Funding in Sports(BSM 504)

ASSIGNMENT 2

1. What is the benefit of endorsement of sports persons to the companies?

1. The first reason is that athletes are celebrities and celebrities help
brands to tap into their fan base and audience. They open new
markets and demographics for these brands. Consider Lebron James,
one of today’s most sought-after and, as research shows, most effective
endorsers. The mere fact that Lebron promotes Sprite and McDonalds
(although not the healthiest nutrition choices) may encourage his most
devoted fans to consume and buy from these brands, allowing them to
perhaps attract and retain a younger and more diverse demographic.
We’ve seen this time and time again with multiple different athletes.

2. A second explanation is that endorsements trigger and grow sales by

reassuring consumers of the quality of the endorsed brand. Many
times consumers cannot easily assess the true quality of products, at
least not before they consume them. Seeing a celebrity attaching his or
her name and good reputation to a product may help alleviate some of
their uncertainty.

3. A third reasoning is that an alliance with an endorser can convey

important information about an attribute that helps differentiate a
brand from its competitors. This is particularly helpful for products or
brands that are hard to explain, demonstrate, or measure.

Endorsers can create incredible value for the companies that rely on their
services.

This is why the best endorsers are compensated so well, and why most top
athletes in America make more money from sponsorships than from salary or
winnings.

Not only that, but it holds true that stock prices for these companies may rise as
well. Marketers of brands that employ the services of celebrities will know that
few promotional strategies can impact the bottom line as much as and as
quickly as forming an alliance with a celebrity.
 Even though, these brands who rely on athlete endorsers know they can be
taking a huge risk as their partners can suffer from injuries, a loss of form,
scandals, rumours, and a range of other downfalls, don’t expect these brands to
cut back on the strategy altogether, as endorsers generate considerable value for
these brands overall.

Athletes are the endorsers of the future and don’t expect that to change anytime
soon.

2. Mention any ten sports superstars and their endorsed brands.

Ans. 1. Maria Sharapova, Tennis

Endorsements: $297 million during her entire career

Top Brands: Nike, Motorola, Colgate-Palmolive, Tag Heuer, Land Rover,

PepsiCo, Evian, Head, Porsche

2. Derrick Rose, Basketball - New York Knicks

Endorsements: $185 million over 14 years

Top Brands:
Adidas

3. Roger Federer, Tennis

Endorsements: $100 million/year

Top brands: Rolex, Mercedes Benz, Uniqlo, Wilson, Mercedes-Benz, Jura,

Lindt Chocolate, Credit Suisse, Sunrise, Net Jets, Moet & Chandon,
Gilette, Procter & Gamble

4. Tiger Woods, Golf

Endorsements: $60 million/year

Top brands: Nike, Kowa, Upper Deck, Hero Motor Group, Monster Energy,
Rolex, Discovery Communications, Bridgestone, TaylorMade

5. Lebron James, Basketball - Los Angeles Lakers

Endorsements: $60 million/year

Top brands: Nike, Coca-Cola, Nike, Upper Deck, McDonald's, Samsung,
Microsoft

6. Cristiano Ronaldo, Soccer - Juventus

Endorsements: $45 million/year

Top brands: Nike, Herbalife, Jacob & Co., Toyota, KFC, Tag Heuer,
Samsung, Konami, Unilever, MTG, DAZN, Altice

7. Stephen Curry, Basketball - Golden State Warriors

Endorsements: $44 million/year

Top brands: Under Armour, Samsung Electronics, Coca-Cola, Kia

Motors, Fanatics, Chase, Callaway Golf

8. Phil Mickelson, Golf

Endorsements: $40 million/year

Top brands: Rolex, Callaway Golf, Heineken, KPMG, Amgen, Intrepid

Financial
Partners

9. Kevin Durant, Basketball - Golden State Warriors

Endorsements: $35 million/year

Top brands: Nike, Sonica, Sparkling Ice, Nike, EA Sports, Gatorade,

Panini America, Sprint, Degree Men

10. Naomi Osaka - Tennis

Endorsements: $34 million/year

Top brands: Yonex, Procter & Gamble, Mastercard, BodyArmor, All Nippon
Airways, Nissan, Nike, Nissin Foods Holdings, Shiseido