HOT TOPIC August, 1998   By Kathleen Hessert Reprinted from July 1998 Issue of www.sportbusiness.com

GIVE US MORE MISTER NICE GUYS The "Throw a tantrum, make a buck" ideology is finally becoming passe. As a vibrant U.S. Olympic Ice Hockey gold medal winner, Cammi Granato marched into the stadium carrying her country's flag in the closing ceremony of the Nagano Olympic Games, there was a sense that things just might be turning right again in the world of sports. Granato and her team epitomized the hopes, dreams and a polite though insistent challenge. "We love this wild and wacky sport of ice hockey as much as the guys and so what if we won't get multi-million dollar contracts to play the game! Reigning world figure skating champion and Olympic gold medallist, Tara Lipinski's gleeful squeal after learning of her victory, her youthful exuberance and total immersion in the Games while others competed but didn't "participate," will garner her millions above what she would have earned for her gold medal alone. The most recent Olympics introduced audiences to a German brick layer who took a horrific spill then rebounded just days later with a gold medal. His nickname: the "Hermanator". And then there was another personality who captured our hearts and possibly endorsements with the warmth of a smile. The Japanese silver medal ski jumper's nickname- "Happy". LET'S SPONSOR MR NICE GUY Corporate sponsorship spending increased 15% to 6.8 billion in 1997, according to IEG Inc. a sponsorship industry research and consulting firm. Interestingly, the biggest share of the increase is attributed to the Olympics, which is traditionally linked with sports purists who will gobble up sponsor dollars when offered, but ostensibly compete solely for the love of their sport. With sponsorship dollars pouring in, the sentiment in marketing arenas today seems to be, "Show us Mr. Nice Guy. Show us Mr. Clean." Whether corporate spenders are fixated on finding role models for the youth of the world or simply protecting their image marketing investment, crisis prevention has become a survival tactic. "In your face" marketing so prevalent over the past decade is no longer cool! It seems that a quiet backlash has begun to take hold against the showboats in sports. And though there's clearly an insistence on traditional world class athletic skills and winning records, sponsors are looking for a super package that includes athletic prowess and a charismatic, politically correct image. The "throw a tantrum, make a buck" ideology is finally passe'. OUR REAL MAN MANNING The Sports Media Challenge web site hosts a regular page entitled, " The Hot Corner" with commentary on current issues and incidents in sports. Recently an essay on good guy images drew a curious e-mail from Oshkosh B'Gosh Inc., children's wear manufacturer and retailer: "Can you suggest athletes with a squeaky clean image who are available for endorsements?" We e-mailed back with the names of the pint sized Olympic gold medal gymnast, Kerri Strug and Peyton Manning soon to be the number one pick in the 1998 NFL draft. Estimates of Manning's worth at the launch of his NFL career are around $30 million dollars. He's a winner, no doubt, but because of his pristine image and unique position as an All-American son of a former All American, Hall of Famer and sports icon, Archie Manning, Peyton is uniquely marketable. Prospective sponsors lined up last year when he announced that he would pass up his initial opportunity to be the toast of the National Football League. Manning wanted to take advantage of one more year of eligibility and he went on to graduate number one in his class in an unprecedented three years. To the public and sports marketing experts, Manning's decision and follow-up performance capped off an already stellar image with a stamp of intelligence as well. Of his decision that confounded sports professionals, he explained, "I wanted to enjoy being a kid for one more year." No greed, just great! Manning chose International Management Group, the world's premiere sports management and marketing company to represent him then promptly instructed his agents to keep marketing efforts low key because he had a lot of real work ahead. His first priority is to prove himself in the NFL then give something back to the game of football and the youth who look to him as hero and role model. According, to Gary Jacobus, IMG Senior VP of Corporate Representation, "Peyton personifies what it really means to be a 'professional' in the NFL. Not only does he accept being a role model but he embraces it. Peyton embodies what Moms and Dads want for their kids," said Jacobus. "Setting goals, staying in school and giving back instead of just taking from his sport." That kind of attitude is the beginning of building the Manning blue chip brand. BAD BOYS TURN OFF CONSUMERS So, clean is now both cool and lucrative. The 1997 Sports Media Challenge Sponsorship Survey found that sponsors primary concern while selecting an endorser is their "image." While professional bad guys like the NBA's infamous Dennis Rodman and Latrell Sprewell are loosing endorsements following their well publicized boorish and sometimes criminal antics, nice guy jock, Grant Hill is reaping it in. Hill's Fila sneaker endorsement is reportedly worth about $80 million over seven years. There is no doubt that athlete endorsement deals are what determine whether an athlete is very well paid or very, very rich. The so-called "side deals" often pay athletes significantly more than their actual playing contracts. Nike Chairman, Phil Knight recently cited the current wave of "sports negativism," as a contributor to the shoe company's recent 20% drop in quarterly earnings. Conceivably the buying public has become turned off to sneaker endorsements when an athlete kicks a photographer in the groin on national TV or one chokes his coach then infers that racism was involved in doling out his punishment. In the aftermath of these and other embarrassing incidents, sponsors are looking for the "halo effect" first from an athlete, then ensuring their product or service bathes in the associated glory. Additionally, corporate sponsorship is playing off a red-hot trend toward cause-related marketing. According to Lesa Ukman, president of IEG, "Consumers are looking to spend their money with companies that stand for something." A WOMAN'S UNTAINTED TOUCH Kevin Richberg, Director of Athlete Services at U.S. based Integrated Sports International, which represents world class athletes in their marketing opportunities, says it's a comparative cinch to hook up a world class athlete who has a winning image and record, if they can find the right match. ISI represents Cynthia Cooper, most valuable player in the first year of existence for the Women's National Basketball Association. During her show stopping first season, Cooper landed a General Motors endorsement contract worth close to six figures. The automobile manufacturer chose to link its image and Cooper's, to a cause that had special significance for its women customers: breast cancer. Cooper, readily admits to receiving extra grooming from General Motors to ensure her readiness for "Concept Cure" and its widespread exposure. And not only was she willing but thrilled with the opportunity. Image after all, is part of the coveted well-rounded package of the contemporary athlete looking to cash in on lucrative endorsement possibilities. According to Richberg, the success of "Concept Cure" and other Cooper campaigns is creating opportunities to bring new corporate partners to the table. "Unless you're a Michael Jordan, it's rare to have sponsors come to you with deals. They've been burned too many times in the past. But in Cynthia's case, there's been a significant influx of interest." And though the magnitude of sponsor dollars go to men in traditional high profile male sports, more dollars are migrating to women's sports which are still linked to wholesome health and fitness than egos and inflated contracts. There's a sense, that stardom and larger than life egos do not yet taint women athletes, which makes them more fan-friendly and pliable to corporate sponsor demands. In addition, ISI's Richberg said, "Corporations are getting wise. They know who does the shopping and writes the checks in the family and as women's sports become more popular, investing in them becomes a much more efficient buy." That said, the two factors making women's sports and athletes more enticing: the rise in the popularity and exposure, are the same factors that make these relative newcomers to corporate sponsorships susceptible to the woes of male superstars as well. Women's figure skating and basketball have already begun to cash in. In the past year not one but two professional women's basketball leagues were launched with significant success on the court and in the endorsement race. Likewise, the proliferation of professional figure skating tours and prime time coverage have taken advantage of the sport's rising popularity with female consumers and apparently have little trouble enticing elite sponsors and major dollars. With her gold medal in hand, Tara Lipinski is now rumored to be worth at least US$ 15 million. With this kind of success in women's athletics, who knows, maybe the first time Olympic medal sport of women's ice hockey will have the corporate backing for an international league of their own.