Hot to Trot
The Harlem Globetrotters and their sponsors prepare for a 75th season.
Since 1926, the Harlem Globetrotters have played 20,000 games in front of 100 million people from 155 countries. This January, the Clown Princes of Basketball kick off their 75th season with a reenergized corporate operation behind them, an expanded schedule in front of them, and more sponsors along for the ride.
In the world of show business and sports, the Globetrotters remain unique. Wholesome role models, entertaining athletes, and nice guys – rare traits in today’s world of professional sports. While the team has been delighting fans for decades, lackluster business moves hurt the property in the early `90s. Looking to turn the business around, former player Mannie Jackson bought the bankrupt Harlem Globetrotters International (HGI) business in 1993.
Since then, the company has tripled in size and revenues are up 90 percent, thanks to solid business investments, a restructuring, and new corporate units that reversed waning exposure and helped the Globetrotters reach fans in new ways. One prime growth driver is the organization’s new sponsorship unit, which currently accounts for eight percent of company revenues. HGI is looking to boost that percentage to 10 percent by 2003.
The newest crew of sponsors is taking its marketing messages courtside, engaging consumers with memorable interactive campaigns.
Dishing it Out Spartanburg, SC-based Denny’s became a sponsor in 1996, first as a limited 25-city national partner but later as the title sponsor linked to all 200 North American cities the team dribbles through. The 1,600-unit restaurant chain now activates its ties in several ways. Kids menus feature Globetrotter images and special activities such as punch-out mini-basketball hoops. Players appear in restaurants to sign autographs. Kids receive activity books when they sit down, and can win tickets to games where they’ll get pep talks from players and coaches. Denny’s also sponsors a 15-market Globetrotter summer basketball camp, and uses trips to the camp as prizes for local sweeps.
Over the last few years, the chain has run a self-liquidating offer every first quarter that so far has unloaded more than 500,000 basketballs. “We’ve come to realize this property is an institution,” says Susan Schneider, Denny’s director of national promotions and community relations. “Kids love the players.”
Glenview, IL-based Kraft Foods’ Miracle Whip recently stepped onto the court for its rookie year. The sandwich spread brand ran its first campaign this fall with an on-pack 3-D card giveaway. Six million jars featured players on labels and one of four cards attached to lid tops. P-O-P supported the national program. The brand is currently planning a flight for 2001. “The Globetrotters and Miracle Whip have a similar appeal,” says associate brand manager Augie DeLuca. “We’re both fun, appeal to families, and like to laugh at ourselves.”
Athletic gear giant Reebok, Stouton, MA, repositioned its sponsorship in 1999 to directly reflect children’s product lines. Last winter, the company invaded half of the Globetrotter venues in North America with demos, giving kids the chance to test-drive the new Traxtar sneaker (which displays electronically how high they jump or how fast they run). The company also ran half-time shows and coordinated player appearances at retail footwear stores. “We’re showing off products and letting kids experience them in a fun environment,” says Michael Phelan, category director-kids division. “The Globetrotters promised us a certain crowd. We’ve gotten what we paid for,” he adds.
Brand Tryouts Linking to the Globetrotters gives brands access to one million consumers, mostly active young families out for a good time. The team will play 200 games in North America in 2001 and as many as 100 more in 30 foreign countries. Globetrotter executives give potential sponsors an easy way to test waters via pilot programs, which run anywhere from 10 to 50 games. “When they’ve run their course, we get together with the brand and talk,” says Colleen Lenihan, president of Globetrotter Properties.
From there, many companies sign on as permanent brand partners with deals that typically range from three to five years. Phoenix-based pet retailer Petsmart, for one, runs an Authority Fly Ball clinic in stores to train pets for a dog relay race held during halftime at games. Players support with in-store appearances.
Other sponsors include Yahoo, Procter & Gamble’s Pringles, Valvoline, and Northwest Airlines (the latter of which held a halftime dance-athon at 20 games last season). Buena Vista Theatrical Group, a division of Walt Disney World, next year will open Hoopz, a musical about the Globetrotters, on Broadway.
Globetrotter merchandising, which until 1997 was handled by an outside party, is thriving. Since taking the activity in-house, HGI has increased profits by 300 percent. A lot is happening overseas as well, with the team attracting foreign sponsors into the fold. A new agreement with Club Med International will send players to various vacation resorts for clinics and demonstrations.
Overall exposure could get a nice bump later this fall, when New Line Cinema’s Little Nicky starring Adam Sandler is released. In the film, the boys in red, white, and blue have their first memorable Hollywood cameo since their infamous 1970s appearances in the Scooby Doo cartoon series.
That’s a slam dunk.
