Twitter's Ad Platform Adds Partners Del Mar's '13 Season Approved Twitter Taco Bell Rolls Out NBA BIG Boxes QuintEvents To Sell NBA Draft Hospitality CFE Gets Naming Rights For UCF Arena Sources: Burke Out As USA Hockey GM Classified Advertisements Blackhawks' Local Audience Helping National Nets Executive Transactions
Sections
SBD/10/Sponsorships Advertising Marketing
Print All-
CHICAGO EVENT SPONSOR AMERITECH NOT SOLD ON WTA RENEWAL
Ameritech "won't commit to an extension" of its three- year WTA Tour sponsorship, according to Len Ziehm of the CHICAGO SUN-TIMES. Brian Fitzgerald, Dir of the Ameritech Cup in Chicago, "spent considerably more time than usual" monitoring the event last week, "and "didn't like much of what he saw regarding the WTA's organizational efforts." Fitzgerald: "I look at it from a marketing point of view, and they're missing a lot. They make it so difficult to market their sport because they don't know who's playing when. Match times are always subject to change. They've got to bring some organizational sanity to it." Fitzgerald said that while IMG has "made significant inroads in attendance" this season, it may not be enough "to keep its tournament sponsor." Fitzgerald believes "far bigger crowds are possible." Fitzgerald: "If I could, I'd publish brackets with the time each match is going to be played. That's the prime reason we don't draw crowds early in the week. Monica Seles is the top draw in tennis, but for a tournament to properly market, it's got to be able to tell people when [Seles] is going to play" (SUN-TIMES, 11/9). -
MARKETPLACE ROUND-UP
Replica "99" Statue of Liberty jerseys with Wayne Gretzky's name misspelled, "Gretkzy" as it was for an October 30 game, will be on sale at MSG this week for $999 (N.Y. POST, 11/9).....The Pacers have hired NJ-based Integrated Sports Int'l to market naming rights for its new Indianapolis Fieldhouse arena (ISI). -
NIKE CAN'T SHAKE LABOR DAZE: ERNST & YOUNG STUDY RELEASED
Working conditions at Nike-contracted factories in Vietnam and Asia were in the news again over the weekend as findings from an audit conducted for Nike by Ernst & Young was obtained by the media. The report found "many unsafe conditions" at a Nike factory near Ho Chi Minh City where workers "were exposed to carcinogens that exceeded local legal standards by 177 times in parts of the plant" and showed that 77% "of the employees suffered from respiratory problems." The Ernst & Young report was highlighted in a front-page feature by Steven Greenhouse in Saturday's N.Y. TIMES. The findings also showed that employees were "forced to work 65 hours a week, far more than Vietnamese law allows, for $10 a week." Greenhouse: "The inspection report offers an unusually detailed look into conditions at one of Nike's plants at a time when the world's largest athletic shoe company is facing criticism from human rights and labor groups that it treats workers poorly" (N.Y. TIMES, 11/8). As the study was released to the media, Nike issued the complete report findings in a news conference on Friday afternoon. The audit was conducted in November '96 and submitted to Nike in January '97. Vada Manager, Nike Senior Manager for PR, said the company has taken steps to improve factory working conditions upon receiving the report, including reducing overtime hours and restricting the work week; upgrading the ventilation systems; and ensuring proper safety equipment for workers. Manager: "Clearly, this report is not a whitewash. By the recommendations cited in this audit and steps Nike has taken to improve the working conditions, it is clear that our system works" (Nike). REAX: The FINANCIAL TIMES' William Lewis called the report "embarrassing" for Nike (FINANCIAL TIMES, 11/10). ...In N.Y., Phil Mushnick asks, "Where do all the Nike- bought social activists go when these reports are revealed? ... And how many TV networks take a dive on these stories because Nike spends millions advertising $150 slave-wage- made, status symbol sneakers to kids?" (N.Y. POST, 11/10). ...In Washington, DC, "more than" 50 lawmakers called on Nike "to improve labor standards in Third World factories and to employ more people" in the U.S. A letter to Nike Chair Phil Knight said, "As members of the U.S. Congress we are deeply disappointed and embarrassed that a company like Nike, headquartered in the United States, could be so directly involved in the ruthless exploitation of hundreds of thousands of desperate Third World workers." The letter was spearheaded by Rep. Bernard Sanders (D-VT) and Rep. Marcy Kaptur (D-OH) (BLOOMBERG/NEWSDAY, 11/10)....At UNC- Chapel Hill, "roughly" 200 students rallied Friday afternoon and "vowed to pressure Nike to improve its labor practices." UNC-Chapel Hill Chancellor Michael Hooker defended the university's athletic marketing partnership with Nike but did promise a campus committee would review future corporate relationships at the university (NEWS & OBSERVER, 11/8). -
NIKE, PART II: OREGONIAN GOES ON-SIGHT AND TALKS WITH KNIGHT
In Portland, Jeff Manning, who spent a month in Asia examining Nike and other companies' business practices, debuted part one of his three-part series on Sunday that included a "rare" interview with Nike Chair Phil Knight. Manning wrote that Nike products "more than doubled" over the past three years, "forcing the company and its subcontractors to crank up production. That, in turn, increased the heat on workers and, in some cases, led to outright abuse. The resulting backlash promises to dog Nike well into the 21st century." Manning: "Nike has become an international incident." Knight is "by turns furious and philosophical" abouth the criticism: "For whatever reason, we've been the poster boy on globalization. That's a very emotional topic" (Portland OREGONIAN, 11/9). WORKING HISTORY: Manning traced Nike's working relationships with Asian factories and wrote that by '97, "that network spanned 33 countries on four continents and had presented Nike with a complex set of issues, many cultural differences and occupational health standards." In the interview, Knight said the labor controversy is not hurting business, even with a 20% drop in stock price since January 1. Knight: "I don't attribute that to the fact that we're getting any sort of resistance from our core customer." Nike officials say that critics are "unfairly singling out their company and are distorting" the issue. Knight: "Nike creates a lot of emotion. A lot of that emotion is positive. But there's a flip side to that. ... The people who are turned off by the emotion that we generate really want to believe these things. They basically view us as a rebel that should be taken down." Manning: "As serious as Nike's image problem has become, the company has no plans to change its hugely profitable subcontracting strategy. The cost-cutting expertise of the subcontractors produces profit margins and cash that domestic manufactures find hard to match" (OREGONIAN, 11/9). -
NIKE REVOLTS AGAINST "ANTIAUTHORITY" TALK IN CHINESE MARKET
The first Nike ads "developed specifically for the Chinese market, star local hoopsters and make earnest appeals to Chinese nationalism," according to Sally Goll Beatty of the WALL STREET JOURNAL. As Nike has been "stung" by critics of its aggressive marketing tactics overseas, the company "is starting to play down its rebel image outside the U.S.," including "doing away with the antiauthority rhetoric" and avoiding its U.S. stars. Nike Dir of Global Ad Geoffrey Frost said that Chinese youth "admire Michael Jordan," but by using local athletes Nike is "letting people know in China we see them as heroes." Beatty: "Still, it's unclear how well the culturally sensitive approach will go down with kids in China. ... Boosting sales abroad won't be a layup. Nike's best-selling shoes in China cost the U.S. equivalent of $59 to $78 -- still out of the reach of most ordinary Chinese" (WALL STREET JOURNAL, 11/10).




