Music Deals Help Entertainment Category Capture Bigger Share Of Spending

According to IEG Sponsorship, sponsors will spend more on entertainment tours and attractions than on causes in 2004, according to IEG's forecast, lifting the category into second place behind sports. Data from 2003 reveals heightened interest in music sponsorship, with its potential to cross borders and cultures and impact the all-important youth market. That trend should continue in the new year.

While the entertainment category will see its share of the $11.14 billion increase by two points to 10 percent, festivals, fairs and annual events, as well as arts, will both see their shares drop by a point, to seven and five percent, respectively. Causes maintains its nine percent level and sports holds steady at 69 percent.

Projected dollar amounts by category are sports: $7.69 billion, up 8.6 percent from $7.08 billion; entertainment tours and attractions: $1.06 billion, up 21.5 percent from $871 million; causes: $991 million, up 7.5 percent from $922 million; festivals, fairs and annual events: $792 million, up three percent from $769 million; and arts: $612 million, up 0.7 percent from $608 million.

Speedo Announces First-Ever Sponsorship Of Winter Olympic Hopefuls

11/09/05

IEG Sponsorship: LOS ANGELES -- Speedo announced today that it has signed individual endorsement deals with American 2006 Winter Olympic sledding hopefuls Vonetta Flowers, Todd Hays, Noelle Pikus-Pace, Jean Prahm (formerly Racine), and Chris Soule. These are the first-ever winter sport sponsorships for the world's top-selling swimwear brand, whose Olympic heritage dates back to 1932. Today's announcement precedes the unveiling of evolutionary suit technology that will make its Olympic debut during the 2006 Winter Games in Torino, Italy, February 10-26.

In 2004, Speedo launched FASTSKIN FSII, the world's fastest swimsuit. Developed with and worn by American Olympic Gold Medalist swimmers Michael Phelps, Amanda Beard, and Natalie Coughlin, FASTSKIN FSII underwent extensive research and athlete testing, including drag analysis, Computational Fluid Dynamics (CFD) testing, state of the art laser modeling and the fabric replication of shark skin. Ultimately, 47 Olympic medals were won by athletes wearing Speedo FASTSKIN FSII at the Athens Games, more than twice the number of medals won by athletes wearing the second most popular brand.

Speedo now turns its success from the water to the ice. Speedo athletes are expected to compete in Olympic sledding sports.

Toyota To Serve As Presenting Sponsor Of NBA TV Broadband; Other Sponsors Also Support Content

IEG Sponsorship: NEW YORK -- The National Basketball Association announced today the official launch of NBA TV Broadband, a new advertiser-supported broadband video product providing visitors to NBA.com with free access to the most comprehensive and exclusive package of NBA video highlights throughout the 2005-06 NBA season.

Through NBA TV Broadband, for the first time fans around the world will have access to in-game broadband highlights of every NBA game, TNT Overtime - a special online video channel showcasing TNT's network of marquee basketball announcers, and NBA TV all-access and fantasy programming. Additionally, fans can also have the latest NBA video highlights delivered directly to their computer desktop through new Video RSS (Really Simple Syndication) feeds.

Along with Toyota as the presenting sponsor, Reebok, Nike, Converse, Sony PlayStation, Hannspree, Finish Line, 20th Century Fox Home Videos and many others will support NBA TV Broadband with video advertisements during the season.

"NBA TV Broadband delivers the ultimate rich media experience that NBA fans crave," said Brenda Spoonemore, Senior Vice President of Interactive Services for NBA Entertainment. "This new service is a great way for Toyota and other advertisers to reach their customers while allowing our fans to watch their favorite NBA broadband video highlights on-demand and all for free."

University Of Texas Athletics Extends Multimedia Rights Partnership With Host Communications Inc.

11/11/05

IEG Sponsorship: AUSTIN, Texas and LEXINGTON, Ky. -- The University of Texas today announced that its athletics multimedia rights and sponsorship sales agreement with Host Communications Inc. has been extended through 2015.

Under terms of the agreement, HOST renews its rights to represent UT Athletics and its 20 - sport men's and women's athletics program in sponsorship sales, as well as radio, television, and internet broadcast production and distribution of athletics events, coaches’ shows and specialty programming. Additionally, HOST retains printing and publishing rights and the UT Athletics Internet platform for www.texassports.com and www.mackbrown-texasfootball.com. HOST also continues to manage endorsements, corporate sponsorship programs, game-day promotions and exposure at all UT Athletics venues.

"HOST has been our marketing partner since 1983 and has done an outstanding job for the University," said Men's Athletics Director DeLoss Dodds. "We feel this long-term extension provides opportunities to maximize revenue generated through marketing and multimedia efforts while helping us enhance the UT Athletics experience for student-athletes, coaches, fans, alumni and all of our constituencies.”

Lowe's Signs Sponsorship Agreement With NCAA

From IEG Sponsorship: MOORESVILLE, N.C. -- It's back to school for Lowe's Cos. Inc., which has signed a three-year sponsorship deal with the NCAA and CBS Sports tying the home-improvement retailer into an alliance with college athletics.

The emphasis of the deal is on the men's and women's college basketball tournaments.
Next month, Lowe's will start offering store gift cards bearing the logos of 95 NCAA schools. The cards will be sold online and in stores.

In addition, Lowe's, which has a dozen Triangle locations, will be a featured advertiser during CBS Sports' coverage of NCAA events.

Where's the Sports Sponsorship Action? Try NASCAR

What does Toyota, McKee Foods, and The US Army have in common? Each just signed new NASCAR Sponsorships. According to IEG, the sponsorship consulting company, Toyota will become the title sponsor of the AMA Toyota Motocross Championship presented by FMF and the Toyota AMA National Arenacross Series. Toyota also will be the official vehicle of the Amp'd Mobil Supercross Series and support the K&N Filters presents BooKoo Arenacross Championship Series.

Meanwhile, McKee Foods' Little Debbie has signed on as the primary sponsor of the Wood Brothers/JTG Racing Team and Ken Schrader for 19 races next season. Schrader will drive the Number 21 Ford Fusion during the 2006 Nextel Cup season. Motorcraft Quality Parts and the U.S. Air Force will rotate their sponsorship of the car for the remaining races. and the U.S. Army uses its NASCAR Sponsorship for a new public eduction program.

It may be that NASCAR has more "places" for corporate sponsors than the NFL, NBA, or MLB, but it also may be that NASCAR does a good job of creating them. Maybe the NFL should consider having a place for at least one other corporate logo on team uniforms.

...Oh, I can hear the fans scream now.

Snoop Dog and Pats' Willie McGinest to Start New Sport Agency Firm

Already friends and business partners in a new Southern California youth football league, Rapper Snoop Dog is teaming up with New England Patriots Linebacker Willie McGinest to form a new sports agent organization.

This is not the first time a hip-hop musician has entered the world of the sports agent. Master P did so in 1998, crafting the now-controversial contract between Running Back Ricky Williams and the New Orleans Saints. A contract that was stocked with too many incentive clauses to be fair to Williams.

Why is this trend occuring? I bluntly think it's a byproduct of a successful inner city black culture where relationships between athletes and musicians are so common that both seek to find business opportunities in the market of the other. It proves the old saying "It's not what you know, it's who you know." Rap artists know athletes and negotiate their own record deals, so it's logical that some would think they can transfer that skill into the sports world.

What I'm waiting for is the one successful musician that engineers a deal to purchase an NFL team. Stay tuned.