NCAA News Archive - 2002

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NCAA to use fewer and bluer corporate partners to foster mission


Mar 18, 2002 12:17:48 PM


The NCAA News

One of the aspects of the bundled rights agreement that will change significantly from an administrative standpoint but very little from a quality-product standpoint is the NCAA's corporate-partner program.

The players are still the same, but the way the game will be played is a bit different. Host Communications, rather than having a direct contract with NCAA, now will be a sublicensee of CBS. Host's job still will be to secure partnerships with top companies, but the focus has shifted slightly from quantity to quality.

Host is in the last year of a $75 million contract with the NCAA in which it sold partnerships exclusively for marketing, publishing and radio rights and did not include television.

Under the new arrangement, television will be included, which will make the partnerships more attractive, though more expensive.

Mark Kidd, president and CEO of Host, said it will be a larger investment for companies but a greater return.

"Now we have an integrated package that will be priced category-specific and will include TV time," he said. "This will be good for corporations because they'll have one place to get access to all the NCAA's assets."

Kidd said the contract could be a prototype for how corporate America interacts with sports.

Big East Conference Commissioner Mike Tranghese agreed, saying that anyone who is involved in TV understands that the days of corporate America making simple media purchases have passed.

"When entities decide to make a media purchase now, they're looking for a means of marketing themselves in addition to just buying the advertising time," he said.

The advantage for the NCAA is that it will have inertia from high-energy companies whose investment will be in the NCAA as much as it is in the Association's assets. In other words, the NCAA will benefit from these corporate "champions" because they champion the ideals of the Association.

"We expect to have fewer corporate partners, but greater involvement from those we have," said NCAA President Cedric W. Dempsey. "Collectively, we'll develop message points that fit the NCAA, the TV networks and the corporations. We're not going to take partners who see this just as a commercial venture. We want partners who are involved with us because they believe in what we are trying to accomplish."

Dempsey said corporations and the NCAA need each other, and that the relationship is mutually beneficial.

"We need them because the exposure we get is much greater than we ever could've had," he said. "We couldn't afford to buy the exposure time otherwise. And companies need us because we help 'sell' them. Yeah, GM wants to sell cars, but just as important, they want to sell who they are, too."

Kidd said the NCAA will benefit from mingling with companies who have established solid reputations with their publics. If those publics, some of which might think the NCAA has a negative image, see companies they respect touting the NCAA mission, there will be a natural benefit.

"When you work with blue-chip companies that have stellar relationships with their consumers, then the Association's brand and mission are naturally enhanced," Kidd said. "Having the combined power of a CBS and a Disney not only broadcasting NCAA championships but also committed to communicate to the public what the NCAA stands for could be very powerful."

So far, according to CBS Sports President Sean McManus, the increased price tag hasn't deterred corporations from being interested.

"The reaction we've received from the advertising community has been positive, considering that we're asking for significant increases in the rights," he said.

Kidd said he's not surprised, either.

"The reality is that corporations and athletics are intertwined," said the Host CEO. "The right partners can help you advance your message and what you're trying to accomplish.

"And money is needed to run athletics programs," Kidd said. "The NCAA is in a position to create the prototype marketing platform for college sports that other institutions and conferences can follow."

-- Gary T. Brown


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