UH extends The University of Hawaii and Steinberg and Moorad have agreed to extend their marketing agreement for Rainbow sports for at least one more year.
marketing contract
Steinberg's company helped
UH inks pay TV sports deal
the school reach record revenue
numbers last yearBy Dave Reardon
dreardon@starbulletin.comTwo years ago, the company owned in part by sports agent Leigh Steinberg and the university made a five-year deal -- renewable annually as long as both parties agree -- to help UH raise money through marketing, promotions and advertising.
"We've renewed for another year," Steinberg said. "The past year was hallmarked by record-breaking revenue."
Steinberg said money generated by marketing increased to $1.7 million from $1.3 million in the first year of the deal. He said it was at $800,000 the year before the contract.
UH netted close to $1 million through the deal in cash last year, plus "six figures" in trade, associate athletics director Jim Donovan said.
"They continue to do a good job for us," Donovan said. "The people from his staff here in Hawaii have been great to work with. They're sensitive to what needs to get done."
"I totally agree with that decision for right now," said Herman Frazier, who becomes UH's new athletics director on Aug. 1.
"If it weren't renewed we'd have to be out looking for marketing people right now, and there's not enough time to be doing that with football starting at the end of next month."
Steinberg's company signed a consulting deal with UH in April 2000 for $100,000 per year. The company also gets half of anything generated beyond $700,000.
The deal has received criticism on two fronts.
Some say it cuts into a limited pie of corporate promotional money that UH was getting anyway. Also, Steinberg negotiates with UH as the agent of football coach June Jones, creating the appearance of a conflict of interest.
Steinberg tried to renegotiate Jones' $400,000-a-year contract after last season, but the talks broke down in February. There are two years left in Jones' five-year deal, but he has an escape clause.
"We're not currently active in negotiations, but we're certainly open to listening if the university approaches us," Steinberg said. "Three things to remember are that June is happy, he's under contract and he foresees staying at Hawaii for the long term."
UH Athletics
