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Less Is More

Tuesday, 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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Posted in AFL, Cricket, Football, Rugby, Rugby League, Sponsorship, Strategy | 8 Comments »

Retrospect

Tuesday, November 24th, 2009

Australian cricketer Mitchell Johnson has revealed that personal dramas led to his Ashes meltdown.

At the time, I knew this was the case. Having worked with elite athletes I know that personal issues affect performance more than the public can ever imagine. Especially when those personal issues are played out in the media.

Some athletes can block it out. Some simply cannot. For Johnson, this was the first time his personal life was put in the spotlight. Not only that, he was in the middle of an Ashes Series in England where the tabloids a ruthless and the crowds spiteful. He was always going to struggle.

As a sports manager the best thing you can do for an athlete in this situation, is minimise the longevity of the issue in the media. You need to put the issue to rest and avoid anything that may prolong debate. And I don’t mean hiding under the covers. You need to give the media something to chew. It can be as simple as saying “this is the situation or facts” and “this is my position” and “this is how I’m going to handle it” and “I don’t have anything else to say until I take the next step.”

The media will respect this and treat the athlete a lot better than if they were to hide in the corner.

Minimising the longevity of the issue helps but it’s an external solution to what is an internal issue for the athlete. That’s where mentors come in.

Having one’s personal life thrown into the spotlight is nothing new. There are millions of people who have gone through the same experience. People who have survived and come out the other side. Your job as a manager is to find these people and ask one to speak with your athlete. A simple phonecall can make the world of difference.

When faced with a personal problem, people get so focussed on themselves that they feel like nobody can relate to them and what they are going through. Wrong. There are people out who have gone through the exact same thing and they are only too happy to offer their advice.

If you look at another cricketer Michael Clarke, he has Shane Warne as a mentor. Warne has dealt with fame for a long time and can duly offer sound advice to a younger Clarke in that area. A manager can only wear so many hats, sometimes a manager must seek mentors for an athlete. People that can better relate to what an athlete is going through.

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Posted in Client Relationship, Communication, Cricket, Media, Strategy | No Comments »

Sports a Product & Products Change

Wednesday, September 23rd, 2009

Yesterday’s Daily Telegraph reported the poor TV ratings for last Saturday’s Bledisloe Cup between Australia and New Zealand.

Is anyone really surprised?

I mean, here we have a product that refuses to change with the times. My biggest problem is this – rugby heads forget that their game is a PRODUCT. A product that competes in the ‘entertainment space’ for your money and mine.

Rugby is no different to a product you buy in the supermarket. I don’t care how strong the brand is, how long it’s been around, how much tradition it has behind it or how many loyal customers it has. If that product doesn’t adapt and evolve over time then its competition will eat it up.

Can you imagine if Nokia stopped developing their technology? What if after building their first handset they chose to sit back for the next 50 years with the same mobile phone? Oh but that’s like comparing apples to oranges you say, or is it? Nokia would have died a quick death due to the nature of technology and the type of product but let’s be honest, rugby isn’t that much different, it’s just dying a much slower death.

Unlike most products and services, sports have the luxury of moving at a much slower pace when it comes to developing their product. Massive overhauls are not required. Sports can survive with just a few subtle changes here and there.

Rugby League is constantly reviewing and tweaking its game and cricket has embraced 20/20 so it appears some sports get it. Rugby doesn’t. It has too big an ego to look itself in the mirror and admit it has a problem.

Shame, because consumers deserve better. They deserve to buy into a product that constantly strives to be the best.

PS. Thanks to everyone who filled out the brief survey. Appreciate your responses.

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Posted in Cricket, Rugby, Rugby League | No Comments »

House-zat!

Friday, September 11th, 2009

On 16 March, 2009 I blogged about E- Sponsorship.

Harvey Norman, Ford, VB, Toyota and Coca Cola are all big sponsors of Australian sport, but what about online businesses such as Carsales.com, Ebay, RealEstate.Com, Stayz.com and CareerOne, why aren’t they big sponsors of Australian sport?

In the blog I suggested more sports industry people should pitch for sponsorship to these online companies (who I predicted would thrive during the recent economic downturn compared to traditional companies).

So it was with great delight to read today, that RealEstate.com have signed camadamgilchrist_narrowweb__300x52901Australian sporting heroes, cricketer Adam Gilchrist and surfer Layne Beachley as ambassadors. You can read more about the campaign here.

I’m not surprised these athletes have been chosen for the campaign. I’ve said it before and I’ll say it again, don’t be afraid to invest in athletes nearing the end of their careers. It takes years to build a credible brand and that credibility doesn’t disappear overnight.

Who says I don’t give you good advice once in a while :)

Posted in Cricket, Sponsorship, Strategy, Surfing, advertising | No Comments »

Robots with Personalities

Monday, August 17th, 2009

Boxing, more so than other sports, relies on the personality of its athletes. It’s the lifeblood of the fight game. Ask any promoter.

Two guys beating each other in the ring is entertaining, but if they both have great personalities, it’s so much more interesting.

I think the same principle can be applied to other sports. And I think it’s important we preserve that trait. Let’s not forget, sport is entertainment.

I remember watching, jeering and cheering the likes of John McEnroe, Jimmy Conners, Boris Becker and Goran Ivanisevic. Not only were they very talented tennis players but they had personalities that brought fans through the turnstiles. Cricket had (among others) Ian Botham, Viv Richards, Doug Walters and more recently Shane Warne. Rugby League prides itself on the characters in its game and promotes them to the tilt (a big reason why rugby league enjoys free to air coverage over Super 14 rugby).

In this day and age of professionalism it’s common for sporting academies, clubs and athlete managers to suck the personality right out of an athlete. With strict behaviour guidelines, the pressure of being a role model and big sponsors to protect, it’s easy to produce robots.

But what people don’t understand is robots can be personalities too. You don’t have to break the rules, swear and be disrespectful to have a personality that attracts fanfare.

NRL player Wendell Sailor is a good example of what I’m talking about. He is a great role model but he is also a big personality. Just shows it’s possible to be both. That’s what sponsors want to see more of, robots with personalities.

wall-e

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Posted in Client Relationship, Communication, Cricket, Media, Rugby League, Sponsorship, Strategy, Tennis | No Comments »

The Post Game Interview

Wednesday, July 8th, 2009

Having a camera shoved in your face post match can be an awkward situation for even the most experienced sportspeople.

Often your mind is somewhere else. You’re not only exhausted but you’re probably self conscious about how you look having just stepped out of the heat of the battle. On top of that you might be angry, upset or crazy excited depending on the sporting result.

All these elements make for interesting TV viewing. Some interviews run smoothly, while others resemble deer in the headlights stuff. Let’s look at the do’s and don’ts when you next find yourself in the limelight post match.

Do

  • Be available. Don’t run away. This is a good chance to promote you!
  • Prepare. Think of two positive statements before the match. One about your team and one about yourself (win or lose). This will get you off and running with confidence.
  • Look the reporter in the eyes as much as possible. This makes you trustworthy to the viewers at home.
  • Stand with your hands on your hips. This helps you avoid fidgeting and gives you an air of confidence / authority.
  • Project your voice.
  • Speak slowly.

Don’t

  • Take out your frustrations on the reporter. It’s not personal.
  • Sip a water bottle during the interview.
  • Fidget. This includes playing with your hair, touching your face, ripping tape off your arm etc.
  • Swear.
  • Mumble.
  • Dart your eyes everywhere but the reporter.
  • Say hi to your mum and all your relatives. Tell them when you get home. No one cares.
  • Be negative. This includes blaming others / making excuses.

There is nothing more to it really. You have 30 seconds, maybe more to be at your best in front of camera. Make it count.

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Posted in Communication, Cricket, Football, Media, Rugby League, golf | No Comments »

Player Payment Systems for Elite Sport

Monday, June 15th, 2009

Sport & Sponsorship News have reported that Cricket Australia have just announced a new player payment system aimed at balancing the workload of players and at the same time encouraging players to participate in sponsor projects by paying them commercial rates.

Under the new scheme, players will be offered separate playing and marketing contracts. The playing contract will be based on their on-field performance, while the marketing contract will be based on their “marketability” as assessed annually by independent consultants.

Players will be grouped into different tiers and earn points each time they participate in commercial activities such as appearances, TVC’s etc.

At the end of each year, the players will be rewarded in line with their contribution to the ‘marketing contract’.

This is a smart strategy.

It offers players flexibility and it gives them a better understanding of their value to team sponsors and rewards those who put in the work.

It also encourages players to improve their marketability – a win win for everyone.

Nice work CA.

Posted in Cricket, Sponsorship | No Comments »

Can I have your Autograph?

Wednesday, June 3rd, 2009

I think we all have a story of getting disappointed by a famous sportsperson or celebrity when we were young.

You might have approached your sporting idol for an autograph or photo, only to be declined?

My story (years ago) involved a famous Australian cricketer at a Test match at the SCG. I was sitting in the members stand and the cricketer, who was recently retired, was about 10 rows away. I was a big fan. And having grown up in the country, I rarely saw my idols in the flesh. So I didn’t want to waste this opportunity, I just had to get an autograph.

With the guidance of my dad, I waited until the first drinks break to approach the cricketer, pen and paper in hand. “Can’t you see I’m watching the game,” was the reply to my request. “Come back at lunch.”

I was extremely hurt and embarrassed, but I mustered up the strength to try again at lunch. I let the cricketer eat lunch, have a beer and talk to his mates. Just before the players were due to come back out on the field, I approached again. Rejected.

I was no longer a fan after that.

In this case, the cricketer had no excuse not to sign an autograph. However, I also understand the pressures and expectations of our sporting heroes, and meeting the demands from fans is not always possible.

Now working in athlete management, I get to experience this first hand when I’m out in public with a high profile person. I see the looks and finger pointing, the nervous kids wanting to approach, or the guy who wants a cool facebook photo.

Where possible, I encourage my athletes to interact with the fans. But unfortunately there will always be someone you disappoint. And under my watch, it’s never on purpose.

If an athlete can’t fulfill a fan request in public, then I do my best to protect the athlete’s reputation. I play the bad guy.

If for whatever reason, an athlete has to leave a function early, turn down a photo, deny an autograph, it’s because of me (or at least that’s how it’s perceived by the fans). I do whatever it takes to divert their attention to the mean manager.

Hate me, not the athlete.

I’m not sure if this strategy helps the athlete totally save face, but for me it’s the best solution to an awkward problem.

Posted in Cricket, Strategy | No Comments »

Sponsoring a League/Event vs. an Individual

Wednesday, May 27th, 2009

Which is more effective? Sponsoring a league, club and/or event, or sponsoring an individual athlete?

It depends on who you talk to. Nike will tell you that individual sponsorship has built their brand. Meanwhile, Harvery Norman would argue they have benefited enormously from their sponsorship of Rugby League’s State of Origin series, with a spike in sales to prove it.

What is good for one sponsor isn’t always best for another sponsor. There are a million things to consider.

Both strategies have their own pros and cons. Sponsoring a league or event offers guaranteed and consistent coverage, more marketing and advertising resources, and some protection from competing brands. Meanwhile, individual sponsors are more at risk from red tape, inconsistent exposure, injury or bad behaviour.

However, don’t underestimate the power of individual sponsorship. When you think Shane Warne, you immediately think of Nike or even Advanced Hair. But can you name the Australian Cricket team’s sponsors during Warne’s playing days? Probably not.

On the flip side, Toyota has a great recall for it’s sponsorship of the AFL.

Of course, you can always do both. In fact, most players’ associations push for this strategy. When a sponsor signs with a league or event, they are often forced to spread the budget to include 2-3 ambassadors within that team or sport.

This negates the risk of being trumped by one athlete. A good example is adidas. They were an official worldwide partner of the 2008 Beijing Olympic Games. But they were blown away in the pool by Speedo sponsored Michael Phelps.

If you’re thinking about a league or event sponsorship, identify the standout athletes within that league or event. And ask yourself, do they have the star potential to overshadow your brand with their own endorsements? If so, you may want to re-think your strategy.

Posted in Cricket, Olympics, Rugby League, Sponsorship, Strategy | No Comments »

10 Things That Make an Australian Athlete Marketable?

Wednesday, May 6th, 2009

1. Sport – a national sport with free to air coverage and a global presence (eg. tennis, golf, cricket, football, swimming). Rugby League players for example don’t command big sponsorships because they appeal primarily to Sydney and Brisbane audiences only. That doesn’t mean they can’t earn good money but they’ll never be Australia’s most marketable athlete. Think Ricky Ponting

2. Winner – Australians love a winner. And the more fierce the competition (underdog status) the better. An athlete can have every quality in the book but if they aren’t winning then forget it. How you win is also an important factor. Is the athlete sinking 20ft putts like Tiger Woods to win, taking 5 wickets on the last day of Test Match like Shane Warne or breaking world records? Think Ian Thorpe

3. Good Looks – This is not an absolute must but don’t underestimate the power of good looks. This attribute appeals strongly to fans not to mention brands looking to invest in athletes. Why do you think movies use good looking actors and actresses? Sometimes an athlete can build a career on good looks alone but this will be short lived if you aren’t doing the point above. Think Stephanie Rice.

4. Media Skills – does the athlete present well in front of the camera? How do they stand, do they make strong eye contact, do they project their voice with clarity? Do they understand and respect the media’s role in their sport? And do they do it all with a warm personality and a smile on their face? Think Lucas Neill.

5. Clean Image – are they someone you could take home to meet the parents? Do they demonstrate strong values? Avoiding drinking, swearing or smoking is a winning combination here. Think Adam Gilchrist.

6. Gracious – everyone likes a winner but Australians don’t react well to arrogance or big headiness. You only have to look at the recent criticism of the Australian Cricket team. Personally I like the way they play but it seems the masses don’t so if you want to avoid tall poppy syndrome, be super humble. Think Pat Rafter.

7. Great with Fans – fans pay the athletes wages. So it makes sense the public respond well to athletes who really appreciate their fans. The most marketable athletes don’t avoid their fans, they embrace them and do their best to connect with them on different levels. It’s all about giving back to the people who support them. Think Brett Lee.

8. Integrity – athletes who stand up for what they believe in and who are consistent with their image gain respect from the public. A good example is an athlete who chooses only to endorse brands and products they really believe in. Think Cadel Evans.

9. Charitable – if you’re an athlete earning big money doing something you love then the public expect you to give back to the community. It can’t be all sponsor appearances and paid gigs, people love when an athlete uses their celebrity and wealth to benefit a greater cause. Think Glen McGrath.

10. The X-Factor – or originality / uniqueness. This can make or break some athletes. It’s easy to be a clone but being unique makes you stand out. Having a distinctive presence, charm or edge to your personality is incredibly powerful. Think Greg Norman.

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Posted in Cricket, Football, Media, Sponsorship, Tennis | 7 Comments »

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