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SBJ/March 10-16, 2014/Marketing and SponsorshipPrint All
The rights had belonged to Riddell since 1989, but liability issues and pending litigation from former players have the league adopting a “white-label” policy, where players can continue to choose whatever helmet they wish, but none will carry the helmet manufacturer’s brand. About two-thirds of NFL players wear Riddell helmets.
Since Riddell is a defendant in a class-action lawsuit brought by retired players, legal and player-safety issues are the primary issues driving the white-label decision.
However, the marketing implications are also intriguing. This development means there are two pieces of on-field equipment — coaches headsets and helmets — that used to carry advertising but no longer do. While the potential liability issues might be enough to discourage any potential advertiser, you have to wonder how much a helmet nameplate would be worth as advertising inventory, considering some of the league’s largest sponsorship pacts include either on-field or sideline branding.
Sources said the NFL offered promotional rights to a variety of helmet manufacturers, including an arrangement through which payment would be made to a charity, but the league ultimately came to a vanilla solution.
“The irony here is that it’s the most valuable branded real estate on the field and it is going away,’’ said 16W Marketing principal Frank Vuono, who headed licensing at NFL Properties when he fashioned the 1989 contract granting Riddell what was until now was a perpetual exclusive. Riddell will continue as the league’s retail helmet licensee and will still manufacturer NFL team-logoed replica and mini helmets.
■ LOGO WATCH: A first look at the next Super Bowl logo revealed an amalgam of the Vince Lombardi Trophy and the University of Phoenix Stadium, which will host the 2015 game. The design ties together the trophy with the sun and the silver of the stadium, and draws on how the desert light plays off of the Glendale, Ariz., facility.
Meanwhile, league employees used “Super Bowl 50” in a presentation referring to the championship two years away. But Leo Kane, NFL senior vice president of consumer products, said the weighty design issue of whether to use the Roman numeral “L” or the Arabic “50” is still being determined. Complicating matters is that “L” is now often associated with “Loser.” “That Super Bowl will be about looking back and looking forward, so we’ll make our decision based on that,” Kane said.
The Seahawks’ national reach was on full display in the range of licensed goods.
Photo by:TERRY LEFTON / STAFF
Even for a champion, the amount of Seahawks championship products at the summit was overwhelming. The team’s neon-green continues as a trend on its own.
Kane said that Nike’s Seahawks jersey with the number 12 and “Fan” on the nameplate will be the fourth or fifth best-selling jersey of the year. Brian Lowe, national sales manager at sock licensee For Bare Feet, said there are around 100 Seahawks sock designs in the market, and the company was displaying 14 of them at the summit. Doug Orwiler, Seahawks director of retail operations, said his team opened three pop-up stores for the playoffs; two closed at the end of February, while one in Bellevue, Wash., won’t close until the end of March. The team is looking to open more permanent retail locations to sell a combination of Seahawks and Seattle Sounders merchandise. “We chased demand pretty successfully,” he said. “Any problems we have are good ones to have.”
For Super Bowl merchandise, generic and team-specific, Kane confirmed projections that sales this year hit record levels.
“Ugly” is looking beautiful to NFL retailers.
Photo by:TERRY LEFTON / STAFF
Licensed sports e-commerce leader Fanatics was among the first retailers to “get Ugly,” buying the sweaters both for its own site and for NFL.com, which it administers. “Right on trend and a perfect answer to the question of what to buy a sports fan,” said John Sabo, Fanatics senior vice president and general manager. Tom Dura, Forever Collectibles national sales manager, said the company has already sold 200,000 units and is looking to build the business to $10 million this year. (Now that’s not ugly at all.)
While we’re certain that Lewis is the first to mix sports licensing and holiday garb of questionable taste, the ugly Christmas sweater trend has become an institution. Upscale designers, including Dolce & Gabbana, and retailers like Bloomingdale’s joined the ugly parade several years ago.
■ LICENSING LINES: Other new products of note: another licensed toaster from Pangea Brands, which launched the original ProToast in 2010. Now, the company that also brought you the Stanley Cup popcorn popper has ProToast MVP, a pebble-grained, football-shaped toaster, available in August at a suggested retail price of $49.99. … NFL blanket/throw licensee Northwest is extending its expertise in warmth with a line of NFL hand warmers ($19.99) similar to what’s worn on the field. … We also liked Sports Logo Lights’ NFL-licensed Mini Tailgate RC Truck, and we’re certain retailers will love its $7.50 wholesale pricing. … 3M is following up its NFL-licensed helmet tape dispensers with logoed, football-shaped Post-it note holders that will be available in July, at $14.99. … Winners of the Never Seen a License on That Before Award go to a pair of automotive products that allow fans to customize their cars. Stockdale’s vinyl racing stripe allows fans to adorn their vehicles with a stripe that includes a team name and logo. If that’s not enough, fans can trick out their tires as well, with Team ProMark’s Tire Tatz ($19.99), a lettering kit available in May allowing the application of rubberized white letters, a la those whitewall tires of the past. … The NFL honored new members to its “million-dollar club,” those who generated $1 million or more in royalties for the first time: luggage and bag specialist Concept One Accessories; home and garden furnishings marketer Evergreen Enterprises; and gift/accessories licensee Siskiyou.
Industry veteran David Paro has been hired by Van Wagner Sports and Entertainment and charged with helping to expand its consulting business.
“We’re making big investments because of the potential I see for consulting, and the hiring of David was step one,” said Van Wagner Sports and Entertainment President Jeff Knapple, who worked with Paro at Frankel and ProServ.
Knapple also noted the growth of Van Wagner from 43 to 100 employees over the past 18 months.
Paro, running his own Deep Alliance Consulting since 1993, is leaving Chicago for the job. “I like the vision and
commitment to the consulting space by Van Wagner and I wanted to be part of something unique,” said Paro, who spent four years at SFX/Clear Channel and four years as director of U.S. sports alliances at McDonald’s.
The CEO of Travelers Insurance thought back to 2007, when the company first decided to title sponsor a PGA Tour event.
“We were a little unsure,” said Jay Fishman recently, speaking to a group that included PGA Tour Commissioner Tim Finchem.
Travelers Insurance extended its tournament naming-rights sponsorship by 10 years.
Photo by:GETTY IMAGES
A 10-year deal to title sponsor a PGA Tour event traditionally was unheard of. Most deals typically have covered four or five years. But AT&T broke that mold last November by signing a 10-year deal for its tournament in Pebble Beach. The length of the deal was unprecedented, until Travelers did the same thing on Feb. 27.
“We had done a couple of four-year deals before, so we went into these talks thinking another four would be fine,” said Andy Bessette, Travelers’ chief administrative officer and lead negotiator on the PGA Tour deal. “But the more we thought about what we wanted to do with the tournament, the more we thought about making a longer-term commitment.”
Both Travelers and AT&T have deep ties to their sponsored tournaments. AT&T has sponsored Pebble Beach’s Pro-Am since 1986. Travelers has been with the tournament in its corporate backyard of Hartford, Conn., for seven years.
Other naming-rights deals around the tour stretch for six and eight years (see list).
“It just shows what a strong position the tour is in,” said Billy McGriff, co-head of golf at CAA Sports, which represents Farmers and Zurich, among others. “For the brands, the long-term commitment provides a long runway to plan activation, develop relationships with players and integrate the brand.”
Not only is the tour doing longer terms, but the rates have increased as well. The recent deals range from $9 million to $11 million a year, up from the $6 million to $8 million annually that had been the norm.
These longer-term deals provide stability for the tour’s purses, most of which come from sponsor fees. The deals also represent guaranteed advertising for the tour’s TV partners, NBC/Golf Channel and CBS, since title sponsors commit to ad buys.
“The longer terms are fine as long as you’ve got some flexibility built in,” said Tyson Webber, executive vice president of client management at GMR Marketing, which works with Humana. “It’s easier said then done, but you want to have the flexibility to shift assets from, say, tickets to more branding or more of a digital play. Over the course of a 10-year deal, there are going to be a lot of changes in the business world.”
Bessette said Travelers has language written into its contract that allows the company and the tour to work together on the purse and other elements of the deal.
“This is all we do in sports,” Bessette said. “It’s not like we’ve got to spread our money around to the NFL or hockey or whatever.”
The PGA Tour declined comment for this story because it didn’t want to get into the specifics of a deal.
Accenture’s deal to sponsor the World Golf Championships Match Play tournament expired last month, and a handful of companies have expressed interest. The tour is in talks to replace AT&T on Tiger Woods’ tournament at Congressional as well. Quicken Loans reportedly is a candidate.
BMW’s deal for its FedEx Cup Playoff event also is up this year. Talks between those two sides continue.
Industry experts expect to see the tour pushing for more long-term deals.
“A long-term deal provides a clear direction for a company’s future marketing,” said Malcolm Turner, principal at Wasserman Media Group, which works with Travelers on its golf strategy. “That’s the game plan for how a company is going to drive business.”