Posted on: Friday, March 7, 2003
State seeks better Pro Bowl deal
By Curtis Eichelberger
Bloomberg News Service
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| The Aloha Stadium parking lot was packed less than two hours before the start of the 2002 NFL Pro Bowl. The annual game usually draws a full house.
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The Pro Bowl is scheduled for the island each February through 2005. NFL executives will propose a three-year extension at the league owners meeting in Phoenix March 23-26.
Both sides want to establish a year-round marketing relationship and agree they must do a better job promoting the game, with no plans to move to another site. The state, however, wants to reduce the $5 million annual subsidy it pays the league, a cut that the most popular American sport opposes.
"They have no understanding of the power of the NFL," said Jim Steeg, the league's senior vice president of special events. "Companies pay millions to use our logo. They've had it for 24 years and haven't taken full advantage of it."
Rex Johnson, executive of the Hawai'i Tourism Authority, said the state wants to use its NFL relationship to attract more business travelers for conventions and other meetings.
"The goal is to tie the two most visible brands in sports and vacationing together," he said. "It's a weeklong celebration, and we want to make it a year-round event."
This year's Pro Bowl drew 18,000 out-of-state visitors to Hawai'i, up from about 16,000 last year, according to a survey by Johnson's office.
Those visitors spent $23.8 million on products, services and entertainment, accounting for $2.32 million in state tax revenue, the survey said.
The NFL, in turn, uses the resort location to try to persuade players to participate in the game, the last event in a season that begins with training camp in late July. Even with the surge in business surrounding the game, the state said the subsidy is too high, and Johnson said it must either reduce the cost or find a sponsor to help pay.
Any naming-rights sponsorship likely would involve an event or activity at the Pro Bowl, rather than renaming the game itself.
The current agreement calls for Hawai'i to pay the NFL $5.38 million next February and $5.75 million in the final year of the contract. The money pays for sending NFL players and administrators to the game and other league expenses.
The NFL is balking at giving the state a refund.
"We're not going to give them money back, but we may change the ways we make the money," Steeg said. "They haven't taken advantage of things like novelties and concessions and advertising on the stadium — it hasn't been pushed to the limit."
