SBD/3/Sponsorships Advertising Marketing

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  • "MONEYLINE" AIMS TO UNDERSTAND WHY 78 MILLION GO TO EXTREMES

              Extreme sports were profiled by Sean Callebs Friday on
         CNN's "Moneyline."  With 78 million people in the U.S., 15-
         30-years-old, spending "more than" $1B a year on extreme
         sports, "Madison Avenue is certainly taking notice." 
         Volkswagen is now giving away K2 skis or a K2 snowboard with
         the purchase of a Special VW Golf; Pepsi "wants to be the
         drink of the extreme crowd;" and "even Ralph Lauren is
         venturing outside the country club set and targeting this
         hip crowd."  Callebs:  "Some analysts are convinced extreme
         sports are a trend and not just a fad.  Meaning the culture
         will be around for awhile."  Chad Jacobs, an analyst for
         Ladenberg Thalmann:  "What kids wear on the slopes is being
         translated into what they are wearing on the streets.  And
         there is a number of footwear companies and a number of
         apparel companies that are effectively becoming the name for
         extreme on the fashion side."  Jacobs recommended Pacific
         Sun Wear, Vans, Quick Silver and Nike as some of the fashion
         retailers investors should consider (CNN, 2/28). 
    
    

    Print | Tags: Nike, PepsiCo, Time Warner
  • ALI PLAYS CHICKEN, LOOKS TO PUT NAME ON RESTAURANTS IN EGYPT

              Muhammad Ali is "aiming to go into the chicken business
         again," this time in Egypt, according to Gauch & Sanders in
         BUSINESS WEEK.  Ali wouldn't own the restaurants, as the
         deal "under negotiation" would involve Egypt's Behairy
         family licensing his name for a fee.  Ali's lawyer says that
         the two sides "are still far apart," but the Behairys are
         "confident a deal will be struck."  The family wants to open
         the first chicken restaurant, costing $1M, in Cairo, and
         from there "expand throughout the Mideast."  The atmosphere
         "will have a feel similar to Planet Hollywood, except with
         no liquor or pork served."  In '75, Ali attempted to start a
         chicken-and-burger chain, but "it fizzled for a lack of
         funds," and Muhammad Ali Rotisserie Chicken recently closed
         in MD after two years (BUSINESS WEEK, 3/10 issue).     
              
    

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  • ANALYSTS SAY REEBOK "FOCUSED AGAIN" AS SALES AND STOCK GO UP

              Reebok was profiled in Sunday's N.Y. TIMES' Business
         section by Marcia Vickers under the header, "After Tripping
         On Its Laces, Reebok Is Focused Again."  Investors and
         financial analysts say Reebok is now "giving shareholders a
         run for their money," according to Vickers, and Reebok's
         stock has risen from "about" $26 at the start of last year
         to $46.75 as of Friday, and it is still "relatively cheap,"
         trading at 18.2 times its estimated earnings, "compared with
         26.2 for Nike."  Salomon Bros. footwear analyst Brett
         Barakett: "Reebok stumbled in the early '90s.  They took
         their eye off product ... They had become more of a fashion-
         driven, life-style company.  But now they're focused on
         producing serious-performance athletic wear."  Vickers also
         notes "recent success" with celebrity endorsements
         "contributing to the sales jump" (N.Y. TIMES, 3/2).
              A KICK IN THE GRASS: MLS Clash F Eric Wynalda is
         profiled in the BOSTON GLOBE under the header "The Marketing
         of Eric Wynalda.  A 'Bad Boy' Will Put Best Foot Forward for
         Reebok."  Wynalda will soon join Shawn Kemp and Shaquille
         O'Neal in a "major" Reebok ad campaign.  Reebok VP Peter
         Moore: "Eric was U.S. player of the year.  He is articulate,
         very good-looking, self-confident, an aggressive player who
         has become a mature individual" (BOSTON GLOBE, 3/2).
    
    

    Print | Tags: MLS, Nike, Reebok, Washington Nationals
  • MARKETPLACE ROUND-UP

              L.A. Gear reported a net loss of $50.5M, or $2.20/share
         for the fourth quarter ended November 30, compared to a net
         loss of $34.3M, or $1.49/share for the same period of '95. 
         The quarterly figures include a $28.8M restructuring charge
         to pay for a previously announced restructuring plan (WALL
         STREET JOURNAL, 3/3)....Rupert Murdoch's Australian Super
         League football competition, designed for int'l pay-TV, has
         won a $12M sponsorship deal from Australian telecom company
         Telstra.  The Super League is in "direct competition" with
         the Australian Rugby League (AD AGE, 3/3)....The N.Y. DAILY
         NEWS featured an extensive look at fraudulent sports
         merchandise. The FBI estimated last month that as many as
         70% of all sports autographs are fraudulent (N.Y. DAILY
         NEWS, 3/2). ...Jack Vipers, GolfWatch Founder & Chair, on
         GolfWatch's debut at the PGA Tour's Nissan Open: "I think in
         GolfWatch, there will be the admirers and then there will be
         some that don't understand it or don't like it, so we fully
         expect that" ("Nissan Open," CBS, 3/1).
              
    
    

    Print | Tags: CBS, Nissan, Palace Sports & Entertainment, PGA Tour, Viacom
  • NIKE BUYS TITLE-SPONSORSHIP RIGHTS TO WORLD MASTERS GAMES

              Nike is "lending" its name to the Nike World Masters
         Games, a 14-day multisport event for athletes age 30+,
         according to Melanie Wells of USA TODAY.  Co-hosted by the
         city of Portland, OR, the World Masters Games are scheduled
         for August '98.  Wells notes that Nike's title sponsorship
         costs $3.5M, and Games GM Doug Single is searching for other
         sponsors to bring in a total of $20M.  United Airlines "will
         be affiliated," and Single is "courting" Coca-Cola, PepsiCo,
         Sun Microsystems and IBM, among others (USA TODAY, 3/3).
    
    

    Print | Tags: Coca-Cola, IBM, Nike, PepsiCo, Sun Microsystems
  • THREE STRIPES AND YOU'RE OUT? YANKEES EYE TEAM SPONSORSHIP

              Yankees Owner George Steinbrenner is "working on" a 10-
         year, $95M sponsorship deal with adidas, according to Terry
         Lefton of BRANDWEEK.  A Yankees source tells Lefton that the
         deal calls for "signage both on the centerfield backdrop,
         behind the plate and outside Yankee Stadium."  While adidas
         would not get logos on the Yankees uniforms, "one scenario
         has them using a raised knit pattern to carry the Adidas
         trademarks, which would be visible at retail, but not on
         field or on TV."  Russell holds the exclusive rights to
         supply all MLB uniforms (BRANDWEEK, 3/3 issue).  
              CHANGE THE GAME: Stefan Fatsis writes in the WALL
         STREET JOURNAL that amid negotiations with adidas for a 10-
         year, $100M deal, execs familiar with negotiations said "an
         earlier suitor to outfit and sponsor the club re-emerged
         Friday: Fila."  Fatsis: "Fila's re-entry in the bid to
         sponsor the Yankees put Adidas on hold, and negotiations 
         continued yesterday at the club's spring-training
         headquarters in Tampa" (WALL STREET JOURNAL, 3/3).
              LEAGUE SANCTIONS?  In New York, Bill Madden writes that
         in January '96, all MLB owners signed an "agency agreement"
         which "stipulates" that MLB and its properties division
         would be the "exclusive broker for all marketing deals"
         involving "uniforms, jackets, caps and such merchandise, and
         that clubs would share equally in the proceeds."  One MLB
         owner: "The whole purpose of our agency agreement was to
         prevent a Jerry Jones situation from occurring in baseball. 
         If George has done this, he's in violation of our agreement
         and I would think subject to significant sanctions" (N.Y.
         DAILY NEWS, 3/3).  The DAILY NEWS' Ian O'Connor notes fellow
         owners "are said to be furious" (N.Y. DAILY NEWS, 3/3).  MLB
         Enterprises CEO Greg Murphy: "We're not going to comment on
         rumors at this point" (Joel Sherman, N.Y. POST, 3/1).
    
    

    Print | Tags: Fila USA, MLB, New York Yankees, Washington Nationals, YankeeNets
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