Miles Away From The Beach: Corona Extra To Be Main ATP Sponsor

The ATP announced this morning that Corona Extra had signed a five-and-a-half-year contract to become the main sponsor of the men’s tennis circuit. In an interview yesterday, ATP World Tour Exec Chair & President Adam Helfant said about two-thirds of the tour’s more than 60 tournaments would use Corona Extra’s logo on their nets by '11, with the others choosing to retain their current beer sponsors. Helfant said Corona, America’s number one beer import, wanted to use the ATP as an international platform to export its brand globally. He declined to comment on deal terms, how the deal came together, or if either side has an opt out provision in the contract. Sources pegged the deal’s value as similar to what Mercedes-Benz paid in the last three years of its deal, which expired in '08. The value of the Mercedes deal was about $13M annually. That would translate into a value of just over $70M for the ATP. “We have admired the success of the sport in recent years and view the ATP World Tour as a terrific platform for us globally,” said Jose Pares, chief of sales and marketing for Grupo Modelo, the Mexican beer company that owns Corona. Helfant, asked if he anticipated any criticisms of the ATP for linking its identity to a beer company, responded that brewer sponsors were common in sports. He did say some countries had restrictions on beer sponsorships that would affect elements of the ATP deal, and the Tour is working through those now. He mentioned France, Russia, Monaco and Sweden as countries with such restrictions. The deal will become effective next month or in April, he said. The deal is not an entitlement of the Tour. It makes Corona Extra the top sponsor, meaning it gets the net branding and other marketing rights. Helfant said he expected the company to activate aggressively around the sponsorship, and that the discussions had always focused on the Extra brand as opposed to Corona Light (Daniel Kaplan, SportsBusiness Journal).

POSITIVE SIGN FOR THE TOUR: In N.Y., Ken Belson writes filling the vacant premier sponsor position "is a significant shot in the arm for the ATP and an indication that companies are feeling comfortable enough about their economic prospects to sign long-term sponsorship deals." Helfant said that the ATP "looked at a range of companies and brands, but it ultimately chose Corona Extra because the product is sold globally and is consumed equally by men and women" (N.Y. TIMES, 2/22). In London, Neil Harman reports the ATP is "expected to make further announcements within weeks on additional sponsorship deals." Helfant also "expects a 'double digit' percentage increase in revenue from the various television deals that are being renegotiated" (LONDON TIMES, 2/22).

SURPRISING MOVE FOR CORONA: SPORTSBUSINESS JOURNAL's Kaplan reports many marketers "were surprised" at Corona's move into tennis. Millsport Chair Bob Basche said, "I am a little shocked, actually. It is a little bit of a category reach." N.Y.-based Strategic Agency President Peter Stern said, "It's a disconnect. With the positioning Corona's established, I'd expect them to move into something like the AVP if they wanted to add a league sponsorship. It may be a means to an end in terms of the brand expanding into Europe, but I'd rather see them do something on the beaches of St. Tropez, rather than risk losing the ownership they have with vacation and beer" (SPORTSBUSINESS JOURNAL, 2/22 issue).