Dollars and sets: Beach volleyball commissioner is building his brand

Dollars and sets: Beach volleyball commissioner is building his brand
Friday, June 20, 2008
Star-Ledger Staff
Professional beach volleyball returns today to Belmar for its 16th AVP tournament since 1991.

The AVP Crocs Tour Belmar Open will go through Sunday, when the men's and women's finals will take place on the beach at Fifth Avenue.

As the 2008 Beijing Summer Games approach, the AVP Belmar Open will be one of the last times fans can see their favorite AVP Crocs Tour stars and Olympic hopefuls in action before the games.

But looking past the Olympics, commissioner Leonard Armato is trying to turn the money-losing tour into a successful business. Armato, an agent who has represented Shaquille O'Neal and Pamela Anderson, spoke to The Star-Ledger about those efforts this week.

Q. So, professional beach volleyball returns to Belmar.

A. Belmar has been a traditional hotbed of East Coast beach volleyball. Even before I acquired the tour in 2001, when it was struggling, it did very well in Belmar.

Q. How is AVP volleyball doing now?

A. We're doing great. We're building a tremendous brand around the world. We acquired the tour, the AVP Crocs Tour had seven events. In 2008, we will have 19. ... We've grown from three hours of network television coverage in 2002; we will have 15 hours in 2008. ... On the revenue side, we've grown from $3 million in 2002 to $32 million in 2007.

Q. But you're still in the red

A. Right now, we're in the red. We diverted a lot of time and money when Shamrock Capital (unsuccessfully) attempted to acquire AVP in 2007. We intend to make money in 2009. We still continue to make our business plan more efficient.

Q. Did beach volleyball at the Athens Olympics help the cause?

A. Yes, Athens helps. These added attention and exposure to our stars. The men and women are reigning world champions and are expected to win the gold in Beijing.

Q. What can we expect to see at Belmar?

A. You're going to see some outstanding athletes, a number of Olympians and stars. Holly McPeak (Armato's wife) will be playing her last game at Belmar, as she will retire at the end of this season. We have the self-proclaimed "Team Gorgeous." And they are absolutely gorgeous. Kids can come and get free stuff, and the athletes are very accessible.

Q. What kind of money do the players make?

A. The stars compete for a total of $4.5 million in prize money, plus their own endorsements.

Q. Give me an anecdote about one of your players the public wouldn't know about.

A. Mike Lambert, one of our great players, an Olympian who graduated from Stanford and speaks five language. I invited him to our sponsors summit. We had some high-octane people in the room. He walked in and pulled out his guitar, and started singing the AVP anthem, which he wrote.

Well, he brought the house down. If you ever get a chance to hear it, you'll understand why.

Q. What attracted you to beach volleyball?

A. I grew up in Southern California, I played Division I basketball. I played volleyball in the summer for cross-training. Over the years, I watched the professional matches, and thought, "This is an interesting sport, and it's fun."

When it went into financial difficulty, I decided to go for it.

Q. How much did you buy it for?

A. We bought it for $1.9 million. We worked on it and we grew it.

Q. But it's still a fringe sport.

A. You might consider it that. I don't. Let's call it a high-growth sport.

Q. What will the tour look like 10 years from now?

A. It has a chance to grow significantly. It really hasn't been marketed that effectively. ... It's arguably become the hottest ticket at the Olympics. In Athens, it was the runaway hit.




© 2008 The Star Ledger