The Sports Marketing Blog

” Hendrick Motorsports announced Friday that Dale Earnhardt Jr. will not bring the “King of Beers” with him when he drives for the team next season. Hendrick did not say who will be Earnhardt’s primary sponsor instead of Budweiser, which Earnhardt has driven for since he first entered NASCAR nearly a decade ago.”

Citing prior sponsorship arrangements and deciding to uphold them, Hendrick Motorsports and Dale Earnhardt Jr have not surprisingly parted ways with Budweiser as the primary sponsor of Earnhardt’s car. ESPN has been reporting rumors that Pepsico is the front runner to take the lead sponsorship role of Earnhardt’s new car with perhaps a Mountain Dew look to it. This would be huge for Pepsico in reviving its brand image as a soft drink provider as it recently lost out big in the bid for Vitamin Water as Coca Cola bought the company.

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“French luxury goods giant Louis Vuitton announced Friday it will no longer sponsor the America’s Cup, citing concerns the sailing event has become too commercial.”

The oldest competition in international sports is facing some sponsorship problems as its new rules are being questioned by many sponsors including Louis Vuitton who has departed as a sponsor for now saying that the rules have too much of a ‘commercial’ appeal to them and fear that the competition will face problems attracting entrants.

It seems that Louis Vuitton and other sponsors are becoming concerned that the cup is becoming another over-capitalist marketing scenario similar to that of Nascar’s. This begs the question how much signage/advertising is too much? Nascar does have a lot of success selling lots of advertising space but their cars resemble a clutter of messages which are more likely to confuse the average consumer/viewer than anything. I believe this is what embodies Louis Vuitton’s fears and what has forced them to withdraw sponsorship because the value of the race and their image may depreciate if the race were to become too commercial.

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If anyone tuned in to the NBA playoffs over the course of the last month on TBS or TNT (I forget which at the moment) they were sure to notice that Dodge had placed a considerable amount of their advertising, sponsorship, and marketing efforts into it. After every commercial break, it was “and brought to you by Dodge.” That or you watched the commercial where the engineer has a bunch of brand new Dodge’s Avenger in a test room and somehow manages to perform his own rendition of “Smoke on The Water,” with their engines (video below).

The NBA playoffs were quite popular this year until the finals (ratings were record lows supposedly), but that was not the only form of advertising or product placement that Dodge devoted a serious amount of their budget to. Previews for the Fantastic Four were shown everywhere and at the end it was made of special note that their flying aircraft (Fantasticar) was take a guess… a Dodge!!!

And believe it or not that’s not all. I got to watch a couple episodes of the overwhelmingly popular TV series, The Shield on FX this past season and noticed that Dodge had also cleverly done some additional product placement by making Vic Mackey’s cruiser a Dodge Charger and one of his fellow officers also was always driving a Dodge Pick-up Truck. Very, very smart moves by the Dodge corporation.

Finally, Dodge recently over the last year or so hit paydirt with their new Charger and police forces everywhere. Many departments, state and local, are now switching over from their Ford Crown Victorias to the new Dodge Charger. In my area alone, I know that the New Hampshire State Police and Highway Patrol are in the process of converting their entire fleet to these Chargers. Even the University of New Hampshire Campus Police Department got one… why they need our tuition money to buy those guys a brand new Dodge Charger is beyond me though.

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As our world approaches a more global economy context and we become more connected with people halfway around the planet more than ever, the business opportunities in sports sponsorships also in turn become more available. The emergence of Dice K has brought about an abundant amount of sponsorship opportunities where baseball stadiums are selling advertising space to Japanese companies during games in which Dice K pitches. These specific games are actually televised to the Japanese audience making the investment feasible.

Sponsorships are a way for companies to bring attention to their brand in a favorable light such as in sports. Winning, champions, records, and excitement are some of the ideals associated with sports which is hence why some companies such as Coca-Cola spend billions on advertising in sports through sponsorships to associate themselves with their customers as a winning brand.

I personally cannot wait to see what the Olympics in Bejing bring in terms of sports sponsorships. How will American companies not only advertise to American viewers but to the Chinese audience as well? Will they get their messages right? How will they advertise these messages? Finally, my biggest curiosity lies in how will they take advantage of drawing more brand awareness to sponsors through the web throughout the entirety of the event. I’m very interested to see if they take advantage of providing live feeds of certain events and using these as additional avenues of revenue and sponsorship since not all of the events can be viewed live at the same time nor followed as scheduled in certain time zones. As soon as I find some news on this, I will post it.

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So I’ve had an interesting day to say the least. I graduated from both universities today and attended my first one’s graduation ceremony (UNH). Former Presidents Bush and Clinton were our guest speakers. By some luck, I was seated right next to the row they would walk down and I got to shake President Bush’s hand… amazing to say the least because I never have shaken anyone’s hand that is that powerful and doubt I will get the chance to do the same ever again.

As I’ve mentioned before, I often check my viewer’s backgrounds through various tracking tools and widgets and stumbled upon most recently the founder and operator of the one and only website known as Ball Hype. It’s a similar website along the lines of Yard Barker. Both of the websites essentially encourage users to post, comment, and rate various sports stories. I find the concept pretty interesting because their success is solely dependent on user generated content. The only clear difference is the organization, distribution, and display of that content.

However, I find Ball Hype to be not only more easy on the eyes, but fairly more organized and a lot more to offer. Both sites offer user generated sporting news, blogger tools, rating tools, sports scores, etc. Ball Hype takes things a step further encouraging the concept of online social networks by allowing these fans to create communities or join them within their site. They also have a neat sports blog ranking system (which I am sadly nowhere on… yet). Essentially they have done an amazing job of differentiating themselves from other sports fan sites which is what priority numero uno was.

Also, it’s made me take a step back and consider what the hell should I do with mine to try and generate more traffic and a more unique presence on the web… IE what the #$@% is my niche. Am I going to be some random undergrad (well former undergrad now) who blogs about random sports marketing topics, related marketing material, web 2.o and social networking, or develop something further to aid other students in achieving their sports industry dreams. Nearly 50% of my hits are from searches for “How to find a job in sports marketing” or something along those lines. The next largest majority are searches for Vitamin Water commercials. So unless I want to become a non-paid promoter for Vitamin Water, I need to rethink and regroup on what exactly the goal of this website/blog is/will be.

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Due to finals and a plethora of other obligations I have not been able to dedicate any time to this blog over the last week and a half. As a result my rankings on yahoo and google’s search engines have dropped significantly. Well, I’m back!

Anyways, I have been seeing a lot of news recently about the future of certain mediums and how they will either become obsolete or somehow integrated into the broad scheme of the internet. Newspapers are perhaps the most discussed concerning this. I forget where I read it, but the general consensus seems to be that eventually newspapers will move completely online. I agree with this, but I’m sure there is quite a bit of resistance amongst editors and owners of various newspapers. It seems inevitable though. The question is how will they be able to operate or continue to have that level of earnings that they were able to achieve in physical form. This is why many analysts believe that internet advertising will explode over the next decade and they are probably banking on the conversion of newspapers from physical form to being based solely on the internet. The Wall Street Journal and New York Times are good examples of this as they have not only began this process and embraced Web 2.0 and its opportunities by engaging in podcasts, but also charge subscription fees.

Every newspaper is not going to be able to charge subscription fees as long as there is free information available through general news sites such as msnbc and yahoo. The longer they delay, and the less well-known of brand they are, the harder the transition to the web will be as a paid service. Therefore, I’m going to predict that in order to be successful not only as an online paid subscription newspaper, but as a n0n-major brand, these smaller newspapers are going to have to position themselves as niche-brand news providers. This means that they will not be able to focus on the broad scale of news as NY Times or the Boston Globe does, but focus their efforts into a section of that paper, such as Books, Arts, or Sailing in the Bay Area. A good example of successfully doing this in the context of the sports industry are such sites as ESPN’s, The Sporting News, and The Sports Business Journal. They were not necessarily newspapers but they have definitely positioned themselves successfully on the internet in terms of generating traffic, interest, awareness, and revenue through subscriptions as niche news/interest brands.

The real question is will sites such as Yahoo, MSNBC, and CNN be looking to possibly acquire in the future other newspapers that make the transition to the web unsuccessfully? Will the future of the online newspaper industry become just another area doomed to consolidation? Will we be seeing cnn.chicago.com or cnn.sanfransisco.com instead of their current newspapers?

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Yesterday in between working on a bunch of stuff I replaced my “Reading” page. The new “Resources” page includes sports industry recruiting websites, publications, conferences, and additional links leading to various other important information concerning those areas. I’m hoping to create a more categorized and organized system as time goes on and as additional information is compiled. If you have anything to contribute please feel free to send me your thoughts, ideas, or point me in the direction of additional resources.

This entry is short and sweet (for once). After finishing most of my paper yesterday, I went on and taught myself late into the night how to reformat my myspace into elements with a completely unique non-myspacish looking theme. I’ll link it as soon as it’s completed. In the context of social networking and marketing, being able to create an overlay for a myspace page that promotes you, a product, or service is an essential piece in driving traffic towards your site. It’s a step in the right direction and will doubtlessly leave me even more sleep deprived as many of my projects currently do.

In related news… in quite the publicity stunt by the Yankees, Roger Clemens personally announced during the 7th inning stretch at Yankees Stadium that he was returning for a season with the Yankees… for a whopping $28 million one-year contract. The fans were ecstatic, the owner hopeful, and the Red Sox played indifference on account of being in first place at the moment. Just when his brand and its image was beginning to really suffer, Yankees owner George Steinbrenner comes through in the clutch, or with his wallet (again) I should say and reinvigorates Yankees nation with hope. Below is a fan’s video-taping of that announcement and the thunderous response by Yankees nation…

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Well it’s a beautiful 65 degree day here in New Hampshire. Cinqo De Mayo is perhaps one of my favorite holidays of the year. I love Coronas, Tequila, Sombreros, Margaritas, and Spanish music of all sorts including Reggaeton, Salsa, etc, etc. In fact, I sometimes wish I had been born Spanish because the culture is extremely lively and has so much to offer. Not to mention it would be nice to be bilingual in English and Spanish because being fluent in both is on such high demand these days as we grow into a more and more multicultural nation that has an increasingly larger Hispanic population. Note to self: Try and teach myself Spanish in addition to Chinese, Japanese, and Hindi… I think I have my work cut out for me for the next 20 years… and here I am locked inside the library working on my last paper and studying for finals. I’ll be in the gym later as well. On to business.

Today is also the beginning of the run for the triple crown. I get a lot of emails and calls from friends that I know personally and from others who I know on fantasy sports message boards. I’ve managed to nail at least 1-2 winners a year from the three races for the past 3 years. How I do it, I have no idea other than I just analyze carefully and make my own judgment calls like everyone else. My best pick ever was picking Birdstone to upset Smarty Jones at the Belmont with 35-1 odds. My rule of thumb for that race was based on the fact that Zito is an excellent trainer, Birdstone was a young stretch runner, had done very well in the warm-ups, and the Belmont is a longer track, so I felt Smarty would finally tire, much to the dismay of one of my best friends from Philly who was legitimately pissed at me for a week afterwards. Unfortunately, I have devoted zero time this year to this year’s race with all the work I have pending graduation.

Quickly looking this year’s posts drawings over and who the trainers, riders, etc are… another general rule of thumb is you want to stay away from anyone beyond the 16th post and out because they either have to really push at the beginning to get to the front for the first turn or they fall back and have to really be capable of a great stretch run through the field towards the end. All in all, it’s fairly difficult to win from the outside.

Trainers that catch my eye are Barclay Tagg, Todd Pletcher, and John Shirreffs. Shirreffs and Tagg have had some extensive success in general and in the Derby. For some reason neither Baffert or Zito have horses in this year’s Derby. Riders that caught my eye are Prado, Smith, and Nakatani. Prado is a household name and is well known after last year’s Barbaro disaster (I had him picked for a full triple crown run). Smith is also a great rider and the combination of him, Shirreffs, and Tiago with 15-1 odds on the 15th post makes a very interesting combination and could be a great possibility for an outside win. Tiago is also apparently the half brother of Giacamo and likes to fall back and make a stretch run. I’m not sure if that’s a great thing for the Derby because I think it’s the shortest of the three triple crown races. Either way that’s my pick for the win. Curlin should place despite being at the number 2 post. Nobiz Like Shobiz looks like another great pick for a potential win. Street Sense, Circular Quay, Hard Spun, and Scat Daddy are also of interest.

Post position has been a huge determinant in the past as the the horses in posts 1-10 have done overwhelmingly better in history. BUT, over the last 11 years only 6 have come from posts 1-10, none from the 2-spot (Curlin), and 5 from the 15 and 16 positions… hmm. This makes Tiago not that bad of a pick. My final 4 tally: Tiago for the win, Nobiz LIke Shobiz, Street Sense, and Curlin with Circular Quay possibly displacing one of those 4 because I just can’t rule him out.

Moving this topic more into the realm of sports marketing, I figured I’d discuss something of more interest and related to it. I was pleasantly surprised when I logged onto the Kentucky Derby website. The website has done a complete 180 and made it even more user friendly and also acclimated itself to the whole idea of Web 2.0, social networking and marketing.

Their website is really one of the best sports related websites there is on the net right now in terms of up to date content, being user friendly, and embracing Web 2.0 in the context of social networking and marketing. The layout is very easy on the eyes, not cluttered with promotional messages, and has a variety of characteristics and changes from last year. I noticed that they implemented blogs by the experts and correspondents which allows the fans to interact and share their opinions. The website has also added such social tagging and bookmarking features as Digg-it and del.icio.us. You can also subscribe to various RSS feeds.

The website has an unlimited amount of resources and additional browse-a-your-own-pace content. You can view the history, statistics, trends, and any other bit of information you can conjure as relevant in researching for the upcoming races. There are also videos, photos, and other bits of content making this a pretty cool site all around. Definitely a very positive step in the right direction for the Kentucky Derby management in embracing Web 2.0.

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I was in Baltimore, Maryland all day yesterday interviewing for various sports marketing positions. I really like the area and feel it would be a great change of pace from New England… plus they actually have green on the trees down here (we still don’t up here). It was overall a very successful day and I got the opportunity to meet with some very interesting folks from various organizations.

When I created this website I had several goals in mind; one was to create exposure for myself displaying my tenacity and willingness to learn about the environment of social networking and marketing, teach myself some programming and web design skills, learn and talk about the sports marketing/business environment and related aspects, and finally to create a future reference point for students seeking to break into the sports marketing industry.

With the last point in mind, this is what I did in preparation for my interviews yesterday and what I came away with from them.

First, I created a list of what I needed to do, bring with me, and some reminder points of how I needed to present myself and interact.

Bring the necessary resources and do your research.

I made sure I printed out several extra copies of my resumes, cover letters, and references lists along with addresses and directions for each location I was interviewing at. I also brought favorite textbook so I could refresh my memory on the flight about various important topics. I also researched each company as best as I could on through their websites and drew my questions for them from there. Lastly, I created a list of positives and negatives of myself so I could ask those name some positive or negative qualities about yourself and thought of ways I could turn each answer into a win-win situation.

Bring your A-game.

Dress appropriately. Rob McGovern said “wool is your friend.” I wore a nice conservative wool suit with a not too flashy but color coordinated shirt and tie.

Be confident. Confidence is everything. It means you’re smiling, giving a good firm hard handshake to whom you’re introducing yourself to, and looking at whom you’re talking to in the eye.

Don’t get too comfortable. Some questions and interview setups are meant to trip you up and get you too relaxed. Maintaining professionalism is key. One of my interviews had swivel chairs. Yikes. I was swiveling a little and I caught myself. Yikes.

Be specific and concise in your responses. When you’re asked the question what do you see as a negative in yourself for the love of God do not say there is nothing wrong with me. We are all human and we all have character flaws. Employers are looking for honesty and humility. This doesn’t mean that you should say well I get really impatient. Find something about yourself that may be a flaw, rephrase it, and follow it with a positive so that employers can see that if you are ever in that position you will know how to counteract it properly and positively.

Conclusion

I think I slipped up a few times. It’s only natural because it was my first set of official interviews. For some reason I could not maintain complete eye-to-eye the whole time in one interview (those darn swivel chairs!). I also think I phrased my response to “Why should we hire you” incorrectly. I think I did not put enough win-win context into the response and tried to end it with what I felt would be a “just kidding, please laugh” jest at “because I flew down here…” Oh boy. Pretty sure that did not go over so well. But I have to move on, follow up with all of the people I interviewed with, maintain a positive frame of mind, and learn from my mistakes. That’s all you can do right?

Until the next set of interviews…

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Steroids and sports is a fairly tricky sports marketing issue. With all of the emerging news over the last year ranging from the BALCO controversy to the wide spread arrests of steroid rings in upstate New York and Florida leaving almost no sport untouched, you have to ask where does it end? The truth of the matter is it will not end, not anytime soon. It is such a widespread problem that I wonder if people or the media can even begin to fathom its true extent.

Who’s to blame?

It’s not simply a matter of an athlete such as Barry Bonds (allegedly) who wants to get bigger so he can hit more home runs and earn more fame and money. It goes right down to that high school kid that wants to get bigger so he can be recruited to a top notch collegiate program or the college student that wants to attract more attention because physical appeal is so highly valued in his social environment. Our society’s obsession with physical beauty is unparalleled throughout the world. Putting great value into this may be the reason why it will always be an issue and never cease to be. The abuse of performance enhancing drugs amongst athletes, professional and amateur, would be at disgustingly high levels if ever truly revealed. I met a gentleman once in a GNC store and ended up having a discussion about the issue. He sadly reminisced about how when he was playing high school football the coaches were feeding many of the players steroids as if they were candy. He is only 35 years old and having severe liver problems. It raises the important and troubling question of at what price or how much are are we willing to sacrifice to succeed in physical ability and appearance?

Who benefits and who loses out.

While it may potentially be a PR nightmare for a sports team to have it revealed that one of its prime investments is an illegal user of steroids, there is still a laundry list of potential benefits and losses that accompany this. The brand image of the athlete and the team that they represent may be damaged. As is the case with Barry Bonds and his alleged use. He may break Hank Aaron’s record, however, there will forever be controversy surrounding it in the long run. As far as present value is concerned I am sure that the Giants organization is having no problem selling tickets, sponsorships, or advertisements as the community eagerly anticipates the breaking of the home run record. For the moment it is probably not affecting their sports marketing capabilities too badly in the broad scheme of things.

When the leaks, investigations, and accusations started popping up all over the map, many people wondered how the various professional sports leagues and teams could not have possibly known. I’m sure they knew in the case of baseball but did not want to look into or rather ignored it around the time after the latest strike when Mark McGwire and Sammy Sosa single-handedly resurrected baseball with their run at the single season home run record. I’m also certain that many owners and people who have a stake in the sports industry simply look at it as a necessary evil. Without it, players would not be able to compete at the high levels that many of them do or provide that high level of entertainment that results in potentially higher profit margins.

Ultimately, it’s the player and his brand image that loses out. He is a pawn on the chessboard and aids in amassing great sums of revenue. If he’s caught using performance enhancing drugs then sponsorship opportunities and his brand image plummets. Even if he isn’t caught, his body ultimately suffers extensively and ends up living the rest of his life with an unlimited amount of increasingly painful ailments and potentially dies sooner as a result. Mark McGwire, an alleged user, is most likely never going to get into the hall of fame.

Conclusion

At the end of the day, you would hope that the leagues would implement stricter testing guidelines and sanctions, but after all in this capitalist society, if you want to have bigger earnings you’ve got to have a competitive winning edge somehow. I am not condoning steroid use, but merely stating that it will always be there. In point, it is the athlete’s brand image and potential to bring in revenue for himself and those that represent him directly (such as his agency) that suffer the most. The image of the team and its ability to maintain a positive brand are negatively impacted as well, but I think not nearly as much.

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