Jordan's Return Wouldn't Mean Rush of New Ads
Before his retirement in 1998, companies lined up to hire Jordan to pitch products from breakfast cereal to batteries. It's still paying off: He made about $37 million in endorsements last year, according to a survey by Forbes magazine.
Electronic Arts and some other companies that are endorsed by Jordan are deciding against tying marketing campaigns to a return. While Jordan remains among the most recognizable public figures of his generation and has maintained a good image, some companies said they've found new ways and other people to promote their products.
''Even if Michael returns, that doesn't automatically make him a central element for our game,'' said Jeff Brown, an Electronic Arts spokesman.
Nike Inc. spokeswoman Cheryl McCants declined to comment on whether Jordan's highest-profile endorsement partner was planning any special marketing campaigns.
Electronic Arts, the No. 1 home video game software maker, has used NBA All-Stars Tim Duncan and Kevin Garnett as pitchmen since Jordan retired, and Brown said it won't bump the player it has chosen to endorse its 2002 game, even though Jordan is a spokesman for the company.
Under Consideration
Jordan, who won six NBA titles with the Chicago Bulls, is considering a return to the league. Jordan's friend and former NBA All-Star Charles Barkley, who also is considering a return, said they'd disclose their intentions in early July.
Jordan is a minority owner of the NBA's Washington Wizards and the team's president of basketball operations. He's also a minority owner of the NHL's Washington Capitals.
''You can't tell me that the companies that Jordan endorses aren't planning new campaigns right now to try to make a splash,'' said Blake Ebel, creative director and a vice president with Chicago-based advertising agency Young & Rubicam Inc., a unit of WPP Group Plc, which helped create advertisements involving Jordan for battery maker Rayovac Corp.
''You've got to try to take advantage,'' Ebel said. ''It's an opportunity to have your brand tied to someone whose face is plastered everywhere.''
Jordan's agent, David Falk, couldn't be reached.
Other companies Jordan endorses include Quaker Oats Co., and Sara Lee Corp.
Nike
Nike, which has three separate shoe lines and leather and denim products named for Jordan, may stand to gain the most from Jordan's return to the court, analysts said.
''Kids sleep in their cars waiting for malls to open the next day with those shoes,'' said John Shanley, an analyst with Wells Fargo Van Casper who rates Nike ''market perform.''
''If Michael returned, it could open a whole new line of marketing opportunities. Maybe they'd consider a new line aimed at an older and more suburban market,'' Shanley said.
In 1991, the same year the Chicago Bulls won their first NBA championship, Falk negotiated an endorsement agreement with Gatorade. The Quaker Oats Co. brand now has a stable of young All- Star athletes including New York Yankee Derek Jeter and Toronto Raptor Vince Carter, so there's no reason to make Jordan the primary focus of Gatorade's advertising campaigns, said Tom Fox, vice president of marketing with Gatorade.
''There certainly would be a buzz if Jordan returns, but we're not going to manufacture a campaign out of it,'' he said. ''We've used Michael in combination with other athletes. That's how we'll probably continue.''
Reruns
Fox said Gatorade has the right to use past Jordan television and print advertisements.
Some companies aren't concerned about whether Jordan returns because they don't emphasize his basketball-playing abilities in their advertisements.
Sara Lee brand Hanes underwear, for instance, hasn't shown Jordan in a basketball uniform in any of its ads. Battery maker Rayovac Corp. uses the same strategy.
''Eighty-five percent of battery buyers are women so we're not trying to position Michael as a basketball player anyway,'' said John Daggett, a Rayovac spokesman, adding since Jordan was signed in 1995, he's already helped Rayovac increase sales to $704 million last year, up from $432 million in 1997.
SportsLine.com Inc., which operates the second-most popular sports Web site behind Walt Disney Co.'s ESPN.com, manages Jordan's personal Web site.
The sports content provider said if Jordan returns to the NBA and does live chats and provides some news scoops, traffic at the site and advertising revenue may increase. Chief Executive Michael Levy said SportsLine's on-line shopping area -- which offers autographed memorabilia -- might also benefit in the short term.
''We're generating about $5 million in revenue now and maybe that could go up 20 percent,'' Levy said. ''If Jordan returns, it's going to help us just like it's going to help everyone in sports-related industries, but we're talking about a short-term effect here, not something long-term.''
SOURCE: Bloomberg.com
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