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Sports Marketing: American marketing firms are discovering high school sports—with questionable consequences for young sports enthusiasts. Ever since the dawn of the LeBron James era, at the very latest, high school sports and their commercial potential have been a constant topic of discussion in the U.S.
Sports marketing America's marketing companies are discovering high school sports - with dubious consequences for young sports enthusiasts.
Lebron James, who was already hailed as the new NBA superstar in high school, was and still is the figurehead of American high school sport. Even before he had graduated from high school in 2003, the 18-year-old young talent was filling the halls with his high school basketball team in Akron, Ohio, and signed a 90 million dollar sponsorship contract with Nike just a short time later. His school, meanwhile, collected 400,000 dollars for broadcasting the finals on ESPN, arousing the ire of critical parents, teachers and youth protection groups. "The schools are offering themselves up for sale," believes Gary Ruskin from the consumer protection organization Commercial Alert. "It shows how much our values are decaying." Tricky youth marketingSince the beginning of the James era at the latest, the topic of high school sport and its commercial potential has been an ongoing issue in the USA. It's all about early brand loyalty, sports rights, millions in sponsorship money and the thorny issue of youth marketing. It's no longer just traditional sporting goods marketers who are interested in high school sports, but also consumer goods giants like Procter & Gamble or insurance companies like Allstar. "If a student decides between Coke and Pepsi or between Verizon and AT&T, this decision will generate incredible amounts of money in the long term," says David Carter, Director of the Sports Business Institute at the University of Southern California (USC).
Schools benefit directlyHigh school sports in the USA start at the local level. This is where the professional recruiters look for the next superstar, where the most fanatical spectators - ambitious kids and their parents - are, and where there is the greatest interest from schools interested in sponsorship deals. "The schools are only after one thing: dollars," says Robert Tuchman, President of the marketing company TSE Sports in New York. Drinks and computer manufacturers in particular have become increasingly popular in recent years, as drinks vending machines and computer labs are being set up directly in schools. According to Tuchman, such sponsorship deals often involve seven-figure sums.
After the storms of criticism in the early years, the marketing companies have become more cautious with their offers: A company like Pepsi now offers vitamin-rich juices and low-calorie iced tea in schools rather than cola and lemonade, says Tuchman. Microsoft also emphasizes in its initiatives that it wants to make the Internet and its wealth of knowledge accessible to poorer pupils. "It makes sense for these companies to commit to an entire team or school rather than an individual athlete, so that the money is available for a broader purpose," says David Carter. "Failure to do this conjures up so much negative publicity that the benefits of a sponsorship deal with a school are virtually wiped out."
Big national interestBig media companies also want a slice of the pie. TV broadcaster CSTV, which is part of the CBS network, has now announced a series of on-demand channels with high school sports content, which will be supplied with sponsors by Lebron James' marketing company LRMR Innovative Marketing and Branding. The majority of the games will air at the local level, but promising athletes will also get a national platform.
The local distribution concept also applied to the so-called lifestlye magazine Rise, which has achieved a circulation of over 900,000 copies since its launch ten years ago and is mainly distributed in schools. There is currently strong national interest, says Editor-in-Chief Jon Segal. Almost the entire advertising volume now comes from national advertising companies. "Everyone is looking for the next superstar." The market is there: According to estimates from the National Federation of State High School Associations, 7.2 million students were active in sports last school year - an 80 percent growth since 1972.
The trend has now spread to digital platforms. Websites such as Takkle.com want to act as intermediaries between talented athletes and talent scouts and give teenagers a platform to present themselves - a kind of MySpace for athletes. The aim is to ensure that sponsors don't miss out on the next Lebron James.
Gerti Schön, New York
Lebron James, who was already hailed as the new NBA superstar in high school, was and still is the figurehead of American high school sport. Even before he had graduated from high school in 2003, the 18-year-old young talent was filling the halls with his high school basketball team in Akron, Ohio, and signed a 90 million dollar sponsorship contract with Nike just a short time later. His school, meanwhile, collected 400,000 dollars for broadcasting the finals on ESPN, arousing the ire of critical parents, teachers and youth protection groups. "The schools are offering themselves up for sale," believes Gary Ruskin from the consumer protection organization Commercial Alert. "It shows how much our values are decaying." Tricky youth marketingSince the beginning of the James era at the latest, the topic of high school sport and its commercial potential has been an ongoing issue in the USA. It's all about early brand loyalty, sports rights, millions in sponsorship money and the thorny issue of youth marketing. It's no longer just traditional sporting goods marketers who are interested in high school sports, but also consumer goods giants like Procter & Gamble or insurance companies like Allstar. "If a student decides between Coke and Pepsi or between Verizon and AT&T, this decision will generate incredible amounts of money in the long term," says David Carter, Director of the Sports Business Institute at the University of Southern California (USC).
Schools benefit directlyHigh school sports in the USA start at the local level. This is where the professional recruiters look for the next superstar, where the most fanatical spectators - ambitious kids and their parents - are, and where there is the greatest interest from schools interested in sponsorship deals. "The schools are only after one thing: dollars," says Robert Tuchman, President of the marketing company TSE Sports in New York. Drinks and computer manufacturers in particular have become increasingly popular in recent years, as drinks vending machines and computer labs are being set up directly in schools. According to Tuchman, such sponsorship deals often involve seven-figure sums.
After the storms of criticism in the early years, the marketing companies have become more cautious with their offers: A company like Pepsi now offers vitamin-rich juices and low-calorie iced tea in schools rather than cola and lemonade, says Tuchman. Microsoft also emphasizes in its initiatives that it wants to make the Internet and its wealth of knowledge accessible to poorer pupils. "It makes sense for these companies to commit to an entire team or school rather than an individual athlete, so that the money is available for a broader purpose," says David Carter. "Failure to do this conjures up so much negative publicity that the benefits of a sponsorship deal with a school are virtually wiped out."
Big national interestBig media companies also want a slice of the pie. TV broadcaster CSTV, which is part of the CBS network, has now announced a series of on-demand channels with high school sports content, which will be supplied with sponsors by Lebron James' marketing company LRMR Innovative Marketing and Branding. The majority of the games will air at the local level, but promising athletes will also get a national platform.
The local distribution concept also applied to the so-called lifestlye magazine Rise, which has achieved a circulation of over 900,000 copies since its launch ten years ago and is mainly distributed in schools. There is currently strong national interest, says Editor-in-Chief Jon Segal. Almost the entire advertising volume now comes from national advertising companies. "Everyone is looking for the next superstar." The market is there: According to estimates from the National Federation of State High School Associations, 7.2 million students were active in sports last school year - an 80 percent growth since 1972.
The trend has now spread to digital platforms. Websites such as Takkle.com want to act as intermediaries between talented athletes and talent scouts and give teenagers a platform to present themselves - a kind of MySpace for athletes. The aim is to ensure that sponsors don't miss out on the next Lebron James.
Gerti Schön, New York
