Loss of games due to realignment costly

February, 20, 2012
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Conference realignment is coming along with short-term costs in the 2012 college football schedule.

Before it left the Big East, West Virginia canceled its game against non-conference opponent Florida State and paid a $500,000 cancellation fee. But Elliott Finebloom, an assistant athletic director at FSU, said the loss of the home game will cost the Seminoles far more than the program received in the cancellation fee.

“We’ll probably lose $2.5 million in ticket sales,” he said, and that’s not including a drop in season ticket sales resulting from the cancellation. It could cost FSU another $1 million to bring an opponent into town. Filling the WVU slot with an away game is not going to happen, said Finebloom.

“Seven home games is something every business in town counts on, from hotels to restaurants,” he said. “People think it’s about the athletic department wanting to make more money, but we have a responsibility to area businesses who count on seven home games.”

Texas A&M, which moves from the Big 12 to the SEC this year, has given up home games and has only five scheduled at Kyle Field for 2012. The school has had seven home games for the past six years.

Aggies Fan SECPatrick Green/Icon SMITexas A&M may only have five home games this season as a result of its move to the SEC.
For the 2010 season, Texas A&M’s average revenue from ticket sales, concessions, novelties, program sales and parking was $4.2 million per game, according to NCAA disclosures. With two fewer home games this year, the Aggies could be looking at an $8 million-plus loss.

Alan Cannon, an associate athletic director at Texas A&M, said the schedule still isn’t set in stone, though.

“It has been the desire of [athletic director] Bill Byrne to have six or seven home games, if at all possible,” he said. “The location of the Arkansas game is still not determined.”

Texas A&M and Arkansas agreed to play a neutral site game at Cowboys Stadium for 10 years. But with the Aggies’ move to the SEC, both sides are discussing whether the game will remain there.

There are short-term winners in the conference realignment story.

Smaller programs could see increased profits in 2012 as major programs are forced to pay guarantees to secure home games or travel to locales they normally wouldn’t consider.

One such school is Louisiana Tech. Although considered a home game, Louisiana Tech will play Texas A&M in Shreveport’s Independence Stadium, which gives Louisiana Tech the ability to bank big profits for the game and gain exposure.

“[Playing in Shreveport] helps us expand our market,” said Patrick Walsh, an associate director in the school’s athletic department. “Our goal is to be the premiere flagship university in Northern Louisiana. Playing occasional games in Shreveport and growing our fan base there is critical to our success.”

For a regular season home game against a conference opponent, Louisiana Tech makes approximately $30,000 on single game ticket sales. The club seating area in Independence Stadium alone gives Louisiana Tech the chance to make more than twice that amount. A sellout would allow the school to bank more than $1.1 million in profit.

“We played Miami there in 2003 and had over 43,000 [people]. We had over 40,000 when A&M came to Shreveport in 1999,” said Walsh.

Schools in the Big East are unclear just how much WVU’s departure may cost them as they scramble to fill schedules. Big East schools also have to fill the TCU game, which came open before the school even joined the conference.

“I wish there was an easy strategy we could all employ to make it work,” said Bob Arkeilpane, Cincinnati’s deputy athletics director. “The truth is, it’s extremely difficult. You want to come up with a balanced schedule that will work financially and make the coach happy, make the fans happy, and the Big East happy.”

The solution? Arkeilpane thinks perhaps the conference will get involved, though not necessarily by giving schools some of the money it is receiving from the WVU departure payout.

“I’ve heard absolutely nothing like that, but it makes sense you would hear a lot of speculation,” he said.

Arkeilpane also worries about the bowl implications if Cincinnati has to play two FCS schools in order to fill out its schedule. If a team plays two FCS opponents, it must have seven wins -- instead of six -- to be bowl eligible. Cincinnati is already scheduled to open the season at home against FCS opponent Delaware State.

The Big East could petition the NCAA for an exemption to the FCS rule. Big East officials declined to comment on that possibility. Such an exemption has been sought before: In 2010, Arizona State asked for an exemption after San Jose State backed out of a game and the Sun Devils scheduled Portland State. The NCAA denied the request.

In the end, however, Arkeilpane is confident the conference will work things out, so for now, the Bearcats wait.

“This is a Big East issue and all the member institutions will have to work together to figure out what the solution is,” said Arkeilpane.

Lin's ascent not yet assisting MSG viewers

February, 16, 2012
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Will New York Knicks guard Jeremy Lin be able to add “facilitator” to his growing list of credentials?

A theory since Lin’s emergence is that growing discontent from Time Warner Cable customers will force the cable provider and the Madison Square Garden Network to reach a deal in their bitter dispute that has kept fans in much of the New York region from seeing the Knicks on MSG since Jan. 1.

But it likely will come as no surprise to the 4 million or so viewers affected that there’s a debate about whether Lin’s success will benefit one side over the other and thus help force a deal.

“I would say it actually put a lot of pressure back on MSG,” Eric Mangan of Time Warner Cable said on Mike Francesa’s WFAN radio show Wednesday in New York.

Not so fast, said Lee Berke, a media consultant who worked at MSG in the 1990s.

“The thing about [regional sports networks] is that the leverage you have is hometown fans,” he said. “They are mad about their teams. At the start of the season, no one was excited about what the Knicks were doing. Now, it’s a national phenomenon. Couple that with the fact the [New York] Rangers are doing well, and now the Knicks are on fire -- that’s substantial leverage for MSG.”

A spokesman for MSG said the two parties met this week, but he declined to comment on meeting details.

The issue is simple: MSG is seeking an increase in carrier fees -- the amount of money Time Warner will pay it for the rights to show network broadcasts. Time Warner thinks the increase being sought is too high.

Both sides have declined to discuss the rate that was being paid by Time Warner prior to the last contract’s end. Media research company SNL Kagan has 2012 rates for MSG Network and MSG Plus at $2.63 and $2.28, per cable subscriber.


But Berke said those rates are blended, meaning they include inner-market (within 75 miles) and the cheaper outer-market rates. Because Time Warner is inner-market and accounts for almost 30 percent of MSG’s market, he said MSG could be asking for a rate at or above the combined blended rate of $4.91.

That would put MSG higher than any other regional sports network, according to SNL Kagan. The most expensive regional sports network is Comcast SportsNet Washington at $4.02 per subscriber. YES Network, which at $2 to $3 billion is the highest-valued regional sports network, is $2.99. By comparison, ESPN was $4.69 in 2011 -- SNL Kagan expects it to rise to $5.06 this year.

When MSG and MSG Plus are separated, each falls closer to the average for regional sports networks. But having the channels offered up to carriers individually is not going to happen.

“MSG will force the package deal by putting certain games on one and other games on the other channel. They definitely mix them up so you need both channels,” said Berke.

Berke attributes MSG’s longevity -- it’s the oldest regional sports network -- and its location in New York as reasons for the high rates.

MSG’s Mike Bair said the network is asking Time Warner to pay market value. He told Francesa the deal MSG is offering Time Warner is comparable to what other carriers pay MSG, and not higher.

Time Warner has said publicly it would agree to pay a 6.5 percent increase for the MSG channels.

But for now – and despite Lin’s heroics – no deal seems in sight. Berke thinks there’s reason to be optimistic.

“When hometown fans don’t get their hometown sports, politicians get involved,” he said. “When it comes to sports programming, people will change their service based on availability. I think you’re going to start seeing people switching and politicians getting involved. In a relatively brief amount of time, you’re going to see them get closer to a deal.”

It may take time to cash in on the Linsanity

February, 12, 2012
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Linsanity is sweeping the nation, but is the Jeremy Lin phenomenon -- albeit producing the highest point total for a player in his first four career starts since the NBA-ABA merger in 1976-77 -- enough to build a marketing platform?

Maybe a local one right now, but it might take a bit longer for him to become a national player.

“It would not be prudent for a big company to all of the sudden center him in a big national campaign unless someone wanted to do a quick one-off spot and capitalize on him right now,” said Doug Shabelman, president of Burns Entertainment & Sports Marketing.

“What’s going to help him and the team in a considerable way is how long he can sustain a moderate to healthy pace, and can he get his team to win? If he continues to score 20 to 30 points but they lose, the buzz will start to wane,” said Shabelman.

Not surprisingly, Lin’s best opportunities might come from the Asian-American market. Lin is only the fourth player of Asian-American descent in the NBA, yet Asians comprise approximately 4.5 percent of the U.S. population, according to the last census. Fourteen percent of the country's Asian population resides in the New York metropolitan area, making Lin’s emergence with the Knicks serendipitous.

“Lin is truly the first American-born Chinese star athlete,” said Timothy Ng, general manager of Admerasia, an advertising agency focusing on marketing to Asian-Americans. “Whereas Yao Ming was born and imported from China, Lin is a second-generation Asian-American. This makes Lin marketable to both new Asian immigrants and resident Asian-Americans.”

Opportunities in that market are also now open for the Knicks.

“The Knicks are definitely lucky they were sitting on this hidden gem,” Ng said.

So, too, is the NBA.

Lin’s jersey has been the league’s top seller since Feb. 4, and the Knicks were the top-selling team last week, with five of the top 10 items sold by the league being Knicks jerseys. And this week, NBAStore.com will begin selling Lin youth jerseys, additional T-shirt styles, and a woman’s tee. The NBA Store on Fifth Avenue in New York is already selling replica and authentic jerseys and will add name and number tees and additional styles.

The NBA’s Asian TV partners have added extra Knicks games to their broadcast schedule this month. Highlights showing Lin make up four of the top 10 videos on the NBA section of Sina.com, a media website that serves Chinese communities worldwide.

One place some folks can’t see Lin? The greater New York area, where a bitter cable dispute between Time Warner Cable and Madison Square Garden network have kept about 1.5 million viewers from seeing Knicks games. ESPN.com’s Ian Begley writes that some people have speculated Lin’s recent run (the Knicks are 5-0 since he started to get major minutes) will force the sides to reach a deal.

It's Tiger, Phil, the greats and no one else

February, 9, 2012
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When Tiger Woods and Phil Mickelson step up to the tee at the AT&T Pebble Beach National Pro-Am on Thursday, they do so as last year’s highest-earning active U.S. athletes. Forget that they ranked 135th and 12th in PGA Tour money earned; their fortunes came from tens of millions of dollars in endorsement deals.

Luke Donald, the first golfer to top both the PGA Tour and European PGA money lists in 2011, out-earned Woods and Mickelson on the course with $13.1 million in winnings compared to Woods’ $2.1 million and Mickelson’s $4 million. But Donald banked $29.5 million less than Mickelson and $53.5 million less than Woods in endorsements, according to Golf Digest.

In fact, Arnold Palmer, Jack Nicklaus and Greg Norman, whose income from golf course design, apparel and other businesses earned them third, fourth and fifth on Golf Digest’s top earners list for 2011, have more in common with Woods and Mickelson than the contemporary players they hit the course with all year.

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Woods
AP Photo/Kamran JebreiliDown years or not on the course, Tiger Woods still earns more than any other golfer.
Experts in marketing the sport name a number of different players who might be able to bridge the gap between Woods, Mickelson and the rest: Donald, Rory McIlroy and Rickie Fowler, to name a few.

But heir apparents have been talked about for years.

“Given the depth and breadth of talent on the tour now, I’m not sure these players will have the ability to reach those levels or sustain it long term,” said Holly Geoghegan, president of Golf Marketing Services, a publication relations firm.

Jordan Zimmerman, founder of Zimmerman Advertising, disagrees. “Who would have thought Tiger would catch Jack Nicklaus?”

Zimmerman believes endorsement success is all in the branding. Golfers, perhaps more so than other athletes, need style, he said. That style helps create a golfer’s brand.

“Too many times agents don’t look at their players as brands and don’t position them as brands,” he said. “If I were an agent, I would look at how does he dress, how does he do his hair. Those things are so very important in terms of likeability in the market.”

Geoghegan agrees appearance, in terms of differentiating personalities on the course, is important. One of the best examples she’s seen lately is Rickie Fowler, particularly in relation to his partnership with PUMA and its recently acquired Cobra Golf brand.

“Rickie Fowler is the cover wrap of “Golf Week” magazine this week. That’s pretty impressive,” said Geoghegan.

Asked how much of that can be attributed to his agent, Geoghegan relates a story about Fowler parting from Titleist for Cobra Golf, whose new campaign features his signature color -- orange -- promoting its new AMP series with the tagline “100% Pure. Fresh. Juicy. Sweet Technology.”

“Would [Titleist] have the corporate culture to do what PUMA and Cobra have done with Rickie? No. Whether it’s his agent finding the right match versus maybe chasing the dollars -- that’s a question mark. From my perspective, how you brand the right personality with the right product -- they created a home run,” said Geoghegan.
PUMA has done with Fowler exactly what Zimmerman suggests agents representing golfers need to be doing.

“Start with styling to differentiate them on the course. Next, position the player as a brand. If we’re talking Rory McIlroy, build his likeability. He can be the boy-next-door brand. The I-want-my-son-to-be-him brand. That gives you an unbelievable opportunity with the mothers and dads and will also bring kids into golf earlier.”

Although Geoghegan and Zimmerman agree golf lends itself to personal brands, Geoghegan is less inclined to say a young player like Fowler could challenge the likes of Woods and Mickelson one day.

“I think Tiger is a phenomenon. Whether we’re going to see another Tiger -- never say never,” she said. “But there were so many stories last year week after week. We’re already seeing it this year with Kyle Stanley, who had a collapse at Torrey Pines and then came back and won in Phoenix. It’s an incredible comeback.

“Were we talking about Kyle Stanley last year? Here’s a great kid with a great college career. There’s so much depth on tour now, that’s what’s going to be interesting to watch.”

Some off-the-field Super Bowl winners

February, 6, 2012
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Eli Manning may have won the MVP and given himself a boost in net worth, but Victor Cruz ruled social media, just as he did during the NFC Championship Game. According to Twitter’s official Super Bowl tracker, Cruz led Manning in Twitter mentions most of the game, although Manning took over once the game ended.

So will that end up being simple trivia for Cruz, or could the buzz lead to more endorsements?

“If you’re making clutch catches game in and game out through the playoffs and the end of the year, you’re going to become marketable and have that recognition factor right away,” said Doug Shabelman, president of Burns Entertainment & Sports Marketing Inc.

Shabelman isn’t aware of any national endorsements for Cruz going into this season, but thinks he could get some now: “Can he? Yes. Is he going to be a big six-figure or seven-figure endorser? No.”

Record tweets: The game prompted a record number of tweets per second for a sporting event, with 12,233. Madonna’s halftime performance peaked at 10,245. The prior record: 9,420 tweets per second, when the Denver Broncos defeated the Pittsburgh Steelers in overtime during the AFC wild-card game.

#hashtagseverywhere: Dawn Zencka, vice president at iProspect, a global digital performance agency, noted the prevalence of Twitter hashtags in this year’s commercials. She was especially impressed that Coca-Cola's polar bear ads reacted to the game in real-time and with the ability of fans to interact with the polar bears via Coca-Cola’s Twitter account.

“[It was] great in terms of a fan watching and tweeting. It was complete interaction and getting characters involved in the game in a way I haven’t seen any other advertiser do,” she said. “It [made] Coca-Cola a part of the conversation instead of just being talked about.”

“Heads” for free pizza: Papa John’s will dish out millions of free pizzas and soda bottles after website members collectively -- and correctly -- guessed the pregame coin flip. Website members will receive an email Monday with information about how to claim a free one-topping large pizza and 2-liter Pepsi MAX.

Sound expensive for the company, which is an official partner of the NFL? It might be worth the cost.

“There are people who will become loyal consumers of that product, which will offset the cost,” said Michael Lysko, director of Southern Methodist University’s sports management program.

“When you consider the money they’re spending on their NFL partnership, they’ve got to do something to break free of the pack,” he said. “They have to do something like this to activate their partnership. Otherwise, it doesn’t make sense to be an official partner, they could just buy the airtime.”

Doritos, consumer ads big winners: For the sixth year, Doritos aired consumer-created commercials, and they scored well again with viewers. Two Doritos commercials -- “Sling Baby” and “Man’s Best Friend” -- lead the USA TODAY Ad Meter.

If the commercials retain their current positions through Tuesday evening, the creator of the first-place ad will receive $1 million, with the creator of the second-place ad earning $600,000. Third place pays $400,000.

“Other advertisers are starting to get into it, like Chevy with their Camaro ad this year,” said Zencka of the consumer-produced ads. “I wouldn’t be surprised to see more next year, especially advertisers like Budweiser that have so many spots in the game.”

Pregame sizzle, fizzles: Two ads released prior to the Super Bowl to great fanfare fell flat during the game: Honda’s "Ferris Bueller"-inspired commercial and Acura’s Seinfeld commercial rank 11th and 14th in USA TODAY’s Ad Meter.

Alex Rowland, chief revenue officer and co-founder of Alphabird, an audience development viral video company that worked on this year’s Seinfeld and "Ferris Bueller"-themed ads, said the Ad Meter isn’t the only way to determine a winner, however.

“At the end of the day, brands are not buying first-place ratings, they’re buying impressions,” he said. Acura’s Seinfeld ad has more than 15 million views on YouTube, while Honda’s ad has more than 12 million.

The Doritos “Sling Baby” ad? Just a bit more than 300,000 views on YouTube since being uploaded by Doritos as part of its contest a month ago.

Which Super Bowl team wins social media?

February, 2, 2012
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It’s just a few days before the Super Bowl and a good time to check your preparation. What better way than with a quick pop quiz about the teams' presence in the all-important digital space?

     1. Which New England Patriot was tweeted about most leading up to the playoffs?

Sigh. We’re one question in and you’ve already messed up your chances for a perfect score. Hard to believe, we know, but coach Bill Belichick took honors with more than 3 million tweets compared to Tom Brady’s nearly 700,000, according to Banyan Branch, a social media agency. (Giants coach Tom Coughlin didn’t quite reach 30,000 tweets.)

Henry Schafer of the Q Scores Company, which measures the national awareness and appeal of various personalities, isn’t surprised by the public response to Belichick. Compared to Coughlin, Brady and Eli Manning, Schafer says, “[Belichick] creates more emotion. He’s the devious mastermind with all kinds of tricks up his sleeve.”

Schafer says 18 percent of those familiar with Belichick say he’s one of their favorite sports personalities. His 18 Q Score eclipses that of Coughlin and is comparable to Manning’s.

“Coming into the Super Bowl, he’s probably being perceived as the more creative coach of the two,” Schafer says. “With the injuries, especially to the tight end, I’m guessing a lot of it has to do with the strategy he might employ and how he might surprise everyone Sunday.”

     2. Which team had more buzz on Twitter?

Easy stuff. New York Giants-related tweets dwarfed the Patriots’, garnering 63 percent of the tweets between the two teams. That margin occurred even though the number of tweets mentioning Brady was twice that of Manning.

“The Giants have more of a team brand versus an individual player brand,” says Blake Cahill, president of Banyan Branch.

     3. Which had the more popular team website in December as it made its run to the playoffs?

Yeah, yeah -- a poorly worded question for a quiz. But if you missed it, too bad: The Patriots grabbed about 70,000 more unique visitors than the Giants, according to Nielsen and NM Incite. But those of you who guessed the Giants can live with the dreaded moral victory: Giants fans spent an average of 10 minutes, 21 seconds per person on their site compared to the Patriots’ 5 minute, 54 seconds mark. And Giants fans viewed an average of 17 pages, while Patriots fans viewed just nine, creating a 3.5 million gap in total page views.

     4. Which website drew a wealthier visitor?

Visitors to the Patriots’ website in January were three times more likely to make $150,000 or more annually than U.S. visitors to other websites, according to Nielsen.

     5. Finally, which team website drew more women visitors?

We’ll call it the Brady factor, because a greater percentage of women among visitors clicked on the Patriots’ site: 67 percent of visitors to the Giants’ site were male, compared to 57 percent on the Patriots’ site, according to Nielsen.

Super Bowl ad experience goes past game

February, 1, 2012
Feb 1
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The numbers, crunched by consultant Kantar Media, are almost mind-boggling:

•  Over the past 10 years, Super Bowl advertisers have spent $1.7 billion on TV ads.

•  Advertisers spent $228 million on the game last year.

•  That sum, about what is expected to be spent this year, will account for about 25 percent of the $1 billion NBC paid for rights to air the game.

How advertising has become so integral to the Super Bowl is about more than the 110 million or so people who watch the game. A study recently completed by BIGinsight for the Retail Advertising and Marketing Association found that 25 percent of viewers watch solely for the commercials. Ann Bastianelli, senior lecturer of marketing at Indiana University’s Kelley School of Business, says that number is even higher when considering that 58 percent of women tune in solely for the commercials.

The game provides an unparalleled opportunity for advertisers, says Bastianelli, when considering that women’s opinions account for upward of 70 percent of “important family purchasing decisions.”

The formula certainly seems to be working for Volkswagen. Sharethrough, a social video advertising platform and distribution network, tracked commercials that aired during last year’s Super Bowl through the end of 2011 and identified which categories, and which individual commercials, were shared the most often through social media.

The hands-down winner of the social media game was VW’s “The Force,” which featured a young boy dressed up like Darth Vader. Sharethrough calculated the ad had 45.2 million total views and 4.6 million engagements -- the number of times the commercial was mentioned on social media sites. “The Force” dwarfed others in terms of total views and engagements. Chrysler’s “Imported from Detroit,” featuring Eminem, came in second at 13.4 million total views, but had only 357,735 total engagements.

“We were able to get about $100 million of earned media around that one simple television execution,” said VW’s general manager of brand marketing, Brian Thomas. He sees the nearly 50 million YouTube views to date as extra advertising that didn’t cost the company a dime.

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Super Bowl Ad
AP PhotoThis scene, from an advertisement provided by the Coca-Cola Co. and Wieden + Kennedy, shows the polar bear tumbling through the air trying to catch his bottle of Coca-Cola before it falls to the ground. The "Catch" ad will be aired during Super Bowl XLVI.
This year’s VW ad, “The Bark Side,” features dogs joining in the chorus of a familiar theme song, building upon last year’s ad. The teaser already has more than 10 million views, more than any commercial from last year’s Super Bowl, with the exclusion of “The Force” and Chrysler’s “Imported from Detroit.”

Honda released a teaser for its Ferris Bueller-style commercial on Friday without revealing who was behind the ad campaign and received more than 4 million page views through Monday. Honda released an extended version of the commercial on Monday and hit more than 4.4 million page views by Tuesday night.

“Ferris Bueller is beyond the typical commercial we’re used to seeing,” says Sharethrough's director of marketing, Chris Schreiber. “They’re putting out trailers and building interest by bread-crumbing the content.”

Some experts question whether an advertisement’s success should be gauged based on social media impressions. This year’s Brand Keys Super Bowl Engagement Survey, which measures to what degree brand values are affected by advertising during the Super Bowl, found Volkswagen and Honda to be unaffected, not coming out as a winner or a loser in the Super Bowl advertising game. That’s tough news when commercials cost an average of $3.5 million for 30 seconds.

“What we’re doing is pointing out the massive difference between advertising entertainment and brand engagement,” says Robert Passikoff, founder of Brand Keys.

Passikoff says he worries that the trend toward entertainment has resulted in “cute” commercials, but consumers don’t necessarily remember what company produced the commercial.

“More entertaining will get more attention, but virtually every single advertiser in the Super Bowl is already known, so awareness is not the objective,” he says.

Passikoff isn’t sold on teasing commercials, either.

“If you were worried you weren’t getting enough attention in the Super Bowl, maybe there’s something wrong with your advertising,” he says.

Thomas disagrees.

“[The Super Bowl] has become a multiweek public relations and social media campaign with the broadcast as a centerpiece,” he says. “Super Bowl [advertising] is about conversation -- conversation about your brand.”

Companies have more opportunities than ever to buy Super Bowl time. According to Kantar Media, the number of advertisements during the game has jumped from 74 in 2002 to 96 in 2011. Nearly 10 minutes of commercials have been added to the game, pumping tens of millions more dollars into the networks each year, which continue to pay more and more with each new NFL broadcast contract.

Dunks + Clippers wins = money for Griffin

January, 31, 2012
Jan 31
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Many woke up Tuesday morning to the Dunk Heard ‘Round the World -- a one-armed dunk by Blake Griffin over the head of the Oklahoma City Thunder’s Kendrick Perkins. The Twitterverse has been lit up since; even LeBron James noted Griffin’s dunking prowess: “Dunk of the Year!! @blakegriffin just dunked on Kendrick Perkins so hard!! Wow!! I guess I'm #2 now. Move over #6.”

Griffin is very well known for his dunks -- the one over a Kia sedan during last year’s NBA Sprite Slam Dunk Contest probably drew the most national attention. But do the dunks turn into dollars for him?

“He’s an exciting, slam-dunk, highlight-film sort of player,” said Doug Shabelman, president of Burns Entertainment and Sports Marketing. “The dunk over the Kia obviously put him in a different stratosphere. Then the Clippers went out and became a good team.”

And that’s the real key to marketing power for Griffin: the Clippers winning.

“With the team winning, he could go to the next level,” Shabelman said. “He could get a quick one-off opportunity if they’re winning that would have otherwise gone to Derrick Rose, Kevin Durant or Dwight Howard.”

Shabelman estimates Griffin is making between $3 million and $5 million annually on endorsements, an amount that pales in comparison to James’ $30 million -- the top mark for an NBA player. Howard earned about $12 million last year.

Despite a loss to the Lakers last week, the Clippers lead the Pacific Division by 1.5 games. If the Clippers can continue to win and heat up the Lakers rivalry, Shabelman believes that Griffin will be in a position to explode on the marketing scene.

“Combined with the new success of the team, the addition of Chris Paul, the Lakers rivalry -- Blake Griffin is a force to be reckoned with in the marketing arena and could eventually challenge Kobe [Bryant], LeBron and some of the others,” he said.

Eli Manning may win endorsement game

January, 26, 2012
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As difficult as it is to predict a winner on the field in this year’s Super Bowl, it’s just as difficult to judge which star quarterback -- Tom Brady or Eli Manning -- will win off the field. New England's Brady has Hollywood looks, a supermodel wife, and an edge in endorsement deals to date, but Manning is part of a family that’s football royalty and is not as far behind in big-dollar deals as fans might think.

Brady made about $10 million in endorsements in 2011, and Manning about $7 million, according to Burns Entertainment & Sports Marketing. But the marketability game doesn’t end there.

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Tom Brady and Eli Manning
AP Photo/Charles KrupaThe marketability of Tom Brady and Eli Manning is not as one-sided as fans might think.
Henry Schafer of QScores.com, a company that rates the familiarity and appeal of everything from celebrities to brands, says Manning comes out on top with the general public. Eli’s positive Q Score, which measures likeability, is a 19. An average Q Score for an athlete is 15, which is what Brady rates.

To give some perspective, Manning’s brother, Peyton, is the highest-rated active athlete at a 28 (and also topped the NFL in endorsement deals last year at $15 million, according to Burns). Schafer says Eli Manning approached that number after his Super Bowl XLII victory but dipped after a couple of years out of the playoffs. Brady, on the other hand, never outranked Peyton Manning, not even when he was winning Super Bowls. “Brady is somewhat aloof,” Schafer says. “He didn’t take advantage of his Super Bowl victories.”

A similar system is the N-Score system created by the Nielsen Company and E-Poll Market Research. In terms of “brand effectiveness,” says Stephen Master, vice president of sports for Nielsen, Brady is the clear winner. Brady’s 152 N-Score dwarfs Eli Manning’s 98, but it also represents Brady’s highest score on record. While Brady’s score has been consistently high over the years, Eli Manning did pass him in 2009 with a 166.

“Brady has stood the test of time,” says Master. “He quadruples other athlete’s scores in categories dealing with attractiveness and confidence.” Master went on to say, however, that Brady scores low in categories such as humor, and he is characterized as boring.

Master says Brady’s national advertisements have increased over the past couple of years, but he says Eli Manning has a strong local presence in the New York area. “Eli probably does the most local ads after [Derek] Jeter.”

Eli Manning and his New York Giants are winning the battle at the cash register, at least according to Fanatics, a sports merchandise company that sells officially licensed gear for the NFL’s official online shop, NFLShop.com. Tracking sales from Sunday to Monday, which Fanatics public relations manager Anne Lacey Whitaker says is when fans react the most profoundly, Manning’s jersey outsold Brady’s by more than a 2-to-1 margin. Price-comparison website Nextag.com says that in terms of clicks on each player’s jersey on its site, it’s neck-and-neck.

Schafer says regardless of the outcome on the field, Manning has more to gain from this Super Bowl: “I would say, just from his track record, he’s probably going to see significant growth in his consumer appeal outside of the sports world, probably to his prior level in 2007-2008. ... He has a personality to carry it better than Brady for a lot of products.”

Super Bowl costs going up, up, up ...

January, 25, 2012
Jan 25
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Having thoughts of a last-minute trip to the Super Bowl? Prepare to outlay a boatload of cash. For those interested in the latest on tickets, travel and hotels, here are some mind-boggling notes:

•  Super Bowl ticket prices have risen 9.7 percent since Sunday, according to TiqIQ.com, an online aggregator of event tickets. The current average price is $4,001, up nearly 10 percent from last year and a whopping 72 percent over 2010’s contest in Miami. On the high end, TiqIQ has a $15,786 ticket in Section 140, Row 8 and a suite for more than $587,000.

•  StubHub says the get-it-now price for a game ticket is $2,300, but prices are expected to fluctuate. The median price, not skewed by a few high-end tickets, is $2,800, about $200 below last year’s median at this same time. “We've seen national interest -- over 4 million pageviews since Sunday,” said StubHub’s head of U.S. Communications, Joellen Ferrer. “While Giants and Patriots fans have a loyal backing, they don't have the same rabid traveling fan base as the Packers.”

•  Ticket purchases are coming from expected areas: Since Monday, 29 percent of all StubHub buyers have been from the New York-New Jersey regions, with 19 percent from the New England area. NFL Ticket Exchange is seeing a similar trend, with 22 percent of purchases coming from New York and New Jersey buyers, and 12.5 percent coming from Massachusetts and Connecticut.

•  Flight costs are rising alongside ticket prices. Flights from Boston-Logan and Manchester, N.H., airports to Indianapolis have risen 16 percent since Friday, according to Orbitz.com. The average rate is now $896. New York fans have seen an even larger increase of 46 percent, with the current average rate at $911. Even with the higher costs, New Yorkers are booking more flights -- about 67 percent more -- than New Englanders, according to Orbitz.

•  It’s probably no surprise that hotels in Indianapolis are sold out, at least according to Orbitz. Fifteen miles from downtown, the average rate is $500 a night, up from $85 a night the rest of the year. Cheaper options are available 30 miles out, near Anderson, Ind., at $150 a night.

Those trying to cash in on Paterno thwarted

January, 24, 2012
Jan 24
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It looks like those trying to cash in on Thursday's public Joe Paterno memorial service -- tickets were distributed by Penn State on Tuesday morning -- are getting crushed by Internet users.

A few sets of tickets popped up on eBay and craigslist not long after they were distributed, but the postings were either removed by the original poster or flagged for removal.

One set of tickets slowly escalated from a $0.99 initial bid to $500 before bids moved into the ridiculous range of $10,000 and $90,000 -- eBay users’ way of protesting the sale to the seller. At least two other auctions were put up by different sellers and then removed.

At least two craigslist ads were removed by early Tuesday afternoon, though a handful of people have posted “wanted” listings for tickets.

In the case of the first set of tickets on eBay that drew the $90,000 bid, the seller amended the posting with this message: “To those opposing this auction: no one is forcing you to buy tickets; it is a choice. And yes, there are much worse ways to make a dollar, judge not lest ye be judged. You do not know my situation. Thank-you.”

Penn State and eBay have an agreement that no free tickets can be auctioned. Penn State officials are urging those who see such sales to report them to eBay.

NFL tries home-team approach in Europe

January, 20, 2012
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The announcement Friday that the St. Louis Rams will be the home team in London for a game a year for three years is all about the NFL trying to strengthen its fan base -- and revenue streams -- overseas.

Last October, the league announced that games in London would continue through 2016, with the goal of having at least two games a year in England. But the only game in 2012 will be the Rams game against the New England Patriots on Oct. 28.

NFL officials tout progress in Europe on multiple fronts in recent years. The NFL’s popularity has doubled since the league began playing games in London in 2006 -- the league has seen a 32 percent increase in two years in England and now has a total base of 11 million fans. Participation in American football has grown 50 percent since the NFL arrived in London, and television viewership is up, with Super Bowl ratings up 74 percent since 2006 and viewership of Sunday games up 154 percent over the past five years.

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Wembley Stadium
AP Photo/Dave ShoplandThe NFL games in London are played at Wembley Stadium.
But the overall NFL-in-Europe story has been measured. The NFL’s first venture into Europe was in 1991 as the World League of American Football. That league was disbanded prior to the 1993 season, and in 1995, NFL Europe was launched. That league folded in 2007, after drawing fewer than 20,000 fans per game on average. Last year’s game between the Tampa Bay Buccaneers and Chicago Bears was not a sellout but did draw more than 75,000 people to the game, despite not being finalized until after the lockout.

Lou Imbriano, former chief marketing officer for the Patriots, said the NFL “has done a great job of building their audience in London” but still has room to grow. He said it will take a second game annually to get a true feel for the appetite of Londoners for the NFL.

“One game is easy,” he said. “Everyone can stop for that one time of year. In the next year or two you’ll see them playing two games. That will really be the test is can they sell out two games.”

Chris Parsons, NFL vice president of international, said the ultimate step -- putting an NFL franchise in London -- could only be considered after doubling the current fan base, which would lead to high TV ratings.

English fans now see four games a week live on television, with Sky Sports showing two of the day games and Channel 4 showing the evening game on Sundays. UK fans also get "Monday Night Football" via ESPN. BBC shows highlights from games and airs the Super Bowl live as well on the radio. In addition, Sky Sports shows programming from NFL Network like “NFL Total Access” during the week.

Parsons said a feature Sky Sports introduced last year called “Red Button,” which takes fans to commercial-free red zone action, has been a big hit. “It brings in new fans because it’s nonstop action, which is what UK fans are used to with their sports,” he said.

While the St. Louis game in London will deprive hometown fans of a game each year, it will not affect the team negatively financially.

Ticket revenue for a regular-season home game is split, with 66 percent going to the home team and 34 percent going into a pool that is split between all 32 clubs equally. Parsons said revenue from the London matchup will be handled separately so that no net loss occurs for the Rams.

Imbriano sees positives in the Patriots making the trip.

“They’re an East Coast team, so the travel is roughly comparable to flying to the West Coast,” he said. If he were still in the Patriots front office, he said, he would be pulling together a database of contacts the team has in London and looking into business opportunities, like building a fan club or hosting events while the team is in town.

“If I was running the marketing, I would love the exposure to the European market and to London,” he said. “I’d want to become London’s team.”

The Rams, though, may have the advantage in achieving that status because of the three home games in London, and because Stan Kroenke is the Rams' owner and happens to be the majority shareholder in the English soccer club Arsenal.

Darvish-like signings rare but draw attention

January, 19, 2012
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The Texas Rangers’ signing of Japanese pitcher Yu Darvish is one of the biggest stories in baseball. The combined $111.7 million being spent on him -- between the posting payment going to his former team in Japan and his $60 million, six-year contract -- is drawing comparisons to the commitment the Red Sox made to another Japanese player, Daisuke Matsuzaka. The Darvish signing is also renewing debate over the posting system developed between Japan’s Nippon Professional Baseball and Major League Baseball.

While signings like Darvish’s and Matsuzaka’s make headline news, few players -- just 1 percent of all active MLB players -- have actually been acquired this way.

The agreement applies to any player in the Nippon league who is not yet a free agent for international signing, which requires 10 years of service.

The agreement was put into place in 1998, has no expiration date and works like this: A Japanese club makes a player available for posting through the Japanese commissioner’s office, which then contacts the MLB commissioner’s office. Major League clubs are then notified about the player and have four business days to submit a silent bid. Once those bids are received, the Japanese commissioner’s office is notified of the high-bid amount but not the team submitting the bid. That kicks off a four-business-day period for the bid to be accepted or rejected by the Japanese team that holds the player’s contract. If the bid is accepted, the Major League club with the winning bid has 30 days to reach an agreement with the player. If that occurs, the club pays the posting bid to the Japanese club. If no agreement is made with the player, then no posting payment is paid.

Darvish’s former team, the Hokkaido Nippon-Ham Fighters, on Wednesday became the recipients of the largest posting bid ever. The $51.7 million posting bid was slightly more than the $51.1 million bid the Red Sox paid for Matsuzaka in 2006. Impressive numbers, but the average posting bid for all 10 players who have acquired major league contracts through the posting process is $16.7 million, with a low of $300,000 for Akinori Otsuka in 2003. While Darvish’s posting fee broke records, the other Japanese player acquired through the posting system this year, Norichika Aoki, had a modest posting fee by comparison at $2.5 million.

In all, just 21 players have been posted since 1998. Of those, 10 have signed major league contracts and three have signed minor league contracts. The combined total of all posting fees paid for those signing major league contracts is $166.6 million, which includes the more than $102 million for Darvish and Matsuzaka. Two players received bids but did not sign contracts, including Hiroyuki Nakajima, who the Yankees acquired rights to this past December but failed to sign. Six players who have been posted received no bids, including Hiroki Sanada this year.

Despite there being no expiration date on the agreement with NPB, Major League Baseball officials do plan to discuss the posting system as a part of ongoing meetings of its new International Talent Committee. The committee was formed as part of the new collective bargaining agreement to explore current and proposed regulations regarding the signing of international talent. The group had its first meeting on Jan. 9 and plans to meet once or twice a month going forward. It consists of representatives from both MLB and the MLB Players Association, which will also bring in outside experts to explore the future of international signings.

Minnesota on the clock for Vikings stadium

January, 13, 2012
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No one knows where it will be, and no one knows where the money will come from, but the state of Minnesota appears committed to keeping the Vikings and giving the team new digs. On Thursday, three formal proposals were submitted to Gov. Mark Dayton by a close-of-business deadline.

The Vikings’ lease at the Metrodome has expired, and team owners have pledged not to sign another one until a new stadium has been approved. That has led to speculation that the Vikings might be an option for Los Angeles, which is seeking an NFL franchise. The Chargers, Rams, Raiders, 49ers and Jaguars organizations have also been mentioned as L.A. options.

One option submitted to the governor -- by the city of Minneapolis -- is rebuilding on the Metrodome site. The advantages include not having to purchase new land and already having infrastructure in place. The Minneapolis Mayor’s Office said that proposal is for nearly $900 million. Public funding is estimated at $313 million, which the city proposes to pull together by redirecting taxes beginning in 2016 that currently support the Convention Center. Construction could begin following the 2012 season, and the team could be in its new home as early as 2015.

The city’s plan – at four pages – was the least formal of the three submitted and didn’t include any dollar figures.

The Vikings are wary of some aspects of the city’s Metrodome plan -- including having to play at the University of Minnesota's TCF Bank Stadium for three years. The team estimates a loss of $12.3 million each year at TCF Bank Stadium due to "limitations on stadium space and capacity, available sponsorships, and fan amenities." An additional $11 million in facility upgrades would be needed, according to the team, to meet minimum NFL stadium standards. And another $19 million would be needed to build additional parking facilities. The mayor’s office says the Vikings’ concerns can be addressed.

Rather than re-build on the Metrodome site, the Vikings support a new stadium in the city of Arden Hills, at the site of a former Army ammunitions plant. The costs associated with this option total $1.1 billion -- the most-expensive proposal made. The public portion would be $375 million, which Ramsey County has committed to raise through a 3 percent tax on food service and on-sale drinks. The state would have to approve that funding option, but the county could then implement it without a public referendum. The proposed Arden Hills site is also the only site for which the Vikings have committed money, to the tune of $425 million.

The last proposal submitted was from the city of Shakopee, which is southwest of Minneapolis. The plan calls for the acquisition of land from two land owners said to be ready and willing to sell, and is pegged at $920 million. It would require a $400 million commitment from the Vikings, $29 million a year generated by slot machines at race tracks (not yet approved by the state), and $16 million in fan user fees -- a $5 ticket surcharge, naming rights, and a Vikings license place, among other possibilities.

The Shakopee stadium would seat 75,000 fans, compared to 65,000 to 72,000 at the Arden Hills site. The city of Minneapolis' proposal does not include any specifics about the stadium.

"We would work with the Vikings to give them the stadium they want,” said the mayor's communications director, John Stiles.

The state legislature, which would have to approve any final plan, convenes Jan. 24. Gov. Dayton is expected to identify a frontrunner prior to that date. The Vikings if planning to move, would have to notify the NFL by Feb. 15.

Sports key to New Orleans' resurgence

January, 10, 2012
Jan 10
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With New Orleans hospitals, schools and basic infrastructure in dire need of rebuilding following Hurricane Katrina, many taxpayers wondered aloud why the Federal Emergency Management Agency would allocate $156 million for a renovation of the Superdome.

Sure, the stadium was eligible for FEMA funding because it was state-owned, open to the public, and it sustained damage during Katrina. Yet questions came, anyway.

But for Louisiana, it marked an “If You Build It, They Will Come” idea. Fast-forward six years, and note that the Mercedes-Benz Superdome -- on the heels of a $336 million, multiphase renovation -- is in the midst of playing host to a string of the country’s major sporting events.

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Mercedes-Benz Superdome
Chris Graythen/Getty ImagesThe Mercedes-Benz Superdome before the All-State BCS National Championship Game.
In addition to the annual Sugar and New Orleans bowls, the city that hosted the Allstate BCS National Championship Game Monday night also has Saints playoffs games this winter, the SEC men’s basketball tournament and men’s Final Four this spring, the Super Bowl in February 2013, and the women’s Final Four a few months later.

Landing such events was part of the post-Katrina recovery plan, says Mark Romig, chief executive officer of the New Orleans Tourism Marketing Corp., and a member of committees for the Super Bowl and Sugar Bowl. “We knew for us to come back and to lift ourselves up, we had to go through this process.”

Romig says New Orleans annually ranks at or near the top of the list in hospitality jobs nationally, with between 70,000 and 80,000 positions. He says that number is “very close” to pre-Katrina levels and that there are more restaurants in New Orleans than before the hurricane, and hotel numbers are comparable.

John Williams, interim dean for the University of New Orleans’ College of Business Administration, attributes much of the city’s jump from $4.3 billion in tourism spending in 2009 to $5.5 billion in 2010 to sports. Business travelers are staying an average of 2.2 days longer than their business plans, he says, often to attend sporting events.

Williams says studies also show fans visiting for sporting events are more likely to patronize local restaurants than other tourist segments, like day visitors or business travelers. It’s why he thinks the city has seen a jump in restaurants from 805 pre-Katrina to 1,230 today. “Sports are really key to that,” he says.

Williams says the city saw a 6.6 percent growth in tourism-related jobs in the first quarter of 2011 alone. While numbers have not yet been vetted for the remainder of 2011, he says the city has been experiencing a snowball effect since hosting Saints playoff games in 2009.

Romig says hosting events like the BCS game Monday essentially provides the city with immeasurable free advertising to help boost tourism unrelated to sporting events. ESPN logged more than 36 hours of programming on sets around New Orleans in the week leading up to the game, not counting the game itself, pre- or postgame shows or halftime shows.

Asked to estimate the value of the advertising New Orleans received around the BCS National Championship Game, Malcolm Turner of Wasserman Media Group says, “There’s no question we’re talking in the tens of millions of dollars.”

The projected economic impact from the recent Sugar Bowl and BCS National Championship Game was $400 million. The R&L Carriers New Orleans Bowl played on Dec. 18 and the Saints playoff game last Saturday were expected to contribute another $45 million. But the Super Bowl is the big revenue generator, with estimates at about $900 million.
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