SBJ/March 5-11, 2012/Leagues and Governing Bodies

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  • NASCAR retooling more active Web presence

    The future is beginning to take shape.

    Months after closing a deal with Turner Sports to reclaim control of its digital assets, NASCAR’s head of digital media Marc Jenkins has begun imagining what the site will look like after it relaunches in 2013. He sees a vibrant site with a home page filled with NASCAR-related news and videos as well as links to separate driver pages with driver-specific news and video.

    In short, he sees a site not all that different from the one that other major leagues have — a home page with league-related news and links to team sites with team-related information. It’s a vision that he will take on the road this week as he begins meeting with teams to talk to them about the future of

    “We spent a lot of time figuring out what users are going to our site for,” Jenkins said. “We want to have that same balance between league sites and team sites.”

    NASCAR has hired SapientNitro to help develop the new site. The company built and also worked with Chip Ganassi Racing on its team websites. Jenkins said that in its meeting with teams, NASCAR will discuss whether team pages should be featured in addition to driver pages on and who would be responsible for posting articles and videos to them.

    “They’ve got some of the best creative minds,” Jenkins said. “They’re able to take a vision and add value to it.”

    When Jenkins meets with teams, he will be soliciting their opinions for how driver pages and team pages might look and be populated with news and information on He’ll also be talking to them about how much they’ll contribute to the news that appears on those pages.

    Currently, features static driver pages. Turner Sports, which manages the site, updated driver sponsor information and the teams they are racing for shortly before drivers showed up in Daytona for races. The driver pages will be updated each week with where they finished in races, but won’t feature any articles about the driver or additional information.

    Jenkins envisions having general stories about race results and news in the sport, and fans being able to link through to driver pages that have short stories with a driver’s perspective on his individual performance in a race and other feature articles that illuminate the driver’s personality off the track.

    In addition to meeting with teams in the coming weeks, NASCAR will begin hiring staff to support the redevelopment of Jenkins said he will hire a handful of direct reports first and then hire staff to support them. He believes the team he brings on board will be designing the new site at the perfect time.

    “We’re on the cusp of knowing where social [media] is, where the user interface is, what the third experience is,” Jenkins said. “The way you interact with computers is changing, and we can build for that.”

    SPONSORS REV UP: For the first time in three years, sponsors’ displays filled the midway at Daytona International Speedway. The addition of displays by brands activating for the first time, such as Banana Boat, Farmers Insurance and Goodyear, pushed the total number of partners activating in the midway up 14 percent from last year to 40 companies. It’s the highest level of activation at the track since 2009.

    NASCAR officials and agencies, who saw companies pull back on activation spending during the recession, were encouraged by the increased interest this year.

    “We all need data, and that’s my take on what everyone is doing,” said Daytona International Speedway President Joie Chitwood III. “There’s a real effort now to engage fans, and at Daytona you’re going to drive more volume and you’ve got 10 days to set up and reach people.”

    Executives from Goodyear, which set up a display at Daytona for the first time, were encouraged enough by the foot traffic they generated during Speedweeks to consider
    Goodyear set up an interactive display at Daytona for the first time this year.
    Photo by: WUNDERMAN (2)
    setting up at other tracks later this year. Goodyear’s display featured a 15-by-40-foot Plinko game where fans could drop a tire down a board filled with pegs and win a prize if it landed on a large Goodyear logo at the bottom. The activation was developed by Wunderman and attracted more than 1,000 fans a day, on average.

    “I expect you’ll see us back here in July, and we’re looking at other tracks we have relationships with to see what makes sense and where,” said Kris Kienzl, Goodyear NASCAR marketing manager.

    NASCAR GOES HOLLYWOOD: NASCAR’s Los Angeles office is making headway on two new projects: a behind-the-scenes show on young drivers, and a scripted movie about the early days of NASCAR, which Vince Vaughn has signed on to help develop.

    Vince Vaughn has signed on to work on a NASCAR movie project.
    Photo by: GETTY IMAGES
    The sanctioning body is developing an original show on young drivers and is shopping the show around to potential networks. The show follows drivers such as Sprint Cup star Joey Logano, 21; Nationwide Series champion Ricky Stenhouse Jr., 24; Nationwide Series driver Johanna Long, 19, and others to reveal what their lives are like behind the scenes. It still doesn’t have a name or logo; that will be determined by who ends up buying it. NASCAR has partnered on the show with producer Mark Burnett, the executive producer of “Survivor.”

    The scripted movie project is very early in its development phase. The idea is to create a movie that’s part biopic, part origin-of-NASCAR story that would see Vaughn play the role of Bill France Sr., from the creation of NASCAR in the 1940s to its showdown years later with Jimmy Hoffa, who was trying to unionize drivers in the 1960s.

    “It’s very early in the development, but we are in business together,” said Zane Stoddard, managing director, entertainment marketing and business development at NASCAR. “It could be a really exciting project.”

    FRANCE REACHES OUT: NASCAR CEO Brian France did more outreach to the sport’s constituents than ever before prior to this year’s Daytona 500.

    The sport’s top boss sent an email to media prior to Speedweeks thanking them for coverage; he delivered an open letter to fans the day of the race thanking them for their support; and in the weeks prior to the race, he mailed more than 15 handwritten notes and all-access, seasonlong credentials to chief marketers at several brands involved in the sport, including many team sponsors. It was the first time France had undertaken all of those efforts in a single season.

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  • This jersey sponsorship question is No. 1

    With the NBA positioning itself as the most global of leagues, will it soon join the rest of the world by selling advertising on uniforms? The sticky issue will be debated, if not voted on, at the next board of governors meeting in April.

    It’s a touchy topic, one that involves balancing some of the most influential league constituencies and addressing some thorny questions: Would uniform patches be league or team inventory? Will NBA broadcasters TNT and ESPN/ABC, or even uniform rights holder Adidas, want a piece of the action? Would the league take a PR hit as the first to accept non-endemic ads on uniforms?

    Of course, the most important issue is also the most basic. “The most appropriate question and the answer we’re all waiting for is, ‘What is it worth?’” said Golden State Warriors President and COO Rick Welts, who did the WNBA’s first uniform advertising deal between the Phoenix Mercury and LifeLock in 2009. “I am not suggesting this is an easy issue, but I feel like it is inevitable. We just have to agree on value and what it would look like.”

    On the WNBA Mercury’s jersey, sponsor LifeLock has the biggest presence.
    In the case of the Mercury, the biggest logo on its uniform became LifeLock’s across-the-chest jersey patch,while the team logo on the jersey shrank to about the same size as the Adidas logo. The WNBA followed suit last year, with a Boost Mobile ad patch deal on the uniforms of 10 of the league’s 12 teams.

    A study released last year by Horizon Media calculated that a brand logo across the middle of an NBA team’s jersey occupying 3.5 percent of the TV screen would produce $31.18 million in exposure value.

    However, the study did not factor in ancillary exposure on “SportsCenter” or other highlights and news shows, nor did it account for any online exposure.

    “Jersey ads are one of the last pieces of inventory that club marketers haven’t been able to sell, and for a local sponsor they could be a real boon, since it would give them exposure with a team at home and away,” said Michael Neuman, managing partner of Horizon’s Scout Sports and Entertainment.

    The impact on some of the NBA’s more tradition-bound logos, and the disparity between potential revenue in various markets, are other factors to consider. Still, it’s hard to imagine a club marketer voting against the proposal, especially if would be their inventory.

    “Obviously, it’s a league decision, but as someone who spent seven years at NASCAR, I know the value of putting a brand on the playing field and the uniform, so it is certainly something I would support,” said New Jersey Nets CEO Brett Yormark. “You can monetize this in ways you can’t monetize any other kind of marketing inventory. And, of course, we’re in the No. 1 market in the country, so …”

    But other team executives are more hesitant about blending team marks with a company logo as they address questions such as size and placement on the uniform.

    “It is something we are wrestling with,” said an NBA team executive from a large market. “There are challenges, and the question is whether there is a way to do it differently.”

    From potential sponsors, there’s an appetite.

    “Without a doubt, there’s already interest,’’ said Mark Tatum, NBA executive vice president of global marketing partnerships, outside the league’s annual All-Star Technology Summit that was held at Orlando’s Waldorf-Astoria. “It’s certainly not automatic, but if we do it, it would be a big deal, so we are spending a lot of time evaluating.”

    Photo by: NBAE / GETTY IMAGES
    Added Sal LaRocca, NBA executive vice president of global merchandising: “The good news is that Adidas has a lot of experience with this from their football [soccer] business. We continue to talk internally about the best way to approach the market, determining whether having sponsored logos on jerseys would be incremental or just a diversion of money that would go somewhere else. We’re trying to balance a lot of constituencies.”

    The issue gets even stickier. Remember thatthe NBA is still the only major American
    The NBA Jam Session, where big shoes and full-size courts ruled the day, drew 91,671 to the Orange County Convention Center, but some observers longed for something more. “Every sponsor has a basketball court,” lamented Skechers CMO Leonard Armato.
    Photo by: TERRY LEFTON / STAFF
    sports property without any logo on its game uniform other than its own — Adidas has logos only on NBA warm-ups. One senior licensing industry source said Adidas was already in discussions with the league about moving its logo to the uniform, which might obviate the other conversations.

    “We are looking at all of the different elements and stakeholders, but it is an ongoing conversation,” said Chris Granger, executive vice president of the NBA’s team marketing and business operations department.

    Welts suggested one intermediate step might be an advertising patch on warm-ups. “I’m guessing that this would be a process, not a 0-to-60 rush,” Welts said.

    RECOVERY MISSION:  One could argue about how much the new collective-bargaining agreement will do to ensure profitability across the NBA, but there’s no debate among league and team officials and NBA business partners that the recovery from losing around 20 percent of the regular-season schedule was easier than expected.

    “We came out of it healthy and moved NBA money to college football and other places,” said Sean Bratches, ESPN executive vice president of sales and marketing, during an All-Star Thursday night reception. “We’re in a better place than I thought we’d be when it comes to NBA sales.”

    On the licensing side of the house, the lockout’s late November ending meant NBA licensees largely missed the holiday season. Earlier this year, NBA consumer products chief LaRocca estimated the collateral damage at 25 percent. In Orlando, he said that figure could be mitigated by pent-up demand. From when the NBA resumed play on Christmas Day, sales per square foot in the NBA Store on Fifth Avenue in New York City are up 400 percent from the year prior, and online sales are up 30 percent. Realize, of course, that in a normal year, post-holiday sales are mixed.

    “We missed the key selling season, which can’t be made up, but the pace we are on is encouraging, and Jeremy Lin is getting everybody excited about the NBA and NBA products,” LaRocca said.

    At the team level, sponsorship revenue is down about 10 percent on average, with group ticket sales also down about 10 percent.

    “Groups are the hardest because we lost the heart of our group sales season [during the lockout],” Granger said.
    While average attendance was flat during the first half of this year’s regular season, the league is at record levels of full-season ticket sales with about a 9,000 full-season sales average per team.

    Stern, at the Legends Brunch, drew a crowd for his state of the league address.
    Photo by: TERRY LEFTON / STAFF
    “We will also have the highest number of individual game sales in our history,” Granger said.

    Roughly half of NBA teams are now in the market for season-ticket renewals, and NBA research points to a low 80 percent renewal rate coming off the first half of the season, which brought double-digit increases in ratings across ABC/ESPN and TNT. League officials said the 80 percent rate was in line with previous years.

    On the corporate sales side, the four-year, $222 million deal for Sprint across the NBA, WNBA and D-League was the league’s largest.

    The league also brought Under Armour into the fold during the lockout.

    “Obviously, it was not a time when we could sell aggressively,’’ said Tatum, “We moved some assets and funding around, but I would say the impact on us was minimal. We got Sprint and Under Armour signed during the lockout, we renewed A-B, Gatorade and’’

    Pending renewals after this season include State Farm, Haier and HP.

    On the new business side, the league continues to target the airline category, with an overseas carrier a strong possibility.

    AMWAY CENTER IN THE SPOTLIGHT:  The All-Star Game was the biggest event held at the Magic’s Amway Center since it opened in late 2010 and the facility drew rave reviews from nearly all who passed through its wide concourses.

    The Amway Center, host to the game and ancillary events such as the Sprint Pregame Concert, drew rave reviews.
    Photo by: NBAE / GETTY IMAGES
    For team and city officials, the All-Star Game was the litmus test for their plans to attract other major events to drive revenue at the arena, which already has helped catapult the Magic to the seventh-largest revenue-producing team in the 30-team league.

    “When we were designing the building, we spent countless hours with the league office trying to understand what a building would need to host All-Star Weekend successfully, and we designed around that,” said Magic CEO Alex Martins. “We figured if we could include everything that the league needed to have the most All-Star ready building, then we would have included everything necessary to host Magic games all the way through the Finals. Fortunately, what the league needs to host the event, we were looking for in our core principles as well: great amenities and hospitality spaces; great technology, including the ability to ‘plug in’ and broadcast from anywhere in the building; great facilities for the players; ample facilities to host the media of the world; great outdoor space for pregame activities; great acoustics; great customer service and the best technology for visuals in the center-hung, LED and digital signage network.”

    One minor issue for the team to address in hosting future All-Star Games or an NCAA March Madness regional game: They must find a bigger interview room. The cramped quarters during NBA Commissioner David Stern’s state of the league address on Saturday night forced some into the hallways during one of the most critical events of the weekend.

    The rise of Lin, shown on a Panini trading card, is driving business for the Knicks and NBA China.
      Look for the New York Knicks to continue to leverage the NBA story of the year in Jeremy Lin. On the heels of the phenomenal rise of Lin, the Knicks announced during All-Star Weekend a marketing partnership with Taiwan-based tiremaker Maxxis International. The one-year deal is the Knicks’ first deal with an Asian company since Lin joined the team, but likely won’t be the last, with Lin expected to take a Nike-sponsored tour in China after the season.

    “It’s a great platform to China,” said Scott O’Neil, president of Madison Square Garden Sports.

    The NBA’s Tatum added, “Of course Lin is a great door-opener in China, but you also have the media and marketingcapital of America excited about the NBA now.’’

    Since Lin burst on the NBA scene last month, per cap spending at Madison Square Garden is up 20 percent, while in-arena merchandise sales have jumped 67 percent.

    Lin is also helping drive NBA China’s business. NBA television ratings in China are up 39 percent this year, according to NBA China CEO David Shoemaker.

    “We had been having our strongest year on record before Lin,” Shoemaker said. “Then Lin comes along and I see it as a great further catalyst. It is a sensational story and speaks to the global appeal of the game and our love of the underdog.”

    The run on Knicks jerseys to customize with Lin’s name was exacerbated by the fact that Adidas was making fewer anyway, since the Knicks are changing their jerseys next year. Nonetheless, LaRocca said there were more Knicks jerseys sold in New York during the first three weeks of “Linsanity” than in the two months after the Knicks made their much-anticipated trade for Carmelo Anthony last February.

    Gameday Merchandising ran the NBA Store at Jam Session and the hotel concessions, and company President Alan Fey said all the Lin merchandise he had was gone by the end of the BBVA-title-sponsored rookie/sophomore game on Friday night.

    HELP WANTED:  There are some key vacancies as the NBA begins the second half of its season after All-Star Weekend.

    The Atlanta Hawks are looking to hire a new chief sales officer to replace Tracy White, who recently left the team to join IMG College.

    The Philadelphia 76ers are searching for a new vice president of sponsorship, while the Golden State Warriors are looking to hire a chief technology officer. It is a newly created position for the team under President Rick Welts.

    Under Armour’s Kevin Plank was a proud papa with son James, who was a ballboy during Saturday night’s skills competition.
    Photo by: TERRY LEFTON / STAFF
    Meanwhile, the search continues by NBA and NCAA-owned iHoops, which is looking to hire a new CEO to replace Len Elmore, who left last month.

    Parker Executive Search has been retained by iHoops for the search.

    DOUBLE DRIBBLES:  A couple of favorite moments from the weekend in Orlando: Under Armour CEO Kevin Plank was delighted that son James was a ball boy for Saturday night’s skills competitions, but he was less than enthusiastic that his offspring was required to wear apparel from Adidas, the NBA’s master apparel licensee. Plank pointed to the floor of the Amway Center, noting, “we negotiated an out for footwear,” so his son was wearing Under Armour for the night. … Other than an expanded NBA store, which included footwear and seemed better merchandised than past years, we found the Jam Session a bit tiresome. And we weren’t the only one. “Every sponsor has a basketball court,” lamented Skechers CMO Leonard Armato. Meanwhile, attendance at the NBA Jam Session, held at the Orange County Convention Center, was 91,671 for four days, versus last year’s
    Skullcandy drew eyeballs and ears by mixing a DJ and a pop-a-shot competition at the Jam Session.
    Photo by: TERRY LEFTON / STAFF
    102,729 in Los Angeles over four days. … We’re not used to smaller licensees doing much at all at fan fests, so we had to admire Skullcandy’s combination of a DJ mixing and a pop-a-shot competition at Jam Session. … At the Legends Brunch on Sunday, just five months into the job, new National Basketball Retired Players Association CEO Arnie Fielkow elicited a mixture of gasps and guffaws when, during an onstage speech late in the program, he paused to “spank, er, thank Commissioner David Stern.” His faux pas went live on NBA TV and was quickly posted on You Tube. Emcee Ernie Johnson, who followed Fielkow onstage, could not contain his laughter. “I am thinking at All-Star Weekend, of all the people you’d want to do that to, he’d probably be the last one,” Johnson laughed.

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