Presented By: Amanda Bolden, Gloria Gonzalez, Corey Jackson, and , Boris Pilev
September 9, 2008

• Characteristics of markets
– Growth
• Said to have experienced high rate of growth after the 1984 Summer Olympics in
Los Angeles.
• Coca-Cola spent $30Million on sponsorship of games
– Current
• Sports Marketing a $250Billion industry. Includes activities such as: advertising, naming rights, athlete endorsements, facility construction, sporting goods and licensed merchandise, broadcasting rights, video games, etc.
• Some companies pay up to $200Million for highest level of sponsorship at 2008
Summer Olympics.
• CCTV and NBC exclusive broadcasting rights
CCTV $17 million for exclusive broadcast to Summer Olympics, could obtain $394 million in advertising revenue. By comparison, NBC paid $894 million for broadcast rights in the United
States and is expected to garner more than $1 billion in ad revenue.

• WHERE MONEY CHANGES HANDS
– Sponsorships/Endorsements
– Licensing
• $16Billion Worldwide
– Naming Rights as Advertising
• Emirates Stadium (Arsenal Football Club) – £100Million
• Citi Field (New York Mets) - $20Million

• Players moving across borders to highest bidders
• Corporations entering into long term deals for advertising
• Growth expected to continue in coming years.
• Fantasy sports a rising market for advertising.

A lot of athletes change their club, even their country to persuade more opportunities

Brazilian soccer players who played on EURO 2008
Guerreiro Roger (Poland)
Mehmet Aurelio (Turkey)
Deco (Portugal)
Pepe (Portugal)
Kevin Kuranyi (Germany)
Marcos Senna (Spain)
Eduardo da Silva (Croatia)

David Beckham as commercial icon
Revenues from his advertising campaigns during the 2002 and 2003 alone - $23.8 million.
Becks image is used by:
Pepsi
Armani
Adidas
Castrol
Vodafone
Beckham’s former team, Real Madrid, sold about 100, 000 jersey the first days after he joined the team.
Currently, he is on a “popularizing the soccer in US” crusade, playing for LA
Galaxy

$$$$ and sport- more connected than ever
Baseball player Alex Rodriguez, former shortstop for the Texas Rangers, had a contract that pays him $252 million over 10 years.
Manchester United signed Dimitar
Berbatov for $57 million . His previous club, Tottenham Hotspurs , paid JUST
$20 million

Tennis
BASIC COSTS:
• Private lessons cost $100/hour or more
• Racquets range from $50-$300
• Tennis Shoes cost around $60-$90
PLUS: court fees, personal apparel, balls and other equipment, replenishment of the basics

Event
U.S. Open
(Flushing, NY)
Wimbledon
(London)
Australian Open
(Melbourne)
Men Ticket Women
Ticket
$11 - $50,000 $24 - $1745 $220 million revenue
$1790-$5990 $1590-$2590 18,191 tennis ball key-rings.
$560-$1,025 $650-$950 554,858 attendees
Ticket prices from stubhub.com, ticketjones.com, tennisboxoffice.com

• Monetary prizes are awarded to tournament champions and all qualifiers.
• But, the athletes count on endorsement offers for higher pay.
Andre Agassi
Maria Sharapova

• Latin Influence :
– In 2006 23 out of 71 All-Stars and
6 of the 10 players with the highest batting averages were
Latino
– Players are purchased as young as 16 years old
• Japanese Influence :
– Japan accounts for about 40 percent of M.L.B. International's revenues (~$520 million).
– Unlike Latino players, Japanese players are purchased when they have matured
• E.g. Matsuzaka was paid $52 million for six years

• Like many industries today, baseball is finding it cost effective to search for talent in Latin American countries
– Talent is dwindling in the U.S.
– Cost of signing American players is increasing
• Latino players can avoid the amateur draft and can be signed for a fraction of the cost of American players, some for as little as $2,000
• In July 2008, Dominican pitcher
Michael Inoa received a $4.25 million, the most a Latino teen has ever gotten.

• Establish clubs , or training facilities, in emerging countries to combat a lack of proper nutrition and a shortage of fundamental skills.
• Fidel Castro banned baseball in Cuba in 1960
• In 2007, MLB sales surpassed $6 billion
– Ticket sales and media broadcasting