Rappers taking away the big-money endorsement market from pro athletes

The $55 billion footwear and sports apparel market has long been the domain of pro athletes, but no more. Jay Z, 50 Cent, Snoop Dogg, Xzibit and Missy Elliott, are the new stars of big-money endorsements, a field formerly dominated by pro athletes. Jay Z and 50 Cent have deals with Reebok, Snoop Dogg is hustling Pony, Xzibit is pushing Da Da and Missy Elliott teamed up with Adidas to push her own "Respect Me" line of sneakers, jackets and bags.

In a USAToday.com article on this subject, 50 Cent is quoted saying, "Athletes are seasonal. Our presence is year round. The major corporations see how lucrative it is to do business with us."

The "casual shoes" endorse by these rap-preneurs, have emerged as the fastest growing segment of the $17 billion athletic footwear market. Casual shoe sales were up 24.5% in 2004, while basketball shoes and running shoes increased by 0.3% and 4.6% according to SGMA International. Casual shoes accounted for 51% of sales for the 12-month sales period ending in May.

Most rappers have no qualms about working with sponsors for product placement in their songs, music videos and tours. 50 Cent whose debut album, Get Rich or Die Tryin', sold more than 11 million copies, wares his shoes in his music videos and public appearances. Entertainers are always in the public eye, while you only really see or hear about athletes when they are playing their respective sport. Entertainers equal more publicity and have the street credibility that many sports stars lack.

Jay-Z's "S. Carter" collection which was launched in June 2003 sold out in three days, making his shoes more successful than that of most pro athletes.

Reebok's revenue increased 11% to $925 million in the first quarter of fiscal 2005. The company attributes roughly half that increase to music, entertainment or lifestyle-inspired products so you can be sure you’ll be seeing a lot more entertainers pushing athletes to the side lines.