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October 15, 2014 02:24 PM
The question of how the World Cup and Olympics can become profitable for everyone involved was at the center of a panel on assessing the value of large global sporting events on day 2 of the 2014 CSE Sports Marketing Symposium.
Both panelists – Victor Matheson, an economics professor at Holy Cross, and Terrence Burns, managing director of Teneo Sport – agreed that changes must come to the current model, which heaps massive expenditures on host cities. Oslo’s decision to drop its bid for the 2022 Olympics, leaving only Beijing and Almaty, Kazakhstan, as potential hosts, is seen as a key indicator of the failures of the current system.
Assessing the Value Proposition
Terrence Burns, Teneo Sport
Victor Matheson, College of the Holy Cross
Matheson: “Think of the great deal that FIFA and the IOC have here. They put on an event that someone else does all the planning, pays for putting on the events. Someone else builds all of the facilities so the event can be hosted and all of the athletes come in and participate for free. Yet the IOC then gets to sell Olympic rights for $7 billion to NBC. FIFA over the last four years prior to this World Cup sold their TV rights for $4 billion worldwide. What a great business this is that they’re in.”
Burns: “Pick cities now. Get them prepared ten years from now, so it’s not an embarrassment, it’s not a joke, it’s not an insane cost. That’s called brand management, and they have to look at bid city selection as the first step in Olympic brand management. You’re seeing what’s happened when you ignore it."
On the 2022 bid:
Matheson: “The biggest cost associated with this is not necessarily the running of Games, the operating costs. It’s not necessarily what you need to build. Remember, the biggest cost is, in order to host the Games, you have to win the bid.”
Burns: “This is a wake up call for the movement. It has to be. It’s really unsustainable. More rationality [is needed] in the process. There should be built-in functionality long term in the bid process. Tell cities you can’t bid on the Olympic Games unless you’ve held ten world championships over the last ten years. You can’t bid on the Games unless you have 60 percent of your infrastructure built and in use already.”
On proposals to rotate the Olympics between a small group of cities or keep them in Athens:
Burns: “It would kill the Olympic brand… The Olympics aren’t about sport. Sport is the path that takes you to these values. We talked to people all over the world who aren’t interested in sport, who never watch sport, except for the 17 days of the Olympics on television. Why is that? It’s because it’s about pageantry. It’s about us at the very basic level….[bid cities] get to reinterpret, they get to resurrect the Olympic brand with their own cultural pixie dust.”
On the ideal host city:
Matheson: “The most successful Games was the Los Angeles Games. Almost no new infrastructure was used… If you don’t spend billions of dollars building new facilities and, of course, Los Angeles has great airports, a lot of roads and hotels and all this. When you don’t spend that kind of money, you can have a highly successful games, and this is an Olympics that made a huge profit for the organizers, cost almost no investment on the part of the city and, of course, was widely watched.”
October 15, 2014 12:38 PM
The Power of Pop Culture
Rembert Browne, Grantland, moderator
Tiki Barber, Thuzio
Matt Kramer, CSE
Kristen Ledlow, NBA TV
Jason McIntyre, BigLead.com
Thanks to crossover successes such as Shaquille O'Neal, more athletes than ever want to become active in acting, singing, investment and marketing endeavors, in addition to their on-court careers. An active interest among lifestyle publications such as GQ and Esquire in chronicling athletes' lives only expands those goals. But panelists agreed that strategically plotting such desires is critical. "Everybody wants to do everything," said Matt Kramer, CSE vice president of talent representation. “But you have to harness and direct all that. Not everybody should be a rapper or a singer or an actor."
Still, athlete interests in pop culture represent a potent way to expand their personal brands well beyond the scope of their on-field careers. And for entertainers, getting more involved in professional sports investment represents one of the most potent moves they can make from a financial perspective. "One of the biggest pieces of advice to entertainers is that getting into sports ownership is one of the best things they can do relative to ROI if they are patient," Kramer said.Going forward, digital platforms such as mobile and YouTube will represent a particularly fertile ground for athlete forays into pop culture and marketing. "I think we're at just the start of seeing some really interesting things in that area," said Jason McIntyre, Big Lead founder. “The [viral] videos the Manning brothers have done for DirecTV are just the tip of the iceberg.”
Quick takes from the panel:
The session was dominated by discussion around NFL, NBA and WNBA athletes, with barely a mention of anybody from MLB. "We've been here for 45 minutes and we haven't talked baseball once. What does that say?," McIntyre said. Kramer responded that marketers increasingly want to tap into athletes' off-field lives, something less possible in baseball given the everyday nature of the game schedules.
TV dominates. "Media personalities are now bigger than 95, 97 percent of the pro athletes out there. They're in everybody's homes," Kramer said.
Local marketing is ripe for expansion. "Working a local level with multiple athletes can mitigate the risk from a big, national-level with a single athlete and what can happen if there's an issue with that particular guy," said Tiki Barber, Thuzio co-founder. "But the metrics, and measuring what' s happening locally, is more difficult."
October 15, 2014 12:23 PM
Even in a crowded sports media marketplace, Vice Sports still sees a clear lane of opportunity ahead. Will Kiersky, publisher of the fledging Vice Sports, was featured in a one-on-one interview to start the second day of the 2014 CSE Sports Marketing Symposium.
“On one end of the sports media spectrum, there’s a lot of live event coverage and highlights of that, and on the other side, especially in the digital space, there’s a lot of opinion,” he said. “We saw a lane where we could focus on the athletes and storytelling.”
Launched in June 2014, Vice Sports has already drawn the interest of some of the biggest names in sports, such as New York Knicks player Carmelo Anthony, which has come as a surprise to Kiersky. “We try to give athletes a platform to be as honest as they’d like to be, and give them a comfortable place to speak,” he said. “Carmelo’s people actually hit us up and told us he’d like to get involved, and it led to a different conversation about free agency than having a camera in his face in the locker room.”
The new venture has attracted another audience that surprised Kiersky, as well: female readers. As with most Vice Media brands, the typical reader has fallen into the 18-35 demographic, but numbers that Vice Sports’ viewers are roughly 55 percent male and 45 percent female, which Kiersky said speaks to the strength of its female writing staff.While the site is still new, Kiersky said that Vice is already discussing what is the next big step While some plans include new initiatives, such as a short film series and an international look at the world of sports, he said Vice wouldn’t forget the one key that will continue to make it successful. “The best way to grow is by telling really great stories and sharing good content and videos that people will want to share,” he said.
Other quick takes from Kiersky:
On Derek Jeter’s new website, The Players’ Tribune: “I think it’s fantastic that there are new ways for athletes to tell their story. Often we forget they’re regular people thrust into extraordinary situations.”
On his biggest concern about the launch: “Vice has a great reputation, but we don’t have a lot of currency in the mainstream sports world. We weren’t sure what reaction we were going to get from athletes, but it’s been great so far.”
On bringing an established personality to the brand: “We like to develop young talent, so I don’t know if right now if that sort of thing would work.”
October 15, 2014 11:46 AM
In a presentation on Day 2 of the 2014 CSE Sports Marketing Symposium, Frank Wheeler of SAP Media and Sports Entertainment outlined how his company uses data technologies to help clients maximize performance. Wheeler pointed to three main areas of focus: The fan, the player and the business.
On the fan: Wheeler highlighted his company’s engagement tools, such as the NFL Player Comparison Tool and the NBA Stats website, as well as fan databases to help target individual interests. “It starts with a transaction history. They go into surveys. They go into web. They’re collecting more and more mobile information… How can they leverage that data to gain more insight on the fan and engage with him on more of a one-to-one basis?”
On the player: “Wearable technology is big. I know the NFL is looking at sensor data for the players. The NBA is currently using the SportVU camera system in every arena across the league. Capturing that information and sharing that information with the team, with the coaches, with the players, with the fans, working with those types of organizations on how they can better visualize that data and get the best out of that data.”
On the business: Wheeler highlighted the tools that SAP has running in SAP Arena in Mannheim, Germany, as an example of the how analytics can help a sports franchise. “The manager of the arena can be sitting in a suite tied into a management dashboard where it’s changing real time on revenue he has for tickets, what type of tickets – season tickets or individual tickets. He can look at how many beers he’s sold, how many schnitzels he’s sold. All of that data is available through the systems that they’re using through POS and the backend solutions. It’s all tied to financials, all tied to P&L reporting, all in real time.”
October 15, 2014 09:16 AM
October 15, 2014 08:28 AM
Tony Harris, Al Jazeera English, moderator
Jennifer Jones, AT&T Mobility
Kenny Mithell, NASCAR
Roberto Ruiz, Univision Communications
Marc Strachan, Diageo
“Multicultural marketing or diverse marketing or cross marketing, whatever you want to call it, is just Marketing 101, ladies and gentlemen,” said Marc Strachan, vice president of multicultural marketing for Diageo. “Let’s get rid of the titles. Let’s get rid of the silos. If you are a marketer, there’s money in them there hills and you’d better go after it.”
Kenny Mitchell, managing director of brand and consumer marketing for NASCAR, cited the change in broad demographics as reason to reject marketing specifically to individual ethnicities. Mitchell: “If you look at a world where one out of two babies that are born are [people] of color. If you look at marketing to millennials, 40 percent of them are of color. If you are doing that in a silo you are doing yourself a disservice. We are marketing to the sports world. We are marketing to fans. We are marketing to the U.S., and the U.S. is diverse.”
“What is important is that you are inclusive and that you think about multicultural consumers from the get-go,” said Roberto Ruiz, senior vice president of strategy and insights for Univision Communications. “You do this holistically. You think about this as a comprehensive package, not as an afterthought.”Jennifer Jones, AT&T vice president of diverse markets, said that a diverse audience will inevitably be included when marketers tap into the things consumers care about. “Everyone has passions, and sports is a passion,” she said.
“Look at millennials now, in particular,” said Mitchell. “If something doesn’t look the way that they’re used to the world being shown, they’re going to feel uncomfortable. You’re actually disinviting them by showing a world that doesn’t reflect who they are, who their friends are and what their world looks like.”
While there is progress in this area, said Jones, it is still a challenge to create top-down, companywide support. “It remains a journey,” she said. “It’s a journey against the inertia of how we’ve always done things.”
October 15, 2014 07:56 AM
Reaching the LGBT Community
Kate Fagan, ESPN, moderator
Robert Boland, NYU
Patrick Burke, You Can Play
Layshia Clarendon, Indiana Fever
Kristine Friend, Marriott International
Hilary Shaev, WNBA
The panel, which focused on the LGBT community as one of “Ideas That Move Us Forward” discussions at the conference, was moderated by ESPN writer Kate Fagan and included Robert Boland, professor of sports management at New York University; Patrick Burke, the co-founder of You Can Play; Indiana Fever guard Layshia Clarendon; Kristine Friend, senior director of segment marketing for Marriott International; and WNBA Vice President of Marketing Hilary Shaev.
“I think there’s three ways brands can [interact with the LGBT community],” said Shaev. “One is do nothing, two is market to, and the third and the best would be to engage with.”
Friend said she takes this point of view when forming Marriott’s Love Travels campaign. “When you can kind of get at the core of what the sense of belonging means to somebody, regardless of who they are, I think you can really engage,” she said, “and that person just aspires to be a part of your brand, be part of what you’re doing.”The panelists cited the Love Travels campaign, the WNBA’s pride initiative and Nike’s social media success with its Be True campaign as successful examples what can be accomplished by properly engaging with the community.
“The only reason left why you would not be diving in head-first is because you don’t get it and you’re not paying attention to what’s going on,” said Burke. “There’s no risk involved. Any metric will show you that. There’s billions of dollars being left on the table by [the marketing] industry.”
Added Boland: “There will be people who will be left on the sideline because they don’t think they need to be there. It never hurts to push the envelope.”
The panel also discussed a change in the way that women, both straight and gay, are portrayed as representatives of brands and organizations. The traditional notion of selling the sex appeal of an attractive female athlete is in decline, according to Shaev.
“Sex sells sex,” she said. “It doesn’t sell tickets to sporting events. What becomes sexy is authenticity. It’s about athletes portraying themselves on the court as exactly who they are.”
When asked about the broad attention given to gay male athletes like Michael Sam and Jason Collins, Clarendon spoke of how the lack of coverage for lesbian athletes hurts the community. “It speaks to the assumption that if you’re an athlete and you’re a woman, you’re a lesbian, because you would never play sports because you like them,” she said. “We have to give [gay women] the same publicity. We have to make it just as big of a deal.”
October 15, 2014 07:31 AM
October 14, 2014 07:05 PM
Changes in College Sports
Ed Desser, Desser Sports Media
David Greenspan, Winston & Strawn
Ramogi Huma, Nat'l College Players Assoc.
Michael McCann, Univ. of New Hampshire
SMS 2014 Podcast:
College writer Michael Smith and Executive Editor Abraham Madkour discuss the hot-button college panel from Day 1 of the 2014 CSE Sports Marketing Symposium in New York.
Desser, who was called as an expert witness during the O’Bannon case, said a review of court documents showed how the NCAA is operating as a professional sports league. Desser: “There’s no pretense at the NCAA that the revenue side of college athletics is anything but a professional operation.” Ramogi Huma, president of the National College Players Association, said college football and basketball “are not amateur sports. They are pro sports… Amateurism [in college athletics] is not a moral issue...it's a financial issue.”
Huma said NCAA rules need to be reformed, pointing to Louisville player Kevin Ware, who broke his leg during a Final Four game in 2013. Huma said Louisville had the option to not pay for the player’s medical expenses and could have stripped his scholarship. "We've been fighting for basic protections for [college athletes] for over a decade." Huma said colleges could find money to pay athletes by putting a portion of media revenue in a trust fund until athletes complete their degree. He dismissed criticism that paying college basketball and football players would hurt women’s sports and non-revenue sports. He predicted women’s sports would wind up with more funding. "Title IX is the law of the land,” he said. Huma also suggested that college athletic departments have plenty of areas where they can cut costs, from paring travel for non-revenue sports to pulling back on construction plans. "Don't build facilities with waterfalls, trap doors and slides,” he said.
David Greenspan, partner with Winston & Strawn, said players should be compensated in some way. "Revenues are being generated,” he said. “Games on TV are being watched largely because of the kids playing the games." Desser suggested that relaxing some NCAA rules, like allowing players to do local endorsements, would boost interest in the game.
October 14, 2014 06:39 PM
Winning beyond the playing field
Tom Brasuell, MLB
Flo Bryan, CSE
Michael Robichaud, MasterCard
Chad Royale-Pascoe, Boys and Girls Clubs of America
“You can’t just take a check and say, ‘Fine, use my logo,’” said Flo Bryan, senior vice president of cause and diversity marketing at CSE. “It has to be authentic, and it needs to be a story that is integrated well. It’s all about being able to hit multiple passion points for the consumer.”
There also has been a shift in thinking among the causes in the industry, as well, said Michael Robichaud, senior vice president of global sponsorships at MasterCard. “It used to be the case that when the one person who cared about the cause left a corporation, that’s when the check stopped coming,” he said. “Cause-based organizations now understand that the partnership has to be mutually beneficial over time.”
Chad Royale-Pascoe, national vice president of corporate and cause partnerships at
the Boys and Girls Clubs of America, said that one of the most important steps on the road to that beneficial relationship is to be very clear on the goals of each party. “Each partner we work with has different goals and results in mind regarding our relationship, and it’s much better when we’re up front and honest about what sort of goals we have in mind,” he said. Royale-Pascoe highlighted his organization’s relationship with Buffalo Wild Wings, in which the restaurant chain is measuring the success of its partnership by the number of kids who sign up for team sports.
Quick takes from the panel:
On interest in partnering:
Tom Brasuell, vice president of community affairs at MLB, said that while the league has even more interest from sponsors in being aligned with the league for a cause, as well as from the causes themselves, it’s now choosing those relationships carefully. “We actually have a lot fewer than we used to have, as we have decided that we wanted to go with partners that are really interested in the specific causes,” he said.
On the extended reach of cause marketing:
Robichaud noted that MasterCard’s sports cause marketing partnerships have resonated with the female audience, a result that wasn’t necessarily intended but proved to be something the company is proud of.
On shared success between company and cause:
“You can do good by doing good, and there’s nothing wrong with that,” said Bryan.