Kauffman Close To Buying Ganassi Stake Chinese Court Rules Against Jordan SMI Misses Q2 Expectations Relativity Sports Unaffected By Layoffs DSG Ads Depict Sports Matters Program Dolphins Launch Fan Voting Campaign Bridgestone, NHL Renew For Five Years Fox Networks Group Hires Maged IOC President Blames Boston For Failed Bid Strong Sales For Belk Kickoff Game
SBD/January 29, 2013/Marketing and SponsorshipPrint All
Representatives for both 49ers QB Colin Kaepernick and Ravens QB Joe Flacco said that “the focus will remain” on Super Bowl XLVII this Sunday and “not on cashing in off the field,” according to Liz Mullen of SPORTSBUSINESS JOURNAL. XAM Sports PR & Marketing Dir Shawn Smith said that Kaepernick has “agreed to one pre-Super Bowl deal, but it is unlikely he will sign any long-term partnerships before the game.” She added that she “has received numerous calls from corporations interested in a potential relationship with Kaepernick.” Smith said, “I am not bringing those deals to him right now. That is the way he wants it and that is the way it has to be.” A source said that the endorsement Kaepernick “did agree to do was with the Milk Processor Education Program for the ‘Got Milk?’ Super Bowl campaign, which traditionally debuts the Friday before the Super Bowl.” Smith said that there “is a possibility that Kaepernick will do an ‘I am going to Disney World’ deal that is traditionally done by the game’s MVP and that she has been contacted by late-night talk shows eager to book her client.” JL Sports VP Tom Kleine, the marketing agent for Flacco, said that it “was possible Flacco will agree to a Disney deal, but it is unlikely he will do anything that requires him to sit for a commercial or photo shoot.” Kleine added that he “was contacted by representatives of the Milk Processor Education Program about a ‘Got Milk?’ advertisement but turned them down because Flacco was focused on football” (SPORTSBUSINESS JOURNAL, 1/28 issue).
SIBLINGS IN SYNC: AD AGE’s Michael McCarthy wrote neither 49ers coach Jim Harbaugh nor Ravens coach John Harbaugh “has the kind of boisterous John Madden-like coaching personality that appeals to Madison Avenue.” Still, sports-marketing experts said that together they “could pull off the type of sibling ad campaigns done” by Giants QB Eli Manning and Broncos QB Peyton Manning for Oreo, DirecTV and ESPN and tennis players Venus and Serena Williams for Apple iPhone and Avon. Octagon First Call Managing Dir David Schwab said, "They're more powerful as a pair than they are individually. They would make more money, too" (ADAGE.com, 1/28).
GET YOUR HEAD IN THE GAME: Football equipment maker Xenith announced that it has extended its partnership with Ravens RB Ray Rice, who began serving as an ambassador for the company in ’12. Rice will continue to promote Xenith’s X2 helmet while now serving as the face of Xenith’s national player safety campaign and promotions for the company (Xenith).
CBS' Super Bowl XLVII broadcast on Sunday “will see new ads from Universal, Disney and Paramount before and during the matchup” as Hollywood studios are “preparing trailers for their big-budget releases,” according to Sophie Schillaci of the HOLLYWOOD REPORTER. Universal will “unveil its first trailer” for “The Fast and The Furious 6." Paramount will preview “World War Z” starring Brad Pitt “during the pre-show telecast.” A 30-second trailer for J.J. Abrams' “Star Trek Into Darkness” “will play during the second quarter of the game.” Disney has three films “to promote this weekend, mixing pregame and game coverage" for "Oz the Great and Powerful," "The Lone Ranger" and "Iron Man 3." Fox and Sony have “no plans to air commercials during the game,” and Warner Bros. also is “opting out of the action” (HOLLYWOODREPORTER.com, 1/28). DEADLINE.com's Dominic Patten noted The Weinstein Company and Lionsgate studios also have not "purchased any ad time" (DEADLINE.com, 1/28).
ONE GIANT LEAP FOR MANKIND: AD WEEK's Tim Nudd noted Axe's first-ever Super Bowl ad "features a woman in a skimpy bikini jogging rather bouncily along a beach," and "not surprisingly, she's running toward a geeky dude who plays in a romantic league several divisions below hers." The twist is the "geeky dude is an astronaut." The 30-second spot created by BBH London is "due to air in the third quarter." It "pitches Axe's new Apollo line of products -- thus, the astronaut theme" (ADWEEK.com, 1/28).
COURTING CONTROVERSY? Volkswagen's Super Bowl ad features a white male office worker from Minnesota speaking to co-workers in a Jamaican accent because he is so relaxed driving his VW around town. VW America Exec VP and Chief Product & Marketing Officer Tim Mahoney indicated that the automaker "obviously did our homework to make sure that we weren’t offensive,” including conducting research "to make sure that we weren’t going in a direction that we didn’t want to go." NBC's Natalie Morales notes VW "consulted about 100 Jamaicans, that included a speech coach on the commercial set, to make sure they got the accent and dialogue right.” NBC’s Savannah Guthrie said, “While some people think the ad is funny and effective, others think it is a little bit offensive.” Mediapost.com Editor-at-Large Barbara Lippert said she was “shocked” when she first saw the ad. Lippert: “I said, ‘Didn’t anyone look at this.’ This is so racist. My problem with this is there’s no link to Volkswagen. It’s a German car and they’re showing happy people because they have black accents, and maybe Jamaicans didn’t find it offensive for Jamaican beer or something. But it’s just saying that black people are happy.” NBC’s Matt Lauer took a “completely different view” of the VW ad because he “thought if you buy this car, it puts you in a happy place and what’s happier than the memories we all have of being on beautiful islands on island time.” NBC’s Al Roker said the ad has “that Jar Jar Binks from ‘Star Wars’ kind of effect that it just doesn’t make any sense” ("Today," NBC, 1/28).
YO QUIERO SUPER BOWL AD: Taco Bell CEO Greg Creed appeared on "CBS This Morning” today to discuss his company’s 60-second Super Bowl ad, which is available to view online. CBS’ Gayle King asked if Creed was concerned about diminishing the spot's impact since it is being seen early. Creed said, “We've got 10 million Facebook fans and they're already showing it. I think if you live in a social world, it's all about sharing. What we love to do is to not only share it, but have people share it. I think you're going to find come the game, people are going to go, ‘Shhh, shhh, stop, stop, you got to watch the Taco Bell ad.’” He added, "Taco Bell fans love two things. They love sport. Well, this is obviously the sporting event of the season, probably of the year, and they love music. So what we’ve done with the ad is to combine our love of music in a sporting event and that really brings it all together for us” (“CBS This Morning,” CBS, 1/29).
IS IT WORTH IT? Deutsch Inc. Chair Donny Deutsch appeared on NBC’s “The Tonight Show” last night and noted the cost of a 30-second ad during the Super Bowl sold for close to $4M. Host Jay Leno asked, “Is it worth the cost?” Deutsch: “It’s worth it if you merchandise it right. The advertisers that tease it on the Internet and the ones that do contests, the ones that engage consumers, like Doritos where people make up their own commercials and send them in” (“The Tonight Show,” NBC, 1/28). ABC’s Linsey Davis YouTube research states that Super Bowl ads "shown before the game get 600% more views, so companies are scrambling to the biggest bang for their bucks.” Davis said advertisers "are trying anything and everything to score big” due to the cost of a 30-second spot, and what “they’re banking on is this year’s winning play will be putting the power into the hands of the viewer.” Davis: “This year is all about interaction and social media.” Ad Week Exec Editor James Cooper said this year’s game “will be the most democratic and social Super Bowl in history." Cooper: "They really want people involved in these ad campaigns because there is so much pressure. This is a gigantic investment and they really want these things to have a long shelf life” (“GMA,” ABC, 1/29).
EPL club Manchester United’s commercial revenue “is now approaching an astonishing” $204M (all figures U.S.) a year and “will only continue to rise,” according to Laurie Whitwell of the London DAILY MAIL. There are “no fewer than 32 companies listed as sponsors of the club on their official website and this does not even include three -- somewhat peculiar -- deals announced this month.” First there was “the tie-up with Indonesian tire manufacturer Multistrada on January 7, then came Wahaha, a Chinese soft drinks producer, a week later, and on January 18 we heard Japanese paint manufacturer Kansai had become the club’s first ‘paint partner.’” Each contract will run for three years, and business experts speculate they are worth between $1.6-3.1M annually. These are the “types of deals staff in United’s recently-opened office in Hong Kong are striving to sign; brands specific to regions.” There also is the club’s shirt sponsorship with Chevrolet, "which will come into effect from 2014.” At the start of that season it will be worth $69M a year, "increasing by 2.1 per cent annually to 2021 -- totalling an incredible” $559M. These numbers “do not make it into United’s current take home from sponsorship," but the $18.9M Chevrolet has paid to "have its logo on the Old Trafford dugout seats this season does.” Aon pays United $31M a year “to sponsor the shirt currently," while DHL since '10 has paid $16M a year "to feature on the team’s training kit.” In addition, it costs Nike around $40M “to supply United’s kit each season but talks will begin next month over a new deal which should dwarf that amount.” Brand Finance Valuation Dir David Chattaway, whose company “worked with United on a consultancy basis a few years ago," said that there was "plenty of mileage left in sponsorship deals and suggested Australia and USA would be the next markets targeted” (London DAILY MAIL, 1/29). Meanwhile, ManU today announced that Singha has renewed its deal as the official beer partner of the EPL club. The original three-year agreement is extended by another three years to '16 (ManU).
MANCHESTER UNITED CLUB SPONSORS
SPONSOR CATEGORYANNUAL VALUE (USD) Nike Kit supplier$40M Aon Shirt sponsor$31M Chevrolet Auto$18.9M DHL Logistics$15.7M Hublot Timekeeper$6M Bwin Online game and betting$3.8M Singha Beer$3M Casillero Del Diablo Wine$3M Thomas Cook Travel$2M Smirnoff Responsible drinking partner$1.6-3M Toshiba Medical Systems Medical$1.6-3M STC Integrated telecommunications (Saudi Arabia)$1.6-3M PCCW Integrated telecommunications (Hong Kong)$1.6-3M Turkish Airlines Airline$1.6-3M Epson Office equipment$1.6-3M Mister Potato Savoury snack$1.6-3M Yanmar Global$1.6-3M TM Integrated telecommunications (Malaysia)$1.6-3M Globacom Integrated telecommunications (Nigeria, Ghana, Benin)$1.6-3M Viva Kuwait Integrated telecommunications (Kuwait)$1.6-3M MTN Integrated telecommunications (South Africa, Zambia, Rwanda, Uganda, Swaziland, Botswana)$1.6-3M Airtel Integrated telecommunications
(India, Sri Lanka, Seychelles, Bangladesh)$1.6-3M
Zong Integrated telecommunications (Pakistan)$1.6-3M Globul Integrated telecommunications (Bulgaria)$1.6-3M Mamee Noodles (Asia, Oceania, Middle East regions)$1.6-3M Viva Integrated telecommunications (Bahrain)$1.6-3M Turk Telekom Integrated telecommunications (Turnkey)$1.6-3M A.P. Honda Motorcycle (Thailand)$1.6-3M Airtel Africa Integrated telecommunications (Burkina Faso, Chad,
Democratic Republic of the Congo, Gabon, Kenya,
Madagascar, Malawi, Niger, Sierra Leone, Tanzania,
Republic of the Congo)$1.6-3M
Beeline Integrated telecommunications (Vietnam, Cambodia, Laos)$1.6-3M Bakcell Integrated telecommunications and broadcast partner (Azerbaijan)$1.6-3M Kagome Soft drinks (Japan)$1.6-3M Wahaha Soft drinks (China)$1.6-3M PT Multistrada Tire$1.6-3M Kansai Paint$1.6-3M
MONEY, MONEY, MONEY: FORBES.com's Mike Ozanian reported ManU has become "the first sports team in the world" with a $3B valuation. Shares of the club, which were offered to the public last August at $14, "did poorly at first but have soared the past few days," closing at less than $17. The recent increase in its stock price has pushed up the club's enterprise value (equity plus debt) to $3.3B, the "highest value of any team in the world." The second most valuable sports team in the world is the Cowboys, worth $2.1B (FORBES.com, 1/27). The MANCHESTER EVENING NEWS noted the valuation "means a huge increase in the overall wealth of the Glazer family," who has a controlling interest in the club, and billionaire investor George Soros -- the 22nd richest person in the world -- who bought a 7.5% stake in ManU. The club's commercial growth "appears to be driving the share price up, with the club announcing several new sponsorship deals since August" (MANCHESTER EVENING NEWS, 1/28).
Green Earth Technologies signed a sponsorship with Daytona Int’l Speedway to make its G-Oil the track’s official motor oil. The company signed a three-year agreement with an option for a one-year renewal. Financial terms were not available. G-Oil will wrap trams during the Daytona 500. It will promote itself in commercials as the official motor oil of the Daytona 500 and feature the DIS logo on its packaging and print advertising. The company also will promote its two-cycle and four-cycle motor oil. It plans to create consumer sweepstakes and retail sweepstakes that award trips to races at Daytona. Green Earth Technologies Founder, President & CMO Jeff Loch said, “As a consumer, there’s still that barrier that was set before we got into the space of performance. As much as we want to tout the green message, our primary message has to be performance, and nothing demonstrates performance more than NASCAR. Daytona is the granddaddy of them all.” The track has not had a motor oil sponsor since Valvoline’s deal ended in ‘07. DIS President Joie Chitwood said, “The time without a motor oil sponsor corresponds with the time when there were less motor oil sponsors on cars. But (Green Earth Technologies is) a Florida-based company and they hit things that we’re all trying to do, which is to focus on the green effort and find partners that can work with you in that area.” The DIS sponsorship deal comes less than a year after Green Earth Technologies signed a sponsorship to become a NASCAR Green sponsor.