Comments on: Squeezing Til The Sponge Is Dry… http://joefavorito.com/2009/10/14/squeezing-til-the-sponge-is-dry/ Sports Publicity, Marketing and Brand Building in a New Age Sun, 07 Mar 2010 23:26:07 +0000 http://wordpress.org/?v=2.9 hourly 1 By: Dave http://joefavorito.com/2009/10/14/squeezing-til-the-sponge-is-dry/comment-page-1/#comment-32004 Dave Thu, 22 Oct 2009 00:47:27 +0000 http://joefavorito.com/?p=972#comment-32004 Today SpongeTech signed a sponsor deal with the Cleveland Cavaliers. The Cavaliers did so, and too the SspongeTech monies, at a time when the SEC is seriously looking into this being a company whose foundation is cooked books. I wonder, where are corporate ethics when big name sports venues may be accepting monies taken from victims to help precipitate the fraud? If what the SEC alleges is true, the money spent on these sponsorships is money stolen from innocent investors and the advertisement is, in itself, being used as the venue to act out the con. Spongetechs sales are in question and the companies share structure and how shares are being sold are in question and yet major sports venues continue to take this money and advertise not only the company name but the stock symbol used to bring in new and unsuspecting investors. Today SpongeTech signed a sponsor deal with the Cleveland Cavaliers. The Cavaliers did so, and too the SspongeTech monies, at a time when the SEC is seriously looking into this being a company whose foundation is cooked books.

I wonder, where are corporate ethics when big name sports venues may be accepting monies taken from victims to help precipitate the fraud? If what the SEC alleges is true, the money spent on these sponsorships is money stolen from innocent investors and the advertisement is, in itself, being used as the venue to act out the con. Spongetechs sales are in question and the companies share structure and how shares are being sold are in question and yet major sports venues continue to take this money and advertise not only the company name but the stock symbol used to bring in new and unsuspecting investors.

]]> By: Ryan Dupuie http://joefavorito.com/2009/10/14/squeezing-til-the-sponge-is-dry/comment-page-1/#comment-31862 Ryan Dupuie Tue, 20 Oct 2009 19:33:24 +0000 http://joefavorito.com/?p=972#comment-31862 Joe- As an avid sports fan, as well as a student aspiring to a career in sports PR or business, I was happy to find your blog as it seems that your expertise in sports marketing, etc. offers relevant and import discussion regarding the sports world today. You bring up a very significant point in this post regarding the impact of sponsorships in professional sports. With the economy in the state that it is, professional sports organizations have seen a change in the amount and quality of sponsors. What seemed as a time where there was “exponential growth in sponsorship,” because of the growing popularity of professional sports, you noted that professional leagues were able to keep “many categories [of products] that wanted in… deemed to be outside of a category that was acceptable” out of the sponsorship picture. However, as you pointed out, the economy has caused many “financial cutbacks in brand activation… with it came a loosening of many categories once outside of the realm.” Allowing for companies, such as Spongetech and Cash for Gold, to get their place in the mix of what used to be an exclusive type of sponsor “club.” I believe the impact of this can be detrimental to the image of these professional organizations, as you stated, “if it turns out that fans are lured to a questionable brand because of their alliance with a team, and that passion or ‘implied endorsement’ turns into a tragic money loser for those fans, are the teams morally responsible?” I think that this poses a significant problem that could play out within the next few years. Moving forward, do you think this could potentially become a bigger problem for professional sport leagues, such as the NFL, MLB or NBA? With organizations desperate for monetizing their assets, we may see even more companies similar to the quality or stature of Spongetech fill up the available advertising space. Also, do you think that, with sponsors’ logos starting to be placed in new places like helmets and jerseys, leagues like the NFL, MLB or NBA will start to look like NASCAR, where every spot except the windshield has a sponsor slapped on it? I enjoyed reading your post and am glad I came across your blog. This is a very interesting and important topic of discussion and could have a huge impact on the future of professional sports as we know it. I look forward to your future posts. Joe-
As an avid sports fan, as well as a student aspiring to a career in sports PR or business, I was happy to find your blog as it seems that your expertise in sports marketing, etc. offers relevant and import discussion regarding the sports world today. You bring up a very significant point in this post regarding the impact of sponsorships in professional sports. With the economy in the state that it is, professional sports organizations have seen a change in the amount and quality of sponsors. What seemed as a time where there was “exponential growth in sponsorship,” because of the growing popularity of professional sports, you noted that professional leagues were able to keep “many categories [of products] that wanted in… deemed to be outside of a category that was acceptable” out of the sponsorship picture. However, as you pointed out, the economy has caused many “financial cutbacks in brand activation… with it came a loosening of many categories once outside of the realm.” Allowing for companies, such as Spongetech and Cash for Gold, to get their place in the mix of what used to be an exclusive type of sponsor “club.” I believe the impact of this can be detrimental to the image of these professional organizations, as you stated, “if it turns out that fans are lured to a questionable brand because of their alliance with a team, and that passion or ‘implied endorsement’ turns into a tragic money loser for those fans, are the teams morally responsible?” I think that this poses a significant problem that could play out within the next few years.

Moving forward, do you think this could potentially become a bigger problem for professional sport leagues, such as the NFL, MLB or NBA? With organizations desperate for monetizing their assets, we may see even more companies similar to the quality or stature of Spongetech fill up the available advertising space. Also, do you think that, with sponsors’ logos starting to be placed in new places like helmets and jerseys, leagues like the NFL, MLB or NBA will start to look like NASCAR, where every spot except the windshield has a sponsor slapped on it? I enjoyed reading your post and am glad I came across your blog. This is a very interesting and important topic of discussion and could have a huge impact on the future of professional sports as we know it. I look forward to your future posts.

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