If you don’t know who Jordy Smith is, you’d better ask somebody. At nineteen he’s a two-time junior world champion, and in his rookie year so far, he has shattered the ASP’s World Qualifying Series (WQS) all-time points record, scoring more than 14,000 points with several events left in the series. The only thing getting more hype than his upcoming debut on the World Championship Tour (WCT) next year has been the coverage of his contractual dispute with former sponsor Billabong and the speculation over whom he would sign with next.

For months, rumors of a seven-figure salary and creative tactics from brands trying to convince Smith to sign have been circulating. Nike supposedly went so far as to arrange a phone call from Tiger Woods to try and sway the young South African.
Those were all put to rest on October 22, when an O’Neill press release stated they had signed Smith. Billabong released this statement around the same time:
“The dispute involved the status of Jordy’s Athlete Sponsorship Agreement with Billabong. Billabong, which had sponsored Jordy for 10 years, alleged that Jordy was in breach of his Agreement; Jordy denied that he was in breach of the Agreement. The matter was amicably resolved by Billabong releasing Jordy in exchange for an undisclosed sum.”
With the dust still settling, Transworld Business caught up with O’Neill’s VP Of Marketing Steve Ward to find out as much of the details as possible. While Ward decided not to comment on the specifics of the contract, he does offer some insight as to how the brand plans on utilizing Smith’s talent in the coming years.
Here’s what he had to say:

How long have you been talking to Jordy Smith?

We’ve been aware of Jordy and his accomplishments over the last several years. However, our communications with him and the Smith family were only very recently initiated.

Why were communications “very recently initiated”? Why hadn’t O’Neill been after Jordy earlier?

Along with the rest of the surfing world, we’ve been interested in Jordy for some time. However, out of respect for Jordy’s previous commitments, we had to wait for the window of opportunity to open up.

Who represents Jordy, and how was it working with them?

All our communications were done through the Smith family and their legal counsel.

Is Jordy head-to-toe O’Neill now?

He is signed on for O’Neill apparel, accessories, and wetsuits.

What was it about O’Neill’s offer that made Jordy decide to go with you guys?

O’Neill was flexible in allowing Jordy to pick up additional contracts, such as a footwear sponsor. Relationships are key, and we believe O’Neill’s personal commitment to supporting Jordy was a large factor in aligning himself with the brand long-term.

Any ideas what footwear, eyewear, watch brands, et cetera he’s planning on signing with?

Those decisions are Jordy’s to make. Of course, there are some brands that would align better with O’Neill than others. What we do know is that it will come down to who is really willing to step up and support Jordy. I would think it would be advantageous for interested companies to act quickly. Surfers of Jordy’s stature don’t become available very often.

How long is Jordy’s contract and for how much?

Jordy’s contract is a landmark deal for both O’Neill and the surfing industry, and firmly establishes Jordy as one of the top-paid athletes in competitive surfing. October 19 marked the beginning of a long-term relationship between Jordy Smith and O’Neill.

No details?

We’re keeping the details under wraps.

How do you plan on marketing Jordy, and how do you maximize that opportunity?

Activating Jordy is one of our key global initiatives. Jordy will be featured in all aspects of our marketing, such as print, video, signature products, et cetera. It is our intent is to establish Jordy as one of the marquee athletes in the surfing community.

Will there be signature product, video, et cetera?
Yes, we will be launching global Jordy signature products in 2008 and beyond.

How do you get ROI on investing in an athlete like Jordy?

Our ROI comes from the multi-faceted support we will be providing Jordy to live out his lifelong dream of becoming a world champion. We understand the road to becoming a world champion is a long process and we look forward to taking that journey alongside Jordy.

What would a world championship mean for O’Neill?

Having a world championship would be great. However, traveling the road to becoming a World Champion with a young athlete like Jordy will be even better.

How much do you think it would affect apparel sales?

Globally, O’Neill has a ton of momentum and having a global athlete like Jordy further solidifies O’Neill’s commitment to be an industry leader.

What does this mean for other guys on the team, like Cory Lopez?
Jordy has already been embraced by our young and veteran athletes. He is in a great position to learn from our other premier riders such as Cory Lopez.

Who signs Jordy’s check? Does the new world headquarters in the Netherlands handle athletes’ contracts?

The signing of Jordy was a global effort and a key initiative for the brand. Athlete contracts are handled both regionally and internationally. Jordy is considered an O’Neill International athlete.

Jordy was brought into the Coldwater Classic as a wildcard. Did that have anything to do with the O’Neill deal? I did notice him wearing an O’Neill hoodie during the event.

Of course O’Neill wanted the number-one rated WQS surfer to be in the event. It was also a great opportunity for Jordy to experience O’Neill in our own backyard of Santa Cruz.

What types of signature products are you planning?

Boardshorts are the obvious first choice and will be the first signature product to hit the market. Follow-up products are yet to be determined, but all of Jordy’s signature pieces will be designed around his personal style and needs. Our goal is to do more than just attach Jordy’s name to product. We want to partner with him and put relevant products out that embody the spirit of O’Neill and Jordy Smith.

How are you going about getting content to use for marketing?

Luckily for us, the North Shore season is upon us. There is no doubt that every eager photographer will be taking aim at Jordy. O’Neill has also invested in additional photographers who will be capturing the action of Jordy, Cory [Lopez], Timmy [Reyes], and the rest of the team during this year’s Hawaii season. So for now, we just pray for the elements to come together and produce some insane coverage.

Are there any other athletes O’Neill has its eyes on?
Top secret.

What about sponsoring a WCT event next?
You’ll have to wait and see.

—Joshua Hunter

This entry was posted on Thursday, November 8th, 2007 at 7:04 pm and is filed under FEATURES. You can leave a response, or trackback from your own site.