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Why dont Sponsors threaten to walk away?


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#1 PlayStation

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Posted 18 October 2012 - 04:34 PM

I was thinking, why dont the NHL's sponsors come together and threaten to stop spending their millions on advertising that the NHL profits off. Or threaten not to come back as a sponsor after their sponsorship deals over. Even if they were empty threats, would it not put the NHL in the pressure seat?

Think of it, McDonalds, Coca Cola, Pepsi, Save On Foods, Rexall, Chevron, Starbucks, Nike, Sony, Tim Hortons, IBM, Subway, Boston Pizza, Snickers, Smirnoff, Telus, Sportchek, Lays, Panasonic, Samsung, Gillette... The list goes on.

Currently their advertisements arent being shown on tv, nor on the boards and are probably spending their money elsewhere, so it would not make a difference if they were to say they are going to pull from advertising in the NHL in the future.

The amount of money the damn NHLPA and NHL are crying over is much less than they are going to lose this entire season if it is lost. Idiots.

Let me know what you think, thinking about sending a email to all those sponsors thought I doubt anything will occur as those emails never get anywhere.

Edited by PlayStation, 18 October 2012 - 04:35 PM.

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#2 Rey

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Posted 18 October 2012 - 04:38 PM

cause the sponsers need the nhl more than the nhl needs them. done.
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#3 TVank15

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Posted 18 October 2012 - 04:42 PM

It would be awesome if it happened, but sadly you won't get them all to agree to do it for various reasons. Another similar idea that also won't work but would be sweet if it did is how would both sides feel if the media just stopped paying attention? No more reporters, no more interviews, no more lockout talk, just go on reporting other sports. No more wasting time on these negotiations that aren't moving forward anyway.

Edited by TVank15, 18 October 2012 - 04:45 PM.

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#4 PlayStation

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Posted 18 October 2012 - 04:49 PM

cause the sponsers need the nhl more than the nhl needs them. done.


Do they? They are doing just fine right now, push that extra cash into the NFL, NBA, MLB. They aren't getting any face time right now because there are no games. And like I said, they could just be empty threats and just bluffing.


It would be awesome if it happened, but sadly you won't get them all to agree to do it for various reasons. Another similar idea that also won't work but would be sweet if it did is how would both sides feel if the media just stopped paying attention? No more reporters, no more interviews, no more lockout talk, just go on reporting other sports no more wasting time on these negotiations that aren't moving forward anyway.


Only would take a couple big companies, to have others to follow, if McDonalds jumped aboard, many would follow. Isn't McDonalds one of the main sponsors for the All Star game? Let alone for the whole year.
And I like the idea of the reporters but most of those reporters have no job if they dont.
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#5 Gustavo Fring

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Posted 18 October 2012 - 04:49 PM

Because the corporate sponsors know the NHL will be coming back eventually.
Why strain a profitable relationship with threats?
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#6 PlayStation

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Posted 18 October 2012 - 04:56 PM

Because the corporate sponsors know the NHL will be coming back eventually.
Why strain a profitable relationship with threats?


Many sponsors heavily rely on advertisement during the NHL Season, mostly local sponsors ex Safeway Score to Win, Save On and how they always have exclusive items like posters, sticks, used to have a fan club. Team 1040, Boston Pizza, you get the point

Do they really want to go a year without that? I'm sure it'll hurt their revenues this year. And anything they had planned, down the drain.

I'm not saying this would even happen, highly unlikely they would even think of such, but I'm just asking for peoples opinions.

Edited by PlayStation, 18 October 2012 - 04:58 PM.

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#7 Common sense

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Posted 18 October 2012 - 05:05 PM

The dollar amount probably isn't that much compared to other marketing streams. For a company such as McDs or Safeway to sabotage its relationship with the NHL, it's bad for them in the short-term as well as the long term when other parties want to do business.
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#8 Rey

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Posted 18 October 2012 - 05:07 PM

Those places are as big as they are now, mainly because they are sponsers. Without sponsers they would be like any other local store/place/restaurant. Any big business would not dare to risk losing it. Especially if they are Canadian Based and Sports based. It's more of a partnership. You don't want to jeopardize that.

I think there was an episode of Dragon Den, and one of the dragons is the owner of Boston Pizza said that Hockey and sports make up most of their revenue. Without it, they'd be bankrupt. Out of business. What makes them any damn different from any pizza place? Cause they're sponsers and it's because of the ads. With the lockout, they're going to lose a hell lot of money anyways, just like any bar or sports store. They'll just have to deal with it.

Companies like Nike, Macdonalds, Coca Cola are loaded already. To them, it's like paying pennies. They're American and hockey for their business means little when they are sponsoring everything including the NFL.

Edited by Rey, 18 October 2012 - 05:23 PM.

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#9 Ghostsof1915

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Posted 18 October 2012 - 06:54 PM

It's sort of like the idea of a 25/25/50 split in revenue.

25% to the players, 25% to the owners, and a 50% reduction in ticket prices, and merchandise.

Great idea, but it would never happen.
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#10 The Bookie

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Posted 19 October 2012 - 02:09 AM

The sponsors do draw a line. They do walk away. That's the invisible tipping point where we lose the season. The NHL met with a group of major sponsors in early October to discuss this. Currently they're channeling some of their money into other ventures. But I'd bet my own money they've already laid down a deadline at which point they retract for the season, and the NHL has agreed to that date as the official cancellation of 2012-13. November 15 is my bet.
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#11 elvis15

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Posted 19 October 2012 - 09:32 AM

The only significant impact I could see is the dissolution of TV deals. NBC is finally on board in the US market and if they start to lose games, they put pressure on the NHL from their end. The NHL should feel the same pressure from Canadian broadcasters but they don't, because they know, just like Canadian fans, they'll be back.

They'll find other sponsors if some walk away, but I doubt any would as all they're doing now is taking the money they would have spent on hockey-specific advertising and putting it into their regular advertising budgets. They may not have the same market audience they'd like in all cases but they haven't lost significant advertising just because there aren't any NHL games.
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#12 Nuck_Family_in_SD

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Posted 19 October 2012 - 04:34 PM

Obviously, no one cares enough to do anything. Lots of good ideas here, but no one seems to either be losing enough money, or cares that they can't spend it with the NHL right now to make any credible threats to get hockey started again. Not enough fans are serious enough to stick to their guns and boycott the season if and when it starts.

If I understand correctly, the players are getting paid because they aren't striking? Apparently the NHL isn't hurting. The advertisers have plenty of other places to spend their advertising dollars. The only ones getting hurt are the fans,the employees of the arenas and related services, vendors, and shops that sell NHL gear. Oh, and maybe DirecTV...not sure how much they make off each Center Ice subscription, but they haven't billed me yet!
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#13 cIutch

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Posted 19 October 2012 - 05:18 PM

yeah , once cheatah power surge leaves the nhl is f#$k3d
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#14 Biznow

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Posted 19 October 2012 - 05:28 PM

The most effective thing to do would be for seasons ticket holders to cancel, unfortunately that won't happen either.
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#15 The Bookie

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Posted 19 October 2012 - 09:09 PM

If I understand correctly, the players are getting paid because they aren't striking?


Incorrect.
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#16 Nuck_Family_in_SD

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Posted 20 October 2012 - 06:12 AM

Incorrect.


Thanks for the correction. Salaries are not being paid to players, but some players are receiving lots of money even though they aren't playing.

Link: http://thehockeywrit...ng-the-lockout/

Edited by Nuck_Family_in_SD, 20 October 2012 - 06:13 AM.

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#17 Standing_Tall#37

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Posted 20 October 2012 - 07:56 AM

If fans wrote letters to these places such as air Canada, budweiser, coca cola, Etc...and say we cannot support your sponsorship of a lockedout league. So we're spending our dollars on other things(essentially locking you out of our shopping habits) and they saw a big decline in business...it would force them to at least consider their sponsorship.


Budweiser however spends close to 60 million a year on sponsorship of sports. I doubt they get phased easy but hell...drink a Kokanee during the lockout, can't hurt to try. Drink no-name soda. Fly the alternative airline to air canada.







And for the love of Christ quit buying NHL 13, these sales numbers let them know that your hockey starved and will pay them even more once they come back even if it's a year or two down the road.

Edited by Standing_Tall#37, 20 October 2012 - 08:00 AM.

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#18 PlayStation

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Posted 07 November 2012 - 05:09 PM

http://www.montrealg...1777/story.html

MONTREAL - Molson Coors says the NHL lockout has forced the beer company into the penalty box by reducing beer sales across Canada for its marquee brands.

The Montreal and Denver-based brewer said the financial impact of the nearly two-month labour dispute is difficult to tabulate, but the company's most important cold-weather driver of sales has disappeared.

"Whether it's people not actually physically going to the venues and consuming there, consuming in venues around the outlet before that, or indeed having NHL sort of parties at home, all of those occasions have disappeared off the map and you just can't replicate them," CEO Peter Swinburn said in an interview Wednesday.

The impact is more pronounced in Canada than in the United States and has particularly hurt sales of Coors Light and Molson Canadian.

"It's a national sport, the whole of Canada is glued to it one way or another so there's no real regional difference at the moment that we can detect."

Swinburn said that once the lockout ends, Molson Coors will seek financial compensation from the league over the negative impact that a lack of games has had on the hockey league sponsor.

"There will be some redress for us as a result of this. I can't quantify that and I don't know because I don't know the scale of how long the lockout is going to last."

Molson Coor beat expectations as its net profit increased 1.5 per cent to US$197.7 million in the third quarter on a 25 per cent increase in revenues.

Adjusting for one-time items, earnings increased 17.2 per cent to US$248.9 million despite a weaker performance of its Canadian business caused by the lockout, reduced summer demand and the impact of canning supply issues in Montreal

Underlying earnings for the period ended Sept. 30 were US$1.37 per share, up from US$1.14 per share or US$212.4 million a year earlier.

Revenues increased to US$1.2 billion from US$954 million a year ago.

Molson Coors, which reports in U.S. dollars, was expected to earn $1.34 per share in adjusted profits on $1.25 billion in revenues in the third quarter, according to Thomson Reuters.

That compared to $1.14 per share a year earlier.

The brewer said its improved performance was driven by the first full quarter of operations in Central Europe and improved results in the United States.

Worldwide beer volume grew 30.8 per cent to 17.2 million hectolitres.

Adjusted pre-tax profits in Canada decreased 7.1 per cent to $150.7 million and by five per cent in Canadian dollars.

Higher prices and cost reductions were more than offset by lower volumes, a shift toward higher-cost products, pension expense and foreign currency. A 2.3 per cent decline in the Canadian dollar reduced income by about $5 million.

Sales-to-retail decreased 5.1 per cent due in part to a shift of Canada Day to the second quarter of Molson's fiscal year from the third quarter in 2011.

Molson Coors (TSX:TPX.B) (NYSE:TAP) said its Canadian market share declined about one share point, while industry volume decreased by three per cent. About half of its share decrease was due to being unable to meet a 30 per cent increase in demand for cans following an upgrade of its Montreal production line.

"On the financial level, the results were very satisfactory although we were disappointed by the poor consumer demand in a number of our markets, Canada would be one of them," he said.

The first full quarter of operations in Central Europe added more than $60 million of pretax underlying earnings in the quarter. U.S. earnings increased 16 per cent while the U.K. and international business units decreased.

Like all packaged goods companies and brewers, the weak European economy caused Molson Coors to sustain a significant reduction of demand in late August and September. Still, it grew market share in five of seven of its markets and reduced costs.

Swinburn said the company expects consumer demand in the fourth quarter will be more challenging this year because of strong results in Canada last year and higher costs in the U.S. and Central Europe.

The economy will have a big impact on results if unemployment in the United States continues to decrease below eight per cent and consumer confidence rises due to factors such as rising home prices, he said, noting a direct correlation between unemployment and beer sales.

Mark Swartzberg of Stifel Nicolaus said Molson Coors beat expectations due to contract brewing volumes and margin benefits in the U.S.

"We expect the fourth quarter and 2013 estimates to be little changed by today’s news," he wrote in a research note.

Molson Coors employs 15,000 people at 18 breweries and operations in more than 30 countries.

It has a portfolio of more than 65 strategic and partner brands, including Coors, Coors Light, Molson Canadian, Carling, Blue Moon, Keystone and Richard's.

On the Toronto Stock Exchange, Molson Coors shares dropped $1.66 or 3.8 per cent at C$41.60 in afternoon trading.


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#19 canucks.bradley

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Posted 07 November 2012 - 08:12 PM

because if they do, there will be plenty of other companies waiting to pounce
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#20 surtur

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Posted 07 November 2012 - 08:53 PM

anyways people who actually like quality beer don't drink Molson (as for air canada i prefer westjet) etc etc.. maybe more people are just buying more micro brew beers instead of the over priced water beers molson and bud etc are selling.
i prefer homebrew myself and it is 100x's better then the junk molson is advertising as beer.
either way a revolt from sponsors will not change anything they do not give enough $$ to make a difference unless major TV partners revolt and do not honor contracts.

Edited by surtur, 07 November 2012 - 08:54 PM.

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#21 BCNeil

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Posted 07 November 2012 - 09:20 PM

The most effective thing to do would be for seasons ticket holders to cancel, unfortunately that won't happen either.


Im guessing you dont own season tickets?
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#22 Ghostsof1915

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Posted 09 November 2012 - 08:25 AM

The odd thing about Molson, is that the family owns the Montreal Canadiens. So in effect Molson is suing themselves....
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#23 Snake Doctor

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Posted 09 November 2012 - 11:49 AM

It's a good point you make Playstation. However, when hockey is back those corporations will not want to be left behind. It's actually a bonus that those corporations can save a little money in this slow economy.
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