SBD/6/Sponsorships Advertising Marketing

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  • FALK FUSING SPORTS & ENTERTAINMENT THROUGH SFX DEAL

              The sum of the sale of David Falk's FAME to SFX on
         Monday could exceed $150M in cash and stock, according to
         Richard Sandomir of the N.Y. TIMES.  SFX is paying $82.9M in
         cash, one million shares of stock (worth $38.75M at
         yesterday's close) and $15M over five years in "incentive
         payments" if FAME's cash flow hits certain levels.  Other
         incentives could push the total over $150M.  Advantage Int'l
         Chair Lee Fentress: "Now it'll be interesting to see who
         retires first, David or Michael [Jordan]."  Sandomir reports
         that Falk will bring his "connections" to companies like
         Nike, Warner Bros. and WorldCom to SFX.  Falk: "We can offer
         our young superstars like Keith Van Horn and Antoine Walker
         a way to build businesses without going outside to do it,
         and it gives us a way to buy companies that we didn't have
         before."  Agent Leigh Steinberg said SFX's acquisition of
         FAME "highlights the synergy between Big Entertainment and
         Big Sports, to the extent that sports have become content
         and programming in a much larger world."  Sandomir notes
         SFX's "next step" could be the acquisition of The Marquee
         Group (TMG), and writes that Falk "comes into SFX with
         stronger assets than anyone" at TMG, adding that Falk "could
         supplant" TMG President Bob Gutkowski "as the dominant
         executive under the SFX sports banner."  Falk could also
         wind up "supervising" ProServ and his former boss Donald
         Dell.  TMG acquired ProServ last year (N.Y. TIMES, 5/6).
    
    

    Print | Tags: Clear Channel/SFX Sports, Nike, Time Warner
  • IN THE LINE OF FIREMAN: REEBOK CHAIR MEETS WITH SHAREHOLDERS

              Reebok Chair & CEO Paul Fireman told shareholders at
         the company's annual meeting yesterday that Reebok "has been
         less than I would hope for as far as sales and profits," and
         that "everything can be improved, including myself,"
         according to Gregg Krupa of the BOSTON GLOBE.  Fireman: "I
         believe that what we are experiencing today is a large bump
         in the road and not the death of an industry.  We have now
         got, in my opinion, the best product line in the industry,
         and it has been heralded by most retailers as such."  Krupa
         writes that a recent report on the "top-of-the-line" Reebok
         DMX 6 showed it outselling Nike's Air Triax by about three
         to one.  Fireman said that Reebok's plan is to take
         "advantage of new strides in shoe technology and expanding
         markets" for its Rockport and Ralph Lauren footwear and the
         Greg Norman Collection of sportswear.  Net sales of Rockport
         increased by $64.9M in '97, to $512.5M, including a 46%
         increase internationally.  Meanwhile, Fireman said the
         Norman line is now one of "the top four brands in men's
         sportswear," and sales have increased by 35% in each quarter
         since the line was introduced in '92 (BOSTON GLOBE, 5/6).
              LITTLE PROTEST: The GLOBE's Krupa reports that "some
         stock analysts had suggested before the meeting that Fireman
         would face substantial criticism from some shareholders." 
         When the meeting started, Reebok Investment Senior
         VP/General Counsel Barry Nagler announced the normal format
         had been changed.  Nagler: "In response to shareholders,
         there will be more structure to the annual meeting to allow
         for questions and comments."  But when it came time for
         shareholders to speak, only one "seized the opportunity." 
         Gary Larsen of NJ asked Fireman to rate his own performance. 
         Krupa: "So much for dissent" (BOSTON GLOBE, 5/6). 
              
    

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

              AGED BREW AD IRKS PARENTS: In Boston, David Arnold
         reports that a Boston Lager Beer ad on the outfield wall of
         a Little League park in Newton, MA, "has some parents crying
         foul."  The 4-by-8-foot ad reads, "Our beer is carefully
         aged before drinking.  You should be, too."  Terry Sacks,
         the league president who approved the sign, said he
         considered it a PSA (BOSTON GLOBE, 5/6)....In Chicago,
         Patrick McGavin writes on the new Puma TV spots, which use
         six high school basketball players, under the header, "King
         Star's Commercial Raises Exploitation Issue."  McGavin
         writes that for some, "the concept of young athletes as
         commodities is quite troubling" (CHICAGO TRIBUNE, 5/6).
              MAS MACHO POR NOMAR? In Boston, Larry Whiteside writes
         that the Red Sox "have not hesitated to incorporate" SS
         Nomar Garciaparra into "their considerable marketing
         efforts."  Garciaparra: "If people enjoy looking at me and
         want to come out and see some games because I'm playing,
         that's great. ... As for the marketing, whatever.  If it
         happens, it happens" (BOSTON GLOBE, 5/6)....Larry Walker has
         signed an endorsement deal with Acclaim Sports for its All-
         Star Baseball '99 (Acclaim)....The WNBA's Lisa Leslie signed
         a partnership agreement with Planet Hollywood to represent
         the Official All-Star Cafe.  Leslie will make appearances,
         and be involved in ad campaigns/promos for the restaurants
         (THE DAILY)....The UK arm of Hitachi Seiki will use Jackie
         Stewart's name in advertising its tools, in exchange for
         providing a full-time consultancy service to Stewart's Grand
         Prix Racing (FINANCIAL TIMES, 5/5)....Pequot Tribe Chief
         Marketing Officer Byron Quann has "denied the Pequots would
         turn profits" off their $1.51M sponsorship of USA Boxing
         amateur bouts at Foxwoods Resort Casino.  Pequot Senior
         VP/Marketing Bob DeSalvio, on a future relationship with any
         of the boxers: "Our business interest here is to provide our
         customers with first-rate entertainment.  Obviously, if some
         of these fighters prove to be as successful as Ali or
         Leonard, we'll have satisfaction in knowing we were there to
         help" (JOURNAL-BULLETIN,  5/5)....USA TODAY's Michael
         Hiestand profiles Hiedi Howkins, an MIT graduate who will
         climb K2 next month.  Howkins, who will be sponsored by
         PowerBar, is still looking for backing for the additional
         "bare bones" $26,000 budget for the four-person climb (USA
         TODAY, 5/6)....CNBC's Don Dahler profiled Spike Lee's ad
         agency, Spike DDB and reported that the agency "is still
         struggling to lose the urban-only label."  Lee, on the first
         group of Spike DDB ads: "We developed a sports niche.  I'm
         glad this happened.  [People] can see us outside of just
         'Spike Lee can only speak to the African-American consumer.' 
         We think it's much broader than that" (CNBC, 5/5).
    
    

    Print | Tags: Boston Red Sox, Puma, WNBA
  • PORTLAND OREGONIAN REPORTS NIKE LOSING FOUR TOP EXECUTIVES

              Four key Nike managers "have left or announced their
         plans to leave," according to Jeff Manning of the Portland
         OREGONIAN.  Nike VP Sports Marketing Rudy Chapa, the most
         senior of the outgoing execs, "has told senior managers at
         Nike that he plans to leave."  Nike Sports Entertainment
         President Ian Campbell "has told his staff that he's
         departing."  Campbell is said the be planning to return to
         his native Australia, "perhaps to open a sports events
         management firm."  Tom Fox, who serves under Chapa as Dir of
         U.S. Sports Marketing is also leaving.  Former Nike Dir of
         Golf Marketing Rob Tallman left in early April.  Manning:
         "Hard times have prompted much soul searching on Nike's
         campus."  Nike CEO Phil Knight recently told employees, at
         "an emotional all-staff meeting in April," that he was "re-
         dedicating himself to restoring Nike's once-formidable
         momentum."  Knight, at the meeting said, "I just have two
         words.  I'm sorry" (Portland OREGONIAN, 5/5).
              THE SHOW THAT ENDS: Nike has "pulled out" of The Super
         Show in Atlanta "for at least one year," according to TENNIS
         WEEK.  Nike Dir of Communications Lee Weinstein said that it
         "just didn't make business sense.  It was a huge cost and we
         felt our resources could be better applied to regional
         retailers."  Sketchers will take over Nike's 54,000-square-
         foot space at the convention (TENNIS WEEK, 5/7 issue).
     
    

    Print | Tags: News Corp./Fox, Nike
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