Many Sports Industry candidates (Ex. College and Graduate Students) approach the job search with the goal of working for a professional sports franchise. These companies receive hundreds of Résumés per position. The positions usually pay low starting salaries as well. Remember, professional sports franchises are nothing more than small businesses (Generating $100,000,000 in annual revenues). The highest labor cost for the franchises are player salaries.

We advise all candidates to look beyond the pro-sports teams when seeking employment. Consider the companies who purchase commercial time during the live events. Most are FORTUNE 500 institutions, generating billions of dollars in profits. They would have the ability to offer higher starting salaries than the team organizations.

The Sports Business Daily recently published an article highlighting the largest sports ad spenders. Consider seeking positions with these companies as your initial entry into the Sports Industry. Pay close attention to the annual spending numbers. Use various search tactics to find the decision makers in the Sports Marketing/Sponsorship departments.
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Sports ad spending roars back
AT&T Mobility ousts A-B from top spot
By David Broughton, Research Director

Published May 2, 2011, Page 1
Font Size Resize Small Resize Normal Resize Large | Print | Share .AT&T Mobility dethroned Anheuser-Busch as the king of sports advertisers in 2010, a year that saw nearly all blue-chip brands increase their sports ad spending, according to recently compiled data from The Nielsen Co.

AT&T’s wireless division had an estimated $366 million in 2010 sports ad spending on television, according to the data, double what was spent in 2009. AT&T corporate spent an additional $63.1 million promoting the overall entity rather than highlighting a specific product, with nearly all of that coming during the Vancouver Olympics Games.

The increased spending by AT&T fueled a telecom category that as a whole committed $1 billion in ad spending in 2010, according to the research, up 41 percent over 2009. In addition, AT&T earlier this year announced plans to acquire T-Mobile, the No. 4 U.S. telecommunications company by subscribers. The combined 2010 ad spend of the two brands exceeded a half-billion dollars.

Other key findings:

The top 50 advertisers spent a combined $6.6 billion on sports advertising in 2010, up 27 percent over what the top 50 companies spent in 2009 and 22 percent more than 2008.
Forty-six of the top 50 brands increased their sports spending compared with 2009.
Overall, the 11 biggest spenders in 2010 were the same companies and brands as in 2009, though there was movement in the rankings among those top 11.
But while the telcos spent big, it was the return of the auto category that clearly drove the market in 2010, as manufacturers collectively made up 24 percent of the total commitment of the top 100 spenders. That marked the biggest such share of the sports advertising pie in at least nine years.

Just as the auto industry rebounded, five financial institutions made the top 100 list for spending in 2010, the most in at least nine years.

“Sports programming delivers broad overall reach while also over-indexing against the mass affluent audience,” said Charles Greenstein, Bank of America’s senior vice president of global sponsorship. “Sports, especially the NFL, aligned well with our objective of engaging with the mass market, as well as the mass affluent segment.”

The advertising marketplace started out hot during last year’s upfront selling period and that momentum continued during the year. In addition, sports ratings soared, driven by big events like the Winter Olympics and the World Cup, as well as the continued strength of the NFL. ESPN had its best year ever in terms of viewership.

The enhanced at-home viewing experience also helped drive viewership.

Spending information is based on standard rate-card prices for specific national and regional live and taped sports broadcasts on English and Spanish networks. The staging of the Olympics and World Cup can skew year-to-year comparisons for companies, making two-year comparisons notable in some cases. For example, U.S. Olympic Committee and FIFA sponsor Coca-Cola increased its ad spending by 160 percent over 2009, a non-Olympic year, but just 20 percent more than 2008. Procter & Gamble, AT&T and Chevrolet saw similar variances.

For the year, Anheuser-Busch dropped to the No. 2 spot in the ranking with an estimated $356 million spent. It is only the second time in the 17 years that Nielsen has been tracking such data that A-B has not held the No. 1 spot. In 2006, Chevrolet’s significant Olympic ad buy pushed the automaker to the No. 1 spot, ahead of A-B.

Among auto manufacturers, Ford led the way, spending nearly $305 million, and was the No. 4 overall sports advertiser. The auto category’s resurgence was driven largely by substantial increases in spending by European automakers. Mercedes-Benz, BMW, Audi and Volkswagen invested a total of $336 million last year, nearly as much as those brands spent in all of 2008 and 2009 combined.

Perhaps equally as significant as the actual amount invested was the fact that Audi, BMW and Mercedes each committed about 50 percent of their total U.S. ad spending to sports, representing a double-digit percentage-point increase for each compared with both 2009 and 2008.

Geico led strong spending in the insurance category.

Mercedes cracked the top 25 in spending for the first time, spending more than $108 million, according to the data. The company’s four-year deal with the U.S. Tennis Association to be presenting sponsor of the U.S. Open Men’s Singles Championship and the official vehicle of the U.S. Open began last summer and called for national TV media commitments.

Ad spending by categories

SEGMENT 2010 2009 2008 2007
Auto 23.80% 20.00% 21.90% 23.00%
Telecom 11.90% 10.40% 10.80% 11.60%
QSR/Pizza 9.60% 10.70% 9.90% 8.60%
Beer 7.50% 9.00% 7.50% 8.40%
Insurance 6.00% 5.70% 5.30% 5.40%
Movie 5.00% 4.50% 4.40% 3.20%
Credit cards 3.10% 2.90% 3.50% 3.80%
Financial 3.00% 1.50% 1.00% 1.00%
Soda 2.20% 1.80% 2.40% 2.20%
Pharmaceuticals 2.00% 3.70% 2.60% 2.70%

Note: Percentages are portions of total spending by the top 100 companies.
Source: SportsBusiness Journal analysis of data from The Nielsen Co.
Asian-based automakers among the top 100 spenders spent $806 million last year, an increase of nearly 50 percent over 2009 but a drop of 25 percent compared with 2008. In addition, sports made up less than one-third of the overall U.S. ad spending by those companies last year, down from 40 percent in 2008.

Financial institutions returned to sports, combining to spend a total of $265 million, a massive 146 percent increase over 2009 spending. The financial segment made up 3 percent of total sports spending last year, up from just 1 percent in recent years.

Insurance has become the fifth-biggest advertising category, according to the spending data. Companies spent $528 million last year, up 30 percent from 2009. Conversely, the pharmaceutical industry accounted for $172 million, or 2 percent of total sports spending, last year. That is down from more than 4 percent in the mid-2000s.

Top 50 sports advertisers (ranked by total sports ad spending in 2010)

2010 RANK
(2009 RANK) COMPANY/
BRAND 2010 SPORTS
AD SPENDING 2010 TOTAL
AD SPENDING % OF AD
SPENDING
DEDICATED
TO SPORTS CHANGE IN
SPORTS
SPENDING
VS. 2009 CHANGE IN
SPORTS
SPENDING
VS. 2008
1 (7) AT&T Mobility $366,313,812 $1,129,589,500 32.40% 102.80% 37.20%
2 (1) Anheuser-Busch $356,205,906 $440,676,094 80.80% 14.40% 8.70%
3 (3) Verizon $340,529,688 $1,134,530,125 30.00% 38.10% 45.90%
4 (2) Ford $304,976,281 $1,026,098,032 29.70% 22.70% 69.90%
5 (5) Toyota $240,029,368 $983,938,875 24.40% 18.00% 8.00%
6 (10) Chevrolet $238,965,192 $758,333,376 31.50% 43.40% 3.70%
7 (8) Geico $216,789,219 $544,623,000 39.80% 27.20% 58.90%
8 (4) MillerCoors $214,447,797 $284,931,469 75.30% -5.40% 94.80%
9 (11) McDonald’s $202,887,766 $721,521,000 28.10% 30.20% 18.40%
10 (6) Sprint $179,083,297 $512,211,688 35.00% -10.60% -3.50%
11 (9) DirecTV $175,414,641 $381,546,125 46.00% 4.20% 14.30%
12 (25) Nissan $160,993,935 $400,248,382 40.20% 105.90% -0.10%
13 (24) Coca-Cola $144,664,359 $227,839,172 63.50% 77.80% 19.90%
14 (16) Warner Bros. Ent. $138,607,172 $537,765,438 25.80% 25.30% 99.60%
15 (13) Southwest Airlines $131,300,672 $180,044,609 72.90% 2.00% -0.60%
16 (14) State Farm $129,327,820 $392,475,125 33.00% 11.10% 14.90%
17 (35) NFL $125,642,688 $138,397,391 90.80% -3.40% -2.50%
18 (18) Subway $125,315,508 $432,709,188 29.00% 26.70% 21.80%
19 (17) Lexus $124,981,059 $273,876,320 45.60% 21.70% 67.80%
20 (15) Taco Bell $119,644,273 $387,065,312 30.90% 5.40% 17.00%
21 (20) Microsoft $119,003,953 $410,796,500 29.00% 27.80% 226.20%
22 (59) Procter & Gamble $118,465,086 $1,823,321,625 6.50% 159.70% 56.60%
23 (19) Apple $110,513,805 $375,869,344 29.40% 16.90% 19.40%
24 (22) Dodge $108,997,629 $383,757,424 28.40% 24.70% -12.30%
25 (32) Mercedes-Benz $108,950,896 $236,049,964 46.20% 67.70% 51.80%
26 (33) Visa $106,875,414 $169,094,719 63.20% 69.20% -15.90%
27 (21) GMC Truck Division $105,901,206 $246,401,811 43.00% 17.90% 42.10%
28 (23) Hyundai $100,834,226 $405,273,016 24.90% 18.10% 48.40%
29 (29) Honda $99,909,714 $530,985,172 18.80% 38.40% 17.60%
30 (12) Pfizer $97,108,680 $481,265,062 20.20% -25.00% 31.10%
31 (85) BMW $90,745,600 $194,013,543 46.80% 175.80% 473.00%
32 (26) Lowe’s $90,286,453 $268,903,969 33.60% 17.50% 24.70%
33 (88) Bank of America $89,874,195 $207,929,609 43.20% 191.70% 255.80%
34 (42) T-Mobile $86,781,234 $246,833,281 35.20% 56.50% 54.50%
35 (27) Burger King $86,026,078 $265,710,688 32.40% 14.50% 30.30%
36 (64) Allstate $84,076,445 $286,478,781 29.30% 89.40% 36.70%
37 (34) Universal Pictures $80,218,539 $338,577,531 23.70% 29.10% 4.40%
38 (63) Capital One $78,049,758 $238,592,875 32.70% 75.20% 53.80%
39 (28) Lilly Icos $75,084,906 $159,878,562 47.00% 2.30% 18.00%
40 (30) Home Depot $74,251,469 $317,885,906 23.40% 8.90% -8.90%
41 (50) Volkswagen $72,067,022 $254,459,219 28.30% 40.50% 2.40%
42 (67) Pizza Hut $67,984,398 $227,654,281 29.90% 65.40% 38.30%
43 (43) Nike $67,784,867 $74,094,281 91.50% 24.10% -25.20%
44 (72) E*Trade Securities $67,655,688 $98,736,430 68.50% 72.60% 32.60%
45 (52) Acura $66,009,981 $198,336,977 33.30% 31.60% -0.70%
46 (77) Audi $64,296,166 $126,588,887 50.80% 73.80% 46.00%
47 (53) Unilever $63,642,496 $306,353,625 20.80% 30.30% 139.10%
48 (45) AT&T Inc. $63,149,543 $437,857,000 14.40% 19.40% -8.40%
49 (NR) General Electric $61,354,465 $95,706,039 64.10% NA 59.30%
50 (92) Paramount Pictures $57,051,469 $285,949,125 20.00% 98.90% 100.10%

NR: Not ranked in the Top 100 in 2009
NA: Not available
Source: SportsBusiness Journal analysis of data from The Nielsen Co.

Ranked by change in sports
ad spending from 2009

BIGGEST INCREASE
COMPANY/
BRAND (RANK) 2010 SPORTS
AD SPENDING CHANGE
Bank of America (33) $89,874,195 191.70%
BMW (31) $90,745,600 175.80%
Procter & Gamble (22) $118,465,086 159.70%
Nissan (12) $160,993,935 105.90%
AT&T Mobility (1) $366,313,812 102.80%
SMALLEST INCREASE; DECREASE
Lilly Icos (39) $75,084,906 2.30%
Southwest Airlines (15) $131,300,672 2.00%
MillerCoors (8) $214,447,797 -5.40%
Sprint (10) $179,083,297 -10.60%
Pfizer (30) $97,108,680 -25.00%

Note: Comparative information on General Electric (49) from 2009 was not available. Ranking also does not include sports leagues or properties
Ranked by percentage of total
ad spending dedicated to sports

TOP FIVE COMPANIES/BRANDS
COMPANY/
BRAND (RANK) 2010 SPORTS
AD SPENDING % OF AD
SPENDING
DEDICATED
TO SPORTS
Nike (43) $67,784,867 91.50%
Anheuser-Busch (2) $356,205,906 80.80%
MillerCoors (8) $214,447,797 75.30%
Southwest Airlines (15) $131,300,672 72.90%
E*Trade Securities(44) $67,655,688 68.50%
COMPANIES/BRANDS RANKED 46-50
Pfizer (30) $97,108,680 20.20%
Paramount Pictures (50) $57,051,469 20.00%
Honda (29) $99,909,714 18.80%
AT&T Inc. (48) $63,149,543 14.40%
Procter & Gamble (22) $118,465,086 6.50%

Note: Does not include spending by sports leagues or properties.
.

The writers at TSR recommend all College Freshman and Sophomores start early if you intend to work in the Sports Industry. When conducting your search keep in mind that you will “probably” have more internship than permanent placement opportunities. This is due to the nature of your status (College Student) and economics (Free labor for the employer).

First, contact any local sports organizations (Major/Minor League franchises, Sports Radio stations, etc…). If there are no immediate openings on their websites or posted in the newspaper, send an inquiry letter to the staff member in charge of ticket sales and sponsorships. The letter should inform this person of your interest in “volunteering.” If  you do volunteer, contact your school counselor/advisor and see if you can receive academic credit while working. You should seek permission to receive academic credit the semester prior to working for the organization.

Second, contact the Athletic Director (AD) at your university. Express your interest in selling season tickets and sponsorships for the athletic programs (Football, Men’s and Women’s Basketball, both revenue generating sports). If you are enrolled at one of the smaller (student body population) schools, the athletic department will probably not have a sales staff. Your help would be appreciated and necessary. The benefit in working for the university is that you gain experience during the school semesters and have the ability to seek an internship from a separate organization during the summer months.

Important:Keep a record of all transactions ($ amount of ticket sales/sponsorships, % gain in sales/revenue attributable to your work, number of new accounts). This information will then be transferred to your Resume/CV. Imagine how your candidacy would look to a Sports-Industry employer with this experience upon graduation. You will be in a far superior position than your competition.

FORBES magazine has just released its latest annual list of the 400 Richest Americans. On this list, 22 are representatives of the Sports Industry. It appears that the addition of a new stadium, ballpark, or arena will increase their net worth by at least $500 million. A Regional Sports Network (RSN) will also bring in additional revenue for the organization (Ex. YES Network-NY Yankees).

The only deceptive part of the net worth calculations for the “Sports Owners” is that many of their organizations are saddled with debt. We also have two of the most popular leagues (NFL, NBA) potentially locking-out its players in 2011. In addition, many teams have cut the prices of their tickets and some were even subjected to blackouts due to not selling out home games.

The writers of TSR are please to introduce the KEYWORD BOX. The Keyword Box is placed to assist those Sports Industry job seekers who place their Resume/CV and Cover Letters on various online recruitment sites.

What we do is analyze the most frequently posted job descriptions of Sports Industry employers. Next we look at what the employers are looking for in a potential employee and what goals the position will provide to the organization.

Last, we document the most “beneficial” terms one should use on his/her Resume/CV when applying for that particular position. Only a small percentage of candidates will be able to use every term. However, we place as many terms as possible to encompass the various backgrounds of candidates.  TSR is here to cultivate the candidates experiences and tailor the Resume/CV to match at least the minimal requirements necessary for the particular position.

The location of Keywords will help those employers using the “Resume/CV electronic scan-method” to locate you. The goal is to give you an advantage when placing your credentials amongst  the millions of candidates seeking Sports Industry employment.

TSR will place a new position in the KEYWORD BOX daily.