SBD/5/Sponsorships Advertising Marketing

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  • BATTLE OVER THE WORDS "MADE IN THE USA" FOR NEW BALANCE

         In Boston, Chris Reidy examines New Balance's fight with the
    FTC over the use of the words "Made in the USA" on their shoes.
    Last September, the FTC filed a complaint against New Balance
    because the company uses imported soles thus making the "Made in
    the USA" label deceptive.  New Balance Chair Jim Davis contends
    that because most of the shoe is made in the U.S., his company
    has earned the right to use the "Made in the USA" label.  New
    Balance and the FTC are set to go to court in July over the
    issue, "and the result could affect U.S. manufacturers making
    everything from cars to computers to feather dusters."  Davis
    says the reason New Balance has to import the shoes' soles from
    China is that the technology to make soles for running shoes
    "simply does not exist in the United States."  Davis notes that
    the upper portion of the shoe, which accounts for 70-80% of its
    value, is made in the U.S.  Because an FTC victory could have
    "wide ramifications," some believe the FTC is looking to
    establish precedent "that would give it ammunition to go after
    larger targets" (BOSTON GLOBE, 4/4).
    

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  • BIG EXPOSURE FROM SPORTS & LIMBAUGH HELPS BREATHE RIGHT

         The exposure Breathe Right nasal strips has received from
    football/hockey players and an endorsement by Rush Limbaugh is
    credited with the growth in first quarter sales for CNS, Inc.,
    the makers of Breathe Right.  Sales were estimated at $8.9M,
    "four times the sales during same period last year" and $1M shy
    of the company's total '93 revenues.  The company also expects to
    turn a profit of about $1.5M; its first profit in at least five
    years.  Sales of Breathe Right accounted for $7.3M, or 82%, of
    CNS sales.  The company's stock closed Monday in NASDAQ trading
    at 21 1/8, another 52-week high.  CNS also announced it will
    register to sell another one million shares to help "ride the
    Breathe Right wave" (Glenn Howatt, Minneapolis STAR TRIBUNE,
    4/4).
    

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  • BO JACKSON, OUT OF SPORTS AND DONE WITH NIKE

         Bo Jackson, "who turned his two-sport stardom into a hit
    feature of celebrity marketing, is retiring from baseball, ending
    one of America's great sports stories."  Jackson has signed with
    a talent agency and wants to pursue acting full-time (DETROIT
    FREE PRESS, 4/5).  ESPN's Bob Ley on Jackson's retirement:  "What
    began as a modest $100,000 Nike endorsement deal blossomed into a
    cult:  'Bo Knows.'  By 1990, his Cross Trainer sneaker outsold
    Air Jordans and his endorsement deal pulled in more than $3
    million a year" ("SportsCenter," 4/4).  Jackson: "I am through
    with Nike.  I am through with sports" ("Baseball Tonight," ESPN,
    4/4).
    

    Print | Tags: ESPN, Nike, Walt Disney
  • MADISON SQUARE GARDEN BANS TOBACCO ADS FROM TV SIGHT-LINES

         Madison Square Garden, settling a lawsuit brought by the
    Justice Department, "agreed not to display cigarette advertising
    where it can be seen in television broadcasts of sporting
    events."  Justice sued the Garden claiming that displaying
    tobacco ads in such a way is a violation of the '71 law banning
    cigarette advertising on TV.  The action against the arena, which
    is owned by ITT, "apparently is the first time the federal
    government has applied the law in such a way."  Justice's
    lawsuit, and the Garden's "consent decree in which it didn't
    admit breaking the law," were announced simultaneously.  At issue
    was a large Marlboro sign "directly in front of the scorers'
    table" during Knicks games.  According to the lawsuit, the
    Marlboro sign appeared in TV broadcasts during 40 Knicks games
    over the entire '93-94 season, adding up to more than a hour's
    worth of TV time.  In its settlement, the Garden agreed not to
    display tobacco ads on or adjacent to the playing area or
    walkways to locker rooms during televised events.  MSG President
    Dave Checketts accused Justice of "grandstanding," contending the
    arena already had decided to remove the Marlboro sign -- "not
    because of the threat of government action but to comply" with
    NBA policy.  A Philip Morris spokesperson said that any TV
    coverage of their Marlboro signage was "incidental." Other
    arenas/stadiums could come under similar lawsuits.  A Marlboro ad
    at Shea Stadium "has come under fire" because it appears in
    baseball TV broadcasts; no action has been announced (Wade
    Lambert, WALL STREET JOURNAL, 4/5).  ABC's Peter Jennings also
    reported the story (ABC, 4/5).
    

    Print | Tags: ABC, Cablevision, Madison Square Garden, NBA, New York Knicks, Walt Disney
  • MARKETING ADVICE FOR BASEBALL'S RE-ENTRY

         The WALL STREET JOURNAL surveyed several marketing execs for
    their advice on how baseball should position its re-entry
    strategy.  Whit Friese and John Coveny of Leo Burnett:  "We
    definitely don't think they should go after something with
    nostalgia ... It's too late for that."  Rick Burton, Larry Durst,
    David Chass and Kyle Hartley of Clarion Performance Properties
    recommend a campaign featuring ESPN's Chris Berman:  "Baseball is
    back, back, back, back, back."  George Fertitta and Graham Turner
    of Margeotes Fertitta Donaher & Weiss recommend a print campaign
    -- "We're Sorry," signed by owners and players.  Gary Stibel of
    New England Consulting Group said baseball should adopt a "kid's
    cause," such as HeadStart.  Giants Senior VP Pat Gallagher:
    "Reconnecting with kids has got to be a priority" (Fara Warner,
    WALL STREET JOURNAL, 4/5).  MLB spokesperson Rich Levin said a
    slogan including the words "Play Ball!" is a possibility, but the
    fact that there is no settlement make baseball's situation "a
    little different" than the NHL, which found success with its
    "Game On!" strategy (Dave Caldwell, PHILADELPHIA INQUIRER, 4/5).
         RAYS AND 'BACKS GET COOL WELCOME:  Stores in Phoenix and
    Tampa report sales of Devil Rays and Diamondbacks merchandise
    "slacked off considerably after the first week of euphoria," with
    the strike to blame.  Logo Athletic, which sold 1.2 million T-
    shirts for the Panthers and Jaguars in the first month after the
    franchises were awarded, has sold fewer than 300,000 shirts for
    the Rays and Diamondbacks (Bruce Horowitz, USA TODAY, 4/5).
    

    Print | Tags: Arizona Diamondbacks, ESPN, Jacksonville Jaguars, MLB, NHL, Tampa Bay Rays, Walt Disney
  • MARKETPLACE ROUND-UP

         The much "ballyhooed partnership between gambling giant
    Caesars World and the Agua Cliente Indians to build" a $25M
    casino in Palm Springs, CA has been terminated, both sides
    announced yesterday (L.A. TIMES, 4/5)....Nintendo of America and
    South Korea's Samsung Electronics dropped their lawsuits against
    each other and agreed to "team up against software pirates of
    Nintendo games."  Nintendo had sued Samsung claiming that Samsung
    knowingly sold its computer chips to counterfeiters (WALL STREET
    JOURNAL, 4/4)....Cypress Gardens was sold by Anheuser-Busch to a
    group of local Central FL investors (TAMPA TRIBUNE, 4/5)....In an
    effort to support young cyclists, Plymouth has formed "Team
    Plymouth" of the ten pro cycling teams from the U.S with the hope
    of  contributing to the development of Olympic hopefuls.  Team
    Plymouth is managed by Strada Racing Club of Tempe, AZ.
    Supporting sponsors include America West Airlines and Domenic's
    Cycling Imports (Plymouth).
    

    Print | Tags: Anheuser Busch, Cleveland Indians
  • RAPTORS SIGN UP ANOTHER TEAM SPONSOR

         The Raptors announced that Discount Car and Truck Rentals
    will be the Official Car and Truck Rental Company of the club.
    As one of the team's corporate partners, Discount will
    participate as an advertiser on Raptors' radio broadcasts, and
    will be granted courtside signage, game-break promotions and
    presence in all team publications.  The Raptors will use Discount
    Car and Truck Rental vehicles exclusively, both in Canada and the
    U.S. (Raptors).
    

    Print | Tags: Maple Leaf Sports and Entertainment, Toronto Raptors
  • ROLLER HOCKEY AND IN-LINE SKATING POST LARGE GAIN

         American Sports Data conducted a nationwide study of 14,164
    Americans in January 1995.  Among the findings:  Health club
    memberships climbed by 10% for the second straight year;
    treadmill exercise is still the fastest growing fitness activity;
    and roller hockey and in-line skating had the largest annual
    growth rates among all 58 sports and activities measured.  In-
    line skating jumped 50% and roller hockey increased 58% over '94.
    There are now close to 18.8 million in-line skaters, up 513% from
    the 3.1 million in '89.  Basketball is still the most popular
    team sport, with more than 47 million people playing the game.
    Soccer, due largely to World Cup exposure, increased
    participation by 11%.  Downers:  Tennis saw a 7% decline in
    participation, and beach volleyball climbed only 5%.  American
    Sports Data President Harvey Lauer:  "This is clear and
    irrefutable evidence that the fitness revolution is thriving, and
    not withering -- as numerous articles in the media would have us
    believe" (American Sports Data).
    
                      
    TOP GROWTH ACTIVITIES IN 1994
    PARTICIPANTS
    (millions)
    '93-94
    '87-94
    Roller Hockey
    3,678
    +58%
    n/a
    In-Line Skat.
    18,773
    +50%
    +512% (c)
    Treadmill
    26,544
    +35%
    +504%
    Rock/Climb
    6,248
    +32%
    +34%
    Mt. Biking
    9,246
    +25%
    +512%
    Ski Exercises
    9,186
    +16%
    +169% (b)
    Free Weights
    27,204
    +16%
    +47%
    Walking
    35,807
    +15%
    +54%
    Basketball
    47,332
    +12%
    +32%
    Tent Camp.
    39,479
    +14%
    +12%
    Soccer
    18,231
    +11%
    +19%
    (b) = six-year growth (c) = five-year growth

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  • STREETBALL PARTNERS CONTINUES TO GROW

         In the latest edition of ADVERTISING AGE, Jeff Jensen
    profiles the ongoing growth of Streetball Partners, the creator
    of Hoop-It-Up.  The company, whose staff has grown from seven
    when it began to 85 today, is planning to open offices on the
    West Coast, as well as London and San Juan within the next year.
    Jensen notes that Streetball Partners' national sponsorships are
    priced at about $750,000 and "include spots on TV programs" based
    on events such as Air-It-Out, Spike-It-Up, Break Out and the Golf
    Skills Challenge (ADVERTISING AGE, 4/3 issue).
    

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