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Dick's bets soccer gains a foothold
With investment in a soccer stadium, Dick's is betting that the sport will finally gain a foothold in the United States
Wednesday, April 04, 2007

Garrett W. Ellwood/WireImage.com
Dick's Sporting Goods executives in November signed a deal for 20 years of naming rights to a new state-of-the-art soccer stadium in Commerce City, Colo.
By Teresa F. Lindeman
Pittsburgh Post-Gazette
The strategists at Dick's Sporting Goods Inc. heard rumors last fall that international soccer star David Beckham might sign with an American team, a move expected to give a kick to the decades-long effort to make professional soccer a big deal in the United States.

But when executives from the Western Pennsylvania retailer in November signed on the dotted line for 20 years of naming rights to a new state-of-the-art soccer stadium in Commerce City, Colo., Mr. Beckham had not yet affixed his name to a U.S. deal -- and that was fine with the company.

Dick's officials already were convinced that soccer -- a game that's been known to trigger riots among passionate fans in other countries -- is finally ready for a breakthrough here in America.

That confidence led to the naming rights deal estimated to be worth $40 million, although the company won't confirm any financial details.

In addition, during the approximately 40 games that Major League Soccer or the U.S. National Men's Team play on ESPN or ABC this year, the broadcast will include a Dick's Sporting Goods Halftime Show. Two new TV commercials focused on soccer are in the works.

The push comes as the sporting goods chain has expanded its stock of soccer-related merchandise in its almost 300 namesake stores, adding a selection of higher end products than were available a couple of years ago. A community program boosting youth sports also has been ramped up to get donated gear bearing the company's logo into the hands of more leagues short on resources.

While Dick's struck the naming rights deal without assurances Mr. Beckham was coming, the chain's executives still cheered along with everyone else involved in Major League Soccer when the famous midfielder with the talented feet agreed to go to Los Angeles in an arrangement that could bring him more than $250 million.

"The interest level with Beckham coming to the Los Angeles Galaxy is huge in not just what he'll do for that team, but for the league in total," said Jeffrey R. Hennion, Dick's senior vice president and chief marketing officer.

Paul White, Associated Press
David Beckham will play for the Los Angeles Galaxy in a deal Major League Soccer hopes will boost the sport in the United States.
Click photo for larger image.
Dick's confidence in U.S. soccer, with or without the husband of an ex-Spice Girl, might seem misplaced based on the league's licensed product sales. Major League Soccer's 2006 sales totaled $150 million, far below the $3.2 billion racked up by the National Football League and even the $400 million for the National Hockey League, according to SportsOneSource from its SportScanInfo research arm based in West Palm Beach, Fla.

But the retailer's timing could be strategic, said Don Hinchey, vice president of communications for sports marketing firm The Bonham Group, in Denver. "Soccer is really beginning to hit its stride in the U.S.," he said.

For the first time this year, the league has a broadcast deal that will pay it fees, giving television executives an incentive to boost ratings. Dick's will see the first impact Saturday when ABC broadcasts the opening day match of D.C. United and the Colorado Rapids from Dick's Sporting Goods Park.

After years of playing on fields lined for American football, the past few seasons have seen the construction of several soccer-specific stadiums bearing the names of such sponsors as Home Depot, Toyota and Pizza Hut. Toronto will start play in a brand-new stadium this year as the league's 13th team, and soccer officials are in active talks with several other markets, including Cleveland and St. Louis, with a goal of 16 teams by 2010.

The league's new rules allowing investments in star players such as Mr. Beckham have lined up several big names that officials hope will draw interest from casual fans as well as those hoping to see better, more competitive play. A growing Hispanic population also is expected to feed interest in soccer at the professional level.

The Colorado Rapids naming rights deal already has generated plenty of publicity for the sporting goods retailer, particularly in the Rocky Mountain region, where Dick's wants to raise its profile, said Mr. Hinchey. The company's roots are east of the Mississippi but it has been gradually expanding westward.

Company executives liked the idea of being associated with the new sports complex not just because of the 18,000-seat stadium but also because it included 24 full-size outdoor fields that community teams can use. One story in the Denver Post newspaper, which noted the park's name is a bit of a mouthful, labeled the new complex a Xanadu for soccer enthusiasts.

So far, Mr. Hinchey said, he hasn't seen anybody using anything but the full Dick's Sporting Goods Park name. Any company buying naming rights runs the risk that locals will come up with their own nickname.

But beyond that, Mr. Hinchey sees a lot of opportunity in the deal if the retailer can use television and other marketing tools to raise its position as a soccer sponsor beyond the Rapids' hometown. "It's a wonderful platform."

First published on April 4, 2007 at 12:00 am
Teresa F. Lindeman can be reached at tlindeman@post-gazette.com or at 412-263-2018.