Steinberg continues to market UH sports

By Ferd Lewis
Advertiser Staff Writer

The University of Hawai'i has renewed its marketing agreement with sports agent Leigh Steinberg's firm for another year, but says it will have to be "shown the money" if the controversial partnership is to continue beyond that.

UH officials said the extension will give Herman Frazier, the athletic director designate, time to evaluate the deal with Steinberg & Moorad and determine if the school should pick up an option to continue.

Frazier is scheduled to begin at UH Aug. 1.

"We need to evaluate this pretty closely," said Paul Costello, UH vice president for external affairs. "We need to see if the return on the investment is appropriate. That is the question before Herman Frazier — and they need to show him the money."

Steinberg was the model for the title character in the movie "Jerry Maguire," in which an athlete spoke the memorable line —"show me the money" — to his agent.

Steinberg, who said the relationship produced $1.7 million in sponsorships this year, said: "We're very excited and (are) looking forward to working with the new athletic director. This year has been record-breaking in terms of revenues and we think next year can only get better."

UH officials said they expect to realize $750,000-$900,000 in cash and perhaps $200,000-$250,000 in trade for the just-completed fiscal year after the final accounting.

UH, which disbanded its own marketing department in 1999 as part of cutbacks to address a $1 million deficit resulting from the 0-12 1998 football season, initially contracted with Steinberg in 2000. That deal drew criticism because Steinberg also represents football coach June Jones.

Steinberg & Moorad negotiated Jones' initial five-year, $320,000 contract and Steinberg represented Jones in talks with UH over a five-year renewal until Jones halted discussions in February.

Under terms of the marketing extension, UH would have an option to negotiate a renewal of the contract between Jan. 1, 2003 and Feb. 28, 2003. UH is to pay Steinberg's firm a $150,000 service fee and underwrite up to $325,000 in operating expenses.

For that UH is to receive 70 percent of revenues between $1.3 million and $1.5 million and 60 percent of revenues beyond that, according to school officials.

Steinberg & Moorad has three full-time representatives in Hawai'i and is backed by three more in its California headquarters, a company spokesman said.

UH also has a five-year consultation contract with Steinberg & Moorad that is entering its third year.

Steinberg said Jones plans to fulfill the final two years of his contract "and it is his desire to continue the work and success of that program."