Red Wings Sell Out Their Brand (New Presenting Sponsor)

[Fugu]

That's my opinion-- on the selling out of the brand.

http://redwings.nhl.com/club/news.htm?id=587621&navid=DL|DET|home

Wings, Amway make history


Michigan company is team's first-ever presenting sponsor


Thursday, 09.01.2011 / 2:42 PM / News
By Bill Roose - DetroitRedWings.com Managing Editor
DETROIT – The Red Wings and Amway took their relationship to a new historic level Thursday when it was announced that the Ada, Michigan-based company will be a presenting sponsor of the Original Six club for at least the next three seasons.

The Amway partnership marks the first time in the Wings’ 86-year history that the NHL organization will have a presenting sponsor, with the Amway logo seen almost as prominently as the Winged Wheel in all team advertising, branding and marketing materials.
...

“The logo is attached to ours when we do print advertising or if we do a television spot when they say, ‘Detroit Red Wings hockey presented by Amway’,” Wilson said. “We will be joined very, very closely. It won’t impact anything other than to bring the two brands closer together. … We expect to be together for a long, long time.”

Beginning in October, Amway will provide every “Season Ticket Holder of the Game” with a gift pack of Nutrilite and Artistry products, and every member of the Detroit Red Wings Kids Club with a Nutrilite children’s vitamin package. Other Amway promotional activities will include a Johan Franzen bobblehead giveaway to the first 7,500 fans in attendance at the Dec. 8 home game against Phoenix. In addition, Amway will present the Wings’ Facebook Fan of the Day as well as each of the team’s live social media events, such as Tweetups.

This is supposed to add 'value'?

I can't believe something owned by Ilitch would stoop this low.

http://www.mlive.com/business/west-michigan/index.ssf/2011/09/amway_describes_tangible_intan.html

Throughout the season, Amway’s name will appear on the rinkside boards at Joe Louis Arena as well as elsewhere in the facility. Amway’s logo also will appear on Red Wings tickets and other items.
Part of the deal also calls for Amway’s Nutrilite brand to be named the official vitamin and nutritional supplement of the Red Wings.
...
Bill Chipps, senior editor at Chicago-based IEG, a company that consults on sponsorship deals, said he expects any backlash over the deal to be short-lived, even though Amway can be controversial.
“I think the public has grown to accept and acknowledge the role of sponsorship,” Chipps said. “Most people recognize that sponsorship dollars are vital to a team’s existence if not a team’s on-field performance.”
As for the cost of a presenting sponsorship in the NHL, he expects the annual cost to Amway is likely in the high six figures, if not the low seven-figure range.
Amway and the Red Wings did not disclose financial terms of the deal.

[Edited to remove comment that it was a first in the NHL.] As stated in the MLive article, it's more common in Europe. I guess jerseys/sweaters are next.

Click to read more...

 

[Brodie]

I don't understand why this upsets people so much

 

[Fugu]

I don't understand why this upsets people so much

Some brands actually have value, while others represent things you wouldn't personally buy into or support. Partnering with a controversial company makes the Wings look weaker, not stronger.

 

[nyranger61494]

Some brands actually have value, while others represent things you wouldn't personally buy into or support. Partnering with a controversial company makes the Wings look weaker, not stronger.

And not for that much money either. High six figures for that? Not sure it's even worth it for the Wings in the end.

 

[Brendon]

What is this? Europe?

 

[Fugu]

And not for that much money either. High six figures for that? Not sure it's even worth it for the Wings in the end.

The actual figure is speculation from an industry expert as the actual value wasn't increased. If it really is only the high six's, that's rather paltry, and pathetic given the unprecedented access and status.

 

[Fugu]

http://www.mlive.com/redwings/index.ssf/2011/09/red_wings_sign_multi-year_deal.html

Wilson was the president of Palace Sports & Entertainment when the Detroit Pistons signed Rock Financial as its presenting sponsor. He realizes there will be a backlash from purists who don't like seeing a corporate logo affiliated with their sports teams.

"There's always going to be somebody who says, 'Geez, do you want to do that?' " Wilson said. "But when you sit back and see the impact that these two companies are going to have by joining forces I think all that goes away very quickly."

What impact is that? Getting Amway's vitamins as freebies for a random winner? Seeing their logo plastered all over Joe Louis and everything that bears the Winged Wheel (other than the jerseys-- for now)?

It will not be on their uniform, however, as the NHL does not allow such advertising.

"This is the tip of the iceberg," Tom Wilson, president of Olympia Entertainment said at a news conference. "You're going to see things all through the year that are going to improve our game presentation, improve your television viewing.

"For fans it's going to be a year-long unveiling of different things. It can be ticket offers, giveaways at games, nutritional contests. If you're watching games at home there will be certain prizes given out. It will impact everything we do."

Ah, I see! I knew something was missing from my enjoyment of the games at the Joe or on TV! Nutritional contests!

Man, Wilson is full of hot air. He talks about this stuff as if its something fans really wanted.

 

[GBFP]

Amway is a pyramid scheme rip-off company ran by fundie zealots. Betsy Devos is the sister of Blackwater/Xe's Erik Prince.

This is a TERRIBLE business decision for the Red Wings.

 

[CorbeauNoir]

I don't understand why this upsets people so much

Because Amway are a bunch of crooks.

 

[Jussi]

Because Amway are a bunch of crooks.

So it's more an issue with the sponsor than the sponsoring itself? That's perfectly understandable.

 

[PeterSidorkiewicz]

Why would the Wings want their name attached with this company? Just because they're based out of Michigan? Did they do no prior research on these guys?

At least it gives me some fuel to mock my buddy with since he loves to talk about Wings and their original 6ness and great tradition. Slap that amway logo on the jersey and Ill make sure he never hears the end of it.

edit: To me this hurts the brand way more than it helps it.

 

[Fugu]

Why would the Wings want their name attached with this company? Just because they're based out of Michigan? Did they do no prior research on these guys?

At least it gives me some fuel to mock my buddy with since he loves to talk about Wings and their original 6ness and great tradition. Slap that amway logo on the jersey and Ill make sure he never hears the end of it.

Yah, go to the official Wings site. The page that awaits you already has the Winged Wheeled besmirched by the other logo right under it. Very sad.

edit: To me this hurts the brand way more than it helps it.

I agree. I know they say that even bad publicity is good publicity, but the other brand represents certain values and brings forth specific perceptions about that company. It hints at ideological and religious divides. The Wings have always done a good job of keeping hockey as the main theme and the value has been the recognition and cache their brand brings. Now you will see a company name/logo that brings forth a plethora of mainly negative perceptions from observers. I think it's a horrible business decision.

 

[MaskedSonja]

I'm neither here nor there with as far as the Wings being a fan but I have to side with you Fugu-it is disappointing, unfortunately it's a sign of the times. Were the Wings REALLY that hard up for money that they have to be "presented by"-it being "only" a six digit figure?

And now I wonder how many other teams will follow suit.

Just another sign that the sporting culture is changing I guess.

 

[Wingdings]

Yah, go to the official Wings site. The page that awaits you already has the Winged Wheeled besmirched by the other logo right under it. Very sad.

 

[mouser]

Amway? Amway?

That's just flat out embarrassing. They couldn't find a more ethical sponsor, like say some accident law firm?

 

[MaskedSonja]

I'm neither here nor there with as far as the Wings being a fan but I have to side with you Fugu-it is disappointing, unfortunately it's a sign of the times. Were the Wings REALLY that hard up for money that they have to be "presented by"-it being "only" a six digit figure?

And now I wonder how many other teams will follow suit.

Just another sign that the sporting culture is changing I guess.

EDIT: And yes Amway of all companies. Couldn't they have gotten Ford/Chevy (or wait, they can't do that can they, because they have sponsorship with Honda don't they?)

Just think there could have been another MI choice that optically would have been better IMO.


Lovely I just quoted myself LOL oops!

 

[nyrmetros]

The future has arrived. I imagine every other NHL team will follow. F$ck......

 

[Fugu]

Amway? Amway?

That's just flat out embarrassing. They couldn't find a more ethical sponsor, like say some accident law firm?

Yes, but Sam was at least entertaining. And I don't think the name was plastered all over everything you'd find the Wings logo--- sans the uniform.

 

[Reality Check]

I don't understand why this upsets people so much

Especially when other teams will follow suit

 

[MaskedSonja]

Especially when other teams will follow suit

I wonder if this will start a prediction game now: Who will your team be "presented by" in the near future.

I don't have a team, but the nearest to me is Toronto:


"Honest Ed's present: The Toronto Maple Leafs!"

 

[Banana Sandwiches]

Dumb decision by the Red Wings. Having a controversial sponsor like this (no other team has a sponsor like this) and not even getting $1 million is a joke. The Wings can't be that strapped for cash.

 

[MaskedSonja]

Dumb decision by the Red Wings. Having a controversial sponsor like this (no other team has a sponsor like this) and not even getting $1 million is a joke. The Wings can't be that strapped for cash.

That's what I find curious: either they are hurting more than they are letting on (unlikely, but stranger things have happened), or there must be a shortage somewhere-I mean, maybe Fugu can tell us-Detroit management seems to be "profit comes from a successful team on the ice" type of mentality-if they are doing this to "Get an extra few bucks"-is that part of their mindset?

 

[kdb209]

And not for that much money either. High six figures for that? Not sure it's even worth it for the Wings in the end.

But you see this is just the start.

The Wings can now recruit other teams and get a cut of their sponsorship $$$s.

And those teams can recruit other teams and the Wings get a cut of their cut.

And those teams ...

 

[Heaton]

As a life long Wings fan and outspoken person on the forum community, I couldn't care less.

I can't imagine ever finding myself rooting less for a team because their franchise partners with a controversial company. I don't know much about Amway, never really cared enough to learn anything about them, but this seems like a classic message board overreaction that happens whenever something happens that people don't like.

I don't like alcohol and I'm sure alcohol has done more damage to more families than Amway has, but I don't really think anyone cares that every team is sponsored by a business that supplies a beverage that ruins families and kills people every year. I realize the comparison will be shrugged off and thought of as irrational but whatever.

But sold out their brand? Hardly. If it makes you root less for the team, I feel sorry for you.

 

[Fugu]

That's what I find curious: either they are hurting more than they are letting on (unlikely, but stranger things have happened), or there must be a shortage somewhere-I mean, maybe Fugu can tell us-Detroit management seems to be "profit comes from a successful team on the ice" type of mentality-if they are doing this to "Get an extra few bucks"-is that part of their mindset?

This has Tom Wilson's fingerprints all over it. He was hired about a year ago when all the chatter started about the Wings wanting to build a new arena; and also during the discussions to acquire the Pistons. He was formerly the president of Palace Sports & Entertainment (Detroit Pistons previous owner, via Davidson, now deceased). His mandate was to get a new arena financed/built and to improve the business end of Olympia Entertainment-- of which he is president now.

Ilitch Holdings Inc. owns all the entities, but Olympia Entertainment either owns or manages some of the subs. For example, the Wings and Tigers are owned directly by Mike Ilitch (Tigers) or along with Marian Ilitch (Wings and the other subs). Marian owns the gambling business due to MLB's requirements, thus she isn't an owner of the Tigers. Tom Wilson has no say in the management of the hockey or baseball teams. For example, Ken Holland reports to Mike Ilitch directly. Holland takes care of the hockey matters, while Olympia deals with the operational and marketing details.

If I were to speculate....... Wilson has very strong ties to the NBA, thanks to his decades long association with Palace Sports/Pistons. DeVos (founder of Amway) owns the NBA's Orlando Magic. Davidson, Gores (new Pistons owner), DeVos, Ilitch and Karmanos are all Michigan millionaires/billionaires involved in pro sports ownership, so I'm sure they all know each other to a certain extent. I imagine that Wilson is rounding up investors for a new Wings arena potentially. Amway pays for the Amway Arena's naming rights in Orlando to the tune of $40 MM/ten years (2009+). Obviously, Amway wouldn't sponsor the Pistons, so now that Wilson has moved over, he's probably going to round up some of his contacts to get additional revenue.

@Tinalera. I don't think the Wings are hurting for money. They still have a solid STH base, $30 MM from Fox Sports Detroit for local broadcast rights, with gate receipts in the $1.1 MM+ per game range. There's a new sheriff in town and he's bringing over some of the things he'd done with Pistons. They had a "presented by" sponsor as well, apparently. I don't really like this approach, but I especially don't like who they've chosen in this instance more.