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Firms Try to Pitch the Perfect Game

When a sports team loses a big game by a lopsided margin, sportswriters often criticize the athletes for "not coming to play." In the past, that analysis could also be applied to public relations firms' limited involvement in sports marketing. But not anymore. The lure of big bucks and a growing client demand for sports-related services have nudged many public relations firms off the sidelines onto the playing field. Most firm executives acknowledge that public relations has been slow in taking advantage of the explosion of sports marketing opportunities. Stiff competition from established sports marketing firms has been a major obstacle. But like a boxer who comes out for the 15th round knowing he needs a knockout to win, they say it's not too late to make a name for themselves. As a result, a growing number of public relations executives are now playing "hardball" in an attempt to help their firms become big league players in this two billion-dollar industry. "PR firms are finally waking up to the big opportunities in sports marketing," said Alfred L. Schreiber, executive vice president and director, sports marketing at Burson-Marsteller, a firm that had $8 million in sports-related billings last year. "But I still don't think we've reached anywhere near the potential this can be." The business of sports Sports marketing is big business. In 1990, companies spent $1.7 billion on sports event sponsorships, according to Special Events Report, an industry newsletter based in Chicago. This year, spending on sports is expected to increase 11% to about $1.88 billion. When it comes to sports these days, public relations firms seem to be in the news as much as star quarterbacks and home run-hitters. Burson-Marsteller, Hill & Knowlton, Cohn & Wolfe, and Fleishman-Hillard have been featured in articles in the national press for their role in helping cities land major league expansion franchises. The media has also been keeping an eye on public relations firms' acquisitions of, and affiliations with, established sports marketing companies. A host of firms that have recently opened sports marketing divisions, like Costa Mesa, CA-based Paine Associates, have also gotten press coverage. Corporate interest fuels trend Corporations jumping on the sports promotion bandwagon are fueling the trend. One indication of this burgeoning client interest is the more than 200 Burson-Marsteller clients who came to New York City in May to attend a day-long conference on Olympic marketing opportunities. When the invitations went out, firm executives privately worried that no one would come. Relief, however, came in the form of a standing-room-only crowd. "We probably could have scalped tickets," quipped Bob Hope, former head of worldwide marketing for Burson. In June, he joined Whittle Communications as president of its new event marketing unit. Despite the rising costs and clutter of sports sponsorships, CEOs are still attracted to the glamour and "sex appeal" of sporting events. And many companies--especially those marketing consumer products--are now turning to public relations firms to help them get the most mileage out of their sponsorships. "Sponsors don't just sign a deal and say, 'Put on your event and forget about us,'" noted Mary Gilbert, manager of special events for Winston-Salem, NC-based L'eggs Products. To promote its Sheer Energy pantyhose, L'eggs recently became the first corporate sponsor for the Ice Capades. Public relations firms are now helping sponsors identify and align themselves with the right events, providing marketing assistance, drumming up publicity, performing demographic research and making sure sponsorship dollars are being spent effectively. "There's a trend toward corporate sponsors looking for people to leverage and exploit their sponsorships," said Patti Jo Sinopoli, manager, sports marketing communications, The Gatorade Company, Chicago. …