ADIDAS AND REEBOK MERGES IN AUGUST 2005

When I first heard or Adidas and Reebok doing a joint venture in year 2005, my initial thought was why? I thought why? because they are both household brand names and I did not see why it would be necessary to collaborate. However, Adidas felt that they could do better together than apart. Bringing both brands together would build a driving force mechanisms to the world of sports.

Germany's Adidas Saloman agreed to buy Reebok international for 3.1 billion euros. Although, Nike is a huge brand as well, Adidas & Reebok combined are ready to give NIKE a run for their money. Investors are willing and ready to give NIKE a huge challenge, with this new collaboration with Reebok and Adidas. The key to this this collaboration is for Adidas to expand their geographic reach. Adidas will focus on one geographic area, while Reebok will focus on another. The most important geographic area for Adidas is North America, as Adidas feels it is very imperative to conquer. Adidas goal is to be number 2 in the sporting goods market worldwide, and to create footwear and apparel that addresses a wider demographic spectrum. (187)

In 2005 the companies already saw $150 million dollars in annual savings collaboratively. This kind of money was seen through the world of Hip Hop music. Adidas and Reebok began to target NBA players and Hip Hop artists with endorsements, and product identity. Hip Hop artist Missy Elliott supported Adidas tremendously, while other Hip Hop artists such as Jay z & 50 Cent supported Reebok. Although, Adidas and Reeebok had their share of celebrity support, NIKE also had their celebrity support with Michael Jordan and Tiger Woods, as NIKE is not too much into the urban world, but have fairly made great advancement with these urban personalities. Adidas has been feeling heat from other brands as well such as Puma. However, this just drives Adidas to concentrate on a higher margin of innovation, along with its collaboration with Reebok.

Articles

http://www.businessweek.com/bwdaily/dnflash/aug2005/nf2005084_8340.htm

http://sports.espn.go.com/espn/columns/story?columnist=rovell_darren&id=2123332

Posted By: Sparkle Callahan

The MMA denies Major media outlets at their sport events

April 2011 Although the MMA (UFC) is a sport, the confidence of them going totally mainstream has been in doubt. I found this article about the MMA very interesting because although they may not be seen as a total mainstream sport. They have denied major sports reporters and major media outlets press credentials. When a sport denies major press, this is also a way of saying they are denying going mainstream. Media outlets, reporters, journalists, press, bloggers, social media Guru's and etc are all the driving force to make one obtain their public awareness. The question that I asked is "what would make a sport division banned press and media from their event?"

The MMA sports is arguing that press and media outlets, service false materials to their readers about the MMA. According to President of the UFC Dana White, he did not consider some press outlets stories worthy of his PR clip file. Dana White banned the most prominent media outlets such as ESPN and CBS. The journalists that were denied press credentials were long time media supporters of the UFC, which were  ESPN Josh Gross and Loretta Hunt. According to a spokesperson at CBS '' We serve a growing base of MMA fans on CBSSports.com, so we're obviously disappointed the credential request was denied"

http://sportsillustrated.cnn.com/2011/writers/jeff_wagenheim/04/13/credentials/index.html

http://sports.yahoo.com/mma/blog/cagewriter/post/Dana-White-We-only-credential-real-media-?urn=mma-156706

http://www.cagepotato.com/dana-white-never-forgets-espns-josh-gross-cbs-sports-loretta-hunt-and-sherdogs-jeff-sherwood-denied-media-credentials-for-strikeforce-diaz-vs-daley/

Posted By Sparkle Cllahan

NBA LOCKOUT 2011-2012

This newly lockout controversy with the NBA seems to be the biggest dispute within the past 5 years. After union president Derek Fisher non chalant attitude and the athletes stubborness, I find it quite odd to see former Chicago Bulls player Dennis Rodman state his opinion on the lockout. According to Rodman "I just think that…the players should bow down….In 1999 we (were locked out) and missed half the season, Most players don't give a [expletive] about the game. They want the money and all of a sudden they want unity. I'm not taking the owners' side. I think the players should look at themselves." Of course having this lockout cause athletes,  loose out on their money, although the flip side is, should the athletes just sign an agreement without mutual benefits?. According to Rodman the athletes need to just compromise and take the agreement for less money, instead of loosing money. Seasons are being canceled, fans, supporters and people are without jobs due to this 2 month lockout.


According to Gary Roberts "I said a year ago that the NFL would settle in the August, and I said the NBA would not settle and would probably lose the entire season, and I think that's exactly what's going to happen." The NBA loosing out on its entire season would definitely be a total lost for the athletes, because they will still have and unsettled case and a lost of revenue. According to NBA executive Billy Hunter he saw the day that 2011-2012 NBA regular season games would have to be canceled. I wonder why did Billy Hunter foresee this episode of events?


I really think that the owners should be able to make some more reasonable offers in regard to the agreement for the athletes. Also, it seem sort of selfish because their are fans and supporters who have paid for there season tickets in advance and had to get a reimbursement. This kind of behavior within the NBA is very inconsiderate and maybe more damaging to the brand than worrying about revenue. However, without a brand there is no way to really retrieve revenue. As of right now October 16, 2011 there still has yet been a determination in regard to this lockout, hopefully soon a decision will be made and the NBA can move forward or there will be an entire season missed!


http://www.usatoday.com/sports/basketball/nba/story/2011-10-11/What-you-need-to-know-about-the-NBA-lockout/50735802/1
http://sports.yahoo.com/nba/news?slug=ycn-10205927

Marcus Jordan is The cause of UCF loosing its Adidas Sponsorship

In the world of sports there are many stipulations and protection laws that must be in place, for the protection of trademarks, patent laws, and copyrights. Over the years there has been many controversies with sports teams taking legal action against another team or company because of this matter. However, it is important to protect all brands, logos etc to avoid any sort of legal action.

Recently, Professional basketball player Michael Jordan son Marcus Jordan denied wearing an Adidas sneaker during his game. But, instead insisted he wear his father air Jordan Nike Air sneakers, although Adidas was sponsoring the UCF. When Marcus denied wearing the Adidas sneaker during his game, Adidas then terminated their sponsorship with UCF. The UCF is now suffering from any future sponsorships because of this matter. Part of the sponsorship all coaches, and athletes were suppose to wear the Adidas clothing. However, I guess Marcus saw this as a conflict of interest/trademark issue with his father brand Nike Air. The UCF lost its 3million dollar adidas sponsorship and any future Adidas sponsorships is also in question. However, Marcus argues the fact that the school said he could wear his father sneakers, although they knew they had a contract with Adidas. It was very important for Adidas to have the most famous athletes to wear their apparel during the UCF games. It would have been a mutual benefit for Michael Jordan's son Marcus Jordan to wear Adidas sneakers during the game.


Resources;

http://www.huffingtonpost.com/2009/11/05/marcus-jordan-wears-dads_n_346783.html

http://blogs.orlandosentinel.com/sports_bianchi/2009/10/i-dont-blame-adidas-i-dont-blame-them-one-bit-in-the-controversy-regarding-what-brand-of-shoes-marcus-jordan-the-son-o.html

http://chicagoist.com/2009/11/05/jordan_wears_nike_adidas_bids_adieu.php

Posted By Sparkle Cllahan

Facility Management Post

In the world of sports they are suffering financial strains and changes due to the economy. There have been closed offices, lay offs, minor professionals leagues also have folded. However, throughout the financial strains and economical changes there are creative ways a facility manager can bring revenue, during slow times.

            There have also been tremendous financial cuts in the college world of sports. In Florida, football team the Florida Gators according to the Orlando Sentinel has been affected. Team Hats, jackets, and shirt sales has dropped and in 2009 football ticket prices were not increased, which was a reward to the fans. In other smaller colleges there were severe budget cuts and some sports eliminated on campus altogether. However, as a facility manager there are ways to create revenue to avoid these types of situations to occur. As a college student they are always looking for the next big event at their college.

            Since, I have experience in the field of event planning, I will first look into an event, or concert to generate funds for the college campus to keep their athletic department running. College students love entertainment and celebrity artist coming to their school to perform. As facility manager I would plan for a celebrity concert and sale tickets. I would choose a popular mainstream artist that I have a secure business relationship with, to perform for the College for free, but for a news worthy cause. This will be a mutual benefit between the college and the entertainer. The entertainer will gain press and philanthropic recognition, while the college will be able to keep their athletic department going by ticket sales. All proceeds earned from ticket sales will go to the college athletic department. Of course I would prepare this concert in advance for a great outcome and sale the tickets for $25.00.

            When a new arena or stadium is built it generates revenue because it’s new and the sports fans will want to support their favorite team. As a facility manager when there maybe economic losses for the bigger teams than college leagues, there are different approaches that are needed. The amenities in the facility is what matters most, you want to attract your customers by having the amenities they want at their fingertips. For example, I live in NYC and in my downtown area of Brooklyn rap icon JAY Z has partnered up with Brooklyn to build a stadium in the middle of downtown area where all the shopping malls, food, and businesses are located in Brooklyn. Many residents are complaining about the traffic that will be increased in their area, while others are excited that new jobs will be generated.

            Currently, the stadium is still in construction and is expected to open in mid 2012. In the Bronx area of NYC currently there is Yankee stadium where all the major baseball games occur. Yankee stadium has been in the Bronx for a very long time and is considered a historic site. The main key to success as a facility manager at the new stadium in Brooklyn would be to make sure the amenities are much better than Yankee stadium. As a facility manager I would make tickets reasonable and affordable for the fans, but I will apply a kids section for playtime, restaurants, better seating, a wider range of parking, High definition technology and more. The attraction of the facility will definitely generate revenue. The best key would be the best customer service and different amenities for all different groups of people.

 Video Link: : http://www.viddler.com/explore/sparkle1/videos/8/

RESOURCES:

http://www.frbatlanta.org/pubs/econsouth/econsouth_vol_11_no_3_sports_draw_fans.cfm

http://www.slideshare.net/celsesser/unit-3-sport-facility-management-and-event-planning

Posted By: Sparkle Callahan 

Tiger Woods sex scandal & his financial losses in 2009

I think Tiger Woods story of committing adultery on his wife was the biggest sports business story of the decade. It was a shock to millions of supporters, fans, family and media across the world when allegations of mega sport star Tiger Woods was cheating on his wife with multiple sex affairs. Due, to this high profile scandal Tiger Woods lost much respect from his fans, media and lost his wife, but on a financial scale he lost 22 million dollars worth of endorsement funds in year 2009. As one of the highest earning American athletes according to sports illustrated annual "Ranking 50" in 2009 Tiger Woods was making $92 million dollars in endorsements and in 2010 he was making $70 million. That is a 22 million dollar declination of endorsements in Tiger Woods financial lifestyle.

Some of the endorsements that backed out on Tiger Woods was AT&T, Accenture, Tag Heuer, Gillette, Gatorade, Electronic Arts, and Upper Deck. However, NIKE remained faithful as a sponsor of Tiger Woods as they saw his downfalls as something that will soon pass and Tiger will be back at sports greater than ever. Nike has been sponsoring Tiger Woods since 1996 and pays him 30 million dollars a year. Tiger Woods loosing endorsements also had an effect on his management company IMG. Tiger Woods lost of his endorsements cost his management 4.6 million dollars in fees. His sex scandal also cost him the following:

$180 million in personal earnings
$110 million in advertising income
$23 million in tournament prize winning
$30 million in fees of 3 golf courses
$17 million in appearances fees
$591 million in industry losses
$96 million of the woods brand EA sports Golf video games
$40 million in lost PGA tour ticket sales

As a multimillionaire this sex scandal in 2009 cost Tiger Woods alot of financial damage and lost of fans and a divorce from his wife. I believe this was the biggest business sport story in the decade because of the amount of Tiger Woods losses and although I'm not a huge Golf fan I knew all about the allegations set on Tiger because of the media. This case against Tiger was very high profile and it was scene and heard daily in 2009 when it first hit the tabloids.







Posted By Sparkle Callahan

Resource Links:

http://www.businessinsider.com/tiger-woods-lost-22-million-in-2010-endorsements-2010-7

http://www.usatoday.com/money/media/2010-06-20-endorsements-tiger_N.htm

CNBC Video Link:
http://video.cnbc.com/gallery/?video=1368367744

Interview with Celebrity Publicist/Manager Soulgee McQueen

Interviewer: Sparkle Callahan

Guest: Soulgee Mcqueen Celebrity Publicist/manager

Company: Mc Queen media Entertainment

Sparkle: Thank you for allowing me to interview you about the topic “Negotiation” within the entertainment industry.

Soulgee: Your welcome!

Sparkle: When negotiating a deal for your clients how do you separate the people from the problem? In other words how do you contain your emotions when it seems you may not be getting all you may expect for your client?

Soulgee:  My first approach when negotiating during meetings with different industry professionals is breaking the ice with them. Breaking the ice with them causes everyone to get comfortable. I may start out with talking about something we all have in common besides the project at hand. My emotions will never be involved because my main focus is atleast to walk away with something more than what I came in with. Emotions affect many negotiating deals because of unrealistic expectations that are set. Go into these meetings with an open mind to get an understanding and hear different point of views.

Sparkle: In every meeting do you obtain mutual benefits when negotiating for your client?

Soulgee: Honestly speaking some projects require more than one meeting, but the best thing about that is, when you have 2 or 3 meetings about the same client project you can almost guarantee there is some interest from the other party. The mutual benefit in this case for me would be I had more than one meeting, and now I have new ideas to pitch. Most times with new talent I see a situation such as this as a mutual benefit. In this circumstance it is considered mutual benefits because we both have a shared interest in regard to the same new client.

Sparkle: When representing new talent does their status of being a new artist have an affect on your negotiation approach?

Soulgee: I’m very well known in the industry for breaking and representing new talent. When negotiating new talent to music labels I have to present all their accomplishments thus far. I have to sell them to the labels and be confident of the great success they can produce. But, because I been in the entertainment business for quite sometime now most labels show interest because of my experience. New talent is most times the best talent to break because of their new status. In my experiences I found breaking new artist much easier than mainstream artist.

Sparkle: Thank you again for taking the time to sit and converse with me.

Soulgee: Your very welcome!

Posted By: Sparkle Callahan