SBD/3/Sponsorships Advertising Marketing

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  • CORPORATE REPORT: PEPSI REPORTS GROWTH; MILLER'S AD AGENCIES

         PEPSI:  According to Pepsi-Cola, the company posted its best
    volume growth since '88. Total company U.S. case sales jumped
    6.2% in '94.  Pepsi says its carbonated soft drink sales
    increased 4.4%, compared to 3.5% for the overall soft drink
    industry.  The company also notes that All-Sport became the
    second best-selling sports beverage and credits that to its
    partnership with the NCAA and its national ad campaign that
    features Shaquille O'Neal (Pepsi).
         MILLER:  For the second time this week, Miller Brewing has
    made changes in its ad agency roster.  Dean Scaros, CEO at Acaros
    & Casselman Advertising said his agency has been hired by Miller
    to handle several new-product assignments for which the total
    billings were not disclosed.  Miller spokesperson Susan Henderson
    said Scaros & Casselman would work on projects like Citro, a beer
    with a slight lime flavor that was introduced in May (N.Y. TIMES,
    2/3).
         SPORTS AUTHORITY:  The Sports Authority announced January
    '95 sales of $59M, up 46.6% from its January, '94 sales of
    $40.2M.  Store sales were up 14.9%.  TSA, which has 107 stores in
    22 states, expanded by 27 stores last year (The Sports
    Authority).
    

    Print | Tags: NCAA, PepsiCo, The Sports Authority
  • ESPN2 MERCHANDISE COMING TO A STORE NEAR YOU

         ESPN and CS Crable Sportswear Inc. have agreed to jointly
    produce and market a line of ESPN2 clothing.  The clothing will
    feature the extreme sports carried on the network and include t-
    shirts, sweatshirts and henleys (long sleeve t-shirt).  The new
    line will be available by mid-March in department stores,
    national retail chains and specialty goods stores nationwide.
    ESPN Enterprises Dir Sharyn Taymor:  "We're excited to be working
    with CS Crable, given the success they've had in the sportswear
    business.  Their designs are hip, young and really fun.  We're
    confident this line of sportswear will appeal to our young,
    active ESPN2 audience" (ESPN).
         OTHER ESPN NOTES:  ESPN has reached a multi-year deal with
    the ATP Tour in which ESPN, ESPN2 and ESPN Int'l will provide
    extensive domestic and int'l coverage of the ATP Tour
    Championship Series and the official year-end championships
    (ESPN).
    

    Print | Tags: ATP, ESPN, Walt Disney
  • FINANCIAL WORLD'S 1ST ANNUAL REPORT ON THE SPORTS INDUSTRY

         For the first time, FINANCIAL WORLD dedicated an entire
    issue to the state of the sports industry.  The annual FW issue
    on the franchise values is due out in May.  In this issue, FW
    attempts "to explain exactly how the industry has changed and
    what is behind that change."  Some of the industry segments
    examined: Labor, Hockey, Arena Football, Boxing, Tennis, Golf,
    Sailing, Soccer, Horse Racing, Gambling, Satellite TV, Fan
    Demographics, Stadiums, Auto Racing, Pro Wrestling and College
    Sports.  Excerpts follow:
         INDUSTRY EVALUATION:  In the opening piece, Michael Ozanian
    examines "sports as software" -- the growing trend to use sports
    as a way to build revenues indirectly, through cable TV,
    merchandise, advertising, etc.  This trend explains why franchise
    values "have soared during the past few years even though profits
    have fallen."  Ozanian writes, "Sports is not simply another big
    business.  It is one of the fastest-growing industries in the
    U.S., and it is intertwined with virtually every aspect of the
    economy -- from media and apparel to food and advertising."  Some
    stats:   TV rights fees for the four major sports more than
    doubled to $1.5B in '93 from $704M in '88 -- an annualized rate
    of 17%.  The annualized rate of nominal GDP growth over the same
    period: 5.3%. Spending by U.S. & Canadian companies to sponsor
    events increased 15%/year to $2.4B in '93 from $1.2B in '88.
    Retail sales of licensed merchandise for the four major sports
    hit $8.7B in '93, versus $2B in '88.
         LABOR:  In a piece headlined "Adam Smith faces off against
    Karl Marx," Ozanian and Stephen Taub explain how the owners of
    major sports teams and their players "shuffle between capitalism
    and Communism as a matter of convenience.  The result:  strikes,
    lockouts and angry fans."  Their suggestions for sports' labor
    problems:  let all players become free agents as soon as their
    contracts end; no salary cap but also no set minimum salaries, no
    salary arbitration, no player drafts and allow franchises to
    move.
         HOCKEY:  In an examination of the NHL's finances, Stephen
    Taub explains how the growth of players' salaries has slowed each
    year since '91 while the league  "revenues are about to explode.
    So what's the problem?"  Taub notes that potentially before the
    year 2000, 11 new arenas will open increasing each of those
    team's revenue streams. "If the league had just made the
    emotionally difficult decision to permit the weakest links to
    move their franchises, the sport would have been in very solid
    shape to make serious money and build its value as we head into
    the next century."  In a separate piece, Jason Starr examines the
    Sharks' marketing success, including a pending movie project.
         DEMOGRAPHICS:  Targeting the female audience is the focus of
    this piece by Brooke Grabarek.  Noting the advent of more figure
    skating on TV, Grabarek concludes: "Given the favorable trend of
    female viewership and strong advertising support, it's a sure bet
    that there will continue to be greater diversity of televised
    sports."
         STADIUMS: Under the subhead, "Sports franchises are giving
    local taxpayers sleepless nights," Andrew Osterland examines the
    explosion of new facilities. "Why are these enormously expensive
    new venues so critical to a franchise's financial success?  The
    answer is simple: With media revenues leveling off and player
    salaries rising, increased stadium income is the easiest way for
    owners to stay ahead."   ARENA FOOTBALL:  Anthony Baldo profiles
    the success of the League crediting it in part to AFL operating
    as a single entity, without separate franchise owners.  AFL
    Commissioner James Drucker predicts team values will "skyrocket"
    to between $10-20M within three years.
         TENNIS:  Ever since SPORTS ILLUSTRATED "plastered 'Is Tennis
    Dying?' on its cover last May, there has been endless banter
    about the game's imminent demise," writes Gregory David.  But
    David notes the men's game is "far from needing life support."
    As for women's tennis, it "could use a bit more help."  David
    concludes: "You can't help but remember what the Nancy Kerrigan
    comeback story did for figure skating.  Hold the tennis
    obituaries for a while."
         SOCCER:  Nick Gilber examines the pros and cons of starting
    Major League Soccer, from the success of the '94 World Cup to the
    unsuccessful NASL of the '80s.  Gilbert notes that both
    McDonald's and Anheuser-Busch are in discussions about becoming
    sponsors of Major League Soccer (FINANCIAL WORLD, 2/14 issue).
    

    Print | Tags: AFL, Anheuser Busch, McDonalds, NHL, San Jose Sharks, Sports Illustrated, Time Warner
  • MARKETPLACE ROUND-UP

         Signal Apparel Co., following its recent acquisition of
    sports and lifestyle T-Shirt company American Marketing Works,
    has announced that it is in the process of acquiring two apparel
    companies, Ocean Pacific and Trench Manufacturing.  The
    acquisitions are expected to nearly double the annual revenue
    base of Signal and create a "major vertically integrated" apparel
    mill, manufacturer and marketer with key licenses in all major
    sports (Signal).... Jazz forward Karl Malone will serve as
    captain of this year's Dutch Boy "In the Paint" Healthy Families
    America Team, a team consisting of 27 NBA centers and forwards
    dedicated to child abuse prevention (NBA/Dutch Boy)....Tim
    Rosaforte and Rick Lipsey's "Inside Golf" column in the week's
    SPORTS ILLUSTRATED note that Nike Golf dropped Curtis Strange,
    but still has 17 PGA Tour players under contract (SPORTS
    ILLUSTRATED, 2/6 issue).
    

    Print | Tags: NBA, Nike, PGA Tour, Sports Illustrated, Time Warner, Utah Jazz
  • SPONSORSHIP OPPORTUNITY: "HOOP DREAMS" INTERACTIVE PARK

         Coinciding with the NCAA Women's Far West Regional
    Championships, "Hoop Dreams" (the movie) will promote the Dream
    Fair, an interactive basketball theme park that will appear at
    UCLA's Drake Stadium March 23-27.  Attendees to the park will
    have an on-hands weekend of basketball skills, games, hi-tech and
    educational sessions.  Sponsorship benefits, according to
    organizers, include "substantial reach" through retailers, video
    distribution, community outreach, on-site signage and direct mail
    to UCLA Alumni and community members.  The anticipated live
    attendance is 30-35,000.  The Dream Fair is a pilot to a national
    tour which will coincide with the video promotion, PBS airing,
    merchandising roll-out and Turner Entertainment remake of the
    "Hoop Dreams" movie.  For details, contact Kathi Sharpe-Ross at
    L.A.-based Sharpe Public Relations (Sharpe).
    

    Print | Tags: NCAA
  • THE SUPER SHOW: SGMA PRESIDENT TALKS ON STATE OF INDUSTRY

         John Riddle, president of the Sporting Goods Manufacturing
    Association, delivered his state of the industry address which
    kicked off the start of the Super Show in Atlanta.  Riddle said
    growth in the sporting goods industry will slow this year because
    of "lagging footwear sales" and the baseball and hockey work
    stoppages. He estimated '95 growth at 5.5%, down from the 6.3%
    rise in '94.  Riddle foresees in-line skating, basketball and
    billiards as the three biggest growth areas in the industry for
    '95 (Chris Roush, ATLANTA CONSTITUTION, 2/3).
         PREVIEWS:  In a piece on the start of the Super Show, Glenn
    Ruffenach notes how manufacturers are all excited about their new
    sporting goods products just for women.  Rufenach continues, "If
    women are the new kids on the block at the Super Show, the
    comeback kid may be the in-line skating industry."  Just 18
    months ago, "the only thing the in-line business was hitting was
    a wall."  But now prices are "more varied," and the demographic
    problem has "sorted itself out (the 17-and-under crowd now
    accounts for 65% of sales)" (WALL STREET JOURNAL, 2/3).
         NEWS & NOTES:  Top Reebok athletes attending the Super Show
    will conduct "virtual" chats with fans on the company's new
    Internet site.  Some of the participants: Dave Johnson, Jon
    Koncak, Steve Smith, Roger Clemens, Frank Thomas, Jimmy Connors,
    Nancy Kerrigan and many others (Reebok)....ABC's "GMA" profiled
    the Super Show.  ABC's New Product Specialist Alvin Kupperman
    visited certain booths who have "hot products" this year.  Some
    of the products:  new models of in-line skates and other exercise
    equipment (ABC, 2/3).
    

    Print | Tags: ABC, Reebok, Walt Disney
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