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THE DEAL:
24 Hour Fitness signs as an official sponsor
of USA Volleyball.
ESTIMATED VALUE:
$300,000-$350,000
LENGTH:
Two years
DEAL MAKERS:
Chris Marek, director of new business development, 24 Hour Fitness USA;
Chris Stuart, senior director of corporate development, USA Volleyball
KEY ELEMENTS:
Official sponsor and fitness center of USA Volleyball
Rights to use USA Volleyball logo
Provide USA Volleyball athletes and staff with workout facilities across
the country
Official sponsor of the USA Volleyball championships, the World League
competition and USA Girls and Boys Junior Olympic championships. At
these events, 24 Hour Fitness receives tickets, hospitality and signs.
Opportunity to test sales of USA Volleyball licensed items at pro shops
at 24 locations of 24 Hour Fitness
Full-page, four-color advertisement in USA Volleyball quarterly magazine
Establishment of an employee recruitment program that facilitates employment
for USA Volleyball athletes with 24 Hour Fitness
BACKGROUND:
24 Hour Fitness USA has its headquarters in Pleasanton, Calif., and has
more than 1.5 million members in more than 285 clubs in 15 states. Its
24 Hour Fitness Team Sports program offers training facilities at no cost
to more than 9,000 high school student athletes. The company is
an active sports sponsor and has endorsement deals with LPGA golfers Tracy
Hanson and Pamela Kerrigan. Team sponsorships include deals with the Oakland
Raiders, San Diego Chargers, San Francisco 49ers, Seattle Seahawks, Dallas
Stars, San Jose Sharks, Bay Area CyberRays, Los Angeles Avengers and Colorado
Rockies. 24 Hour Fitness Team Sports has deals with USA Weightlifting
and USA Wrestling.USA Volleyball has its headquarters in Colorado Springs,
Colo. The national governing body has more than 145,000 members. Mizuno
Corp. recently signed a four-year extension of its sponsorship with USA
Volleyball. The national governing body is negotiating with United Airlines
to renew its deal. Other sponsors include General Motors, Molten, Speedo,
Sport Court and Texaco.
ANALYSIS:
Like all the deals in its extensive
portfolio of sponsorships, 24 Hour Fitness uses its sports ties to authenticate
its brand. As the company pushes eastward with locations, it will continue
to expand on deals with teams and national governing bodies. USA Volleyball
doesn't have substantial visibility elements to offer to sponsors, but
access to its 145,000 members is a strong attraction for a company that
sells health club memberships. The deal gives the national governing
body an outlet (besides its Web site) to sell merchandise, and this
could generate a modest amount of revenue. What's more significant is
that the deal could increase awareness for USA Volleyball and produce
an increase in membership. And that adds value to future sponsorship
deals marketed by the organization.
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