Sports 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?
• In 2007 an estimated 30 million people
watched the Super Bowl worldwide!
• Average attendance for sports
–
–
–
–
NFL 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 = 158,400,000
NBA 17,000 per game x 82 games x 30 teams = 41,820,000
NHL 17,000 per game x 82 games x 30 teams = 41,820,000
• If 10% of that audience spends roughly $20 at your store
you would bring in $554,736,000 in revenue annually.
Sports Marketing Firms
• Sports firms bring business sponsors
together with sports teams, individual
athletes, and coaches.
• Next it negotiates terms of a contract
between them and manages the
contract for both parties.
• Firms match athletes and businesses
for mutual benefits
Marketing Myth
•
•
Sports movies are often criticized for poor acting and little
plot. The top five income producing sports movies as of the
end of 2006 may change that mind set.
1.
2.
3.
Waterboy (1998): $161,456,592
The Longest Yard (2005): $158,000,000
Jerry Maguire (1996): $153,620,822
4.
5.
6.
7.
8.
9.
10.
11.
12.
Talladega Nights (2006): $148,000,000
Rocky IV (1985): $127,873,716
Rocky III (1982): $122,823,192
Seabiscuit (2003): $118,251,555
Rocky (1976) - $117,000,000
Remember The Titans (2000) - $115,000,000
Dodgeball (2004) - $114,000,000
A League Of Their Own (1992) - $107,000,000
Million Dollar Baby (2004) - $100,000,000
What can you conclude from the popularity of sports
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 spent in sports than
any other recreational
pursuit in the country
• Sports fans spend a lot
of mental energy on
their favorite teams and
athletes
• EMOTIONAL TIES
– The power of athletics as
a marketing aid can be
explained partly by the
emotional ties people feel
towards sports
– Millions of people feel
intense love, joy, hate, or
disappointment over
sports
Condone the Entertainer
• Fans will often ignore an athletes past
to be entertained.
• In 1999 fans spent on average $49.95 to
see Mike Tyson fight Francois Botha
and raise for him $148 million after his
1995 release from prison.
• Other Forgiven Fan Favorites
– Kobe Bryant, Charles Barkley, Ray Lewis,
Terrell Owens, Jason Giambi, Corey Dillon
Corey Dillon Rap Sheet
•
Arrested for: DUI, theft (twice), intent to
sell cocaine, obstructing a police
officer (thrice), resisting arrest (twice),
assault (five times), criminal trespass,
malicious mischief (twice), reckless
endangerment (twice), domestic
violence, rape
Sponsors
• A sponsor is a person, organization, or
business that gives money or donates
products and services to another
person, organization, or event in
exchange for public recognition.
• For example, if Phil’s Pizza sponsors
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 return 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 Athletes
1.
2.
3.
4.
Tiger Woods ($100 Million)
Phil Mickelson ($48 Million)
LeBron James ($25 Million)
Dale Earnhart Jr. ($25
Million)
5. Michelle Wie ($19.5 Million)
6. Kobe Bryant ($16 Million)
7. Jeff Gordon ($15 Million)
8. Shaquille O’Neal ($15
Million)
9. Peyton Manning ($13
Million)
10. Dwayne Wade ($12 Million)
•
Do you find anything odd
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 TMobile
$ 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
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1. NFL Football
2. NASCAR
3. NCAA Football
4. MLB Baseball
5. NCAA Basketball
6. NBA Basketball
7. NHL Hockey
8. PGA Golf
9. AFL Arena Football
10. NCAA Baseball
11. Olympic Sports