Fila formally announced it has renegotiated and
extended its contract with Grant Hill. The company also
named Hill as Chair of an internal Sports & Athletic
Advisory Committee, which will help set Fila's direction for
sports marketing and influence future endorsement deals
(Fila). Reports put the deal at seven-years, $80M and Liz
Bowie adds that the pact boosts Hill's "annual take" from
Fila from "about" $6M to $11M. Fila shares gained $1.438
yesterday, closing at $29.813 (Baltimore SUN, 9/24).
HILL'S CLIMB: In a teleconference, Hill addressed
rumors that he was being pursued by other companies: "There
were a lot of rumors ... there were rumors that I heard,
that friends of mine heard, that various people have heard
over the last three years, and I don't know where those
rumors came from. But hopefully, those rumors will stop,
and people will understand that I am a part of the Fila
family ... as it looks for the rest of my career." On his
product involvement: "I have been involved in the past, and
I think now this makes it a little bit more official. I'll
have an opportunity to voice my opinion ... though, I'm not
running the company. There are people here, the powers that
be are the ones who are running it, but they will seek my
viewpoint on issues regarding my own shoe" (THE DAILY).
WHAT IT MEANS: CNBC's Sharon Epperson examined Hill's
Fila deal on "Business Tonight." Epperson: "What's next
after brand Jordan? Now with this megadeal under his belt,
Grant Hill may be just the ticket that other companies are
searching for, those who want an heir apparent. ... Hill has
quickly been raised to marquee status among sports celebrity
endorsers." More Epperson: "Sales for Fila's last Grant
Hill shoe were disappointing. But with a new contract, and
an intensive marketing campaign, both Hill and Fila are
hoping for greater success with his new shoe due out in
November. ... What marketing experts are telling me is that
this may raise the stakes for when he re-signs with
McDonald's, or the Sprite deal" ("Business Tonight," 9/23).
MORE REAX: Sporting Goods Intelligence's John Horan:
"They [Fila] want to project more than just the basketball
presence of these people, I think they want to project the
lifestyle and the personality of the athlete into the
product" (CNBC, 9/23). Hambrecht & Quist analyst Shelly
Young: "I don't believe Fila will see a return on this
investment" (FINANCIAL TIMES, 9/24). Brandweek's Terry
Lefton, on what the deal does for Fila: "Locks up their star
endorser, and gives them a magnet to attract other ones. ...
it's as simple as that" ("Sports Inc.," CNNfn, 9/23).
