Ray Anderson, Vice President of University Athletics
Opening Statement:
“Good morning, everyone, and thank you for coming out on short notice. We are here because we are really proud to announce today that Adidas is now the partner of Sun Devil Athletics with regard to apparel, shoes, and accessories. It is an eight-year agreement commencing in July of 2015, and it will cover all of our current and any future varsity sports that we bring on line, along, we’re happy to tell you, with coverage for our marching band and pep squads, which we believe is critical. The current agreement expiration provided us an opportunity with ASU and Sun Devil Athletics to really go outside and seek a genuine, committed partner willing to really aggressively invest in Sun Devil Athletics at an elite level, because very frankly we believe we’re an elite-level institution – a partner who would make Sun Devil Athletics a priority amongst their schools – willing to put skin in the game to really advance all of our sports programs, including very specifically an emphasis on our Olympic sports. I want to thank Greg McElroy who is here, Amy Schramm, who’s in the room, Rocky (Harris), and others for their really hard work over the course of the last several months trying to get us to this place where we are today. Adidas, led by Mark King here to my left, and then Chris McGuire and Jim Murphy who will be introduced later, they really accepted our vision at ASU Sun Devil Athletics about who we were, and more importantly where we wanted to go as an organization. They graciously and creatively met our requests. So, we are now dedicated true partners, and we have, together, elevated ASU to elite status among these deals. Very frankly, I’ll repeat again, we think we merit that. Let me give you some of the highlights, the things that differentiates this deal and makes this partnership, this new agreement, really a customized experience for Sun Devil Athletics and ASU. First of all, there’s a very robust product allotment that covers all of our current sports and then automatically increases to cover future varsity sports, for instance, hockey, and whatever may come next. With regard to special orders for unique occasions like Breast Cancer Awareness or Military Appreciation, those uniforms will be provided by our new partner, Adidas, over and above the base uniforms amounts. The band and spirit squad, again, were specifically covered because we believe that those members of our team deserve and merit a lot of attention for their hard work. Adidas was willing to step up and really specify that our band and spirit squads are part of our teams, and therefore, they will be covered as well under this new agreement. The new deal includes dollars specifically committed to helping us do sports promotions and program development, including facilities’ improvements, as prioritized by Sun Devil Athletics. Their branding and design expertise and assistance is included, and this is critical to all of our services and really benefits Sun Devil Athletics in a way that we have not been benefited before. It includes up to 12 sponsored internships annually to benefit Sun Devil Athletics, so whether that be in Law or Business Journalism, Marketing, or other undergraduate programs, we have a commitment to helping us on the academic and development side, and that was important to us. Adidas, as you probably know, is the owner of Taylor Made Golf and CCM, a hockey equipment and manufacturing company, so that presents additional options and opportunities for us as we go forward, and everybody understands that Adidas is a global leader in soccer, and indeed a major player in Olympic sports internationally more so than any of the competitors out there, and that was also a very critical factor in this new partnership. So, the bottom line is that it is a uniquely comprehensive deal, a real value to Sun Devil Athletics and ASU as a brand. We are very appreciative of the partnership because what we saw in this opportunity was an investment partner, a partner who realized our current value now, but also a partner who was able to share our vision and project how we would be valued and how our brand would be perceived two, three, four, five, six years from now. The folks at Adidas was aggressive and creative in really capturing that vision. Mark (King) and Jim (Murphy) and Chris (McGuire) and Abby, we really thank you for being willing to step up and be that kind of partner and that kind of partnership. We really appreciate it. We think this is a new time for Sun Devil Athletics and ASU, and we couldn’t be more proud of today. Greg McElroy will quarterback and coordinate this relationship first and foremost. Greg, as you know, came to us from the Dallas Cowboys. He’s our Chief Business Development Officer – very critical in getting us to this point. I’ll turn it over to Greg to lead the rest of the session and then introduce our guests.”
Greg McElory, Associate VP, Chief Business Development
Opening Statement:
“Thanks, Ray. This truly is an exciting and historic day for Arizona State University and Sun Devil Athletics. We couldn’t be more thrilled to have Adidas as our official partner. It really is a great day. I’m excited to introduce – as Ray mentioned there are several people who have worked really hard to get this deal done, and I’d like to introduce them now. First up, Abby’s going to be working with us day to day with Scottie Graham, Mark Zimmer, and the all the 23 sports that we represent here at ASU to make sure they get the best service possible and make sure they look great in their uniforms. Jim Murphy, who I worked really closely with getting this deal done – Jim’s head of Adidas-NCAA relationships in business, and he’ll continue to work very closely with me in the future. Then, we have Chris McGuire, who’s Head of Sports Marketing for Adidas. Chris was very instrumental in getting this deal done – kind of got the ball rolling way back when and was really efficient in giving us everything we needed to make the decision, so thank you, Chris. Then, finally, the President, Mark King who I’m going to introduce and he’d like to say a few words. Mark, thank you so much for putting this deal together with us. We’re really excited. Take it away, Mark.”
Mark King, Adidas Group North America President
Opening Statement:
“Thank you, Greg. First of all, I’m the only one who didn’t work hard on this deal. I’ve bought two dinners for these two guys on the right, and that seemed to be enough to put it over the edge, so I did my job. I would say this – I’m relatively new. Not with the Adidas group – I’ve been with the Adidas group for 16 years. I’ve been responsible for the Taylor Made business in Carlsbad. (I) Took over the North American Business in June, June 1st. Greg McElroy started June 2nd and I started June 1st, and actually, Ray’s (Anderson) only been on the job a little longer than that. When I first started, the opportunity came to start to talk about expanding our presence in North America and really authenticate our brand. Brands really look for associations through great athletes and great partnerships with people who can tell our story. When this opportunity first was presented by Chris (McGuire) and Jim (Murphy), it was really an incredible opportunity for us to be in this part of the country, in this conference at the highest level of sports performance. Then, Ray’s vision for growing the score of athletics here into different categories – I think some were around 20 or 21 sports, and adding to 23 or 24 and going beyond that. What we are very proud of at Adidas is not just that we’re in the core sports or the big sports of football, basketball, baseball, but we’re trying to be in all sports and be really authentic to athletes no matter what their passion is or what they’re good at. Walking through the front lobby and seeing all the different sports that you’ve won National Championships at – archery, badminton, all these sports that maybe don’t get the national exposure, but those are athletes. I have two daughters who played softball. One is done and one is currently playing, so I know the thrill as a parent to watch your kid play sports, especially at the highest level. This is the kind of association and partnership that we’re looking for because we don’t want to just hang our banner here and provide products for you. We want to experiment and do things and help really make the experience here at Arizona State the kind of athletic experience that any kid would want. We can do our part to make that a little better offering for you. That’s what we’re all about. So, we’re about experimenting and doing different things and bringing new ideas not only to the gear, but how we present it. This is a thrilling moment for me personally. This is like my first deal. I’ve only been having dinners and lunches for seven months, so actually I’m a part of something. At the end of the day, relationships and partnerships are only about the people, and the people here are truly committed to the university first, the athletes that represent the university, and their partners, and we’re really, really proud and excited to be considered a partner of yours. Thank you very much for the opportunity.
Ray Anderson, Vice President of University Athletics
On the process and what they were looking for when signing with Adidas:
“We had another partner and that deal was expiring and it gave us an opportunity to reset and look at the market across the board. To be able to sit and articulate with each of the competitors what our vision was for ASU and Sun Devil Athletics – how we saw ourselves, not just today, but where we were going – what this university stands for, what the Sun Devil Athletics stands for, not just now, but going forward. We were very appreciative that our good friends at Adidas saw what we saw. The deal is structured and reflects the fact that we anticipate success going forward. It was an opportunity and timing that Greg and I were very fortunate to come in at a time where the original deal was expiring. It gave us an opportunity to say, ‘Well, do you automatically look at it and renew it? Do you automatically stay with it because you’ve been there? Or do you take an opportunity to see what others feel about you?’ Fortunately, our friends at Adidas felt positively enough about us to make this day a reality and the partnership is just going to get stronger as we go.”
On how drastic the changes on the field will be:
“I don’t think drastic will occur. We will do it deliberately, very appropriately, hopefully very artistically. It will be a combination of their (Adidas) input and ours. At the end of the day, we are the customer, they are our uniforms, and this is our tradition. That will be something that is done very carefully, very strategically, but there will not be anything drastic.”
On the feedback received from fans and what message he would have for them:
“We have been getting some feedback and most has been very positive. Some fans are apprehensive when you change. Part of what we are trying to get fans to understand is that this is a business and it takes real, dedicated partners with financial wherewithal and the willingness to help you financially, run that business and more importantly, advance that business. With Adidas, as Greg said, being aggressive and creative in helping us to advance ourselves as an athletic business, that is what we need to do. At the end of the day, we want a better experience for our student athletes and our coaches and our fans and that takes investment. We have more investment now with these new partners (Adidas) than we ever had before. Someone mentioned we are one of the top 10 deals nationally in terms of our partner’s ability and willingness to step up and help us advance Sun Devil Athletics to a place where it has never been before. That is what we hope our fans will appreciate and respect about this new decision. It is because it makes us a better program currently and potentially going forward. That is what our responsibility is.”
On the state of the pitchfork and Sparky with specifics about football:
“We own Sparky. We own the trademark license to everything about Sparky and Sun Devil Athletics. That does not go away. That does not belong to anybody but ASU and Sun Devil Athletics. With regard to football, I can say the same thing about all of the other sports – it is going to be an upgraded experience. One of the things in football is Tim Cassidy, who is our Senior Associate Athletic Director of Football operation, actually was involved at Texas A&M and Nebraska where Adidas has been their partner for years and can really vouch for the quality of the product, the service, and the relationship. That was something that we also took into consideration and was really happy to hear that. Tracy Smith in baseball at Indiana had a relationship with Adidas as well. It is part of our due diligence. We came away very satisfied that this relationship across the board would make us better in so many ways. The quality, the service and the commitment of making us elite, important and special was front and center. There was no question in our minds after the process in terms of the relationship going forward. There was no better partner for us in this space whatsoever. That will make it a much richer and rewarding experience for anybody associated with ASU and Sun Devil Athletics.”
Greg McElroy, Associate VP, Chief of Business Development
On the process and what they were looking for when signing with Adidas:
“I would just like to add that when Ray (Anderson) and I sat down and tried to figure out a strategy for moving forward and what we would want with the new partner, we set our goals very high. We are going be very aggressive and that is the kind of approach that we are going to take with all of our deals that will be coming up in the future. Adidas did step up. Ray and I set the bar pretty high. Once again, thank you, Adidas.”
Mark King, Adidas Group North America President
On the difference of being a licensed Adidas school compared to schools that receive products from Adidas:
“I think there are different levels of partnerships as we look across the horizons of universities. Some stand for what you want to stand for and Arizona State would be that. It is the highest level, its performance, its competition, and its winning championships. A licensed deal for us is there is money involved, as well as the ability to sell jerseys and branded materials. It is a real business partnership in how we grow, and we provide all of the gear here. Some of the smaller colleges, we offer products and they have to pay for them. This is a pretty comprehensive one (deal), it is expensive, but it is very much worth it because the way you are able to represent your brand.”
On the feedback received from fans and what message he would have for them:
“I would like to add one thing to that. Our perspective is the people that are the most important are the athletes and the people that are out on the field competing. The second most important thing to us is the universities and the people we partner with. Our role is not to have any demands on what uniforms look like, or the way we present ourselves. It is very much in concert with Ray’s (Anderson) vision, the coaches’ vision, how it fits in. I will give you an example – I ran into the two ladies that run the golf program and they have had a long-standing relationship with Ping, and we respect that very much. If we can do something to augment the golf program here, both the men’s and the women’s, we would love to do that. We are in the background, and as Arizona State wins championships and as these athletes perform at the highest level, we have the association, which is really our role here. It is to provide great products and services and take a lot of the anxiety out of outfitting thousands of athletes. We take on that responsibility. We win by our association with an outstanding institution. We are in the background on this. This is not about Adidas as much as it is about helping this institution compete at the highest level of competition.”
On what value he sees in this deal that the competitors might not see:
“It is a complex answer for me. The first thing we saw was Ray’s (Anderson) passion for the university and sport – not just the big sports but all sports, which was very important to Adidas. One of our competitors doesn’t offer products in many of the categories, so for us, Ray’s passion for building the size of the athletic program was important to us. Secondly, we believe that the future of athletics here is on the rise because of the people we met, their ability to recruit, and if you look at the performance across all of these sports activities, to win in these activities was really important to us. Where it is nationally, we wanted somebody in the southwest and wanted somebody that could compete at the highest level. Yes, we have UCLA, but this is important to us that we have somebody in Arizona and down in this part of the country. At the end of the day, it was about any other relationship. When you meet, you figure out if these are the people you want to hang out with. Do we want to build our brand with these people and do we share the same values around sport, competition, learning, etc.? At the end of the day, for me, it was about the people. This is one of the great institutions and athletic institutions. Also, there are a lot of kids here. We get to tell our story to 88,000 kids roaming around these four campuses. We like that a lot. I think there is great value here on many levels.”