SBJ/November 26 - December 2, 2001/Marketingsponsorship

Inside the deal


THE DEAL:

Tyco/ADT signs as presenting sponsor of Ericsson Open, a combined ATP and Sanex WTA Tour event.


ESTIMATED VALUE:

$750,000-$1 million a year


LENGTH:

Three years, starting in 2002


DEAL MAKERS:

Jay Stuck, vice president of residential marketing and corporate communications, ADT; Adam Barrett, executive vice president, Ericsson Open; Dagny Woodcock Potter, senior vice president of sales, Ericsson Open; Bill Marshall, president, T.E.A.M. Marketing


KEY ELEMENTS:

Status as the presenting sponsor of the tournament

Corporate identification on tournament logo

Back-wall signs on all courts, including four signs on championship court plus signs on umpire chair boxes

Commercial units (30 seconds) on CBS Sports (five) and ESPN (six) plus open/close billboards

Corporate identification on all advertising, print and promotional materials

Private entertainment venues with sponsor suite and hospitality marquee plus box seats to 22 sessions

Access to on-site area to stage interactive product displays

Opportunity to stage Security Caucus during event


BACKGROUND:

ADT is a unit of Tyco Fire and Security Services, the largest provider of electronic security services. It has 5 million commercial, federal and residential customers in North America and Europe. Tyco and ADT sponsor a car on the CART racing circuit and title-sponsor the Tyco/ADT Championship, the final event on the LPGA schedule.

ADT is an advertiser in many NFL game programs. The company was a midlevel sponsor of the Ericsson Open the past three years. Tyco/ADT was represented by Bill Marshall of T.E.A.M. Marketing, Boca Raton, Fla.

Title sponsor Ericsson announced it will opt out of its deal after the 2002 tournament. The tournament is considered the fifth-most prestigious tennis event, after the four Grand Slams. Last year, the tournament attracted 270,000 spectators to the Miami venue.

In addition to the Tyco/ADT deal, tournament marketers have signed new deals with United Airlines, Championlyte sports energy drink, Life O2 bottled water and Warsteiner Beer. The 2002 tournament will have five hours of coverage on CBS and 27 hours on the ESPN networks.


ANALYSIS:

Everyone has a story about hard times, but the organizers of the Ericsson Open could write a novel about sponsorship woes. Their story, however, should have a happy ending.

The problems started with the bankruptcy of ISL, the agency contracted to sell sponsorships for ATP events. (That means the Ericsson Open staff has sponsorship sales responsibilities for the first time in three years.) Then, Ericsson announced it would step down from its title sponsorship after three years of its five-year contract. The event marketers have rebounded quickly with the Tyco/ADT deal, an unfortunately relevant sponsor for the current times.

Other new sponsorship deals in the airline and beverage categories show that sponsors are still active when the event is a good fit. Look for Tyco/ADT to become a more active sports sponsor as it plans to seek deals at title- and presenting-sponsor levels.


Alan Friedman (alanf100@excite.com ) is the founder of Team Marketing Report.

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