INTELLIGENCE REPORT – ATHLETES SPONSORSHIP www.sportdecision.com INTELLIGENCE REPORT – ATHLETES SPONSORSHIP ATHLETES SPONSORSHIP INTRODUCTION A company’s first foray into the world of sports sponsorship is their marketing value? What are the advantages and risks of this often through association with an athlete. In the early days, that kind of association? How do you integrate an athlete into your cor- first step was generally a response to a wish expressed by senior porate marketing strategy? What are your objectives? management. Over the years, however, athletes sponsorship has evolved considerably. Today it is a true communications tool that To answer these questions, SportDecision sought the advice of forms part of a company’s marketing strategy. major players in this field in Canada. We hope that this report generates interest in looking into athletes sponsorship within the The following report takes an in-depth look at athletes sponsorship business community. and tackles the many aspects that need to be considered before embarking on this type of venture: Which athletes are the best fit? Enjoy! What criteria do you use in choosing them? How do you establish Alain Hotzau - Editor SUMMARY 2 INTRODUCTION AMATEUR VERSUS PROFESSIONAL ATHLETES Reality of the marketplace 3 ORIGINS & EVOLUTION Olympic athletes always have impact PRIVATE BACKING OR PATRONAGE Extreme sports athletes, a new phenomenon THE PRESIDENT’S PET PROJECT Athletes in high-risk disciplines ATHLETES SPONSORSHIP TODAY Athletes from poorly covered disciplines 5 CRITERIA 21 VALUE AND MANAGING AN ATHLETE PERFORMANCE WHAT TO DO WITH AN ATHLETE CONSISTENCY Promotion POPULARITY OF THE DISCIPLINE Ambassador role CHARISMA AND PERSONALITY Negotiating arm COMPATIBILITY Internal communications DIMENSION MARKETING VALUE DISTINCTIONS AND AWARDS Ranking an athlete’s value by status COMPELLING STORY/MEDIA OPPORTUNITY Costs involved in promotions FAMOUS NAME POTENTIAL 24 THE MOST MEMORABLE ASSOCIATIONS AND ACTIVATIONS 14 DANGERS EVOLUTION AND TRENDS INJURIES VICTOIRE program OFF FORM SECTOR No Limits Team DOPING PowerBar Elite Team ATTITUDE AND BEHAVIOUR Team Visa 16 SPECIFICS OF SPONSORING AN ATHLETE Nike and adidas Team Lagardère THE RIGHT FIT DETAILS TODAY IN CANADA Rarely the only sponsorship 27 MAIN AGENCIES REPRESENTING Great return on investment ATHLETES IN CANADA Long-term association 2 ATHLETES SPONSORSHIP SPECIFICS, VALUE AND HOW-TO’S INTELLIGENCE REPORT – ATHLETES SPONSORSHIP ORIGINS & EVOLUTION The past 20 years have witnessed a major evolution in associations between companies and top athletes. Up until the 1980s, athletes sponsorship Sports apparel manufacturer adidas was generally involved professional players. the first to pioneer in this field by supply- Sports sponsorship had not yet been inte- ing its products to athletes from various grated into the marketing process of com- disciplines without any specific agree- panies. The development and manage- ments or considerations. At the 1936 At the 1936 Olympic Games in Berlin, American Jesse Owens won four gold medals in track shoes made by one of the Dasslers. Legend has it that adidas founder Adolf Dassler himself made Owens’s shoes. Jean-Claude Killy ment of athletes sponsorships was still Olympic Games in Berlin, American Jesse PRIVATE BACKING OR limited in scope. Amateur athletes from Owens won four gold medals in track PATRONAGE Olympic disciplines had little or no oppor- shoes made by one of the Dasslers. tunity to endorse a corporate brand or to Legend has it that adidas founder Adolf In the days before the growth of sponsor- be seen to help meet the promotional Dassler himself made Owens’s shoes. ship, amateur athletes depended solely needs of companies. Over the years, the brand with the three on their family and on patrons for financial bands evolved its image and recognition support. A closed circle of immediate on athletic fields by using this endorse- family members, admirers, true aficiona- ment policy. dos and ordinary anonymous donors con- tributed funds to the athlete’s develop- The first direct initiative by an athlete ment and quest for victory without any can be traced back to the 1968 Winter conditions. Olympics in Grenoble, France. Triple gold-medal winner Jean-Claude Killy of The history of sport is replete with these France surprised the world by promi- kinds of acts and examples. The first nently displaying the brand of his skis sports patron, French Marquis Melchior during an interview at the end zone of the de Polignac, a great friend of Baron ski race. What seems ordinary today rev- Pierre de Coubertin, organized a grand olutionized the world of amateur sport at celebration on July 23, 1912 in Rheims to the time. honour 23 athletes returning from the Olympic Games in Stockholm, Sweden. 3 ATHLETES SPONSORSHIP SPECIFICS, VALUE AND HOW-TO’S INTELLIGENCE REPORT – ATHLETES SPONSORSHIP ORIGINS & EVOLUTION (continued) THE PRESIDENT’S PET PROJECT were close to their hearts, while others The athlete’s image, personality, values talked of “pet projects.” conveyed by the discipline, media reach Athletes sponsorship thus began as private and potential to perform at the highest funding provided most often by generous While this practice still occurs, happily levels are all elements that are now taken and wealthy patrons. The first corporate patronage is on the wane. Organizations into consideration by a company. partnerships that followed had this same now apply more strategic considerations characteristic and, therefore, were not in their decision to sponsor an athlete. true acts of sponsorship. The motivation for associating a company with a particu- lar athlete or discipline came mostly from ATHLETES SPONSORSHIP TODAY the personal desires and interests of the The practice of sponsoring an athlete has company president. evolved significantly over time, thanks to the professionalism of the sponsorship Athletes continue to be a powerful magnet industry, the huge sums of money at stake for businessmen who see their values and the marketing successes linked to reflected in a particular sport. In the past, this association. this simple fascination was enough to lead a company president to Today’s sponsored athlete decide to sponsor an athlete based on his or is a full-fledged part of a her discipline. The head company’s marketing strategy. of a company who was a The investment to associate golf fan would naturally look to a well-known the company with an athlete golfer to satisfy his desire must be justified by for pleasure and his ego. communications actions Some company heads spoke of sports that and adequate marketing. Athletes sponsorships that are decided solely by the whim of a company president are rare. Today’s sponsored athlete is a full-fledged part of a company’s marketing strategy. The investment to associate the company with an athlete must be justified by communications actions and adequate marketing, and meet specific corporate, business or marketing objectives. 4 ATHLETES SPONSORSHIP SPECIFICS, VALUE AND HOW-TO’S INTELLIGENCE REPORT – ATHLETES SPONSORSHIP CRITERIA Following are the main criteria PERFORMANCE that determine the relevance Performance is the barometer and overall and value of associating a com- status indicator of the athlete. Convincing pany with a top-calibre athlete. results, a title, a cup or a medal are gen- erally synonymous with partnership offers. Above all, companies love winners and look to associate their products and services with champions who perform. When Cindy Klassen returned to Canada with five medals from the 2006 Olympics in Turin, she saw her market- ing value increase. The long-track speed skating champion, who is repre- sented by the Landmark agency, was able to sign a major sponsorship deal with MTS Allstream (Manitoba Telecom Services) to 2010. McDonald’s also Cindy Klassen (Photo: ScanPix) Kyle Shewfelt (Photo Ewan Nicholson) As essential as the performance criteri- Performance is the barometer and overall status indicator of the on is in the overall assessment of an athlete. Convincing results, a title, a cup or a medal are generally athlete’s worth, it needs to be combined with other parameters. At the 2004 synonymous with partnership offers. Summer Olympics in Athens, Greece, Canada won three gold medals. Two the associated itself with Klassen, now the champions, gymnast Kyle Shewfelt and spearhead of Canada’s drive toward kayaker Adam van Koeverden, both 23 Vancouver 2010. years of age, became models of inspira- tion for Canadian youth. Adam van Koeverden (Photo Adrian Wyld) 5 ATHLETES SPONSORSHIP SPECIFICS, VALUE AND HOW-TO’S INTELLIGENCE REPORT – ATHLETES SPONSORSHIP CRITERIA (continued) PERFORMANCE (CONTINUED) But the third gold-medal winner, Lori-Ann Muenzer, does not have a strong image. At 38 years of age, this champion cyclist has yet to receive any sponsorship deal Corporate partners who associate with or promotion contract. In 2005, she “sure winners” like these look for a announced that she was forced to with- long-term partnership and use their draw from competition for a year because champions as true company ambassa- of funding problems—in other words, she dors. (Page 21 — What to do with an did not have enough money to cover her Lori-Ann Muenzer athlete?) training costs. (Photo Laurent Rebours) CONSISTENCY Performance is one thing. A good showing Corporate partners who increases an athlete’s media exposure. With the exception of some disciplines, Depending on the importance of the event such as golf, an athlete’s career is gener- associate with “sure winners” or performance, it can shine the light on ally short and made up of highs and lows. like these look for a long-term an athlete. But the athlete needs to proj- Rare are champion athletes who can dom- partnership and use their ect an image that is attractive to the spon- inate their sport and stay on top through- soring company’s target group. The way out their career. Such exceptions are the champions as true company an athlete reacts and behaves in the spot- athletes of choice for companies who are ambassadors.