SBD/19/Sponsorships Advertising Marketing

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  • A COVETED PAC OF BEARS: NIKE AND ADIDAS VIE FOR UCLA RIGHTS

              UCLA "has emerged as the latest endorsement
         battleground" between Nike and adidas, who want to outfit
         all 21 of the school's intercollegiate athletic teams,
         according to Jeff Manning of the Portland OREGONIAN.  UCLA
         Assoc. AD Glenn Toth said that an agreement in principle "is
         imminent," and although he wouldn't comment on the talks,
         Manning reported that adidas "is cautiously optimistic." 
         Incumbent Reebok, which held UCLA rights since '93, but
         dropped out of the bidding last month, will still outfit
         UCLA teams throughout this school year.  Reebok VP/Sports
         Marketing John Frascotti: "The cost of these deals has
         gotten out of proportion to the value they convey."  Manning
         reported Nike is also reducing its endorsement spending,
         creating a $5.6M fund to "exit" endorsement contracts. But
         Nike has made it clear that its cuts will come in sports it
         considers "non core," and UCLA is "central to Nike's
         heritage."  Manning added that adidas "badly wants a West-
         Coast and Pac-10 presence," as its four major universities
         are all located west of the Rockies (OREGONIAN, 8/18).
    
    

    Print | Tags: Colorado Rockies, Nike, Reebok, Washington Nationals
  • ADIDAS GOLF USA MOVES TO CARLSBAD; ADIDAS FACES LEGAL SUIT

              adidas Golf USA said it will move its business
         operations from Tualatin, OR, to the Carlsbad, CA,
         headquarters of Taylor Made Golf, which is also owned by
         adidas-Salomon, according to Bruce Bigelow of the SAN DIEGO
         UNION-TRIBUNE.  The two companies will continue to operate
         separately, but it was "unclear" whether the move was part
         of a reorganization announced by adidas on August 4.  adidas
         Golf USA, which has 30 employees, sells adidas-brand golf
         apparel, footwear and accessories in the U.S.  Most
         employees are expected to transfer to the new headquarters. 
         Taylor Made, which has "roughly" 300 full-time and 160 part-
         time employees, moved to the Carlsbad-based headquarters
         earlier this year (SAN DIEGO UNION-TRIBUNE, 8/18).
              SUIT: adidas-Salomon AG was accused in a $1.2B lawsuit
         filed by Chinese political dissidents "of using slave labor
         in China to make World Cup 98 soccer balls."  The suit was
         filed on behalf of dissident Bao Ge and other current and
         former prisoners of Chinese work camps (BLOOMBERG, 8/19). 
    
    

    Print | Tags: Washington Nationals
  • FALK SAYS MJ NOT DONE YET: STILL SEEKING "APPROPRIATE" DEALS

              Michael Jordan "would consider additional endorsement
         opportunities," although his agent, David Falk, said that
         anything he would agree to would have to be "a perfect fit,"
         according to Pete Coates of BLOOMBERG NEWS.  Falk disputed a
         story in yesterday's Chicago Tribune that reported Jordan
         "had put a freeze on additional endorsement contracts."  The
         story quoted FAME's Estee Portnoy as saying they were "not
         actively pursuing" any new deals for Jordan.  Falk said that
         the quote was "taken out of context" and is "not accurate." 
         Falk: "I am continually searching for opportunities I think
         would be appropriate for Michael.  We certainly are going to
         be selective."  Falk said there are some areas that he has
         "been actively pursing" over the past two years, although he
         would not disclose further details (BLOOMBERG NEWS, 8/19).  
    
    

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  • MARKETPLACE ROUND-UP

              NFL: The NFL announced its official postseason locker
         room licensees: Logo Athletic will supply the Super Bowl
         locker room coaches cap and Divisional Champions locker room
         hat and T-shirt; Starter the locker room T-shirt for both
         the Super Bowl and AFC/NFC Championship Games; and Sports
         Specialties the AFC/NFC Championship locker room coaches cap
         (NFL)....As part of Visa's NFL marketing partnership, 49ers
         QB Steve Young and WR Jerry Rice will be featured in two new
         30-second spots for Visa USA, which will debut nationally
         during Sunday's 49ers-Dolphins game on Fox (Visa USA). 
              NOTES: The average cost of making a national 30-second
         spot last year hit $308,000 -- more than $10,000 a second --
         compared with $278,000 in '96 (WALL STREET JOURNAL, 8/19).
         ...Puma officially announced the signing of Raptors rookie
         Vince Carter, the only NBA player currently endorsed by the
         company (Puma)....Callaway Golf introduced its new line of
         Little Bertha Golf Clubs for junior golfers. A set including
         a driver, 6-iron, 8-iron, wedge, putter and bag has a
         suggested retail price of $500 (BLOOMBERG NEWS, 8/18).
              MOTORSPORTS: Bayer reached a sponsorship deal for its
         Aspirin and Alka-Seltzer brands with BACE Motorsports for
         the '99 NASCAR Busch Grand National Season.  The sponsorship
         marks the seventh consecutive year the company has backed a
         Busch team (SPEEDNET, 8/18)....MI-based Fastlane Footwear
         acquired NC-based Jebco, which manufactures and sells a full
         line of NASCAR licensed products.  Fastlane has a NASCAR
         license for its line of footwear products.  Jack Stecher
         will remain Jebco President and will be elected to
         Fastlane's Board of Directors (Fastlane).
    
    

    Print | Tags: Anheuser Busch, Callaway Golf, Maple Leaf Sports and Entertainment, Miami Dolphins, NASCAR, NBA, News Corp./Fox, NFL, Puma, San Francisco 49ers, Toronto Raptors, Visa
  • SAY HELLO TO HIS LITTLE FRIEND: TONY BOSELLI'S GOOD BURGER

              The 93 McDonald's restaurants in Northeast FL and
         Southeast GA have begun selling the "Boselli Burger," named
         after Jaguars OL Tony Boselli, according to Earl Daniels of
         the FLORIDA TIMES-UNION.  The burger, which is the company's
         "largest sandwich" and sells for $1.99, marks the first food
         item named for a professional athlete in Jacksonville.  
         Local McDonald's franchise Owner Gary Grimes: "The burgers
         are already generating excitement in the stores.  We have
         hit a triple, if not a home run."  The "Boselli Burger" is
         made of three hamburger patties on "a big bun with American
         and Monterrey jack cheeses, mayonnaise, lettuce, tomatoes
         and onions."  Daniels reports that the burger will be sold
         through at least December.  If the team makes the playoffs,
         sales could extend into January (FL TIMES-UNION, 8/18).  In
         Chicago, Steve Rosenbloom writes that the burger also comes
         with a "defibrillator" (CHICAGO TRIBUNE, 8/19).
    
    

    Print | Tags: Jacksonville Jaguars, McDonalds
  • SI SAYS NIKE MADE "VAST MISCALCULATION" ON TIGER WOODS LINE

              Two years ago when Nike signed Tiger Woods to a
         reported five-year endorsement deal, it seemed "like another
         stroke of marketing acumen," but early returns suggest that
         Nike "made a vast miscalculation," according to SI's
         "Scorecard."  Mike Jaffey, manager of a Nevada Bob's in Las
         Vegas, said of Nike's Woods line: "None of it is selling
         very well."  Noting the cost of $225 shoes and $75 shirts,
         Matt Brown, of an OR-based golf shop, said, "Young kids like
         it, but young kids don't have the money to buy it."  SI
         reports that Brown's comments "speaks to what seems to be
         the main problem with the line: It appeals to the consumer
         who can't afford it."   Nike would not release sales figures
         but "suggested that while off-course sales have been
         disappointing, the Woods items are doing better in pro
         shops."  SI: "That doesn't appear to be the case.  Several
         pro shops with a high-end clientele ... don't even carry the
         Woods line."  SI adds that golfers "may have been turned
         off" by the "radical" design of Woods' shoes and the "in-
         your-face nature of his ad campaign."  Bill Grigsby,
         VP/Apparel & Merchandising at Edwin Watts Golf Shops: "Nike
         tries to use the different-is-cool theme that works well in
         sports.  But in golf that formula doesn't work" (SI, 8/24).
               
    

    Print | Tags: Nike, Sports Illustrated
  • WAS IOC LOOKING TO PROTECT TV PARTNERS IN IBM BREAKUP?

              There's "more than meets the eye" to the IOC's "failed
         talks" with IBM over a new eight-year sponsorship deal,
         according to Josh Rubin of the TORONTO STAR.  IBM, which has
         been a major Olympic sponsor since 1960, "figured being the
         technical supplier and a major sponsor" to the IOC, which
         would give it the rights to handle official Olympic Web
         sites.  But the IOC wanted to package out those rights
         separately, at the same time breaking up IBM's technological
         "hold" on the Olympics by "going with different suppliers
         for hardware and software."  The IOC "felt threatened," due
         to IBM's "natural instinct when it comes to Web design ...
         to push the envelope, taking advantage of any improvement in
         delivery of text, video and audio."  Rubin reports that
         "none of these Internet advances would be helpful to TV
         broadcasters" and that it would be "extraordinarily
         difficult for the IOC to slap [IBM] down if it pushed the
         envelope too hard for the broadcaster's liking.  A multi-
         billion-dollar gorilla can do what it wants to do with its
         Web site."  IOC VP Richard Pound said that with TV rights
         sold through 2008, "we've got to make sure we don't do
         anything which would harm the rightsholders."  Eventually,
         TV rightsholders could be licensed to run video and audio on
         their own, or, as Pound suggests, "pay a few extra dollars"
         to "produce the official Olympic site" (TORONTO STAR, 8/19).
    
    

    Print | Tags: IBM, IOC
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