NASCAR Visits “Tricky Triangle”, Monster Energy and Busch Beer Activating

Pocono

JohnWallStreet is headed to Long Pond, PA this weekend for the Pocono 400 at the “Tricky Triangle”. The race is on Sunday, but Pocono Raceway is hosting a series of events throughout the weekend that NASCAR fans in the Northeast will want to be aware of. Monster Energy kicks things off today with “Free Can Friday”, a promotion offering fans who bring an empty of Monster Energy (MNST) drink (to recycle) free access to the day’s activities. These include a BMX trick show and the General Tire #AnywhereIsPossible 200 (ARCA Series race). On Saturday, the track hosts an Alex Bowman selfie session and the Pocono Green 250 Recycled by J.P. Mascaro & Sons (Xfinity Series race), before the Cup Series takes over on Sunday. That race starts at 2pm, but make sure to get there early; Clint Bowyar (10:45a), Jimmie Johnson (11:00a) and Kurt Busch (11:15a) are all doing Q&As at the Tricky Triangle Club (opens at 8a).

Howie Long-Short: Pocono Raceway, which has been family-owned since its inception in 1971, is one of just two NASCAR tracks (out of 25) that is privately-owned; Indianapolis Motor Speedway is the other. International Speedway Corporation (ISCA) and Speedway Motorsports (TRK) own a combined 22 tracks (13 and 9, respectively), while Dover Motorsports (DVD) owns the “Monster Mile”.

In early April, ISCA reported “revenue and earnings increased for comparable events” in Q1 ’18, despite a continued decline at the gate (admissions revenue -2.5% YoY). Shares are down 11.5% (to $41.70) since February 1.

In late April, TRK reported that a YoY decline in admissions revenue for Q1 events led to a -2.5% decline in total revenue (to $74.4 million). Shares have declined 6% since (to $16.70) despite the company touting the prospects of long-term future profitability from Q3 event realignment.

DVD didn’t hold any events in Q1 ’18, so there was little to report during its most recent earnings statement. The stock is currently trading at $2.10 – exactly where it was 12 months ago.

Fan Marino: For those passionate about their brand of domestic beer, Busch and Busch Light (BUD) are set to go head-to-head on the track Sunday. Kevin Harvick will be driving his #4 Busch Beer Ford Fusion for Stewart-Haas Racing, as he seeks his circuit leading sixth win of the season. Harvick’s SHR teammate and friend Clint Bowyar, winner of the ’18 STP 500 at Martinsville, will be behind the wheel of the #14 Busch Light Ford Fusion. They’ll compete with the loser “scheduled” (weather pending) to cut the infield grass at Pocono. Off the track, the two will battle it out throughout the weekend on social media and will appear on stage together on Friday at Pocono’s Infield Block Party.

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Devils, Prudential Center CRO Discusses Importance of Playoff Hockey to Team, Building Profitability

NJD vs. TBL Stanley Cup Playoffs Round 1 Game 4 (photo by Patrick Dodson)

The Prudential Center in Newark, New Jersey is among the marquee sporting arenas in the world (ranked #8th – Billboard Magazine). During the 1st intermission at Wednesday night’s Game 4, JohnWallStreet had a chance to discuss the advantage/drawbacks of the arena’s proximity to NYC and the importance of playoff hockey for the team and the building’s profitability with Adam Davis, CRO of the New Jersey Devils and Prudential Center (properties within the Harris Blitzer Sports & Entertainment portfolio, which also includes the Philadelphia 76ers, Team Dignitas esports franchise and more).

JWS: Since the Nets moved to Brooklyn, the Devils placed an added emphasis on being “New Jersey’s team.” How has that mentality impacted corporate sponsorships?  

Adam: When Josh Harris and David Blitzer bought the team in August of 2013, we looked at it through the lens of this (Prudential Center) being the “Home of the Devils”; we wanted to transition it, to becoming the “Home of Entertainment for New Jersey.” That is also the filter we looked at partnerships through. When we got here we had a lot of great partners, but not ones that were necessarily representative of New Jersey. Fast forward to today and all the brands are representative of Jersey in some way. It could be a global brand like Anheuser Busch who happens to have a brewery in Newark N.J., a brand like Mars chocolates who is headquartered in Hackettstown, N.J. (moving to Newark in 2 years) or a partner like Investors Bank; the largest bank headquartered in New Jersey. Plymouth Rock Insurance, a huge auto insurance company in New Jersey. RWJ Barnabas Health, the largest healthcare system in the state of New Jersey. WaWa, a big convenience store; are all partners. Then, global brands that have a big presence in the state. Enterprise, this is the biggest market for them. Infinity, New Jersey is arguably the number 1 or 2 market in the country for them. So, everything we look at goes through that filter of New Jersey.  

JWS: Is it an advantage to be located so close to NYC or does having MSG and Barclays Center in such close proximity hurt Prudential Center business?

Adam: Both. When I got here, the Prudential Center was trying to be positioned as New York City. As opposed to being the last option in New York, our perspective was “why not be the first option in New Jersey”. That mentality has helped to enhance the content. When we got here, this building was 17th in the country (Billboard Magazine) for entertainment venues. Today we are number 6 in the country, 8th in the world. We’ll do 45 concerts this year. We do more concerts than Devils games, it’s amazing.

JWS: How important is hosting playoff games to the building’s profitability? Team profitability?

Adam: There is no debate that post season play brings an unparalleled energy to the arena, the team and the city of Newark. Obviously, playoff games generate additional ticket sales, partnerships, premium, merchandise, food & beverage; people spend more on food & beverage and merchandise because everyone is really excited, really happy and wants to represent their team. But this has truly been a banner year for the arena. We celebrated our 10th Anniversary, installed the largest in-arena scoreboard in the world with partner Trans-Lux, opened the GRAMMY Museum Experience Prudential Center and welcomed over 150,000 patrons through our doors each month. The playoffs generate momentum for Season Ticket Members in the 2018-2019 season, but outside of Devils game, we still anticipate over one million concert and special event attendees in the coming year.

Howie Long-Short: Several Devils’ corporate sponsors are publicly traded. Anheuser Busch (BUD), Investors Bank (ISBC) and Infinity (a subsidiary of Nissan Motor Co., OTC: NSANY).

In late January, ISBC reported a net loss of $4.8 million for Q4 ’17; resulting mainly from a $49.2 million increase to the company’s annual income tax expenditure (see: Tax Cuts & Jobs Act). Adjusted, net income totaled $48.2 million; +5% from Q3 ’17. CEO Kevin Cummings pointed to “net interest margin expansion (+3.5% YoY), expense control, strong deposit growth (+$481 million in Q4) and asset quality metrics” as highlights for a “strong fourth quarter.” Despite 2017’s large tax bill, the reduced corporate tax rate will be beneficial to shareholders moving forward. The company will report Q1 ’18 earnings on April 26.

Fan Marino: The Prudential Center proudly owns the world’s largest, in-arena, center hung, digital scoreboard. The screen (9,584 sf) is 86% larger than the next largest scoreboard (5,138 sf, Red Wings) in the league, has over 8 million more LEDs than the scoreboard at AT&T Stadium (Cowboys) and is big enough to fit 2 Madison Square Garden scoreboards inside. Remarkably, players on the screen appear to be 4x larger than they are. You can check it out, here!

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Anheuser Busch Brings “Performance Based Model” to Sports Sponsorships

Anheuser Busch

Anheuser Busch (BUD) has introduced an incentive laden sponsorship model, for both teams and leagues, that rewards performance on and off the field (think: playoff appearances, rising attendance, growing TV ratings and increased social awareness). The template for A-B’s new deals include base compensation and a series of metrics (team/league specific) that if met, would trigger a larger investment from the company. VP of Consumer Connections Joao Chueiri said, as “leaders in the industry” it was the company’s responsibility to revamp “legacy (sponsorship) models that were created on consumer behavior that is no longer there.” It is believed that Anheuser Busch is the first “major sponsor” within the sports world to implement a performance based model.

Howie Long-Short: AB Inbev announced on March 1st its best FY earnings report in 3 years, reporting profitability growth within its 2 biggest markets (+1.9% in U.S. and +1.7% Brazil), FY17 revenue grew +9.8% YoY and EPS increased 42.8% YoY to $4.04. Should the board approve a proposed dividend on April 25th, the total dividend for FY17 would be $4.44. It should be noted that for the 5 year period beginning in ’12, BUD’s revenue CAGR of 4.6% exceeds that of all PMCG peers. For reference purposes, BUD closed at $107.79 on 4/2.

Fan Marino: BUD has league sponsorship deals in place with the NFL, NBA and MLB, and maintains dozens of individual team partnerships but, the New Orleans Saints, Los Angeles Dodgers, Minnesota Timberwolves and NASCAR, are the first 4 sports rights holders to work with A-B under the new performance-based model. Expect the off-field portion of these deals to cause problems at some point. If Papa John’s had this type of clause in their contract with the NFL during the 2017 season, one must believe they would have invoked their right to withhold financial “rewards”; a decision that would have pressured the league to restrict players’ rights to protest. Had that occurred, it’s not unreasonable to think that some players would have refused to take the field.

Fun Fact: BUD spent $350 million on sports sponsorships in 2016. Only PepsiCo (PEP) spent more ($360 million).

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England’s National Team Replaces Long-Time Official Beer Sponsor

Budweiser

Budweiser (BUD) has announced that it will replace Carlsberg (CABGY) as the official beer of the England senior men’s soccer team following the ’18 Russia World Cup, ending CABGY’s 22-year relationship with The Three Lions. The AB Inbev subsidiary will also become the official pour (includes premium brands) of Wembley Stadium connected by EE. Terms of the deal were not disclosed but, it’s being marketed as the largest official beer partnership in the Football Association’s history (154 years). BUD also stated it would be extending its partnership with The Emirates FA Cup (a domestic knockout competition) and said that it will continue to heavily invest ($1.8 million since ’12) in local grassroots football initiatives.

Howie Long-Short: AB Inbev announced on March 1st its best FY earnings report in 3 years; FY17 EPS increased 42.8% YOY to $4.04. Should the board approve a proposed dividend on April 25th, the total dividend for FY17 would be $4.44. For reference purposes, BUD closed at $110.63/share on 5/3. As a brand, Budweiser grew global revenue 4.1% YOY in 2017. It’s popularity in the U.K. (+16 YOY in ’16) helped the company achieve double-digit top-line growth in that market. It must be noted that for the 5 year period beginning in ’12, BUD’s revenue CAGR of 4.6% exceeds that of all PMCG peers.

Fan Marino: BUD’s first World Cup as an official sponsor of the England senior men’s soccer team will come in 2022, scheduled to be played in Qatar. While the tournament is certain to occur in 4 years, it’s no longer guaranteed the games will be played in the middle east; certainly, not if Saudi Arabia sports minister Turki Al Shiekh has his way. Al Shiekh believes Qatar bought votes during the selection process in 2010. If those suspicions are proven correct, Shiekh would like the competition moved to either England or the U.S; either location would work for BUD drinkers.

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500 to the 500, Kevin Harvick and Daniel Blake (Busch Beer) on the Unique Promotion

2018_Daytona_Logo

Busch Beer ran an impactful 500 to the 500 promotion, bringing 500 fans to Sunday’s running of The Great American Race; the 2018 Daytona 500. The lucky winners received flights, hotel and airfare, as well as a chance to meet and take a photo with Kevin Harvick. JohnWallStreet was in Daytona Beach and got a chance to speak with both Kevin Harvick and Daniel Blake (Busch Beer’s Brand Manager) about the promotion just hours before the race.

JWS: You agreed to travel from Daytona Beach to Orlando (50+ miles, then back), the night before the biggest race of the season to meet your fans. Why did you agree to do that?

Kevin: I would say this unique because it is such a big promotion and Busch put so much into it; it was also planned way in advance. It’s an opportunity to have more interaction with the fans than you would walking through the garage or at the racetrack, because you are in competition mode. As long as I can manage my time and know what I’m getting into, I’m good with it. I’m also in Daytona Beach by myself, my family doesn’t come in until tomorrow; and I like to do stuff to take my mind off things, anyways.

JWS: You mentioned that if a sponsor is willing to put the time and effort into a promotion of this size, it’s certainly worth your while to participate; regardless of how close it is to the race. How does it benefit you?    

Kevin: The biggest pop of the season, from a marketing and exposure standpoint, is going to come in the first 6 weeks. The majority of your souvenir sales, unless you win the championship, happen in the first 2 weeks. You can follow the TV ratings and everything that happens within the sport. The bigger you make this week, the bigger the next 5 weeks are.   

JWS: Busch Beer had a Super Bowl ad in 2017. In 2018, you re-allocated those funds (1/3 of the marketing budget) to do this event. Why did you make that decision?

Blake: The timing. NASCAR’s biggest event of the year is at the start of the season and we wanted our biggest promotion to be at the start of the season as well. There’s no better way to do that than sending 500 fans to the Daytona 500, for one of the most memorable experiences of their life. It’s not just a once in a lifetime racing experience, it’s a once-in-a-lifetime experience for some of these fans to get out of their hometowns, to see Florida, to get on a plane and to meet new people with a common interest.

JWS: How do you gauge the success (or lack thereof) of a campaign like this?

Blake: Social buzz and impressions, volume sales and shares are another; but, for something like this it’s more intangible. It’s difficult to measure sending 500 fans on a once-in-a-lifetime experience, but those are the type of things that resonate and hopefully compound. They (the winners) tell their friends and family about the brand and the great experience they had here.

Howie Long-Short: Anheuser-Busch InBev (BUD) reported its value brand portfolio, led by the Busch brand family, performed well in both Q2 and Q3 ’17. Busch has a loyal consumer base and its brands require minimal investment; positive news for a company that has watched Budweiser fall out of the Top 3 in U.S. sales (Bud Light, Coors Light and Miller Lite are the Top 3, Budweiser is 4th).

Fan Marino: Fans that pulled checkered cans from packages of Busch and Busch Light, were then asked to submit videos expressing their enthusiasm for both the brand and their interest in attending the Daytona 500. Christina Pin was among the 250 winners (each got to bring a guest) and brought her husband to the race. I asked Christina to describe the video that got her selected and her reaction when she found out she had won.

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NASCAR’s Kevin Harvick Discusses the Daytona 500 and the Success of “Bloomin’ Mondays”

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February 10, 2018: Kevin Harvick during practice at Daytona International Speedway in Daytona Beach, Fl. (HHP/Harold Hinson)

The 60th annual edition of the Daytona 500, will be run on Sunday. JohnWallStreet will be in attendance, along with the 500 fans that Busch beer (BUD) is bringing to the event; providing coverage all weekend long (follow us on Twitter @HowieLongShort). Before we head down to Daytona, we got a chance to catch up with Kevin Harvick; who finished 3rd in 2017 Monster Energy NASCAR Cup Series standings. In Part 2 of 2 (link to Part 1 of interview), Kevin discusses his sponsors for the 2018 season, the significance of this particular race and the success of “Bloomin’ Mondays”.

JWS: The Daytona 500 is the biggest event on the NASCAR calendar. For those that are not NASCAR fans, can you try to explain why that is and the significance of the race?

Kevin: Well, it goes back to when they raced on the beach. This is the birth place of our sport. Bill France had a dream to build a really big racetrack and came and built the Daytona Speedway. There is no other race that matches the hype and there is no other race that matches that magnitude of winning the Harley J. Earl Trophy; putting your name on the list of Daytona 500 winners. It’s hard to explain the magnitude of it, until you experience winning the race. The celebration is different, you celebrate like you won a championship, because, basically you have. Winning the Daytona 500 can make a whole year. 

JWS: If you must pick one, do you want to win the Daytona 500 or the Monster Energy NASCAR Cup Series Championship?

Kevin: I want to win them both (laughing) but, I will tell you this, in 2007 when we won the Daytona 500, we did not have a great year; but, nobody remembers anything about that year except for, that is the year that I beat Mark Martin in the Daytona 500. It’s just that big. You have more sponsors show up, more celebrities show up, more fans show up, the TV ratings are higher, the radio ratings are higher, the exposure is greater and there isn’t anything about it that isn’t bigger.

JWS: Do you have any new sponsors in place for the 2018 season?

Kevin: Everything is pretty much the same. Jimmy John’s is on board again, Busch (BUD) is the other primary; along with Mobile One (XOM). Outback (BLMN) is activating heavily with their “Bloomin’ Mondays” (editor note: only program every Outback franchisee participates in) and they’re seeing a $10,000-$12,000 increase (in revenue, per store), pretty much every time we get a Top 10 finish.

Howie Long-Short: International Speedway Corporation (ISCA) spent $400 million on Daytona International Speedway renovations, for annual incremental EBITDA of just $15 million. That’s not an ideal ROI.

Fan Marino: Do you have a “most memorable” Daytona 500 experience, as a fan?

Kevin: I went there in 1995 for the first time and was in the grandstand going into turn one, watching the qualifying races. I grew up in Bakersfield, CA. I had never been to a racetrack of that size, let alone to the Daytona 500; so, to sit there and watch those cars go around the racetrack and to see all the cars you see on TV, it was eye opening. (note: Sterling Marlin won the 1995 Daytona 500.)

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Exclusive: Kevin Harvick on Busch’s 500 for 500 (Daytona) Promotion, Danica’s Last NASCAR Race

Daytona500_Logo

The 60th annual edition of the Daytona 500, NASCAR’s Super Bowl, will be run on February 18th. JohnWallStreet got a chance to speak with Kevin Harvick, who finished 3rd in 2017 Monster Energy NASCAR Cup Series standings, about his relationship with the Busch brand, the details of a promotion that is sending 500 lucky fans to the Daytona 500 and his thoughts on Danica Patrick’s last NASCAR race (editor note: they’re honest).

JWS: Busch has been the title sponsor of your car since the ’16 season. What is it about the brand that made you want to align with them.

Kevin: The unique thing about Busch is they’ve been involved with NASCAR racing since the late 70’s. It’s also a brand that is specific to the age group that I fit in to; they’re not complaining that I’m too old or too young or about the things that I do, it’s just kind of a natural fit. Busch is not a brand with a bunch of athletes all over the place. They’re very focused on racing, hunting and fishing, so our brands are very similar. When you find a great fit like that it’s easy to support the things that they do.

JWS: Busch is running an amazing Charlie and the Chocolate Factory style promotion (you can enter, here), sending 500 fans to the Daytona. Pull a golden checkered Daytona 500 can from an 18, 24 or 32 pack of Busch or Busch Lite and you’ll attend the 60th annual Daytona 500. What exactly does the promotion include?

Kevin: For those of us who know what Charlie and the Chocolate Factory is, right (laughing). It’s not just a ticket to the race, it’s a VIP trip to the race. You get your airfare, your hotel room and an amazing experience at the race track. I know I’ll be at the hotel on Saturday night to spend a couple hours with them (the winners). It’s an over-the-top experience. Busch is all-in.

JWS: NASCAR teams and drivers have struggled to fill sponsorships of late, but Busch is increasing their commitment to the sport. In 2017, BUD grew its value brand portfolio share of category 3.02% within the Daytona Beach market. Why is NASCAR working as a marketing platform for Busch, but not some of their competitors?

Kevin: Busch has made the commitment to not only sponsor the car, but to spend money on the activation side of things; to make sure people know their involvement in the sport, know who they’re involved with. It’s a natural fit with the NASCAR fan because they’ve been involved with the sport for so long and their target market is right in the demographic of who NASCAR fans are. So, there’s several things that make it work, from activation to the race car being on the track; but, a key is wholesalers buying into the program and helping to promote in those local markets. You’ll see that in Daytona, the Bowler family (runs Daytona beverages) does a great job activating and helping Busch in that market. Another piece is the appearances at Kroger’s, Walmart & Sam’s Club; the in-store activations go hand-in-hand with the wholesalers to increase your buys.

Howie Long-Short: AB InBev (BUD) had a strong start to 2017 (or at least one that beat analyst estimates), but “soft sales in the U.S.” resulted in a 1.2% volume decline in Q3. Sales to wholesalers dropped 3.4%, with sales to retailers declining 6.4%. The good news? BUD grew global revenue 3.6% (to $14.7 billion) despite 2 September storms that negatively impacted shipments to Florida & Texas.

Fan Marino: The 2018 Daytona 500 will be Danica Patrick’s last NASCAR race (yawn). Does she get too much promotion?

Kevin: Look, Danica survived off publicity, that’s how she got here. She was very popular and had the opportunity to come to NASCAR with sponsorships and made a lot of money; but, in the end, performance trumps the marketing tool. I think you now see that with the quality and the team she’s going to come back and run the Daytona 500 with. The opportunities are a lot less than what she had. I don’t think she gets too much publicity, she’s done things inside of a race car that no female has ever done; but when you are in sports, you must perform. Black, white, girl, boy, it doesn’t matter, at some point that performance is going to matter; in the end, I think that’s the road it went down with Danica.

UFC Heavyweight Champ on His Day Job and a Fight with Joshua/Wilder

Modelo Stipe_19937+39

UFC heavyweight champion Stipe Miocic became the most decorated heavyweight champion (record 3 straight title defenses) in UFC history on Saturday night, defeating Francis Ngannou by decision at UFC 220. Following the fight Dana White expressed interest in a fight between Miocic and Daniel Cormier. Miocic may have other ideas. Just days before the fight, JohnWallStreet got the chance to talk with the champ about the title of “baddest man on the planet” and a potential fight with Anthony Joshua.

JWS: You work during the day as a part-time fire fighter. Is that a paying job?  Do you ever wonder if your time would be better spent training?

Stipe: It is a paying job, but I do it because I love helping people out and giving back to my community. I love Cleveland. That was a big reason why I partnered with Modelo; we share a strong sense of community and both value the fighting spirit in and outside of the Octagon. 

JWS: New UFC Sponsor Modelo highlights you in a new ad campaign. The campaign focuses on “blue-collar minded” individuals. Does that mean you aren’t in to all the cars, jewels, furs etc. that we see guys like McGregor or Tyson with?

Stipe: You could say that. Being able to partner with a brand that shares the same values in terms of hard work and giving back to the community was one of the big things that attracted me to working with Modelo. I get to tell my story as a firefighter, and more than just an athlete, and that’s an opportunity that doesn’t come around too often. 

JWS: You were an accomplished boxer growing up a part of the Golden Gloves program. I saw you challenged Anthony Joshua for title of “baddest man on planet.” Are you serious about pursuing a fight in the boxing ring with him or was that simply a fun idea trying to capitalize on the money Mayweather/McGregor got for their fight?

Stipe: Boxing was a big part of my upbringing. I would love to fight the winner of Joshua and Wilder, but all that matters to me right now is fighting this Saturday; after that, let’s talk. 

Howie Long-Short: Constellation Brands (STZ) acquired Grupo Modelo’s U.S. business from Anheuser-Busch InBev (BUD), back in 2013. Earlier this month, STZ reported Q3 ’17 profits increased 21% YOY (to $491.1 million), despite revenue falling .6% (to $1.8 billion). It wasn’t Modelo’s fault though, beer sales increased during the quarter; wine & spirits experienced revenue decline. Something to watch, the company recently acquired 9.9% of the marijuana company Canopy Growth (TSE: WEED).

Fan Marino: LeBron gets all the credit for bringing the Cleveland its first title since 1964, but Stipe beat him to it winning the UFC heavyweight title at UFC 198. I asked him if that bothered him (it would bother me, I’m petty).

Stipe: Not at all. The Cavs had me at a few of their playoff games and even at their victory parade back in 2016. I also met up with a bunch of those guys to cheer on the Indians in the World Series together. What Lebron has done for Cleveland, on and off the court, has been awesome to see and we’re both just trying to represent for our city. We share a mutual vision – for those to see the work we do in our community and inspire them to do better.

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UFC Heavyweight Champ on His Day Job, New Ad Campaign and a Fight with Joshua/Wilder

Modelo Stipe_19937+39.JPG

UFC heavyweight champion Stipe Miocic will defend his title tomorrow night (Jan. 20) against Francis Ngannou at UFC 220 (PPV). With a win, Miocic would break the UFC’s record for most successful heavyweight title defenses; becoming the most successful heavyweight of all time. Official UFC sponsor Modelo Especial recently announced a partnership with Miocic (the brand’s first with a UFC fighter) that will include a TV commercial airing later this year. JohnWallStreet got the opportunity to ask the champ a few questions about his day job, the new ad campaign and the title of “baddest man on the planet”, just days before the fight.

JWS: You work during the day as a part-time fire fighter. Is that a paying job?  Do you ever wonder if your time would be better spent training?

Stipe: It is a paying job, but I do it because I love helping people out and giving back to my community. I love Cleveland. That was a big reason why I partnered with Modelo; we share a strong sense of community and both value the fighting spirit in and outside of the Octagon. 

JWS: New UFC Sponsor Modelo highlights you in a new ad campaign. The campaign focuses on “blue-collar minded” individuals. Does that mean you aren’t in to all the cars, jewels, furs etc. that we see guys like McGregor or Tyson with?

Stipe: You could say that. Being able to partner with a brand that shares the same values in terms of hard work and giving back to the community was one of the big things that attracted me to working with Modelo. I get to tell my story as a firefighter, and more than just an athlete, and that’s an opportunity that doesn’t come around too often. 

JWS: You were an accomplished boxer growing up a part of the Golden Gloves program. I saw you challenged Anthony Joshua for title of “baddest man on planet.” Are you serious about pursuing a fight in the boxing ring with him or was that simply a fun idea trying to capitalize on the money Mayweather/McGregor got for their fight?

Stipe: Boxing was a big part of my upbringing. I would love to fight the winner of Joshua and Wilder, but all that matters to me right now is fighting this Saturday; after that, let’s talk. 

Howie Long-Short: Constellation Brands (STZ) acquired Grupo Modelo’s U.S. business from Anheuser-Busch InBev (BUD), back in 2013. Earlier this month, STZ reported Q3 ’17 profits increased 21% YOY (to $491.1 million), despite revenue falling .6% (to $1.8 billion). It wasn’t Modelo’s fault though, beer sales increased during the quarter; wine & spirits experienced revenue decline. Something to watch, the company recently acquired 9.9% of the marijuana company Canopy Growth (TSE: WEED).

Fan Marino: LeBron gets all the credit for bringing the Cleveland its first title since 1964, but Stipe beat him to it winning the UFC heavyweight title at UFC 198. I asked him if that bothered him (it would bother me, I’m petty).

Stipe: Not at all. The Cavs had me at a few of their playoff games and even at their victory parade back in 2016. I also met up with a bunch of those guys to cheer on the Indians in the World Series together. What Lebron has done for Cleveland, on and off the court, has been awesome to see and we’re both just trying to represent for our city. We share a mutual vision – for those to see the work we do in our community and inspire them to do better.

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Study Finds Super Bowl Ads Worth the Spend

SuperBowl

30-second advertising spots during the February 4th Super Bowl are selling for more than $5 million (40% of U.S. TV households will be watching), but a collaborative study between Stanford University and Humboldt University (Germany) found that Super Bowl advertisers continue to see meaningful post-game sales during other major sporting events (i.e. March Madness, World Series), within the same calendar year, indicating the spend is worth it. Those that built a social media presence or digital campaign to follow their Super Bowl ad, were successful in keeping their product(s) on the consumer’s mind through baseball season. Companies that were the sole advertiser within a specific product category received the greatest long-term value (see: BUD, PEP). Long-term advertisers received a boost in sales during Super Bowl week, despite the product being purchased before the event (i.e. the ad has yet to run).

Howie Long-Short: Just 10 Super Bowl ad spots remain, so the study is unlikely to impact ad sales (and NBC’s bottom line) for this year’s game. If there are going to be immediate beneficiaries, it’s going to be CBS (rights to ’19 SB) and FOXA (rights to ’20 SB); the rights holders of the next 2 Super Bowls. NBC Universal (CMCSA) said it expects to generate $500 million in Super Bowl ad revenue, a figure in line with the total generated for the last 2 years. Advertisers aren’t worried about the NFL’s declining attendance, that trend hasn’t translated to the Super Bowl; last year’s game drew 111.3 million viewers, the 5th most watched TV event of all-time.

Fan Marino: Mean Joe Greene and Joe Namath participated in iconic Super Bowl commercials, but a lesser known collegiate All-American starred in one of my all-time favorites; Terry Tate as “Office Linebacker”, installing workplace discipline in a 2003 Reebok spot. At 6’5, 300 pounds, with 4.3 40 (yard dash) speed and collegiate All-American (Morgan State) game tape, Lester Speight (his real name) should have been an NFL star; position changes and injuries derailed his promising career. He never played in a professional football game.

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