SMB.

Despite the financial pressures due to the credit crunch, Coca-Cola is committed to sponsoring major football events such as the World Cup and European Championship.

Dominique Reiniche, the president of Coca-Cola's European operations, say they would continue to invest in sports notably soccer, at the top end and grassroots level.

"We don't see ourselves as sponsors, but as partners. Olympics, World Cup, UEFA European Championships will continue," she said.

Coca-Cola has already agreed to extend through to 2020 its membership of the International Olympic Committee's worldwide TOP programme, involving major corporations, which is the IOC's most lucrative sponsorship programme.

Reiniche added that Coca-Cola will also continue its investment at the local level in sport in a bid to reduce the problem of obesity, which IOC president Jacques said last month would also be his priority if he is elected for a second term.

Watch the 2006 FIFA World Cup Coke Commercial and Coca-Cola "Yao and LeBron" Olympic commercial

Due to this financial crisis, NBA team's values might decline if the economic downturn continues to worsen in 2009.

According to FORBES, some franchises will have a direct impact if this crisis continues. Season ticket renewals and new sales are down this season. The NBA recently laid off 9% of its staff on concerns over the economy. Also, some arena naming rights partners for teams like: American Airlines, Conseco, Ford Motor, United Airlines and Wachovia. Each of these companies saw its stock dive more than 80% over the past 12 months, and some sponsors might look to back out of their deals.
Despite all that, the last season (2007-08) was a success for the NBA. The league's most remarkable teams, the Boston Celtics and Los Angeles Laker, met in the finals, and TV ratings grew up 51% over the prior year.

League-wide revenues hit a record $3.8 billion during the 2007-08 season, 6% more than the prior campaign, and the average team posted a profit (in the sense of earnings before interest, taxes, depreciation and amortization) of $10.6 million, the highest amount since Forbes began tracking NBA finances 10 years ago.
The new agreements with ABC, ESPN and TNT that began with the 2008-09 season are worth $ 7.4 billion, 21% more than the prior deals on an annual basis.
Three teams experience double-digit gains this year, Portland Trail Blazer (up 21% to $ 307 million), Boston Celtics (up 14% to $ 447 million), Oklahoma City Thunder (up 12% to $ 300 million).

The Chart above shows the TOP 10 NBA's most valuable teams based on current arena deal (unless new arena is pending) without deduction for debt (other than arena debt).



In December the 4th, I wrote a post about how NBA is loosing attendance for NHL. Does NBA still a profitable sport?

#5 HOUSTON TEXAS (Profit: $57.6 million)

#4 FC Bayern Munich (Profit $62 million)

#3 Real Madrid
($83 million)

#2 Manchester United ($ 92 million)

#1 Washington Redskins ($ 108.4 million)

For about 6 seasons the two most popular professional arena sports in North America are struggling to increase their average attendance.

Even though, during the 2007-08 season, the NBA averaged 17,396 fans per game (2% down from the previous year), and was still the third-highest average attendance in league history, compared to NHL´s 17,268 fans per game.

The biggest difference between the leagues may be this: 4 NHL teams play to less than 80% capacity, compared to 8 NBA teams. Four NBA teams (Charlotte, Philadelphia, Sacramento and Memphis) are currently averaging fewer fans per game than the team with the lowest attendance in NHL.

On the other site, NBA still has higher attendance than the NHL and even with a attendance declining in the past 2 seasons, last year´s average still ranked among the best in league history.
The chart below shows the despite all the buzz around this topic, NBA attendance is dropping and NHL´s is increasing . So the NHL is definitely gaining on the NBA in attendance, even if not as dramatically as has been portrayed.

After the $85 billion Federal Reserve's $85 takeover of insurance giant AIG in return of 79.9% and management replacement, gave US government control of Manchester United sponsorship.
AIG's $100 million shirt sponsorship deal, signed two years ago, was the largest at the time.

A proactive public relations plan is a far more important and valuable strategy to pursue for the athlete by Darren Rovell

What is the most overused word in today’s athlete public relations and marketing lexicon? You probably guessed it: BRAND. Athletes and their handlers often talk about their efforts to build the athlete’s “personal brand.”

What is the reality? There are very few athletes who actually develop into a brand. Those athletes who do will certainly be the exception rather than the rule. My advice to all involved is: Don’t force the branding issue! In most cases the effort will be nothing more than an exercise. Truthfully speaking, you can’t be a brand if you don’t have a strong identity.

The real goal and focus of the public relations plan should favor maximizing awareness and building a universally recognizable identity instead of stressing the “branding” issue. A carefully crafted, clearly messaged, well executed, proactive public relations plan is a far more important and valuable strategy to pursue for the athlete.

The comprehensive and strategic plan should be effectively integrated with marketing partners, sponsors, business interests, teams, leagues, governing bodies and charitable or philanthropic initiatives. Be a good partner. I am a firm believer in the saying “rising tides lift all boats”. I am a strong advocate of promoting a collaborative effort between athletes and all of their partners and business interests. These partners should bask in the reflective glow of their association with each other. Each partner brings distinct value to the relationship. Don’t compete with each other. Be a team. Help each other create and seize media opportunities.

The plan should have a universal and clear message and aim to reach the largest possible audience. Athletes should seek opportunities across all media platforms and constantly look for ways to reach new audiences with their message in order to continue the process of creating greater awareness and building identity.

Focus on the message. Make sure that you are constantly promoting the right themes for you and your partners. Always know what you want to say and get those points across in interviews. Utilize every single media opportunity to promote the important messages and interests beyond your sport, including your goals, priorities, personal beliefs, sponsor partnerships, business interests and philanthropic initiatives. Every press conference, interview, book tour, sponsor day, charitable appearance, golf outing or speech is an opportunity so max out on every single one.

People love compelling stories and personalities that have depth that extends beyond the playing fields. The more access provided to introduce and promote the various aspects and dimensions of the athletes’ life and interests, the better. It takes time and a thoughtful and strong proactive effort; but in the quest to effectively build identity and increase awareness, it’s a critical step. Storytelling is often the great differentiator.

After all, the real goal is to stand out, not blend in. Maybe, someday, you actually may become a brand!

National Basketball Association and Harlem Globetrotters agreedd strategic partnership that will give fans worldwide access to high-quality basketball entertainment.
They will work together to plan and promote the Globetrotters' international slate of games and events. The partnership will début in February during the All Star Game 2009, the NBA's global showcase.
This past off season the NBA hosted more than 135 international events in 93 cities in 25 countries.