This week’s lecture focused on Marketing, Media and Endorsements and their application in regards to Athletes. Catering to many students who had little knowledge in marketing, the course began with a quick lesson in regards to the Marketing Mix, in particular in relation to the Marketing P’s.

The first guest speaker of the day was Dr. Sheila Nguyen, who is currently a lecturer at Deakin University. Dr. Nguyen spent much of her time in the US, having previously worked for William Morris and helped market many leagues and brands, including the NFL. In fact, she was part of the team responsible for creating the movie “Invicible” starring Mark Wahlberg.

Dr. Nguyen’s insight to the industry was a fascinating one, and drawing on her many facets of experience she garnered a valuble blueprint to follow. The marketing of a sports property does not follow a direct chain, but rather it works in a circle. The Marketing Circle includes Assessing, Measuring, Optimizing, Fine Tuning and Implementation. Once completed, the cycle begins again, as the said property should be continually assessed. Drawing on many examples from the US, she highlighted where marketers got things right, and where they failed.

Another point Dr Nguyen brought up was in regards to the public’s perception of what sports marketers do. Surveying sports fans close to her, she concluded that the public think all sports marketers do are give away items, create billboards and sell merchandise. She described this as only 10% of what actual sports marketers do.

The next part of session had a heavy focus on branding and promotion. Sporting Teams and Athletes are unique in the sense that they have a high level of brand loyalty. Due to this, sports marketers need to approach their objectives differently. Looking at the history of sports advertising, the class came to an interesting conclusion. In the 90′s you would see Athletes eating fast food when promoting them in ads. Nowadays, the ads cut away prior to Athletes eating. This could be due to the public’s perception changing in regards to healthier eating. One just needs to look at the MJ/Larry Bird McDonalds ad and the Dwight Howard/Lebron James one of recent times.

The second round of special guests of the day were Sports Agent Tom Petroro and his client, current AFL player Nick Dal Santo. Tom started off by looking through all the avenues of endorsements, and how each related to Australian Football League clients. Most notably, he mentioned that many of the top players set up a company that owns their image rights, ensuring that they are protected. Once Nick Dal Santo arrived, Tom and Nick discussed the subject from an Athlete’s point of view. Nick Dal Santo currently has deals with Puma and Channel 9 (In regards to “The Footy Show”), and mentioned what obligations he has to these companies.

This was the first of a two-part module on Media, Marketing and Endorsements. The next report will conclude with the second half.

Course Report: Accelerated Sports Management Program – Part 2 from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

I have been given the opportunity to attend seminars associated with a newly designed course to help students learn more about the Athlete Representation Industry. Run over seven sessions, the course covers areas such as Managing a Client’s Career, Ethical Considerations, Medical and Endorsements to name a few. University students are eligible for funding, making it an attractive proposition for people who are interested in pursuing a career as a Sports Agent.

The first session I attended was in regards to Negotiations and Industrial Relations, which is very topical at the moment considering the NBA has just got out of its lockout and the Australian Football League (AFL) is still resolving its new agreement. The seminar covered areas such as Planning, Contracts and Dispute Resolution. I will now go into further details regarding the areas discussed.

The day started off with a talk from one of the most respected people in the business, Paul Yeomans. Paul had previously worked as an AFL Agent for Stride Sports Management, but has moved into Consulting. Through his business, PMY Consulting, Paul has consulted many top companies, but more importantly the AFL Players Association in regards to its new Collective Bargainning Agreement (CBA). Paul explained that the AFL CBA process is a lenghty one, with there being 8 months between the AFL Players Association first proposing a deal and the AFL countering with its offer.

The current negotiations are quite interesting, with the two sides wanting several different things. The AFL wants to offer a set amount of money in each of the years of the CBA, with the AFL Players wanting a percentage. While both sides want to see the game grow, the AFL Players feel that their monies should not be used to subsidise expansion, an area where the AFL disagrees. There is a very small chance that this will not be resolved, as the clubs are publicly owned, as opposed to the systems that operate elsewhere.

Paul also gave some tips on how to get in to the industry, and a cross section of the roles of the people he employs.

Next up there was a lecture on Negotiations. This included the legal requirements of preparing an agreement, the necessary elements that needed to be included and how the negotiation process works.

An interesting area that was addressed was the process of conflict resolution. The materials provided by the course thoroughly outline the tools in which can help in effectively resolving disputes. The lecture also briefly noted on grievance and industrial action.

In the afternoon, the audience were treated to a lecture by Stride Sports Management GM and current Sports Agent Alex McDonald. The timing of the talk was particularly current as it was the same day as the AFL Rookie Draft, which Alex had attended that morning. Alex’s insight into the contract process was a fascinating one, with him offering examples and challenges he has faced when negotiating with players and clubs. He highlighted the need for constant contact, and to ensure that both sides are satisfied at all times. If anything was to be taken away from the talk it was that communication and knowledge are key.

The extensive reading materials enable students to complete the required assessments with confidence. The major assignments allow students to be creative, with one including drafting an agreement for a player and their sporting association.

The course takes a break over Christmas, but look out for the next post regarding Media, Marketing and Endorsements.

More on the course can be found at their website.

Course Report: Accelerated Sports Management Program. Part 1. from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

1. You will not become an Agent straight away. Don’t expect things to happen overnight, the road to becoming an Agent is a long one. Even if you somehow manage to land a job at an Agency, you’re going to have to prove your worth to make the next step up.

2. Be prepared to work for little or no money for a while. Most Agents started out with an Internship at an Agency and went from there. Often, Internships are unpaid, so don’t think you should be paid for your work, because there are thousands who will gladly take your spot. If you do land a job at an Agency, most entry level positions, such as mail room or admin, will pay very little.

3. Social Media is your friend. Having tools such as LinkedIn and Twitter are an enormous help to network. Don’t know who to follow? Start with Me, Darren Heitner and SportsAgentBlog. There are so many people involved in the sports industry on Twitter who can provide a wealth of knowledge. A search of the terms #sbchat and #sportsbiz will help you find them. LinkedIn is another great resource, which can help you keep in touch with your contacts.

4. Don’t be afraid to ask questions. This is pretty self explanatory. If you want to know more, then ask people in the industry for their stories, pitfalls etc. Which brings me to the next point…

5. Always be learning. You can never know too much. Don’t think just because you have a Sports Management degree you can start managing clients. Read publications, journals, books etc. to keep ahead in the industry.

6. Attend Conferences. As I have previously stated, the sports industry is a unique one. Attending sports business conferences will enable you to learn and network with fellow people who are just as interested as you. There may even be companies in attendance and job opportunities provide.

7. Bring something unique to the table. You need to find something that separates you from others wanting to be an Agent. Drive will only get you so far. Maybe you know a few athletes who need representation, or maybe you have some ideas of how to generate new revenue streams for clients. Either way, think of something that will make them want you to be part of their team.

8. Be prepared to hear ‘No’ a lot. It took me 9 years to land an internship with an Athlete Agency. This was after working in Sponsorship at IMG and writing on this blog for 5 years. It isn’t easy. Be prepared to hear ‘No’ more than ‘Yes’. The main thing is to not give up on your dream.

9. Just because it’s not an Agency doesn’t mean it won’t help. When applying for a job or an internship, don’t just apply at Agencies, or you may be disappointed. Start at your local sports team or event company. Build up a diverse Resume so you can get closer to that internship. The skills you learn from working outside of an Agency may just benefit you when you are in one.

10. There’s no such thing as “It’s not my job.” To succeed in the business you need to live by this mantra. There will be times when you have to do things non-sports related, such as run errands. Be the person who performs these jobs and you’ll be noticed in the long run.

While this is just a small list to help steer people in the right direction, there are many points that are often overlooked. Good Luck.

So You Want To Be An Agent? Here’s 10 Tips To Help You There from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Forbes Magazine posted an excellent article last week highlighting the difference between the highest paid athletes of 1991 and today. To say the make up of the list has changed would be an understatement.

The number 1 highest paid athlete in 1991 was a Boxer, Evander Holyfield, making $60 million. In fact, in 2nd place was another boxer, Mike Tyson. Boxers also took up the 4th and 7th places. Compare that to today where not one Boxer falls inside the top 20, with only Floyd Mayweather or Manny Pacquiao likely to make the cut in the next year. This highlights two things. First, Boxing’s decrease in popularity. The sport doesn’t have the same clout it used to, with only the aforementioned Boxers bringing in the bucks. Second, it highlights just how much pay-per-view impacted the industry in 1991, which provides hope for the UFC for the future.

Another huge difference is the amount of athletes who play team sports. In 1991 there were only 4 players who played team sports in the top 20, with Michael Jordan at number 3 being the most notable. Fast forward to now and it is an entirely different landscape. With the significant increase in areas such as TV rights and stadium deals, players plying their trade in the big leagues are now coveting most of the top spots. This is also helped by large off-field deals in the endorsement arena. Kobe, Lebron and A-Rod all headline the list of team sport players making the top 20 today.

Following on with team sports, there’s one sport that has seen a meteoric rise by having an abundance of players breaking into the top 10. Possessing no players in the top 20 in 1991, Soccer now occupies three spots in the top 10 with Beckham, Ronaldo and Messi taking those spots. This increase can be attributed to the globalization of Soccer and its players. These players are now household names worldwide, and the increase in audiences in markets such as Asia has helped line the pockets of these stars.

Golfers still rank as high as they did in 1991, with Tiger filling the number 1 spot and Phil Mickelson at 5. Arnold Palmer was the highest paid golfer, and despite the endorsement dollars skyrocketing since 1991, he would not be short of cash with his beverage line of Arizona doing very well. Jack Nicklaus and Greg Norman rounded out the golfing fraternity.

Formula 1 drivers remain just as well paid as 1991, with three drivers at each juncture.

With only Federer and Nadal charting this time round, Tennis has lost some steam. In 1991 the likes of Becker, Edberg, Agassi, Seles and Graf were all featured. The endorsement dollar has certainly stagnated since these times, with only the true champions contending with the world’s athletic elite. Is it that companies are losing their luster for Tennis, or is it just other sports have moved ahead?

An alarming stat is that at present there are no female athletes featured in the Top 20. With Tennis and Golf the most likely to appear, Seles and Graf made the cut in 1991, however not even the highly endorsed Maria Sharapova could crack the list this year. Alas, there is some hope for the future. Li Na, the Chinese born Tennis player, has signed a multitude of contracts including a lucrative deal with Mercedes. She is the star that the world’s biggest country has been looking for, and if she has continued success there is no reason why she can’t upset the ‘Boy’s Club’ that has become the top 20.

So what, if any, changes can we expect in the future? With the increased popularity of Soccer worldwide and the subsequent commercialization, there is no reason why in the near future half of this list cannot be Soccer players. Team sports’ athletes in general should steadily increase their rankings as TV rights deals continue to break records. Golfers will always feature heavily due mainly due to it’s popularity. One area that doesn’t feature, which may soon, is the UFC. The sport has exploded over the past few years, and with pay-per-view it is possible it can reach Boxing like levels.
As previously mentioned, Li Na is the best hope for female athletes to crack the top 20. Others that could sneak a place include Danica Patrick (If her move to NASCAR proves successful), Maria Sharapova (By continued growth in endorsements) and Caroline Wozniacki, who at 21 appears to have a long career ahead of her.

1991 To Now – What’s Changed? from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Source: Herald Sun

A lot of uncertainty came with the introduction of the new Australian Football League (AFL) franchise Greater Western Sydney (GWS). As seen in the previous season with the Gold Coast Suns, players were able to be ‘poached’ from other clubs with the clubs who lost players receiving one or two compensation picks.

The news of Tom Scully defecting from Melbourne, the club who drafted him No.1 overall two years ago, should not be a surprise. There was no way Melbourne was willing to match the $6 million over 6 year deal put forth by GWS, with $2 million being paid in the first year. Many Melbourne faithful were outraged by a player only drafted two years before leaving so easily. But Melbourne fans shouldn’t be hasty at thinking they were the ones left punished.

Melbourne has received two picks in lieu of Scully leaving; a first round pick selection and a mid first round selection. The first round selection will fall after their initial first pick. So if Melbourne receives pick 9 in the draft, it could use this compensatory pick at pick 10. The mid first round pick will be slotted in after the pick of the team who just missed the finals, which is likely to be around 11-15, depending on how teams use their picks. The bonus of these picks is they can be used anywhere between the 2012-2015 drafts.

With this in mind, the 2012 draft is shaping to be a ‘Super Draft’ – a draft stacked with immense talent that will help a club like Melbourne, who is rebuilding for the future. Having a total of three picks in the first round will certainly give the team an advantage over other teams in the same position. Alternatively, having three bargaining chips in trade week will certainly help bringing high quality players from other teams to the club.

Now let’s take a quick look at what Melbourne lost – Tom Scully. Having played 31 games for the club, the midfielder missed several games because of a knee injury; one that Dr Peter Larkins believes may hinder him from playing a full season. Scully had surgery on his left knee before he was drafted, and that injury plagued him this season, allowing him to only play 10 games.

So while many Melbourne fans may be up in arms about the prospect of losing their prized player, it appears things are not as bad as they seem.

Why Melbourne Won Out In The Tom Scully Deal from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

With the NBA still no closer to a resolution over the lockout, many players are upping their interest in playing overseas.  First off, it was the fringe players who sought out deals, realizing that their playing career in the NBA would be most hurt  by the stoppage.

Noting this, recently re-signed Portland Trailblazers guard Patty Mills rejected overtures from Europe to come back to his hometown of Melbourne, Australia to sign with the Melbourne Tigers. Patty Mills could have accepted more money elsewhere, but the idea of playing in his hometown won him over.

Australia’s NBL isn’t a particularly strong league, with crowds ranging between 2,000-5,000, and sometimes more for blockbusters. With the addition of Patty Mills, a growth in crowd numbers of around 20% per game would not be out of the question, which would result in a win for the league.

The ‘Crown Jewel’ of Australian Basketball is by far Andrew Bogut. The former No. 1 overall pick has flourished in Milwaukee, and his success has led to increased coverage in his home country. Whilst Andrew would love to play in the NBL during the lockout, there is one major hurdle – his insurance.

With Andrew due to make around $40 million over the next three seasons, he wants to make sure his insured in the case that he goes down due to injury. The insurance figure alone is $500,000.  This has scared off many teams, leaving primarily the Sydney Kings doing the most wooing.

I don’t think think the salary paid to Bogut during his NBL stint is the major factor, but more-so the clubs facilities and ambitions. With the Sydney Kings operating in the biggest market in Australia, this could be the deciding point.

The interest in playing in Asutralia’s national league doesn’t just stop at the two Australians. Patty Mills’ Portland teammate Wesley Matthews recently had a twitter exchange with Patty about whether there’s room down there for him. However, with only two teams holding spots for imports on their rosters, the move seems unlikely.

Now, a new player has emerged – Bogut’s Milwaukee teammate Brandon Jennings. Jennings recently tweeted the following:

“Seriously thinking about going to Australia to play with @AndrewMBogut………..”

“I’ll come to Australia if @AndrewMBogut let me borrow couple cars while i’m out there….”

While you can’t read too much into the tweets, it certainly opens up the possibility, especially with Andrew Bogut driving the move. However, a club would have to move its current import for him if it were interested.

The NBA lockout certainly has afforded opportunities to many overseas leagues and fans to see the best talent in basketball, and it appears Australia is one of many who will be in luck.

With Patty Mills Signed, Will Andrew Bogut Follow To The NBL? from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

After what seemed an eternity, Australian’s superstar Harry Kewell has finally signed for Melbourne Victory. In what is a massive coup for the A-League, the Socceroo has decided, at 32, that the time is right to come back to his home.

But his deal is a lot more complicated than your standard contract, and sets quite the precedent. Whilst no exact terms have been released by either side, several media outlets have reported the following terms:

First and foremost, the Football Federation of Australia (FFA) is paying Kewell $500,000 per year. It is not uncommon for leagues to pay a portion of a player’s salary (See the AFL). However, Kewell had his image rights clause amended. Instead of the A-League holding all rights over the use of his image, it can only use his image in situations where it doesn’t conflict with his sponsors. No doubt the FFA won’t be happy with this, but it still leaves some wiggle room.

In terms of his Melbourne Victory deal, it is understood he will be receiving a base salary with heavy incentive clauses tied into the club’s revenue. Harry will receive 70% of any monies generated from him being at the club. The way this will be distinguished is by using last year’s figures. This includes areas such as memberships, gate receipts and merchandise.

So looking at these figures, one can make some assumptions. The membership figure pre Harry Kewell was hovering just under 10,000. Now that Kewell is at the club, the phone has been ringing off the hook for new memberships, with the entry level for an Adult being $190. It is not out of the question that Harry will bring in between 7000-10000 members, putting his cut at around the 1.1-1.3 million dollar mark.

In terms of attendance, Melbourne Victory averaged a little over 15,000 a game last year. Taking into account that a) 7-10k members won’t need gate tickets and b) most of the games are played at a 32,500 seat stadium, it is possible that the attendance may rise to 25-27k a game, with the bigger games attracting 40k. The bigger games are played at the roughly 53,000 seat Etihad Stadium. There are 14 home games this season. If he plays every one of them, and the gate increases by an average of about 12,000 a game, he could be looking at a figure over $1.5 million.  With more memberships comes more jersey and general merchandise sales, which Harry will receive a percentage of as well.

Adding all these factors up, it is quite possible that Kewell may make over $3 million in the first year, with a slight decline in the following two years. This would still equate to a higher pay packet than what he would receive overseas. However, there is the possibility that this groundbreaking deal could backfire and he ultimately could receive less than what he is worth.

The A-League itself is a pretty big winner too. With the caliber of players such as Harry Kewell and Brett Emerton returning home, it gives them quite a bit of leverage when re-negotiating its TV rights deal, which is due to expire in 3 years.

However, it’s the precedent that has been set which is a concern to some. While there is no one near as marketable as Harry Kewell in the realm of football in Australia, what’s stopping an international star from commanding the same deal? When players can command this sort of revenue sharing deal, it can leave clubs in financial turmoil, struggling to pay for other expenses after the star has taken his cut.

Breaking Down The Harry Kewell Deal from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

As the NFL finally resolved its lockout, another national football league is heading towards one.

The Australian Football League’s (AFL) Collective Bargaining Agreement (CBA) is due to end after the current season, and the sides are still stuck on a few important points, one of them being the same problem the NFL faced – Distribution of Revenue.

In the current CBA, there is no fixed percentage of revenue allocated to players, but the distribution is usually around 22%. What the players are looking for now is a figure of 25-27%. That’s not a typo. Only 25-27%. Compared that to what players earn in leagues such as the NBA (57%), NFL (About 48%) and the NHL (54-56%), and that is a minuscule amount.

Not only do the players receive a relatively small percentage of revenue, but the rookie pay scale puts players who are taken in the later rounds annual salary under the average wage of Australians. A third round rookie will receive a little over $51,000 plus match payments of $2,900 per match in his first year. However a player who is rookie listed receives only $34,600, with many never playing a game. The average Australian wage is around $68,000. Add in the fact that many of these players will have relatively short AFL careers, it stresses that this area needs to be addressed.

While the players have stressed they will not strike to push through a deal, they have been quite vocal in the possibility of protesting in other ways. This may include covering the AFL logo on their jerseys, boycotting the Brownlow Medal count (MVP award) and wearing red armbands to show their bond. Other drastic measures have also been announced, such as boycotting the pre-season competition or the International Rules series.

The battle, however, is being played out a little different to that of how the Big 4 operate. The AFL clubs aren’t owned privately, so the negotiations are between the AFL’s Chief Executive Andrew Demetriou and the AFL Player’s Association (AFLPA). This would lead you to believe that with less parties involved, a deal will be struck sooner. However this is not the case.

The AFL has already come to the players and offered a flat figure of $1.1 billion over 5 years, but the AFLPA found this unacceptable. They believe, with the new TV rights deal in place next year, that this figure severely undervalues their contribution to the sport.

With only 4 rounds of the regular season left, there doesn’t appear to be a sense of urgency about the negotiations, which should leave fans worried judging by the time the NFL and NFLPA took to agree to their deal.

The players aren’t asking for the world, and the AFL should be grateful they aren’t asking for a figure in the region of their overseas counterparts.

Lockout Drawing Closer for the Australian Football League from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

This year’s Congress will be held at the JW Marriott Marquis in Miami, Florida.

The Panel List reads as a “Who’s who” in the industry including:

• Bud Selig, Commissioner (MLB)
• Chris Parsons, Vice President (NFL)
• Peter Moore, President (EA Sports)
• Bea Perez, CMO (Coca-Cola North America)

These are just a few of the names who will be participating in discussion. There are also several breaks for opportunities to network. Not to mention several social events such as an early morning fun run and a networking reception.

Running through the list of Topics covered, the highlights include:

• “Rapid-Fire Roundtable” which includes discussion of important topics over the next 12 months with guests such as Stacey Allaster, Chairman & CEO, WTA; Scott Blackmun, CEO, USOC and Donald Fehr, Executive Director, NHLPA. With the NFL in lockout mode, this will definitely be a don’t miss discussion!
• “Sponsorship Value and Innovation: The New Realities of Sports Marketing” which will look into how social media is changing the face of sponsorship.

At a cost of $1,850 ($1,695 for SBJ/SBD subscribers), it is a little to rich for my bank account, though by coincidence, I will be in Miami during this time. If any like minded sports business professionals who are attending or in the area wish to contact me feel free to do so.

For a full rundown of the program and to register please visit here.

2011 IMG World Congress of Sports: March 30-31 Miami, Florida from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

High profile athletes such as Mark Lewis-Francis and Andy Turner employed his services, but when promised sponsorship deals failed to materialize, they thought something was up. Deals worth hundreds of thousands of dollars were agreed, but the athletes didn’t receive the money. Mark had claimed he had reached deals with athletes from high profile companies such as British Airways and Audi.

400m runner and Olympian Andrew Steele had this to say about the case: ”Looking back, it was something that was clearly too good to be true and I’m annoyed with myself about it.”

For a full rundown on this story head here

Olympic Agent Jailed for Fraud from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules