Red Wings Sell Out Their Brand (New Presenting Sponsor)

Discussion in 'Fugu's Business of Hockey Forum' started by Fugu, Sep 3, 2011.

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  1. Fugu

    Fugu Administrator

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

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

    [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.
     
    Last edited by moderator : Sep 7, 2011
  2. Brodie

    Brodie Marxist-Harbaughist

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    I don't understand why this upsets people so much
     
  3. Fugu

    Fugu Administrator

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    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.
     
  4. nyranger61494

    nyranger61494 YNWA

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    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.
     
  5. Brendon

    Brendon Registered User

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    What is this? Europe?
     
  6. Fugu

    Fugu Administrator

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    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.
     
  7. Fugu

    Fugu Administrator

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

    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)?


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

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

    Ottomatic Registered User

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    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.
     
  9. CorbeauNoir

    CorbeauNoir Registered User

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    Because Amway are a bunch of crooks.
     
  10. Jussi

    Jussi Registered User

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

    PeterSidorkiewicz HFWF Tourney Undisputed Champion

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    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. :D

    edit: To me this hurts the brand way more than it helps it.
     
    Last edited: Sep 3, 2011
  12. Fugu

    Fugu Administrator

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    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.



    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.
     
  13. Tinalera

    Tinalera Registered User

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    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.
     
  14. Wingdings

    Wingdings Registered User

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    :cry: [​IMG]
     
  15. mouser

    mouser Business of Hockey

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    Amway? Amway? :biglaugh:

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

    Tinalera Registered User

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    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!
     
  17. nyrmetros

    nyrmetros Registered User

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

    Fugu Administrator

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    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. :sarcasm:
     
  19. Reality Check

    Reality Check Registered User

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    Especially when other teams will follow suit
     
  20. Tinalera

    Tinalera Registered User

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    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!":sarcasm:
     
  21. Banana Sandwiches

    Banana Sandwiches Registered User

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    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.
     
  22. Tinalera

    Tinalera Registered User

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    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?
     
  23. kdb209

    kdb209 Registered User

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    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 ...
     
  24. Heaton

    Heaton Registered User

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    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.
     
  25. Fugu

    Fugu Administrator

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    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.
     

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