University sells media rights as package

IMG College will control everything but apparel and local television
By Trevor Calero
Daily Staff Reporter  On  August 8th, 2008

The University announced Monday the sale of its media rights to IMG College.

The deal, which guarantees the University $86 million over 12 years, marks the first time the University has bundled its media rights into one package.

IMG College will control nearly every aspect of marketing the Athletic Department except for apparel, which will still be handled in-house, and local television, the rights of which are owned by the Big Ten Network.

Jason Winters, the Athletic Department's chief financial officer, said IMG College would be better suited to handling the University's media rights.

"IMG, given their strength and experience and resources, could do a better job than we ever could do," Winters said.

Winters said this has been the goal for a long time.

"We've been eliminating a lot of those deals so it is controlled by one company," Winters said. "IMG will be the sole presence in the marketplace."

Michigan is just one of the many elite college athletic programs lately to combine its media rights package.

Tom Stultz, senior vice president and managing director of IMG College, said many of the major universities are making the move to outsource their media rights.

In addition to Michigan, IMG College currently controls the media rights of Florida, Oregon, Nebraska, Texas and many more.

Stultz said schools are leaning towards outsourcing their media rights because it can generate more revenue.

"We have access to national sales resources that the University wouldn't have," he said.

IMG College will control publications, hospitality, coaches' TV and radio shows, the Internet, corporate sponsorships and more for the University.

Stultz said he believes that by bundling those rights together it will make it easier for sponsors and advertisers to work with the University, which previously had to contact multiple companies regarding each aspect of media rights.

"Now if you call us, we'll talk to you about the whole package," Stultz said.

One of the main issues the University was concerned with was protecting the integrity of its sports facilities, especially the Big House, Stultz said.

"The University is very protective of the game atmosphere in the Big House," he said. "We need to find ways to meet sponsors' needs that is consistent with what the University is willing to accept."

Stultz said they will work with sponsors to make sure signage is kept out of the Big House.

"We know that it's in (our) best interest to respect the traditions of the University," he said. "We work with the universities to make sure what we do pleases them, to make sponsors and fans happy."

Stultz said they were hoping to add Michigan to their list of elite college athletic programs that they handled from early on in the relationship.

"That was our goal," he said, "to try to win the confidence of the University and do a great job and be willing to let us handle more of the rights."

Printed from www.michigandaily.com on Wed, 07 Jan 2009 16:53:07 -0500