SBD/11/Sponsorships Advertising Marketing

SFM MEDIA LOOKS TO HOLD NIKE TO ITS WORD

     SFM Media Corp, which was recently terminated as Nike's
media buyer when Nike consolidated its media operations at Wieden
& Kennedy, is looking to "hold" Nike to a long-term contract that
could "cost it millions," according to AD AGE.  While "ad
industry practice" does not usually call for terminated agencies
getting compensation for work performed prior to being "fired,"
as AD AGE states, SFM claims to have specifically worded its
contract to deal with this kind of situation.  As a result, SFM
is negotiating with Nike to pay commissions on more than $100M in
media buys SFM claims to have placed through '98, including buys
on NBC's NBA coverage, CBS coverage of the NCAA basketball
tournament, and CBS coverage of the '98 Olympics.  AD AGE's
Mandese & Jensen note that an executive close to the dispute
estimates more than $1M in commissions are at stake.  According
to Loeb and Loeb Partner David Carlin, no court ruling has ever
tested the trade practice, though several disputes have been
settled out of court (AD AGE, 7/10).
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Related Topics:

CBS, NBA, NBC, NCAA, Nike, Viacom

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