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31

Jan

The Greatest Show on Grass

Posted by Amanda Miller  Published in Golf
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Today marks the start of the Waste Management Phoenix Open, a unique PGA tournament on many levels. The tournament didn’t get its nickname, The Greatest Show on Grass, by attracting the same-old, ‘quiet please’, wine-and-cheese crowd. In some places, fans can stand literally three feet away from a player teeing off. Beer stands are never more than a stone’s throw away, and you’ll find more women in sundresses and flip-flops than men in polos and khakis.

The Phoenix Open regularly enjoys the highest attendance on the PGA Tour at over 500,000. Several attributes make this stop a special one:

1) Accessibility – Every general admission ticket to the tournament is $25. The tournament never sells out, so everyone who wants to go on Saturday or Sunday (the event’s biggest days) is welcome. Waste Management offered hundreds of Facebook fans free tickets. This year, just for providing an email address and a closest-to-the-pin guess, a fan can get four free days of admission, and parking is free.

2) 16th hole – As you can see to the right, the 16th hole is unlike any other at a PGA tournament. The entire hole is ringed by bleachers. The players have to enter through a small walkway just off one of the main paths. The atmosphere at this hole can be summed up in one word: party. Fans will boo players who don’t put their tee shots on the green, and will roundly cheer a great shot, as Tiger Woods learned when he got a hole-in-one in 1997.

3) Green initiatives – When Waste Management took over the tournament in 2010, they were determined to treat all of the, errr, waste like a resource. Guided by the four R’s – reduce, reuse, recycle, recover – fans are encouraged to put their waste in the appropriate receptacles, ‘greywater’ is reused in toilets, and the tournament purchased renewable energy credits from APS.

The Phoenix Thunderbirds, the organization that has been tasked with planning this event for the better part of the last 78 years, has helped create a tournament that is fan and sponsor-friendly. Waste Management gets an enormous amount of press because of their unique initiatives, while many companies serve as sponsors in order to be able to use the tournament as a hospitality event. With the weather slated to be sunny and in the low 70′s, it’s sure to be a win-win week for everyone. Unless you’re one of the players that misses the green off the 16th tee.

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12

May

Athlete Endorsements – What’s in a Name

Posted by Amanda Miller  Published in Golf, Marketing
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Have you heard about Burgergate? Phil Mickelson has apparently been frequenting 5 Guys Burgers and Fries quite often recently, and the former In-N-Out diehard has now switched his allegiance. The skepticism comes with the knowledge that he owns the right to a Southern California 5 Guys franchise, causing one to wonder whether this sudden fascination with the burger joint is more about his wallet than his gullet. Either way, we know Phil likes his hamburgers.

So that got me thinking about other partnerships that would make perfect sense:

  • LeBron James (Cleveland Cavaliers) – King’s Dominion amusement parks
  • Darnell McDonald (Boston Red Sox) - McDonald’s
  • Bryan Namoff (DC United) – Goo Gone (Get it? Name. Off.)
  • Nick Hennessey (Buffalo Bills) - Hennessy Cognac

Why don’t more athletes take advantage of these kinds of endorsements? They are better fits than one of your local MLB players shilling for a furniture warehouse or jewelry store. The key to a good celebrity/athlete endorsement is a realistic association between the two. For the brand/company, hiring an athlete to endorse their product or service creates a stronger awareness. People are more likely to pay attention to a TV commercial if one of their favorite players are talking, than they would be if the owner of the company was the star.

I think we can all remember Rod Tidwell shilling for Waterbed Warehouse in ‘Jerry Maguire.’  Not exactly the perfect match of celebrity to product/service. The key is to find a link between the two that is natural, either because the player truly patronizes that place of business – Chad Ocho Cinco and McDonald’s is a good example because he eats there all the time and constantly tweets about it – or because there is some other link such as similar names, where they are from, or an off-the-field incident (like Mickelson being photographed at Krispy Kreme). The link needs to be real and obvious enough that consumers can make the connection in just a few moments. Otherwise, the endorsement comes across as insincere and will not reach its full potential.

The allure of hiring a celebrity endorser can be strong, but before reaching out to the star player make sure of two things:

  1. The association makes sense – Do people have to read the copy or listen to the whole commercial for them to understand why the athlete is endorsing the product? If so, it may not be a good fit.
  2. The athlete can be trusted – We have numerous examples of athletes that have embarrassed the companies that they endorse. The largest and most recent is Tiger, but even mom-and-pop stores need to do their due diligence before they sign an endorser. Nike could sit back and weather the storm, but smaller companies might not be able to. So before they sign on the dotted line, a (thorough) background check might not be a bad idea.

What athlete endorsement did you think was the best fit? Was it a locally relevant one or an ad we saw on the national stage?

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9

Apr

Opposite Ends of the Ad Spectrum

Posted by Russell Scibetti  Published in Golf, Marketing, Media
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Let’s take a look at two sports-related commercials that I saw for the first time yesterday and couldn’t be on more opposite ends of the sports advertising spectrum:

#1 – Tiger / Earl Woods and Nike Golf

At this point, I think everyone has seen this ad, and the reaction is all over the place from what I can tell. On the negative side, I’ve heard:

  • Too soon for Tiger to be in any commercial
  • Inappropriate to use his father’s voice, and a bit creepy
  • Nike shouldn’t emphasize their relationship with Tiger right now
  • Tiger still come off as unemotional just staring at the camera

On the positive side, I’ve heard:

  • It’s the right way to re-introduce him to the market
  • Creative way to acknowledge the scandal and start moving forward
  • Honest, emotional and connects with the viewers
  • Strong move to show Nike’s dedication and support of Tiger

Personally, I think this will end up being an effective approach, especially if Tiger can keep up his strong showing this weekend. Nike is so dependent on Tiger’s success for the health and growth of their golf line that they needed to do something in conjunction with his return, and if they tried to overlook the scandal to make a more traditional Tiger ad, it would have been a massive failure. Now the important question is, what did you think of the ad? Leave your opinion in the comments!

#2 – David Wright / “The Situation” and Vitamin Water

I don’t really have too much to say about this one, but I thought it was a particularly funny way to combine an athlete with a reality show/pop culture figure like “The Situation.” Vitamin Water continues to do well with their creative ad campaigns, and this is a perfect fit with their brand.

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19

Feb

Tiger Woods Press Conference Reactions

Posted by Russell Scibetti  Published in Golf, Media
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Rather than just giving you my opinions of the Tiger Woods press conference from this morning, I decided to ask everyone on Twitter what they thought. I felt that this would be a more accurate gauge of how the public viewed his statements. Feel free to share your response in the comments below, and thank you to everyone that responded to my Twitter request!

  • sportsarizona - Tiger reax: An acting performance that would have made William Shatner proud.
  • Stefmara – I didn’t watch! Haven’t cared about this story since the news broke back around Thanksgiving that he cheated.
  • 7thWoman – “insincere.”
  • khuda1 – Narcissistic
  • MeganCassidy – I like that he apologized and defended Elin, I didn’t like how it was delivered at all. Message was right, not the presentation
  • js_bizofsports – A heavily-scripted yet ultimately fascinating performance by Tiger Woods. Not necessarily effective, but riveting.
  • sports_business – who cares? 1st step to return to normalcy. Time/performance will make him like everyone else (Lewis, Phelps, Kobe, etc.)
  • amandarykoff – My take on the Tiger statement: “I screwed up. I got caught. And now I need to say these words.” Blah blah blah.
  • nikegoal - it was artificial & hollow, carefully calculated by team Tiger, lack of a true human touch
  • EdisonLee – Took a half step forward, TW will still need to answer questions – press won’t be satisfied w/ the staged presser
  • IOnSportsMedia – “He did what he had to do as part of his “recovery” process (i.e. apologize), so only time will tell”
  • mmahoney13 – Tiger’s anger was believeable, if not poorly timed, but his apology was not believable.. Just play golf please
  • jhalitsky – Sure, he’s robotic. We knew that. Did every1 really expect a charismatic Tiger to magically show? Didn’t love it, but w/in expecs
  • SteveDittmore – I see lot of vitriol to Tiger’s speech. What is that ppl wanted him to say? Or, is it reaction to delivery and sterile delivery?
  • Anita_Lobo – wasted opportunity i.e. going through the motions drags Tiger’s image a few notches lower #sportsbiz #tiger / on the other hand now that the apology is done; let’s get back to #golf!
  • WesleyMallette – Perfect today? No. Starting point? Yes. He owned it. Addressed most important issues. Now? Time to rebuild. Most important comment? Owning the money, power, fame and entitlement issue.

4 comments

21

Dec

Opportunity to Fill Tiger’s Void

Posted by Russell Scibetti  Published in Golf, Marketing
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Callaway LogoYes, this post has to do with Tiger Woods, but not in the same manner as most of the other stories circulating out on the Internet. I want to quickly address the unique opportunity that Tiger’s absence is creating in the business landscape for golf. Beyond the basic idea that other golfers will have a better chance of winning and building up their own brand, this is an incredible chance for equipment manufacturers that are NOT endorsed by Tiger to step up and gain market share.

For example, I saw this Phil Mickelson/Callaway commercial twice this weekend (click here to view the video).

I believe one time I saw it during a Sunday NFL game, which is an expensive time slot. Now I don’t remember seeing many Callaway commercials over the past few months, so hopefully this is an example of Callaway realizing that Nike is vulnerable right now. By committing more money to their advertising spend, I believe that this will be their best chance to steal market share from Nike. This same approach can be taken from any other golf club, ball or apparel manufacturer.

Hopefully all of these non-Tiger-endorsed golf companies are reevaluating their media spend budget and schedule right now. How many opportunities like this will they get to make a big dent in their competition?

1 comment

19

Nov

What Does Wie’s Win Mean for the LPGA?

Posted by Amanda Miller  Published in Golf
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michelle-wieMichelle Wie won her first LPGA tournament this past Sunday when she outlasted Paula Creamer to claim the Lorena Ochoa Invitational in Guadalajara, Mexico. I’m sure I wasn’t the only one who was shocked to read in subsequent news articles that she is only 20 years old. She fell out of the limelight so long ago that I had assumed she was completely washed up. The only time I recently remember hearing her name was when she missed a cut.

Just a few days ago, that all changed. The golfer who has raked in approximately $50 million in endorsements from the likes of Nike and Sony finally cashed the kind of check she’s been chasing all these years. For someone who turned pro just days before her 16th birthday and played her first LPGA event at the age of 12, the pressure to win must have been enormous. She faced down that pressure, both internal and external, to grab the two-stroke win with an up-and-down from a green-side bunker.

For her endorsers, this win was a long time coming. Nike was prominently displayed on her clothes and hat after sticking with her since day one. Sony, on the other hand, may be kicking themselves. They dropped Wie from her $5 million a year contract back in April.

For the embattled LPGA, this win couldn’t have come at a better time. In July, commisioner Carolyn Bivens resigned amid growing concerns about the LPGA’s viability in this difficult economy. At the end of October, former marketing executive Michael Whan came on board to re-establish broken ties with sponsors, and win back the trust of the players. With one eight-inch putt, Michelle Wie put the LPGA on the front pages of newspapers and splashed across countless sports sites and blogs.

Does Wie’s win ‘save’ the LPGA? Not necessarily, and she’s not yet up to Tiger Woods’ standards, but the trophy does give the struggling tour a much-needed boost. It was extremely gratuitous that the win came just days before the LPGA announced their 2010 schedule which includes 24 events in 10 countries. Just 17 of those events have sponsors though, down from 34 in 2008. So having one of the most recognizable faces on tour win her first tournament certainly perked up the LPGA brass and Wie being in contention affected more than just her trophy case. According to Bloomberg.com, page views for LPGA.com rose 84% over 2008 and numbers for the final round doubled the numbers of the two previous days.

In the past, Wie was known for trying to compete against the men. She has missed eight cuts on the PGA tour and just joined the LPGA full-time this season. After winning the Lorena Ochoa Invitational, Wie said “I’m motivated to practice harder and play better and win more.” Those words must be music to the ears of executives and sponsors of the LPGA tour. After all, they’ve been waiting for this day for a long, long time.

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28

Feb

Picks of the Week – Commercials

Posted by Russell Scibetti  Published in Baseball, Golf, Media
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Here are my quick picks for this week, “Commercials Edition”:

Baseball: The latest ESPN advertisement for the World Baseball Classic:

This isn’t actually the version of the commercial I was hoping to find.  There is another one that includes Jeter, Ichiro, and Rodriguez, where Jeter says he’s played for world champions, Ichiro says he’s played for the WBC champions, and Rodriguez says he’s played for “division winners.”  The commercial seemed odd that it almost highlighted A-Rod’s lack of a championship compared to the other two.  Also, with his latest controversies, the Dominican Republic’s impressive roster and the fact that A-Rod played for the U.S. last year, I wonder if they could have picked a different player to be in his spot.

Golf:  The latest Nike advertisement with Tiger Woods:

 

The thing that impressed me with this spot is the willingness for the other golfers to openly admit they play second fiddle to Tiger now that he’s back.  I think this is a very funny and creative way to announce his return, and in a way, it still does highlight the success of some of the recent winners, which actually could help them build their names more in spite of Tiger’s return.  I’m sure the PGA was hoping that Tiger would last a little longer in the Accenture Match Play, but just getting him back out there was a huge lift.

Do you have a good “pick of the week?” Use the Contact Us link at the top of the page and send me your picks!

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15

Dec

Bad Times on the Links

Posted by Russell Scibetti  Published in Economics and Finance, Golf
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I’ve written about how the economy is impacting some of the major and minor professional sports leagues, but what about sport at a participation level?  I don’t think the economy is keeping kids and adults from playing basketball, football, or baseball/softball.  However, the one participation sport that seems most vulnerable is golf.  Let’s think about some of the attributes that fit with golf:

  • The demographics are primarily middle-aged, white, middle-to-upper class males.  Of course, this is also one of the demographic segments that has been hit hardest by the crashing markets.
  • Golf is an expensive sport to play, with the costs of equipment, clothing, and greens fees.  As personal entertainment budgets get reduced, it is hard to justify the cost of the game.  It will also be hard to justify the expense of equipment for young players that want to learn the game, which could have a longer-time impact on the sport.
  • Golf is also a time-consuming sport.  With a down economy, people are less willing to set aside a large chunk of time, particularly during the work day, to play a round.
  • The golf course is “where business happens.” Well, there’s not much new business happening, which means fewer “meetings” on the links.

Chris from Arizona State passed along a great MSNBC article from earlier this month that goes into much more detail on the troubles for the golf industry.  In particular, there are more course closings and fewer new courses being developed, which ties directly back to problems in the real estate world.  The article talks about how the housing market has reduced new development, since many courses are tied to new housing development. 

I think its reasonable to conclude that of all the different sports to take part in, golf is the one that will fluctuate very tightly with market conditions.  But are there others that you also expect to suffer?  Let me know your thoughts in the comments!

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