FC NOW: The Fast Company Weblog
June 29, 2006
Score Two for Marketers
Soccer legend Pelé and boxer/cultural icon Muhammad Ali are seeking to become champions in a new arena: worldwide business.
They’ve rented out their likenesses to companies that think a household name will help move products. Pelé the man signed a 40-year deal with Prime Licensing, a company devoted solely to Pelé the brand. Before long, his name could show up on everything from real estate to cell phones. Prime estimates that the Pelé business will earn $30 million worldwide in 2007 and up to $100 million in 2008, boosted by long-term endorsement deals with MasterCard and Pepsi.
Ali is behind a new line of healthy snacks aimed at preventing obesity in young people. His partners at Mars, Inc. and G.O.A.T. Food and Beverage (Greatest of All Time, natch) are staying mum on what the snacks might earn the former heavyweight champ, but one estimate says the foods could bring in $50 to $100 million a year—meaning a $1.5 million cut for Ali.
It’s a mad mad mad mad world of celebrity athlete endorsements. Sometimes a mythical product pairing (Michael Jordan’s dunking silhouette on a sneaker) comes naturally; sometimes the endorsements are sort of creepy (Rafael Palmeiro for Viagra). There was Hulkamania, “Bo Knows,” and the erectile dysfunction drug blitz. Then came Mark McGwire’s missed opportunities, Kobe’s blown opportunities, and Lebron’s $90 million Nike deal—before he'd played a single NBA game. And then, of course, there was the grill.
Big George Foreman has earned close to $140 million on the eponymous grill, and has probably inspired other pudgy heroes to see what their names might earn. It seems increasingly likely that soon the highest paid athlete endorsers will be former athletes. Got a product to sell? Call quick--or someone else will.
Posted by Josie Swindler at June 29, 2006 4:53 PM | Category: |
2 Comments
ADVERTISEMENT
FC NOW MENU
NEWSLETTERS
FC NOW CATEGORIES
FC READS
There's a fine line between endorsement that extends equity and endorsement that erodes a star's core value. Understanding the values that a sports star has, extending those equities and finally, exercising some taste, seem to be the only recipes for success. The danger is when an endorsement is only about the money and done with limited brand sense or taste. That's when the overall market value of the individual begins a slow but steady decline. Ali and Pele face these risks, but have such unique global power that seemingly, nothing they do affects their overall image and market value. That luck is rare and only comes from sitting above the rest of the pack in the scale of their achievement. But even they need to exercise care and caution in protecting their extraordinary (brand) names.
Not to mention female skating icons hawking oseoporosis supplememnts, Shari Belafonte's hot flash Peri Menopausal ads and Star Jones for Payless Shoes (like plastic EVER touched that Diva's feet) And Mrs Brady (Florence Henderson) hawking denture cleaning tablets!!! and my all time favorite.. Eric Estrada pushing land development in Florida. It don't get much better than that!!!
What could these companies possibly be thinking? I guess ANY celebrity no matter how obscure or marginally famous will lower the bar further by demeaning themselves and whatever shred of respect and fondness the public had for them.
At the risk of sounding insensitive, i'd much rather remember Mr Ali when he was at his best, stood for his true self despite what others thought, and left his mark on the world. I feel he's being used as a pawn here by a company that stands to make a fortune at his expense. Sad to see things erode to this level. This is just an observation on my part and in no means meant to offend anyone.