I am an immense fan of Mark Cuban for many, many reasons. Having interacted with him on a few occasions (admittedly on the basketball court), I find him to be brutally honest and the quintessential entrepreneur - smart, focused, fun, accessible and real.  For that reason, I often read his blog.  Recently, I found his brother’s blog post about Evander Holyfield’s bankruptcy to be especially interesting.

Over the years, we’ve worked with many high profile athletes and entrepreneurs, from Sean Combs to Pamela Anderson to Roy Jones.  In the process, I’ve learned the truth behind many misconceptions of celebrity wealth, so I don’t find Holyfield, Tyson or other bankruptcy examples surprising. I’ve met many celebrities who aren’t wealthy in the least, for many reasons:

* Stars usually have very short career spans, without proper financial planning for when they are no longer relevant and large checks no longer appear. 

* Becoming a celebrity creates basic lifestyle changes.  A sex symbol from a single movie may suddenly need constant security (which they pay for themselves), or a black car to chauffer them, since public transportation poses a threat or a nuisance.  As a star of a humongous HBO movie recently told me – “many changes.”     

* Celebs often lack the desire to really work. They pay a ton of lip service, but often refuse to show up on time, take advantage of interviews, and focus on important decisions that need to be made about their businesses, careers, etc.  

* Everyone wants to make a dime off them.  I can’t tell you how many cold calls my entertainment staff and I receive from pariahs who seek or want something from these folks.  The dozens of money managers who cold call me wanting to manage celebrity finances, or sell them something, is unreal.  I have on occasion asked them, “Why not chase my countless entrepreneurial CEO’s who have less people around them, are easier to sell and more likely to hire you?” 

Articles like this are one of the reasons why 5W has built a tremendously successful business of athlete-entrepreneurs who are smart, focused and realize that there is a life after professional sports.

There is a tremendous need for better managers and better advisors who will be straight with these folks.  Additionally, these stars need to realize that on-air, on-court antics are one thing, but the same behavior won’t fly when it comes to doing business with corporate America.  Many stars who are infamously difficult are in fact a charm when it comes to marketing or sponsorship deals.  At the same time, those regarded as charming are, in fact, sometimes dishonest. This is another reason why stars need calculating managers to help them make decisions and need brands off the court or off the screen.

We have worked very hard to build a niche in the arena of being “cool enough to work with the stars/athletes, but buttoned up enough to work alongside decision makers in corporate America.”  It’s a fine balancing act.

Ronn Torossian

5WPR

Gambling Vs. Dogfighting - Which Harms a Brand and The Public’s Trust More ?
(as published in Bulldog Reporter’s Daily ‘Dog)

The NBA’s referee betting scandal is much more dangerous for the league’s brand than the NFL’s ongoing issues. While much of the sports and news world at large has been focusing on Michael Vick and his indictment on Federal Dog fighting charges, news Friday that NBA ref Tim Donaghy bet on basketball games he officiated over the past two seasons may prove to be a much bigger public relations mess for the NBA than Vick’s off the field actions.

From a PR perspective, the NBA now has the prospect of every fan watching each game looking for questionable calls that a referee ‘on the take’ might make to swing a point spread one way or another. There is an inherent disconnect for professional sports these days between gambling and sports (I.e. Why does every major newspaper in the U.S. publish lines but gambling is illegal?). For a league that even the media has always joked conspires to put certain team in the NBA finals this could be a tremendous blow, and I don’t see it going away any time soon.

In terms of handling this Public Relations nightmare, NBA Commissioner David Stern needs to act quickly and forcefully. In order for the public to be convinced that the games are in no way fixed, I’d expect the Commissioner to do a full investigation and any referee, player or anyone associated with the league that has the slightest tie to gambling or organized crime will likely be publicly sacrificed to minimize this public relations nightmare. They need to act quickly, and forcefully.

There’s a big difference between this and the Michael Vick or Pacman Jones issues which have marred the NFL off-season – Those issues have been NFL off the field issues – Individuals rather than institutions and from a league perspective can be confined to the individual player. This issue strikes at the very integrity of the NBA and could have long lasting effects.

Ronn Torossian

5W PR

Spent the last 24 hours with Dennis Rodman who I really consider to be a marketing genius…. Someone who has come up with irreverent ways to fascinate the media for years, and the rare athlete who transcends sports (How many athletes 10 years retired are remembered by individuals and non sports fans?)

Without getting into details, as a person I find him to be very different from people’s perceptions of him.. and found him to be the rare celebrity I thought was a decent person. Very impressive… and a real marketing genius…always provides me with marketing tips for consumer brands… and gave me some we will use…

(I’d put him in the league of Donald Trump, P. Diddy and Richard Branson in terms of personal branding)…. Really impressive and the personification of not judging a book by its cover…

Ronn Torossian

5W PR

Last night I attended the 25th Anniversary party for Nike’s “Air Force” Sneakers and wow was it an impressive event. Aside from the fact that millions of dollars were spent on this party (Unbelievable decor and design) it was amazing for me as a young entrepreneur to see so many young people gathered in one room who have shaped this generation’s Nike cultural phenomenon in one place.

Young artists who sell art and sneakers for thousands of dollars were there – Truly people who had defined the last 25 years of sneaker culture in 1 room. Just an amazing site and cause for inspiration.

Nike had every Air Force One ever made displayed around the room, amazing combinations of sneakers. The Chairman of Nike was there and it just goes to show you how a few people with dreams and vision can change the world (Remember, Nike was started by 1 guy selling sneakers out of a car).

Ronn Torossian

5W PR

I have just returned from an intense 5 day business trip to Las Vegas, and while the time there made me remember how much I dislike the commercial impersonalization of the city (and hotels which take 20 minutes to walk through and lines and lines)… Nevertheless, this trip will remain in my memories for quite some time as a very unique cultural experience.

I was in Vegas to attend the World Series of Poker (WSOP) for a few clients, and particularly to manage and run the launch of Pamela Anderson’s gaming site and the Doyle Brunson Appreciation party. In addition to having a private dinner with Pamela Anderson and Doyle, the whole trip was amazing. Truly an eye-opener.

While attending the WSOP I saw thousands upon thousands of people playing cards – From all walks of life, from college kids in frat gear and baseball caps to older Europeans in 3 piece suits and speaking French on their cellphones, from middle aged housewives to “muscleheads” in union shirts – Truly an unbelievable cultural experience that really can’t be described properly in words. All of this in a room the size of a football stadium with halls upon halls outside the main room of beautiful scantily clad women pushing various products on attendees.

Really amazed me how poker is a sport which truly transcends such cultural and ethnic boundaries.

I won’t forget for a long time what my client and friend the gdfather of poker Doyle Brunson said to me as people were approaching him for autographs and asking to take pictures with him “I used to run from the police for playing cards and people used to hunt me down – Now I sign autographs like a celebrity.”

As a New Yorker, I live and work in Manhattan… but trips like this always remind me of the need to continue to travel and witness the world from a business stand point – the world has so much going on and so many different ways to make money.

This week’s poker filled trip to Vegas was an eye opener.

Ronn Torossian

5W PR

It seems like every article on Detroit lately has to mention how lousy the city is. Terms like “America’s Baghdad” and the “nation’s poorest” punctuate most business stories concerning Super Bowl XL’s host. It’s a shame, since Detroit leadership missed a golden opportunity to reshape the image of the Motor City.

You’re probably thinking, “OK Ronn, tell us what you would have done,” so I will. As soon as mayor Kwame Kilpatrick and the City Council learned that they were hosting the Super Bowl, they should have launched a comprehensive PR campaign that touted the strengths and cultural attractions of the city.

Off the top of my head these would be:

Remind the public of Motown Greats like Marvin Gaye, Stevie Wonder, The Temptations and more.

Discuss how Detroit is the cradle of the American Automobile industry.
Discuss the Detroit Regional Economic Partnership – an innovative public and private sector effort to revitalize the city’s commerce and industry.

What if they put trained spokespersons in front of business, entertainment and travel reporters? Hosted special events and conferences that drew decision makers from other states? Engineered in-depth feature articles on how the city is struggling to improve itself through inventive means? Recruited a well- liked Motown singer to give back to the city through a series of televised or pay-per-view concerts?

Imagine a PR campaign similar to the above; one which culminated with this weekend’s Super Bowl. Missed opportunities are painful to behold.

Ronn Torossian

5W PR