Economic times hit sports world
Dave Thompson
Issue date: 12/1/08 Section: Sports
Think of Nike and what athlete immediately comes to mind? Maybe Michael Jordan or perhaps LeBron James. What about Gatorade? Is it still Jordan or maybe Peyton Manning? Or what about the energy drink AMP? Are you chugging that highly caffeinated beverage because it is plugged on the side of Dale Earnhardt Jr.'s car?
Athletes and the products they pitch have been a mainstay in America since Joe Namath and continues now with highly looked upon athletes.
But last week the tumultuous economic times hit the sports world, as Buick parted ways with Tiger Woods after a nine-year partnership that put $8 million in the golf bag of Woods yearly. Microsoft Corp. also decided it wasn't a slam dunk to have NBA superstar LeBron James endorse their products as they cut ties after a two-year partnership.
So now the one athlete you want endorsing your product?
"It all depends what your product is. I say this a million times. Jordan - if it's Gatorade or Nike he's great, but he didn't do anything for Rayovac batteries or Jockey underwear or Ball Park franks. It's got to be what is your product," says Darren Rovell, CNBC sports business writer who appeared last Tuesday on "The Dan Patrick Show."
"Tiger and Buick didn't work. The average age of the driver is still 99 [years-old]… The best things we buy are things that make sense within the sport."
The one real successful endorsement partnership comes on the racetrack.
NASCAR star, Earnhardt Jr., jumped on with a deal in 2007 with AMP Energy, Pepsi's energy drink that sponsors Jr.'s No. 88 car. Despite Earnhardt Jr. struggling to win races, he has shown to be the most marketable person in the sport. The energy drink sales have skyrocketed this year, largely to Earnhardt Jr.'s endorsement, volume sales are up 52 percent and it now only trails Red Bull and Monster in energy drink sales.
One thing is certain, we shouldn't feel sorry for these athletes, their wallets won't be hurting too bad.
So as companies downsize in this tumultuous economy, they are left wondering if it's all really worth it having the stud athlete being their pitch man?
In a status commercial culture, it only makes sense to blend celebrity, product and image in trying to promote their products. But it's got to make sense.
Athletes and the products they pitch have been a mainstay in America since Joe Namath and continues now with highly looked upon athletes.
But last week the tumultuous economic times hit the sports world, as Buick parted ways with Tiger Woods after a nine-year partnership that put $8 million in the golf bag of Woods yearly. Microsoft Corp. also decided it wasn't a slam dunk to have NBA superstar LeBron James endorse their products as they cut ties after a two-year partnership.
So now the one athlete you want endorsing your product?
"It all depends what your product is. I say this a million times. Jordan - if it's Gatorade or Nike he's great, but he didn't do anything for Rayovac batteries or Jockey underwear or Ball Park franks. It's got to be what is your product," says Darren Rovell, CNBC sports business writer who appeared last Tuesday on "The Dan Patrick Show."
"Tiger and Buick didn't work. The average age of the driver is still 99 [years-old]… The best things we buy are things that make sense within the sport."
The one real successful endorsement partnership comes on the racetrack.
NASCAR star, Earnhardt Jr., jumped on with a deal in 2007 with AMP Energy, Pepsi's energy drink that sponsors Jr.'s No. 88 car. Despite Earnhardt Jr. struggling to win races, he has shown to be the most marketable person in the sport. The energy drink sales have skyrocketed this year, largely to Earnhardt Jr.'s endorsement, volume sales are up 52 percent and it now only trails Red Bull and Monster in energy drink sales.
One thing is certain, we shouldn't feel sorry for these athletes, their wallets won't be hurting too bad.
So as companies downsize in this tumultuous economy, they are left wondering if it's all really worth it having the stud athlete being their pitch man?
In a status commercial culture, it only makes sense to blend celebrity, product and image in trying to promote their products. But it's got to make sense.
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