Bonds's Steroids Taint May Cost Him $10 Million in Endorsements, By: Danielle Sessa

June 1, 2007

The day Barry Bonds becomes baseball's home-run king will be like any other in terms of his commercial appeal. He'll still be one of the least-liked professional athletes in the U.S., according to a fan survey.

Companies that hire athletes to endorse products are avoiding Bonds amid reports that the San Francisco Giants outfielder used steroids -- reports he denies. Bonds needs 10 more home runs to pass Hank Aaron's 755 for the most in history, yet fans are questioning whether his feat has been aided by illegal performance-enhancing drugs.

The steroids taint combined with his public persona -- he avoids most contact with fans and shuns the media -- may cost Bonds as much as $10 million a year in potential endorsements, said Steve Rosner, co-founder of 16W Marketing LLC, a sports marketing firm in Rutherford, New Jersey. He says Major League Baseball also is missing an opportunity to promote the passing of its most revered milestone.

``Based on the cloud that hovers over Barry from all the accusations, I think it not only hit him personally, but the game of baseball as well,'' said Rosner, whose firm represents baseball Hall-of-Famer Cal Ripken Jr. ``This would have been a great opportunity for the game itself to wave the flag about their sport.''

Seven-time All-Star Derek Jeter of the New York Yankees is making about $7 million in endorsements this year, according to a Sports Illustrated survey, while 2005 Most Valuable Player Albert Pujols of the St. Louis Cardinals is making $3.5 million.

No Sponsor

Baseball hasn't signed any of its 19 national corporate partners to sponsor Bonds's home run chase.

Bonds declined to talk about the home run record before the May 30 game against the Mets in New York and limited his comments to that night's game. His marketing agent, Jeff Bernstein, declined to comment.

Bonds, 42, has been at the center of baseball's steroids scandal since the San Francisco Chronicle reported in 2004 that he told a grand jury he unknowingly used performance-enhancing drugs. Bonds's trainer, Greg Anderson, and four other people connected with the Bay Area Laboratory Cooperative, or Balco, were convicted of illegal distribution of steroids. Anderson has been jailed for refusing to testify about whether Bonds and other athletes lied about their drug use.

The Chronicle article killed negotiations between Major League Baseball and MasterCard Inc. on sponsoring Bonds's chase of Aaron in 2005, when he was 52 home runs away from the record, said Bob Cramer, who was then MasterCard's vice president of global sponsorship.

`Looking at Risks'

``We were looking at the pros and cons and risks -- and thankfully that was right before the Balco thing exploded -- that made our decision for us,'' said Cramer.

Companies are pulling away from athlete endorsements because of the risks, said Matthew Pace, head of the sports business practice at Duval & Stachenfeld LLP, a New York-based law firm. With Bonds, the risks are greater.

``Corporate America is running away from Bonds,'' he said. ``They are afraid.''

Bonds already holds the sport's single-season record of 73 home runs and has won a record seven Most Valuable Player awards. He has deals with Fila USA Inc. to wear its baseball cleats and Franklin Sports Inc. to wear its batting gloves. He also has agreements with several sports memorabilia companies. He's making about $2 million in endorsements this year, according to Sports Illustrated.

Bonds is currently the third least-liked professional athlete, according to Marketing Evaluations Inc. of Manhasset, New York. Only professional basketball's Ron Artest, who was once suspended for 73 games for inciting a brawl with fans in the stands, and pro football's Terrell Owens, who has criticized teammates and management, have a lower rating. The results are from an April survey of 2,000 sports fans ages 12 to 64.

`Marketable'

``If he were more likeable, he would also be a lot more marketable,'' said Wally Hayward, chief executive officer of Chicago-based Relay Worldwide, who represented Sammy Sosa when he played for the Chicago Cubs.

Bonds got some national sponsorships after he set the single-season home run record in 2001. He appeared in television commercials for Yum! Brands Inc.'s KFC and Charles Schwab Corp.

In the Schwab commercial, Bonds stands at the plate hitting balls in an empty ballpark, alone at night. A voice whispers throughout the stadium beckoning Bonds to retire and stop pursuing the career home run record. Aaron is revealed as the man behind the voice.

Schwab isn't interested in reviving its relationship with Bonds because the company has moved away from celebrity endorsements, said spokesman Glen Mathison.

Bonds was difficult to promote even during the early part of his career with the Pittsburgh Pirates, said Bernie Mullin, the Pirates' senior vice president of business from 1986 to 1991 and now president of Atlanta Spirit LLC, owner of Atlanta's pro basketball and hockey teams.

``It's very hard to market someone who by his own actions and the way he's approached fans, sponsors, the media over the years led to the reputation he has,'' said Mullin. ``Major League Baseball is in a very difficult position.''