NIKE SACKS REEBOK, TAKES OVER NFL LICENSING DEAL

That Reebok NFL jersey you spent top dollar for isn’t official as of April 1 when Nike becomes the new uniform supplier for the NFL, ending the league’s 10-year relationship with Reebok.  Financial terms of the five-year deal weren’t disclosed.

In a statement released by the league, Executive Vice President of NFL Ventures and Business Operations, Eric Grubman, said, "We have spent considerable time the past few years rigorously evaluating our apparel business. The new framework will provide fans with a wider breadth of merchandise from global category leaders in the sports-licensed apparel industry.”

Securing licensing rights with a professional sports league is pricey.  However, they typically pay for themselves as athletes become unparalleled advertisements.

For 14 years, Steve Ryan served as president of NHL Enterprises, the business arm of the National Hockey League, and oversaw a number of departments, including licensing and merchandising. 

“Nike is a global brand and putting its logo on NFL merchandise will accelerate its brand appeal and authenticity,” said Ryan. “As a publicly traded company, I’m sure Nike did a keen financial analysis and will deliver sales and financial growth.”

In addition to jerseys, Nike will make the clothing worn on the sidelines.

Added Ryan,  “The NFL is acknowledged as the best professional sports league in the world and this deal reinforces Nike’s leadership role in the marketplace and provides them with a significant revenue stream. Competitively, it also allows them to replace one of their key competitors.  This is a major marketing win for Nike.”

Nike and Reebok often battle in the sports-apparel market.  Ryan says that this deal doesn’t just bring a fresh perspective to NFL merchandise, it provides an opportunity for greater worldwide exposure.

“An important attribute Nike brings to the table is its international distribution,” said Ryan. “As strong as they are in North America, the company is equally as strong internationally. That’s an area that the NFL wants to grow in, both in licensed products and viewership. So Nike brings better penetration on a global basis.”

According to the NFL’s Policies for Players, athletes are allowed to wear products, such as gloves, manufactured by licensed apparel companies. Ryan doesn’t see that diminishing Nike’s deal.

“I don’t see a downside as Nike has exclusivity on team jerseys and coaches, which are the two most visible in-game, broadcast elements,” stated Ryan. “This is a big win for Nike on a competitive basis, against a major rival in Reebok.” 

According to The Nielson Company, 2011 NFL games were watched by an average of 17.5 million viewers.

“For the next five years, the NFL jersey category is off limits and that gives Nike a solid, competitive advantage,” said Ryan.  “Nike will dominate the look on the field and have sideline control with coaches…and I’m sure they will do creative things with both.”

Nike will unveil the new looks at an event in New York City on April 3.  Not all 32 teams will necessarily get a makeover.

“Fundamentally, Nike must get permission from the teams and league to make changes,” Ryan said. “But I think updating uniforms will be high on the list for both the NFL and Nike.  Fans respond positively to merchandise as long as it’s done tastefully and has a consumer appeal.  Plus, fans will be the beneficiary of Nike coming along and adding creativity to an area that hasn’t seen a lot of creativity in a while.”

And just when I thought my Randy Moss Raiders’ jersey couldn’t become more worthless.

Saint Agnes Hospital Steps Up To The Plate

MY LATEST SPORTS BIZ BLOG FOR PRESSBOX - MARCH 19

Before there was the "House That Ruth Built" in New York, a number of places in Baltimore shaped George Herman "Babe" Ruth into baseball's first icon. 

Among those places was a baseball field off Caton Avenue in Arbutus.

Earlier this month, Saint Agnes Hospital recorded the baseball equivalent of a "save" by announcing it had agreed to purchase the grounds of the former Cardinal Gibbons High School from the Archdiocese of Baltimore, and that part of their plans involved preserving Babe Ruth Field. Discussions between Saint Agnes and the Archdiocese began in December 2011. Financial terms of the purchase were not disclosed.
Cardinal Gibbons occupied the former site of St. Mary's Industrial School, where Ruth enrolled in 1902 and learned the game of baseball under the tutelage of Brother Matthias. 

A young Babe Ruth at St. Mary's Industrial School. (Photo Courtesy of Babe Ruth Birthplace Foundation)

When the Archdiocese closed Cardinal Gibbons in 2010 because of financial reasons, concerns arose about the future of the historic baseball diamond Ruth once used.

"To me, and to baseball fans everywhere, I suspect, that field is hallowed ground for our national pastime," said Mike Gibbons, executive director of the Babe Ruth Birthplace Foundation. "I was worried that it would be converted into a parking lot or office building."

While details regarding the development of the property are still in the preliminary stage, Shareese N. Churchill, a spokeswoman for Saint Agnes, said preserving the field played a major role in their plans, because it is a part of history.

"It is our hope in the future, children can stand in the same place where Babe Ruth swung his bat so many times when playing for St. Mary's Industrial School," Churchill said.

In addition to Babe Ruth Field, another all-purpose field will be constructed and Saint Agnes is in discussions with the Cal Ripken Sr. Foundation as a partner on the field development project. William Greskovich, vice president of operation and capital projects for Saint Agnes, told The Catholic Review that home plate (in the present-day outfield) on Babe Ruth Field will be located on the exact spot from Ruth's playing days. It was from that original spot that Ruth allegedly knocked a 600-foot home run onto Caton Avenue.

For the Babe Ruth Birthplace Foundation, the Saint Agnes move ended great uncertainty.

"When I heard that Saint Agnes Hospital was purchasing the property and possibly working with the Cal Ripken Sr. Foundation to develop the field area where Babe learned to play ball, I was thrilled," Gibbons said. "Ruth is the most celebrated athlete in the history of sport, and born right here in Baltimore. So it's imperative that our community continue to preserve and commemorate those places historically associated with one of its most famous native sons."

Additional ideas for the property include recreational community space, an office building and housing for hospital and community residents.

"Saint Agnes is committed to providing a space that brings additional benefits to the community," Greskovich said, "and we expect to continue to engage our neighbors in the months and years ahead to ensure complementary uses of this historical land."

The Yankees may have had Ruth as a Hall of Fame player, but Baltimore will always own first rights to "The Bambino."

Baltimore Going Another Lap With The Grand Prix

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The checkered flag will again drop in Baltimore when the IZOD IndyCar series returns for the 2012 Labor Day weekend.

Charm City entered into a five-year agreement with Downforce Racing to run the Baltimore Grand Prix. The partners in the new group are Indianapolis-based contractor Dale Dillon, as well as Felix Dawson and Daniel Reck of Wilkes Lane Capital in Baltimore.

"Last year's racing event generated $47 million in economic impact for Baltimore, and proved very valuable in terms of positive media exposure for our city," Baltimore Mayor Stephanie Rawlings-Blake said. "We have worked hard to learn from past experiences to ensure that this new agreement is in the taxpayers' best interest and will bring a successful, world-class sporting event that Baltimore can be proud of for years to come."

The inaugural event had its issues. The city terminated its contract with Baltimore Racing Development, the organizers of the initial race, Dec. 30, 2011, after the group failed to pay more than $1.5 million to the city. The group reportedly accumulated $12 million in debt and announced in February that it was dissolving without repaying investors.

Reck said there were multiple reasons Downforce Racing was interested in taking over the race.

"Felix and I live here," he said. "It's a great event for Baltimore and was fun to be a part of as a spectator last year. We feel we can build on what the previous organizers started and turn it into a profitable entity. We took a lot of time looking at it from a financial standpoint, and believe we can make it an even greater event over the course of time."

The city's Board of Estimates approved the new contract in a 3-2 vote. One member that voted against the deal was City Council President Jack Young, who supported the inaugural event but has voiced opposition to the race's returning in 2012.

The new deal does include provisions to protect the city from potential losses.

"The city had certain needs," Reck said, "as did we, and those were hashed out over the month we were negotiating. We would have liked to shift more of the risk to the city, but they weren't willing to do that. We feel good about the final agreement."

Downforce Racing's challenges begin immediately, as it has less than six months to organize the race.

"The good news is that there is already a path," Reck said. "Dale came in late with last year's organizers to try to help, so we feel good as we know what the tasks are, and are presently prioritizing and allocating responsibilities. Our biggest challenge is timing, and what we missed in terms of sponsorship. But we have extremely low expectations for sponsorship revenue in our first year."

Reck said Downforce Racing was confident it could sustain the event during the length of its contract.

"Our No. 1 asset is having Dale and his team involved from the start and with us through the finish," Reck said. "He has done this before and has proven his ability through managing several successful road races. Dale is a huge part of our confidence."

Dillon Racing LLC helped manage Grand Prix races in St. Petersburg, Fla. and Toronto.

Unlike its predecessor, Downforce Racing doesn't require as much outside capital, because principals are funding the project themselves.

"We think opportunities to really make money come after we show we can run a clean race in 2012," Reck said, "and lower the risk factor for sponsors for 2013 and beyond."

The IZOD IndyCar series seemed certain the race would return, because Baltimore was always included on its 2012 schedule.

"IndyCar is extremely excited about returning to Baltimore in 2012," said Sarah Davis, senior director of business affairs for IndyCar. "We are grateful to the mayor and her staff, as well as the residents and businesses of Baltimore, for their support of the event, and are confident in the ability of Downforce Racing to conduct a successful event."

Baltimore is a prime location for IndyCar, because it provides access to the Mid-Atlantic region. Organizers estimated that about 160,000 fans attended the 2011 event.

Neale Osenburg of Towson was one of those fans.

"I think the event was great for Baltimore," said Osenburg, who grew up in a racing family and has raced in the SCCA Formula 500 series. "The whole town was talking about the race all week long. I know there were a lot of detractors, but I think the event overshadowed them."

Osenburg said he's glad there's new leadership.

"It seemed the initial organizers were really in over their heads in respects to running an event of this size," Osenburg said. "As a spectator, it was nearly impossible to get from one point on the track to another. There were multiple times we had to exit the entire event, walk all the way around, and re-enter at another point."

Downforce Racing has the benefit of learning from the startup issues encountered with the inaugural race.

"We have a path as to what the weekend needs to look like," Reck said, "and will look to improve a number of issues, from signage to spectator flow."

Time will tell whether the Baltimore Grand Prix reaches Victory Lane, or sputters out on pit road.

visit the following links to see a draft of the agreement between Downforce Racing and Baltimore City, including the key provisions city officials outlined: http://www.pressboxonline.com/blog.cfm?id=4577

Under Armour Scores Big At NFL Scouting Combine

MY SPORTS BIZ BLOG AT PRESSBOXONLINE.COM - Posted March 5, 2012

While it wasn't at the Super Bowl, a Baltimore-based powerhouse dominated at Lucas Oil Stadium in Indianapolis, as Under Armour served as the presenting sponsor of the NFL Scouting Combine for the fourth consecutive year.

From Feb. 22-28, more than 300 prospects underwent physical and mental tests in front of NFL brass. For Under Armour, it's a natural fit to be involved with an event during which athletes push themselves to the limit.

"The NFL Combine provides Under Armour the ability to partner with the NFL with one of their premier properties," said Matt Mirchin, Under Armour's senior vice president of global sports marketing, "and to interact with athletes at the top of their game, provide them with state-of-the-art gear and innovative products that help them perform."

In 2011, Under Armour showcased its E39 shirt, which measures breathing rate, heart rate and horsepower. Last month, it also outfitted athletes with its Highlight Cleat and UA Baselayer.

"The Highlight Cleat provides a shockingly light, super-streamlined, fully locked-in fit for speed and maximum support," Mirchin said. "The secret weapon is the CompFit construction, the latest UA footwear innovation. With incredible support and feel around your ankle, you'll change direction and fly downfield better than ever before. UA NFL Combine Baselayer promotes mobility, protects muscles and helps athletes perform faster and stronger."

Under Armour's innovation at the Combine wasn't limited to apparel. It created the hashtag, #ThisIsYourArmour, and turned its Twitter handle over to various experts.

"We definitely see an increase in brand awareness as a result of our activations around the event," Mirchin said. "Our Twitter following grew over 22 percent, which was attributed to our Twitter takeover with trainer Todd Durkin and Hall of Famer Deion Sanders. Additionally, we released exclusive behind-the-scenes content from the 'Cam's Night Out' campaign commercial shoot on our UA Football Facebook page, which grew over 23 percent in less than one week."

The Combine also allows Under Armour to increase its brand exposure via must-see TV. According to SportsBusiness Daily, the NFL Network drew 6.6 million viewers for its 2011 coverage.

"I think the fervor over the Combine is really an extension of the country's overall love of football," NFL Network reporter Jason La Canfora said, "and is another way to feed that need for year-round NFL content. Frankly, it's good TV."

Sponsoring the NFL Combine allows Under Armour to reinforce its position as a leader in innovation and performance. Through its long-term partnership with the NFL, Under Armour is also able to bring products used during the Combine to retailers with a newly created NFL/UA Combine logo.

Who knew that fans would be captivated watching the 40-yard dash? Well, Under Armour, for one.