Home - Run Heroes Bring In Few Endorsements
By Sam Walker
10/21/1998
The Wall Street Journal
Page B1
(Copyright (c) 1998, Dow Jones & Company, Inc.)
They broke one of the most glamorous records in sports, which seemed untouchable for 37 years. And they were
credited with everything from saving Major League Baseball to soothing a nation doused in scandal.
But instead of enjoying an expected deluge of ad dollars for product endorsements, Mark McGwire of the St. Louis
Cardinals and Sammy Sosa of the Chicago Cubs have come up short since cracking baseball's single-season homerun record. Between them, they have signed four major deals since eclipsing Roger Maris, for a total of about $2
million. That is little more than pocket change in the sports world and a long way from the $25 million that some
people thought Mr. McGwire alone could pull in next year.
The surprising gap between these players' public acclaim and their commercial exposure is partly a matter of
personality. Neither man seems to be as inherently attractive to corporations as Michael Jordan, who will make more
than $40 million off the basketball court this year. "I don't think either athlete possesses that kind of charisma," says
Bob Williams, president of Burns Sports Celebrity Service, a Chicago sports-marketing firm.
The two heroes' dearth of endorsements is also attributable to a larger shift: Companies are starting to think twice
before trotting out jocks to shill for them. Sales of many athletic goods are falling, along with fan interest in pro
sports. Major League Baseball had an up year, but ratings and attendance in everything from football to basketball
are flat or dropping, as the entertainment field grows more crowded.
This year, Nike slashed its endorsement budget by about $100 million, and shoe-making rival Reebok International
dropped about 700 athlete endorsers. "We're done throwing money around," says Reebok spokesman Dave
Fogelson. "Any athlete we sign now has to play more of a role with the company."
Companies are also mindful that ad campaigns built around celebrity jocks have become ubiquitous. This year
alone, according to one estimate, advertisers will spend $550 million on athlete endorsers. That has left some
companies looking to stand out by emphasizing their brands rather than draping their logos over one individual.
"Athlete endorsers are not in vogue right now," says Mr. Williams of the Burns sports-marketing firm.
To date, Mr. McGwire's only major new ongoing relationship is a national TV deal with McDonald's. That contract
is only for one year with an option for a second. Recent deals with Walt Disney and MasterCard were strictly onetime ventures, and Mr. McGwire lent his image to Anheuser-Busch for a midseason TV spot without compensation.
Mr. Sosa's only new deal is the same McDonalds campaign Mr. McGwire signed on to, for less than $1 million. He
has a previous contract with Nike, but the company isn't planning on any splashy campaign. "We decided just to sit
back and be fans," a Nike spokeswoman says. Total endorsement dollars for Mr. Sosa could be as little as $3 million
this year, far below the rarefied air that Michael Jordan or Tiger Woods inhabit. "This is a second-tier kind of thing,"
says Adam Katz, Mr. Sosa's agent.
General Mills will put Mr. McGwire on 1.5 million boxes of Wheaties, but spokesman David Dix says the McGwire
deal will be a limited run because the slugger isn't on a par with fellow General Mills endorser Mr. Jordan. "It would
really be a reach to suggest that Mark, at this juncture in his career, has reached the pinnacle Michael has," he says.
One missing element from the resume of Mr. McGwire: more championships. "He's a human highlight film, but he
hasn't reached that juncture of super-superstardom," the General Mills spokesman says.
Mr. McGwire's use of the controversial muscle-building supplement androstenedione also worries some companies,
and he has limited his off-season public appearances, until recently. Mr. Sosa has been more cooperative, but his
English is spotty.
Even so, Mr. McGwire and Mr. Sosa had a lot of the features that marketers normally lap up. Not only did they
accomplish what some consider the signature athletic feat of the century, but they were roundly praised for their
class and sportsmanship on and off the field. Mr. Sosa's unflappable humility and good humor, and Mr. McGwire's
refusal to consider any endorsements until after the season, drew lavish praise from all quarters.
"These guys are almost too good to be true," says Jarold Manheim, a professor of media and public affairs at George
Washington University. "They're a counterexample to everything that's wrong with big-time sports."
Agents for both players insist that it's early in the game, and that more deals will come down the road, particularly
when the season resumes next spring. Robert Cohen, Mr. McGwire's agent, says the player's marketing strategy is
"still evolving" but declines to comment further. Company marketers who have dealt with Mr. McGwire, however,
say they have done all the approaching, and the slugger's marketing team is a decidedly informal operation.
By contrast Mark Leonard, who handles Mr. Sosa's marketing efforts, says he has developed laryngitis from
negotiating so much. He says he's already turned away "probably $5 million" in proposals from advertisers who
sought to throw together quick campaigns. Mr. Sosa's strategy, he adds, is to avoid overexposure by forming only
long-term deals with "cornerstone" companies like McDonald's that might make ads in English and Spanish.
"Five years ago, we would have looked for a shoe contract first," Mr. Leonard says, but these days the focus is on
companies outside the sports world.
--Ad Notes....
INTEL CONSOLIDATES: Intel said it has consolidated its consumer ad account at Messner Vetere Berger
McNamee Schmetterer in New York, a unit of Havas Advertising's Euro RSCG Worldwide. The account for the
Santa Clara, Calif., technology company had previously been split between Messner and its sister agency Euro
RSCG DSW in San Francisco. Spending on the account is estimated at $100 million. Euro RSCG DSW will
continue to handle business-to-business and interactive advertising.
FCB BATTLES OBESITY: True North Communications' Foote Cone & Belding said it will launch an ad campaign
this week for Meridia, a weight-loss prescription drug that helps control appetites. The drug is made by BASF's U.S.
pharmaceutical unit, Knoll Pharmaceuticals. FCB won the account in July, beating out Young & Rubicam in a
review. Spending is estimated at $50 million. Print and TV ads will use the tagline: "You Do Your Part. We'll Do
Ours."
JWT PROMOTES HAMILTON: WPP Group's J. Walter Thompson said it named Bill Hamilton senior vice
president, worldwide creative director. Mr. Hamilton, 55 years old, will continue to be the creative director on the
Merrill Lynch account, which the agency won in July. Larry Tolpin and Allen Thomas also hold the world-wide
creative director title.
Journal Link: For more on commercial endorsements by athletes, see Power Lunch at 1:30 pm EDT on CNBC.
Pay Dearth
Since breaking baseball's most famous record, Sammy Sosa and Mark
McGwire have signed endorsement deals for only about $2 million.
Here's how other famous athletes are doing:
Player: Michael Jordan, basketball
Endorsements in '98 (in millions): $40-$60
Portfolio Highlights: Launched popular cologne manufactured by Bijan.
Introduced new line of Nike-manufactured `Jordan' shoes and apparel.
Player: Tiger Woods, golf
Endorsements in '98 (in millions): $20-$30
Portfolio Highlights: Endorsement list includes Wheaties, Nike,
American Express and Rolex watches.
Player: Grant Hill, basketball
Endorsements in '98 (in millions): $18-$19
Portfolio Highlights: Signed seven-year extension last year with Fila.
Also pitches for Sprite, McDonald's and Northwest Airlines.
Player: Cal Ripken Jr., baseball
Endorsements in '98 (in millions): $8-$10
Portfolio Highlights: In addition to holding deals with Nabisco and
Chevy trucks, Mr. Ripken and New York Mets pitcher Hideo Nomo own
international baseball camp.
Player: Brett Favre, football
Endorsements in '98 (in millions): $4-$5
Portfolio Highlights: Green Bay quarterback has deals with Nike and
Pepsi. Also has own candy bar and two Wisconsin steakhouses.
Sources: Player agents, sports marketing analysts