Sharapova Joining Enlyten vs. Gatorade War?
It was about a year ago that I covered a brand called Enlyten SportStrips. It's basically Gatorade on one of those strips you put into your mouth.
The
story got intriguing when the company alleged the NFL pushed them out
of a deal with the Buffalo Bills because Gatorade, the official sports
drink sponsor of the league, was worried about them. Enlyten then sued
Gatorade, alleging restraint of trade.
The
case is still in the discovery phase, but the startup company that
makes the strips, HealthSport, might be on the cusp of their first big
move against Gatorade.
Surprisingly, it has nothing to do with the lawsuit.
Sources
are telling CNBC that Maria Sharapova is close to signing a deal with
the company. HealthSport lost $3 million in the first quarter of 2008
and has a stock worth 12 cents, but the supposed deal would provide the
tennis star with up-front cash and a piece of the company that would be
worth more annually than the deal she had with Gatorade.
Gatorade
signed Sharapova to a two-year, worldwide deal in January 2007 that we
heard was worth about $900,000 a year. Sources say Gatorade tried to
extend that deal at a reduction, citing a rough economic environment
that forced its parent company PepsiCo cnbc_comboQuoteMove('popup_PEP_ID0ESG15839609');[PEP
54.85
-2.16
(-3.79%)
]
cnbc_quoteComponent_init_getData("PEP","WSODQ_COMPONENT_PEP_ID0ESG15839609","WSODQ","true","ID0ESG15839609","off","false","inLineQuote");
to cut 3,300 jobs last month. But Sharapova's camp instead looked to
Enlyten, whose only other major active star on their endorsement roster
is Washington Redskins defensive end Jason Taylor.
The
deal would enable Sharapova to help grow a company, get a piece of the
brand and also allow her do other drink deals. Her deal with Gatorade
also included rights to Tropicana and other PepsiCo brands.
In
2007, HealthSport projected sales to be as high as $10 million, due in
part to its SportStrips product. That potential was reduced when its
plans to market through NFL teams fell through.
Lending credence to Sharapova's possible move is the fact that Enlyten is planning on relaunching its Web site
on January 9, also coinciding with the launching of a new energy strip.
That would be one day after Sharapova's Gatorade deal was announced two
years ago.
Sharapova
made more than $25 million last year in endorsements and prize money,
making her the highest paid female athlete in the world. She has
endorsement deals with Nike cnbc_comboQuoteMove('popup_NKE_ID0EMEAC15839609');[NKE
50.64
-2.14
(-4.05%)
]
cnbc_quoteComponent_init_getData("NKE","WSODQ_COMPONENT_NKE_ID0EMEAC15839609","WSODQ","true","ID0EMEAC15839609","off","false","inLineQuote");
, Cole Haan, Prince, Land Rover, Canon cnbc_comboQuoteMove('popup_CAJ_ID0ENJAC15839609');[CAJ
32.18
-4.79
(-12.96%)
]
cnbc_quoteComponent_init_getData("CAJ","WSODQ_COMPONENT_CAJ_ID0ENJAC15839609","WSODQ","true","ID0ENJAC15839609","off","false","inLineQuote");
, Sony Ericsson, Tag Heuer and Tiffany cnbc_comboQuoteMove('popup_TIF_ID0EOOAC15839609');[TIF
23.02
-1.88
(-7.55%)
]
cnbc_quoteComponent_init_getData("TIF","WSODQ_COMPONENT_TIF_ID0EOOAC15839609","WSODQ","true","ID0EOOAC15839609","off","false","inLineQuote");
.
Rumors
are that Gatorade is looking for another women's tennis star to fill
Sharapova's place. That deal will likely be filled by Serena Williams,
sources say.
