Using Endorsements in Fundraising
Endorsements have become the ‘meat and potatoes’ of many firms today, in both hard goods and service industries. As far back as 1933, Wheaties began putting athletes on cereal packages. Even in 1921, Babe Ruth was under contract as an endorser with Jockey underwear. Today, famous athletes command huge fees. Their endorsement of products and/or services has literally driven the success of some products/firms around the world. Well-known examples include the Nike golf ball, made famous by Tiger Woods, and the Air Jordan shoe, which carries Michael’s name.
It is not just the game or the event performance that accounts for the large endorsement fees. Many of the extreme contracts are for athletes in sports played on the global stage or for those who have reached the top level, nationally, in any given country. The World Cup, American football, baseball, and basketball are high on the list when considering endorsements. Increasingly golf, bike riding, tennis, and even skateboarding are being recognized for the spectator interest they are attracting globally. Currently, the X-Games are establishing strong market shares amongst teen and young adult segments.
Super star athletes are in great demand. However, below the very elite level, the demand for endorsements slows quickly, as do the financial rewards given to the lesser known stars. At the sub-star and regional/local level, there are numerous athletes who would certainly like to be a part of the endorsement game. For commercial ventures, the fees for these athletes would be substantially less than the top stars. For worthy causes, the increased notoriety that comes from donating time and names, resulting in an intrinsically good feeling, may be all the benefit that the sub-star requires. This presents opportunities for regional or local fundraising efforts to bring recognizable sports personalities into fundraising activities.
Some simple rules for initial athlete endorser selection are necessary. The athletes should have a relative degree of prominence and attention-gaining ability. Additionally, it is important that those selected are reasonably social, communicative, and morally/legally free from negative image factors. The lifestyles of the athletes can be a key factor to major benefactors’ acceptance of them. Alternately, a lifestyle of negative notoriety can be a detriment.
As the field of potential candidates is narrowed, it is important to consider other factors that make an endorser effective. These involve a more in-depth assessment of his/her success and achievement record, popularity, ability to be recognized, credibility in the community, approachability, and willingness to adapt to a flexible time schedule on relatively short time frames. On the negative side, the fundraiser in search of an athlete endorser needs to watch out for future problems. The person selected may be too egoistical or celebrity oriented. Once in a while, a sub-star may be too outspoken or forward. Alternately, he/she may be the opposite - tongue tied with the inability to carry on a reasonable conversation. Worst is the possible moral or criminal behavior that sometimes surprises the sponsor.i
Overall, the athlete who will be the endorser should be a good fit or match to the group being targeted as the potential contributors to the cause. It is well known that approximately two thirds of the funds raised are given by a small number of people. As few as ten benefactors may cover a third of the needed funds, the next third of the funds may be contributed by another hundred or so people.ii By bringing in athlete endorsers who have limited marketability because of their regional focus, yet who are very skilled and known to the local community, the top benefactors receive associated identification. In return, they may extend future contracts and network opportunities to the athlete endorser. The result is mutually beneficial. It is win-win-win for the cause, the athlete, and the benefactor.
Finally, the successful fundraiser will take care not to be locked-in to only one or a few long term endorsements. Even if the athlete endorsers are free - donating their time and names without monetary compensation - the key benefactors will not tolerate poorly selected players with little credibility. The benefactors will quickly find the situation wanting if the endorser does not add to their sense of being. The best endorsers will become ‘old hat’ unless they continue to perform or to add to the events in which they socialize and mingle with benefactors. Be ready to say goodbye to any endorser if marketability deteriorates. Replace the old sub-star with a new sub-star. The goal is always to support the team or organization with like-kind needs (equipment, uniforms) or a flow of funds.
Dr. Jim Grant has been a National Faculty member of the United States Sports Academy since 1992. Currently, Dr. Grant is Professor of Marketing and Dr. McKechnie is Assistant Professor of Marketing at American University of Sharjah, United Arab Emirates.
i Fullerton, Sam, Sport Marketing, McGraw-Hill International Edition. (See chapter 12 for endorsement discussion.)
ii Stier, William F. , Successful Sport Fund-Raising, Brown and Benchmark Publishers, page 119