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Volume 24 No. 116

Sponsorships Advertising Marketing

          An adidas ad congratulating the Univ. of TN (UT)
     football team on its Fiesta Bowl victory, which began
     running less than 24 hours after the game, was a "violation
     of NCAA rules [which] prohibit student athletes from
     appearing in ads that feature the ad-makers' merchandise,"
     according to SI's "Scorecard."  The spot "clearly shows" the
     adidas logo on the shoes, wristbands and jerseys of UT
     players.  NCAA Dir of PR Wally Renfro: "There's nothing
     wrong with Adidas or any other company producing a
     congratulatory ad that includes the company's logo, so long
     as its product isn't identifiable.  To continue using the
     spot, Adidas will have to remove those clips or sanitize the
     ad so that the logos on the products don't appear."  UT had
     "instructed Adidas to fix the ad immediately or take it off
     the air."  The NCAA "had no plans to punish" UT, because the
     school "took measures to correct Adidas' error" and its
     players did not give the company permission to use their
     likenesses.  An NCAA spokesperson, on possible penalties for 
     adidas: "We can't really do anything" (SI, 1/18 issue).

          Nike said it wouldn't comment on Michael Jordan's
     retirement before he held his press conference today in
     Chicago.  The company's stock price fell 2 3/8, or 5.4%, to
     close at 42 yesterday (Mult., 1/13).  In Boston, Michael
     Holley: "Remember the days when Nike was just another in a
     line of shoe companies?  When the familiar swoosh did not
     trigger a whisper of 'Nike' in your psyche?  That was the
     case in the early 1980's, until Jordan came into the NBA
     with his own brand of multicolored Nike sneakers" (BOSTON
     GLOBE, 1/13).  A PHILADELPHIA INQUIRER editorial challenges
     Jordan to become more active in issues facing Nike,
     including charges of poor working conditions at their Asian-
     contracted plants: "Jordan helped make this unjust system
     work and derived massive benefit from it, while distancing
     himself from the ethical quandary.  In retirement, it's part
     of his game he desperately needs to work on.  The issue
     needs a champion" (PHILADELPHIA INQUIRER, 1/13).
          ON THE STREET: Shares of Quaker Oats, maker of
     Gatorade, fell 3/4 to 59 3/16 yesterday, while shares of
     Rayovac, another Jordan-endorsed company, fell 1/2 to 24
     1/2.  Sara Lee, parent to Jordan-endorsed Hanes, rose 3/8 to
     close at 26 yesterday (BLOOMBERG NEWS, 1/12).
           

          The Sports Authority CEO Marty Hanaka, on the NBA's
     return: "I think people are very apathetic about basketball. 
     It could even have a longer rebound period than baseball." 
     He said that NBA-related merchandise makes up about 10-12%
     of The Sports Authority's sales (SUN-SENTINEL, 1/12). 
          CALLAWAY SLICES SOME OF ENDORSERS: The SPORTSBUSINESS
     JOURNAL's Liz Mullen reports that Callaway Golf has "cut the
     number of professional golfers who endorse its clubs by more
     than" 40% as part of an $18M reduction of the company's
     advertising and promotion budget.  Jim Furyk and Patty
     Sheehan are among the 33 of 79 golfers Callaway has dropped
     as endorsers (SPORTSBUSINESS JOURNAL, 1/11 issue).
          OTHER NOTES: Agent Bruce Levy, on the Univ. of TN's
     Chamique Holdsclaw: "Corporate America is chomping at the
     bit.  They are desperate to get hold of Chamique.  There is
     a feeling that she is going to rewrite the history of
     women's sport and companies are anxious to be involved with
     that" (LONDON TIMES, 1/10)....The USTA aired a "Get In The
     Game" promo spot during the Jags-Jets Divisional Playoff
     game on CBS.  With the game earning a 20.9 Nielsen overnight
     rating, the USTA said if "just" 2.3% of the viewers "Get In
     The Game," it would "realize its goal of bringing 800,000
     new players" to the tennis before the year 2002 (USTA).

          Analysts and sponsors "insist" the impact of Michael
     Jordan's retirement "will feel more like a tremor than a
     quake," according to Walker & Weinbach of the WALL STREET
     JOURNAL.  Fortune Magazine has "estimated" that the Jordan
     "juggernaut" has generated $10B in sales "ranging from" TV
     ads to merchandise to ticket sales, but "analysts estimate"
     that Jordan "still will generate more than" $500M in
     revenues this year, "in part" because he still has 10-year
     deals with many sponsors.  Chicago-based Burns Sports
     Celebrity President Bob Williams said that Jordan's
     retirement "could have an upside for some companies, because
     he will have more time to devote to his role as a pitchman." 
     While some feel Jordan's "long roster of sponsors ... may
     suffer," an MCI WorldCom spokesperson said that the
     company's "long-term relationship with [Jordan] will
     continue to grow" (WALL STREET JOURNAL, 1/13).    
          WILL THE BULL CONTINUE TO RUN ...: In N.Y., Stuart
     Elliott writes that many execs feel Jordan "could remain a
     commanding presence in campaigns for consumer products." 
     DDB Needham Chicago Vice Chair Bob Scarpelli: "He's more
     than an athlete, he's a cultural icon, so associated with
     our lives and times."  MCI WorldCom spokesperson Brad Burns:
     "Michael Jordan the brand is much bigger than Michael Jordan
     the basketball player.  He doesn't have to be in a sports
     setting."  MN-based Fallon McElligott Creative Dir David
     Lubars: "Advertisers will still want to use him because he
     has transcended sport."  IN-based CMG Worldwide Chair Mark
     Roesler: "You're looking at another Babe Ruth" (N.Y. TIMES,
     1/13).  Gatorade U.S. President Sue Wellington, who said
     that her company "plans to feature" Jordan in its ads
     despite his retirement: "It's not about what he is doing,
     but who he is" (AP, 1/13).  L.A.-based Sports Business Group
     Principal David Carter said Jordan will continue to be a 
     valuable spokesperson.  Carter: "He transcends sports, and
     he transcends race.  He can continue to capitalize on that." 
     Gatorade spokesperson P.J. Sinopoli: "A sweaty Michael
     Jordan is not an image that is going to fade from consumers'
     minds too quickly" (DALLAS MORNING NEWS, 1/13).  ESPN's
     Michelle Stark: "Companies ... aren't anticipating the
     Michael mystique to fade away just because he's retired." 
     Deutsch Inc. Chair & CEO Donny Deutsch: "There's a reason
     why Mick Jagger still tours at sixty.  We're not going to
     let Jordan go, because we don't want to let him go and he's
     smart enough to be able to capitalize on that" (ESPN, 1/12).
          ...OR DO NO HOOPS MEAN NO SALES? Schulman/Advanswers
     N.Y. Exec VP Tom DeCabia: "Unless Jordan gets into sports
     announcing or commentary, and keeps a high profile
     associated with his game, his marketability fades in faster
     than five years" (CHICAGO TRIBUNE, 1/12).  TX-based The
     Marketing Arm Managing Partner Ray Clark: "Like any brand,
     you have to get your message out.  Jordan's message has
     been, 'I'm the best.'  If that becomes, 'I used to be the
     best,' he will see a significant drop in endorsement income
     -- not this year or next year but within five years."  Rick
     Burton, Dir of the Univ of OR's Warsaw Sports Marketing
     Center: "When he's no longer in uniform, the companies he's
     going to endorse will have to put the message out through
     paid advertising.  The free marketing he gets from the media
     now disappears" (DALLAS MORNING NEWS, 1/13).
          WHO'S NEXT? USA TODAY's Bruce Horovitz examines the
     type of athlete who could replace Jordan: "The next
     superstar who shines in Jordan's marketing light will likely
     have to break some sort of barrier.  Or represent something
     that touches consumers far beyond the sports world." 
     Horovitz writes that "marketer gurus project" that a "female
     phenom" or a "global star" could become the "sports world's
     next marketing wonder" (USA TODAY, 1/13).  Pro Player
     President Doug Kelly: "The Bulls and Michael Jordan were
     between 30 and 40 percent of our NBA-licensed apparel
     business.  Without a focus on Michael, it ought to mean
     other teams and players will emerge" (N.Y. TIMES, 1/13). 
     BLOOMBERG's Pete Coates writes that Champion "is viewing
     Jordan's retirement as [an] opportunity to promote the
     game's younger players," such as T-Wolves F Kevin Garnett
     and Lakers G Kobe Bryant.  Champion Licensed Marketing Exec
     Dir Bill Kraus: "It will open the opportunity for other
     players to assume the throne."  Starter spokesperson Robin
     Wexler: "There's an opportunity now for the next group of
     Michael Jordan's to come out" (BLOOMBERG, 1/12).
          FOR MORE ON JORDAN, SEE (#2), (#5), (#9).