50[%] to help sell luxury suites, season tickets and advertising for the 9-year-old arena, which has suffered a loss of premium customers in recent years” (Portland OREGONIAN, 1/27).
The Int’l Association of Assembly Managers has chosen Ft. Lauderdale to host its 2012 convention from July 17-25 (THE DAILY).
MSD Ignition today inked a sponsorship deal with Boundless Motor Sports for the World of Outlaws Sprint Series and World of Outlaws Late Model Series (Boundless).
NOW HEAR THIS
If you missed today’s issue of The Daily, here are some notable quotes and links to the story from which they came:
- GlaxoSmithKline’s Nicorette has signed a three-year sponsorship deal with NASCAR, and GSK Consumer Healthcare Senior Manager of Promotional Activities Steve Kapur said of the deal, “This is a great audience for us” (USA TODAY, 1/27). Full coverage of the story.
- The NHL lockout hit day 134 today, and Senators G Dominik Hasek said of the union’s solidarity, “It’s the arrogance of the league which got us so unified” (VANCOUVER SUN, 1/27). Full coverage of the story.
- After stadium talks between NFL Giants and New Jersey execs hit a wall yesterday, Giants Exec VP & COO John Mara said, “I’m not sure we’re making progress. If anything we might be going backwards” (Newark STAR-LEDGER, 1/27). Full coverage of the story.
TODAY’S ARTICLES OF INTEREST
The ORANGE COUNTY REGISTER’s Tiffany Montgomery writes, “Authentic skatebrands such as Etnies, Element, Globe and DC Shoes are producing increasingly feminine fashions in a bid to capture a slice of the lucrative teenage girl market. … The opportunity is big. Last year, 13- to 17-year-old girls spent $12.3[B] on clothes and accessories, $1.4[B] on fashion footwear, and $683[M] on athletic footwear, according to The NPD Group, a marketing information company. Grabbing a slice of that business could boost revenues in the $8.3[B] skateboard industry, which is largely centered in Orange County and elsewhere in Southern California” (ORANGE COUNTY REGISTER).
See The Daily Insider’s Articles of Interest section for more sports business-related links.
TONIGHT'S EVENTS
The Tufts Univ. School of Medicine and the New England Medical Center will host their second annual Rising Stars Gala at the State Room in Boston. Celtics G
Paul Pierce and former Bruin
Cam Neely will participate in the event that awards young athletes and one sports journalist.
CHANNEL SURFING
ESPN will air NCAA basketball: Michigan-Michigan State at 7:00pm ET.
ESPN2 will air NCAA basketball: Cincinnati-South Florida at 7:00pm ET and DePaul-Memphis at 9:00pm.
TNT will air Pistons-Pacers at 7:00pm ET and Kings-Spurs at 9:30pm.
The Golf Channel will air coverage of the ’05 PGA Merchandise Show at 9:00pm ET.
FSN will air NCAA basketball: Oregon-California at 10:30pm ET.
ESPN2 will air coverage of the Australian Open at 11:30pm ET, and at 3:30am ET will air live coverage of the Lleyton Hewitt-Andy Roddick men's semifinal match.
Lakers F Caron Butler will appear on NBC’s “Tonight Show” at 11:35pm ET.
Eagles QB Donovan McNabb, Bears LB Brian Urlacher and Magic G Steve Francis will appear on “BDSSP.”
HEADLINERS
Here are tonight’s headline guests on the following talk shows:
| “Late Show” | Bill Murray (r) |
| “The Tonight Show” | Caron Butler |
| “The Late Late Show” | Ice Cube |
| “Late Night” | Matthew Broderick (r) |
| “Jimmy Kimmel Live” | Heidi Klum (r) |
IN OTHER NEWS…
The N.Y. POST reports that R&B star Beyonce Knowles has signed a licensing agreement with Tarrant Apparel Group to produce a line of apparel for young women under the House of Dereon label. The line is expected to hit retail this holiday season (N.Y. POST, 1/27).
THE DAILY STAT: OSCAR VIEWERSHIP & BOX OFFICE TOTALS
The following details viewership of past Academy Awards broadcasts and the box office totals for the five pictures nominated for best film in the corresponding years (THE DAILY):
| YEAR | VIEWERS | BOX OFFICE | BEST PICTURE WINNER |
| 1998 | 55,300,000 | $997,219,139 | “Titanic” |
| 1999 | 45,600,000 | $440,357,813 | “Shakespeare In Love” |
| 2000 | 46,300,000 | $646,862,654 | “American Beauty” |
| 2001 | 42,900,000 | $636,704,595 | “Gladiator” |
| 2002 | 41,800,000 | $620,090,013 | “A Beautiful Mind” |
| 2003 | 33,000,000 | $662,960,193 | “Chicago” |
| 2004 | 43,500,000 | $725,794,278 | “Lord Of The Rings: Return Of The King” |
If you have any questions, comments or suggestions, please let us know at:
dailyinsider@sportsbusinessdaily.com
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