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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THICK SKINNED

August 19th, 2010

It’s hard to ignore the slanging match going on between former Socceroo Robbie Slater and current Socceroo Harry Kewell.

Kewell has copped his fair share of media punishment over the years. And given the player’s frustration with Australia’s performance and his own subsequent non selection at the 2010 FIFA World Cup, I can understand him wanting to take on Slater.

But I would discourage athletes from going down the same path. Lashing out at journalists nearly always ends in tears. Here’s why:

1. Reacting (especially in public) only fuels the fire of a story you don’t want out there. Some fly away comments from Slater on PayTV are now backpage headlines because of Kewell’s response.

2. You’re only doing the journo a favour. Journalist’s love publicity because it raises their own profile and makes them more valuable within media circles.

3. Yes the media often get it wrong. But the public goes on the belief that where there is smoke, there is fire. Don’t let that smoke develop into fire (see point one).

4. Creating enemies in the media isn’t fun. They and the organisation they work for, will knock you at every opportunity. Who wants that?

Finally, if you fight a journalist on one front, where do you stop? Do you go on a personal vendetta against every journo that writes something bad about you? This is incredibly taxing and affects sporting performance.

It pays to have a thick skin, especially when it comes to the media.

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End of an Era

May 7th, 2010

Just out of school, I had aspirations of working in athlete management. I remember telling anyone who listened, that I was going to manage athletes for a living, “just you watch” I said. No one believed me and I don’t blame them. Getting into sports management seemed a million miles away at the time.

Fast track to 2010 and I can say I got there. In fact it was nearly 8 years ago that I took the management reins of my first client. Since that time, I’ve been involved in the personal management of Australia’s biggest sporting stars including Ian Thorpe, Leisel Jones, Libby Trickett, Alisa Camplin, Cadel Evans, John Aloisi, Lucas Neill, Mark Bresciano, Vince Grella, Brett Emerton, Torah Bright, Matthew Mitcham, Marcos Ambrose, Matt Hall, Geoff Huegill and more recently Shane Watson plus many more.

It’s been an incredible ride with some amazing memories. A time in my life that I’ll never forget.

I’ve worked across major areas of business including client management, public relations and sponsorship sales and servicing. I’ve been there for two Olympic Games, two Commonwealth Games, three World Championships, countless National Titles, and the biggest sporting events to grace our shores.

I’ve experienced the personal highs and lows of my client’s careers, the controversies, the revelations and the feel good stories. I’ve managed the delicate relationships with athlete family members, coaches, sponsorship managers, fans, club officials, and every single major news outlet in the country. I’ve witnessed the money and politics that drive sport behind closed doors, I’ve had special access to sponsors’ products and a free ride to the best seats in the house. I’ve attended countless VIP events, stayed a lot of hotels, travelled business class and enjoyed the over-the-top hospitality that celebrity attracts. I’ve had parties, dinners, dates and weekends interrupted at all hours of the day by journalists chasing a story. I’ve even felt the adrenaline and pride of cheering home a client in a packed stadium (a special feeling). But none of these experiences matches the amazing close friendships I’ve formed with the people around me such as the athletes, business contacts and my teammates – the staff alongside me.

I’m telling you all this because today is my last day as an athlete manager.

In order to be the best administrator in Australian sport I need to seek a new challenge, one that is going to further challenge me and grow my credentials. From next week I begin work with one of Australia’s best institutions for producing the sporting superstars of tomorrow. It’s an exciting next step and one I’m really looking forward to.

I started this blog to share my knowledge of an industry few really get to experience. I really hope readers have benefited from the insights.

I will endeavour to keep posting (quality over quantity) content on this blog but for now I need a little space to settle into a new role.

Let’s meet again soon.

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Thunderstruck!

April 30th, 2010

What a mess. Of course I’m referring to the arguably the biggest Australian sporting controversy, ever.

The fact NRL club the Melbourne Storm elaborately and systematically cheated their way to four successive grand finals and two premierships over the past five years is disturbing.

But not as disturbing as the reaction from some quarters over the NRL’s punishment to strip the club of two premierships, three minor premierships and the opportunity to earn points this season.

Can we stop blaming the NRL?

For the credibility of the game, the NRL had no choice but to punish Melbourne the way they did. And remember, this was a decision that had the support of Melbourne and NRL stakeholder News Limited. It’s also a decision that has the support of 90% of NRL fans.

Personally I think the club got off lightly. The team shouldn’t be allowed on the park this season. But to give the club the best chance at survival, the NRL has allowed them to play on.

NRL CEO David Gallop should be commended for showing strong leadership and decision making in the face of criticism from media personalities who don’t understand the first thing about business.

As crucial as the Melbourne market is for Rugby League, no one club or player is bigger than the game. For the game to win the respect of fans and other clubs who bust their guts to play fairly, Melbourne had to cop their punishment on the chin.

My final word on this saga:

Everyone agrees that Winning in sport = Success off the field.

So for every club to be successful they need to be winning, right?

So to give every team the best chance at winning, the talent needs to be spread out so the competition is even, am I correct?

This is why a salary cap exists. It’s the best formula right now to grow the game.

Yes Melbourne deserve a chance to succeed but so does every other club. The NRL understands this. News Limited understand this. The majority of fans understand this.

Unfortunately those people that think they know the right solution, don’t. Because any other solution would only divide the fans even more.

Congratulations to the NRL for having courage under fire.

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Licensing…It’s Got To Be-e-e-e Perfect!

April 9th, 2010

Established brands should be wary when it comes to licensing deals leveraging the name of a celebrity.

I’m talking about brands that name products after celebrities. This strategy often fails because the idea is un-believable. Not everything a celebrity touches turns to gold.

There are a few exceptions to the rule. Classic examples include the “George Foreman Grill” or “Nike Air Jordan” basketball shoes.

The George Foreman Grill worked because George Foreman endorsing a grill is believable. The public knew George didn’t invent the grill but he represented the grill’s perfect customer. A big guy with a big appetite who loves his meat but doesn’t like complicated cooking.

Nike Air Jordan worked because the “shoe” was part of Jordan’s performance equipment. It was believable Jordan had input into the design and features. So it was ok to name the shoe after him.

On the other hand, we have a product like “Tiger” Gatorade. This failed because Gatorade was already an established brand – it didn’t need to hi-jack a celebrity’s name. I was always more inclined to buy Gatorade because it’s Tiger’s choice of drink. Not because it was named after him. There is a big difference.

Look at Emporio Armani underwear and its ambassor David Beckham. The brand could choose to bring out “David Beckham” underwear under the Emporio Armani label, but they don’t because they know it wouldn’t work. Why? Because people buy Emporio Armani because the brand is an expert at making great underwear. David Beckham is an expert a playing football. Where’s the connection? Naming a range after Becks would only cheapen the product and ridicule the intelligence of Armani customers.

Licensing is done best when both the celebrity and product are a perfect fit for each other. Anything less than perfect just doesn’t work.

PS. Was anyone really surprised by Tiger Woods’ shooting 68 on the opening day of the Masters tournament? I wasn’t. This is the first time Tiger has ever entered a tournament without the expectations of winning it. Given his preparation, it was ok if he didn’t perform. What a huge weight off his shoulders! He has nothing to lose. And that makes him very very dangerous.

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Spinning Your Own Web

March 29th, 2010

What an eventful weekend for the Australian Grand Prix.

It started on Friday night when pin up boy Lewis Hamilton had his sponsor car impounded by police for hoon driving.

And it finished yesterday with Australian Mark Webber criticising Melbourne’s tough anti-hoon laws, labelling Victoria a “nanny state.”

Let’s start with Hamilton. What he did was dumb. No doubt about it. But to his credit, he handled the fallout smoothly, showing great remorse for his actions by apologising and assisting police.

The authorities won’t like this but Lewis Hamilton fans got a kick out of the stunt and it may have even won the McLaren driver some new fans. A kinda  cool story to tell the grandkids one day.

Hamilton walks away embarrassed but not disgraced and certainly not with a target on his back.

Unfortunately I can’t say the same about a very own F1 star Mark Webber. Unlike Hamilton, Webber didn’t get caught hooning and he didn’t have his car impounded by police. Webber’s only lowpoint of the weekend was his result in the big race, a disappointing ninth.

So why then does Webber fly out of Melbourne under fire from angry authorities and a divided public? Cue his comments about Victoria’s road laws.

I’m not going to debate Victoria’s road laws. What I am going to debate is the need to speak out about the road laws. Maybe Webber wanted to take the focus off his disappointing result? Or maybe by defending Hamilton, Webber saw a chance to score some points with the McLaren driver who he crashed into? Or maybe Webber is just incredibly passionate about Victoria’s road laws?

Whatever the reason for Webber’s comments it sure has created some heated debate. Authorities agree that if everyone was as skilled behind a wheel as an F1 driver then maybe they could relax the current road laws. But unfortunately not everyone is an F1 driver as witnessed by Victoria’s road toll of 78 this year.

I’ve got to question Webber’s comments for one reason and that is, apart from dividing people, exactly what are the comments going to achieve?

It’s fair to say Lewis Hamilton feels the same way about Victoria’s road laws but unlike Webber, Hamilton is smart enough to stay out of the debate.

I really feel for Webber, he has enough targets on his back (especially with the Australian media who don’t understand the politics of his sport) without giving them extra ammunition.

It’s true that Webber’s core motorhead fans welcome these comments. Just like Hamilton, Webber probably even won some new fans for speaking out about the road laws. But at what cost?

Webber jets out this week, unable to stick around and doing anything positive to change the road laws. So again I’ve gotta ask, what does this all achieve?

I often begrudge the negative press Australian athletes receive by their own countryman but sometimes its hard to defend. Let’s hope Webber can focus on the season ahead, I’ll still be cheering him on the track.

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The Other Footy Show

March 26th, 2010

What did everyone think of the new Matt Johns Show last night?

Personally I was extremely disappointed. I really wanted this show to live up to expectations. Matt Johns is a great TV talent, he’s just lacking some confidence right now and it showed last night. The skits were terrible, and apart from “Controversy Corner”, the dialogue was bland.

The show has been promoted as a variety style program with a rugby league influence, but let’s be honest it’s just another version of Nine’s Footy Show.

If Johns can keep attracting high quality quests and improve the skits then the show should attract the same people who watch The Footy Show. But it needs to pull a few more eyeballs than its big brother to justify the primetime slot.

Rove battled for years to keep his juggernaut sailing but he did it with the biggest celebrity interviews and a team of a quality comedians.

Johns doesn’t have a team of comedians. He only has a few rugby league personalities at his disposal and this I fear will be the show’s downfall. Johns needs a supporting cast that can produce good comedy. Die-hard rugby league fans will stick around but everyone else will tune out if the show fails to deliver good entertainment.

I think I and a lot of people will be giving it a second chance, I just hope it improves, a lot.

I’m interested in your thoughts. What did you think?

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Playing At 100%

March 18th, 2010

One of the things that attracted me to sports management was the opportunity to surround myself with highly successful individuals. And so over the years I have closely observed the values, traits and habits of my clients.

One trait that kinda captures a lot of things I admire about elite sportsman is this:  Successful athletes don’t know how to give anything but 100%

What do I mean by this?

In the corporate world you can get away with a below average effort and still earn your weekly paycheque.

But in the sporting world, putting in a below average effort is career suicide. It’s a much more cut throat environment where winning and losing is everything.

This sporting mindset means an athlete will fully apply themselves to any task they are given. That’s why a lot of successful athletes go on to have successful business careers in retirement. They don’t know how to play at 60% they only know how to play at 100%.

Think about it. An athlete is constantly analysing their own performance so they can improve. They push harder with every training session. They seek out advice. They surround themselves with coaches, dieticians, psychologists. They make an effort to learn new skills. They make daily sacrifices. They are constantly striving towards a personal best.

Can you honestly say you’re making the same effort in your own career? Are you doing everything possible to be the best? Are you playing at 100%?

If you don’t understand what I mean, read some biographies of successful athletes and you’ll begin to understand the work ethic, sacrifice, dedication and commitment they display day in day out to be the best.

Imagine if you approached your job the same way an athlete approaches their job. I dare say you would get the same results.

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Highway To The Publicity Zone

March 12th, 2010

Did anyone see Red Bull Air Racer Matt Hall flying over Sydney Harbour yesterday?

The fighter pilot turned sportsman was hard to miss, and not just from the air. Hall’s fly over attracted coverage from Channel Seven’s Sunrise and The Today Show, not to mention countless other news services.

This was a PR exercise executed by my good friend David Lyall who runs Sports Communication Australia

Lyall is the best when it comes to sport PR.

Not only does he know everyone in the media world, but he has the experience and street smarts to attract fantastic publicity for the clients he works with.

You may have noticed a heavy media presence of Torah Bright in the lead up to the Winter Olympics. Newspapers, magazines and TV. Bright was everywhere. This was another David Lyall execution, planned and organised 12 months prior to the Olympics.

If you are a sporting property, be it a brand, association or individual, and you are seeking publicity, then I highly recommend Sports Communication Australia.

It’s not hard to give someone a plug when they are the best at what they do.

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Risky Business

March 5th, 2010

It’s hard to ignore the Brendan Fevola / Lara Bingle saga. It’s been dominating the headlines this week. And with little wonder. News editors go to bed at night dreaming for stories like this one.

Some people are curious about the timing of this story, given celebrity publicist Max Markson only signed Lara Bingle a week ago. It’s ridiculous to think Markson had anything to do with this story. But the whole thing does tick a few boxes from his perspective.

Firstly it gets Bingle in the news, increasing her public profile and reinforcing her celebrity status (not that she does anything, but it doesn’t matter in this day in age, plenty of people earn a buck from simply being famous). Markson knows out of sight = out of mind.

Secondly, the story rightly portrays Bingle as the victim. The victim card is incredible powerful with the Australian public. Most people don’t have a lot of empathy for Bingle. Rightly or wrongly she is regarded as a home wrecker and a spoilt princess. This story rightly allows her the victim card and that can go a long way to repairing her image.

Thirdly, it opens up a bidding war for Bingle to tell her story, cha ching.

These are all good results for Bingle’s manager. If earning a buck is a manager’s sole goal (which often it can be) then Markson is winning, winning ugly.

Chasing the quick buck is easy. However, turning a client’s brand around to attract quality sponsors is a totally different ball game. It will be interesting to see which game manager and client decide to play moving forward.

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