Lesson 8.6 – Endorsements Copyright © 2014 by Sports Career Consulting, LLC

Endorsement: A partnership between an athlete or entertainer and a company in which the athlete or entertainer receives compensation in return for their support and approval of a company product or service Endorsements The celebrity agrees to allow the company to use his or her likeness to promote company goods and services LESSON 8.6 Sponsorship & Endorsements Copyright © 2014 by Sports Career Consulting, LLC

Endorsements GatoradeGatorade featuring athletes like Usain Bolt, Bill Russell, Serena Williams, Michael Jordan, Mia Hamm, Peyton Manning, Sidney Crosby, Jimmie Johnson, Abby Wambach and others in a new ad campaign as part of their re-branding effort LESSON 8.6 Sponsorship & Endorsements Copyright © 2014 by Sports Career Consulting, LLC

Endorsements Subway featuring “famous fans” like Jimmy Fallon, Blake Griffin, RG3, Apolo Ohno, Carl Edwards, CC Sabathia, Michael Phelps, Ryan Howard, Justin Tuck, Michael Strahan, Ndamukong Suh & Nastia Liukin in advertising campaigns Michael Phelps LESSON 8.6 Sponsorship & Endorsements Copyright © 2014 by Sports Career Consulting, LLC

 Success and high levels of performance  Media following  Work ethic  Personality traits What characteristics among celebrities do sports and entertainment marketers look for? Endorsements LESSON 8.6 Sponsorship & Endorsements Copyright © 2014 by Sports Career Consulting, LLC

 The most successful campaigns will feature athletes or celebrities who actively promote the product or brand  Consumers must actually believe the athlete or celebrity uses the product or service otherwise the campaign’s credibility risks being undermined  Companies invest a lot in celebrities to promote their products so aligning with the right athlete or entertainer is paramount Effective endorsement campaigns Endorsements LESSON 8.6 Sponsorship & Endorsements Copyright © 2014 by Sports Career Consulting, LLC

Kevin Durant has maintained a positive image throughout his NBA career and as a result, his marketability is on the risehis marketability Endorsements LESSON 8.6 Sponsorship & Endorsements Copyright © 2014 by Sports Career Consulting, LLC

Endorsements LESSON 8.6 Sponsorship & Endorsements Copyright © 2014 by Sports Career Consulting, LLC As a result, he earned $13 million in endorsements last year according to Sports Illustrated’s “Fortunate 50” list in 2014, ranking him as the sixth highest paid athlete in terms of endorsement (even edging out Peyton Manning who was seventh on the list, earning $12.5 million).

Prior to the 2010 NBA Draft, Reebok locked up budding superstar and eventual number one overall pick John Wall to a five year deal, reportedly worth $25 million. Reebok was banking on Wall successfully replacing Allen Iverson as the face of their basketball brand in a move that never quite paid off (he moved on to adidas in 2013)moved on to adidas Endorsements LESSON 8.6 Sponsorship & Endorsements Copyright © 2014 by Sports Career Consulting, LLC

In an effort to show their allegiance to the brands they endorse, both Robert Griffin III (Adidas) and Tom Brady (Under Armour) were fined by the NFL for covering up the Nike swoosh logo during the 2013 season (Nike is the league sponsor) Endorsements LESSON 8.6 Sponsorship & Endorsements Copyright © 2014 by Sports Career Consulting, LLC

Athlete endorsement earnings, according to Sports Illustrated’s “Fortunate 50” annual list of the 50 top- earning American athletes, published in 2014Fortunate 50 LeBron James $38 million Phil Mickelson $33 million Tiger Woods $31 million Kobe Bryant $20 million Derrick Rose $17 million LESSON 8.6 Sponsorship & Endorsements Copyright © 2014 by Sports Career Consulting, LLC Endorsements Click here to view the top 20 earning International athletes in terms of endorsement compensationhere

Derrick Rose did not play in a single game in due to injury, so adidas actually tracked his rehab through a season long marketing campaign (#thereturn) marketing campaign Endorsements LESSON 8.6 Sponsorship & Endorsements Copyright © 2014 by Sports Career Consulting, LLC Video: rose-adidas-rehab-nba-chicago-bulls/ / rose-adidas-rehab-nba-chicago-bulls/ /

Floyd “Money” Mayweather was the top earning American athlete, yet did not generate any revenue through endorsements Endorsements LESSON 8.6 Sponsorship & Endorsements Copyright © 2014 by Sports Career Consulting, LLC Click here to view SI’s entire “Fortunate 50” list, including salary and endorsement earningshere

 Background checks  Discussion with celebrities to determine levels of commitment  Development of a contract and having each party carefully review the terms  Familiarizing the celebrity with the product or service in which they will endorse Finalizing the Selection Process Endorsements LESSON 8.6 Sponsorship & Endorsements Copyright © 2014 by Sports Career Consulting, LLC

According to the q scores Website, a q score “measures the familiarity and appeal of personalities in a variety of categories to determine targeted audience attraction” Marketers can refer to a prospective endorsers “q score” to determine the individual celebrity’s marketing potential Endorsements LESSON 8.6 Sponsorship & Endorsements Copyright © 2014 by Sports Career Consulting, LLC

Basketball Hall of Famer Michael Jordan remains the best-known and most-liked pro athlete, nearly a decade after he retired as a player. He is recognized by 89 percent of fans and has a positive Q score of 43 percent. Denver Broncos quarterback Peyton Manning is tops among active athletes. He’s recognized by 88 percent and has a positive Q Score of 32 percent. Endorsements LESSON 8.6 Sponsorship & Endorsements Copyright © 2014 by Sports Career Consulting, LLC

After accepting a plea deal with Major League Baseball for his part in a performance enhancing drug scandal, Brewers’ star Ryan Braun was quickly dropped by most sponsors, including Nike, while 65% of fans felt his brand would never recover based on a poll conducted on bleacherreport.com Failure to live up to expectations may result in a sponsor parting ways with the athlete or celebrity, particularly in the midst of any negative publicity surrounding the individual Endorsements LESSON 8.6 Sponsorship & Endorsements Copyright © 2014 by Sports Career Consulting, LLC

In 2013, Tara Costa, former star from the popular TV show ‘Biggest Loser,’ was being sued by a corporate partner on the basis that she had allegedly gained too much weight to continue representing their brand.being sued Failure to live up to expectations may result in a sponsor parting ways with the athlete or celebrity, particularly in the midst of any negative publicity surrounding the individual Endorsements LESSON 8.6 Sponsorship & Endorsements Copyright © 2014 by Sports Career Consulting, LLC VIDEO: costa-on-getting-sued-for-weight-gain/ costa-on-getting-sued-for-weight-gain/

Studies have shown that celebrity endorsements can be extremely effective in helping a company drive sales of its products or services Endorsement Effects Sales Endorsements LESSON 8.6 Sponsorship & Endorsements Copyright © 2014 by Sports Career Consulting, LLC

In 1984, Puma sold only 15,000 tennis racquets a year. In 1985, following Becker's first victory in Wimbledon and his backing of Puma rackets, sales jumped to 150,000 rackets Endorsement Effects Sales Endorsements LESSON 8.6 Sponsorship & Endorsements Copyright © 2014 by Sports Career Consulting, LLC

In 2000, Nike Golf signed Tiger Woods to play its golf ball. By 2005, Nike Golf enjoyed revenue growth of an astounding 24 percent per year. Endorsement Effects Sales Endorsements LESSON 8.6 Sponsorship & Endorsements Copyright © 2014 by Sports Career Consulting, LLC

Given the incredible sales success of his branded grills, George Foreman now sorts through as many as 20 endorsement offers per week Endorsement Effects Sales Endorsements LESSON 8.6 Sponsorship & Endorsements Copyright © 2014 by Sports Career Consulting, LLC

After signing on with Converse, Dwyane Wade’s support of the brand made an immediate impact as his likeness contributed to an 82 percent increase in sneaker sales in the first two years of the campaign Endorsement Effects Sales Endorsements LESSON 8.6 Sponsorship & Endorsements Copyright © 2014 by Sports Career Consulting, LLC

1-800-Flowers teamed up with Justin Bieber for what was originally intended to be a small Valentine's Day promotion. It turned into one of the biggest campaigns in the company's history and led to an annual relationship with the teen pop sensation. Endorsement Effects Sales Endorsements LESSON 8.6 Sponsorship & Endorsements Copyright © 2014 by Sports Career Consulting, LLC

Last year, Nike sold $300 million in LeBron James’ signature shoes in the U.S. alone (compare that to Dwight Howard’s $5 million in sales for adidas)in the U.S. Endorsement Effects Sales Endorsements LESSON 8.6 Sponsorship & Endorsements Copyright © 2014 by Sports Career Consulting, LLC

Blank Slide Available for Teacher Edits LESSON 8.6 Sponsorship & Endorsements Copyright © 2014 by Sports Career Consulting, LLC

Sponsorship & Endorsements 1) Define endorsement An endorsement is a partnership between an athlete or entertainer and a company in which the athlete or entertainer receives compensation in return for their support and approval of a company product or service. The celebrity then agrees to allow the company to use his or her likeness to promote company goods and services. Copyright © 2014 by Sports Career Consulting, LLC LESSON 8.6 REVIEW (ANSWERS)