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ASIA -- THE NEXT BOOM FOR SPORTS MARKETING
The current issue of BUSINESS WEEK examines the seemingly "endless" sports marketing opportunities in Asia. BUSINESS WEEK notes, "Now, with the arrival of global sports promoters such as IMG and 24-hour sports stations, once genteel pastimes such as badminton, cricket, and table tennis are rushing into big-bucks competition." Companies such as Yonex Corp. are paying $2M to be exclusive supplier for Indonesia's national badminton team. MasterCard, Pepsi, Gillette, and Canon have all signed four-year, $2.6M deals to sponsor Asian soccer. Nike has become equipment supplier to soccer and basketball teams in China and has started a series of basketball tournaments for mainland teenagers. The piece states, "With government control of the media tight throughout emerging Asia, sponsoring nationally televised sports is the easiest, cheapest way to reach Asia's ballooning middle class of more than 250 million." New sports channels are also "raising the financial stakes." Rupert Murdoch's Prime Sports, part of his Star TV Asian staellite Tv network, is paying an estimated $4M annually to carry badminton, and is believed to be paying $1M for Chinese soccer. ESPN also plans to be "beaming satellite signals around the clock" in Asia by year end. ESPN recently outbid Murdoch for rights to Indian cricket with a reported $3M over five years. IMG is not the only agency taking advantage of the opportunities in Asia. Hong Kong's Asia Sport Group is working to link up federations around Asia to stage regional tournaments. IMG Managing Dir/Asia Breck McCormack: "There is no shortage of opportunities. It's a question of where to focus your resources" (Engardio, Shari, et al, BUSINESS WEEK, 8/7 issue).
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AT&T LAUNCHES FIRST SPONSORSHIP OF DREAM TEAM
Olympic sponsor AT&T will be the first of 13 sponsors to launch a Dream Team promo, according to Michael Hiestand of USA TODAY. Beginning August 14, AT&T will distribute rubber outdoor basketballs to consumers buying $50 of AT&T products. Hiestand writes, "Something to watch: Potential conflicts between Dream sponsors and players' individual ad deals." Ten of the 13 sponsors can use players if they are introduced in the team context, but "one potential snafu: Shaquille O'Neal, a.k.a. Mr. Pepsi, showing up even fleetingly" in a Coca-Cola promo (USA TODAY, 8/1). In Washington, columnist Tony Kornheiser criticizes the Dream Team selection process under the header, "Once is a Dream, Twice is a Marketing Reality." Kornheiser: "Cleary, USA Basketball, a wholly owned subsidiary of the NBA, sought to field a team that will put the kindest, gentlest face on U.S. pro basketball --- to make it easier to sell time shares in the NBA around the world" (WASHINGTON POST, 8/1).
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MARKETPLACE ROUND-UP
Opel will provide the official cars of the 1998 World Cup as they have extended their relationship with FIFA as an Official Sponsor for the next three years (FIFA NEWS).... Timex is sponsoring a film on extreme whitewater kayaking and an Expedition Team to promote its new line of outside watches. The film will feature Tommy Moe (Timex Sports).... Dorna USA has signed two deals to provide their AdTime signage systems at collegiate men's basketball events. Dorna signed with Kemper Sports Marketing and ESPN for use of their AdTime signage system at the Maui Invitiation tournament held in November, and with Arizona State for at all home men's basketball games (Dorna USA)...."NFL Prime Monday" had a feature on Deion Sanders' new commercial for Sega. The report noted Sanders is replacing Joe Montana as a spokesperson for the company. The cover of Sega's football game will have Sanders in five different uniforms from the 49ers, Broncos, Dolphins, Cowboys and Eagles (ESPN, 7/31). In Boston, Peter Gammons writes that Sanders told his former Reds teammates that the 49ers were preparing a long-term deal for him. With the Giants attendance up this week, Gammons writes, "there's a feeling that Bay-Area Sega and M.C. Hammer's record company will keep Sanders playing for the two San Francisco teams" (BOSTON GLOBE, 7/30). ....CNBC's Ted David reported on the licensing industry, saying it contributes nearly $70B each year to the retail sales volume of goods and services in the U.S. (CNBC, 7/31).
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PEPSI HAS AUGUST RUSH; COCA-COLA/BARQ'S DEAL OK'D
Pepsi-Cola announced it will have a packaging "blitz" in August for an end-of-summer special. They will ship new 16-ounce "Slam Cans" of Pepsi, Diet Pepsi, and Mountain Dew to retail outlets. They will also team up with Time Warner for a new 30- can "Block Party" multi-pack with inserts offering more than $100 off certain Time Warner products, including CD-ROM versions of Sports Illustrated's Multimedia Almanac, and a subscription to SI for Kids (PepsiCo). FAST CARS, COLD DRINKS: At each NASCAR Winston Cup event, Pepsi is choosing one fan to win the Pepsi Fan Appreciation Award. Each winner receives a plaque signed by Richard Petty and NASCAR President Bill France, and selected Pepsi merchandise. Pepsi is the Official Soft Drink of NASCAR (NASCAR). FTC GIVES OK TO BARQ'S DEAL: Coca-Cola has won approval from the FTC for its purchase of Barq's Inc., the manufacturer of the nation's No. 2 brand of root beer (BLOOMBERG BUSINESS NEWS/N.Y. TIMES, 8/1). -
PGA TOUR EVENT AT PLEASANT VALLEY LOOKING FOR SPONSORS
The PGA Tour's Ideon Classic at Pleasant Valley, MA, which ended Sunday, is looking for a title sponsor. Pleasant Valley owner Ted Mingolla "is going on the assumption that this year' title sponsor," Ideon Corp., will no longer be associated with the tournament. The event has been in search of a "long-term title sponsor since Bank of Boston ended its nine-year involvement" in '90. Mingolla is in discussion with other sponsors, but he has had difficulty signing a deal due "to the state of the Massachusetts economy." Mingolla felt the exposure of The Golf Channel, which televised the event, "made it attractive" (Joe Gordon, BOSTON HERALD, 7/30). But Jack Craig writes that the tournament needs a title sponsor and added TV exposure to become a "major" event. Next year's event is also committed to The Golf Channel, "which can be found virtually nowhere" in the Boston area, according to Craig. But a title sponsor willing to commit $2.5M would make Pleasant Valley "a major TV event." The networks require $2M from a title sponsor, for which it receives around thirty 30-second spots "over the two TV afternoons." Craig calls ESPN "a much more efficient purchase, demanding far less for 54 commercials over three days of coverage, one reason Anheuser-Busch shifted most of its golf ads to ESPN" (BOSTON GLOBE, 8/1).
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TAMBRANDS MAKES IT OFFICIAL IN TWO-YEAR DEAL WITH OPEN
As mentioned here last week, Tambrands has announced a two- year sponsorship deal with the U.S. Open tennis chamionships. The company earlier in the year attempted to become title sponsor of the WTA Tour, but was turned down (THE DAILY). Tambrands won't have "its name attached to a particular phase of the Open," which was one "problem with the WTA deal." USTA spokesperson Page Crosland said the deal is "not a specific sponsoring." As part of the deal, Tambrands will arrange for female players in inner-city tennis programs to meet with pro players. In Atlanta, H.A. Braham wrote of the deal: "The WTA Tour's loss is the U.S. Open's gain" (H.A. Brahnam, TAMPA TRIBUNE, 8/1).
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THE SUMMER JUNIOR HOOP TOUR BATTLES OF NIKE AND ADIDAS
"In the ongoing hammer-and-tongs battle between Nike and Adidas known as Show Wars, each company zeroed in on the youth market by sponsoring its own basketball tournament," writes Curry Kirkpatrick in the current issue of NEWSWEEK. In Las Vegas, Nike and Adidas events combined to feature 259 teams and more than 2,000 players from 30 states and four foreign countries. Watching them were college coaches, amatuer coaches, and "steet guys" who "want to get their hooks into the kids," as Providence College coach Pete Gillen puts it. Kirkpatrick writes the NCAA "has only itself to blame" for this new summer season, as "new recruiting rules have sharply limitied college coaches' access to a star prospect." The case of Kevin Garnett, who played in the Nike camp last summer, is documented, as is that of Schea Cotton, "the next phenom" out of L.A. who was once flown to Nike HQs to "consult about shoes" as an 8th grader. Tom (Ziggy) Sicignano, one-time Adidas salesman who now coaches a Nike team: "There's a lot of slime out there preying on kids, warehousing them" (NEWSWEEK, 8/7 issue).




