Syracuse University cancels contract with sports marketer IMG (PS)

[Orangepace]

I said it in the Gross thread, but SU negotiated the IMG deal when they were in the BigEast. There is zero chance that the value of these rights went down with the realignment to the ACC. It would have been ignorant to keep operating under the old contract. There will be a new agreement with a sports marketing agency, possibly even IMG, in a few months.

 

[HtownOrange]

I said it in the Gross thread, but SU negotiated the IMG deal when they were in the BigEast. There is zero chance that the value of these rights went down with the realignment to the ACC. It would have been ignorant to keep operating under the old contract. There will be a new agreement with a sports marketing agency, possibly even IMG, in a few months.

Add to that the fact that Kentucky just signed at $14MM/year and one has to believe that Syracuse is going to get a nice bump!

 

[SUFan44]

From the P-S:

"IMG, together with a company it merged with, ISP, had been marketing SU sports since 1999. IMG sold everything from signage at the dome to the Time Warner logo on football coach Scott Shafer's headset. It also had been paying the lion's share of salaries for SU's top coaches and a share of the salary of SU's athletic director, Darryl Gross.

"SU has not said how much IMG paid the university. IMG's payment to SU had been a guaranteed amount, with a percentage of revenue shared once a threshold is met, Joe Giansante, SU's executive senior associate athletic director, said last fall. But IMG is paying West Virginia University at least $7 million a year to market its sports programs, according to published reports.

"IMG handled all of SU's marketing for football, men's and women's basketball and the coaches' radio show for those sports, as well as running men's lacrosse play-by-play radio and SU game programs. IMG handled all of SU sports' Internet rights, event marketing and game promotional rights, video rights, publication rights and all facilities signage rights."

What do the people that are employed by the athletic department actually do? Inquiring minds want to know...

 

[texascpa]

I said it in the Gross thread, but SU negotiated the IMG deal when they were in the BigEast. There is zero chance that the value of these rights went down with the realignment to the ACC. It would have been ignorant to keep operating under the old contract. There will be a new agreement with a sports marketing agency, possibly even IMG, in a few months.

Yep. At first I was wondering how they could just cancel the contract without incurring a substantial fee. Now, I wonder if they had an out clause due to moving to a new conference or a "look-in" every few years.

 

[Orangepace]

Yep. At first I was wondering how they could just cancel the contract without incurring a substantial fee. Now, I wonder if they had an out clause due to moving to a new conference or a "look-in" every few years.

At minimum there had to have been some sort of "material change" clause in the agreement.

I'm shocked they signed an agreement for 15 fricken years w/ an option for another 15 years. The world changes so much every 5-10 years that locking anything up that long term just seems bad business on its face.

 

[rrlbees]

At minimum there had to have been some sort of "material change" clause in the agreement. I'm shocked they signed an agreement for 15 fricken years w/ an option for another 15 years. The world changes so much every 5-10 years that locking anything up that long term just seems bad business on its face.

We like long term contracts. IMG, "Carrier" Dome forever , Met Life 20 years, etc.

 

[upperdeck]

how is it this board can come up with ideas and IMG or the school has been unable to do so for decades? For the same reason that so many companies hire out work in fields that they are not subject matter experts, its considered a cheaper way or provides less of a headache. It doesnt always mean its done better. you get good people in the right positions and they can get it done better, you get bad people in and it may fail anyway no matter who does it. this is just like coaching. SS is looking good because so far he is looking to work with people who care about the kids and about getting better in what they do.. If the AD had more people like that they would succeed but so far they have far more people who want a job than want to be good at their job. Most companies have that same issue.

 

[Orangepace]

We like long term contracts. IMG, "Carrier" Dome forever , Met Life 20 years, etc.

Oh I know they've demonstrated they like the stability, but since they're in the drivers seat regarding the fact that they are creating the value, it just doesn't make a lot of sense.5-10 years would be more plausible.

 

[rrlbees]

Oh I know they've demonstrated they like the stability, but since they're in the drivers seat regarding the fact that they are creating the value, it just doesn't make a lot of sense.5-10 years would be more plausible.

Hey, I'm with you. I think long term sometimes can be the wrong choice because things can change.