Tennis star Andre Agassi will become the spokesman for the 24 Hour Fitness chain of health clubs in a 10-year deal that a source said was worth about $15 million.
Agassi will make personal appearances and appear in print and television advertising, said Perry Rogers, an agent who represents the tennis star jointly with SFX Sports Group. In addition, some new 24 Hour Fitness clubs will be named "Agassi Sports Club" as part of the deal.
24 Hour Fitness, based in San Ramon, Calif., has 308 fitness centers in the United States and 10 in Asia. The company served 2.8 million members and generated revenue of more than $1 billion last year, said chairman and CEO Mark Mastrov. The company has budgeted more than $40 million this year for direct media spending.
"We have been international for a while, but having Andre on board will create more interest around the world," Mastrov said. "He is an international superstar."
Having a star like Agassi as a spokesman will also help 24 Hour Fitness become more recognizable to consumers and "break through the clutter" of the competitive heath club marketplace in the United States, Mastrov said.
Neither Mastrov nor Rogers would comment on the value of the deal, though Mastrov said, "It is a significant deal for [Agassi] and I believe he is very happy."
Ivan Blumberg, an SFX Sports Group consultant who worked on the deal with Rogers, also would not reveal the value of the deal, but he said, "It is absolutely one of the more complex deals I have been involved in. It is not a typical annual base compensation/royalty deal, it's a partnership with mutual incentives for success."
Rogers said he and Agassi were introduced to Mastrov almost two years ago by former SFX Sports consultant Fred Fried and Blumberg.
Fried, who now owns Bethesda, Md.-based Team Services LLC, said: "The reason the deal took so long to design and develop is because it is not a straight-line marketing deal. It is truly a partnership between 24 Hour Fitness and Andre Agassi."
The deal was struck after more than a year of talks among Agassi, Mastrov and Rogers. 24 Hour Fitness recently retained IMG for sports marketing consulting, but IMG was not involved in the negotiation, said a 24 Hour Fitness spokeswoman.
Agassi visited 24 Hour Fitness clubs and met some of the company's employees before agreeing to the deal.
"We have spent a lot of time looking over their product and what they offer people," Rogers said. "It's a great company and a great management team."
The company, meanwhile, talked to executives at other companies that Agassi endorses, including Nike and Aramis, while considering the endorsement deal, Mastrov said.
24 Hour Fitness also conducted focus groups on Agassi's popularity with consumers and got positive results.
"What is really interesting about Andre is he speaks to women and men equally," Mastrov said. "People respect him and they really like him."
Rogers said Agassi is a good role model for people who want to maintain their level of physical fitness as they age. Agassi at 33 was the oldest male tennis player to be ranked No. 1 in the world when he held that spot for several months last year. Agassi, who turns 34 in April, is now ranked No. 4 in the world.
Although Agassi has broken through age barriers, Rogers acknowledges the new deal will continue after his playing days.
Mastrov said he believes Agassi will be as popular, if not more so, in the United States after his playing days are over, because he will not be traveling internationally so much and will have more time for U.S. appearances and interviews.
"Here in the U.S. people haven't gotten the time to know Andre," Mastrov said.
Agassi's endorsement income was estimated at more than $20 million a year prior to the 24 Hour Fitness deal.
Click here for a listing of 24 Hour Fitness USA Inc.'s sponsorships
Click here for a partial list of Agassi endrosements
