"The Sports Professor" Rick Horrow, in conjunction with promotional partner Northern Trust, reviews the business of tennis and the endorsability of the tennis superstar as the "Summer tennis season" begins with the 2005 French Open at the red clay of Roland Garros
This week marks the unofficial beginning of the summer tennis season across the world. The professional tours finish their tune-ups for the French Open in Paris, the second Grand Slam of the year.
The beginning of tennis' summer season reveals mixed business results. Last fall, the Tennis Channel partnered with Universal Pictures to market the film Wimbledon with a big splash -– and with heightened marketing expectations similar to those for Bobby Jones: Stroke of Genius in golf and Seabiscuit in horseracing. More than 70,000 tennis facilities opened member databases to direct marketing, and cable affiliates ran over 250 spots promoting the film and co-branded advertising campaigns. The resulting box office numbers were well below expectations, though the movie continues to sell on DVD.
Last month, Reebok announced that it would not re-sign Andy Roddick after his five-year agreement expired, though his long-term endorsability remains unquestioned. On the other hand, Sony Ericsson recently agreed to pay $88 million over six years to sponsor the WTA Tour (and its growing stable of endorsable superstars) –- the largest deal ever in women's sports or professional tennis.
The tennis business continues to make progress toward growth and stability. This week, we'll look at it from three perspectives: its stars; its tours; and its grass-roots following.
THE TENNIS SUPERSTAR – CORPORATE ENDORSABILITY
Corporate America continues to appreciate pro tennis demographics. The average tennis fan is a 31 year-old upwardly mobile professional with an average household income exceeding $62,000. Wimbledon attracts such blue chip sponsors as Rolex and IBM, and earns more than $14 million annually from global corporations.
Individual superstars are reaping corporate benefits. The current endorsement darling appears to be Maria Sharapova, last year's Wimbledon winner and 17 year-old phenom. Her recent Canon deal brought in nearly $6 million -- Nike, Prince, and others are also on board, along with modeling in Italian Vogue and other media outlets.
Serena and Venus Williams, on the other hand, have used their superstardom to create mega endorsement deals that transcend tennis. According to Forbes, Serena earned an estimated $17.5 million in 2004, peaking in December when Nike tennis introduced her Aneres clothing line. She has appeared in Law and Order, My Wife and Kids, and other television shows in the last year, with more on the way.
Simultaneously, the Women's Tennis Association introduced a worldwide branding campaign last year under the slogan "Get in touch with your feminine side." The campaign featured 30-second commercials and print ads by most major women stars, along with promotional efforts around last year's U.S. Open.
Alongside contemporary superstars, a larger marketing effort has been underway to reconnect with some of tennis' "old reliables." The Andre Agassi/Steffi Graf $25 million television ad campaign by Genworth Financial began in June 2004 and continues to air. Its popularity is a plus for Genworth (formerly GE Financial Assurance, which spun off in a $2.8 billion public offering last year). Similarly, the WTA has used stars Chris Evert, Monica Seles, and Mary Jo Fernandez in a "Got Milk?" campaign to emphasize the sport's traditional roots.
Then there's Anna Kournikova. Though retired (and still victory-less) from competitive tennis, Anna remains an Internet and entertainment hit -- her $150,000 endorsement deal as the "tourism ambassador" for Pattaya solidified the Thailand beach town's image as a "good time" destination.
Don't forget the up-and-coming superstars. In January, Nike inked a $2 million deal with French junior Gael Monfils -– paying him $500,000 annually for four to five years. The agreement is viewed as one of the top deals "ever given to a male player entering the pro ranks." And newfound superstar Rafael Nadal got into trouble last week at the ATP Telecom Italia Masters by wearing Nike logos much larger than what the governing bodies allow –- a Nike swoosh measuring 7 inches by 7 inches. Nike is not-so-subtly attempting to flex its muscle, entering into the high visibility season beginning with the French Open.
