Categories
Endorsements Sports Agents Sports Business Tennis

The Value Of Marketing And Endorsements

Marketing and endorsements are huge components of many sports agencies. For one, agents often take a much larger cut on marketing and endorsement deals (normally 15-25%) than on contractual deals with professional teams (normally 3-4% depending on sport). Also, for many professional athletes, an agent is not needed to negotiate with teams because…there are no teams (golf, tennis, etc.).

Thus, the marketing and endorsement side of the business is a priority for many agents. Another person who takes interest in the subject is Harvard Business School professor Anita Elberse, who recently dissected this section of sports business in an article that has a sub-focus revolving around Maria Sharipova, in particular [Marketing Maria: Managing the Athlete Endorsement].

Some important extracts:

  • PricewaterhouseCoopers estimated that the sports industry accounted for around $50 billion in revenues in the United States in 2007, up from just under $35 billion in 2001. On a global scale, total revenues are expected to be nearly $100 billion this year, compared with $70 billion in 2001.
  • If a company is looking for an endorser with global star appeal, it has a reasonably large group of male athletes to choose from, but only a select few female athletes. This likely has contributed to Sharapova’s phenomenal marketing success.
  • Companies try to find athletes with brand attributes that match those of the products the athlete is asked to endorse, or at least that match the attributes the company hopes to associate with those products. Other aspects play a role too, such as good looks, public-speaking skills, and overall image.

Maybe Barbara Bonic will be the next Sharapova? That would be nice!

-Darren Heitner

By Darren Heitner

Darren Heitner created Sports Agent Blog as a New Year's Resolution on December 31, 2005. Originally titled, "I Want To Be A Sports Agent," the website was founded with the intention of causing Heitner to learn more about the profession that he wanted to join, meet reputable individuals in the space and force himself to stay on top of the latest news and trends.

Heitner now runs Heitner Legal, P.L.L.C., which is a law firm with many practice areas, including sports law and contract law. Heitner has represented numerous athletes and sports agents as legal counsel. He has also served as an Adjunct Professor at Indiana University Bloomington from 2011-2014, where he created and taught a course titled, Sport Agency Management, which included subjects ranging from NCAA regulations to athlete agent certification and the rules governing the profession. Heitner serves as an Adjunct Professor at the University of Florida Levin College of Law, where he teaches a Sports Law class that includes case law surrounding athlete agents and the NCAA rules.

2 replies on “The Value Of Marketing And Endorsements”

What about the retailers that do not report endorsement sales to the agents? Then the athlete receives nothing, as well as the agent??
How can this type of greed be controlled?
I went into a store a few weeks ago, in the east bay area, they sell suits, golf and resort wear endorsed by athletes – that they do not even care about. (why do I say this?)
Well, I over heard the lady (employee i assume) say “those stupid baseball player’s don’t know anything”, as she stormed into her office. Did not even care if I heard!!! This store was selling Vida Blue golf shirts – interesting!?? Isn’t he a Baseball LEGEND? Did I hear her call Vida a stupid baseball player?hummm

My 2cents
ASportsFan

Comments are closed.