Usain Bolt
A five-year, multimillion-US-dollar deal reportedly offered to sprint sensation Usain Bolt by a Chinese company could also allow the athletics superstar to eventually spin off his own division of the firm.
The company in China is also reportedly willing to buy out any entity with which Usain might have agreements, and would supersede them in base salary while offering a licensing deal that Bolt currently does not have. If Bolt agrees to the deal, it could be signed in a matter of weeks.
Bolt is currently signed to sporting goods maker Puma AG, which reportedly pays the world record holder in the 100- and 200-metre sprints and triple World Championships gold-medallist about US$1.5 million a year. Puma CEO Jochen Zeitz recently disclosed that, after his success in Beijing in 2008, analysts estimated Bolt's media market value to be about US$358 million. The media market value is equivalent to what the company would have to spend to get similar exposure from regular advertising.
A big change
The Chinese deal, which offers Bolt licensing rights inside China and exclusive distribution rights in markets outside that country, is being negotiated by Anza Marketing Group Inc, the exclusive marketing agent in China for the triple Olympic champion. Ajani Williams is the CEO of Anza.
"Anza, through its work over the past eight months, has received several offers, and most notably, two major offers, one of which would eventually change the landscape for Usain Bolt in terms of his sponsorship and endorsement market rate. It would change the landscape of track and field, it would change the outcome of his life, and probably even the direction of the country," Williams said of the proposal on the table, adding that Anza had a counteroffer that could double the sum mentioned.
Shortly after Anza became Bolt's agent in China, just under a year ago, it began talking to partners in the Chinese company about possible deals. This monster deal, however, came together about eight weeks ago, Williams revealed, adding that the negotiations were difficult given the worldwide economic downturn.
Tipping point
Bolt's performance in Berlin, where he broke two world records and won three gold medals, was the tipping point, he said.
Williams was unable to disclose the name and nature of the company, citing the risk of compromising the integrity of the deal, but gave the assurance that if Bolt signed, then those details would be made known. He did reveal that conservative valuations show that Bolt could earn around US$115 million from the deal over five years, but there was the potential to exceed US$300 million, based on sales in China and the world market.
"China is the world's largest market and these kinds of deals were not available to people like Michael Jordan 20 years ago," Williams explained. "Usain now has the chance to be empowered and empower a new generation of track and field athletes and all athletes and become the CEO of his own empire."
He said an athlete of Bolt's calibre has to capitalise as much as possible on licensing deals, along with guaranteed base-salary endorsement deals. It also gives the triple Olympic gold medallist the opportunity to use this new deal to leverage similar deals, which would force companies to adjust their current market rates.
In recent times, Chinese sporting-goods companies have signed several major sporting stars, including basketball stars Shaquille O'Neal and Baron Davis. Just this year, Russian pole-vaulter Yelena Isinbayeva was signed by Chinese sporting goods company Li Ning to a deal worth about US$1.5 million a year.
Bolt is also being offered a deal worth between US$200,000 and US$400,000 a year from another company, sina.com, which Williams describes as the Chinese version of Yahoo. The site hosts one of the biggest sports blogs in China. Basketball stars like Kobe Bryant reportedly earn as much as US$400,000 a year just for posting blogs there, Williams said. He added that blogging on the site would help Bolt keep his brand relevant in the Chinese market, establish his value, and set him up for many more deals.
Anza has received several offers and most notably, two major offers, one of which would eventually change the landscape for Usain Bolt in terms of his sponsorship and endorsement market rate. It would change the landscape of track and field, it would change the outcome of his life, and probably even the direction of the country.
Ajani Williams
CEO of Anza
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