Recession Spending in Sports

Recession Spending in Sports

In these tough economic times, it is interesting to see how the sports industry stays afloat. Even though the sports industry is among the most lucrative, it would be reasonable to assume that it has not been immune to the current economic slump.

The reality is that innovators in this field are finding continued success by developing creative ways to boost their clubs or capitalize on audience needs.

One the most prominently endorsed sports is NASCAR.  It is one of the few sports where the drivers actually wear their sponsorships and their equipment is plastered with logos as well (The fictional character Ricky Bobby’s Fig Newton’s fiasco comes to mind).  They might be considerable risk in touting sponsors so openly, but NASCAR seems to be holding on to its lucrative deals, and even developing new ones.


Their secret? A passionate and loyal fanbase.  

NASCAR marketing officials are trying to provide companies with more bang for their buck by  zeroing in on certain demographic groups, and by asking their drivers to promote in ways beyond wearing their brand. Sponsors are seeing opportunity, and NASCAR is willing to work with them to provide the best return.  Of course, a receptive client is the best client. 


The English Premier League finds itself on the upswing as well.  Like NASCAR, the EPL directly and prominently features their sponsors on their players, and this practice alone generates the greatest percentage of revenue. Overall, the EPL has raked in £99.75 million – a significant jump from £71.8 mil last year.  Larger clubs like Manchester United are bringing on deals around the £20 mil mark, but what to do about lesser powers? 

This is where creativity is coming in: Clubs are penning deals that provide multiple sponsors within a season. For example, Tottenham signed with Autonomy for domestic games, and provided another sponsor for Cup games. By utilizing two companies, they are essentially doubling their revenue. Finding shorter deals may bring in lesser cash at first, but this practice allows teams to raise their profile quickly and create more branding relationships.

Back in the States, drawing on the loyalty and passion of fans seems to be paying off as well.

Recently Rivals High posted an article about a Texas high school providing its football team with a $59.6 million dollar stadium.  Yes, you read correctly.  The Allen High School football team has provided its community with great success, including the 5A-1 State title in 2008, but very little seating for its fans. In fact, non-students have to wait in line for tickets starting Monday morning to see the Friday night action.

Allen High's football Coach Tom Westerberg thinks the timing for this type of investment is perfect and will result in a higher profile for the team, more people in the stands, playoff opportunities and community events.

"The old Eagle Stadium was very good to us but just got too small," Westerberg said. "We hope the new field will continue to be a home-field advantage for us."

Seems like everything is bigger in Texas, including opportunities.


~Mia

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Stadium Promotions: Sink or Swim

Stadium Promotions: Sink or Swim

As summer begins to wind down and the race for the postseason starts to heat up, America is filled with baseball. After all, it is our pastime. But over the course of the season, how do the clubs fill the seats? With promotions of course.

The latest buzz surrounding a recent giveaway got us thinking about successful promotional efforts versus disastrous ones, so we thought this was a great opportunity to discuss how organizations fill their seats, offer a great experiences for their fans, and walk away with their public relations efforts unscathed.

The recent buzz that jump-started this post revolves around the Ryan Howard garden gnome given out by the Reading Phillies, the AA affiliate of the major league club of the same name. August 3rd marked the day that the R. Phils would giveaway the 8-inch lawn ornament– with full beard and pictured above -- to the first 2,500 fans in attendance. By 2 p.m. there were 1,500 fans in line for a 6:05 start-time. To solidify it’s popularity, ESPN named the garden gnome sporting the likeness of the former Rookie of the Year and MVP as the best promotion in the minors.  It is also worth mentioning that the (free) giveaway is being sold on eBay for a significant amount of cash.

Of course, anything noteworthy will come under fire, and some people have been citing signs of racism, but the Reading Phillies are doing the right thing. According to the general manager, Scott Hunsicker, it’s just a garden gnome and regardless of the player personified, it would have been the same. We have to agree.

A minor backlash is nothing when coupled with a great turnout and major buzz about the minor league club (not to mention the approval of the Big Piece himself). But other clubs have not been as successful in their promotional efforts.

In late June of this year, during a Marlin vs. Rays game, the PR people decided to capitalize off the World Cup and hand out vuvuzelas to the crowd. The offer got people in the seats, more than doubling traditional attendance from 7,000 to 15,000.  More people? Sounds like a good game plan, but the problem was they didn’t anticipate the amount of noise the giveaway would make. So much so that it caused one team to bat out of order because the lineup change wasn’t heard.

Another unanticipated failure occurred when the Yankees teamed up with Pepsi to give away 250 free tickets to Opening Day at the Bronx Bomber’s new stadium. Fans came out in droves to snag the free tickets only to find out that the location had changed about 10 minutes before the promo (due to lack of permits). To make matters worse, Pepsi didn’t have as many tickets as they said they did and falsely advertised stubs to the season opener– which in reality where tickets for some random game in June.

The next example goes pretty far back, but is almost too classic to ignore. In 1974, Cleveland decided to host a 10 cent beer night against the Rangers. Over 25,000 fans came out, leading to a lot of the foamy stuff floating around the stands. Fans got rowdy with a woman running out to the on-deck circle to flash the crowd, a father-son duo mooning players, and culminated with a 9th inning theft of a Rangers outfielder’s glove and subsequent rushing of the field. The game ended in a forfeit by the hometeam.

If there are any lessons learned from baseball’s attempt to fill the stands and enhance fans’ experiences at the ballpark, it’s definitely that they can be an unexpected success or unexpected failure. Be sure to be creative with the giveaways, as the Ryan Howard garden ornament proves, but be prepared to deal with all the circumstances surrounding them. Think of all the possibilities and make sure to take into consideration noise level, danger and increase of and effect on of patrons. If you are not prepared to handle any possibly outcome, the crowd or the press surrounding the promotion can get out of control quickly. Another piece of advice: if you decide to partner with another corporation, communication is key! Each group comes with baggage, meaning their services and yours are equally affected – so choose carefully.

If well-planned, creative, and desirable, promotional events and stadium giveaways can be huge for your company, whether you are a baseball team or private business trying to draw up customers.


~Mia

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The MLS Soccer Marketing Conundrum

The MLS Soccer Marketing Conundrum

Let's face it, soccer has never been one of America's favorite sports but with the construction of seven soccer-specific stadiums (bringing the total to nine) in the last six year and the signing of European stars like Thierry Henry and David Beckham to MLS (Major League Soccer) teams, the U.S. is trying, really trying to stir up interest in this world beloved game.

If the viewership numbers from this year's World Cup are anything to go by, it would seem that American interest is increasing, albeit slowly, as more than 24 million fans tuned in to watch the Final between Spain and the Netherlands, a figure greater than the average viewership for last year's MLB world series games. But the M.L.S. (Major League Soccer) has yet to find a way to capitalize on the growing interest in the sport which would catapult the league to the status of the NFL or NBA.

An article on the Bleacher Report website attributes this to the fact that the MLS marketing crisis may stem from the lack of a veritable star. The writer says, "The main reason for the slow uptake of the MLS is because of the player personalities, or lack thereof. Landon Donovan is clearly the face of not only the MLS but of American soccer. Donovan has the talent, but not the personality". The great American sports, he contends, are built around the star player with the star personality who has lots of crossover appeal and so far the MLS hasn't found that person. 

And we here at Talk 'n Ticker would have to agree. The NBA has guys like Shaquille O'Neal, Dwight Howard and LeBron James and the NFL has folks like Terrell Owens, Peyton Manning and Tom Brady. Their personalities and mainstream appeal have undoubtedly generated interest in them and subsequently their games. Of course it is not so simple. The best soccer players are wooed by the English Premier League with it's potential for fame and the promise of a far bigger paycheck than the MLS can provide. Corporate sponsors in turn are hesitant (and rightly so) to invest as heavily in a sport where the talent is mediocre and the fans are few and so it becomes a vicious cycle.

Terrell Owens

It's apparent that MLS soccer needs that guy, the guy who may not be the best player but acts like he is the best player. That guy who is always slightly controversial. That guy who stays in the news outside of soccer. That guy who trash talks the other teams but manages to come off as passionate about the sport.

If the MLS would like to see its support base grow, alot rests on the development of the players to be recognizable personalities both on and off the soccer field. Whether it's through more intense media relations or increased social media engagement with fans, players need to rise to the occasion if this league is to reach the stature that it is capable of reaching.


~Khaila

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Managing the LeBron brand

Managing the LeBron brand

In what may be seen by some folks in Cleveland as a further slap in the face to the city by LeBron James, the new Miami Heat star took out a full page ad in the Akron Beacon Journal today, thanking his fans and friends in Akron (read 'not Cleveland') The ad reads:



To My Family, Friends and Fans in Akron:

For all my life, I have lived in Akron — and for that, I am truly a lucky man. It was here where I first learned how to play basketball, and where I met the people who would become my lifelong friends and mentors. Their guidance, encouragement and support will always be with me. Akron is my home, and the central focus of my life. It’s where I started, and it’s where I will always come back to. You can be sure that I will continue to do everything I can for this city, which is so important to my family and me. Thank you for your love and support. You mean everything to me.

LeBron

In all fairness, LeBron is probably feeling a little miffed at Cleveland and in particular Dan Gilbert after that letter-heard-around-the-world, but was this ad the right road to take? When you have a brand like LeBron it is inevitable that you can enjoy a long career without some controversy to mar your legacy, Kobe Bryant, Lance Armstrong and Tiger Woods can certainly attest. But it's what you do in the face of the controversy that determines how you are remembered. And this is a lesson that LeBron could stand to revisit. Whether or not this was a childish shun on his part or an innocent omission on the part of his team or the ad buyer, taking the high road should have been the preferred response in this situation. The fact that this letter was issued almost a full month after The Decision, also calls into question its true intent and his team's preparedness to deal with the the aftermath of what they should have known would be a controversial decision.


The lesson here for athletes and entertainers alike is to think long-term about how you want your brand to be remembered and to plan in advance for the aftermath of crises. Proactive vs. reactive should be the route athletes strive to take unless circumstances don't allow.


We'd love to hear your thoughts on whether your perception of LeBron has diminished since The Decision.


~Khaila

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