SPORTS-RELATED PROMOTIONS CAN BE A REAL HOME RUN

Rough Notes, Oct 2004 by Bloss, Bob

When certain technicalities come into question, Todd Overton and CEO Bob Hamman of SCA Promotions, Inc./SCA Insurance Specialists, Inc., in Dallas stress the importance of good public relations and customer relations. They related an incident that occurred at Phoenix's Bank One Ballpark, which has a supervised swimming pool just beyond the right field fence.

"If a home run lands in the pool, a lucky ticket holder wins a Nissan automobile. Luis Gonzalez, of the home team Diamondbacks, hit a long drive that headed directly toward the pool. But just before splash-down the life guard out there caught the ballmaybe to prevent its hitting a swimmer. Anyway, technically the ball did not land in the water, as the contract prescribed. But without any hassle we agreed to buy the car. It was the right thing to do."

SCA was involved with a nationally-prominent prize promotion back in 1989. IfHaIl of Fame pitcher Nolan Ryan, then with the Texas Rangers, pitched a no-hitter that season, Little League Baseball would have received $1.25 million. He came close several times but couldn't manage a no-hitter that year. However, the contract (with Best Western and American Express Travel) called for Little League to receive $300 for each Ryan strikeout in '89. He posted 301 of them.

Most agents and brokers seldom have a chance to land major national prize promotions such as the All-Star Game or the Nolan Ryan/Little League program. Nevertheless, numerous sales opportunities do exist within their communities. HoIe-InOne contests are always popular, as are such events as basketball free throw contests at halftime of high school games, bowling-for-dollars or football-related contests. Other opportunities involve special events that are cancelled or postponed by inclement weather.

Food and beverage marketers, entertainment center retailers, and sports bar/restaurant chains are popular targets for prize indemnities related to on-field football outcomes. Policies are written against the odds of a second-half kickoff returned for a touchdown. Or for back-to-back touchdowns. Perhaps for a field goal of a specified extraordinary length. Or someone who buys a state-of-the-art HDTV monitor by, say, the end of September could fill out an entry form with his or her choice of the eventual Super Bowl winner. And if the buyer's team wins, the purchase price of the TV could be refunded after the Super Bowl. The revenue generated from HDTVs purchased by non-winning entrants will likely far exceed the relatively small cost of the retailer's risk insurance premium.

Popular promotions that award prizes for feats of athletic skill or for predicting outcomes are nothing new. But now, often with national television exposure, they're magnified many times over in terms of payouts and fan participation. Today's promotional events, many of them corporately sponsored, usually feature annuities when the monetary prize is substantial. Often a charity is designated as a co-beneficiary. Now, unlike haberdasher Stark's modest financial outlays-if, in fact, any batter actually did hit that small sign in Brooklyn-insurance plays a significant role as an important cost element of sponsorship.