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May 15, 2009
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Franchises

Star Power, Success Behind Teams' Forbes' Brand Value Increases

Penguins' Brand Value Has Grown By NHL-
Best 88% Since Selecting Crosby In '05
While star athletes "add visibility and prestige to a team's name, broadening its ability to make money from fans and sponsors," winning "helps too," according to Peter Schwartz of FORBES, which unveiled its annual list of the fastest-growing team brands in the four major sports. After selecting C Sidney Crosby with the first pick in the '05 NHL Draft, the Penguins' brand value has grown "by an NHL-best 88% over the last three seasons" to $28M. The Penguins during the '07-08 NHL season "raked in $50[M] from sponsorships, naming rights, local media, tickets and merchandise." Of that amount, $12.5M "can be attributable to the team's name." The franchise is "worth 2.2 times their total revenue," as their brand value is $28M, up from $15M four years ago. The Cavaliers' brand value grew an NBA-best "46% over the past three seasons, to $54[M], versus 10% for the average NBA team brand," which is now $39M. The annual value of the Cavaliers' local media deals has "tripled to $24[M] since drafting" F LeBron James in the '03 NBA Draft, and ticket sales at Quicken Loan Arena also "tripled during the same stretch to $54[M] last season." The defending AL champion Rays posted the largest brand value increase in MLB, as the team's revenue "jumped 40% since 2005 to $160[M]," resulting in a "115% growth in the Rays brand over the past three years" to $28M. The team's total value increased 53% over that time, to $320M. The defending NFC champion Cardinals posted the largest brand value increase in the NFL, as in the past three seasons the team's brand value has grown by a "staggering 143% to $68[M], almost double the pace of the second-ranked" Giants. The following lists the five fastest-growing team brands in each sport over their past three seasons (through '07-08 for NHL and NBA, through '08 for MLB and NFL), their percentage growth in brand value over that time and their current brand value (FORBES.com, 5/8).

---------- MLB ----------
---------- NFL ----------
Rank
Team
Growth
Value
Rank
Team
Growth
Value
1
Rays
115%
$28M
1
Cardinals
143%
$68M
2
Mets
83%
$159M
2
Giants
75%
$100M
3
Dodgers
75%
$112M
3
Cowboys
74%
$207M
4
Cubs
62%
$115M
4
Jets
73%
$90M
5
Brewers
62%
$34M
5
Colts
71%
$72M
---------- NBA ----------
---------- NHL ----------
Rank
Team
Growth
Value
Rank
Team
Growth
Value
1
Cavaliers
46%
$54M
1
Penguins
88%
$28M
2
Celtics
44%
$56M
2
Oilers
71%
$22M
3
Magic
40%
$42M
3
Canadiens
69%
$47M
4
Jazz
38%
$40M
4
Hurricanes
55%
$19M
5
Raptors
38%
$36M
5
Sabres
54%
$19M

TAKES MORE THAN WINNING: In Pittsburgh, Timothy McNulty wrote under the header, "Penguin's Marketing Has Turned Team Into One Of The Fastest-Growing Brands In Sports." The team "stupendously ... is more popular now than when Mario Lemieux was on the ice." The team has sold out every game at Mellon Arena for the past two seasons, and Penguins President David Morehouse said, "When we had names like Mario Lemieux, Jaromir Jagr, Paul Coffey and Kevin Stevens, we never sold out an entire season. It's not just about talent and not just about winning. We won two Stanley Cups and didn't sell out. We knew because of that there needed to be some work." McNulty noted the team "started new customer service initiatives for season-ticket holders (including players hand-delivering tickets) and outreach to younger, single-ticket buyers through its 'student rush' offers." Also, Pittsburgh sporting goods retailer Honus Wagner's "biggest sellers these days are Evgeni Malkin shirts instead of Sidney Crosby ones," and Morehouse was "careful to say that as much as [Crosby] was the catalyst for the team's marketing success, it was still dependent on management to build something out of his draft choice"  (PITTSBURGH POST-GAZETTE, 5/13).

ONE-MAN SHOW: In Milwaukee, Don Walker wrote LF Ryan Braun is the reason the Brewers "rank with such teams as" the Rays, Mets, Dodgers and Cubs in terms of brand value increase. The Brewers also drew more than 3 million fans last season, an "impressive achievement for a small market" (JSONLINE.com, 5/13).


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