Archive for the ‘Strategy’ Category

Will Tiger Woods Lose Any Sponsors Over This Latest Incident?

Tuesday, December 1st, 2009

There has been a lot of talk about whether Tiger Woods will lose any sponsors over his bizarre accident.

At the moment he won’t. And nor should he. Right now, these rumours about his personal life are just that, rumours only until proven otherwise.

In any case, its not always easy for a sponsor to walk away from a contract. They have to execute an escape clause which usually involves the athlete bringing the sponsor into disrepute.

So what are the common escape clauses in personal endorsements? Here are the major ones.

  • Being charged or convicted of a crime.
  • A positive test to drugs.
  • Breaking the laws of the sporting body (in this case the PGA).
  • Engaging in conduct that is obscene, indecent, immoral or unprofessional.
  • Doing anything that restricts the ability of the brand to promote the athlete or diminishes the commercial benefits provided to the sponsor.
  • Becoming of unsound mind therefore unable to fulfil sponsorship duties.
  • Not maintaining your elitist position in your sport eg. losing your PGA Tour card.

There are a myriad of others clauses but these are the most common in any contract.

If you know anything about legal contracts, the aim of the game is to make things so black and white in writing that there can be no dispute about a breach.

Tiger would have a strong case against any sponsor who wanted to pull the plug over this news story. There are simply too many grey areas for a sponsor to successfully argue a breach.

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.

One Golden Rule of Publicity

Thursday, October 29th, 2009

When you’re hot – STRIKE.

Athletes and celebrities have a very short time span in the scheme of things to maximise their earning potential.

In a world that moves at a staggering pace, keeping up with sport, music, fashion and entertainment news and trends becomes a game of move on or get left behind.

Consumers are very quick to latch onto something and they’ll doit with tremendous vigor (think Harry Potter and Twilight or any big sports star).

But just as consumers are quick to latch on, they’ll move on. This means when you’re in the spotlight, work it, work it, work it!!!

You would be surprised that some talent don’t get this concept. I’ve had athletes compete at Olympics and Commonwealth Games overseas, their name and image strewn across every newspaper back here in Australia. At this point in time, the best thing they can do is get their butt on a plane and come home.

If they can do that, then I can leverage their name which is already in lights. TV, radio and print will line up for me.

However, what do most athletes do? They decide they deserve a break after years of training and book a holiday directly after their major competition. Bad idea. They just missed a golden opportunity.

I totally understand the need for a break and I’ve experienced first hand how draining major events are for athletes. After competing, they just want to let their hair down, do nothing and switch off. I get this.

But if you’re an athlete that is serious about promoting your brand to attract sponsors then you’ve got to maximise this valuable window of opportunity.

Compete at Olympics, fly home for a week of media, then go holiday. It’s that simple.

It’s no good coming home a month later when news are no longer interested and everyone else has moved on.

This applies to anyone who is experiencing a flush of publicity. Milk it. Be available. Work hard. You can always rest later when you’re not so hot.

The Athlete Diary

Monday, October 26th, 2009

I had an ugly situation today when I had to pull an athlete from a major event because they had double booked and not informed me.

In most cases I would enforce the prior obligation with management, but the circumstances on this occasion didn’t allow for that. This left me frustrated and embarrassed but it also reinforced the importance of diary management.

An athlete’s personal diary impacts their professional diary.

Traditionally I would rely on the athlete to update their own diary with commitments I send them. Or I would email them the diary I manage so they could update their own diary.

This system has worked ok in the past, but I’m not in the business of being ok. I need a better solution.

Upon further thinking I would encourage athlete managers to keep a gmail account with a diary that you and your athlete have public access to. One diary. No confusion.

This system still relies heavily on the athlete but once both parties are in a good habit it should become second nature.

Sometimes we need problems in order to see new opportunities or in this case better ways of doing things.

Teamwork

Friday, October 16th, 2009

Whether you’re an athlete in a team sport, a CEO of a large company or a young entrepreneur starting a business, getting “TEAMWORK” right is critical.

The corporate world can learn a lot from the sporting world and the principles are not hard to follow.

1. You need a great captain/coach. Someone that leads by example. Someone that can make quick decisions and is willing to die by the sword. Someone that stays calm under pressure. Has confidence. Has ethics. And is a people’s person.

2. Everyone in the team must have clearly defined roles. The more specific the better. And just like footy players have hit ups, tackles and disposals, the role must be measureable. Let team members take ownership over their role and make them accountable. And when delegating tasks, be ridiculously specific.

3. Get the team to socialise outside work. You learn so much more about a person away from the office. This casual interaction has the ability to create friendships that are a bit deeper than the typical “workmate relationship”. Athletes always talk about “not letting their teammates down,” and this comes out of friendship.

4. Create a fun and comfortable work environment. Team members have to enjoy coming to work. One of the first things Wayne Bennett did when he went to the St George Illawarra Dragons, was to improve the training facilities. You want your team to be proud of their workspace and take pride in it.

5. Have a clearly defined mission statement that inspires. Every sports team has a mantra. A key set of words that inspire and reminds everyone what they’re striving for.

5. Focus on the process. Sporting teams don’t focus on a premiership. They focus on the process of what they must do each day to achieve a premiership. A salesperson could focus on $1 million in sales, or they could focus on how many phone calls and proposals they’ll need to send out to achieve that $1 million.

6. Communicate. Sporting teams are very candid in their communication. They don’t let things fester. If there is a problem, it’s discussed and solved before it divides a team. The captain/coach needs to be approachable and always have their ear to the ground.

7. Constantly review performance. Sporting teams regularly meet for video analysis to learn from their mistakes and improve performance. They are constantly striving to get better. After a project or business deal, its worth asking “how could we have done that better or what worked and what didn’t.” Don’t go through the motions. Stop once and a while and look at the big picture.

7. Encourage mentoring.
Senior athletes love taking younger teammates under the wing. Don’t wait for this to naturally happen. Appoint your senior people to someone. This proactive move works at Australian Olympic team level so it should work for you.

6. Celebrate success.
You don’t need to swap shirts, spray champagne and shout a song to the beat of a wheelie bin, but you’ve got to enjoy the wins. If you can’t do this then really what is the point? Celebrating success also has the added benefit of bringing the team closer together so have fun.

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No

Wednesday, October 14th, 2009

If I had a dollar for every time I said “no” I would be a billionaire. I think any sports manager can relate to this.

Athletes receive a staggering number of requests and the reality is only 5-10% of those get actioned.

If you look at an athlete’s day to day priorities you would find that 80% of their time is dedicated to training and competition (that 80% also includes getting sufficient rest, massage, physio and maintaining a healthy diet). The remaining 20% is dedicated to off field duties with their club which includes sponsor and media commitments. It also includes keeping personal sponsors happy and finding time for family and other personal commitments.

So you can begin to understand why managers are reluctant to stack additional opportunities on an athlete. Our duty is to make life as seamless as possible. Our first priority is selling the client to the marketplace, servicing current sponsors, managing the media requests and looking after the athlete’s dedicated charity if they have one. Anything outside these areas is dealt with brutally.

Athletes don’t hear about three quarters of the requests they receive. That’s why they employ managers. To filter requests and only bring to the table opportunities that are commercially viable or that make sense with respect to their diary and other commitments.

So when an athlete manager turns down your request. It’s not personal. It’s just business.

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Make Your Sponsorship Proposal Stand Out

Tuesday, October 13th, 2009

What is one major difference between the two sponsorship proposals below.

- AFL pitching to Company X

- Individual athlete manager pitching to Company X

The answer: One has extensive market research about their product, the other does not.

When the AFL, NRL or FFA pitches for sponsorship, they have qualitative and quantitative market research to present. This includes demographics about their key customers and what their brand represents in the marketplace among others things. Most importantly, they have the data to back it up.

Athlete managers on the other hand don’t have any solid market research to present. They can guesswork the brand values of their athlete but they don’t have the kind of data that makes a proposal compelling.

Sponsors are very strategic in their approach. They know their brand inside and out. They know exactly who their target market is. They know demographics. They know exactly what their brand represents to their customers. They know the buying behaviour and what influences their target market. They know what kind of marketing and advertising works and why. And they expect you to have similar level of understanding about the product you’re selling.

Athlete managers never include this kind of data in their proposals. So the managers that do will stand head and shoulders above everyone else.

Now market research doesn’t need to be peace and war and it doesn’t have to be expensive. Most sports will give you this information for free. So if you manage a rugby union player, you could ask the ARU for some market research. (Tell them you’re doing a uni assignment or you’re interested in sponsorship opportunities).

This will give you some hard data about your athlete’s target market which you can present to potential sponsors. They’ll be shocked but delighted and it may just get your proposal over the line.

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The Fame Game

Thursday, October 8th, 2009

Most people fall into the fame game unexpectedly. Often they have a special talent that puts them in the spotlight whether it be in sports, TV, music or film.

I don’t know many people who actively pursue a career for fame alone. If they did then they would never make it. Fame is often a by-product of success or in some cases a necessity to achieve success.

Having worked with my fair share of ‘famous’ people I can tell you that most are incredibly uncomfortable with the fame game. Sure, they enjoy some of the perks but after experiencing the dizzy heights of fame, most would take the money and leave out the fame if given the choice.

The biggest downside to the fame game is that there is no off and on button. You can’t switch it off on a bad day. When times are good and the press positive, famous people will happily stand in the spotlight and do star jumps. But come tough times and negative press, the same people want to turn the light off and curl into a ball.

This inability to turn the light off still troubles the most experienced famous people, you only have to look at the Greg Norman / Chris Evert story. Greg has never had a problem using his fame to build a successful business empire and was more than happy to tell the world about his new relationship (picture Greg under a spotlight doing star jumps) but then it broke down. Suddenly a relationship that was everyone’s business, is now no ones business according to Greg. The game doesn’t work that way.

The point I’m trying to make is this. Whether you’re already famous or you’re chasing a career with the potential to be famous, you gotta realise that the light stays on through the good, bad and the downright ugly. If you can accept this as reality and you are comfortable to wear the consequences in the tough times then go ahead and turn that light on.

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Sponsorship Step by Step

Monday, September 28th, 2009

A sponsorship deal rarely happens overnight.

Depending on the deal, the process from start to finish can take anywhere up to 18 months!

Here is a snapshot of what goes down.

1. Athlete manager draws up a list of brands to target.

2. Manager cold calls the key person or decision maker from each brand. Attempts to establish a relationship and screen for sponsorship opportunities in relation to current budget and direction of the brand. This typically produces one of three responses.

A) Yes, please send your proposal and we’ll have a look at it.
B) Budget or other sponsorships prevent us doing business right now, but we are happy to consider down the track / next financial year.
C) No, we are not interested now or in the future.

The cold call saves a manager wasting valuable time on a proposal that never had a fighting chance. Alternatively it can strengthen a manager’s follow up email or proposal. Either way it produces a result.

3. Next step is the proposal and just like a job resume, this is painstakingly targeted to the specific brand. Research and due diligence is critical as you only get one shot at the proposal.

4. The waiting game. Once a proposal is submitted, an athlete manager must have patience. The bigger the brand, the longer the decision. Financial budgets, KPI reviews, office politics, legal’s, you name it, anything can drag out the process.

5. Negotiation. Assuming they are interested, this stage includes face to face meetings, phone calls and back and forth emails. This can take weeks or even months. At some stage a contract will be drawn up, either by the brand or the athlete manager. Now legals are involved and that means more to-ing and fro-ing!!!

6. Exchange contracts. It aint over until both parties sign the contracts – never assume a deal is done until this happens.

Steps 1, 2, 3 can be achieved in good time. Whereas steps 4, 5, 6 can take a lot longer.

I hope this gives athletes a good understanding of the steps involved in the sponsorship process and why some deals take forever.

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Emotions Are Strong

Friday, September 25th, 2009

Rarely does a brand make a commercial decision to sponsor an athlete or event without an emotional trigger.

Have you ever heard of a company sponsoring a golf event purely because the CEO is a passionate golfer? It happens.

Some sponsorships don’t make 100% commercial sense, yet they exist. And they exist because the sponsorship manager or CEO has an emotional tie-in with the sponsorship property. This emotional tie-in has the ability to overpower reason and logic.

When you’re pitching sponsorship, it needs to make sense but making sense alone isn’t enough for a company to sign the dotted line. You need to evoke emotion. You want the company to invest both passion and dollars.

Putting things aside like branding, try to think about the emotional reasons why a company would want to partner with you. Pride, zest, enthrallment, discovery, courage, respect, fun, compassion, inspiration, confidence etc. And then tie these in with the property you’re selling.

And remember you’re typically selling your pitch to one key decision maker. So make it personal-able. Even if that one person has to get approval from above, you need to hook them first so they’ll fight for your pitch internally. And you do that by appealing to their emotions.

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