In a union of pinstripes and three stripes, the New York Yankeesand adidas are joining in a marketing deal that could sparkcompetition for corporate money among baseball teams.
The sponsorship deal announced Monday is said to be worth about$95 million for 10 years, giving the Beaverton-based company theright to put its name and logo all over Yankee Stadium.
Details were not released, and it is not clear if it violates theYankees' agreements with Major League Baseball Properties Inc., thelicensing wing of the sport. But the deal is likely to set off ascramble among the large-market teams to sign similar agreements.'Does this mean I should go out and make my own deal?' oneNational League team president said on the condition he not beidentified.Just as Greg Murphy, baseball's new marketing head, was detailingthe sport's new marketing plan, the Yankees finalized theirannouncement, another sign of the collapse of central authority inthe sport.'A significant component of this arrangement will be theassociation of adidas in and around Yankee Stadium to further thepresence of adidas in the New York market,' the team and the companysaid in a joint statement.'Adidas and the Yankees will also collaborate on joint programsinvolving certain athletic equipment and apparel. All facets of theYankees media, signage and publications outlets will be used tostrengthen the association between the two companies.'The deal does not cover the actual uniforms, one adidas officialsaid on the condition he not be identified. MLBP sells uniformlicensing rights, and they are held by Russell Corp. under acontractthat ends following the 1997 season.However, the Yankees and adidas intend to publicize theirrelationship and tie their identities to such an extent that theteam's uniform rights might not be desired as much by other sportinggoods companies.'Obviously, until and when we see the deal, any comment comingfrom me would be most inappropriate,' acting commissioner Bud Seligsaid.The agreement also does not cover shoes, said the official ofadidas, known for its three-stripe logo. Under the settlement of agrievance filed in 1982 by the players association against theCincinnati Reds, each player is free to make his own shoe deal anddisplay whatever equipment mark he chooses on their shoes.The Yankees and the company signed the deal last weekend, theadidas official said. The agreement between major league teams andMLBP requires clubs to clear sponsorship deals in advance withbaseball officials before they are signed, but the Yankeesapparentlydid not do so.'This agreement enables adidas to further strengthen its presence,not only in the baseball market, but in the entire sporting goodindustry,' said Robert Erb, adidas' director of sports marketing.Before the 1994-95 strike, each team received about $3 million peryear from MLBP, but sales of baseball's licensed goods -- includinguniforms, caps, jackets and hundreds of other items with logos --dropped sharply during the 232-day work stoppage, which wiped outthe1994 World Series.Murphy negotiated a 10-year contract that would have had Nikeoutfit 18 teams and Reebok 12, but that deal was rejected by owners,unhappy that each team would receive only about $350,000 eachseason.'Is it a situation where we have to go out and contact owners andgeneral managers independently?' Reebok spokesman Dave Fogelsonsaid. 'That, quite frankly, is a pain.'Reebok would be interested in a deal with the Chicago White Sox,who have Reebok endorsers Albert Belle and Frank Thomas.'It would certainly make sense to do something because of Albertand because of Frank, and also because Chicago is a key marketplacein our industry,' Fogelson said.Many Yankees stars have agreements with Reebok. David Cone, AndyPettitte, Cecil Fielder, Paul O'Neill and Kenny Rogers all wearReebok spikes on the field, as do manager Joe Torre and coach DonZimmer.
