SBD/8/Sponsorships Advertising Marketing

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  • BUSINESS WEEK REPORTS THAT REEBOK MAY SOON BE ON THE BLOCK

              With things looking "pretty grim at Reebok," BUSINESS
         WEEKS' Gene Marcial wonders why money manager Bob Olstein is
         "salivating over Reebok and snapping up the stock?" 
         Olstein, Chair of Olstein Financial Alert Fund, believes
         that Reebok "is a buyout deal just waiting to happen." 
         Olstein: "We're betting that a major consumer-products
         company before long will recognize Reebok's great brand
         franchise and assets and make a move to acquire it. ... We
         have heard that management is now prepared to put Reebok up
         for sale."  Reebok declined comment (BUSINESS WEEK, 6/15). 
         "NBR" on Friday reported that Reebok Int'l was up 2 1/8 to
         30 11/16 following the Business Week report ("NBR," 6/5).  
    
    

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  • GATORADE RUNS SIDELINE ROUT, RENEWS NFL PACT FOR $125-130M

              Quaker Oats' Gatorade has renewed its sponsorship
         agreement with the NFL and its clubs through 2004.  The deal
         provides Gatorade with national and local marketing
         exclusivity for the league and clubs in the sports drink
         category, in addition to beverage exclusivity on NFL
         sidelines (NFL).  In N.Y., Stefan Fatsis reports that
         Gatorade, whose cups, coolers and towels are "a fixture" in
         TV shots on NFL sidelines, will pay the league more than
         $125M over six years, "three times" the annual amount the
         company currently spends on the NFL.  Gatorade VP/Sports
         Marketing Bill Schmidt, on the sideline exposure: "That's
         where we get our visibility."  Fatsis adds that the deal
         "could irk the NFL's TV partners," who are "having a tough
         time persuading advertisers to fork over big rate increases"
         to pay for the combined $18B in broadcast deals.  Gatorade
         counts on its sideline exposure and doesn't buy a great deal
         of ad time (WALL STREET JOURNAL, 6/8).  BRANDWEEK's Terry
         Lefton, who puts the deal at $130M, reports that Gatorade's
         "ramped up commitment" supports NFL execs' contention that
         its recent "lowball" $5M per-year deal with Coca-Cola "was
         constrained more by category dynamics than any fading of the
         NFL's luster."  Lefton adds that Gatorade will continue to
         "underwrite" some of the league's youth marketing
         initiatives, and will gain entitlement to the Punt, Pass &
         Kick program (BRANDWEEK, 6/7).  In Chicago, George Lazarus
         reports that Gatorade's sports marketing group's "close ties
         with the NFL were key" to renewing the deal.  One observer
         said that sideline placement is "where you want to be if
         you're an advertiser or marketer" (CHICAGO TRIBUNE, 6/8).
    
    

    Print | Tags: Coca-Cola, NFL
  • MARKETPLACE ROUND-UP

              GOLF: CNN's Jim Huber examined the USGA's potential ban
         on titanium clubs and said "there are some who feel the USGA
         might be the one that suffers in the end."  Senior PGA Tour
         player Rocky Thompson, on the USGA: "I like them.  But
         collectively, they can make some of the dumbest decisions in
         the history of sports."  Huber said that "numerous legal
         battles" are expected should the USGA take legal action, but
         that many pros said that there "seems to be willingness to
         adopt a uniform golf ball on that level," but not a limit on
         clubs ("Pro Golf Weekly," 6/6).  In Philadelphia, Joe Logan
         wrote that the debate is "shaping up as the biggest showdown
         golf has seen in years" (PHILADELPHIA INQUIRER, 6/7). 
              MJ AS CEO? In Chicago, Susan Chandler reports that an
         image Michael Jordan "is carefully cultivating" as his
         career comes to an end, is, "MJ as CEO."  He will oversee
         the Jordan Brand sports apparel, which will expand to
         "lifestyle apparel with a sports feel similar to the Tommy
         Hilfiger, Nautica and Polo Sport lines" (CHICAGO TRIBUNE,
         6/8).  In NJ, Paul Dottino reports that Jordan "is in the
         middle of renegotiating" his autographed memorabilia deal
         with Upper Deck, "meaning he is not signing any items" and
         dealers are unable to fill orders (Bergen RECORD, 6/7).
              NOTES: The Packers remained the leader in NFL licensed
         apparel sold in figures through March 31, followed by the
         Cowboys and 49ers.  The Broncos, who placed 14th in '96,
         "jumped to fourth place," while the Bucs moved from 28th
         place in '96 sales to 16th, the biggest increase by any club
         (USA TODAY, 6/8)....Agent John Counsell, father of Marlins
         2B Craig Counsell, has found a "endorsement vacuum" trying
         to market his son.  John Counsell: "I have a pretty good
         product in Craig Counsell.  But (South Florida's) feeling is
         this is Craig Counsell the Marlin, and the Marlins right now
         aren't very popular" (Ft. Lauderdale SUN-SENTINEL, 6/7).
    
    

    Print | Tags: Dallas Cowboys, Denver Broncos, Miami Marlins, Green Bay Packers, NFL, PGA Tour, San Francisco 49ers, Tampa Bay Buccaneers, Time Warner, Upper Deck, USGA
  • NIKE V. ADIDAS COULD BE THE MOST HEATED OF WORLD CUP BATTLES

              The "big battle" at the World Cup will "be between"
         Nike and adidas, according to William Echikson of BUSINESS
         WEEK, both of whom "have spent millions of dollars on
         temporary 'soccer parks'" in Paris to showcase their
         products.  Nike's display, which will feature French soccer
         star Eric Cantona and the Brazilian team, is at the La
         Defense office complex, while adidas is using an area across
         the river from the Eifel Tower.  Nike wanted to put a large
         swoosh on the Arche de la Defense, but local officials
         objected, and Nike instead has a model of its oversized
         World Cup shoe, the Mercurial (BUSINESS WEEK, 6/15 issue). 
              RAZOR SHARP: In Boston, Gregg Kruppa wrote that for
         marketers, the World Cup "is the most important sports event
         on the planet."  Some advertising and marketing specialists
         assert that World Cup sponsors should have "at least" one-
         fifth of its sales overseas, while others contend that with
         "so many companies participating, individual messages can
         become muddled or lost in the din."  Gillette Dir of
         Advertising Tim Schramm, whose company will have ad boards
         positioned near the goals during Games: "It's a global event
         and we're a global company.  What our sponsorship is able to
         portray is that we are a world-class company sponsoring a
         world-class event."  Gillette, which has offered World Cup
         promotions in 70 countries, says that 70% of men between the
         ages of 18-25 watched some of World Cup '94.  MasterCard
         Senior VP/Global Promotions Mava Heffler said the company
         has issued 1.5 million World Cup affinity cards, 50% more
         than MasterCard issued during the entire World Cup '94.  But
         John Hancock President David D'Alessandro said that while
         the Cup is a "magnificent international event," it is "a
         joke for most American companies."  D'Alessandro: "People
         are looking at the millions of kids who play soccer in this
         country and they think it's going to become the American
         pastime.  They were wrong in '94 ... and they're wrong now"
         (BOSTON GLOBE, 6/7).  For more on the Cup, see (#19), (#20).
     
    

    Print | Tags: John Hancock Mutual Life Insurance, MasterCard, Nike, Washington Nationals
  • RACING NOTES: WHEATIES FINDS CHIPS OFF THE OLD BLOCK

              The Alex Zanardi-Jimmy Vasser CART team, owned by Chip
         Ganassi, will be featured on a Wheaties box, available in
         stores by mid-June, according to Tim May of the COLUMBUS
         DISPATCH.  Ganassi: "To be recognized by General Mills with
         something like this, especially when you consider that Dale
         Earnhardt is the only other auto racing guy who's been on a
         Wheaties box, it's sweet" (COLUMBUS DISPATCH, 6/7).  In
         N.Y., Drummond Ayres reported that a group of 17 OH
         Congressional delegates recently asked General Mills to
         feature U.S. Senator John Glenn (D-OH) on a Wheaties box. 
         Wheaties officials, however, said the company traditionally
         has featured "only famous athletes" (N.Y. TIMES, 6/7).
              MORE DOWN TOBACCO ROAD: In Montreal, Pat Hickey, on
         Canada's eventual phase-out of tobacco sponsorship of sports
         and cultural events: "[A]s the selling of tobacco remains
         legal and largely unrestricted, I don't understand why
         tobacco companies shouldn't be allowed to sponsor sporting
         and cultural events" (GAZETTE, 6/7).  Kool spokesperson Bert
         Kremer, on possible tobacco legislation in the U.S.: "Our
         likely feeling is that we'll get a massive tax increase and
         probably continue our current marketing and advertising." 
         Team Owner Roger Penske said, "We're all waiting to see what
         the U.S. policy is" (STAR-NEWS, 6/7).  Formula One driver
         Jackie Stewart said his decision to shun tobacco sponsors
         was made because some of his sponsors "considered themselves
         non-smoking companies and didn't want to get involved with
         tobacco.  But I'm not saying we won't get involved with
         tobacco companies in the future" (GLOBE & MAIL, 6/6).  
    
    

    Print | Tags: Champ Car World Series, Formula One, Wheaties
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