FedEx Ends Super Bowl Sponsorships; Keeps BCS

After 12 straight years of advertising during the Super Bowl – and a presence in 18 Super Bowls since 1989 – FedEx is bowing out of the 2009 game. At an average price of $3 million for a 30-second spot, lots of companies are making difficult choices about television’s most expensive advertising.

But FedEx is likely to get plenty of exposure during the next week, with its name attached to the 75th annual Orange Bowl game tomorrow night and the BCS National Championship game a week later on Jan. 8.

When the BCS added a fifth bowl game to the mix three years ago, not only did the national championship host location get an extra bowl game, the title sponsors did, too. The eight-figure four-year agreement with Fox to broadcast the BCS games includes a number of ads for the title sponsors during the games and promotion during other Fox broadcasts and in print and radio advertising. FedEx is also the “official overnight delivery service of the BCS.”

Eric Wright, vice president of research and development for Joyce Julius, which measures sponsor exposure, says the title sponsor earns more mentions during the non-championship bowl game, but the value from the national championship game is higher.

“It looks like the sponsor grabs slightly more onscreen time and mentions in their traditional bowl than the championship game, but the ad rates being what they are [in the national championship game] were higher,” Wright said.

For example, Allstate received 61 mentions and two hours and 42 minutes of screen time during this year’s Allstate Sugar Bowl for a total value of $172.4 million, when measured against ad rates during the game. The insurance company got just 50 mentions and one hour and 53 minutes of screen time during the BCS National Championship game, but that time was valued at $231.1 million, Joyce Julius reported.

By contrast, the title sponsors FedEx for the Orange and Tostitos for the Fiesta and presenting sponsor Citi for the Rose Bowl, received less value from their exposure, even if there were more mentions or screen time. Joyce Julius figures show FedEx received 48 mentions and an hour and 49 minutes of screen time for a value of $117.3 million. Tostitos got 61 mentions and two hours and 12 minutes of screen time for a value of $142.3 million. And Citi got 29 mentions and an hour and 42 minutes of airtime for a value of $107.4 million.

The trend was similar in 2007, the first year the fifth game was added to the BCS rotation. Tostitos got 86 mentions and two hours 10 minutes of airtime for a value of $101.2 million for the Tostitos Fiesta Bowl. For the BCS National Championship game, the company got 36 mentions and an hour and 50 minutes of airtime for a value of $175.3 million.

Meanwhile, Fedex received 66 mentions and one hour and 55 minutes of airtime for a value of $88.6 million; Allstate received 56 mentions, an hour and 58 minutes of screen time for a value of $89.6 million; and Citi got 26 mentions and just 16 minutes of air time for a value of $26.6 million from the Rose Bowl.

NHL Chief Bettman Denies Phoenix Coyotes Are In Trouble

In an interview before the third annual Winter Classic outdoor NHL game at Wrigley Field, NHL Commissioner Gary Bettman said that the Phoenix Coyotes "will be okay" in an interview with CNBC's Darren Rovell.

The Coyotes are owned by Jerry Moyes, the owner of national trucking firm Swift Transportation. In response to reports that the league is helping them get a cash infusion or whether they're going to be bankrupt, Bettman said "I don't believe they're going to be bankrupt. They're not going to miss any payroll. There always seems to be in this sector of the business world a lot of rumor and speculation. They've got some challenges but we think they'll be okay."

When Rovell followed up with a question as to whether the league supporting the team financially right now, Bettman stated "It's not unusual for a club to get advances against money that the league typically has for clubs, but Phoenix will be okay."

The NHL has thrived in the last three years with record revenue and attendance for the 2008-09 season.

Petty Closes Shop; Merges With Gillett Evernham

As 2008 comes to an end, so will the Petty Enterprises that NASCAR fans and racers came to admire.

Multiple sources have confirmed that after 60 seasons of stock car racing and 10 championships, America's first family of stock car racing will shut its doors and merge with the team currently known as Gillett Evernham Motorsports.

A deal was inked between Petty Enterprises and team owner George Gillett on Christmas Eve, but the terms of that agreement have yet to be divulged. A formal announcement is expected early next week.

The venerable No. 43 Dodge covered with the trademarked Petty blue glaze will become part of the Gillett stable with Reed Sorenson expected to be behind the wheel. Bobby Labonte, who finished 21st in the point standings, parted ways with the Pettys on Dec. 11 following a three-year stint in the No. 43 car.

Most of the remaining 39 employees at Petty Enterprises will conclude their duties at the Mooresville-based shop on Wednesday. The company moved from its original shop adjacent to the Petty homestead in Level Cross, N.C., in January to what was formerly the Yates Racing complex.

Robbie Loomis, Petty Executive VP of Racing Operations, is expected to assume a managerial role under the new partnership, which will likely be rebranded under the Petty banner. Former car chief Ray Fox Jr. will assume a similar role at JTG-Daugherty Racing with the No. 47 team.

David Zucker, who was named CEO of the team when private equity firm Boston Ventures purchased controlling interest in June, is expected to be reassigned to the Petty Driving Experience.

Source: FoxSports

Colts' Lucas Oil Stadium Gives A Sponsor Bang For Its Buck

The Indianapolis Colts closed out their first regular season at Lucas Oil Stadium last week. The stadium offers an example of how teams are working to generate more dollars from sponsors while giving companies more real estate and fans more things to do inside sports venues.

Sponsors don’t just get signage anymore. That’s been true for some time, but in Indianapolis, companies’ names are connected to an actual section of Lucas Oil Stadium. The companies work with the Colts to decorate and program the areas to maximize their businesses and entertainment for fans.

There’s the Lucas Oil Gate, naturally, the Huntington Bank Gate, the hhgregg Gate and so on. The Air Tran Food Court features a first class fuselage that people can sit in. The team’s five- to eight-year sponsor contracts are worth $10 million to $12 million annually.

“We are considered a small market NFL team so a new stadium was critical for us. Based on the way the economics of the National Football League work today, we needed a stadium that was going to drive revenue,” said Peter Ward, Colts senior executive vice president. “This helps us stay competitive on the field...This allows us the opportunity to maximize our revenue.”

At the Lucas Oil Gate, there are dragsters; old-fashioned gas pumps that have LCD TVs installed in them; over-sized oil cans that also serve as stations for TVs; planes that hang from the ceiling; and a horseshoe-shaped stage for bands and TV and radio shows.

“Our goal was to create areas that could be sponsored and themed that also create points of interest for the fans. It had to work for the sponsors as well as our fans,” Ward said.

Hhgregg, a TV and appliance retailer with stores in nine states including Florida, has a 26,000-square-foot interactive fan area at the stadium’s south entrance with flat screen TVs, digital cameras and even washers and dryers on display. There’s an interactive video game in which fans can throw or kick a football across a virtual screen designed to look like Lucas Oil Stadium.

There are also six 52-inch Samsung TVs, a seating area in the shape of a horseshoe, and poles that look like goalposts. There’s a product pavilion with Electrolux appliances, including refrigerators. Everything is wrapped in hhgreg signage, but there's also signage for Electrolux, Sony and other appliance brands.

In addition, the Colts’ official appliance retailer of flat panel TVs, has sales associates working the gate entrances, handing out coupons.

“We’ve had a long-standing partnership with the Colts,” said Jeff Pearson, hhgregg vice president of marketing. “We sell a large number of flat panel TVs. All of that helps us sell TVs … Lucas Oil Stadium is going to be a place a lot of people go through in the next number of years.”

Rovell: MLB Salary Cap?

By Darren Rovell, CNBC

Milwaukee Brewers owner Mark Attanasio caused quite a stir when he told Bloomberg that the league "may need to impose a salary cap to preserve competition."

After the New York Yankees signed C.C. Sabathia, A.J. Burnett and Mark Teixeira this offseason, Attanasio said that he wasn't sure anyone could compete with them.

I understand that Mr. Attanasio might be frustrated by the fact that he doesn't think he can sign the players the Yankees have signed, but he's really misguided if he's going to try to use the competitive angle.

The last time I looked at the record books, the New York Yankees had what was always classified as outrageous payrolls and my "research" has confirmed that the Yankees haven't won a championship since 2000.

Readers of this blog know I define parity as the number of the teams that have won the championship over a certain period of time. Do I have to run the 15-year list again for Attanasio? As you can see, there's no relation here between salary caps and competitive balance. Over the last 15 years, baseball has more winners than two "capped" sports and only one fewer winner than the hardest of the capped sports.

(FYI: The NHL, NFL and NBA all have salary caps.)

Here's the list.

NFL (11 winners): Giants, Colts, Steelers, Patriots, Buccaneers, Ravens, Rams, Broncos, Packers, Cowboys and 49ers.

MLB (10 winners): Phillies, Red Sox, Cardinals, Marlins, Angels, White Sox, Diamondbacks, Yankees, Braves and Blue Jays.

NHL (9 winners): Red Wings, Ducks, Hurricanes, Lightning, Devils, Avalanche, Stars, Rangers and Canadiens.

NBA (7 winners): Celtics, Spurs, Heat, Pistons, Lakers, Bulls and Rockets.

The Yankees can make more mistakes with their money, but the idea that it somehow guarantees them a championship is completely ridiculous.