Arkansas Sports 360 - ArkansasSports360.com

7/28/2010 at 5:30pm

FAYETTEVILLE — IMG Worldwide Inc. began a major shakeup in collegiate sports marketing, announcing its intention to purchase ISP Sports. Locally, the move is expected to have little effect on day-to-day operations for Razorback Sports Properties, the ISP affiliate for the University of Arkansas.

IMG Worldwide, a global sports, entertainment and media company, said Wednesday it is buying ISP Sports, a U.S. college media rights management company that broadcasts and holds advertising rights to Razorbacks sporting events.

In a news release, IMG said the two companies have approved and signed "a definitive purchase agreement." Neither company disclosed financial terms. Razorback Sports Properties (RSP), the local division of ISP, would be included in the sale.

RSP general manager Ryan Gribble said he expected "that operations internal and external will not change. We're excited about the opportunities this presents." Arkansas athletic director Jeff Long said the school's 10-year, $73-million agreement with ISP "remains intact and we look forward to continuing to work together to grow our relationship and our brand.”

National Sales Prospects
By purchasing ISP, IMG will add 60 college sports properties to its already large lists of collegiate clients. IMG's roster of clients include five of the top six sports marketing deals in college athletics, including Ohio State and Texas, plus deals with the NCAA and conferences including the SEC.

While day-to-day operations likely remain untouched, Gribble sees additional sales opportunities for the Razorback brand on a national level. ISP is entering its third season of  a $73 million, 10-year agreement with the Razorbacks.

"This gives us a national portfolio," Gribble said. "It gives us the opportunity to do things no company in college sports has the opportunity to do before.

"If anything, this allows us to market the Razorbacks on a much larger scale."

Arkansas' Lucrative Deal
ISP of Winston-Salem, N.C., has marketing agreements with 60 college athletic programs including Alabama, Auburn, Duke, Georgia, Notre Dame, UCLA and Virginia Tech. Arkansas' agreement stands among the Top 15 most lucrative college media rights deals in the country.

The deal, signed in 2008, was among the first major initiatives of Long, and represented a 67 percent increase in the yearly media revenue the university received in 2007, when UA football and basketball games were broadcast by Little Rock ABC affiliate KATV-TV, Channel 7's Arkansas Razorbacks Sports Network.

“We are looking forward to continuing our multi-media rights partnership with the new IMG College Sports Division,” Long said. “With the merger of these two nationally respected companies, the University of Arkansas will maintain its relationship with the premier multi-media rights holder in intercollegiate athletics."

IMG said ISP would be combined with IMG's existing college sports group, which provides marketing, licensing and media services to universities. Operations will be moved to Winston-Salem, N.C., formerly home of ISP.

ISP CEO and founder Ben Sutton will be president of the new operation. Long said he has a long-standing relationship with Sutton.

"I am pleased he will continue to serve as the president of the combined venture," Long said.

Haves and Have-nots
Nationally, the number of similar companies is dwindling. CBS Collegiate Sports Properties, Learfield Sports and Nelligan Sports Marketing represent the few remaining major players.

Dr. Steve Dittmore, assistant professor for sports management at the University of Arkansas, wonders if the dwindling competition is a good thing. Essentially, this is another step toward dividing the 'haves' and 'have nots' in college athletics, he said.

Five of top six deals in college sports marketing were with IMG, according to a March 2009 article in Street & Smith’s Sports Business Journal. Georgia was the largest ISP deal at $92.8 million over eight years.

"What you have the potential to do here is create more division between the BCS schools and the others," Dittmore said. "It will become more difficult for an Arkansas State or UALR to sell their rights. That could hurt schools at that level."

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 More on the ISP deal with the Razorbacks here.

Tagged: Arkansas Razorbacks, ISP Sports, Razorback Sports Properties, Ryan Gribble, Jeff Long