Sport sponsorship and tobacco: implications and impact of Federal Trade Commission v. Pinkerton Tobacco Company
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ABSTRACT:
The number of companies involved in sport marketing has increased 500 percent since 1983, and Philip Morris ($75 million) and RJRNabisco ($40 million) are among the top in sponsorship spending. Today the union of sports and tobacco represents a multimillion dollar enterprise. Several criteria have been cited as necessary elements in sponsorship arrangements; these include corporate signage at the event, newspaper and television coverage, merchandising, and product samples. Recent litigation Federal Trade Commission v. Pinkerton Tobacco Company, may have substantially changed the rules of the sport sponsorship game. The Pinkerton ruling came about as a result of Pinkerton Tobacco's use of sporting events to advertise its "Red Man" brand smokeless tobacco. Specifically, the findings contained a "cease and desist" order outlining the methods used by Pinkerton that were in violation of FTC and FCC television and advertising regulations. The impact and possible implications for sport sponsorship that may result from this ruling are presented.
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