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INTEGRATED PREPS FIELD FOR NFL PROSPECTS COLLINS, SALAAM
Penn State quarterback Kerry Collins and Colorado running back Rashaan Salaam both figure to be drafted in the first round of this weekend's NFL draft, and "both are getting themselves set up to take advantage of endorsements." The two have signed up Integrated Sports International of NJ to handle their "marketing interests." ISI VP Steve Rosner noted that prospects are "able to arrange trading card and shoe contracts before the draft." Collins has signed with Classic trading cards and Salaam with Signature Rookies, with Rosner estimating both deals at "well over six figures, definitely more than $100,000." For a shoe deal, rookies must sign with NFL-approved companies Nike, Reebok, or Apex (Timothy Smith, N.Y. TIMES, 4/19).
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MARKETPLACE ROUND-UP
Chevrolet will announce today that Greg Norman has signed a three-year endorsement deal to promote the company's sport utility vehicles. Norman will appear in TV ads for Chevy's Suburban, Tahoe and Blazer models starting next month. Print ads featuring Norman will start in June (USA TODAY, 4/19)....Ford Motor becomes the first founding sponsor of Daytona USA, a multimedia motorsports entertainment attraction opening Summer '96 (AD AGE, 4/17). ....The Grizzlies have chosen Vancouver-based Palmer Jarvis Communications as their ad agency. The agency is currently working with the team in planning a second major push for selling season/individual tickets slated to begin in May (Grizzlies)....The Dodgers object to the new Giants TV ad campaign that includes the tagline: "Two reasons to Hate the Dodgers." Dodger Exec VP Fred Claire: "There's no reason for that. Any campaign to put another team down is a poor campaign" (L.A. TIMES, 4/19)....Concessionaire Volume Services will introduce new menus at its five MLB accounts: the Giants, Twins, Royals, Yankees and A's (Volume Services)....BARRON's "Up & Down Wall Street" focuses on CNS Inc., makers of Breathe Right nose strips. "While investors are unreservedly enthusiastic, the company is more restrained about its prospects" (BARRON'S, 4/17 issue).
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MERCEDES-BENZ AND ATP TOUR ANNOUNCE AGREEMENT
The ATP Tour and Mercedes-Benz announced a four-year agreement beginning in '96, making Mercedes the Official Car of the Tour. The company will also be the major sponsor of the ATP Tour World Championship and sponsor of the ATP Tour World Doubles Championship. The agreement, which the Tour calls "one of the most significant sponsorship agreements in tennis history and the most significant in the history of the ATP Tour," also provides Mercedes with additional promotional, advertising and marketing opportunities in its partnership with the Tour. That includes extensive on-court signage. Terms of the deal were undisclosed (ATP Tour). ATP Tour spokesperson Peter Alfano: "We believe it's significant not because of the money involved, but because of the prestige of Mercedes" (FLORIDA TIMES-UNION, 4/19).
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ON THE COLLECTORS' BEAT: IS TED WILLIAMS CARD CO. GONE?
According to Norm Cohen of N.Y. NEWSDAY, "all signs point to the fact that" the Ted Williams Card Co. is out of business, "although there have been no official confirmations." Cohen notes their MA-phone number has been disconnected. Tom Cosentino of Lapin East/West, who represented the card company until they stopped paying their bills: "It was a niche product that fell into the black hole of a bad market" (N.Y. NEWSDAY, 4/16)....The "Ring Leaders Phone Cards," inserted in Topps Stadium Club baseball Series I, will also be inserted in Series II due May 15. At a rate of one per 96 packs, the 13 different cards each contain three minutes of long distance phone time (Topps)....NASCAR's SuperTrucks will be featured in an 80-card set from Finish Line Collectibles, which will also include phone card inserts (Baltimore SUN, 4/16)....In his upcoming book, "Card Sharks: How Upper Deck Turned a Child's Hobby Into a High Stakes Billion Dollar Business," Pete Williams examines Upper Deck's "metoric rise" under President Richard "Mac" McWilliam (MacMillan Publishing).
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REEBOK, DESPITE EARNINGS GAINS, IS NOT SATISFIED
"Despite gains in sales and earnings," Reebok Int'l announced that it "failed to meet its first-quarter financial goals and would cut costs." Reebok said it has embarked on cost- cutting measures that include staff reductions at its Avia Group in OR. Last week, the OREGONIAN reported that Avia laid off nearly 10% of its OR-based work force. Reebok said it would "streamline its European operations and reduce spending in other areas." Reebok Chair Paul Fireman: "Although consolidated sales for the 1st quarter were close to outside projections, they were below our own plan, particularly in Reebok's business outside the United States, where favorable foreign exchange rates helped to increase sales in U.S. dollars." Sales for the quarter were $935.5M, an increase of 9.1% from '94. Sales for basketball and baseball shoes and Greg Norman apparel were strong. But Avia, a brand known for its appeal to women, "might be losing some market share" to Nike, according to Jennifer Black Groves of Black & Co. in Portland (Chris Reidy, BOSTON GLOBE, 4/19).
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REVIEWS ARE IN AT SPORTS SPONSORSHIP FORUM
The "significant shift" of companies trying to get greater leverage out of their sports sponsorships was a hot topic at the Sponsorship Forum, the first annual gathering of top execs from the corporate, media and property sides of the sports marketing industry organized by Clarion Performance Properties. Execs from Reebok, IBM, GM, Sara Lee and Sprint all said they are rethinking how they are leveraging their sports sponsorships. IBM has taken "a machete to its sport sponsorship roster," opting to keep ties to the NBA, Olympics and pro golf and tennis, while dropping such deals as the Fiesta Bowl. At GM, execs now file some 25 sponsorship proposals a day into the trash, "as most of them fail to address the carmaker's marketing needs." Reebok reserves its dollars for properties it can build a product around (Jeff Jensen, AD AGE, 4/17).
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TRYING TO PREDICT THE FUTURE OF CALLAWAY AND COBRA
The appeal of oversized woods and clubs from Cobra Golf and Callaway Golf is examined by Leslie Norton of BARRON'S. The "surging popularity of oversized clubs goes a long way toward explaining" why both companies became "stock market darlings" after going public a few years ago. But both stocks have "slipped" in the past few months and they have been the "subject of much debate" on Wall Street. Last week, Merrill Lynch downgraded Callaway, noting concerns on slowing sales of oversized woods as well as uncertainties associated with the company's new extra-large wood. While CNBC's Dan Dorfman continues his "bullish pronouncements" on both, BARRON's Norton notes that more rivals are turning out their own versions of oversized woods and new technology could slow sales for Cobra and Callaway even more. Another "new threat" to Cobra and Callaway are the mid-sized clubs. If midsized woods were to steal some of the oversized crowd, "it would be a repeat of what happened in tennis." Jumbo rackets were popular, but then sizes settled back to something closer to the old standard (BARRON'S, 4/17 issue). LOOK AT THE NUMBERS: Cobra reported net income of $10.4M for the quarter ended March 31, a 132% increase from net income of $4.5M in '94. Cobra's net sales increased by 106% to $56.2M in '94. Cobra attributes the increase in sales in income to continued demand for all of its oversized products and increased marketing efforts (Cobra).




