Super Bowl 50 by the Numbers

You just have to love the Super Bowl, especially if you teach sports marketing!  The “Big Game” creates such a fun environment for teaching some of the fundamental marketing principles that drive the business of sports and entertainment.

Looking for a current and relevant way to illustrate the concepts of supply and demand or economic impact? Need a discussion starter on the concept of ambush marketing or sponsorship?  How about advertising, ticket sales or merchandising?  Endorsement?  Promotion?  This look at the Super Bowl “by the numbers” has you covered.  Enjoy the “Big Game”!

$35 Million

According to moneynation.com, estimates put Cam Newton’s career endorsement earnings thus far at $35 million.  Newton’s endorsement portfolio includes brands like Under Armour, L’Oreal, Dannon, Beats By Dre and Carolinas Medical Center (among others).

$12 Million

Peyton Manning earned $12 million in endorsements last year alone.  According to Forbes, Manning was the NFL’s top pitchman in 2014 thanks to partnerships with companies like Buick, DirecTV, Gatorade, Nationwide and Papa John’s.

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College Football Season Recap: By the numbers…

With Alabama’s exciting win in a shootout over Clemson to win the 2016 College Football Championship, yet another college football season is in the books.

Here are a few sports business stories and statistics from this season that might be fun to discuss in class. Use this information to reinforce concepts like the size and scope of the industry, the impact of supply and demand on ticket prices, how sponsors connect their brands with fans and the critical role broadcast rights play in the business sports.

$3 Million

As in the expense for Alabama Football…just for their “support staff” payroll. According to cbssports.com, Alabama’s strength and conditioning coach was paid over $500,000 in compensation for the 2015 season.

$810,000

According to a report from USA Today, Auburn spent $810,000 to “brand” their practice facility with graphics that “tell the story of the Tigers’ success”, a trend being followed by football programs all over the country

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Infographic: Business of College Sports

Umbel published a pretty cool infographic today that examines the top teams, sponsors and brands in college football today.

In addition to providing a nice snapshot of the big numbers that drive the business of college sports, the infographic provides some additional findings that might spark a fun and worthwhile conversation in class.

  • Eminem is the most popular musician on social media among college sports fans (and Katy Perry is most popular at UCLA and Arizona State University)
  • More than a third of college sports fans like eating at Subway
  • Auburn University in Alabama has the largest digital screen of any college sports stadium. At 190 feet x 57 feet (10,830 sq ft), their screen is two-thirds the size of a football field. Texas A&M had the second largest screen measuring 163 feet x 47 feet (7,661 sq ft) which is about half the size of a football field.
  • Nike will pay $169 million to sponsor the University of Michigan’s team uniforms – That’s what it costs to buy about 1 million college team’s football jerseys
  • Total college sports sponsorships for the 2014-15 season was $1.1 billion, an increase of 6% from the previous season. That’s almost equal to the GDP of small island nations like Antigua and the Solomon Islands.

Sneaker Wars & the NCAA Tournament

Today’s post comes courtesy of Griffin Booth, Sports Career Consulting’s blog manager.  CONGRATS again to Griffin for being accepted into Major League Soccer’s sales academy.  I know you will do very well and would like to wish you the best as you continue to pursue your dream job!

Nike once again headlined this year’s NCAA men’s basketball tournament as the leading outfitter of participating teams. Nike and its affiliated brands sponsored 52 of the 68 teams in the field, equaling the same number as last year’s tourney. The breakdown shows that 44 teams wear Nike jerseys, while 5 schools represent Jordan. In shoes, 47 schools wear Nike, while 5 schools rock the Jordan Brand. Colorado State, Southern, and Western Kentucky are the three schools that wear Nike shoes, but represent Russell as the sponsor in uniform. In terms of the schools represented by Jordan (North Carolina, Marquette, Georgetown, California, and Wichita State), the brand got some nice exposure with all but one of their teams advancing to the field of 32, unfortunately their top seeded team (Georgetown) suffered one of the biggest upsets of the tournament.

13 schools in this year’s tournament represented Adidas. Adidas took a unique approach in terms of uniform style as well, which has drawn a lot of attention. This year, Adidas bucked the traditional approach to uniform design by creating jerseys with not only sleeves, but also with camouflage-patterned shorts and extremely bright color jerseys. The AdiZero jerseys have received a lot of negative national attention so far, and it will be interesting to see if they are talked about throughout the tournament.

Under Armour is a brand that has been trying to “spread its wings” into other categories, recently working to make a play for a slice of market share in the basketball market. Schools like  Maryland, Texas Tech, and Utah are examples of big time program football schools that are sponsored by Under Armor. However, in this year’s tournament, Under Armor represents only La Salle, South Dakota State, and Temple.  However, La Salle has become one of this year’s “cinderella” teams, providing a nice boost in exposure for the UA brand while Temple performed admirably pulling out a first round upset and giving the #1 seed Indiana a scare in the field of the 32, nearly advancing to the sweet sixteen.

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Olympic Sponsors Facing Criticism…

At what point does sponsorship of a mega-event like the Olympic Games yield diminishing returns if the brand’s image receives a significant amount of negative publicity? 

If you have tuned in to watch the Games within the past four years, you have likely seen (or heard) the slogan “Visa: The Only Card Accepted at the 20XX Olympic Games” being advertised in one form or another.  Visa has long been one of the biggest supporters of the Games (since 1986) and, as part of their relationship with the organizing committee as a sponsor, is the exclusive credit card of the Olympic Games.

As such, anyone without a Visa might find themselves in a bit of a bind when it comes to making an Olympic purchase.  The official ticketing website of the London 2012 Olympic and Paralympic Games states “In recognition of Visa’s longstanding support of the Olympic Games and Paralympic Games, only Visa (debit, credit and prepaid) can be used to purchase tickets.”  In other words, if fans want tickets to see the beach volleyball competition, they will need a Visa to make the purchase.  Same goes for anyone buying a t-shirt to commemorate their experience at the Games.  And anyone thinking they can circumvent the system by visiting an ATM and paying with cash better think again because if their debit card does not feature a Visa logo, they’ll be hit with a hefty “convenience” charge.  Visa will have a near-monopoly on ATMs at event facilities.

Granted, organizers need to create value for sponsors paying millions in sponsorship fees to justify the spend, but one has to wonder if consumers become turned off to the brand as a result of the exclusivity (for more perspective on Visa’s exclusive deal and how it impacts consumers in London, check out this blog post from b2bmarketing.net.)  Visa isn’t the only one generating headlines for something other than their Olympic loyalty either.  McDonald’s and Coca-Cola, two long-standing partners of the Olympic Games (who have spent billions over the years supporting the event and even waived their right to using the Games as a tax exemption) have received a lot of criticism from advocates of healthier eating.  It will be interesting to see how everything plays out following the Games from a publicity perspective.  Jacques Rogge, president of the International Olympic Committee, hasn’t exactly rushed to the side of two of the Games top sponsors either, suggesting there had been a “question mark” hanging over aligning with them for the London Games.  Of course, Rogge pulled a 180 the day after making the statement, saying he’s “proud to be associated with them.”

It remains to be seen if any of these brands will pull back on their support, but if the criticism becomes widespread and the risk of damaging the brand becomes real, well, you never know…

Around the Horn: May 24th

Fewer people tuned in to watch last Saturday’s Preakness Stakes on NBC than last year’s race (viewership declined by 8%). Many had actually expected to see a ratings increase with the stage set for another potential showdown between Kentucky Derby winner I’ll Have Another and runner up Bodemeister, but apparently the budding rivalry was not enough to attract more eyeballs.

It isn’t all bad news, however, for NBC.  According to Fang’s Bites (a website that analyzes sports media), overall viewership for the Preakness Stakes on NBC is up an average of 63% in the last 11 years compared to the previous 8 years’ of race coverage on ABC.  NBC should also expect to see a nice boost for its coverage of the Belmont Stakes.  Interest in the race has spiked as I’ll Have Another pursues the coveted Triple Crown.  According to USA Today, since 2000, the eight Belmont races without a Triple Crown candidate averaged 4% of U.S. TV households while the 4 races with horses contending to become the first Triple Crown winner since 1978 averaged 10.1% of households.  Expect a nice number for NBC on June 9th…

Many have suggested a correlation exists between the National Football League’s rise in popularity and the explosive growth of fantasy football.  If a correlation does indeed exist, should we see a boom in the popularity of fishing as a spectator sport?  Bassmaster’s website features a fantasy fishing league and it appears as though thousands of fishing enthusiasts are actively participating…great idea by Bassmaster to drive traffic to the site while giving fans a reason to consistently interact with the brand.

According to a recent USA Today report, the National Guard spent nearly $33 million in NASCAR sponsorship fees in fiscal 2011.  The same report also suggests the National Guard spent $20 million in professional fishing and $90 million overall in motor sports in 2011 and 2012…this apparently led the government to enact an effort to ban all military spending on sports sponsorship.  If the government succeeds, how significant will the impact be on the industry?  Just ask Dale Earnhardt Jr. (sponsored by the National Guard), Brad Keselowski (U.S. Navy), or Ryan Newman (sponsored by the U.S. Army) who collectively risk losing millions…

Despite what is becoming an increasingly crowded space, Gatorade continues to dominate the competition.  A story that appeared recently on bloomberg.com suggests the sports/energy drink market was $41.5 billion in 2011, representing the fastest growing segment in the beverage industry (up 14% from 2010).  According to the article, Gatorade did $13.8 billion in sales last year, capturing 33% of the market. That’s impressive.

Today’s parting shot:  The NY Rangers Gnome (@NYRGnome) started a Twitter account at the beginning of NHL playoffs. It already has 5,250 more followers than I do…

NFL Draft Marketing

You have to give credit to ESPN and the NFL.  A little more than thirty years ago (the original plan to broadcast the draft was hatched in Bristol back in 1980), most people thought televising the draft was a crazy idea.  Critics suggested the draft was unwatchable, especially as an all-day event.  Even those who supported the idea did so with little confidence.  Fast forward to today.  This year, ESPN will spend three days covering the draft, much of it during prime time. The NFL Network will also be broadcasting the event live.  The NFL Network set a draft viewership record last year, averaging nearly 570,000 viewers for its three-day coverage while ESPN averaged nearly 3 million viewers during the same span, according to the Sports Business Journal.  But here’s the thing…the NFL and ESPN are no longer the only brands looking to cash in.

Given the competitive nature of the shoe and apparel business, the number of fans tuning in for the draft provides an excellent platform for footwear and apparel companies like Nike, Adidas, Reebok and Under Armour to showcase their brands.  Notably absent this year, however, will be the Reebok logo on the hats worn by players as they take the stage when their names have been called.  Reebok’s deal with the NFL recently expired and New Era becomes the official on-field cap for the league.  New Era hasn’t wasted any time leveraging the partnership with the league, recently rolling out newly designed draft day caps on the company Facebook page.

Meanwhile, Nike will take over the exclusive uniform rights.  The news of tweaks to uniform designs and fabric technology came with much fanfare, and the company’s “reveal” event created a lot of chatter.  However, the brand announced at the event that new jerseys would not be available for purchase until draft day.  Nobody generates buzz and manufactures demand like the ever opportunistic swoosh.

Never one to stand idly by, long-time Nike rival adidas invested in a lucrative endorsement deal with this year’s Heisman Trophy winner, Robert Griffin III.  RG3, as he’s also known, is expected to go second overall in the draft to the Washington Redskins (the Indianapolis Colts have reportedly already told Andrew Luck they plan to select him with the number one pick).  You can bet adidas will be doing all they can throughout the draft to maximize the brand’s exposure via their relationship with the popular QB and that of Ryan Tannehill (from Texas A&M), who adidas also recently signed and is expected by many to be the third quarterback selected.  A commercial featuring RG3 is already posted on YouTube…expect to see it many times during draft coverage.

Under Armour, recognizing the potential challenges in gaining prominent exposure for the brand during the draft, focused its efforts to gain consumer attention by building buzz at the NFL combine.  To do so, the brand developed an extensive social media campaign to support its sponsorship of the event.  That strategy allowed the Maryland-based company to effectively promote the brand without getting lost in the draft-day hype of Nike’s new uniforms or the adidas relationship with RG3.

Coverage of the 2012 NFL Draft begins on Thursday, April 26th at 8:00 ET on ESPN and on the NFL Network (Verizon Wireless users will also be able to tune in on their mobile device).

Side note:  Click here to see footage of the 1981 NFL Draft on YouTube…it really is amazing to see how far the event has come.

Around the Horn: April 17th

Groundbreaking news from the racing world:  Announced today, the Ford Focus will become the first ever electric car to lead the field as the pace care at a NASCAR event during the April 28th Sprint Cup race in Richmond.  The decision drives homes NASCAR’s continued emphasis on green initiatives, but Ford has the most to gain by showcasing an electric model and educating a large number of consumers about new technologies.

Today a Kenyan runner won the men’s division of the Boston Marathon, marking the 19th time in 22 years that a Kenyan has won the prestigious race.  A Kenyan runner also finished first in the women’s race, the 3rd time that has happened in the previous 5 years.  The big winner, however, is the city of Boston.  According to estimates from the Greater Boston Convention & Visitors Bureau (via myfoxboston.com), the race was expected to bring in over $137 million to the Greater Boston area, an economic impact roughly equal to that of a Final Four.

With 22 million hits already, I must be one of the last to see this TNT viral video…however, if you are like me and hadn’t seen it yet, you should definitely check it out.  The stunt provided a brilliant means for building buzz surrounding the launch of the station in Belgium…

Did the Planned Parenthood PR debacle back in January really result in a significant drop in participation rates for Susan G. Komen for the Cure events as USA Today is reporting?  If so, that’s the sad end result of a botched crisis management effort, providing a perfect example of why the “all publicity is good publicity” theory isn’t exactly spot on…

Last night, the world of entertainment marketing gave us one of the most innovative things we’ve seen in a while after a performance at the Coachella music festival managed to create a frenzied buzz among fans all over the Internet.  During a Dr. Dre and Snoop Dogg concert, a 3-D hologram of Tupac Shakur (who died 15 years ago) created the illusion of the legendary rapper performing live.  As a testament to the stunt’s overwhelming popularity, 2pac’s HOLOGRAM had nearly 3,500 followers within 12 hours after his “appearance” on stage…

The Twitterverse (via @msament) presents this week’s installment of Things That Make You Go Hmmmmm:  “Misplaced priorities? KY public colleges fund subsidize athletics by $50M while state cuts school funds by $105M..http://bit.ly/HCr2ah.”

Around the Horn: April 9th

A few newsworthy items relating to the Masters Sunday from a sports business perspective:

* ESPN Radio reported that Bubba Watson earned just over $5,000 per golf shot for the tournament for a total of $1.44 million

* Despite a dramatic playoff finish, television ratings for this year’s Masters suffered a significant drop off, falling 22% from last year’s tournament.

* Sunday’s win helped propel Bubba’s personal brand, particularly from a social media perspective as the number of people following Watson shot up nearly 60% less than 24 hours after Sunday’s victory. (via @DarrenRovell on Twitter)

* According to a story that appeared online today at forbes.com, Watson’s N-Score (measures a sports figure’s overall endorsement potential based on appeal and awareness) suffers low awareness scores, but his appeal scores are “off the charts” (68% of respondents said they like Watson while 52% like Phil Mickelson)…obviously winning the Masters will give Bubba a very significant bump in awareness scores, meaning he now stands to gain much more than the $1.44 million in prize money thanks to the huge victory on one of golf’s grand stages.

* Many attribute the drop in ratings to the fact that Tiger Woods was not a threat to win…according forbes.com story, just 17% of respondents said they like Tiger, a testament to how polarizing Woods remains.

* Watson’s current golf-related endorsement deals?  Clubs (Ping), balls (Titleist), shoes (Footjoy), socks (Kentwool)…one would assume the asking price might increase at next round of negotiations.

Rare is the athlete who manages to land an endorsement deal for a non-sports performance product, but Robert Griffin III is certainly not the average QB prospect.  It was announced today that RG3 signed a deal with Castrol, news that certainly speaks to his potential both on and off the field.

There is a lot of excitement surrounding tonight’s debut of Japanese pitching sensation Yu Darvish.  How much excitement?  According to the analysts at Front Row Analytics, just wearing a Nike glove and cleats will provide Nike with over $28,000 in exposure on Fox Sports Southwest’s broadcast of tonight’s game. (via @FRAnalytics on Twitter)

Around the Horn: April 5th

For those interested in Masters social media, the folks at Octagon First Call have assembled a “social media guide” to the 76th Masters golf tournament at Augusta.  Great resource for those who want to follow their favorite golfers or get real-time updates on scores.

Need evidence to support your theory that the NBA loves star power?  Look no further than last night’s highlights of the Clippers vs. Lakers game on nba.com.  Based on the ratio of Clippers to Lakers highlights, one would assume the Clippers won the game (they didn’t).  That said, seeing Blake Griffin dunking on Gasol like that (twice) makes a pretty compelling case for why Kia and Subway seem to think he can help them sell more product.

Brands looking for the next up and coming athlete with real star power don’t need to look any further than Robert Griffin III, better know as RG3, who posted his first tweet to his twitter account this week.  Just 24 hours later, he already had nearly 75,000 followers (and nearly 80,000 at the time of this post).  You think this guy is going to help whichever team drafts him sell tickets?  Adidas also stands to benefit from RG3’s foray into social media because Griffin endorses the brand.  Nike probably isn’t complaining either, knowing the former Baylor QB is likely to sell a LOT of jerseys, and they now have the sacred NFL apparel deal.

Speaking of the NFL’s apparel deal with Nike, I’m still amazed how much hype Nike‘s new uniform “reveal” event on Tuesday generated.  Nobody manufactures buzz like the swoosh

For those wondering how lucrative the digital media market is for the NCAA, AdAge recently reported that digital viewership of March Madness generates $60 million in advertising revenue for Turner and CBS.

In entertainment news, it was announced earlier this week that James Bond (Daniel Craig) will help open the Summer Games in London.  GREAT score for MGM Studios as over a billion people are expected to watch the Opening Ceremonies…

JOB SEEKERS!  Seattle University Athletics is looking for a ticket sales Account Executive & Assistant GM of ticket sales.  For more details, please see the previous post on our blog.