YankeeNets and the NFL Giants have formed a marketing and sponsorship alliance, under which the entities will offer cooperative partnerships for companies looking for synergies around marketing activities of the Yankees, Nets, Devils and Giants. The teams will also utilize cross- promotional mechanisms, including selling licensed merchandise in individual team-controlled retail outlets. Additionally, the Giants will provide access to their broadcast facilities in Giants Stadium for YankeeNets radio and pre-game show production (YankeeNets). TEAMWORK: BLOOMBERG NEWS' Rick Westhead reported that the deal is for one-year with a "mutual option to renew." The agreement "doesn't allow for either company to acquire equity in the other." Giants VP/Marketing Rusty Hawley: "We're not touching anything that involves media rights. This is simply a blending of our marketing strengths to achieve economies of scale." Westhead added that the teams will "begin to conduct a review of existing agreements for signs and marketing and subsequently form an overall strategic plan." YankeeNets Chair & CEO Harvey Schiller said that the Yankees "already own and operate six stores that sell licensed merchandise and plan to open more." YankeeNets Properties President John Krimsky and Hawley will oversee the venture (BLOOMBERG NEWS, 12/13). In N.Y., Judith Schoolman writes that the pact, which begins "almost immediately," is "designed to lure sponsors to the teams that comprise almost half of the major sports teams" in the N.Y. area. Besides cross-selling of merchandise, "other perks for fans could include purchasing tickets for all four teams" on the YankeeNets Web site, as well as youth and community activities. Schoolman adds, "Ideally, sponsors would be able to sign one deal with the group and be involved in all four teams" (N.Y. DAILY NEWS, 12/14). BIG GAINER? In NJ, Matthew Futterman cites analysts who say that the Giants "stand to benefit the most from new sponsorships," as the team's TV and ticket sales revenue are "basically fixed" since the NFL controls TV revenue and the Giants' home games "have been sold out for generations." But the deal "also may give YankeeNets another property to use" in its attempt to build an RSN over the next 12 months, as Schiller "made it clear" yesterday that the Giants could be a part of the new RSN "in the future." Schiller: "Our long-term goal is to establish a network around our baseball team. So we're always going to be interested in supplementary programming" (Newark STAR-LEDGER, 12/14).
