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Greatest sports moments in 2012: 2012 was the year that young golfer Rory McIlroy went from Irish celeb to worldwide phenom with his PGA Championship win. McIlroy won the most money of anyone on tour and earned PGA and PGA Tour player of the year honors. But his biggest achievement? Nike came calling, with a 10-year deal (still unofficial) that will make him the highest-paid golfer in the world. Reports have said his Nike contract will carry a payout of $200 million, but our sources say it may be more like $250 million. McIlroy’s current deal with Titleist and Footjoy expires at the end of the year—Mac has already announced he will not renew with Acushnet, which owns both brands—and the Nike deal would involve head-to-toe apparel and equipment.
McIlroy will go from making about $10 million a year to $25 million from Nike alone. Add that to active deals with Jumeirah Group (a luxury hotel chain), watchmaker Audemars Piguet (you may have heard Jay-Z rap about them once or twice) and insurance giant Santander. Tiger Woods will remain the most famous face on the Nike Golf roster, but McIlroy will be its most expensive.
Bob Dorfman of Baker Street Advertising believes McIlroy is “the biggest breakout of the year” in any sport and adds, “that’s pretty unusual for a guy who’s not American-born.”
Greatest Sports Moments
Still dominant: Venus, Serena, Maria
It’s difficult to become a major endorsement machine in the sport of tennis, save for a few breakout mega-stars. On the women’s side, those have been the same three for a while now: the Williams sisters and Maria Sharapova.
Venus signed a gargantuan $40 million deal with Reebok in 2009 that continues to make her $8 million each year through the end of 2013. Her active deals include American Express, Kraft, Avon and Jamba Juice. Her sister Serena has deals with Wilson, Gatorade, Mission Athletecare, Sheets energy strips, and the Home Shopping Network. This year she added a deal with OPI nails and invested in photo app Mobli.
But Sharapova makes more off the court than either sister. Her Nike deal, renewed in 2010 for eight more years at a reported $70 million, is the biggest in all of pro tennis. She has active deals with Evian, watchmaker Tag Heuer, Homestead Properties, Head, and Cole Haan (her ballet flat has been the top-selling female shoe at Cole Haan for more than two years). This year, she hooked up with Samsung for a three-year sponsorship deal. And in August she launched Sugarpova (yes, really), her own line of candy that will sell in Macy’s, F.A.O. Schwartz, and elsewhere. “Sharapova and the Williams sisters are still the biggest draws at women’s tennis matches,” says Shabelman. “Until they retire or get knocked off the throne, sponsors would be ridiculous not to take them.”
Double-check: Aaron Rodgers
When Aaron Rodgers led his team to Super Bowl victory two seasons ago, it led him to stardom off the field as well. But on his own (low-key) terms: he has a national deal with Nike and small regional deal with Ford but hasn’t appeared in ads for either. He does star in humorous commercials for Associated Bank (which is big in Wisconsin, where the spots featuring him and elderly co-star Edith Yargoczinski are a hit) and State Farm Insurance. He also has small local deals with Prevea Health and Gruber Law, and a radio show with Good Karma, a Milwaukee ESPN affiliate.
It is the State Farm ads that prove Rodgers could be a mega endorser; he just chooses to go easy, which is a stark contrast from his on-field predecessor, Brett Favre, who still stars in Wrangler jeans ads despite being retired. The State Farm ads have even crossed over to other sports—in the NBA, New York Knicks shooter Steve Novak, who is from Wisconsin, often does the “Discount Double Check” move after hitting a three. And the ads brought his teammates in: both Clay Matthews and BJ Raji appeared in ads with Rodgers.
2012 was for Rodgers “a breakout year” in Shabelman’s estimation. The State Farm campaign “helped his visibility” and helped him grab a new deal with Pizza Hut. The genius of the State Farm ads, Dorfman believes, was that, “when you see [the move] on the field you think of the company.” He believes the ads have been “the most effective use of an NFL player” this year.
Family guy: Drew Brees
Another well-liked, wholesome-image quarterback that had a great year was Drew Brees, who has gone mostly for family-friendly (specifically: mom-targeted) deals, with P&G (in his Vicks VapoRub spot, he plays the heroic dad, rubbing the gel onto his son’s chest and then falling asleep with him) and Dove (Brees is smiling and shirtless in print ads for the shower gel).
His ads for Chase are also family-friendly, showing Brees in his backyard with his wife and kid, who in one spot kicks a football through a series of neighbors’ windows; Brees uses his Chase mobile app to pay them all back. The only outlier would appear to be a Pepsi commercial Brees did with the boy band One Direction, but that, too, fits with the rest, in that it constitutes a direct appeal to women. The good-looking, reliable family guy attempts to one-up the cheeky singers and their raving legion of frenzied female fans, then he joins them on stage. “It seems like he was everywhere this year,” says Perlman.
As Dorfman points out, Brees is establishing himself as an endorser of “more female, family-based products” and he has pulled it off despite the bounty scandal that his team still hasn’t put to rest. “I would think he will he be fairly big again next year,” says Dorfman. In addition to Pepsi, Vicks, Dove, and Chase, Brees has deals with Nike and Verizon. Experts believe he may be making as much in endorsements (if not more than) as Peyton Manning.
Rookie face-off: RGIII and Andrew Luck
Rodgers and Brees had great years, but how about less seasoned stars like rookie quarterbacks Robert Griffin III and Andrew Luck? Both were a big draw for big brands before they even stepped on the field, but their strategies have varied.
Griffin snatched up fat deals with Adidas, Electronic Arts (EA), Subway, Gatorade, Nissan, Castrol Oil, and EvoShield. Luck has Gatorade as well, but his deal focuses on Quaker Oats. He also has Nike, EA’s FIFA soccer video game (a bit of a head-scratcher), Topps and Panini trading card deals, and the Riley Hospital for Children at Indiana University.
In other words: Griffin has amassed far more deals, and with bigger names. He graced the cover, in his Baylor uniform, of EA’s NCAA Football ’13 game. He is all over the TV in Subway ads and print magazines in Nissan ads. “RGIII is the breakout star that emerged this year,” says Perlman. How did he even get so many so quickly? Agents and brands, Shabelman says, are “getting more aggressive. There’s a rush by the companies to make sure they don’t miss out on the next big guy. Agents are also saying things. I wouldn’t be surprised if some of these guys are getting promised, ‘I’ll guarantee you a certain amount of money in endorsements if you sign with me.’”
International appeal: Lionel Messi
It’s difficult to become much of a star in the U.S. when you play for a European soccer team. Then again, the one person to have done it successfully is still a name that comes to mind instantly: a pre-MLS David Beckham. This year, a new foreign footballer emerged who could potentially follow in Beckham’s ad-happy footsteps: Lionel Messi of FC Barcelona.
“I think he’s starting to break through the clutter as a recognizable star,” theorizes Perlman. “Also, kids are starting to watch more international soccer, and those matches are getting more coverage in the media and on ESPN top ten plays. I think casual sports fans know who he is now.” Perhaps a clever recent ad for Turkish Airlines—in which Messi faces off against Kobe Bryant (one of the most successful global names) for a young kid’s affection—has helped. Then again, Americans are unlikely to give much new business to Turkish Airlines off that one ad. They are, however, likely to learn who Messi is, if they didn’t know. He has many deals with big brands like Adidas, PepsiCo, Dolce & Gabanna and EA, but they haven’t brought him too much exposure in the U.S. so far. Expect that to change in 2013. Dorfman calls Messi “a sleeper pick.”
Wild card: Dwight Howard
In 2008, when Dwight Howard won the Slam Dunk contest wearing a Superman costume, it seemed he could do no wrong. At the time, he was the star center for the Orlando Magic, and fans loved him. For brands, he was indeed Superman: among many others, he appeared in McDonald’s ads, sometimes with LeBron James.
But last season, he got publicly cranky. He wanted out of Orlando after injury and lack of success on the court. Finally, in August, he got his wish: Orlando traded him to Los Angeles. It was supposed to spell an unbeatable season for the Lakers, who also gained Steve Nash. So far, the new Lakers are having a disappointing season. You don’t see Howard in many ads now. His deals are few, though they do include Adidas.
But if the Lakers turn it around, it is Howard who has the biggest endorsement potential. He’s still young, talented, and could easily get back in fans’ good graces. “Don’t count out Dwight Howard,” says Shabelman. “If that team comes back, if they develop their system to a place where they can become a contender and they make it to the championship, I’m not going to count him out.” Perlman concurs that Howard “has huge upside” despite his issues. And in March, William Morris Endeavor (WME), which reps moneymakers like Tim Tebow, signed Howard and will handle all of his off-court deals.
American attitude: Hope Solo
“The Olympics are always so weird, what happens with those athletes,” says Dorfman. He’s right—many of the biggest stars end up hurting for cash if they aren’t in a regular-season pro sports league. And even those who do have big sponsorships may not get exposure everywhere; not everyone can be Usain Bolt.
But star U.S. soccer goalkeeper Hope Solo has the potential to break the mold. No, the American soccer women did not win the 2011 World Cup — but they did win Olympic gold in 2012. Solo, Shabelman says, “gained quite a bit this past year. She did really well for herself with the Olympics.”
Solo is outspoken, often to the detriment of her reputation, with public dust-ups regarding her post-Olympic comments and a controversial marriage to football player Jerramy Stevens. She wrote a book in which she says her Dancing with the Stars partner once smacked her. She’s talented, but also complicated. That could be a good thing: “She’s an interesting character,” says Perlman. “She has a good backstory and some controversy around it. This Olympics was the Year of the Woman, and she definitely stood out. I think there is potential there for her.” Right now, Solo has deals with Gatorade, Nike, Seiko, EA, Hyperice, and Simple, a skin care line. Her deals with Bank of America and BlackBerry have both ended, perhaps clearing room for new relationships.
Dark horse: Billy Hamilton
In August, we wrote about minor league center fielder Billy Hamilton, the base-stealing sensation many believed would be called up in time for the 2012 MLB Playoffs by the Cincinnati Reds. He was not, but he’s on his way: in December the Reds traded starting center fielder Drew Stubbs; they will temporarily put Shin-Soo Choo in that spot, and GM Walt Jocketty has acknowledged that they anticipate Hamilton starting at center field by the 2014 season.
Hamilton already broke the all-time stolen bases record for a minor league season. He’s transcended the Minors (and is moving up to the Reds’ AAA squad the Louisville Bats) to become a name known by baseball fans, someone to get excited about. For now, he doesn’t have much in the way of sponsorship deals: one with Under Armour that is likely equipment-only, standard trading card agreements with Topps and Upper Deck, and a Louisville Slugger deal. But that’s more than most minor leaguers have. In 2012 he also did a commercial shoot for a Dodge dealership in Pensacola, Florida, and some paid memorabilia signings in Atlanta and Cincinnati.
Viral sensation: Michelle Jenneke
If you’ve never heard of Australian hurdler Michelle Jenneke, the only possible explanation is that you do not use the Internet. In July, a video of Jenneke doing her own special warm-up routine before a heat at the IAAF World Junior Championships in Barcelona went viral; it has 20 million views and counting. Jenneke, only 17, did not go to the London Olympics but won a silver medal at the Singapore Youth Olympics in 2010 and is currently the third fastest Australian woman in the 100m hurdles. Now, thanks to the video, you must prepare for her inevitable TV stardom.
In August, Jenneke signed with Six Sides Management, a sports marketing power in Australia that works with swimming gold medalist Melanie Schlanger, among others. Her new manager there is Damian Triffitt, who tells Fortune, “Obviously we’re looking at endorsements. She loves the U.S., so we want to set up some TV commercials there. Something like a Hewlett Packard would be right up our alley.”
For now, Jenneke doesn’t have a packed binder: her active deals are with Body Science, a nutrition and compression company in Australia (she is designing her own workout outfit with them) and a product-only deal with Oakley. But look for Jenneke to begin appearing on your TV soon—it’s pretty easy to see her becoming, for example, the next GoDaddy girl. And although her management would not confirm, a reliable source tells Fortune that a Nike deal is on the way.
Triffitt says more is to come: “We have big stuff coming out in February in the U.S. It will make all these online videos look like a four-year-old’s play. If you talk to me again about endorsements after February, it will be a very different story.”
