In the Swim: Olympic Hopeful Pools $1M

Brandweek, May 15, 2000 by Terry Lefton

Lenny Krayzelburg is an athlete you probably haven't heard of, but remember, the Olympics aren't until September. Nonetheless, some industry types are touting him as the next Mary Lou Retton, as far as commercial potential. The holder of multiple world swimming records, Krayzelburg is a favorite to win a handful of medals at the Sydney Games. Even before he qualifies, Octagon's athlete representation division claims to have signed the 25-year-old backstroker to $1 million in endorsement deals: basic stuff with Speedo arid In

the Swim,a pool chlorinator, Power Bar, whose agency Wieden & Kennedy Portland, Ore., shot a national TV spot with Krayzelburg and the Phoenix Suns' Jason Kidd, and other athletes singing a faux Power Bar Olympic anthem,a la "We are the world," that will break soon. Kellogg, meanwhile, will feature him on a box (likely Crispx) before and after the Olympics, assuming he performs as expected; and IBM has inked him as ambassador for its Olympic Fan Mail Web site.

Krayzelburg, who came to the U.S. from the Ukraine in 1989, will do appearances and interviews to support IBM'S efforts and will be one of the first athletes with a home page on the FanMail site. Finally, Parke-Davis has signed him to appearances to promote the benefits of sports science research and biomechanics.

Just Say No: That's apparently the response from the National Football League to a proposed apparel deal by Nike (Brandweek May, 8) that would call for an unprecedented complete apparel exclusive on licensed togs in a joint venture, with a no rights-fee arrangement. Sources said the Executive Committee that oversees NFLP, headed by Jacksonville owner Wayne Weaver, met last week and sent the deal back to Nike, still seeking some type of remuneration. One major concern is the possibility (some might say, likelihood) of litigation from other licensees, with one source identifying potential damages as high as $100 million.

Nike, seeking the kind of meaningful exclusives that are the only profitable deals in sports licensing these days, wants a 10-year deal, with exclusivity that would cover everything, including the footballs now supplied by longtime licensee Wilson. At least they wouldn't have to alter the acronym if it becomes the Nike Football League.

Nike will presumably walk from the NFL if its proposed joint venture doesn't happen, which would leave NFLP looking elsewhere to make up the $220 million or so Nike paid for its current deal, which expires after next season. "I don't think this deal will happen and when it doesn't there will be pressure for them to make up those revenues by selling their uniforms," said a senior licensing exec at a rival league. Selling uniform advertising is one of the largest revenue opportunities left for properties organizations. More than one rival apparel licensee is working on their own proposal for a joint NFL venture.

Sports instructional site Mysportsguru.com has hired McCann-Erickson, New York, as its agency of record. Marketing evp Tom Barreca said the initial assignment is research-based, with a creative launch involving TV and print slated for July or August. Barreca claims the site will launch with a combined $10 million in purchased and bartered media in its first year. Undecided is whether the current tag, "Play sports? Play better" will survive. Early agreements have "gurus" including Cal Rip-ken, Nick Bolletteri, retailer/fishing guide purveyor Orvis and the David Lead-better Golf Academy providing online instruction.

The reconstituted AVP has added a few more top brands to its stable with the addition of Ford and Michelob Light, the latter being the 16-year old beach volleyball circuit's first official brew other than Miller.

Mich Light, in as sponsor for the AVP's six core California events, will leverage with inflatables on site and retail promos. A-B continues to add sports cachet for Light, considered the only remaining brand in the Mich stable with any potential. Late last year, Mich Light signed a three-year deal making it presenting sponsor of the Pilot Pen entitled WTA tour stop in New Haven, Conn. Ford has not yet committed to what model it will push, but is expected to have autos on site. While both brands are aboard for the West Coast events, Michelob adds the AVP tour stop in Chicago. Ford will entitle the July 7-9 Karch Kiraly Classic in Santa Barbara, Calif.