NBA ALL-STAR WEEKEND REACHES RECORD FOR AD SALES

Turner reaches sellout level for basketball weekend

A powerhouse ad market and double-digit ratings gains primed the pump for a quick sellout of TNT’s 2011 NBA All-Star Game Weekend.

As evidenced by a swell of automotive, beer and movie dollars, demand for a piece of pro basketball’s annual celebration of itself was so great that Turner Sports has raked in an estimated $36.5 million in All-Star ad sales, a leap of 25 percent versus last year’s take.

“This is probably the strongest sports marketplace in history,” said Jon Diament, Turner Sports evp, ad sales and marketing, adding that NBA on TNT dollars are up 30 percent.

Tipping off Sunday, Feb. 20, TNT’s All-Star Game telecast will be presented by Kia Motors for the second year. Sibling auto nameplate Hyundai also reprises its 2010 positioning, repeating as the presenting sponsor of the postgame show. Other auto brands buying :30s during in-game coverage are Acura, Chrysler and Ford.

As expected, beer and spirits are well represented, with Anheuser-Busch InBev shooting it out with rival MillerCoors. London-based Diageo, producer of Smirnoff, Johnnie Walker and Guinness, has also bought time in the telecast.

While sagging entertainment ratings and sports’ imperviousness to the DVR have marketers shifting dollars to live events, Diament said the power of the All-Star Game lies in status and versatility.

“We don’t care if the money is falling out from somewhere else,” he added. “Along with all the star power, what makes the weekend so attractive is that it offers so many opportunities for us to create extra value for our clients.”

After a 10 percent drop last year, fans are expected to return in droves to the 2011 All-Star Game. Through 34 NBA telecasts, TNT is up 16 percent to 2.36 million viewers this season.

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NBA Lockout Would Put $1B in TV Ad Revenue at Stake

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NEW YORK (AdAge.com) -- Halfway through the 2010-11 National Basketball Association season, it's already been one of the finest in league history by almost every metric -- and that's just one more reason why a potential lockout and protracted labor negotiation between the owners and the players will threaten far more than simply the bottom line of a financial statement.

Although the National Football League's potential labor dispute is more top of mind -- its collective bargaining agreement with players ends in six weeks -- the NBA is dealing with its own issues. While its current agreement with the players doesn't expire until June 30, both sides are trying to avoid a situation that some sports-marketing experts have termed "more dire" than the NFL labor conflict.

At stake? About $1 billion in TV ad revenue for Walt Disney Co.'s ABC/ESPN and Turner Broadcasting's TNT, the main rights holders for NBA games; sponsors and advertisers that are facing the possibility of a second potential sports-programming platform disappearing; a global stage that Nike (and, to a lesser extent, Reebok) uses to hawk shoes; a huge chunk of the $2.7 billion licensed products market, most of which Adidas makes and sells; and brand equity at a pivotal time for the league, both domestically and internationally.


And don't think it isn't real. Phoenix Suns player Jared Dudley recently tweeted: "If you are in the NBA: I need all NBA players to save there [sic] money. Be prepared to live without a check for at least a year. This is serious."

The NBA is as hot as it's been in years. The buzz began three months before the season even tipped off, when LeBron James announced on live TV last July during "The Decision" that he would be leaving his hometown Cleveland Cavaliers for the Miami Heat. The league reportedly had a record 50,000 new season-ticket requests. The buzz has continued through the first half of the season with the potential for an NBA Finals between Mr. James and the Los Angeles Lakers' Kobe Bryant -- by far the two most marketable players in the league -- as well as the resurgence of big-market teams such as the New York Knicks and Chicago Bulls and the emergence of young stars such as Blake Griffin of the Los Angeles Clippers and John Wall of the Washington Wizards.


Attendance at games is flat, down 1% compared to last year, but TV ratings on ESPN and TNT are up a whopping 30%. Advertisers and sponsors have noticed the resurgent fan interest.

The two sponsors that stand to lose the most are the newest ones -- Spanish banking group BBVA and American Express. BBVA, which is looking for increased brand exposure, signed a four-year, $100 million deal with the league this year. And American Express just returned as a sponsor after a five-year absence.

"The problem is this," said one chief marketing officer for an NBA partner. "It's not so much the money that we spend with the league and on the ads, it's how do you fill the hole in the promotional schedule? I mean, you can give me a make-good, but sometimes there's no real way to make good."

TNT clearly has the programming to fill the void if there is no NBA next season, but sports-centric ESPN would have to scramble. Unlike the NBA lockout in 1999, ESPN no longer has the National Hockey League to fall back on. And, according to a report prepared by analysts from RBC Capital, Disney derives 55% of its revenue from sports, primarily from ESPN.

As with the NFL, the NBA dispute is mostly over money. The NBA, claiming it lost $370 million last year, wants to change entirely a system that currently gives the players 57% of the revenue. The league doesn't open its books, so that revenue loss is disputed by the players union.

"Nobody is anxious to have a lockout or a work stoppage," said Neil Pilson, the former CBS Sports president who now runs his own consultancy, Pilson Communications. "From a cable [network] standpoint, a lockout would be manageable. But then you have a lot of goodwill there that's threatened."

And that goes beyond just the U.S. More than 300 million people play basketball recreationally in China, which has a deep fascination with the NBA and its superstars. Mr. Bryant was treated like a rock star -- some might even say a god -- when he played for the U.S. team in the 2008 Olympics in Beijing.

And what of the sneaker business? The basketball shoe market is a $2.4 billion market. Between the traditional Nike brand and Nike-owned Jordan Brand and Converse, the Swoosh controls 94% market share in basketball shoes. Though it might seem like it, Nike is not an official NBA sponsor.

Nike, through a spokesman, declined to comment. Matt Powell, an analyst with Charlotte, N.C.-based SportsOne Source, said, "Kids are the primary buyers and if kids are still playing ball, it won't have a dramatic impact. But it will have some impact. With no NBA, there's no way for Nike or Reebok to showcase a new guy [in endorsements]."

Story by Rich Thomaselli of www.adage.com

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Now I am in no way a Kobe Bryant fan but I do respect the work that he puts in towards his craft and how he is a proven winner under the guidance of Phil Jackson of course. I truly do not appreciate how he has become a carbon copy of Michael Jordan on the court. The way he shoots, walks, and even celebrates. C'mon Kobe get your own swag. Go Celtics and #teamlebron

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I HOPE THE CLEVELAND CAVALIERS ARE FOCUSED THIS SEASON TO WIN THE TITLE. THE VICTORY WOULD BE EVEN SWEETER IF IT'S AGAINST THE LOS ANGELES LAKERS.