MA-based John Hancock Mutual Life Insurance signed a
five-year, multimillion-dollar sponsorship deal with MLB to
become the league's exclusive financial services sponsor.
The company, which inked a one-year deal with MLB last year,
gains exclusive rights to the financial services category,
including insurance, annuities, investments, pensions,
mutual funds, long-term care and financial advisory. The
agreement designates John Hancock as the title sponsor of
the All-Star FanFest and presenting sponsor of the Roberto
Clemente Man of the Year Award. MLB calls the deal the
largest and longest sponsorship in its history (MLB).
WHAT IT'S WORTH: In Boston, Jerry Ackerman cites
sources as saying that the deal is "worth at least" $10M and
"probably much more." One source said that the agreement
"could be worth as much as" $30M, but John Hancock
spokesperson Steve Burgay said, "In terms of what we are
paying [MLB], that is wildly, wildly inaccurate." Ackerman
notes that Fleet Financial Group was "reported to have paid"
$4-6M last April in a deal with MLB that extends through
2001. Hancock's competitors "remain free ... to bid for
local" team rights, but Hancock "may seek team-by-team"
deals to "augment" its league partnership. Ackerman adds
that "about the only subcategories not included" in the deal
are retail banking, held by Fleet, and credit cards, "shared
by" MBNA and MasterCard. Hancock's deal comes just before
its IPO scheduled for January 27 that "could raise" $2.6B.
(BOSTON GLOBE, 1/4). The WALL STREET JOURNAL cites a
"person close to the negotiations" stating that the deal
will total about $20M, not including what Hancock will spend
in promotions. The deal "suggests" that MLB is "beginning
to gain ground with corporate sponsors" after its '94 strike
(WALL STREET JOURNAL, 1/4). In Boston, Greg Gatlin writes
that "industry sources estimated" the value of the deal
between $2-6M a year. Gatlin adds that it "remains to be
seen" what the deal "means to Hancock's future" as a
worldwide Olympic sponsor. Hancock President David
D'Alessandro: "The only thing people should read into this
is that we came to a conclusion that baseball is a terrific
national marketing platform" (BOSTON HERALD, 1/4).
