"PGA Tour uncorks specialty licensing effort" by Sarah Zdesarv8, i 39 pg8

When I first saw this article, I was pretty shocked. I thought that the bottle of PGA Tour wine that we have at our house was a special bottle, one-of-a-kind, never before made, but to my surprise, the PGA Tour is in deal discussions to license their own wine. As one of the most recognizable brands, it is no wonder that PGA Tour Wine, made by Costa Mesa, California-based Bermuda Triangle Ventures has jumped at the opportunity to take on this venture. With an organization who made a 2004 revenue of $819 million, the projected $1.5 million for the Tour at the five-year projection of $15 million doesn't seem like alot, but the way these bottles are flying off of the shelves, it could make a significant impact in the future.
Because of the success of these vinos, many other products and merchandise can be looked at to be taken over by the PGA. The following, which usually is a following of high profile businessman and celebrities, can generate a possible business/franchise takeover. Of course it is hard to judege exactly what the consumer will purchase, and usually takes years of startegey and planning to decide what new product the specific consumer will enjoy, I think the PGA Tour hit the nail on the head when they chose to pursue the wine industry. It seems to me, since I am close friends with a new PGA member and his wife, that that type of "crowd" tends to enjoy wine on a regular basis. Everytime we have ever been somewhere, or even an evening at their house, a nice glass of chardonnay or cabernet was always involved. And since there is a bar at every golf course in America, and ther are 17,800 golf courses, I guess they knew exactly what they were doing when they came out with this profitable and delicious product.

"On the brink: Approach of march 1, and the start of a new NFL calendar, adds urgency to reaching labor deal. by Dan Benjamin. Vol. 8 issue 38

Unlike Major League Baseball, the NBA and the NHL, the NFL has had a harmonious relationship with its players union for almost twenty years (the last work stoppage being the players' strike in 1987). The current collective bargaining agreement has two years left (the agreement expires March 1, 2008) however because if how the NFL accounts for player compensation managing the bones doled out to rookies and free agents will be much harder for teams this spring. This also causes teams problems come March 1st (the start if the new NFL calender year) where teams will only be able to prorate signing bonuses over four years rather than the normal five years. This also makes the popular option bonuses which could kick in at the earliest in year two of a contract, on be able to be prorated over three years if the CBA us not extended.

According to Denver Broncos owner Pat Bowlen, who is also one of the leagues negotiators, the salary cap could "die" if no CBA is reached by March 1 (according to the article the will be no cap for the 2007 season if an agreement can't be reached). There are three major issues that I see could prevent the CBA to be extended (1) howto divide the ever-increasing revenue between the players and owners (revenue now stands at $5.7 billion annually), (2) how revenue is shared amongst the high and low revenue producing teams, (3) The uncertainity of the labor agreement is also likely to nix the return of football to LA.

I believe it is in the best interest in the long haul to come to an agreement before March 1, 2006 (definitely before the agreement expires in 2008) even if both sides have to concede some of their desires. First, I believe that the past twenty-years of labor peace has helped make the NFL the most popular sport in the US (that and the fact that people can tailgate starting at 6 a.m. and be hammered before they walk into the stadium; football is the only "real" sport that mistakingly glorifies drunks as being passionate fans).

If the NFL doesn't resolve their labor issues by March 1st, as Tom condon head of IMG's football division said "there is potential for this to be a real mess" and i beleive it could cost them the entire 2008 season. however, I don't believe that the situation will get that far because the NFL players union has a reputation as being weak. Just look at what happened in 1987 when the players went on strike, the NFL got replacement players and after four or sex games (I believe the strike last six games but for some reason four has suddenly resonated with me)the players union folded quicker then a murder suspect under interrogation (practically conceding to every demand). There is talk however, about the players' union decertifying if an agreement is not reached which could give the union the upper hand in bargaining, initially.

I think the biggest hurdle in these negotiations is determining how to split the revenue between the teams and players. As a person who is not a huge management supporter, I believe the union should get their requested 65% cut, for making the owners as much money as they do. In addition, I don't believe that either side wants the 2007 season to be capless because the cap is part of the reason there is parity in the NFL and makes the league so intriguing (that and as mentioned before the non-stop drinking that goes on). I beleive that both sides of the equation benefit from this parity; the NFL benefits from the gate receipts which continues to grow because fans believe any given year "their team" can win the Super Bowl abd the players benefit because the talent us spread throughout the league as the of the salary cap forcing teams to be judicicial in how they spend their money. I'm not sure why the NFL seems to be so intent on bringing football back to Los Angeles, granted LA has a humongous fan base and their TV market size is astromical but the NFL seems to be doing just fine without LA. Besides, the NFL has been talking about having a team in LA ever since the Raiders moved back to Oakland but the city has balked at building a new stadium time and time again.

High-level suit rocks N.Y. Knicks by Corey Smith, v8, i 38, pg6

The suit brought against Isiah Thomas and the N.Y. Knicks at the moment has had little to no effect on the ticket sales of the team, but that does not mean it has not effected the team as a whole. Plus it has the possibility to greatly effect sales and all aspects of the team in the future and there is no way to tell when we could see these effects. For a team that is not having one of its best seasons this could not come at a worse time. Now there not only going to have to put up with unhappy fans, but they are going to have this matter in the hack of their minds at all times. Plus they may be questioned by the media and hounded to give their opinion on the matter and this could only cause tension between a team that is already having problems getting it together.

The plus side to this all is the way many of the media sources have decided to handle the issue in N.Y. Giving it little light in the media accept for the general facts of the case. Almost showing their support for the Knicks and Isiah Thomas. The media in N.Y. has said they only want to start truly covering the issue when all the facts are out there and they can report accurately on all aspects.

I feel that it is a sad issue to deal with. Although I am not a Knicks fan this is a tough situation for any team to go through and has the possiblity to not only divide the team on the court, but also in the offices. Isiah Thomas has always been a player and president of class and it is sad to see his name be put the ringer as it has. I can not say if the accusations are true but I truly hope they are false. But then again if they are I guess he is just getting what is coming to him.

“Teams, athletes help Flex-Power muscle up” by Joe Chen. Volume 8 Issue 38 p.9

The article is aimed at how a former financial expert could turn out to be an entrepreneur, and run a thriving career with a remarkable marketing strategy. As a five-year-old company, the Flex-Power Company, which sells topical sport cream, has already spread out its business overseas.

The CEO is Bejan Esmaili who started up with his own enterprise and came up with so many impressive concepts for promoting his product. For instance, he chose to sell to all sports leagues in the first place, such us professional sport teams and college athletic teams. Therefore, throughout the endorsement of those famous athletes and trainers, the company would be expanding its market since product has been used frequently. Furthermore, some of well-known professional athletes are interested in company potential marketing opportunity. However, they not only endorse the product, but they also became investors. That might be the best solution Flex-Power company to promote its product in an efficient way and build up the popularity of its products.

In general, sporting goods are supposed to be sold on the shelves as the other similar merchandize. Esmaili has been taking advice from someone else in order to avoid inappropriately approaching the major market. He has chosen websites of health clubs, gym chains, and specific sport goods stores as his channel to sell to consumers. There is no doubt that he got much help from those sport related teams and athletes. Indeed, he attempted to detail all processes of marketing strategy, as well as increasing the reputation of his product. Even though sports cream is not like sports clothes and equipment, which could make fortunes much quicker and easier. On the other hand, sports cream is probably a necessary supplement for athletes and all sports events participants. Consequently, I believe that sort of business would increase its revenue via efficient marketing strategy.

"Players set to cash in making appearances at the Super Bowl"Volume 8, Issue 38, Page 21, by Tera Bisceglia

I understand the importance of professional athletes booking public appearances during the Super Bowl (considering it is the most attended and watched annual sports event). However, I don’t agree with athletes’ receiving thousands of dollars for an hour here, an hour there when in fact they would otherwise attend the Super Bowl even if there wasn't a strong opportunity to cash in.

I can’t believe there has been a decrease in event booking during the Super Bowl this year compared to last year. NFL players must not like the blistery weather Detroit has to bare. I'm actually surprised that the weather would be so detrimental in the number of events that are booked during the Super Bowl. I guess it is too cold to golf and the only beaches found in Detroit are the frozen tundra of the sands of Lake Michigan.

I respect the Steelers choice not to schedule any paid appearances during Super Bowl Forty, although Bettis and others attended events with friends and family the week prior to kick off. I see the need for and believe that making appearances are great for public relations sake, but I also don't agree with professional athletes being paid to attend parties just to have people let them how great they are.

“She won Guatemala, but will she be a sports broadcasting Survivor?” by Kevin Anderson. Volume 8, Issue 38, Page 38.

I chose this article because since the first season I have always been a fan of the CBS television show “Survivor.” Danni Boatwright a former beauty queen and most recent million-dollar winner of “Survivor: Guatemala, has her sights set on sports announcing.

Danni is no stranger to the world of sports; prior to “Survivor,” she was the co-host of a sports talk show on the radio. Attempting to ride off her beauty queen looks and her exposure on “Survivor,” Danni would like nothing more than to continue her career in front of the camera, in the form of a TV sports announcer. The irony to this story is that even though several offers have come her way, the strict two-year contract that she signed with CBS to establish herself on “Survivor” is the one thing holding her back. Due to the contract, she must get CBS’s permission to entertain any offers while under their contract. Although several of her offers have been denied because of her CBS contract, CBS has expressed no interest in hiring her for CBS Sports. CBS’s spokeswoman stressed, “all hiring is very competitive and that if she does end up working at CBS, it’s a ‘process that would take sometime.’”

Competition is the one thing that Danni Boatwright has a lot of experience. She was the second runner-up for Miss Teen USA in 1992, first runner-up for Miss USA in 1996, and most recently the one million dollar winner on CBS’s “Survivor.” If competition is the only thing that stands between her and her dream of becoming a sports caster, Danni Boatwright should have a legitimate chance of once again obtaining her dream.

"Steerles' arrival is solid gold for licensed goods"- by Sarah G. Vol 8 Issue 38 Pg 1

The Pittsburgh Steelers have one of, if not the best, fans in the nation and this is proved by the amount of Steeler licensed products that are bought even when they do not make it to the playoffs. Well, licensees are very happy that the Pittsburgh Steelers made it to Super Bowl XL this year because now product sells are going to be skyrocketing. Not only will sales be boosting around and in the Pittsburgh area but also they will be boosted around the nation.
"Terrible Towel" sales have been booming since the AFC championship game and now licensees say the "if-win" sales are staggering. 300,000 commemorative towels are on order if the black and gold win the Super Bowl.
It is amazing the hype and fan-base that the Steelers have. Being a Pittsburgh Steelers fan, I totally agree that sales will be booming and accelerating more than ever. This is also because of the dynasty of the Steelers, getting that "one for the thumb." Steelers' fans are going to be going crazy buying merchandise and marketers are going to be ranking in the big bucks!

“Hot tickets: Mags’ Super Bowl parties draw ‘em in with skin” by Kelly Kaskan, v8, i 38, page 37

The super bowl serves as the ultimate social event for athletes, stars, and rich business men alike. Sports and sex appeal have gone hand-in-hand since the beginning of advertising. From the scantly clad cheerleaders on TV to the Sports Illustrated swim suit edition, showing skin is the ultimate advertising tool.
Maxim and playboy have been long known for their extravagant events. Sex appeal is the theme of the party, and these magazines fill a certain niche in the world of consumers. Each magazine is unique; Sports illustrated at the more “tasteful” end, Maxim in the middle, and Playboy being the most risqué.
It is no surprise that the rich are willing to pay big money for tickets to these events. Maxim and playboy are supplying the men of the world with their ultimate fantasy (celebrities, football, and half naked women!). To potential investors and VIP's, a ticket to an event like this could be what seals the deal. The money involved in these parties just further proves the long standing fact that “sex sells”.
All-in-all, I say good for them. Maxim, playboy, and sports illustrated are finding their way to jump on the money train that the super bowl provides.

" Players set to cash in making appearance at "Super Bowl" by Brad Potts, v8, i 38, page 21

This aricle was interesting to me because we are talking about paying people to show up at the Super Bowl get free accomidations for a week tickets to the game and other perks for simple going to the greatest event in the in the USA as far as sports go. I really think the money could have been used better. I know I didn't care at all that Tom Brady was at the coin toss or that Franco Harris walked out of a tunnel before the game. Who cares!! and to pay them 50 to 100 thousand dollars to do so is insane if you ask me. Instead why don't we give away free Super Bowl T-shirts (nice ones) at the gate and other things that will make nice keep sakes for thoses who paid the thousands of dollars it takes just to get in the gates. They could have also offer free parking to those who had a ticket insead of wasting over 1 million dollars on X NFL who know one really cared to see anyway. I think that as far as marketing the money could have been spent alot better. Maybe with another big name band in the parking lot for tail gating, or something else for the people who spent thousands of dollars to make the trip.

"Canada joins neighbor Detroit in festivities" by Dave Andrews V8, i38

As most of us where aware, the Super Bowl XL was held in the Motor City, Detroit. Marketing efforts were not only conducted in our native USA, but because of the proximity, now can be conducted in the adjacent Windsor, Canada. Twenty-four years ago, which was the last time Detroit held a Super Bowl, Canada marketing efforts weren’t even attempted. Windsor, a town of 200,000 people, is located just fifteen minutes away from downtown Detroit; a very drivable distance.

One of the big sponsors of the Super Bowl XL is Budweiser. For this year’s event, Budweiser Canada distributed 350,000 cases of beer packs with the Detroit XL logo to help promote the game. These were special mixed packs indeed, not only with the logo, but also a variety of both Budweiser and Budweiser Light. Mark Ditmars (senior brand manager of Budweiser Canada) credits this promotion with boosting sales revenue which helped improve their yearly sales. He claimed that if it weren’t for December’s sales, they’re profits would show a flat projection, instead of the rising one they received.

Included in the Budweiser Canada marketing efforts for Super Bowl XL, 650 people won a trip the day of the game from Toronto to Windsor. Of those, 65 people won tickets to the actual game, while the rest enjoying parties in Windsor. For those who won tickets to the game, NFL has arranged pre-approved vehicles to cross the border without being stopped. Other efforts include a Budweiser sponsored tailgate party on the Canadian side to an NFL International party in Windsor. Immediately before the game, NFL Canada sponsored the Canadian youth flag football championships, which the winner will go to the global flag football championship.

“Steelers’ arrival is solid gold for licensed goods” by Heather Hileman; Volume 8 Issue 38 Page 1

This article discusses how “Steelers’ Merchandise” will be the hot product after the super-bowl if they win. They feel that merchandise sells could hit an all time high if they Steelers’ win, topping the previous best when the Packers returned to title town after they beat the Patriots in Super Bowl XXXI in 1997. Well as we all know the Steelers did win the Super Bowl XL Championship and as far as I can say, yes, “Now, it’s just nuts.”
The NFL consumer product senior vice president said that, Pittsburgh has deep roots and a national following. He also says that the Steelers sell more licensed product within their seventy-five mile radius than, he believes, any other NFL team. He says it also plays nationally, as well. He also says that a lot of people grew up in the “Steel Curtain” days and are still around. Also, there are people who weren’t around in the “Steel Curtain” days, but a true Steelers fans because they were brought up on tradition. Both will show to be great for merchandise sells.
They also discuss the “Terrible Towels”, which sell around 250,000 in a normal year. However, after AFC championship victory 200,000 additional towels were made. Since, they have won the Super Bowl; another 300,000 commemorative towels are on order. The president of Team/Beans Forever Collectibles puts it in perfect words, “I don’t think this is a Pittsburgh thing. This will be national. This would eclipse our best hot market by 40-50% and would be the biggest championship product we ever had.”
I completely agree with this gentleman. Being a Pittsburgh Steelers fan myself, I was able to see thousands of people hoarding the stores after the game and the day after the win, just to buy the championship t-shirts and hats. It’s great to see that Pittsburgh Steelers fans are “true” fans and support their team through the upsetting times and the most recently “glorifying” times.

"Hot tickets: Mags’ Super Bowl parties draw ‘em in with skin" by Rita Basile, Volume 8, issue 38

Two issues ago an article ran in Sports Business Journal that stated that hospitality firms were having a hard time drawing clients to Detroit this year because of the location and weather. I guess the way to draw clients to this area is by sponsoring events that promote Playmates and swimsuits. Maxim and Playboy were giving tickets to advertisers and VIPS to attend the parties. It was stated in this article that these tickets were harder to get than game tickets.
Fake tickets were sold on eBay last year for the Maxim event for $2000. This year tickets for the Maxim and Playboy affair were on sale on eBay for $1,700 a piece. Security is so tight for the affairs that the magazines do not even divulge the location. These types of parties began in 2000 in Atlanta by Playboy. It is noted that these parties give “men in their 40’s and 50’s a guilt-free way to relive their wild and crazy single days.”
Sports Illustrated even began hyping their swimsuit edition at the Super Bowl three years ago. SI will use its swimsuit models to conjure up “tasteful sex appeal” said Jeff Price, chief marketing officer and president of SI Digital. The adult magazines are not afraid of labeling their parties with a sexy stamp, but SI says it is tasteful sex appeal.
Sex sells! This is a definite. Look at advertisements, TV shows, movies, music videos, and sometimes even cartoons that our children watch today. It’s no wonder that Maxim, Playboy and Sports Illustrated are selling it as part of the Super Bowl. If clients won’t come to Detroit because of the cold weather then the clients need to be warmed up with something to draw them to the cold city. I am not a person who favors this type of environment but who am I to say to Maxim, Playboy, and Sports Illustrated how to run their business. They know what sells and they know how to draw them in!