Wednesday, October 1, 2008

Nike vs. Reebok: NFL Contracts










NIKE VS. REEBOK


Joe Garrigues

THE BENEFITS...
Joe Garrigues
OVERVIEW
Nike is probably regarded as the most well balanced and athletic shoe around, but sometimes advertising can be misleading as we all know. Nike shoes are great for running, walking, and so on, but the shoes themselves seem to run a bit wide and will squish when you walk. This is great for casual wear, but when you're running or walking it can be very uncomfortable and dangerous. A loose fitting shoe, or one that slides or squishes will tend to give the wearer blisters around the heal causing unneeded pain and discomfort.Reebok shoes fit like a glove to your feet, if you buy the correct size. This is ideal for running or walking because the shoe will still offer protection, but you hardly realize you're wearing it because of it snug fit.


CONTRACT USE

There is an overall contract between the NFL and Reebok as a whole as far as jerseys, pants, and Helmets. However players are allowed to pick which company to sponsor by wearing equipment such as gloves, shoes, cleats, shoulder-pads, mouth guards, etc.



WHERE DO BOTH COMPANIES GET SPONSORSHIPS AND ENDORSEMENTS?

Reebok:

The benefit from going with Reebok would be that because the NFL and the NBA is already sponsored by this company, you have automatic advertisement. So when Reebok has any commercial, radio advertisement, or paper ad, the first thing that is thought of is the NFL. The more players that sponsor Reebok, the more equipment Reebok sells, the more money the NFL and its athletes make. The company holds exclusive rights to manufacture and market both authentic and replica uniform jerseys and sideline apparel of the teams of the National Football League since 2002, the Canadian Football League since 2004, and is the official shoe supplier to the NFL and Major League Baseball. In addition Reebok acquired official National Hockey League sponsor CCM in 2004, and is now manufacturing ice hockey equipment under the CCM and RBK brands, and has signed popular young stars Sidney Crosby and Alexander Ovechkin to endorsement deals (Crosby for Rbk, Ovechkin for CCM). Reebok has phased out the CCM name on NHL authentic and replica jerseys in recent years, using the Reebok logo since 2005. Reebok is also endorsed by Allen Iverson, Yao Ming, Nicole Vaidisova, Jelena Jankovic, Thierry Henry, Vince Young, and Baron Davis.



NIKE:



The main thing with Nike is that it isn’t really the leagues or teams they sponsor, but the people they endorse. For example, Michael Jordan, Tiger Woods, LeBron James, Lance Armstrong and countless others who are number one idols to kids and up and coming stars. Every grade school, high school, and college player wants to wear what the best professional athletes wear. Without even explaining to you what that means, you can already imagine how much money that generates for the company, and how much it gives back to its endorsements.
Nike's endorsement and sponsorship financial commitments have once again surged, jumping to $3.4 billion as of the end of February, according to the apparel and sneaker giant's most recent quarterly report filed with regulators.
In less than two years, the amount of money Nike owes athletes and teams and leagues rose 105 percent. The figure has jumped 21 percent in the last nine months.
Beaverton-area-based Nike (NYSE: NKE) is spending vast sums in Europe to make a name for itself in soccer, and the largesse is beginning to attract the attention of Wall Street analysts, who had largely been mum about the increases until last month.
Nike also sponsors some of the leading clubs in world football, such as Arsenal, Manchester United, Barcel, and also sponsors various minor events including Hoop It Up (high school basketball) and The Golden West Invitational (high school track and field). Nike uses web sites as a promotional tool to cover these events. Nike also has several websites for individual sports, including nikebasketball.com, nikefootball.com, and nikerunning.com.



VIEW EQUIPMENT

NIKE FOOTBALL http://www.nike.com/nikeos/p/usnikefootball/en_US/?sitesrc=USLP
REEBOK FOOTBALL http://www.reebok.com/US/#/sport/american-football

No comments: