The New Jersey Nets are used to working hard for sponsorships in the New York market, so the National Basketball Association franchise is in familiar territory during the current economic downturn, said Chief Executive Officer Brett Yormark.
``We, obviously, have always been the underdog in the tri- state area, so the business of value creation has been one that we've been very close to and have adapted for the last couple of years,'' Yormark said in an interview that will air Oct. 11 on Bloomberg's ``On the Ball'' radio program. ``I think it's going to serve us well in times like now because we look to over- deliver.''
The Nets, who play at the Izod Center in East Rutherford, New Jersey, have among the smallest followings of the nine New York area professional sports teams.
The team ranks 17th among the NBA's 30 franchises with a value of $338 million, according to Forbes magazine. The New York Knicks, who play nine miles away in Manhattan's Madison Square Garden, lead the league with a value of $608 million.
The geographic and facility shortcomings have for years necessitated that the Nets build business relationships between their sponsors, adding value beyond direct association with the team, Yormark said.
Business-to-Business
The Nets, owned by Forest City Ratner Chairman and Chief Executive Officer Bruce Ratner, plan to increase the number of business-to-business forums it holds with its sponsors this year and sent a letter to them asking each what other company they'd like to meet and do business with.
The team's 87 sponsors include Phillips-Van Heusen Corp.'s Izod as well as Barclays Plc, which in January 2007 bought the naming rights for the Nets' planned new arena in Brooklyn, New York. Other sponsors include Foot Locker Inc., Home Depot Inc., Aflac Inc., and Adidas AG.
``It's not just about what they are doing with us directly, but how I can engage them with all of my other partners,'' Yormark said. ``It's not just about the value I can create, but about the value my partners can create for each other.''
The effort has the Nets ``on pace to hit budget this year'' as the team awaits a move to Brooklyn. In January, they delayed the relocation, announcing that the team will play most or all of the 2009-2010 season in their current facility.
``Being in Jersey doesn't give us some of the revenue streams that obviously, Brooklyn will provide us with, but we've made do over the course of the last couple of years,'' Yormark said. ``We'll continue to make do, and look forward to when we get to Brooklyn.''
(Source: Bloomberg)
