Sports MarketingSports Marketing

What is Sports Marketing?

• Sports marketing is the use of sports to market products (DUH)

– So for example companies place their logos on jersey’s of teams they represent. This gets them exposure on many levels.

• Under Armour, Nike, Reebok, Adidas, etc.

Gross Impressions

• Companies monitor their exposure by counting the number of times per advertisement, game, or show that a product or service associated with an athlete, team, or entertainer. This number is known as gross impressions.– This may be subtle such as a small logo on a uniform. Every

time you see a product or company logo your brain records that image. Advertisers hope you remember it when you buy such a product!

Timing

• Timing is very important in sports marketing because fans want products that identify them with a winner. So a teams wins and losses are more than just points. There is a dollar value that takes a hit as well.

Michael Phelps

Why Sports?Why Sports?

• In 2007 an estimated 30 million people In 2007 an estimated 30 million people watched the Super Bowl worldwide!watched the Super Bowl worldwide!

• Average attendance for sportsAverage attendance for sports– NFL 69,000 per game x 16 games x 32 teams = 35,328,000 fansNFL 69,000 per game x 16 games x 32 teams = 35,328,000 fans– MLB 33,000 per game x 160 games x 30 teams = 158,400,000MLB 33,000 per game x 160 games x 30 teams = 158,400,000– NBA 17,000 per game x 82 games x 30 teams = 41,820,000NBA 17,000 per game x 82 games x 30 teams = 41,820,000– NHL 17,000 per game x 82 games x 30 teams = 41,820,000NHL 17,000 per game x 82 games x 30 teams = 41,820,000

• If 10% of that audience spends roughly $20 at your store If 10% of that audience spends roughly $20 at your store you would bring in $554,736,000 in revenue annually.you would bring in $554,736,000 in revenue annually.

Sports Marketing Firms

• Sports firms bring business sponsors Sports firms bring business sponsors together with sports teams, individual together with sports teams, individual athletes, and coaches. athletes, and coaches.

• Next it negotiates terms of a contract Next it negotiates terms of a contract between them and manages the between them and manages the contract for both parties.contract for both parties.

• Firms match athletes and businesses Firms match athletes and businesses for mutual benefitsfor mutual benefits

Marketing Myth• Sports movies are often criticized for poor acting and little Sports movies are often criticized for poor acting and little

plot. The top five income producing sports movies as of the plot. The top five income producing sports movies as of the end of 2006 may change that mind set.end of 2006 may change that mind set.

1.1. Waterboy (1998): $161,456,592Waterboy (1998): $161,456,5922.2. The Longest Yard (2005): $158,000,000The Longest Yard (2005): $158,000,0003.3. Jerry Maguire (1996): $153,620,822Jerry Maguire (1996): $153,620,822

4. Talladega Nights (2006): $148,000,0004. Talladega Nights (2006): $148,000,0005. Rocky IV (1985): $127,873,7165. Rocky IV (1985): $127,873,7166. Rocky III (1982): $122,823,1926. Rocky III (1982): $122,823,1927. Seabiscuit (2003): $118,251,5557. Seabiscuit (2003): $118,251,5558. Rocky (1976) - $117,000,0008. Rocky (1976) - $117,000,0009. Remember The Titans (2000) - $115,000,0009. Remember The Titans (2000) - $115,000,00010. Dodgeball (2004) - $114,000,00010. Dodgeball (2004) - $114,000,00011. A League Of Their Own (1992) - $107,000,00011. A League Of Their Own (1992) - $107,000,00012. Million Dollar Baby (2004) - $100,000,00012. Million Dollar Baby (2004) - $100,000,000

• What can you conclude from the popularity of sports What can you conclude from the popularity of sports movies?movies?

Agents• One owner or multiple agents

• An agent is a person responsible for making contacts with clients and sponsors

• Scott Boras, MLB– Carlos Beltran, Johnny Damon, Prince Fielder, Matt Holiday,

Manny Ramirez, Alex Rodriguez, Mark Texiera• Drew Rosenhaus, NFL

– Anquan Boldin, Ocho Cinco, Plaxico Burress, Terrell Owens, Clinton Portis

• David Falk, NBA– Charles Barkley, Elton Brand, Patrick Ewing, Allen Iverson,

Michael Jordan, Stephon Marbury

The Power of Sports

• More time and money are More time and money are spent in sports than any spent in sports than any other recreational pursuit other recreational pursuit in the countryin the country

• Sports fans spend a lot Sports fans spend a lot of mental energy on their of mental energy on their favorite teams and favorite teams and athletesathletes

• EMOTIONAL TIESEMOTIONAL TIES– The power of athletics as The power of athletics as

a marketing aid can be a marketing aid can be explained partly by the explained partly by the emotional ties people feel emotional ties people feel towards sportstowards sports

– Millions of people feel Millions of people feel intense love, joy, hate, or intense love, joy, hate, or disappointment over disappointment over sportssports

Condone the EntertainerCondone the Entertainer

• Fans will often ignore an athletes past Fans will often ignore an athletes past to be entertained.to be entertained.

• In 1999 fans spent on average $49.95 to In 1999 fans spent on average $49.95 to see Mike Tyson fight Francois Botha see Mike Tyson fight Francois Botha and raise for him $148 million after his and raise for him $148 million after his 1995 release from prison. 1995 release from prison.

• Other Forgiven Fan FavoritesOther Forgiven Fan Favorites– Kobe Bryant, Charles Barkley, Ray Lewis, Kobe Bryant, Charles Barkley, Ray Lewis,

Terrell Owens, Jason Giambi, Corey DillonTerrell Owens, Jason Giambi, Corey Dillon

Corey Dillon Rap Sheet

•Arrested for: DUI, theft (twice), intent to Arrested for: DUI, theft (twice), intent to sell cocaine, obstructing a police sell cocaine, obstructing a police officer (thrice), resisting arrest (twice), officer (thrice), resisting arrest (twice), assault (five times), criminal trespass, assault (five times), criminal trespass, malicious mischief (twice), reckless malicious mischief (twice), reckless endangerment (twice), domestic endangerment (twice), domestic violence, rape violence, rape

Sponsors

• A sponsor is a person, organization, or A sponsor is a person, organization, or business that gives money or donates business that gives money or donates products and services to another products and services to another person, organization, or event in person, organization, or event in exchange for public recognition. exchange for public recognition.

• For example, if Phil’s Pizza sponsors For example, if Phil’s Pizza sponsors your recreational basketball team!your recreational basketball team!

Reasons to Sponsor

• Increase Sales• Introduce new product or

service to large audience• Compete where many

potential customers are in one place

• To be identified with an even in which target market is intersted

• Earn goodwill of audience

• Show commitment to community

• Enter new markets• Entertain clients,

employees, or potential customers

• Enhance companies’ image

Returns

• Since costs can be high, sponsors carefully watch the returns on their sponsorships.

• A returnreturn is the profit the sponsor earns for support.

• For example, Phil’s would likely see an increase in sales because of its sponsorship!

Endorsements

• An endorsement is a person’s public expression of approval or support for a product or service.

• They are a promotional tool rather than a form of sponsorship.

• If two people are seen on a commercial speaking of a product they are not endorsers because they are acting as spokespersons for the company.

Endorsement Rules

• However, a well known race car driver for a brand of tires is an endorsement because:– The public knows the person is a real

professional driver– Public assumes the comments are personal

opinion– Public assumes the driver would not make

comment if he/she did not believe it

Endorsement Restrictions

• Endorsements must– Always reflect honest opinions, findings, beliefs or

experiences of the endorser– Endorser must have real experience with product– Not include deceptive or misleading statements.– Must not be reworded or out of context– Endorser must use and continue to use and believe in

product for as long as he/she endorses product– If product changes in any way, endorser must be

notified, and the endorser must continue to use and believe in new product

Most Endorsed AthletesMost Endorsed Athletes

1.1. Tiger Woods ($100 Million)Tiger Woods ($100 Million)2.2. Phil Mickelson ($48 Million)Phil Mickelson ($48 Million)3.3. LeBron James ($25 Million)LeBron James ($25 Million)4.4. Dale Earnhart Jr. ($25 Dale Earnhart Jr. ($25

Million)Million)5.5. Michelle Wie ($19.5 Million)Michelle Wie ($19.5 Million)

6.6. Kobe Bryant ($16 Million)Kobe Bryant ($16 Million)7.7. Jeff Gordon ($15 Million)Jeff Gordon ($15 Million)8.8. Shaquille O’Neal ($15 Shaquille O’Neal ($15

Million)Million)9.9. Peyton Manning ($13 Peyton Manning ($13

Million)Million)10.10. Dwayne Wade ($12 Million)Dwayne Wade ($12 Million)

• Do you find anything odd Do you find anything odd about this list?about this list?

Who Endorses Who?$ Derek Jeter and Gatorade $ Peyton Manning and Direct

TV $ Dan Marino and Nutrisystem $ Michael Jordan and Nike $ Tiger Woods and Buick $ Jeff Gordon and TAG Heuer $ Danica Patrick and GoDaddy $ Charles Barkley and T-

Mobile $ David Beckham and Adidas $ Dwayne Wade and Converse

$ Yao Ming and Reebok $ Brady Quinn and EAS

Nutrition $ Kasey Kahne and Vitamin

Water $ Maria Sharapova and Canon $ Coach Krzyzewski and

American Express $ Lebron James and

Powerade $ John Madden and Electronic

Arts $ Tony Hawk and Activision

Top Sporting Events

• 1. NFL Football1. NFL Football• 2. NASCAR 2. NASCAR • 3. NCAA Football 3. NCAA Football • 4. MLB Baseball 4. MLB Baseball • 5. NCAA Basketball 5. NCAA Basketball • 6. NBA Basketball 6. NBA Basketball • 7. NHL Hockey 7. NHL Hockey • 8. PGA Golf 8. PGA Golf • 9. AFL Arena Football 9. AFL Arena Football • 10. NCAA Baseball 10. NCAA Baseball • 11. Olympic Sports 11. Olympic Sports