http://www.usatoday.com/money/advertising/2003-04-30-yao_x.htm By Michael McCarthy, USA TODAY There's a giant bidding war shaping up for basketball's endorsement superstar du jour: Yao Ming. Nike has the 7-foot-5 Houston Rockets center under contract and is negotiating to keep him. But it has done little to market the 22-year old rookie into the next Michael Jordan, and rivals Reebok and Adidas are looking to snatch him. At issue: What's an ultra-familiar face worth to a sneaker maker? Nike made billions of dollars off the millions it paid Jordan over the years. But athletic shoe sales are slowly rebounding after several years of losses, and sports marketers are having a harder time justifying huge endorsement contracts. "Years ago it was like a nuclear arms race with everybody trying to find the next Jordan. Now it's the haves and have-nots," says Bob Williams, chief executive of Burns Sports & Celebrities. "Yao has not demonstrated an ability to move product. So companies will have to look at his potential and take a chance." Yao received an estimated $200,000 for his first four-year shoe deal with Nike, signed while still playing in the Chinese Basketball Association. Now agents for the newly minted National Basketball Association All-Star are looking for a multimillion-dollar, multiyear deal. While he's an unproven asset, marketers are drooling over his potential as a global endorser and passport to China, home of the 2008 Beijing Olympic Games. Its 1.3 billion consumers are crazy about basketball and view Yao as a national hero. "That's where his true value lies," Williams says. "There are so many companies that want to penetrate the Chinese market or capture more market share." In non-sneaker deals, Yao has co-starred with Yogi Berra in a Visa TV ad, he's traded quips with Austin Powers "Mini-Me" actor Verne Troyer in a spot for Apple Computer, and he recently signed with Gatorade. He'll likely pull down $3 million in endorsement bucks from his first season in the NBA, sport marketers say. But all is not perfect for Yao. His English is so-so. His team is out of the NBA playoffs. And he faces endorsement competition from LeBron James, the high-school sensation who declared on Friday he'll enter the NBA draft, and Los Angeles Lakers superstar Kobe Bryant, who's looking for a shoe deal after splitting with Adidas. It's also an adage in the sneaker business that big men don't sell shoes — that you need to fly above the rim like Jordan or Reebok endorser Allen Iverson. But with his winning smile and global appeal, Yao could be the exception. And the sneaker companies might be ready to spend again, given the rebound in sales of basketball shoes after years of falling popularity. Consumers spent $3.25 billion on basketball shoes in 2002, a 17% gain from 2001, according to the Sporting Goods Manufacturers Association (SGMA). Basketball styles' share of the $15.7 billion U.S. athletic footwear market rose to 20.7% in 2002 from 17.2% the year before. Details of the jump ball for Yao: Nike. The Beaverton, Ore., company still has the edge. The current pact has a "right to match" clause, and Nike can promise the biggest ad clout. Its marketing expertise helped turn Jordan into a global icon. Ralph Greene, Nike's global director of basketball marketing, says, "We hope to re-sign Yao, but won't make further comments on ongoing contract-renewal negotiations." Nike also is given the edge for Bryant. Adidas. Sonny Vacarro, the company's veteran dealmaker, says it will bid aggressively for Yao and James. It is creating a "plaster cast" of Yao's foot to "make sure he likes our products," he says. But he thinks James will land the most lucrative first-time shoe contract ever. And if Bryant also signs a lucrative shoe deal, Yao's negotiating position will be hurt, he says. "Whether the guy is national, international or interplanetary, there's just so much money. Somebody is paying the bills." Reebok. The No. 2 in the U.S. market sees "opportunity to grow in Asia and China," says John Lynch, vice president of sports and entertainment marketing. "Any player like Yao Ming that has the potential to grow our brands is somebody we're interested in."
