SBJ/SBD Facilities & Franchises: Buyers, Sellers Discuss Sports Biz

The buyers and sellers perspective was the topic as executives on both sides of the aisle participated in the opening session of Day Two of the SBJ/SBD Sports Facilities & Franchises Forum in Arlington, Texas. The session was moderated by Genesco Sports & Entertainment President & CEO John Tatum, and on the sales side featured Cowboys Exec VP and Chief Sales & Marketing Officer Jerry Jones Jr., Dolphins and Sun Life Stadium CEO Mike Dee and Cubs Exec VP and Chief Sales & Marketing Officer Wally Hayward. Representing the buyers were MillerCoors VP/Marketing Jackie Woodward, American Airlines Dir of Advertising, Promotions & Corporate Communications Billy Sanez and Ford Motor Co. Southwest Region Sales Manager Brad Brownell.

Jones Says New Stadium Forced Team To Focus On Sales Staff

HEART AND SOUL OF THE BUSINESS: Tatum opened the panel by saying, “The heart and soul of the sports industry is the transaction between the buyers and the sellers.” Jones was asked about the Cowboys' sales philosophy and said they approach partners with the simple question, “If you were an owner of the Dallas Cowboys, what would you do?" He added, "We try to get it very integrated and very deep.” Jones said the development of the new Cowboys Stadium forced the team to “really reinvent ourselves,” with a focus on ramping up staffing and sales executives. Jones: “We really looked at where are we going for the next decade, where are we going for the next generation.” Brownell talked about Ford’s extensive deal with the Cowboys and said, “Our main goal is to show the Texas consumer that we are a full line manufacturer. … We want to be in the consideration set longer term, and we view the Cowboys relationship as a marriage, and we see this as a long term relationship and we really believe we are going to be selling more trucks as a result of our relationship with the Cowboys.” Woodward cited MillerCoors’ 20-year marketing deal with the Cowboys and noted the connection between “brands” and “geography,” especially the appeal of North Texas. Woodward: “This is a market we are going big.” She referred to all the activation within the marketplace and said, “We grew share in the North Texas market last year, and that’s what matters.”

RELATIONSHIPS MATTER: Sanez noted the importance of doing marketing partnerships with people who you know and trust, saying, “I don’t think we have done a partnership in the last 10 years with someone we don’t know.” He went on to add, “Every partnership we have must make money and must advertise for us, and that is the cherry on top.” Brownell: “The real work comes after you sign the deal and how to really engage the consumer. That’s the hard part … such as working to intercept the consumer before they get to their seats. … We really have to find a way to really touch the consumer and make them an advocate or our brand.” Woodward agreed, “I’ve always said, more talk, less transaction. … Not just talking, but really listening to what the needs are. Listening is a big part of the equation.” Dee talked about the difference of working in MLB and the NFL: “If you have a bad night in baseball, you have a larger canvas to get it right and work with the sponsor. In football, there is a lot more pressure to get it right, with more precise activation, with the fewer games and the shorter schedule.” Hayward, who was on the buy side at Relay Worldwide and now is on the sell side with the Cubs, discussed the change in approach in pitching clients now that he is with the Cubs, and he said it is focused on just talking and listening and less pitching. “We went in and we just met with the client and we just talked," he said. "We learned about their business and we really learned from the client.” Hayward said that has allowed the Cubs to be more responsive to what the client’s needs were. In a light moment, he noted the highest selling item at Wrigley Field is beer, and Woodward interjected, "Not mine." Hayward: ”It just happens not to be Jackie’s.” The Cubs have a deal with A-B InBev.

ODDS AND ENDS: Woodward talked about extending partnerships on the web and in mobile space and said, specifically, that sports teams have yet to figure out how to fully activate partnerships beyond a team’s Web site. “We’re active in the digital space, but the ideas are not coming from the teams," he said. "We are working with media partners and through our own ideas and initiative. … It doesn’t have to be big and complex.” A question on the changing demographics in America was brought up and most mentioned the opportunities in the Hispanic space. Brownell: “The Hispanic market is one of our untapped opportunities. We have got to find better opportunities to engage that consumer, and look for ways beyond Dallas-Ft. Worth.” Sanez added it is more than just a focus on Hispanics that linked them to the Cowboys: “The Cowboys are the number one team among Latinos. In Mexico. In Japan. Among Women. Those are the decisions we make and how we make them. To know that one property can deliver a property is huge for us.” Woodward: “The majority of growth of the beer category over the next century is going to come from Hispanics. … Sports and media and music are great opportunities and we are spending a lot of time on it.”