UH deal with IMG will net millions

[uhwarriors]

A California-based marketing, talent management and events production firm will manage and market sponsorship rights for University of Hawaii athletics for the next 10 years.

UH Athletic director David Matlin announced the arrangement with Beverly Hills, Calif.-based IMG today.

Financial terms of the deal were not immediately disclosed.

More:
http://www.staradvertiser.com/2017/09/0 ... ip-rights/

The University of Hawai'i Athletics Department announced a 10-year multimedia rights agreement with IMG. Under the agreement, IMG will manage and market the sponsorship and multimedia rights associated with the school's 21 athletics programs.

"This partnership with IMG holds the promise of taking our corporate partner program and multimedia rights to an even higher level and we're excited about that," said Athletics Director David Matlin. "IMG has a large national footprint across collegiate athletics that could open the way for new supporters of UH Athletics. In addition, beyond athletics, IMG is a worldwide entertainment company that could also provide other opportunities which would benefit our department."

"We are thrilled to partner with the University of Hawai'i as we work together to build upon the foundation of the strong Rainbow Warrior Athletics brand," said Tim Pernetti, President, IMG College. "Our relationship will focus on providing partnerships and unique solutions that will deliver a great experience for the UH community and its student-athletes."

UH Athletics previously handled its multimedia rights operations in-house for the last 15 years. IMG will staff three full-time employees within the Athletics Department who have considerable familiarity within the local market.

About IMG
IMG is a global leader in sports, events, media and fashion, operating in more than 30 countries. The company represents and manages some of the world's greatest sports figures and fashion icons; stages hundreds of live events and branded entertainment experiences annually; and is one of the largest independent producers and distributors of sports media. IMG also specializes in sports training; league development; and marketing, media and licensing for brands, sports organizations and collegiate institutions.

http://hawaiiathletics.com/news/2017/9/ ... h-img.aspx

[My3Cats]

UH Athletics needs the help. So much to do, so little time. Good move by Matlin.

[shrek2]

I personally have a bias against companies out of LA which is negative and that they are just in it for the money. I believe that the brains are in NCAL or NY but the decision has been made and the company does have a client base.

KNBR which is the Sports radio station for the Bay Area has a couple of broadcasters that have put the UH football team down a few times. I mentioned it through YELP that their big sponsor for the SF Giants in Hawaiian Airlines broadcasted by KNBR out of the Hawaiian Airlines broadcast booth so they are biting the hand that feeds them when they make light of the UH football team. I think that some of the KNBR broadcasters cannot put 1 and 1 together to get 3 and that Hawaii is not just Mai Tais, beach, great weather and great food. UH has a great mid-major football program run by someone from Marin Catholic coaching and a quarterback from Los Gatos.

[oneseason]

IMG is on Wikipedia and seems to be run from New York City ... https://en.wikipedia.org/wiki/IMG_(company) ... "IMG, originally known as the International Management Group, is a global sports, other events and talent management company headquartered in New York City.[1] It has been owned by William Morris Endeavor and Silver Lake Partners since 2013. Trans World International (TWI) is the event company of IMG."

A 10-year contract could be good if they can develop a long term strategy to grow revenue, the fan base, and PAC-12 interest in adding the University of Hawaii. The expensive pay per view model that is currently in place for football seems like a poor approach to build a fan base and get community support for a new football stadium, and will hopefully be looked at.

[uhwarriors]

Highlights of today's Star-Advertiser article:

The University of Hawaii stands to earn at least $27.7 million over the 10-year life of its new multimedia rights licensing agreement with IMG, according to the deal.

As part of the agreement, UH will receive a $1 million signing bonus with payments split over 2018 and ’19. Annual royalties begin at $2.2 million this year and escalate to $3 million in the contract’s final year.

Matlin said the overall $27.7 million “compares very favorably to the $21.0 million that the university would have been able to achieve on its own during the same period.”

UH can earn additional funds if specified revenue targets, which escalate from $4.4 million this year to $6 million in the final year, are exceeded. IMG is also expected to retain at least 50 percent of the non-cash trade UH receives.

Rest of article:
http://www.staradvertiser.com/2017/09/1 ... -millions/

[shrek2]

Whoa, I am skeptical of the projected $27.7M over the 10-year partnership. Is this LA speak? First of all, why did they choose 10 year partnership where anything can change over the course of the 10 year period, like Hawaii could go FCS (hope not) or Hawaii could mid-major to power conference. 5 years is long enough to continue the contract another 5 years. What would be the problem? Isn't this something the MBA Marketing program can deal with and develop? Is it because the firm lives in Beverly Hills on the Mainland? Can they provide potential jobs to MBA Marketing majors and/or other recent MBA graduates as interns?

[uhwarriors]

Whoa, I am skeptical of the projected $27.7M over the 10-year partnership. Is this LA speak? First of all, why did they choose 10 year partnership where anything can change over the course of the 10 year period, like Hawaii could go FCS (hope not) or Hawaii could mid-major to power conference. 5 years is long enough to continue the contract another 5 years. What would be the problem? Isn't this something the MBA Marketing program can deal with and develop? Is it because the firm lives in Beverly Hills on the Mainland? Can they provide potential jobs to MBA Marketing majors and/or other recent MBA graduates as interns?

UH doing it internally would make $21.0M over 10 years. So IMG guaranteeing a minimum of $27.7M or $6.7M more is not an unrealistic amount given IMG’s expertise and national reach. And there's upside sharing of additional revenues possible.

75 programs including Alabama, Baylor, Florida State, Ohio State, TCU, Arizona, UCLA, Georgia, Kansas, Michigan, Nebraska, Notre Dame, Tennessee, Texas, Washington and others have deals with IMG. I think we’re lucky to have the same marketing company on our side. Better yet, it doesn’t appear that any other Mountain West school has a deal with IMG.

List of schools with IMG:
http://www.imgcollege.com/our-propertie ... iversities