UH ends Steinberg
marketing contractA new unit will be formed
within the athletic department
The plan always was to remove the water wings.
Now the time has come for the University of Hawaii to swim on its own in the marketing ocean.
Yesterday it was announced that agent Leigh Steinberg and the UH athletic department had agreed to sever their marketing partnership after three years of record-setting revenues.
The Steinberg group, however, will remain a consultant to the athletic department. It has two years remaining on a five-year, renewable agreement. Steinberg also will continue as the agent for Warrior football coach June Jones.
"It was never our intention for this to be a long-term project," Steinberg said last night during a telephone call from California. "The concept was always to put a model in place and to have the university take back its marketing internally.
"In 2000, June Jones asked me to get involved with the athletic department to try to stimulate it, to expand the sponsorship base, and to bring in creative ideas, from a new logo to advocating an aggressive move into the Pacific Rim market. We feel really gratified that we've been able to increase the revenue by 2 1/2 times and have compiled a fairly incredible list of accomplishments in a short time.
"It's time to hand off the baton."
And UH athletic director Herman Frazier, a former Olympic relay team runner, is comfortable with the exchange. The next leg to be run will include reorganizing the athletic department's marketing unit under a newly created position of associate athletic director for marketing. A salary range has not been decided.
"We will conduct a national search and we hope to have someone named by July 15," Frazier said yesterday. "I'm sure the phone will start ringing off the hook now that this is announced. This is a good job and a very good place to work.
"We want someone who will help with marketing, coordinate with our TV package. The person will oversee the marketing unit and, as I see it, we'll have a marketing director on one end and a corporate salesperson on the other."
Steinberg, whose offices are in Newport Beach, Calif., has three full-time employees working at UH. Frazier said he would like to see the new marketing unit have four to six employees and that the current Steinberg hires will receive consideration for the new positions.
Frazier, completing his first year as athletic director, said he is confident the department is ready to go it on its own.
"As Leigh has said, we've reached our pinnacle for what they can do for us," said Frazier. "This is the University of Hawaii. That's our name, that's our brand, that's what we have to sell.
"We will continue some of the things that Leigh and his group have started and continue it in-house. What changes is we'll have more local involvement. This is a very positive step for us. We've had a great working relationship with Leigh and no question we got our money's worth."
Steinberg's annual consulting contract is for $100,000. The marketing contract was for about $350,000.
Revenues for the athletic department were estimated to have risen to $1 million-plus annually since 2000. The net gain, after Steinberg's marketing expenses, was between $750,000 and $800,000.
Frazier said that having in-house marketing will mean a savings of $300,000-$500,000 with the money going into the operating fund for the athletic programs.
Steinberg said the recent success of the athletic programs has increased UH's marketability.
"Hawaii has something very unique," said Steinberg. "June's success in football as well as the men's and women's basketball and volleyball teams has created a resurgence in the interest. This has greatly enhanced the sponsorship base and has gained many people who are excited about the athletic programs.
"I think the program is in really good shape and ready to go to the next level. It is ready to take its place in the very top echelon. It has been a wonderful partnership and my commitment remains strong with the consulting. Hopefully, that will continue for many years."
UH was the only university client of the Steinberg group. The group had previously worked with a number of universities and athletic conferences.
"The whole goal was to teach them (UH) how to fish, and now it's time to let them fish," said Jonathan Atha, the director of collegiate marketing for the Steinberg group. "We had discussed doing this last year, but with Herman just coming in the viability wasn't there.
"I think we've created a very sound program. Now it's a function of maintenance and creativity. We're ecstatic with where the program is, it's come so far from where it was. It's the perfect time for them to bring it in-house."
Frazier agrees.
"A few years ago, we weren't in a position to do what we are doing now," he said. "We probably weren't as marketable. But we've enjoyed a lot of success with our programs recently and this is part of us going forward.
"We will continue to pursue the Asian market, with television and selling our goods, such as hats and T-shirts. Leigh and his group will continue developing that plan as consultants. And, yes, the logo is here to stay."
Note: Steinberg said that negotiations for Jones' contract "were going well, but we're not finished with the discussions," he said. "It's clear from our discussions that we're going to be able to strike a deal and have an accord that will keep him there for a long time." Steinberg did not say when he expected a contract to be finalized. Jones is in the final year of a five-year contract. The Warriors have gone 30-21 since Jones took over in 1999.