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SBD/Issue 57/Sponsorships, Advertising & MarketingPrint All
In Australian Federal Court on December 15, Fila "could face a fine of up to [US$7.3M] for breaching the Trade Practices Act after withdrawing its defence in its Federal Court battle" with the Australian Competition & Consumer Commission (ACCC), according to Michael McGuire of THE MERCURY. The ACCC alleges that while Fila marketed jerseys and apparel of Australian Rules Football teams, the company "abused its market power and engaged in exclusive dealing" by "demand[ing] that retailers not stock AFL-branded product made by its competitors." McGuire noted that former Fila exec David Carney "has not withdrawn his defence and will continue fighting the ACCC" (THE MERCURY, 12/2).
Vineyard Vines has become an official sponsor of U.S. Sailing. The company will create a limited edition commemorative tie and tote bag as part of U.S. Sailing's "Voyage to Athens" initiative. A line of U.S. Sailing themed ties is also being created (U.S. Sailing).... Kaleida Health has signed on as the official healthcare system of the Bills. The multi-year agreement includes category exclusivity, signage, rights to the team's logos and marks, in-game commercial recognition on the Bills radio network and a presence at the Bills' training camp (Bills)... AutoTote parent company Scientific Games and Breeders' Cup Ltd. signed a licensing agreement that "will allow North American lotteries to tie their games into" the Breeders' Cup World Thoroughbred Championships. The new games will be available through MDI Entertainment, which also licenses lottery games from the NHL, NBA, MLB Players Alumni Association, Louisville Slugger, F-1 racing legends and several Winston Cup drivers (THOROUGHBREDTIMES.com, 12/2).
Limbaugh's Comments, Recent Play
Elevate QB In Endorsement World
In Philadelphia, Larry Eichel wonders whether Eagles QB Donovan McNabb is a "hotter quantity in the endorsement world today than he was before [Rush Limbaugh] proclaimed him the beneficiary of soft treatment ... because he is black." CSMG Sports Exec VP/Player Marketing Nova Lanktree, who reps McNabb, said, "I think I'd put it this way. The dignity he showed in dealing with the incident reinforced his star power." Lanktree said that McNabb has not signed any new deals since the Limbaugh controversy, but noted that endorsement deals "are almost always negotiated in the off-season." Lanktree: "The next round looks really, really good." McNabb already has national endorsement deals with Campbell's Soup, DirecTV, Lincoln Financial, the NFL, Reebok and Visa (PHILADELPHIA INQUIRER, 12/4).
GAME ON: ESPN Videogames signed Yankees 1B Jason Giambi as the official spokesperson and cover athlete for "ESPN Major League Baseball," which will also feature the voices of ESPN's Jon Miller and Karl Ravech (ESPN Videogames).
MORE FACES: BRANDWEEK's Hilary Cassidy reports, "DC Shoes will bow a signature shoe for BMX freestyler Dave Mirra this month at skate and snowboard specialty shops" (BRANDWEEK, 12/1 issue)....Bauer Nike Hockey launched its Vapor XX full composite stick at retail throughout North America. Bauer Nike Hockey also signed Senators RW Marian Hossa and Blues D Barret Jackman to endorsement deals (Bauer Nike Hockey).
Wildcats Receive $1M Worth Of
Free Product Under Nike Deal
Univ. of Arizona coaches received "more than $1[M] from outside sources" in '02-03, according to reports cited by Inger Sandal of the ARIZONA DAILY STAR. Nike "provided the largest share," over $660,000, to the 14 head coaches, while summer camps and clinics, and TV/radio shows totaled almost $250,000. Men's basketball coach Lute Olson, who gets the most from Nike at $350,000, said that "winning the national championship helped raise his pay from Nike." But Olson added, "If you compared (shoe contracts) to Duke or Michigan or Kentucky, it's probably a third. They have to go on the basis of how many pairs of shoes (might be sold). With the state of Arizona and the population, it's not going to be as much." UA Senior Associate AD John Perrin said of the Nike association, "We get a million dollars a year in free product that we would otherwise have to buy, it's a terrific deal for the University of Arizona." On using sponsor money to attract coaches, Perrin added, "If the market required to pay $750,000 and Nike paid $100,000, you'd only have to come up with $650,000." Sandal noted UA's new football coach Mike Stoops received $650,000 in salary and bonuses, as well as an expected $100,000 from Nike. Regent Jack Jewett "remains concerned about overreliance on corporate sponsorship," but said the board is "first concentrating on academic performance" (ARIZONA DAILY STAR, 12/3).
Redskins Raking In $30M Annually
In Sponsorship Revenue
The Redskins' sponsorship revenue is over $30M per year, "the highest in the [NFL]," according to Eric Fisher of the WASHINGTON TIMES, who writes the team is "stretching well beyond the traditional categories of sodas, fast food, beer, cars, athletic apparel and financial services." Redskins game promotions include the McDonald's Fan of the Game, Capri Sun Kid of the Game, Kodak Fan Photographer of the Game and Solar Planet Cheerleader of the Game. Redskins VP/PR Karl Swanson: "Are we looking for every way to make connections with sponsors and enhance our relationships? Yes. Do we tinker with relationships sometimes to find new avenues of promotion? Yes. None of that is really unusual." Solar Planet, in addition to being the team's official tanning services provider, also sponsors the Redskins calendar and appearances by the cheerleaders. Solar Planet Owner Scott Shortnacy: "This has been a fantastic association for us, and something we've worked on for some time. This is a great way for us to be even more credible than we already are." The Marketing Arm Chief Strategy Officer Chris Smith: "The activation of this type of marketing is tricky. Unless it really makes sense with your brand, it simply raises the level of clutter during a game. But you're certainly going to see it continue unless and until we see a real backlash from fans" (WASHINGTON TIMES, 12/4).
AutoZone has signed on as title sponsor of the NASCAR Elite Division, which will be renamed the NASCAR AutoZone Elite Division, consisting of four regional racing series in the Midwest, Northwest, Southeast and Southwest. The series, which features Late Model cars, serves as a feeder to the NASCAR Grand National Division and NASCAR's three national series (Autozone).
RACING FORWARD: Winston Cup champion Matt Kenseth and NASCAR Chair Brian France appeared on CNBC's "Capital Report" last night to discuss the future of NASCAR. ("Capital Report," CNBC, 12/3). On FSN's "BDSSP," Kenseth said of NASCAR's new title sponsor Nextel, "I don't think a lot of things are going to change besides the name change. The only thing that will be good for the sport is that Nextel is going to be able to advertise more and market more in areas because there's no age restriction (like on tobacco companies)" ("BDSSP," FSN, 12/3).
KODAK MOMENT: Morgan-McClure Motorsports GM Larry McClure said, "We should have our major sponsor signed by Dec. 8. ... And Kodak will still be an associate sponsor on our car for the next three years." MEDIA GENERAL NEWS SERVICE's Allen Gregory noted Kodak, which had served as primary sponsor on the M-M No. 4 car for 18 years, has "heard proposals from six teams," including Roush Racing, Bill Davis Racing and DEI. But Penske Racing South "has suddenlyAndretti Will Remain Behind The
Wheel Of The No. 1 Car
SPONSOR SEARCH: USA TODAY's Graves & Jenkins report John Andretti will drive DEI's No. 1 Chevrolet in the Daytona 500, but "sponsorship problems might prevent the team from racing a third full-time car" in '04. DEI has not found a primary sponsor for the No. 1 car, which will run in five-to-eight events next season with drivers Andretti and Martin Truex Jr. (USA TODAY, 12/4).