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Volume 24 No. 156

Sponsorships Advertising Marketing

     Advertisers are becoming more involved in production and
development of shows for network TV and syndication, according to
the current BUSINESS WEEK.  Procter & Gamble recently signed a
three-year deal with Paramount, and Wendy's is supporting
production of "Derby," a two-hour movie to be aired in June.
Television Production Partners is a consortium of nine major
advertisers, including AT&T, Campbell's, Coca-Cola, Coors,
McDonald's, GM, Reebok, Clorox, and Sears, that will develop
"movies, specials, and limited run series."  Each advertiser
"chooses which programs it wants to be involved in and takes a
portion of the commercial spots."  Television Production Partners
were behind "Hank Aaron: Chasing a Dream" -- a special that aired
recently on TBS (Zachary Schiller, BUSINESS WEEK, 5/22).
     THE HOT SEASON: TV networks are experiencing one of their
most profitable sales seasons since the late 1980's, according to
David Lieberman of USA TODAY.  Prices are up more than 10% and
advertisers' TV budgets are up as much as 25% over last year.
The sale process for the '95-96 season begins today and by July
4, networks will "sell more than $4B in prime-time ads."  Some
reasons for strong sales include the competition in the
computers, movie, and long distance telephone industries, and
advertisers' desires to to associate with the '96 Olympics (USA
TODAY, 5/15).

     Colleges and universities are "making up for lost time" in
the sports licensing game with the use of logos on apparel and
other goods having "blossomed into a $2.5 billion business,"
according to the current BUSINESS WEEK.  Industry consultant John
Bevilaqua says that "being a perennial powerhouse" such as Notre
Dame doesn't hurt, as even though ND had a fair football season,
they earned the most royalties.  Top five college merchandise
sales for year ending March 31, 1995:  Notre Dame $7.8M; Michigan
$5.8M; Florida State $3.0M; North Carolina $1.8M; and Nebraska
$1.7M (BUSINESS WEEK, 5/22 issue).

     Fourth quarter results of several publicly traded sportinggoods chains indicates that "most sporting goods retail stockshave tailed off significantly during the past few months,"according to the May issue of SPORTING GOODS BUSINESS.  But whilesome industry analysts "suggest the industry has lost much of itsappeal," they differ on the long term forecast.  Some largerretailers blame a slow holiday season, and slumps in sales oflicensed goods and skis for the soft results.  Others suggestthat the larger publicly traded chains "are not able to reactquickly enough to market shifts," and that if revenue is down, itdoes "not necessarily mean the whole industry is down."  Whilechains such as Sport Mart and Sports & Recreation have seen asubstantial stock value drop, some industry insiders "suggest thedeclines are part of Wall Street's general negative outlook onretail," and many dealers are optimistic of a healthy '95 due tothe return of Michael Jordan, and the end of the baseball strike(SGB, 5/95 issue).     
TOP 10 SPECIALTY SPORTING GOODS RETAILERS
1. Foot Locker
$2.25B
  6. Sportmart
$500M
2. Sports Authority
$1.1B
7. REI
$489M
3. L.L. Bean
$800M
8. Athlete's Foot
$450M
4. Champs Sports
$675M
9. FootAction
$440M
5. Sports & Recre
$612M
10. Play it Again
$420M
TOP 10 FASTESTGROWINGCHAINS (Projected Growth in '95)
1. Just For Feet
62.50%
  6. FootAction
29.40%
2. Sports & Rec
59.70%
7. Play it Again
24.60%
3. Fitness Ware.
46.80%
8. Hibbett Sports
22.20%
4. Sports Author.
31.10%
9. All About Sports
21.90%
5. Gander Mountain
30.10%
10. Modell's Sports
20.60%
(SPORTING GOODS BUSINESS, 5/95 issue).
OTHER RETAIL NOTES: The opening of large retail outlets onManhattan's 5th Avenue, such as Nike Town, is analyzed by TripGabriel in the N.Y. TIMES. Nike spokesperson Kevin Kutcher:"Our object with the store is both financial and image-oriented.There's a dual goal there" (N.Y. TIMES, 5/14)....Herman'sSporting Goods approved a reverse stock split that will reducethe number of holders of the company's Common Stock preventingHerman's from becoming a public reporting company (Herman's).

     The Nike Classic, a national two-day high school basketball
tournament, will be held December 8-9 at Cal-Irving.  Details
will be announced in June (ORANGE COUNTY REGISTER, 5/12)....The
new ads for Sega's $50M marketing campaign for its new Saturn
game player were done by Goodby, Silverstein & Partners, San
Francisco and media buyer, BBDO Worldwide, L.A.  The program will
also include a promotional tour tie-in with Cherry
Coke....PepsiCo is looking to consolidate its European media
buying assignment "at an agency of record" and is in the
"preliminary stages of a $75 million review" (AD AGE, 5/15
issue)....From the current issue of BUSINESS WEEK:  Among their
Top 100 '95 Hot Growth Companies are Deckers Outdoor, maker of
Teva Sandals (No. 31), and ski maker Marker Int'l (No.
43)....BUSINESS WEEK also reports that sports sandals are "the
real sprinters" in the $12.4B athletic footwear industry, whose
overall growth rate has slowed from 9% in 1990 to 3% last year.
Basketball shoes still lead overall sales, with $2.7B in '94 vs.
$100M for sports sandals (BUSINESS WEEK, 5/22)....Sandy Koufax
told the N.Y. POST's Phil Mushnick that he made a "big mistake"
when he agreed to autograph 30 yarmulkes that were sold for $75
each.  Koufax said he was told they were to be given as awards to
Hebrew-school students (N.Y. POST, 5/12). ....Recreation and
leisure companies "are poised for a strong summer," writes Steve
Halpern of the MIAMI HERALD.  Among the top picks of the United &
Babson Investment Report of Wellesley Hills, MA, is Callaway
Golf, whose net income is forecasted to jump 21% to $1.30 a share
(MIAMI HERALD, 5/13)....One of the hottest selling t-shirts in
Denver reads: "Bichette Happens" (MIAMI HERALD, 5/14)....Priority
Designs has secured a patent for their plastic baseball glove
made of flexible polymer.  They are negotiating with
manufacturers to produce the glove (N.Y. TIMES, 5/15).

     By winning the America's Cup and earning the right to host
the next regatta in Auckland in late '99 or early 2000, New
Zealand hopes the race will "boost the national economy by
increasing investment and tourism," according to this morning's
WALL STREET JOURNAL.  Economists are busy "crunching numbers to
gauge the Cup's potential impact on what is currently the fastest
growing economy in the developed world."  Economist Robin
Clements says the event could bring as much as NZ$500M to the
economy.  Among those feeling an "immediate impact" will be
property around the Auckland waterfront, listed stocks such as
Ports of Auckland and Air New Zealand, and the sponsors of the
Black Magic boat, including Toyota and Lion Nathan, brewers of
Steinlager beer (Karene Witcher, WALL STREET JOURNAL, 5/15).  New
Zealand will also need to spend some money to host the Cup, with
cost estimates to update the Auckland waterfront hitting $50M
(Amanda Cropp, NEW YORK TIMES, 5/15).

     The Patriots are discussing a change in their jersey desing
for the second time in three years, according to Will McDonough
of the BOSTON GLOBE.  Patriots Owner Robert Kraft reportedly
wants "to put its own look on the Patriots uniform and will hold
a press conference in the near future to display it."  The
current minuteman logo on the sleeve and the numbers on top of
the shoulder will be re-arranged, and the numbers on the front
and back of the jersey will become three-dimensional.  McDonough
reports the Patriots' old "Pat Patriot" logo -- a minuteman
snapping the ball -- "will not make a comeback" (BOSTON GLOBE,
5/13).