Adidas, Pro Player wait out MLB on-field deal - Major League Baseball

Brandweek, March 30, 1998 by Terry Lefton

In marketing terms, no one is confusing Major League Baseball with the NBA or NFL, but as the Show gets set to start up again, MLB sponsorship and licensing revenues are up double digits, while starting from an admittedly small base. Then again, baseball will be baseball, as evidenced by a stalled on-field apparel program (what major apparel and sneaker makers make it onto the diamonds), and its primary sticking point, by name of Steinbrenner.

"The biggest thing standing between us and a new program is settling the Adidas lawsuit and I think we are closer than we have been," said MLB Properties president Bob Gamgort.

A settlement was discussed during the recent owner's meetings, with a major impediment being Yankees owner George Steinbrenner's desire to be reinstated to MLB's powerful executive council, other baseball sources said. Fellow owners threw him off the council in reaction to the litigation surrounding the Yankees' wildcat Adidas deal last year.

New on-field brands are expected to include Pro Player and Adidas. Incumbent official and exclusive cap supplier New Era is also close to a five-year extension that one reliable source pegged at more than $60 million. Meanwhile, MLBP has altered its agency agreement allowing it to sell logos for use in ads, sans license rights.

When NFL svp-international Don Garber first recommended the league change the name of its subsidiary World League to the NFL Europe League, there was skepticism. But the restage effort, via agency CKS Partners, N.Y., was approved late last year and now Euromarketers are starting to "Feel The Power."

As the league begins its sixth season April 4, broadcast deals have more than doubled its reach and sponsorship revenues have more than doubled, for a combined $10 million. Relative to the NFL's $17.6 billion TV package that's a pittance, but it's economy-of-scale, Garber insists. "The view has been we're not getting 70,000 people per game, we're not getting billions for TV, so we're not successful," he said. "But our emphasis is on building a fan base so that within a few years these teams are paying for themselves."

Per the league's biggest deal ever, German shoe retailer Deichmann will be promoting the league with a glossy promotional print piece in its 1,000 stores. For the first time, NFL Europe teams have sold sponsorships that include uniform ID via a shoulder patch. Local $100,000-200,000 sponsors go on the left shoulder while a still unsold $1-1.5 million pan-European,sponsor would go on the other shoulder.

Local sponsors thus far: Suzuki Cars in Amsterdam, Scot-Rail in Scotland, Ford in Barcelona, Schlosser Alt (beer) for the Rhein Fire, Kellogg's for the England Monarchs. Also close to being sold is a presenting sponsorship for the championship World Bowl on June 14. Champion supplies league uniforms and practice wear, Logo Athletic sideline apparel and Nike's Sports Specialties unit caps.