FILA SCORES WITH SEVEN-YEAR, $80M CONTRACT DEAL FOR HILL
Fila Holding signed Grant Hill to "one of the richest
sports endorsement contracts ever" with a pact for "at
least" $80M over seven years, according to Stefan Fatsis of
the WALL STREET JOURNAL. The deal, expected to be announced
today, "catapults" Hill into "the sneaker-riches realm" of
Nike's Michael Jordan, and gives him "a sweeping role in the
company's operations." While Fila's stock "has plummeted to
around $28 a share ... from $105 a share a year ago," Fatsis
reports that the company "is counting on" Hill to "revive a
brand he helped create" (WALL STREET JOURNAL, 9/23).
GRANT'S SHOW: Hill will receive "a base salary and
minimum royalty guarantees on his signature products, plus
royalties on sales of other Fila products, performance
bonuses and stock options," and will "head a committee to
advise Fila about marketing initiatives and other athletes
the company should enlist." The company "renegotiated the
last two years" of Hill's existing Fila deal which paid him
"around" $6M a year. Under the new deal, Hill will be
"asked to boost the company's profile outside the U.S."
Fila Senior VP/Sports Marketing Howe Burch: "We think Grant
is more than a guy who just sells shoes. We think he is a
brand influencer, not just here but around the world."
Hill, on his new advisory role with the company: "It makes
me feel vested in all the decisions I make." Asked what he
would tell NBA players who tried to use an on-court
relationship to ink a Fila deal: "Give me 10 good reasons
why we should take you on" (WALL STREET JOURNAL, 9/23).