Tag Archive | "professional sports franchise"

Career Options and Alternatives: Beyond the Professional Sports Teams


Many Sports Industry candidates (Ex. College and Graduate Students) approach the job search with the goal of working for a professional sports franchise. These companies receive hundreds of Résumés per position. The positions usually pay low starting salaries as well. Remember, professional sports franchises are nothing more than small businesses (Generating $100,000,000 in annual revenues). The highest labor cost for the franchises are player salaries.

We advise all candidates to look beyond the pro-sports teams when seeking employment. Consider the companies who purchase commercial time during the live events. Most are FORTUNE 500 institutions, generating billions of dollars in profits. They would have the ability to offer higher starting salaries than the team organizations.

The Sports Business Daily recently published an article highlighting the largest sports ad spenders. Consider seeking positions with these companies as your initial entry into the Sports Industry. Pay close attention to the annual spending numbers. Use various search tactics to find the decision makers in the Sports Marketing/Sponsorship departments.
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Sports ad spending roars back
AT&T Mobility ousts A-B from top spot
By David Broughton, Research Director

Published May 2, 2011, Page 1
Font Size Resize Small Resize Normal Resize Large | Print | Share .AT&T Mobility dethroned Anheuser-Busch as the king of sports advertisers in 2010, a year that saw nearly all blue-chip brands increase their sports ad spending, according to recently compiled data from The Nielsen Co.

AT&T’s wireless division had an estimated $366 million in 2010 sports ad spending on television, according to the data, double what was spent in 2009. AT&T corporate spent an additional $63.1 million promoting the overall entity rather than highlighting a specific product, with nearly all of that coming during the Vancouver Olympics Games.

The increased spending by AT&T fueled a telecom category that as a whole committed $1 billion in ad spending in 2010, according to the research, up 41 percent over 2009. In addition, AT&T earlier this year announced plans to acquire T-Mobile, the No. 4 U.S. telecommunications company by subscribers. The combined 2010 ad spend of the two brands exceeded a half-billion dollars.

Other key findings:

The top 50 advertisers spent a combined $6.6 billion on sports advertising in 2010, up 27 percent over what the top 50 companies spent in 2009 and 22 percent more than 2008.
Forty-six of the top 50 brands increased their sports spending compared with 2009.
Overall, the 11 biggest spenders in 2010 were the same companies and brands as in 2009, though there was movement in the rankings among those top 11.
But while the telcos spent big, it was the return of the auto category that clearly drove the market in 2010, as manufacturers collectively made up 24 percent of the total commitment of the top 100 spenders. That marked the biggest such share of the sports advertising pie in at least nine years.

Just as the auto industry rebounded, five financial institutions made the top 100 list for spending in 2010, the most in at least nine years.

“Sports programming delivers broad overall reach while also over-indexing against the mass affluent audience,” said Charles Greenstein, Bank of America’s senior vice president of global sponsorship. “Sports, especially the NFL, aligned well with our objective of engaging with the mass market, as well as the mass affluent segment.”

The advertising marketplace started out hot during last year’s upfront selling period and that momentum continued during the year. In addition, sports ratings soared, driven by big events like the Winter Olympics and the World Cup, as well as the continued strength of the NFL. ESPN had its best year ever in terms of viewership.

The enhanced at-home viewing experience also helped drive viewership.

Spending information is based on standard rate-card prices for specific national and regional live and taped sports broadcasts on English and Spanish networks. The staging of the Olympics and World Cup can skew year-to-year comparisons for companies, making two-year comparisons notable in some cases. For example, U.S. Olympic Committee and FIFA sponsor Coca-Cola increased its ad spending by 160 percent over 2009, a non-Olympic year, but just 20 percent more than 2008. Procter & Gamble, AT&T and Chevrolet saw similar variances.

For the year, Anheuser-Busch dropped to the No. 2 spot in the ranking with an estimated $356 million spent. It is only the second time in the 17 years that Nielsen has been tracking such data that A-B has not held the No. 1 spot. In 2006, Chevrolet’s significant Olympic ad buy pushed the automaker to the No. 1 spot, ahead of A-B.

Among auto manufacturers, Ford led the way, spending nearly $305 million, and was the No. 4 overall sports advertiser. The auto category’s resurgence was driven largely by substantial increases in spending by European automakers. Mercedes-Benz, BMW, Audi and Volkswagen invested a total of $336 million last year, nearly as much as those brands spent in all of 2008 and 2009 combined.

Perhaps equally as significant as the actual amount invested was the fact that Audi, BMW and Mercedes each committed about 50 percent of their total U.S. ad spending to sports, representing a double-digit percentage-point increase for each compared with both 2009 and 2008.

Geico led strong spending in the insurance category.

Mercedes cracked the top 25 in spending for the first time, spending more than $108 million, according to the data. The company’s four-year deal with the U.S. Tennis Association to be presenting sponsor of the U.S. Open Men’s Singles Championship and the official vehicle of the U.S. Open began last summer and called for national TV media commitments.

Ad spending by categories

SEGMENT 2010 2009 2008 2007
Auto 23.80% 20.00% 21.90% 23.00%
Telecom 11.90% 10.40% 10.80% 11.60%
QSR/Pizza 9.60% 10.70% 9.90% 8.60%
Beer 7.50% 9.00% 7.50% 8.40%
Insurance 6.00% 5.70% 5.30% 5.40%
Movie 5.00% 4.50% 4.40% 3.20%
Credit cards 3.10% 2.90% 3.50% 3.80%
Financial 3.00% 1.50% 1.00% 1.00%
Soda 2.20% 1.80% 2.40% 2.20%
Pharmaceuticals 2.00% 3.70% 2.60% 2.70%

Note: Percentages are portions of total spending by the top 100 companies.
Source: SportsBusiness Journal analysis of data from The Nielsen Co.
Asian-based automakers among the top 100 spenders spent $806 million last year, an increase of nearly 50 percent over 2009 but a drop of 25 percent compared with 2008. In addition, sports made up less than one-third of the overall U.S. ad spending by those companies last year, down from 40 percent in 2008.

Financial institutions returned to sports, combining to spend a total of $265 million, a massive 146 percent increase over 2009 spending. The financial segment made up 3 percent of total sports spending last year, up from just 1 percent in recent years.

Insurance has become the fifth-biggest advertising category, according to the spending data. Companies spent $528 million last year, up 30 percent from 2009. Conversely, the pharmaceutical industry accounted for $172 million, or 2 percent of total sports spending, last year. That is down from more than 4 percent in the mid-2000s.

Top 50 sports advertisers (ranked by total sports ad spending in 2010)

2010 RANK
(2009 RANK) COMPANY/
BRAND 2010 SPORTS
AD SPENDING 2010 TOTAL
AD SPENDING % OF AD
SPENDING
DEDICATED
TO SPORTS CHANGE IN
SPORTS
SPENDING
VS. 2009 CHANGE IN
SPORTS
SPENDING
VS. 2008
1 (7) AT&T Mobility $366,313,812 $1,129,589,500 32.40% 102.80% 37.20%
2 (1) Anheuser-Busch $356,205,906 $440,676,094 80.80% 14.40% 8.70%
3 (3) Verizon $340,529,688 $1,134,530,125 30.00% 38.10% 45.90%
4 (2) Ford $304,976,281 $1,026,098,032 29.70% 22.70% 69.90%
5 (5) Toyota $240,029,368 $983,938,875 24.40% 18.00% 8.00%
6 (10) Chevrolet $238,965,192 $758,333,376 31.50% 43.40% 3.70%
7 (8) Geico $216,789,219 $544,623,000 39.80% 27.20% 58.90%
8 (4) MillerCoors $214,447,797 $284,931,469 75.30% -5.40% 94.80%
9 (11) McDonald’s $202,887,766 $721,521,000 28.10% 30.20% 18.40%
10 (6) Sprint $179,083,297 $512,211,688 35.00% -10.60% -3.50%
11 (9) DirecTV $175,414,641 $381,546,125 46.00% 4.20% 14.30%
12 (25) Nissan $160,993,935 $400,248,382 40.20% 105.90% -0.10%
13 (24) Coca-Cola $144,664,359 $227,839,172 63.50% 77.80% 19.90%
14 (16) Warner Bros. Ent. $138,607,172 $537,765,438 25.80% 25.30% 99.60%
15 (13) Southwest Airlines $131,300,672 $180,044,609 72.90% 2.00% -0.60%
16 (14) State Farm $129,327,820 $392,475,125 33.00% 11.10% 14.90%
17 (35) NFL $125,642,688 $138,397,391 90.80% -3.40% -2.50%
18 (18) Subway $125,315,508 $432,709,188 29.00% 26.70% 21.80%
19 (17) Lexus $124,981,059 $273,876,320 45.60% 21.70% 67.80%
20 (15) Taco Bell $119,644,273 $387,065,312 30.90% 5.40% 17.00%
21 (20) Microsoft $119,003,953 $410,796,500 29.00% 27.80% 226.20%
22 (59) Procter & Gamble $118,465,086 $1,823,321,625 6.50% 159.70% 56.60%
23 (19) Apple $110,513,805 $375,869,344 29.40% 16.90% 19.40%
24 (22) Dodge $108,997,629 $383,757,424 28.40% 24.70% -12.30%
25 (32) Mercedes-Benz $108,950,896 $236,049,964 46.20% 67.70% 51.80%
26 (33) Visa $106,875,414 $169,094,719 63.20% 69.20% -15.90%
27 (21) GMC Truck Division $105,901,206 $246,401,811 43.00% 17.90% 42.10%
28 (23) Hyundai $100,834,226 $405,273,016 24.90% 18.10% 48.40%
29 (29) Honda $99,909,714 $530,985,172 18.80% 38.40% 17.60%
30 (12) Pfizer $97,108,680 $481,265,062 20.20% -25.00% 31.10%
31 (85) BMW $90,745,600 $194,013,543 46.80% 175.80% 473.00%
32 (26) Lowe’s $90,286,453 $268,903,969 33.60% 17.50% 24.70%
33 (88) Bank of America $89,874,195 $207,929,609 43.20% 191.70% 255.80%
34 (42) T-Mobile $86,781,234 $246,833,281 35.20% 56.50% 54.50%
35 (27) Burger King $86,026,078 $265,710,688 32.40% 14.50% 30.30%
36 (64) Allstate $84,076,445 $286,478,781 29.30% 89.40% 36.70%
37 (34) Universal Pictures $80,218,539 $338,577,531 23.70% 29.10% 4.40%
38 (63) Capital One $78,049,758 $238,592,875 32.70% 75.20% 53.80%
39 (28) Lilly Icos $75,084,906 $159,878,562 47.00% 2.30% 18.00%
40 (30) Home Depot $74,251,469 $317,885,906 23.40% 8.90% -8.90%
41 (50) Volkswagen $72,067,022 $254,459,219 28.30% 40.50% 2.40%
42 (67) Pizza Hut $67,984,398 $227,654,281 29.90% 65.40% 38.30%
43 (43) Nike $67,784,867 $74,094,281 91.50% 24.10% -25.20%
44 (72) E*Trade Securities $67,655,688 $98,736,430 68.50% 72.60% 32.60%
45 (52) Acura $66,009,981 $198,336,977 33.30% 31.60% -0.70%
46 (77) Audi $64,296,166 $126,588,887 50.80% 73.80% 46.00%
47 (53) Unilever $63,642,496 $306,353,625 20.80% 30.30% 139.10%
48 (45) AT&T Inc. $63,149,543 $437,857,000 14.40% 19.40% -8.40%
49 (NR) General Electric $61,354,465 $95,706,039 64.10% NA 59.30%
50 (92) Paramount Pictures $57,051,469 $285,949,125 20.00% 98.90% 100.10%

NR: Not ranked in the Top 100 in 2009
NA: Not available
Source: SportsBusiness Journal analysis of data from The Nielsen Co.

Ranked by change in sports
ad spending from 2009

BIGGEST INCREASE
COMPANY/
BRAND (RANK) 2010 SPORTS
AD SPENDING CHANGE
Bank of America (33) $89,874,195 191.70%
BMW (31) $90,745,600 175.80%
Procter & Gamble (22) $118,465,086 159.70%
Nissan (12) $160,993,935 105.90%
AT&T Mobility (1) $366,313,812 102.80%
SMALLEST INCREASE; DECREASE
Lilly Icos (39) $75,084,906 2.30%
Southwest Airlines (15) $131,300,672 2.00%
MillerCoors (8) $214,447,797 -5.40%
Sprint (10) $179,083,297 -10.60%
Pfizer (30) $97,108,680 -25.00%

Note: Comparative information on General Electric (49) from 2009 was not available. Ranking also does not include sports leagues or properties
Ranked by percentage of total
ad spending dedicated to sports

TOP FIVE COMPANIES/BRANDS
COMPANY/
BRAND (RANK) 2010 SPORTS
AD SPENDING % OF AD
SPENDING
DEDICATED
TO SPORTS
Nike (43) $67,784,867 91.50%
Anheuser-Busch (2) $356,205,906 80.80%
MillerCoors (8) $214,447,797 75.30%
Southwest Airlines (15) $131,300,672 72.90%
E*Trade Securities(44) $67,655,688 68.50%
COMPANIES/BRANDS RANKED 46-50
Pfizer (30) $97,108,680 20.20%
Paramount Pictures (50) $57,051,469 20.00%
Honda (29) $99,909,714 18.80%
AT&T Inc. (48) $63,149,543 14.40%
Procter & Gamble (22) $118,465,086 6.50%

Note: Does not include spending by sports leagues or properties.
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