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Archive for the ‘Sponsorship’ Category

The Green Eyed Monster

Monday, July 13th, 2009

If you’re a manager with multiple clients, chances are you have a few green eyed monsters in your closet.

Athletes are naturally competitive. And believe me, they keep an eye on the other athletes you manage. For example, they know when someone else you manage signs an endorsement.

The thing is athletes rarely confront you about it. They prefer to internally rationalise the reasons why they missed out on a particular deal but deep down they question whether you’re playing favourites.

Sport managers don’t play favourites, for the simple reason that sponsors don’t give us a chance to play favourites. Sponsors are very picky and choosy. If they come to us, they come with one athlete in mind for very specific reasons.

Likewise, we carefully select athletes when pitching for sponsorship. A lot of research goes into presenting to a brand. It’s not a hit and hope strategy. We don’t compromise our chances of doing business with a sponsor by recommending an athlete with no synergy or fit for that brand.

Whilst I can’t speak for every manager, this is how I operate and athletes need to understand this.

I would urge green eyed monsters to talk to their managers about their concerns. “Why did I miss out on that deal?” “Was my hat in the ring?” If not, why?

Athletes will soon understand the complexities of how sponsors make their decisions and they’ll begin to realise it’s never personal. It’s business. And business is tough.

Posted in Client Relationship, Communication, Sponsorship, Strategy | No Comments »

Seeking Representation?

Friday, July 10th, 2009

Established sport management agencies get lots of interest from athletes wanting representation.

Nothing wrong with that. However, 99% do not tick enough boxes to be seriously considered for management.

In a nutshell, agencies only take on athletes who are well established or have great earning potential.

What does ‘well established’ mean? It means that from day one, the agency should be able to take you to market. You already possess a solid media profile, maybe you compete in a mainstream sport with significant media attention, the thing is, you already have a bankable brand the agency can sell.

The other option is to have ‘great earning potential’. Maybe not now, but definitely in the mid to long term. It’s risk for reward. If the agency are to invest a lot of time and energy in you, then they need to see significant upside down the track.

If you’re not sure what boxes to tick before approaching management agencies, then refer to “10 Things That Make an Australian Athlete Marketable”.

Be realistic. The last thing an agency wants to do is waste your time and give you false expectations. Add to that, most agencies have an obligation to their well established clients who demand attention and servicing. It’s a workload thing as much as a risk verse reward proposition.

Posted in Sponsorship | No Comments »

Broaden Your Appeal

Monday, July 6th, 2009

Just like products, athletes have target markets. A group of people or demographic they appeal to.

This is the first thing sponsors look at when deciding on sponsorship. So it would make sense that the broader appeal you have, or the more market segments you can cross, the easier it is to pick up sponsorship? Yep. Hold that thought.

Now, most athletes can only accommodate up to half a dozen big blue chip sponsors and maybe a few extra lower level sponsors or equipment sponsors. Anymore than that, is pushing it. There is only so much time for work, rest and play in the world of an athlete.

So if a high profile athlete is limited to six major sponsors, it would make sense that those sponsors have differing target markets right? This gives the athlete exposure in more markets. Broader appeal = more powerful brand = longevity in the sponsorship game.

If we look at Tiger Woods’ major sponsors, you will notice they broaden his appeal in different market segments. Guys like Accenture, AT&T, EA Sports, Gatorade, Gillette, Upper Deck, Laser Eye Centres, Nike and TAG Heuer cross many markets. Golfers, gamers, kids, middle age, high income earners, families, etc etc.

Before you run off and sign 10 sponsors in different industries. Know that you can’t be everything to everyone. Although Tiger’s appeal is broad, his management haven’t steered away from his own brand. They realise there is little reward in appealing to a big female audience. This would be a waste of time when they already have a pot of gold with Tiger’s core demographic of kids and white collar middle age males.

The trick is to work on your athlete’s brand first and then look at the different markets you can penetrate for maximum exposure with that brand.

Tags: Accenture, AT&T, EA Sports, Gatorade, Gillette, Nike, TAG Heuer, Tiger Woods, Upper Deck
Posted in Sponsorship, Strategy, golf | No Comments »

Car Ambassadors

Friday, June 26th, 2009

Car advertising is huge.

Pick up any magazine and you’ll notice full page print ads. Watch TV and you’ll see big budget commercials.

But how much of this advertising features celebrity ambassadors? If “I can’t think of any” is your response than you’re spot on.

There’s a reason why car brands don’t use celebrities in above the line advertising. Market research has shown that celebrity car ambassadors don’t resonate with consumers.

I’m not saying that ambassadors can’t add value by the way of consumer promotions, PR and other below the line activities. I’m saying when it comes to the sales pitch, Joe Blow couldn’t give a stuff about the famous face that drives the car.

Car consumers are savvy and their buying behaviour is extremely rational. They look for speed, comfort, control, size, safety, luxury, affordability etc. When a car brand is paying thousands of dollars for a TV spot, they don’t want to clutter these key messages with a celebrity – this is a distraction for the consumer.

(Seeing a well paid athlete with a free car, doesn’t exactly fill consumers with warm and fuzzy feelings either).

The fact is, car ambassadors are best used for strengthening relationships with trade partners, creating consumer brand experiences, increasing brand awareness, demonstrating corporate social responsibility, engaging staff and creating PR opportunities.

Managers should concentrate on these things when pitching for a car deal. Oh and make sure the car sponsorship makes sense!

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Tags: advertising, car, celebrity
Posted in Sponsorship, Strategy, advertising | No Comments »

BOB THE BUILDER

Monday, June 22nd, 2009

Managing a young athlete’s career from start to finish is a bit like building a house.

First thing you need is a blue print. An end vision of what you want to achieve with the athlete.

The sad thing is, most managers don’t have a blue print. They make things up as they go along.

The next you thing you need is a solid foundation that will protect the house from all kinds of weather.

I’m talking about good morals / personal values. Not always easy to teach but important if you want to build a great house.

The next stage is to build the house in steps. E.g. you don’t build the roof without first building the walls.

The ‘walls’ can be sporting results or growing the media profile of the athlete. This comes before the big endorsements.

Next thing you need to do is surround yourself with specialised handyman. A painter is not a tiler. A landscaper can’t do the plumbing.

You need to align your athlete with specialist people such as a sports lawyer, a financial planner etc. If I’m an athlete, I’d much rather have 3-4 specialists around me then one manager wearing multiple hats. This allows my manager to solely concentrate on one thing – bringing in the money.

Lastly, you need to communicate effectively with everyone to get the house built on time and within budget.

This is much easier if you have a blue print. Show the athlete this. Explain your strategy. Keep them updated at every step along the way.

At the end you will have a magnificent house that is worth a lot of money.

bobthebuilder

Posted in Client Relationship, Media, Sponsorship, Strategy | 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 »

Servicing Sponsorship is 2-Way

Wednesday, June 10th, 2009

1) Athlete manager pitches for sponsorship.

2) Sponsor signs a contract with exclusive benefits and rights.

3) Athlete manager sits back and waits for sponsor to leverage the relationship.

4) Sponsor lacks ideas and becomes frustrated with the availability / restrictions around the sponsorship.

5) The athlete manager continues a re-active communication style with the sponsor. No to this request. Yes to this.

6) The only time the athlete manager initiates contact with the sponsor is when the athlete needs product or a payment is due.

7) Contract expires. Sponsor walks away. Athlete is dumbfounded. “But I did everything they asked of me”?

The problem with the above scenario is the lack of communication between the athlete manager and the sponsor. Or more specifically the lack of initiative by the athlete manager.

Traditionally, it’s not the job of athlete managers to come up with leveraging ideas. But that’s not an excuse to sit on your hands.

Athlete managers should be calling sponsors and giving them updates on the athlete’s diary, availability and event scheduling. They should be telling them about current promotions with other sponsors. They should notify the sponsor of any public appearances or media the athlete is doing etc.

This type of communication engages the sponsor and leaves them no excuse not to activate the sponsorship.

It will also differentiate you from the other athlete managers that sponsor deals with.

You’ve given them plenty of opportunity to find ROI. And at the end of the contract, the sponsor has little excuse to walk away.

After all, we all know that it’s much cheaper to retain sponsor’s than find new ones.

Tags: athlete manager, Sponsorship
Posted in Client Relationship, Communication, Sponsorship, Strategy | No Comments »

Deadwood

Friday, June 5th, 2009

Before the global credit crunch, you had a lot of companies with multiple sponsorships and big budgets to leverage these sponsorships.

Budgets have since tightened and that means every single sponsorship has been heavily scrutinised.

A lot of sponsors have grouped their sponsorships into two distinct categories:

1) Weather the storm – these sponsorships have long term potential and are important to the overall brand strategy. Leveraging budgets have been scaled back but there is still plenty of activity happening around the sponsorship.

2) Deadwood – these sponsorships are not being leveraged. ‘Leverage’ money is instead going to the category above. The sponsor has decided to cut their losses and wait for the contract to expire.

Have a think about your current sponsors. Are they still leveraging the relationship with you (be it on a smaller scale), or are they surprisingly quiet?

If their too quiet, be worried

Tags: Sponsorship
Posted in Sponsorship, 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 »

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