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Monthly Luncheon Report

(Jan. 12, 2005 PCC Monthly Luncheon)

"Sports Marketing: Team Up to Build your Brand"

By David Brimm

MODERATOR

Peggy Kusinski
Weekend Sports Anchor, NBC Ch. 5

PANELISTS

Brooks Boyer
VP of Marketing, Chicago White Sox

Dave Leitao
Head Men's Basketball Coach, DePaul University

Dave Kurland
Director of Community Relations, Chicago Bulls

Nick Paul
Senior VP Management Director
361o sports + event marketing

PRORAM SUMMARY

[Photo to be posted soon]
All photos by Ted Lacey

Winning Sports Promotions Don’t Always Require Winning Teams or World-Class Athletes

Yes, we remember the glory days of the Michael Jordan Bulls and Walter Payton SuperBowl Bears and the perennial Sammy Sosa "cursed" Cubs, but a panel of Chicago sports experts agree that winning records shouldn’t interfere with the terrific opportunities for winning professional and college sports promotions and PR tie-ins. The panel, moderated by Peggy Kusinski, Weekend Sports Anchor, NBC Ch. 5, included: Brooks Boyer, VP of Marketing, Chicago White Sox; Dave Leitao, Head Men's Basketball Coach, DePaul University; Dave Kurland, Director of Community Relations, Chicago Bulls; and Nick Paul, Senior VP Management Director for 361 Sports.

Nick Paul

As head of 361 Sports, over the course of a 13-year sports marketing career, Nick has developed winning sports promotions for a number of Blue-Chip brands. His agency works with clients to integrate brands into the sports market. He revealed some important insights into the dynamic sports marketing environment:

  • By 2008, 25 million homes will have TiVo, putting standard commercials on the endangered species list. It will change the behavior of core sports fans and challenge marketers to find alternative ways to reach these fans.
  • Studies suggest that four out of ten consumers will pay 10% more for brands that have a sports tie-in. The same number will switch brands if the sponsorship is meaningful to them.
  • $11 billion was spent on sports marketing sponsorships in 2004
  • 83 out of the top 100 U.S. companies allocate a part of their budget for sports marketing
  • The reason for the interest in sports marketing? According to Nick, it’s that sports sponsorships appeal to the emotions of consumers. And that appeal applies to college level, minor league and professional sports teams. He suggests that in addition to the pro teams, marketers in Chicago should think about the Kane County Cougars and arena football, where the teams offer expanded packages and where athletes have close ties to their fan base and sponsors

    Dave Leitao

    Although the head basketball coach of DePaul since 2002, Dave’s responsibilities not only include motivating his team, but motivating the fan base to support DePaul basketball. Dave admits that college sports has taken on some of the trappings of professional sports, with a much greater emphasis on "dollars and cents." His challenge is to balance the amateur status of DePaul basketball with the benefits of fund raising and appealing to the booster clubs.

    "We have to create a product that the consumer wants to be part of. Create the right image. This is a daily challenge for me and for our athletes. I have to teach them how to act like a ‘professional’ without overstepping their amateur status," said Dave.

    College basketball is a multi-billion industry, so it’s not unexpected that the "purity of amateurism can be tarnished by the lure of dollars. Winning fuels dollars and generates corporate sponsorship and fundraising" among DePaul’s core audience of students (the life blood of college sports); fans and alumni; sports and entertainment enthusiasts; and corporate sponsors.

    Dave Kurland

    In his 16th season with the Bulls, Dave is responsible for all community relations activities and coordinates the Bull’s charity foundation (CharitaBulls). While he acknowledged that community relations has a different dynamic than sponsorship sales, it’s as important for tapping into community support. "PR is what people think about you. Community relations is what people feel about you."

    He admitted that his work is more challenging than in day’s past, when Michael Jordan gave the Bulls and professional basketball international cache. Today, basketball players have the poorest image of any professional sports athlete. Kobi Bryant’s troubles, for example, have contributed to this perception. As a result, the NBA is embarking on a comprehensive image campaign to change perceptions of players.

    Dave reported that this current Bulls team "is the best group of players I’ve encountered in 16 seasons. They are a young group, and are very willing to do community work. They are not adverse to signing autographs before the game and really enjoy interacting with fans."

    Kurland reminded the audience that basketball is the only professional sport where fans can sit on the court and be close to the athlete. "It’s a real hands-on kind of relationship."

    "The bottom line is that when you feel good about the Bulls’ contributions to the community, you feel better about supporting the team. The Bulls will work with any family-oriented charity, and we especially support reading programs. Don’t be afraid to call us and tell us about your charitable program."

    Brooks Boyer

    After 10 years with the Chicago Bulls, Brooks joined the Chicago White Sox in 2004 as VP Marketing. His goal is to have White Sox fans "connect with the team and its players while providing an unmatched fan-focused entertainment experience." In essence, according to Brooks: "My job is to convince fans that the White Sox are winners. Make them more relevant to the fan base. I want to ensure that every time a fan visits the ballpark, we offer an opportunity to make a good impression."

    Brooks noted that the team sells 40% of its tickets in town, so the team lends itself to very localized marketing. "I tell our management that marketing will fill the seats from April-August, but the team needs to do the rest from September-October."

    The White Sox approach to sports sponsorships is that they are tailor-made to the marketer. "We want the sponsorship to succeed, so we will work with any marketer on a program and budget that will meet their needs. Entering into a sponsorship just for money is a waste of everyone’s time and resources."

    Brooks took exception to media perceptions that the White Sox are "cheap" when it comes to bankrolling player salaries. "We have a $70 million player payroll, the fourth highest in the AL. The money we generate goes back into the team to pay salaries, not to pay back investors. Spending lots of money isn’t always the key to success."

    The Jordan Effect

    A prolonged discussion ensued about the impact that Michael Jordan had on celebrity sports endorsements. Kurland believes that one big difference with the current Bulls team is that it more of a team player mentality, with no one athlete commanding attention. Although, he admits that Jordan helped popularize the Bulls like no other Bulls player ever will. .

    Player Demeanor

    Boyer notes that the White Sox instill an attitude in their players that autograph signing is an important part of their job. The White Sox sponsor events that encourage autograph signing. All players go through media training, as well.

    Kurland stated that Bulls players receive training and guidelines on how to interact with fans. Fan interaction is greatly encouraged. All rookies go through a transition program when they become professional athletes. It includes PR training.

    Leitao said that it is becoming increasingly tough for amateur athletes to recognize that they are under intense scrutiny by fans and the media. Players must understand the importance of connecting to their fan base, which will give them valuable training if they turn pro. "Now a story about an athlete acting improperly, even in college sports, can take on its own life, showing up on the networks and cable sports and news shows."

     

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