Endorsement Deals: Not So Fast

Endorsement deals for professional athletes have often come after a strong athletic showing or presence has been established. These deals come in droves. Then when a public scandal erupts all of those companies start scrambling and dropping those deals as fast as they were offered.

When video revealed running back Ray Rice of the Baltimore Ravens punching out his fiance with a in February he was suspended indefinitely by the NFL. the same day a shocking video surfaced showing the NFL star knocking out his future wife with a punch in February.

Endorsement deals began to end soon after the February incident. Vertimax, a sports equipment company ended their deal with him followed by Dick’s Sporting Goods and Modell’s pulling his jerseys from stores. Nike ended their endorsement, and EA Sports said it would scrub Rice from the Madden NFL 15 video game. Rice currently has no remaining active endorsement deals.

I believe that in the times coming there will be vetting beyond a player's ability to play when it comes to endorsement deals. Companies may wish to dig into a player's personal history before signing on the line. Aligning with a player who has questionable morals could be damaging for the endorsing company. In this digital day and age when news is reported as it happens a company cannot afford themselves scandals such as these. A moral compass verified by an extensive vetting process will lessen the occurrence of scandals like those of Ray Rice.

http://fortune.com/2014/09/20/ray-rice-adrian-peterson-tiger-woods-athletes-dropped-endorsements/

Olympic Sponsors & Their Hefty Price Tags

The 2012 London Olympics list of sponsors commanded some very impressive vendors. The sponsors range in type. Worldwide sponsors are comprised of 11 big companies such as Coca Cola, who sponsor at amounts in the range of $100m through the International Olympic Committee. Tier One sponsors include partners, such as Adidas, BT and BMW, who each pay around $40m - there are seven of these. Additionally seven "supporters" paid $20m and then 28 "suppliers" pay around $10m.

Sponsors of the Olympics pay hefty price tags for incredible worldwide exposure. Here is a detailed look at the 2012 London Olympic Sponsorship List

Company	Type	Value, $m, total known deal	£m
Coca Cola	Worldwide	100	64
Acer	Worldwide	100	64
Atos	Worldwide	100	64
GE	Worldwide	100	64
Dow	Worldwide	100	64
McDonald's	Worldwide	100	64
Omega	Worldwide	100	64
Panasonic	Worldwide	100	64
P&G	Worldwide	100	64
Samsung	Worldwide	100	64
Visa	Worldwide	100	64
Adidas	London 2012 Olympic Partners	63	40
BMW	London 2012 Olympic Partners	63	40
BP	London 2012 Olympic Partners	63	40
British Airways	London 2012 Olympic Partners	63	40
BT	London 2012 Olympic Partners	63	40
EDF	London 2012 Olympic Partners	63	40
Lloyds TSB	London 2012 Olympic Partners	63	40
Adecco	London 2012 Olympic Supporters	31	20
ArcelorMittal	London 2012 Olympic Supporters	31	20
Cadbury	London 2012 Olympic Supporters	31	20
Cisco	London 2012 Olympic Supporters	31	20
Deloitte	London 2012 Olympic Supporters	31	20
Thomas Cook	London 2012 Olympic Supporters	31	20
UPS	London 2012 Olympic Supporters	31	20
Aggreko	London 2012 Olympic Providers and Suppliers	15	10
Airwave	London 2012 Olympic Providers and Suppliers	15	10
Atkins	London 2012 Olympic Providers and Suppliers	15	10
The Boston Consulting Group	London 2012 Olympic Providers and Suppliers	15	10
CBS Outdoor	London 2012 Olympic Providers and Suppliers	15	10
Crystal CG	London 2012 Olympic Providers and Suppliers	15	10
Eurostar	London 2012 Olympic Providers and Suppliers	15	10
Freshfields Bruckhaus Deringer LLP	London 2012 Olympic Providers and Suppliers	15	10
G4S	London 2012 Olympic Providers and Suppliers	15	10
GlaxoSmithKline	London 2012 Olympic Providers and Suppliers	15	10
Gymnova	London 2012 Olympic Providers and Suppliers	15	10
Heathrow Airport	London 2012 Olympic Providers and Suppliers	15	10
Heineken UK	London 2012 Olympic Providers and Suppliers	15	10
Holiday Inn	London 2012 Olympic Providers and Suppliers	15	10
John Lewis	London 2012 Olympic Providers and Suppliers	15	10
McCann Worldgroup	London 2012 Olympic Providers and Suppliers	15	10
Mondo	London 2012 Olympic Providers and Suppliers	15	10
Nature Valley	London 2012 Olympic Providers and Suppliers	15	10
Next	London 2012 Olympic Providers and Suppliers	15	10
Nielsen	London 2012 Olympic Providers and Suppliers	15	10
Populous	London 2012 Olympic Providers and Suppliers	15	10
Rapiscan Systems	London 2012 Olympic Providers and Suppliers	15	10
Rio Tinto	London 2012 Olympic Providers and Suppliers	15	10
Technogym	London 2012 Olympic Providers and Suppliers	15	10
Thames Water	London 2012 Olympic Providers and Suppliers	15	10
Ticketmaster	London 2012 Olympic Providers and Suppliers	15	10
Trebor	London 2012 Olympic Providers and Suppliers	15	10
Westfield	London 2012 Olympic Providers and Suppliers	15	10
TOTAL, INC IOC		2,178	1,404
TOTAL, LONDON ONLY		1,078	700

Olympic Athletes- Your Morals Matter: Just Ask Michael Phelps

It has become a classic case these days- that darn internet and what we allow on it publicly can come back to bite you- right in the pocketbook! Just ask Olympic swimming gold medal winner Michael Phelps. 

When Phelps was revealed in a photo where it appeared he was using a bong Kellogg's decided to end the marketing contract they had with him. They felt it portrayed him in a negative likeness that did not correspond to his Olympian profile. 

Understandably businesses tend to shrink  away from individuals who would put their integroty as a business in jeopardy. Kellogg's reputation is that they be represented by those who are positive role models.

Unfortunately Phelps' actions have become like a domino game resulting in poor choices that have cost him credibility in the public eye.

Morals clauses are common place in many endorsement deals for Olympic athletes. A company desires for those marketing their products and company to portray a positive image as it reflects on both the athlete and the company.Olymi

Reference: http://blogs.reuters.com/mediafile/2009/02/06/kellogg-drops-phelps-after-photos/

Photo cred: http://101easy.files.wordpress.com/2012/07/michael-phelps-smoking-pot-weed-marijuana.jpg?w=199

Sports Promotions: The Proof is in the Fans

Sports promotions are necessary to drive fans and fan loyalty for a team. The biggest means of promotion right now comes in the form of social media. Players, teams, even mascots lead massive amounts of followers and fans on their profiles and pages. The impact of these powerful tools generates a buzz that if and when lit tactfully will corral fans in ticket sales, gear sales and free advertising.

The effectiveness of sports promotions through social media can be measured through analytics and the reactions (positive and negative) of the fans and followers. If the fans are responding and the demographic information suggests a surge where the promotion was targeted then the promotion can be considered successful.

People live for promotions and deals. They want to be a part of something bugger and if they can get a perk- no matter how big or small they are in it!

Give Me the Freebies!: Team Swag for Tickets

There isn't anyone who does not love free swag! Especially when it comes from your favorite sports teams! Going to the Atlanta Braves games always pays off in getting free stuff from buying tickets. You can come home with a foam tomahawk, towel or cap not to mention some really great deals on prices.

Almost every week a deal for the scouts, schools or some sort of theme night will bring in the crowds. Using gimmicks and free gear is a surefire way to get folks to the stadium. Using technology and social media helps spread the word and before long there are fans pulling in from every part of the Metro Atlanta area.

Naming Rights: To Be or Not To Be

Naming rights for college bowl games have become extremely popular. You can't blame a school for wanting to pool the money in nor can you blame the sponsor for exclusivity which will bring millions to their brand in one sitting. Still, the fact that some games like the Michigan-Ohio rivalry game who choose not to allow naming rights is also understandable. 

In 2004 discussions to allow naming rights for the annual football game the SBC Michigan-Ohio State Classic. After much deliberation the decision was made.

"Michigan athletic director Bill Martin and university president Mary Sue Coleman decided that giving a formal title to what has been known to generations of fans as simply "The Game" was unacceptable.

"The money was not the issue. We didn't even talk about the money," Martin said during a telephone interview. "It was a matter from president Coleman's perspective and mine in the final analysis that this was inconsistent with the values that we share with the greater Michigan family."

"As we attempted to move forward, it became apparent that this agreement could detract from the great tradition of the game itself," Ohio State athletic director Andy Geiger said 
(http://usatoday30.usatoday.com/sports/college/football/bigten/2004-10-27-rivalry-name-nullified_x.htm)."

Such a decision says a lot about a long running tradition between two schools who value the long standing honor of the game and rivalry.

Social Networking & Athletics

Athletes and athletic organizations are using social networking for immediate reaction in the area of marketing. Organizations are using it to encourage fan support for big games and to drive ticket and
merchandise sales. They are also using it to make announcements and drive happenings in the organizations.

Athletes are using social networking to draw a bigger fan base and contribute to the goings on of the tram as a whole. Having popular players on social media creates more of a buzz for the player as well as the team. Some players are very good about interaction with their fans too. There are athletes on Twitter who will retweet their fans in their team gear or shout outs to the team. This is all relational marketing that inflates buzz that keeps teams and players trending.