Phelps' Record Performance Opens Doors To Bigger Sponsor Payout

Phelps' Record-Setting Performance Lands Him In Elite Status Among Marketers

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COVER BOY: Phelps will appear on the cover of the August 25 issue of Sports Illustrated wearing all eight of his Gold Medals and under the header, "The Alltime Olympian Michael Phelps." SI's Susan Casey writes the cover story in this week's issue, titled, "We Are All Witnesses" (SI). In N.Y., Clemente Lisi reports the photo was taken Sunday night inside an ancient temple in Beijing. SI Group Editor Terry McDonell: "This one being the first (photo) of him with all eight medals, we hope that our cover will stick in everyone's mind." SI did not pay Phelps for the picture (N.Y. POST, 8/19). The picture is an update of the iconic poster of former U.S. swimmer Mark Spitz wearing his seven Gold Medals from the '72 Munich Games, and NBC's Meredith Vieira notes 300,000 of the "signed posters were sold back then for $2 each. (Spitz) got $0.15 per poster for a total of $45,000. I have a funny feeling Michael is going to do a lot better” (“Today,” NBC, 8/19). Meanwhile, Phelps "will be the latest athlete on a cereal box, but it won’t be Wheaties." Carlisle said, "No Wheaties box this time around; it’s going to be Kellogg’s.” The company confirmed that Phelps will appear on boxes of both Kellogg’s Corn Flakes and Kellogg’s Frosted Flakes around mid-September (ACCESSHOLLYWOOD.com, 8/19). Phelps is sponsored by Kellogg Co.

MAKING A MAINSTREAM SPLASH: Carlisle said that Phelps will "consider film and TV offers 'for the good of the sport.'" Carlisle added that Phelps has "been approached by Hollywood agencies [in Beijing] but offered no details" (HOLLYWOOD REPORTER, 8/19).  In N.Y., Mike Vaccaro reports the Ravens, who televised the Baltimore-native Phelps' 4x100m medley relay race Saturday night, also "want to throw him a party." The Orioles "might furnish him with a lifetime pass to Camden Yards," and musician Bruce Springsteen during a concert in Jacksonville Friday night dedicated his performance of "Born in the U.S.A." to Phelps (N.Y. POST, 8/19). Phelps yesterday said that, as an "avid card player," it would "be cool to participate in the World Series of Poker" (N.Y. TIMES, 8/19).

HIGH-STAKES POKER GAME: The S.F. CHRONICLE reports Speedo, whose deal as Phelps' apparel sponsor expires next year, is "rumored to be in a vicious bidding war with Nike over right to create Phelps-related apparel" (S.F. CHRONICLE, 8/19). The Wall Street Journal's Jon Weinbach also noted Phelps' relationship with Speedo could be something to watch, saying, "Could a company like Nike, could a company like adidas come in and say Michael Phelps can be for swimming what Tiger Woods was for golf and be worth $40[M] or $50[M] of sales?" ("Outside the Lines," ESPN2, 8/18). Ries & Ries Partner Laura Ries said, “Some talk Nike could offer $40-50(M). I don’t think Speedo’s got that kind of money. But really for Phelps, Speedo is the opportunity because he really wants to raise the level of swimming and that puts him on the best platform. At Nike, he’s just going to be little peanuts next to Tiger Woods” (“America’s Nightly Scoreboard,” Fox Business, 8/18).

Phelps Looking To Fill QSR Category In Endorsement Portfolio

PITCHMAN: IOC TOP sponsor Visa Head of Global Sponsorship Marketing Michael Lynch, whose company sponsors Phelps, said of the swimmer, "He now leaves Beijing as a global sports icon." Lynch also noted that Phelps is "already omnipresent [in China], his pictures on ATMs and kiosks." Lynch said the objective of Phelps' sponsors is to "expand Michael's presence in other markets." Carlisle is "already fielding inquiries from new would-be sponsors," and Phelps yesterday said, "Peter and I have to sit down and talk about the schedule. Not just for the next few weeks, but the next four years" (WASHINGTON POST, 8/19). Carlisle also noted that he is "getting up to 50 pitches a day" for Phelps. PureSport CEO Michael Humphrey said that the beverage company is planning a "big campaign with Phelps" and U.S. gymnast Nastia Liukin. Humphrey said PureSport has signed a "substantial" multi-year deal with Phelps, though he did not disclose the terms of the agreement. Also, Pizza Hut is giving Phelps and his U.S. swimming teammates free pizza and pasta for one year because Phelps surpassed Spitz' record seven Gold Medals in one Games. Pizza Hut did not say if it would run any ads with the swimmers, but said that it "would be willing to join in public appearances" (AP, 8/18). Premier Management Group’s Evan Morgenstein, who reps Spitz, said that his client is "open to the possibility of joint appearances or endorsement deals" with Phelps, but nothing has come up to date (ESPN.com, 8/19).

USA Swimming Hoping To Cash In On Exposure As Result Of Phelps' Eight Gold Medals In Beijing

STRIKE WHILE THE IRON IS HOT: Univ. of North Carolina Sports Communication Program Dir John Sweeney indicated that the "uniqueness of [Phelps'] feat will only carry him so far," as the public will "need more than his achievements if he's going to prove a staying force in advertising" (AP, 8/18). Boston-based sports publishing firm PSP Regional Dir Louis Yaffe said of Phelps' marketing potential, "When is the next swim meet that you know of? He's going to have a quick hit and it's going to be quite sizable, in the tens of millions of dollars. But four weeks from now, after he does the circuit with [Jay] Leno and all the late-night people, he may fade away a little bit" (BOSTON HERALD, 8/19). Meanwhile, AD AGE's David Wolf wrote Phelps' success "is not going to help him build a lucrative, lasting career in China." The nation has "proven itself adept at producing its own spokespeople, and Chinese have grown to prefer locals over foreigners." Also, with China leading the Gold Medal count with 43 through the end of competition today, there are already "three dozen certified Chinese heroes who can relate to the locals better than [Phelps] could ever hope to." Until Phelps "does something to actually cultivate his appeal here, his local value as a spokesman will be limited at best" (ADAGE.com, 8/18).

FAN FRIENDLY: Phelps has received "more than 30,000 comments" on his Facebook wall, and Facebook officials said that part of Phelps' fan profile site temporarily crashed yesterday as a result of the comments. As of yesterday, Phelps had more than 700,000 fans, which is second on the site only to U.S. presidential candidate Barack Obama (Baltimore SUN, 8/19). Meanwhile, Phelps yesterday visited the U.S. men's basketball team before their game against Germany, which he and several of his teammates attended. In Raleigh, Luciana Chavez writes the U.S. basketball team "has a man crush" on Phelps (Raleigh NEWS & OBSERVER, 8/19). Lakers and U.S. G Kobe Bryant requested a picture with Phelps, and NBC’s Doug Collins said, "I bet you it was the first time Bryant has ever asked to take a photo with someone" ("Summer Olympics," NBC, 8/18).

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