As a Cincinnatian, I am, by birth, a Cincinnati Reds fan. As today is the day that the Reds pitchers and catchers report to spring training, baseball is at least partly on my mind. As big as pitchers and catchers reporting might be to some of us, the biggest story in baseball right now is unquestionably the Albert Pujols situation.
For those of you who aren't that into baseball, Albert Pujols is the first baseman for the St. Louis Cardinals, and has been arguably the best player in the game over the past several years. His present contract expires after this season and, as he and his agent have expressed their unwillingness to discuss a new contract after noon today (February 16, 2011), their has been rampant speculation over whether or not the Cardinals and Pujols would reach an agreement on a new contract.
As of this writing, I don't know what the final request/demand made by Pujols and his agent was, but it is believed that they were looking for a deal that exceeds Alex Rodriquez's present deal of 10 years and $275 million. It has been reported that St. Louis' offer fell short of that, both in terms of years and average annual salary.
While I understand that individual players, their agents and the players association want another contract to exceed A-Rods' contract, in order to set a new bar, a 10-year contract to a 32 year-old player, after the steroid era, is a bad baseball decision. Apart from those who are at least suspected of using performance enhancing drugs, one would be hard pressed to find players that have put up numbers anywhere close to Pujols' current production when they hit their late 30's and early 40's. It is likely that such a contract would be viewed as foolhardy in its latter years, much as A-Rod's contract is starting to be viewed now, as his production diminishes.
This is not to say, however, that the contract would necessarily be viewed as a bad business deision for the Cardinals franchise. The presence of absence of Pujols certainly would make a difference in the revenue stream and, more importantly, overall value of the franchise. Additionally, a potential chase for the home run record, which is possible, would also add value. I don't pretend to be smart enough to run a major league franchise, nor do I know what the additional reveue and/or value would be, but I have to think that this plays into the negotiations with a player of this magnitude as much as, if not more than, on-field production projections.
Albert Pujols must also consider carefully how he wants to proceed, with a careful eye on himself as a brand. One needs to look no further than LeBron James. James was the most sought-after free agent in American sports history last summer. As a superstar playing for his hometown team, he was the face of the Cleveland Cavaliers franchise, and in fact, the entire region of northeast Ohio, and many speculated that he would sign the maximum deal available, which could only be offered by Cleveland. To do so would not only garner him the most money, but also almost universal admiration for sticking with his hometown team. After months of speculations, LeBron's announcement was turned into an ESPN special dubbed, The Decision. "The Decision" turned out to be that LeBron joined the Miami Heat with 2 other superstars. LeBron was criticiezed for both the decision itself, as well as, the manner in which it was announced. This harmed his reputation, or to put it into marketing terms, the LeBron brand. Sure, he still has plenty of endorsement deals, and a few championships will likely wipe away much of the tarnish, but that would not be necessary had he handled the situation differently, thereby protecting his brand.
The point is that a brand's worth is not just tied into it's "performance," like it's pizza tastes good, it's shoes feel good or it's cars run well. It is much more about the perceived worth of the total experience of identifying with, and ultimately buying the brand's product(s) or service(s). Marketing is all about making people feel good eough about the experience that they buy into it. How else can you explain the success of Starbucks, with coffees that cost upwards of $5?
With the ability to engage and interact with consumers in so many different ways than ever before, we, as marketers must pay even closer attention to the perception of the brand with our target customers. The placement, look, feel and overall messaging of every platform must be created wiht this in mind.
For my part, as a Reds fan, I hope the St. Louis Cardinals and Albert Pujols ignore this, and Albert takes his talents to the American League, or at least out of the National League Central Division.
Mike Norton
EVP
Norton Outdoor Advertising
