One in Six Billion

April 5th, 2011

I’m going to tell you a great little story. It’s one that I love to share with people.

When I first started out in sports management, I was faced with a problem. The company I worked for managed an Olympic athlete that according to Australia Post, received more fan mail than Santa Claus did at Christmas time! Now don’t get me wrong, excess fan mail is a good problem to have. But disappointing thousands of fans because you can’t manage it, is not.

So there I was sitting in my office as a junior surrounded by finger paintings, drawings and letters from all over the world. I didn’t have the time nor the manpower to open them all let alone respond! Each letter represented a disappointed fan, well at least that’s how I viewed that mountain of mail.

Struggling for answers, I couldn’t help but think that this problem has been solved before by other sport stars and their management. Straight away I thought of my childhood hero Michael Jordan, surely he received lots of fan mail? What did he do? How did his management handle it? Gee, I would love to know the answers.

As crazy as it sounds, for the next couple of weeks I couldn’t help but replay that question over and over. How was Michael Jordan’s fan mail handled?

A few weeks later, I’m sifting through this Olympic athlete’s fan mail and the phone rings. It’s a mother in the USA wanting a poster of our Olympic athlete for her child. Great, I thought, another fan request, just what I need!

Reluctantly I had to explain my problem to her. “Thank you for your request but I can’t promise anything right now, I’m currently inundated with fan requests and I have limited resources,” I said.

She was extremely sympathetic to my situation (which was odd as most fans who want something aren’t) and I soon found out why. Her next line would leave me staring into space. “You know, I might be able to help you, I use to manage Michael Jordan’s fan mail,” she said.

Excuse me?

Turns out her husband previously worked at IMG, Michael’s management group. She and another woman (both wives of IMG executives) would go into the IMG office each week to help with Michael’s fan mail. I was completely shell-shocked. We ended up scheduling a conference call with both ladies and discussed the whole strategy which was heavily backed by Nike.

There are over six billion people in the world and the one person responsible for managing Michael Jordan’s fan mail picks up the phone and calls me!!

I don’t believe this was coincidence, I mean what are the odds? No, there had to be a better explanation. Was it the law of attraction? The Secret? Think and Grow Rich? Maybe.

The lesson here is to never underestimate the power of your mind, for what you think about ultimately drives what you get in life. Thoughts certainly drive your daily actions and maybe, just maybe the actions of those around you, even if they are half a world away.

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Show Me the Money But Don’t Tell Me What To Do!

February 24th, 2011

Player agents don’t have the best reputation in the sports industry right now. From betting scandals to inappropriate dealings with a young girl, the spotlight is well and truly on player agents and their role in sport.

Ask most people in sport business what they think of agents and they’ll tell you that they are nothing but money hungry, over protective, egocentric, fast talking suits with a million dollar grin and dog eat dog mentality. While agents like that do exist, not everyone conforms to that stereotype. Every industry has its good guys and bad guys.

I’ll be the first to admit that most agents are brilliant at making money but lack the mentoring skills needed to guide an athlete off the field. That’s not to say there aren’t agents who can do both….. but they are a dime a dozen.

One columnist this week described agents as “yes men.” I’ve touched on this subject before. And to be honest it’s the single biggest reason for the lack of really great agents.

A yes man is someone who bows to the every command of an athlete. They say what the athlete wants to hear, not what they should hear. They sprout fantasies rather than the reality. They are exaggerate the truth and are rarely candid. A yes man doesn’t say no for fear of the consequences.

A lot of athletes grow up surrounded by yes men. When a young kid shows enormous talent, parents, coaches, friends and sporting bodies treat the prodigal talent very different to your average kid. Don’t want to upset the superstar. Often the kid gets away with things other kids wouldn’t. If you don’t believe me, read Andre Agassi’s autobiography and notice how he was treated at the Nick Bollettieri Tennis Academy compared to the other (less talented) kids.

This “special treatment” is hugely unfair on the young athlete. Much like a spoilt kid cracks it when they don’t get their own way, a young athlete might find it hard to accept criticism or be told what to do.

When a player agent comes into the life of a young athlete, it’s just another yes men being added to the entourage. Yes I can get you a free car. Yes I can get your image on the back of your favourite breakfast cereal. Yes I can get you into that party. And so on.

With each yes, it becomes harder to say no.

Most good agents either get burnt badly for saying no and conform to the yes men OR they walk away from the management game. And that’s why there are very few good agents. Personally I’ve been guilty of saying yes to athletes despite their ridiculous requests or expectations. I’ve also been extremely candid and experienced the awkwardness that comes with that.

Sports agents rely on a great talent to survive in a competitive industry. It’s their livelihood. So anything that threatens that livelihood (saying no and upsetting the athlete) is risky business. The athlete is more important to the manager than the other way around. The athlete knows this.

The problem is by trying to always appease the superstar, agents never enforce decisions that are in the best interests of the superstar. It super sucks but that’s the reality and why there a very few good agents.

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Nike 6.0 Making Waves In the Surfing World

January 6th, 2011

A game of musical chairs is playing out in the surfing world right now. Former Rip Curl pin up girl Stephanie Gilmore has signed with Quiksilver, while Nike 6.0 have snared the prized signature of fellow Aussie surfer Julian Wilson, a former Quiksilver client.

The Nike signing created the most interest though.

A couple of years ago, Nike 6.0 tried to sign South African surfing superstar Jordy Smith. They failed. And since then they have waited patiently for a big signing. They are only just starting to make inroads into the surfing world, but with a growing product line, cash to burn and a nous for selecting the right talent, Nike 6.0 will no doubt become a serious player in an industry that rewards good moves. And the signing of Julian Wilson is a good move.

You’ve got to admit, Nike entering surfing is a good thing. Here is a company that knows how to market and leverage sport. They have the experience, resources and money to progress the professionalism of surfing. They also know that having the right surfers wearing their stuff will dramatically close the gap on other established surf wear brands like Quiksilver, Rip Curl and Billabong. Nike also brings more money to the pot and that means more bargaining power to surfers and better pay.

Quiksilver, long considered the Nike of the surfing world, has successfully built a mega-brand over the years with the help of golden child Kelly Slater. Slater has done enormous things for the Quiksilver. It’s just another example of the power and influence brand ambassadors can have. And that’s why Nike 6.0 knows it can compete in this market.

Nike doesn’t have the rich history and great story that the other surf wear brands have. But it doesn’t need to. If the hottest young surfers are sporting Nike 6.0 stickers on their boards then the groms will soon follow.

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Schoolgirl v Schoolboy Behaviour

December 22nd, 2010

When allegations of schoolgirl misbehavior surfaced earlier this year, the St Kilda football club successfully swept it under the carpet. And for good reason. The words “footballers” and “schoolgirl” in the same sentence spells PR disaster.

If we are to believe the club, then they did everything to put this saga to bed. Even the AFL stepped in to hold discussions with the young girl. But it’s now plainly obviously that whatever she wanted (money, fame, respect, an apology), she didn’t get hence her damaging actions this week.

It’s difficult to comment on a story where fact and fiction blur and she said this, he said that. For those involved, it’s personal and its ugly but not avoidable. And that’s the lesson for other sportspeople.

The best way to stay out of trouble is to not get into trouble in the first place. That means not getting involved with a teenager still at school and not posing for silly photos. Simple stuff really. From all reports Nick Riewoldt is a fantastic guy and so it’s difficult to see him caught up in this scandal but you have to ask the question, why?

Can you imagine someone like Roger Federer allowing himself to be photographed naked or in compromising position? Of course not. Some sportspeople are just to classy, even in private.

We can debate the mental health of the young girl. We can debate the privacy laws. But perhaps we should be focusing on the main issue here, the behavior of some individuals, especially footballers who continue to shoot themselves in the foot with downright stupid behavior.

The Michael Phelps photo scandal in 2009 taught sportspeople to watch their behavior in public, everyone has a mobile phone that can take photos.

Then came the Tiger Woods scandal which taught sportspeople to watch their behavior….. full stop.

Apparently some footballers didn’t get the memo.

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Next Time

December 3rd, 2010

Last night’s decision by FIFA to hand Qatar the 2022 World Cup was bitterly disappointing for Australia. Personally I thought the USA would win. Neither Qatar or Australia had credentials to match the Americans.

However, I have no doubt Australia will one day host a World Cup and it will be one of the most anticipated and best events ever. But the game needs further development in Australia before FIFA will grant us the holy grail of events.

You’ve got to remember that in 2003 – just seven short years ago – Australia didn’t have a national football league. To make matters worse, the national team struggled for quality games and had only appeared at one world cup way back in 1974.

Here was a sport that was completely shunned by the Australian public in preference of our other football codes. For decades. Even today, the large majority of Australians can’t watch football on free-to-air television.

Yes, hosting a world cup would grow the game enormously in this country. But do we really need the extravagance of a world cup to grow the game? If we do then maybe that’s why we missed out on 2022.

Maybe FIFA thinks we can do a better job to develop the code in Australia before it awards us the big one? Either way, everyone knows that for the football world to take us seriously, we as a nation need to take our football seriously. That means making the A-League one of the top football codes in Asia. Big crowds, great players, bums on seats, big broadcast deals and a business swagger that the AFL has.

All this doesn’t explain why Qatar were awarded the world cup, but let’s use this decision by FIFA as motivation to grow the game in Australia and make it impossible for the world to knock us back next time.

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How Online Newspapers Can Win

November 15th, 2010

The Australian featured an article today about the issue of paying for your print news online.

It’s a delicate discussion and one that I don’t have all the answers for. But I can at least provide some food for thought.

The big question newspapers want answered is: How do you get people to pay for something they already get for free?

The answer is, you can’t. That is unless you have exclusive content that none of your competitors have.

For years people watched TV for free and still do. But there was a day when the thought of paying for TV seemed ludicrous. Yet, cable television is now a global phenomena. Why? It has content no one else has and so people are happy to pay.

Can newspapers learn something from TV? Perhaps.

The question shouldn’t be “how do we get people to pay for our content?” Rather it should be “how do we make our content so exclusive that people have no choice but want to pay for it?”

Print is dying and re-emerging via apps on tablet computers. Therein lies a great opportunity to use amazing technology to enhance the readers experience.

Just like cable TV buys a hit show or sporting rights, online newspapers might think about buying great content. And content isn’t just words. It’s photos, video, games, social networking and other interactive entertainment.

I’m talking about unique B2B relationships that strengthen the appeal of an online newspaper. The kind of B2B relationships that give an online newspaper an advantage over news sites who only offer news.

Something to think about huh.

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You’re A Celebrity Now

October 28th, 2010

With Stephanie Rice and Quade Cooper’s relationship now public, sit back and watch Cooper’s profile go from rugby player to celebrity.

Cooper isn’t the first person to ride on the coattails of a high profile romance and he won’t be the last. Moving from the back pages to the social pages certainly has its benefits. That’s not to say everyone enjoys having their relationship in the spotlight. Just ask Michael Clarke.

But if it’s publicity you want, there is no denying a celebrity relationship will raise the fame stakes (and the cash) for the game players.

In this case, both Rice and Cooper are successful sportspeople, however Rice will do more for Cooper’s profile than the other way around. Right now, Cooper is a rugby player with a niche rugby following, but the Rice factor now introduces him to a whole new audience, mainly women. That’s powerful.

In fact, the more demographics a celebrity appeals to the more valuable they are. Think of a celebrity with multiple sponsors, now look at the target market of those sponsors. If the celebrity manager is smart, they will select sponsors that cover varying demographics.

I should state, this strategy of spreading your appeal doesn’t work for every celebrity, only the very marketable can pull it off.

“Guys want to be him, girls want to have him” is always better than “Guys want to be him, girls don’t know who he is.”

It will be interesting to watch Quade Cooper make the transition to celebrity and how he handles the attention that goes with it.

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Celebrity Endorsement, Is It Worth It?

September 28th, 2010

Do Celebrity Endorsements Still Push Product? That question was asked and answered by Advertising Age.

Using a celebrity to sell your product is riskier than ever. However, as long as the potential reward outweighs the potential risk, brands (and consumers) will continue to buy into the world of celebrity endorsement.

And why not. A lot of brands look at celebrity endorsement as a win win situation. Three benefits of using a celebrity to spruik your product include:

  • You don’t always require the best or most creative advertising to stand out (Ricky Ponting and Swiss Vitamins)
  • It doesn’t always matter if the endorsement makes sense, it still gets publicity (Libby Trickett and KFC)
  • If the celebrity misbehaves, the brand gets a get out of jail free card without losing its credibility (Stephanie Rice and Jaguar)

Of course, there are pitfalls to the celebrity game. If your ambassador does misbehave, this can disrupt a 2-3 marketing plan. When the sponsorship takes a hit, so does all the marketing and media plans around that endorsement. A lot of hard work down the drain and you’re back to square one.

Further to that, celebrities really do resonate with consumers, so once you’ve gone down that road, its hard to shake the association. Yep, some people still associate VB Beer with David Boon for example.

So like any business decision, brands need to weigh up the reward verse risk. But right now, the reward still trumps the risk.

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Life’s A Bitch

September 13th, 2010

I had the pleasure of hearing one of Australia’s great female athletes talk at a function last week. I won’t mention any names, but for a long time, she has been a fantastic ambassador for women’s sport.

When asked by an audience member, her thoughts on women’s sport not receiving the publicity the men get. Her reply took a few by surprise. It was blunt and controversial. But I thought it was a great insight and one I should share with you.

Her argument was that people follow sport because of the characters sport attracts. And great characters are not always great role models if you know what I mean. Just like any good movie, you need heroes and villains to create scandal and controversy. Unfortunately women’s sport doesn’t have this character X factor and that’s why it doesn’t get a lot of publicity.

There are a few other factors at play but you’ve got to admit, she makes a good point. Deep down most NRL and AFL fans love the product of footy just as much as the hoopla and entertainment that surrounds it. Just look at the attention the recent Ben Cousins documentary received.

People love scandal and drama, especially women, yet when it comes to sport it’s the women who steer away from the drama. Women’s sport is like the teacher’s pet in the classroom, an honorable student but also the most boring with no friends.

It’s not surprising the biggest grossing industries for women are music and film. These industries are full of characters. To stand out, you have to be! Publicity is a game so you’ve gotta play it.

Let’s look at the sports with the highest profile women. Tennis and swimming are two examples. Tennis has a long history of tantrums, bad behavior, controversial fashion and interesting personalities. And swimming has had its fair share of catfights, tears and twitter faux pas. These sports are full of good, bad and ugly stories. Which makes them interesting.

Fortunately for the girls, they have one of the biggest selling tools at their disposal. It’s called sex appeal. If you’ve got it, why not flaunt it? Like it or hate it, the Lingerie Football League has built a thriving business out of it. *I know more guys who watch this over other (female) sports. Sad but that’s reality.

Remember, this post was written after hearing the views of one of our country’s great female sport stars. Someone who has been at the coalface of their sport and understands the challenges of attracting media attention and hence dollars.

As a sports manager the last thing I would advise clients is to play up and misbehave. But I do believe there is room for some cheekiness, especially for women (and men) in sports that struggle for publicity and popularity.

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Less Is More

August 31st, 2010

Do you ever dream of one Australian football code that everyone follows?

I do. Will it ever happen? Maybe, maybe not. But it’s exciting to think of the benefits that would come from having fewer sports to follow in this country.

Put simply, fewer sporting codes would mean more money in the pot. Club memberships, broadcast dollars, merchandise sales, athlete wages, ticket sales and sponsorship would all skyrocket.

Everyone marvels at the amount of money sport attracts in America and Europe. And while we’ll never match those guys (due to population and economics) we can do better. But first we must cull a few sports.

Let’s take a look at the 15 highest paid NFL players in 2010:

1.    Peyton Manning, Colts $30.8 million total earnings (9th among US athletes, $15.8m salary/$15m endorsements)
2.    Matthew Stafford, Lions $27.6m (11, $26.9m/$0.7m)
3.    Eli Manning, Giants $26.5m (T13, $19.5m/$7m)
4.    Philip Rivers, Chargers $25.8m (17, $25.6m/$0.2m)
5.    Terrell Suggs, Ravens $24.9m (19, $24.9m/$0.0m)
6.    Albert Haynesworth, Redskins $24.6m (20, $24.6m/$0.1m)
7.    Brett Favre, Vikings $24m (21, $17m/$7m)
8.    Darrius Heyward-Bey, Raiders $21.5m (28, $21.4m/$0.0m)
9.    Jason Smith, Rams $20.6m (33, $20.5m/$0.0m)
10.    Julius Peppers, Bears $20m (36, $20m/$0.0m)
11.    Vince Wilfork, Patriots $18.9m (38, $18.9m/$0.0m)
12.    DeAngelo Hall, Redskins $18.5m (40, $18.5m/$0.0m)
13.    Tyson Jackson, Chiefs $18.1m (42, $18.1m/$0.0m)
14.    Mark Sanchez, Jets $16.9m (48, $16.4m/$0.5m)
15.    DeMarcus Ware, Cowboys $16.8m (49, $16m/$0.8m)

These wages are difficult to comprehend but take a closer look at the money pouring into the sport and you begin to understand why Peyton Manning has three cars……. two Escalades and one Cadillac SLR for the record.

According to AdAge, Anheuser-Busch recently signed a six-year, $1.2 billion agreement to reclaim its position as the league’s official beer sponsor. The deal takes effect in April of 2011.

Meanwhile, earlier this year, Verizon Wireless agreed to fork over $720 million over the next four years to replace Sprint as the NFL’s exclusive wireless partner.

And then there is PepsiCo who are in the final season of two deals totaling more than $1 billion: $560 million over six years for its Pepsi, Frito-Lay and Tropicana brands, and $500 million for Gatorade. And let’s not forget the league’s other 20 sponsors who pay anywhere between $10 – 15 million per year (and then outlay $1.5 billion collectively to leverage their sponsorships).

If that’s not enough money, then let’s include the NFL’s broadcast deals worth $3.7 billion per year (Monday Night Football is worth in excess of $1.1 billion alone) and you have a budget that slightly trumps the AFL, NRL, ARL and A-League put together. Oh, and we haven’t even discussed the individual NFL clubs and their sponsorship, membership and merchandising rights and their athletes who command individual endorsements on the side.

So if you’re an Australian footballer who couldn’t previously understand why the Redskins DeAngelo Hall is on $18.5m and you’re on $400,000 then maybe you can now?

Right now, we have a very fractured sporting landscape in Australia. Too many sports competing for a pie that isn’t that big.

Let’s do the maths. America has over 300 million people. And six big sports – NFL, MLB, NBA, NHL, USPGA and NASCAR.

Australia has over 20 million people. A much smaller population, yet we have five big sports including the AFL, NRL, ARU, A-League and Cricket Australia.

It’s little wonder athletes are heading overseas for better pay, footy clubs are struggling to make a profit and memberships are not where they should be.

Based on the above equation, Australia should concentrate on having three big sports, minimum. The rest can battle for the scraps.

Now, the only problem is deciding on those three sports? Which three would you choose and why?

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