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Volume 24 No. 159

Sponsorships Advertising Marketing

          Advertising spending in the U.S. will reach a record
     $200.3B this year, up 6.8% from '97, according to Robert
     Coen, Dir of Forecasting at McCann-Erickson, who is cited by
     USA TODAY's Michael Diamond.  Coen predicts a 6% increase to
     $212.3B in '99 and larger growth in 2000 as companies
     "recast their images for the millennium."  Coen believes
     that cable TV will be the "biggest beneficiary" of the ad
     jump, with a 13% increase in revenue (USA TODAY, 6/24).

          MSG has signed Anheuser-Busch to a three-year
     sponsorship extension "that stretches across half a dozen
     New York sports properties, realizing MSG's vision of the
     ultimate group sell," according to Andy Bernstein of the
     SPORTSBUSINESS JOURNAL.  Next season, Budweiser will become
     "a significant sponsor" of Yankees broadcasts, and has
     bought ad time on Islanders and Devils games on Fox Sports
     New York.  The deal also continues Budweiser's exclusivity
     in the domestic-beer category on Knicks and Rangers games on
     MSG Network and "even extends" to the AHL Hartford Wolfpack,
     the Rangers' minor league affil.  Bernstein reports that the
     deal, worth $5-6M a year, includes rights fees, media time
     and pouring rights at MSG (SPORTSBUSINESS JOURNAL, 6/22).
          WORKING AT THE CARMAX: The MLS Mutiny said CarMax has
     agreed to become one of the team's largest sponsors and its
     official automotive superstore.  The CarMax deal comes after
     the team's agreement with Kash n' Karry that put the Mutiny
     ahead of last season's total sponsorship revenue.  CarMax
     will be the title sponsor of the Sister Hazel concert during
     the team's July 4 event, and will sponsor player appearances
     in Tampa-area schools (Mutiny).
          JINTS GO SHOPPING: The NFL Giants and A&P Supermarkets
     have teamed for a sponsorship program running for 21 weeks
     during the team's pre- and regular season schedule.  The
     program, "New York Giants Tailgate Club," will feature
     Giants-themed end aisle displays in all 120 A&P and 38 Food
     Emporium NY-metro area locations.  The program will also
     contain a weekly sweeps through which a youngster will have
     the opportunity to be the Giants honorary captain (Giants). 
     

          Since Nike signed S.F.-based Goodby, Silverstein &
     Partners as a "project shop" in March '97, long-time Nike
     agency Wieden & Kennedy "has watched its once-exclusive
     relationship with its signature client -- a relationship
     many industry members regarded as an ideal -- loosen and
     fray," according to Voight & Parpis of ADWEEK, who examine
     Nike's relationship with both agencies in an extensive must-
     read.  Dan Wieden, whose agency has worked with Nike since
     '82, called Goodby's involvement "a wake-up call for our
     agency," and added that his agency's relationship with Nike
     "is more like family than it is business."  However,
     insiders "use words like 'anxious' and 'paranoid' to
     describe the mood at Wieden's offices," and account and
     creative employees "are said to be deeply worried."  Wieden
     recently laid off 37 workers in Portland, after Nike's
     recent "sales drop-off" caused billings cuts (ADWEEK, 6/22).
          LOOKING FOR MR. GOODBY? In March '97, Goodby was given 
     four "noncore assignments: women's sports, performance
     apparel, ACG outdoor products and retail."  Goodby's winning
     pitch suggested a "more humble, caring tone for the brand." 
     And, while Nike and both agencies at the time downplayed
     Goodby's account as "Wieden's leftovers," sources claim that
     "in reality the loss of women's sports stung Wieden." 
     Currently, "including projected cuts," a tally of current
     Nike U.S. billings gives Goodby about $70-80M, while Wieden
     "has taken a major hit," with its domestic billings down
     from $210M to the $100-120M range (ADWEEK, 6/22 issue). 
          CORPORATE MIDLIFE CRISIS? Voight & Parpis write that
     Nike Chair Phil Knight "faces a quandary" as the company
     prepares its advertising strategy: "Should Nike reinforce
     its brand essence as the sexy, brazen young rebel? ... Or,
     plagued with changing consumer values and stinging criticism
     over its labor practices, should the company embrace a new
     role as a conscientious corporate citizen, as Goodby tends
     to advocate?"  For now, Nike's answer "is unclear, as both
     agencies are painfully aware" (ADWEEK, 6/22 issue).
          THE AGENCY'S FUTURE: Voight & Parpis report that Goodby
     "is not exactly enjoying smooth sailing" with its Nike work,
     as creative turnover on the account "has been high."  As for
     Wieden & Kennedy, "the old days are gone."  Even Wieden has
     said, "Nike is not our future.  [Top client] Microsoft is
     our future."  Although people close to the account "remain
     convinced that as long as Knight is part of Nike," Wieden
     will stay in the picture, Voight & Parpis conclude, "there
     comes a time when everyone has to hang up their cleats and
     leave the field for the last time.  Then it's time to move
     on to something new" (ADWEEK, 6/22 issue).

          Athlete's Foot Group has awarded its estimated $6-$8M
     account to GA-based Crumbley & Alba (AD AGE, 6/24)....In
     N.Y., Ruth Bashinsky reports that New Balance's "old-style"
     or "retro" sneakers "should be springing up everywhere" when
     the company officially debuts the European line in the U.S.
     later this summer.  The multi-color shoes will retail for
     $110-$125 (N.Y. DAILY NEWS, 6/24)....In anticipation of
     tonight's NBA Draft, AND 1 features new endorsers Larry
     Hughes and Raef LaFrentz in a USA TODAY ad reading: "AND 1
     Hits The Lottery. Sneaker Co. Signs Two Top Picks" (THE
     DAILY)....NC-based Food Lion has signed a multi-year deal to
     sponsor the men's college basketball tournament held each
     December at Charlotte Coliseum.  Food Lion replaces Pepsi
     and Harris Teeter as the title sponsor and the event will be
     called the Food Lion MVP Classic (CHARLOTTE OBSERVER, 6/24).
          

          The Marquee Group has formed Marquee/Alphabet City
     (MAC) Team Services to create entertainment marketing and
     promotional opportunities for sports franchises including
     customized team songs and videos.  The new division will be
     headed by Alphabet City co-President & Exec Producer Jesse
     Itzler and Alphabet City Senior VP Stephen Nitkin.  MAC Team
     Services has agreements to produce in-venue music video
     programming for various NBA, NFL and MLB teams for the '98-
     99 season, with "rally" team videos shown on-screen in
     stadiums and arenas during time outs, halftime and in pre-
     game warm ups.  MAC also produces team theme songs, and has
     created ticket campaigns for college and pro teams.  MAC
     currently produces Coca-Cola sponsored music videos for the
     Braves, Orioles, Rockies and Red Sox (The Marquee Group).

          NY-based USADATA.com has released Sports Promotion
     MarketTarget, an Internet service monitoring the impact of
     sports marketing on various consumer groups.  Sports
     Promotion MarketTarget will provide access to consumer
     behavior, lifestyle and product data compiled from the top
     60 U.S. markets, allowing marketing execs to gauge
     effectiveness in reaching a targeted market segment.  Those
     wishing to sample the service can do so by visiting
     www.usadata.com/target/sports.  USADATA.com clients include
     the NFL, GTE, Sprint and Microsoft (USADATA.com)