What is Sports Marketing?
• Sports marketing is the use of sports to
market products (DUH)
– So for example companies place their logos
on jersey’s of teams they represent. This gets
them exposure on many levels.
• Under Armour, Nike, Reebok, Adidas, etc.
• Companies monitor their exposure by
counting the number of times per
advertisement, game, or show that a
product or service associated with an
athlete, team, or entertainer. This number
is known as gross impressions.
– This may be subtle such as a small logo on a uniform. Every
time you see a product or company logo your brain records that
image. Advertisers hope you remember it when you buy such a
• Timing is very important in
sports marketing because
fans want products that
identify them with a winner.
So a teams wins and
losses are more than just
points. There is a dollar
value that takes a hit as
• In 2007 an estimated 30 million people
watched the Super Bowl worldwide!
• Average attendance for sports
– NFL 69,000 per game x 16 games x 32 teams = 35,328,000 fans
– MLB 33,000 per game x 160 games x 30 teams = 158,400,000
– NBA 17,000 per game x 82 games x 30 teams = 41,820,000
– NHL 17,000 per game x 82 games x 30 teams = 41,820,000
• If 10% of that audience spends roughly $20 at your store
you would bring in $554,736,000 in revenue annually.
Sports Marketing Firms
• Sports firms bring business sponsors
together with sports teams, individual
athletes, and coaches.
• Next it negotiates terms of a contract
between them and manages the
contract for both parties.
• Firms match athletes and businesses
for mutual benefits
• Sports movies are often criticized for poor acting and little
plot. The top five income producing sports movies as of the
end of 2006 may change that mind set.
1. Waterboy (1998): $161,456,592
2. The Longest Yard (2005): $158,000,000
3. Jerry Maguire (1996): $153,620,822
4. Talladega Nights (2006): $148,000,000
5. Rocky IV (1985): $127,873,716
6. Rocky III (1982): $122,823,192
7. Seabiscuit (2003): $118,251,555
8. Rocky (1976) - $117,000,000
9. Remember The Titans (2000) - $115,000,000
10. Dodgeball (2004) - $114,000,000
11. A League Of Their Own (1992) - $107,000,000
12. Million Dollar Baby (2004) - $100,000,000
• What can you conclude from the popularity of sports
• One owner or multiple agents
• An agent is a person responsible for making contacts
with clients and sponsors
• Scott Boras, MLB
– Carlos Beltran, Johnny Damon, Prince Fielder, Matt Holiday,
Manny Ramirez, Alex Rodriguez, Mark Texiera
• Drew Rosenhaus, NFL
– Anquan Boldin, Ocho Cinco, Plaxico Burress, Terrell Owens,
• David Falk, NBA
– Charles Barkley, Elton Brand, Patrick Ewing, Allen Iverson,
Michael Jordan, Stephon Marbury
The Power of Sports
• More time and money • EMOTIONAL TIES
are spent in sports than – The power of athletics as
any other recreational a marketing aid can be
explained partly by the
pursuit in the country emotional ties people feel
• Sports fans spend a lot towards sports
of mental energy on – Millions of people feel
their favorite teams and intense love, joy, hate, or
Condone the Entertainer
• Fans will often ignore an athletes past
to be entertained.
• In 1999 fans spent on average $49.95 to
see Mike Tyson fight Francois Botha
and raise for him $148 million after his
1995 release from prison.
• Other Forgiven Fan Favorites
– Kobe Bryant, Charles Barkley, Ray Lewis,
Terrell Owens, Jason Giambi, Corey Dillon
Corey Dillon Rap Sheet
Arrested for: DUI, theft (twice), intent to
sell cocaine, obstructing a police
officer (thrice), resisting arrest (twice),
assault (five times), criminal trespass,
malicious mischief (twice), reckless
endangerment (twice), domestic
• A sponsor is a person, organization, or
business that gives money or donates
products and services to another
person, organization, or event in
exchange for public recognition.
• For example, if Phil’s Pizza sponsors
your recreational basketball team!
Reasons to Sponsor
• Increase Sales • Show commitment to
• Introduce new product or community
service to large audience • Enter new markets
• Compete where many • Entertain clients,
potential customers are in employees, or potential
one place customers
• To be identified with an • Enhance companies’
even in which target image
market is intersted
• Earn goodwill of audience
• Since costs can be high, sponsors carefully
watch the returns on their sponsorships.
• A return is the profit the sponsor earns for
• For example, Phil’s would likely see an increase
in sales because of its sponsorship!
• An endorsement is a person’s public
expression of approval or support for a
product or service.
• They are a promotional tool rather than a
form of sponsorship.
• If two people are seen on a commercial
speaking of a product they are not
endorsers because they are acting as
spokespersons for the company.
• However, a well known race car driver for
a brand of tires is an endorsement
– The public knows the person is a real
– Public assumes the comments are personal
– Public assumes the driver would not make
comment if he/she did not believe it
• Endorsements must
– Always reflect honest opinions, findings, beliefs or
experiences of the endorser
– Endorser must have real experience with product
– Not include deceptive or misleading statements.
– Must not be reworded or out of context
– Endorser must use and continue to use and believe in
product for as long as he/she endorses product
– If product changes in any way, endorser must be
notified, and the endorser must continue to use and
believe in new product
Most Endorsed Athletes
6. Kobe Bryant ($16 Million)
7. Jeff Gordon ($15 Million)
8. Shaquille O’Neal ($15
9. Peyton Manning ($13
1. Tiger Woods ($100 Million) 10. Dwayne Wade ($12 Million)
2. Phil Mickelson ($48 Million)
3. LeBron James ($25 Million) • Do you find anything odd
about this list?
4. Dale Earnhart Jr. ($25
5. Michelle Wie ($19.5 Million)
Who Endorses Who?
$ Derek Jeter and Gatorade
$ Peyton Manning and Direct $ Yao Ming and Reebok
TV $ Brady Quinn and EAS
$ Dan Marino and Nutrisystem Nutrition
$ Michael Jordan and Nike $ Kasey Kahne and Vitamin
$ Tiger Woods and Buick Water
$ Jeff Gordon and TAG Heuer $ Maria Sharapova and Canon
$ Danica Patrick and GoDaddy $ Coach Krzyzewski and
$ Charles Barkley and T- American Express
Mobile $ Lebron James and
$ David Beckham and Adidas Powerade
$ Dwayne Wade and Converse $ John Madden and Electronic
$ Tony Hawk and Activision
Top Sporting Events
• 1. NFL Football
• 2. NASCAR
• 3. NCAA Football
• 4. MLB Baseball
• 5. NCAA Basketball
• 6. NBA Basketball
• 7. NHL Hockey
• 8. PGA Golf
• 9. AFL Arena Football
• 10. NCAA Baseball
• 11. Olympic Sports