AIG Steps in as Davis Cup Sponsor; CART Indy Racing Near Armistice - American International Group - Statistical Data Included

Brandweek, July 12, 1999 by Terry Lefton

Tennis' Davis Cup has its first domestic sponsor in years. American International Group has signed what industry sources said was a three-year deal at around $500,000 per annum. The package includes presenting sponsor status, patches on players' and coaches' warmups, media on ESPN and signage at U.S.-based Davis Cup matches. Insurance giant AIG also gets use of Davis Cup team coach Tom Gullickson, tickets and hospitality and commits to support with a tennis-themed print ads, starting later this month in Boston. AIG already has some presence in tennis with an endorsement deal with Arantxa Sanchez Vicario and a sponsorship of the Advanta-entitled indoor tourney in Philadelphia.

"We plan on being an active sponsor and we like the demographic match, the hospitality opportunities and the international nature of the event," said AIG event marketing manager John Thompson. The last domestic sponsor for Davis Cup was the Louisiana Pacific Railroad.

An armistice is close between CART and the rival Indy Racing League, which broke off several years ago, making survival perilous for each circuit even as rival Nascar was scaling new heights in attendance and revenues. One well-placed source said an oral agreement has been reached for a merger by 2001 at the latest. CART officials were in Indianapolis last week meeting with IRL execs.

"Everything we're doing now is based on the premise that there will be one circuit within two years," the source said, adding that the biggest remaining detail to be worked out is what kind of engine would be used in a unified Indy Car circuit. CART engines use turbos, the IRL aspirated engines. There's a deadline of around 30 days to work out those technical details, after which a reunified league would have to start in the 2001 season. CART, through its sponsorship agency ISL, would sell all commercial rights, while what's left of the IRL, under Tony George, would be the sanctioning/governing body for the circuit. One internal estimate has the combination earning an additional $8 million in sponsorship revenues annually once duplication is eliminated.

Without commenting directly on the negotiations, CART marketing evp Carl Cohen said, "With two series, the audience just isn't large enough from a marketing perspective. If we are marketing to one audience we could grow the sport." Existing sponsor conflicts include Valvoline vs. Pennzoil motor oils; Mercedes vs. Olds cars, and Budweiser vs. Coors beers. MCI and PPG sponsor both circuits. Another possible problem is the title sponsor: each circuit has one name it wants to include in the combined racing league, creating the rather unwieldy Fedex/Pep Boys Indy Car World Series. A new TV pact for a slimmer 25-race schedule would have to be reached but both circuits are on ABC/ESPN.

Look for Anheuser-Busch to ramp up its involvement with driver Dale Earnhardt Jr. during the 2000 Nascar season. As it stands, Bud's POP featuring the Nascar rookie is enormously popular and 16-oz. cans bearing his likeness doubled sales expectations this year, per AB sports marketing potentate Tony Ponturo. Does that mean Earnhardt Jr will become to Budweiser what Jeff Gordon is to Pepsi? "In some regions we are doing that already," he said. "Next year, look for national TV commercials and more, because we really think he is going to be the new star on the circuit."

Extra Innings: BBDO recently filmed a new spot for brokerage Charles Schwab using NFL players Jason Sehorn of the New York Giants and Shannon Sharpe of the Super Bowl champion Denver Broncos. The ad, in 30- and 60-second versions, should break around the beginning of the season ...Keyshaw Johnson and Ricky Williams added to NFLP's QB club cartel... Tom Shine, president of the Logo Athletic/Puma apparel combination, reports sales of $5 million in NBA championship locker room caps and Ts, following the San Antonio Spurs' recent title run. Sales of upstairs Puma-branded apparel and downstairs Logo cap and Ts were largely retracted to the Spurs home market...Baseball's answer to Beanie Babies team and player-specific "MLBeans," are out of the gate with a splash. The June national FSI introducing the product yielded sales of more than 38,000 bears...Former McDonald's sports marketer and more recently Cendant marketer, John Lewicke, has moved to a vp's post at Fantastic Sports, San Diego.