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Subject:
From:
Bob Woodbury <[log in to unmask]>
Reply To:
The Maine Hockey Discussion List <[log in to unmask]>
Date:
Mon, 9 Apr 2007 16:49:36 -0400
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In light of a recent, somewhat emotional thread here, I stumbled across 
this AP story I thought the list might find interesting to read.

MADISON, Wis.

The University of Wisconsin is ready to sign a contract giving a 
Missouri-based company the exclusive marketing rights to Badgers' sports 
through 2019 in exchange for guaranteed payments of $76 million.

The contract, to be considered by the Board of Regents this week, calls 
for Learfield Communications, Inc. to continue managing television and 
radio shows for Badgers' coaches and play-by-play radio broadcasts for 
football, men's and women's basketball and hockey.

The company, whose Madison-based staff operates as Badger Sports 
Properties, also will handle marketing, including game-day programs, 
special events, sales to corporate sponsors and Web site advertising.

One sports marketing expert said Monday that many universities are 
signing similar deals but Wisconsin's may be among the most lucrative.

"That would seem like one of the bigger numbers I've seen out there," 
said David Carter, executive director of the University of Southern 
California's Sports Business Institute.

Annual payments to UW would start at $4.9 million and gradually increase 
to $7.48 million in the final year of the contract.

The deal would replace a 7-year, $30 million agreement that runs through 
2009.

The increase in revenue will help pay the salary of Badgers' football 
coach Bret Bielema, who signed a five-year, $7.5 million contract 
earlier this year after a stellar rookie season. Bielema's contract 
calls for $5.5 million of his pay to come from Learfield's payments.

UW picked Learfield in 2002 over five other companies in a competitive 
bidding process. The school previously split up media rights and handled 
marketing itself, but it says consolidating them has increased revenue 
and marketing opportunities.

Learfield proposed the 10-year extension last year and UW officials have 
recommended accepting the deal, saying it compares favorably with other 
universities' contracts.

Mike Behymer, senior vice president of Learfield Sports, called the 
contract "an aggressive opportunity for the university." He declined 
further comment until it is approved.

Learfield would get the rights to distribute the programming, sell 
advertising during shows, games and on the athletic department's Web 
site and to secure corporate sponsorships.

Many universities are outsourcing their marketing to stabilize their 
budgets at a time when coaches' salaries are increasing, Carter said. He 
noted Wisconsin has one of the largest athletics budgets, about $80 
million, in the country.

The agreements are becoming more popular because they mean universities 
do not have to spend money and hire staff themselves, Carter said.

"It's a business decision made by these universities," he said. "I think 
it adds a measure of certainty and it takes any financial risk out of 
the equation."

At least a handful of other universities have long-term marketing 
agreements comparable to UW's proposal. That includes Tennessee, which 
signed a 10-year, $83.4 million deal with Host Communications last year.

Wisconsin's extensive, 47-page agreement throws in some additional 
sweeteners. Learfield would pay an extension bonus of $1 million, 
$750,000 to install new signs at the Kohl Center and Camp Randall and 
donate $25,000 per year to endow a journalism scholarship.

The deal calls for the company to provide what UW calls a significant 
amount of free radio and television advertising for Badgers' sports.

The regents' business, finance and audit committee is scheduled to 
review the proposal Thursday during a meeting at UW-Oshkosh. The full 
board could approve it on Friday.

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