Skechers has “extended its deal” with Silver Medal-winning U.S. marathon runner Meb Keflezighi through '13, and the contract contains provisions “that mark a big shift away from how traditional track and field sponsors reward their athletes,” according to Sara Germano of MARKETWATCH.com. Keflezighi, a former N.Y. Marathon winner who first signed with Skechers in late ‘11, “will be allowed to wear other corporate logos, and his contract doesn’t include financial penalties for poor performance.” Sources said that the deal is worth “an annual mid-six figure sum” and is guaranteed through the end of ‘13. Germano reports the Skechers deal “reflects a new reality in track-and-field sponsorship that should help all athletes.” Rules imposed by the sport’s international governing body “that limited athletes to carrying one corporate logo on their uniforms have recently changed, potentially offering up the chance for two sponsors and nudging shoe companies to end the exclusivity they negotiate from athletes.” And while typical contracts for athletes “had reduction clauses that meant bad results could see income cut by 25% or more, a newcomer like Skechers is willing to drop that requirement.” Skechers Fitness Group President & CMO Leonard Armato said, “We’re entering the market and we want to be sensitive to athletes who have been underserved (and) saddled with these standard-form contracts.” Keflezighi added, “My sponsors understand I bring value to them beyond my performance on race day.” A privately-conducted survey of hundreds of professional track-and-field athletes in the U.S. show that 80% of athletes “ranked in the top 10 in the U.S. in their event make less than $50,000 a year, while half make less than $15,000.” Three of those athletes said that the reduction clauses “in particular make it very difficult to make financial-planning decisions.” Puma Head of Global Sports Marketing & Sports Law Christian Voigt said reductions are included in contracts “as a protection to make sure the investment is still worth it.” He added that the company “doesn’t have to activate the reduction” (MARKETWATCH.com, 4/25).
WELCOME TO THE FAMILY: Asics yesterday said that it has signed Gold Medal-winning U.S. decathlete Bryan Clay to an endorsement deal. Terms of the deal were not disclosed. With the addition of Clay, Asics now has a "roster of about 25 U.S. track-and-field athletes, including middle-distance runner Sara Hall and hurdler Lolo Jones." Clay signed with Asics after his eight-year run with Nike ended last summer (MARKETWATCH.com, 4/24).
