We focus on the application of business practices to operate a successful sports organization. For this special blog, topics emphasized are promotion in sport, sport marketing, the development of sport marketing plan, financing a sports organization, sport sponsorships, sales application to the sport industry will be emphasized.

Tuesday, February 21, 2006

“Nike first in line to pursue Bush” critique by Heather Hileman. Volume 8 Issue 39 page 4

Reggie Bush is not only the No. 1 NFL draft pick, but he is also going to be the center of a huge endorsement deal. Nike is in discussions with Bush about a major endorsement deal, after he flew on the corporate jet to Nike’s Beaverton, Oregon headquarters a couple of weeks ago. However, according to several sources he has yet to sign a shoe or apparel deal as of late last week. Also, he may still have meetings with Reebok, Adidas and performance apparel for Under Armour.
Top players entering the NBA draft in the last several years have negotiated shoes deals valued in the millions of dollars per year. NFL draft-picks have not hit those peaks, with the top players signing shoe deals in the range of $600,000 a year. Some sources speculate that Bush could be the first to break the $1 million-a-year mark.
Bush has, however, signed to appear at the Fantasy Football Spectacular, which is a memorabilia event to be held at the New Jersey Convention and Expo Center March 30th through April 1st. President of the Triumph Sports Inc, states that there hasn’t been an un-drafted NFL prospect to ever generate the interest that he gets from Bush. He says the only thing that compares is Peyton Manning in 1998. He adds that the prices for autographed items for Reggie are three to five time what Peyton Manning got when he came out in ’98, and he says that Reggie will sell twice the amount.
I guess it will ultimately depend on how they market Reggie Bush. If the advertisements are well rounded and fit his personality, then I think that he could very likely break the $1 million a-year mark. However, to tell you the truth, I didn’t know anything about this player until I read this article. So, I guess I am either not into football as much as I once thought or maybe they need to market him more.

“Nets restructure front office in advance of move” critique by Katie Bell, vol. 8, iss. 39, pg. 31



Before their planned move to Brooklyn in 2008, the New Jersey Nets have created a new chief marketing officer position for the franchise. Tom Glick has been hired as the new CMO. Glick spent the past two years as a vice president for the NBA’s marketing and team business development services department. With his move to the Nets, he will become the third league executive from that department who has recently entered team management ranks. Hired as president of the New Orleans/Oklahoma City Hornets was Paul Mott and also as chief marketing officer for the Atlanta Hawks was Lou Depaoli. Glick as the CMO for the Nets will report to Nets Sports and Entertainment President Brett Yorkmark.

I think with the Nets moving to Brooklyn, it is a good idea to be concerned with marketing. There could be positives and negatives brought about by the move, so in order to avoid or eliminate any negatives, marketing will be a crucial element. According to Yorkmark, with Tom Glick’s progressive business practices and his experience with the NBA, it will help continue the growth of ticket sales and sponsorships. I agree with this. His has NBA experience and knowledge and with this he can help make it a smooth move to Brooklyn for the New Jersey Nets.

Spikes in the new IMG logo point to the future, Volume 8, Issue 39, Page 33 by Tera Bisceglia



IMG, founded by Mark H. McCormack in the early 1960s, is the world’s premier sports and lifestyle management and marketing firm. After much deliberation and focus on company branding and hopes for a new vision for the future, IMG has decided to unveil a new logo to employees worldwide.
FAME, a brand identity firm, was hired by IMG to create the new logo that features the company name in spiky, new blue letters. According to IMG spokesperson Marcy Simon, “the company’s new logo reflects the success of IMG today and the opportunities of the future in three major business areas, “sports,” “entertainment” and “media.”
FAME created the spiky-lettered logo that replaced the old, dark-blue IMG name with dark-blue diamond shapes after conducting interviews with numerous IMG top executives worldwide. IMG states that the new logo “is not a change for change sake, but the result of thoughtful consideration of who we are as a company and what we represent.”
Having background in graphic design and communications media, I am aware of the importance of company branding. All companies should effectively distinguish company identity. This not only helps consumers or the general public recognize a companies identity, but it also provides worldwide corporations like IMG with a general overall identity in turn helping its employees on many levels to relate to one another. A logo can also provide workers with a sense of the mission providing them with greater chances to attain executive goals and objectives

“Program seeks to authenticate Gordon goods” by Kevin Anderson. Volume 8, Issue 39, Page 4.

The name Jeff Gordon has almost become synonymous with NASCAR. Jeff Gordon who can be easily recognized driving the #24 Du Pont Chevrolet on most Sundays of the year. He is one of the biggest reasons for the refueled interest in NASCAR for the last decade. I can remember watching Jeff Gordon driving the rainbow colored Chevrolet with his “Rainbow Warriors” manning the pits. Gordon was young, charismatic, and a phenomenal driver. His excitement toward racing captured the attention of many people who would not normally be associated with NASCAR, and a new fan base was born. He was somewhat of a leader in the rebirth of NASCAR and he can once again be seen at the forefront, this time in the area of merchandise authenticity.

Jeff Gordon is scheduled to unveil a new hologram program to authenticate his signature and guarantee authenticity of Gordon goods and merchandise. The hope is that by numbering and tagging merchandise that bears Gordon’s signature they will be able to keep better track of signed materials and thereby guarantee authenticity. These items will then be registered for sell on www.jeffgordon.com so collectors and fans can buy, sell, or trade original Jeff Gordon memorabilia without the fear of counterfeiting.

The FBI reported that more than $100 million of forged memorabilia is sold and purchased each year. This new program is an attempt to put an end to forgery rings and give collectors a piece of mind when supporting their sporting favorites. Other NASCAR drivers have not gone to implementing holograms on their signed products yet, but after this push in the right direction by Jeff Gordon other drivers might pull-in and draft. This could be the start of a new trend in merchandise authentication for athletes in every sporting venue.

“Nike first in line to pursue Bush” critique by Joe Chen, v8, i39, pg4

As a potential football player, Reggie Bush is going to be No.1 draft pick in NFL. Interestingly, he probably will become the first NFL player who signs shoe deals and breaks the $1million a year ever over the history. Top player like Lebron James in NBA draft at 2003, before he got started with his professional career, also was holding the record which is 90 million with contracts with Nike for seven years. As a result, many other well known sponsors are willing to make a deal with Bush as well as contribute to his other marketing opportunities.
On the one hand, excellent players have shown their value that they would like to prove. Also, during the tournaments before they were picked by professional teams, they had chance to make effort to perform well for their future compensation when they attempt to play in the professional league. On the other hand, Tom Shine, Reebok’s senior vice president, notes that the value of shoe deals are not only based on the player’s ability but also the team on which he will play. Most importantly, not depends on how many endorsements that players can do, but relates to the entire ranking of the team during the season. It will determine that whether players can have much exposure time on television or not.
Personally, although Reggie Bush has pretty high evaluation of his first season to NFL, so many shoe deals awaits him as much as sports agent would like to represent him. The first thing he needs to do is remain in good condition to face the following challenges. The sponsors are seeking a best player who could endorse their products or make advertisements which might impact or influence most of their audience. Furthermore, sponsors positively would expect player can play much longer as they can, so that they will increase the revenue of their own products and enhance the reputation for the best player in the professional sports. There is no doubt that either Nike or Rebooks try to sign Bush because he could be the most potential player in NFL since 1998, when Peyton Manning came out. Similar to NBA, since Michael Jordan retired, sponsors desired to create a new super star on this field in order to be more attractive of the event, they wanted spectators to pay more attention out of the field and have a target player represent this sport.

No surrender from North Dakota in NCAA mascot controversy", by Liz Mullen. Volume 8, issue 40, page 14


"No surrender from North Dakota in NCAA mascot controversy", critique by Jenn Duhnke; originally by Liz Mullen. Volume 8, issue 40, page 14

This article talks about the heavy topic of some NCAA school's nicknames and logo's. It has been six months since the NCAA put 18 schools on a list that used "hostile or abusive" nicknames. The University of North Dakota is still representing and displaying its nickname: The Fighting Sioux. The NCAA had instituted a policy to eliminate American Indian nicknames and mascots that they felt were inappropriate. Among this list of 18, 3 schools have successfully appealed. Two others have been removed from the list after agreeing to make some modifications that were approved by the NCAA. There are 3 schools that are still resisting to comply and everyone should know that IUP is one of them.

The penalty the NCAA is putting into place for schools that will not comply is that those schools will not be allowed to host any post-season championships in any sport. This threatened the Univ. of North Dakota's plans of hosting a D-I regional hockey tournament, however, the NCAA has agreed to lift the ban until the UND's appeal is decided in April. I have also heard that IUP's appeal will be decided then as well (April 27th). This could pose a pretty big problem for the schools that refuse to comply. There is lots of money potenial that each school could lose from not being able to host post-season games. Is it right that the NCAA to enforce such a policy as this? UND's president, Charles Kupchella, does not agree with any of this. "We have a hard time understanding why it's all right for Florida State to come into town with a white guy dressed up as an Indian, riding a horse, leading fans in a tomahawk chop, and we have to do away with a classic depiction of an Indian by an American Indian artist...we just don't get it", stated Kupchella.

I do feel that the NCAA has good intentions about this policy, however, at the same time, I feel like it is another way for the NCAA to enforce their power(s). It should be a dispute that is between the tribe and the school seperately. I do not feel the NCAA should be involved in this matter at all. All they are doing is creating controversy that may have never been there in the first place.

MLB expects less drama in next labor deal by Dave Andrews, v8, i39

Major League Baseball is expected to pursue far less when reaching economic reforms in the next labor deal as compared to the prior negotiations with the MLB Players Association. While MLB gained extensive increases by revenue sharing and luxury tax in their 2002 labor deal, Bud Selig (MLB Commissioner) claims to not as for as much this time around. Revenue sharing and luxury taxes help keep the parity in the league divided as equal as possible. Throughout this past labor deal, only revisions to the drug-testing policy have been dramatically revised.

MLB has crowned six different world champions in the last six years; compare this to any other of the major leagues and you won’t find this parity. MLB was in economic trouble in the past, while today, they’re on an unprecedented fiscal rocket ride. Industry revenue is approaching $5 billion a year while attendance in 2006 will surpass 77 million maybe even 78 million, which would top last year’s all-time record of 74.9 million by about 3 percent.

It might be impossible for teams such as the New York Yankees to stop spending millions for prime players, while other times such as Pittsburgh, Tampa Bay and Kansas City to win a pennant, but increasing revenue sharing might help solve more of these issues. Another important issue is keeping the fan base on the field and not outside the stadium. When fans are concerned with off-the-field issues, they will not watch the game from the stadium; rather watch the game from home or at a local establishment.

Nike First in Line to Pursue Bush by Corey Smith. v8, i9, pg4



The one thing that stuck out to me the most in this article is the difference in contract deals from top shoe companies when comparing football to basketball players. The top football players will make 600,000 a year from a good contract while baketball players like Lebron James sign a 7 year deal for 90 million dollars. But the market must be considered and the football market for clothing seems like it would be less profitable. Especially if they are a losing team and not getting much air time. But basketball teams have many many more games and have the chance for much more air time.

Although in the end I think it is a great deal for a player. They have to basically put their name and face behind a product line and they can recieve a nice pay check. If my biggest worry was whether my next job was going to pay 600,000 or 700,000 dollars I would basically have no worries at all. Although it seems as though Reggie Bush is taking his time and weighing his options when considering his marketability and what will make him the happiest. Which shows that he is very grown up for such a young adult in such a situation. But no matter what company he is contracted with I am sure the pay will be well worth the effort.

"MLB expects less drama in next labor deal" by Dan Benjamin, Vol. 8 Issue 39 pg. 3



According to the article Major League Baseball will pursue far less economic reforms when the CBA expires as compared to past negotations. The reason being is that Major League Baseball has gained two major coups since 2002 when the last CBA was negotiated. The first major win for Major League Baseball was when they were able to increase revenue sharing and the luxury tax provision during the 2002 CBA negotations (the rationale was that these provisions were needed to correct the perceived problem with competitive balance). The other "notch-in-the-belt" came just this past season when they were able to negotiate two dramatic revisions to the drug-testing program under the threat of congressional intervention. In addition, Major League Baseball is going through an unprecedented fiscal upswing (according to the article, revenue is approaching $5 billion a year). Another major factor is that Commisioner Bud Selig projects attendance to reach 77-78 million which would surpass last year's record setting numbers of 74.9 million by about 3%.

First, it is unfortunate that Congress had to stick their nose in baseball's business since Congress has no business being involved in sports especially when you consider they "should" have more important issues to deal with (it seems that a politician always has to get involved with sports issues even though they don't have a "clue" what they are talking about and it is very irritating). Regressing from my rant, Congress's transgressions did cause unprecedented changes in Major League Baseball Steroid policy which I believe will only help baseball and its players. In addition, I take umbrage to Selig saying that "parity right now is very good" because six different teams (the article pointed out that ever other major league sport has had repeat champions during this time)have won the World Series. First Major League Baseball aloows the fewest teams in the play-offs (4 per league)and second every year the Yankess, Boston, Atlanta and a combination of the Chicago White Sox, Houston Astros, LA Dodgers, Los Angeles Angels of Anaheim, Seattle Mariners, St. Louis Cardinals, Minnesota Twins, San Diego Padres, San Francisco Giants,Florida Marlins and Chicago Cubs are in the mix; which leaves 16 teams not even coming close to reaching post-season play.

I was suprised to learn that Major League Baseball set an attendance record last season since baseball is the most boring professional sport and the fact that Major League Baseball was reeling from steroid testimony or non-testimony from Mark McGwire, Sammy Sosa, Jason Giambi, Barry Bonds in front of Congress. I guess fans believe that since things were revealed and Major League Baseball has decided to take a pretty hard stand on the steroids situation, the game would be more competitvely balanced. I do agree with Selig that labor peace is the reason that Major League Baseball is thriving because really baseball only lost its luster when it shut down for a substantial part of the 1994 season.