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Marketing and Sponsorship

U.S. Automakers To Continue NFL Sponsorships, No Plans To Pull Advertising

Automakers "have no plans to cut advertising ties" with the NFL as criticism continues over the league's "handling of player misconduct involving domestic and child abuse allegations," according to Michael Wayland of the DETROIT NEWS. Some of the "top-spending companies for NFL broadcasting," including GM, Ford, Chrysler and Toyota, said that they have "no plans of pulling ads or sponsorships this season." GM Dir of Product & Brand Communications Patrick Morrissey said, "We aren't going to change our sponsorship." He added that the company "does not plan to cancel any advertising." GM Head of Global Product Development Mark Reuss yesterday "affirmed that position." He said that there was "no update or any more discussion at the executive level about GM's official sponsorship of the league." GM spent $173M on "broadcasting advertising" last season and on through the Super Bowl. GM has been an "official NFL sponsor" since '01, and a GMC has been the "Official Vehicle of the NFL" since '09. Reps for Ford and Chrysler said that they have "made no changes to their advertising plans; neither is an official sponsor." Chrysler said that it will "continue to monitor the NFL's actions" (DETROIT NEWS, 9/24).

PROTECTING THEIR BUSINESS: In N.Y., Sandomir & Steel note some sponsors have "issued statements, a few tougher than others, but their top executives have been loath to speak publicly, either to chastise or to support the league." No sponsor has "pulled out of its deal, although Radisson Hotels suspended its sponsorship" of the Vikings after RB Adrian Peterson was accused of child abuse, and Procter & Gamble's Crest "dropped its sponsorship from the league’s breast cancer awareness program." While "distancing themselves from the domestic violence cases, sponsors do not want to dissociate themselves from the NFL, a singularly powerful marketing outlet." If they "speak out too forcefully against the league, sponsors could hurt the league when it is down." They could also "hurt themselves because of an association they have built over time." Former Anheuser-Busch VP/Global Media Tony Ponturo said, “Either way, it is all about protecting your business." Sandomir & Steel write sponsors "stick with the NFL for years, not weeks, because its game broadcasts attract mass audiences that cross the boundaries of age, race and gender." Sponsors "cutting their ties to the NFL -- or even temporarily pulling ads or distancing a brand from the league -- is not likely to happen since it can have ramifications for a company’s broader strategy." Landor Associates North American Region Chair Allen Adamson said, “The NFL is the only game in town. It is not like they can take their sponsorship and marketing dollars to baseball or Ping-Pong.” Repucom Head of U.S. Consulting Michael Lynch said, “If a sponsor pulls out, they may be hard-pressed to get back in when the issue has been resolved to their satisfaction” (N.Y. TIMES, 9/24).

STANDING PAT: In Baltimore, Jeff Barker reports Under Armour is "sticking with its beleaguered corporate partner" in the Ravens. Verizon Wireless also said that it will "continue to partner" with the club. UA's logo was "visible behind" Ravens Owner Steve Bisciotti on Monday as he "addressed the club's handling" of the Ray Rice case during a news conference. The company in a statement said, "We value our relationship with the Ravens and they have been a tremendous partner in a shared initiative to strengthen the Baltimore community. We believe they will work through this and find ways to have a positive societal impact in efforts to stem domestic violence." Verizon Wireless, which is among about 100 team sponsors, "reiterated its support" yesterday, referring to a Sept. 18 statement (Baltimore SUN, 9/24). In Baltimore, Ryan Sharrow reports in the 24-hour span since Bisciotti's press conference began, Front Row Marketing Services estimates UA "received $915,108 in brand value." That "includes the logo on the backdrop, text on screen showing the venue's name as the 'Under Armour Training Center' and the logo on the exterior of the building during shots" (BIZJOURNALS.com, 9/24).

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