IBM and the NHL are "close" to signing a $25M sponsorship
and joint venture agreement both parties hope will push them to
the "vanguard of the convergence of sports and interactivity,"
according to BRANDWEEK. Suggested names include "NHL 2000," "NHL
New Media," and "NHL Interactive." One NHL source said the
league is trying to take advantage of interactive opportunities
"before everyone else," adding that the IBM deal could translate
into something "as simple as creating and running a Web site or
as complex as networked fantasy games or full-motion video over
the Internet." IBM took over the NHL's Web site from Gage
Marketing earlier this year. The "complexity" of online
arrangements is holding up the deal, since content offered over
the Internet could conflict with existing sponsorship,
broadcasting and advertising agreements. The NHL source said the
league is working on "very careful definitions" in the agreement
due to the unlimited potential of the Internet/interactive arena.
The sponsorship portion of the agreement is a three-year $25M
deal that will include a media buy on NHL broadcasts. IBM would
become the NHL's "official technology partner." By next season,
IBM is expected to provide the NHL with the same real-time,
laptop-based scoring and stat system it provides the NBA. One
sports marketer noted IBM is not buying into properties for
traditional sponsorship leverage, but rather to develop a
portfolio of interactive joint ventures. IBM has a similar deal
pending with the PGA, and is a sponsor of the IOC, ACOG, ATP and
USA Dream Team (Terry Lefton, BRANDWEEK, 4/8).
