2007 has already been a great year for globalizing sports, if you define globalization as importing some of the best athletic talent to the United States. This “brawn drain” particularly bothers baseball fans in Japan, gives Latino audiences in the U.S. a few superstars to cheer for, and provides American companies with some new marketing angles to reach domestic ethnic and global audiences.
On the baseball diamond, the trilingual Boston Red Sox advertised their season opener with advertisements saying “Konichiwa! ¡Hola! Hello to the 2007 season.” The Japanese welcome was to Daisuke (”Dice-K”) Matsuzaka, who joins countryman Hideki Okajima in Boston. Matsuzaka will earn $52 million over six seasons plus another $51.1 million that the Red Sox paid just to negotiate with him. Compare that with the 330 million yen ($2.8 million) he made last year in Japan. Back in Japan, fans are concerned that the country is losing its best talent to U.S. teams. Meanwhile, with Hispanic-surnamed players like Manny Ramirez and David Ortiz, the Red Sox compete with the Dominican-led New York Mets for the affection of U.S. Latino baseball aficionados.
Colombian Formula 1 racing star Juan Pablo Montoya traded his open-wheel McClaren-Mercedes (1,200 pounds) ride for the left-turn-only cockpit of a Dodge NASCAR racer (3,400 pounds), competing against Chevrolets, Fords and Toyotas instead of BMWs, Ferraris and Strykers. When we called, Montoya wouldn’t tell us what he makes, but top NASCAR drivers earn on average around $5 million plus another $10 million in endorsements. Driving for McClaren brought him $14 million annually. NASCAR is hoping that additions like Montoya will draw more U.S. Latino fans to the sport.
In January, European soccer icon David Beckham signed a five-year contract with the Los Angeles Galaxy. At the ripe old age of 31 and on the downward slope of his career, he could earn more than $250 million during his stay in LA. That sum includes $6.5 million per year in his Galaxy pay packet and a healthy chunk of cash for shared earnings and endorsements.
A $5- to $7-million per year base salary sure sounds like a lot of money to pay anybody. Where’s it all coming from? In the case of Beckham, his presence has already boosted the value of the Galaxy. Last month rumors were circulating that a prospective buyer offered $100 million for the team – that’s a hefty premium over the mere $33 million offered for DC United. His appearance on the roster translates into real value for the team’s owners. Who’s watching the games? There are a lot of U.S. kids who grew up on soccer instead of baseball and hope to “Bend it Like Beckham”. And Beckham, of course, is familiar to legions of Hispanic fans who followed his career with Real Madrid after he left Manchester United. The Latino demographic offers a big potential audience that soccer’s second-tier status as an American sport hides.
On other financial fronts, Herbalife signed a multi-year, multi-million dollar deal to put its name on the team’s jerseys, the Galaxy sold all its season tickets, and competitors look forward to selling out their games whenever they play against the Galaxy. Rivals aren’t restricted to North America. With Beckham on the roster, the Galaxy will play highly anticipated and widely televised “friendly” non-league games with teams from world leagues in Europe and Asia.
The audience for Beckham is both domestic and global. Whenever and wherever the Galaxy play, the logos of Herbalife and other sponsors will be beamed around the country and the world. And if U.S. Latino fans click on the United States – Spanish option under the “select your country” link at Herbalife, they’ll be greeted by information tailored to them in Spanish. Thus, the nutrition and weight management company completes the cross-channel loop that’s a big part of successful multicultural Web site marketing.
Don DePalma is the founder and chief research officer of the research and consulting firm Common Sense Advisory, and author of “Business Without Borders: A Strategic Guide to Global Marketing.”
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