Recently in Endorsements Category
Michael Phelps is a superstar within the United States and around the world after his unheard of 8 gold medals at the Olympic games. Before he became a superstar along with his swim team years ago they were signed to a promote a protein powder that was new to the market. They were all younger and unknown at the time just like the company. Now that they are all big stars in the world they must still continue to honor their promotion contract with this hardly known company and will be making close to no money off of it. I doubt Phelps really cares that much being now he is making over $50 million in promotions due to the national hero he became after the Olympics. This protein company known as PureSport certainly lucked out, and now may be able to make a name for itself having these celebrity figures endorse its product. This company has the chance to make itself known by riding its endorsement deal on some of the most well known people swimmers in the world.
It has always been known that fans like winners, but the extent of this may be surprising.
The Turnkey Brand Index survey was highly populated with winners with the top 15 of 20 top franchises making the playoffs in their leagues. Teams like the Boston Celtics who went from last to first saw their index almost rise 50 point, with the New Orleans Hornets rasing almost 25 points. Other side is though, teams losing also saw their index declining as well. This is all important to marketing executives because if they can identify a swing in an area so they can have an impact.
From: http://www.sportsbusinessjournal.com/article/60748
As much as this information comes unsurprising that when a team is winning, the more people buy their products and support their team. the problem I have is that it shows how hard it is to be a professional athlete. When you're team is losing most likely you arent going to be seeing jerseys in the streets but when you are its like paradise. People may say winning isnt everything but this survey proves that for these athletes that saying may not be so far away from the truth than we think
THATS IT!!! its a done deal finally. ESPN has now been named the new home for the four big BCS bowl games. It has been talked about for weeks now and everyone has seemed to see it coming. FOX sports was outbid by ESPN by around $100 million posting a staggering $495 million big to be paid out over four years. The news comes from the SportsBusiness journal reporting that it did not take long for the BCS presidential oversight committee to okay the deal from ESPN. University Presidents were expected to make a big stink about the games going to cable television, but no such resistance was met for ESPN and the BCS committee. FOX was reportedly overpowered by the bid and was not able to conjure up a reason for making their bid any higher, they were just not going to win this battle.
The BCS bowl games are now going to be on cable television... Hmmm is that good or bad? For one thing, its going to make ESPN millions of dollars as it still has part of the rights to the Rose Bowl as well which is already aired on ABC. They are expected to make record revenue from this deal just in advertisements alone. However, 16 million fewer people have the ability to watch the newly cable televised bowl games, I guess we will see how people react to that. This has been an interesting story to follow as we slowly begin to see more and more championship games and matches go from over the air television to cable stations. Who's/what is next to go??????
Dale Earnhardt Jr. is one of NASCARs most popular drivers without a doubt. He has earned this popularity due to his outstanding racing skills that have gotten him to the point where he now is in his career. Earnhardt lately is in a bit of a drought and is looking to break that streak of 62 winless soon. Among NASCAR fans 1/3 people consider Earnhardt their favorite driver. Earnhardt is on the line if he does not start winning some races. At this point he earns around $22 million a year in endorsements which is far more then other drivers. This shocks some since he is far behind other drivers as far as success goes. NASCAR feels Earnhardt is becoming the A-Rod of their sport. Even if Earnhardt doesn't start winning consistant his sponsors won't leave him out in the cold. NASCAR needs Earnhardt to start winning to help the organization as a whole. If the big gun isn't winning people arent watching. Although Earnhardt will still be making his money, NASCAR is losing money while he finishes outside of the top spot. Earnhardt is the big star of the sport and they need him to succeed in order for the organization as a whole to grow.
Baron Davis, Los Angeles Clippers point guard recently signed a 5 year contract with apparel company Li-Ning in China, writes Sports Business Journal. He plans on creating his own line of shoes and clothing to be sold initially to only the Chinese consumers. Eventually the line could make it to the United States. Li-Ning is trying to approach the American market slowly by using a star in American society like Baron Davis. The 5 year deal Davis has with Li-Ning is supposedly the largest deal by a non-Chinese person with a Chinese company. Davis has already filmed commercials to be showed in China. In past years, Davis had endorsed Reebok, but that contract ended over the summer. The new contract with Li-Ning should be a huge success in China. Davis is not the only NBA player to sign with Chinese companies. Stars such as Jason Kidd and Shaquille O'Neal have contracts of their own with companies like Peak and Li-Ning. Who knows how many American athletes will soon be part of the Chinese Market.
The American market has been decreasing recently. With better opportunities for endorsements in China, more American athletes are bound to go international. Endorsements in China should create a much higher awareness of American athletes, resulting in a great increase in the American sports industry market. Not only will international endorsements help, but lately American professional sports leagues have been traveling across the seas quite a bit. International experience is a key towards future success.
Hamilton's contract with McLaren , is worth an estimated £75 million over five years and a sponsorship deal with Reebok adding another £20 million. His contract is due to be up in 2012, he contract should jump to a pretty purse of 30 million a year plus any sponsorships dollars he will acquire by then. All of this will push his career earnings past 500 million.
People are interested in contracts in the mainstream sports today, maybe they should look into F1 racing.....
read more...
Sports Business Journal is reporting that Olympic athletes, swimmers in particular, are in desperate search of endorsements. Big time companies are unwilling to sign new endorsees and do not want to spend money on big time deals during this economic dow
nfall. Many companies simply do not have the money to spend on famous faces to sell their products. This comes as a surprise to many because of the record setting ratings and level of interest that the Beijing Games generated.
Instead of companies like Tyr swimming and Speedo going out and spending money on new faces to sell their products, they are simply sitting around waiting for the economy to get better. With faces like Phelps, Lezak and Torres, you would think these companies would jump on these guys to help sell their swimwear. Maybe if they spent a little money, record breaking athletes could bring in record breaking revenue. Maybe Michael Phelps could use his Gold medals and pull out another miracle to save the Olympics.
It seems that all of that talk during the Olympics about Michael Phelps' endorsement potential is finally beginning to take shape. Kellogg's is among the first in what I'm sure will be a long line of companies to cash in on the fame and fortune that comes with the world's largest TV audience. It gets even better... Kellogg's has pledged $250,000 to the Michael Phelps Foundation. Phelps started the foundation with the $1 million bonus that he received from Speedo for tying Mark Spitz's record of seven gold medals. Not too shabby.
From sportsbusinessdaily.com (registration/subscription required)
Kellogg Co. has unveiled the special-edition packaging featuring U.S. Gold Medal-winning swimmer Michael Phelps that will appear on boxes of Frosted Flakes, Corn Flakes, Club Crackers and Rice Krispies Treats Marshmallow Squares in the U.S. beginning this week. The packaging will depict some of Phelps' signature moments from the Beijing Games. Meanwhile, Kellogg's Corporate Citizenship Fund has pledged $250,000 to the Michael Phelps Foundation (Kellogg Co.). Phelps: "My friends were joking with me, asking, 'So you're going to be (on cereal boxes) with Tony the Tiger?' I said 'Yup.' Pretty cool" (Baltimore SUN, 9/26). In Baltimore, Elizabeth Large wrote, "I can see why you'd want Phelps on your box of Frosted Flakes, to encourage the little tykes who hero-worship him to buy your breakfast cereal. But Club Crackers?" (BALTIMORESUN.com, 9/25).
Brandon Jennings made quite a buzz when he decided to go overseas and play basketball instead of attending the University of Arizona. Now he is in the news again, after it was unveiled that he would be the face of Under Armour's new basketball clothing line. He signed a multi-year deal to be the first basketball player to sponsor the company. "Jennings will wear Under Armour's highly anticipated basketball sneakers, expected to be released in early 2009." Jennings was represented by Sonny Vaccaro in the deal, who is a long time sports marketing executive.
When the NBA created its age limit for, it was meant to help players get experience and improve their game in college before stepping into the NBA. They forgot to factor in a person's right to make money and support his family. When Brandon Jennings decided to forgo college and go play in Italy for money he was doing what he thought was best for him. If he were in college he would not have been able to sign the lucrative deal with Under Armour and he would be in a completely different situation. Instead he is now on his way to being a millionaire and being a household name as well as the face of a brand new sneaker.
The NBA needs to step back and let the kids who are coming out of high school decide for themselves if they are ready to make the jump to the NBA. If they fail they have no one to blame but themselves. But for kids like Jennings it is easy to understand taking millions of dollars and going overseas for a year, instead of sitting in a college dorm room making no money!!!
I love coffee. I can't do anything in the morning until I've had at least 2 cups. I've even gone as far as to drink that swill that McDonald's tries to pass as iced coffee. Like most of the rest of us I have a coffee maker at home. I splurged and spent $60 on a thermal Krups that keeps it warm a bit longer than your typical glass coffee maker. But $1000??!!?!?!?!?!? Ok... I suppose you can charge $1000 for a coffee maker if you've got Roger Federer hocking your wares.
Swiss coffee machine maker Jura, who sells its $1000+ coffee makers in Williams-Sonoma and other high-end (some would say pretentious) stores has done pretty well for itself with Federer. Last year, according to a story in the Sports Business Journal (registration required), Jura's sales rose 18 percent, to $343 million. Not too shabby... Let's see $343,000,000 / $1,000 means they sold around $343K coffee makers. To who? I have no idea.
At any rate Federer's hard work is paying off with a new endorsement deal worth $16 million over seven years. Hey... if I buy a Jura do you think I'll have a serve like Federer's? I'm off to Williams-Sonoma right now.
P.S. I just checked williams-sonoma.com. It's not $1000, it's $3,300! Look for yourself. Now I want his backhand, too.
