Return on Commitment1 MaddockDouglas.com Copyright 2010 MaddockDouglas, Inc.

Return on Commitment™ (R.O.C.)The Ultimate Measurement Tool

for How to Attract and Keep Fans

Raphael Louis VitonRaff@maddockdouglas.com

Copyright 2010 Maddock Douglas, Inc.

Return on Commitment2 MaddockDouglas.com Copyright 2010 MaddockDouglas, Inc.

Why R.O.C.?

• Do you really know the answers to these questions…

– Why do your fans go to your sporting event instead of doing something else (havingdinner with friends or seeing a movie)?

– How much are your fans “investing” in being a fan, and are they getting what theyexpect in “return” for being a fan?

– Ultimately, do you know how to best serve your fans - and provide them with the bestoverall experience (and get a higher share of their entertainment dollars)?

– And, are your marketing communications and promotion efforts measured againstthese metrics over time - and improving because of them?

• We noticed that NO ONE had a true quantifiable measure that provided specificanswers to these questions.

• Instead, teams relied on false assumptions for what mattered - like providing agreat “fan friendly” environment or winning (those rank 6th and 11th,respectively, in terms of what fans find important)

• So we invented Return on Commitment - a single number to measure all yourefforts compared to other entertainment options

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> Maddock Douglas’ R.O.C. (Return on Commitment)is a critical diagnostic tool that identifies what yourfans care about most in return for their commitmentto a sports franchise.

> MD has learned, from years of sports fan andfranchise research, that the R.O.C. is an essentialmeasurement of the overall health of a team andthe loyalty of its followers.

> The R.O.C. is derived from understanding the relationship between three key elementsof fandom investment: Time, Money and Emotion

> Time spent following the team: attending, watching, reading about, talking with friends

> Money spent on all aspects of fandom: games, merchandise, technology, fantasy sports,betting

> The emotions fans feel over the highs and lows of a season

> The flip side of the R.O.C. is the return fans get from their time, monetary, andemotional investments in their team – leading to renewed commitment over time

What is R.O.C.?

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Does R.O.C. Matter?• We’ve utilized R.O.C. for teams and we know unequivocally that

it DOES matter• Fans who report a high “return” are far more valuable than

those who report a lower return:– They spend more annually - 2.3x more– They have a stronger commitment to the team and are more likely

to say their commitment is increasing– They are more likely to say they plan to attend more games next

year than they did this year– They are more likely to say they plan to spend more next year than

they did this year

Q: How big is the return you get for the time, money, andemotion you put into a game?

Spen

ding

Inde

x:Lo

w R

etur

n =

100

Annual Game Expenditures

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R.O.C. Outcome:Entertainment Option Blueprints for ActionAnother important output of R.O.C. is understanding what truly is important tofans - and how well teams perform relative to other entertainment options

– We measure what’s desirable to fans generally in an entertainment option, aswell as how being a fan of a team compares on those attributes to otherentertainment choices

– Thus, we can see how teams “compete” for entertainment dollars in a competitivecontext. The tool to do so are Innovation Blueprints (1/ea.entertainment option):

Return on Commitment6 MaddockDouglas.com Copyright 2010 MaddockDouglas, Inc.

Return Index (0-10 scale, Mean = 6.8)

R.O.C. Outcome:Score Comparison to Other Entertainment Options - EXAMPLE

Return on Commitment7 MaddockDouglas.com Copyright 2010 MaddockDouglas, Inc.

How can you get R.O.C. measured for your team?

• Two Options:

- Multi-sponspored (4-5 teams from similar regions - e.g., NY, Chicago, LA)

- Shared data (except competitiveteam data)

- Custom study- Uniquely tailored & proprietary

data- Choice of competitors, attributes

& R.O.C. scoring

Option 1: Option 2:

Price: $150,000 per client(+ 10k per focus group)

Price: $50,000 per team sponsor(+ 10k per focus group)

Maddock Douglas Knows Sports Fans

8©2008 Maddock Douglas, Inc. All rights reserved. No part of this presentation may be reproduced or duplicated without prior written consent.

Maddock Douglas Knows Sports Fans

> We enjoy a long and storied relationship with ESPN, collaborating on all types ofengagements to better understand the relationship between fans and theirfavorite sports. Prior engagements include:

> New product/service development: leveraging to ESPN brand to understand potential viability of new consumerproducts and services

> ESPN the Brand: large scale segmentation study to understand the role of sports in the lives of allAmericans — men, women, children, sports fans and non-sports fans

> ESPN Mobile: work to understand interest in the ESPN Mobile phone concept, size the market and developphone packages

> ESPN The Magazine: all of our research was published in the magazine> Sports Nation: research to understand how Americans perceive sports and the role sports plays in their lives> Franchise Rankings: worked with ESPN to develop a system to rate and rank each sporting team franchise in

North America on a series of key criteria. They publish a franchise rankings issue annually.> Magazine subscribership study: research to understand the psychographics of ESPN The Magazine

subscribers> New magazine concept: to determine interest in a new magazine concept among the target market, and refine

the concept> ESPN Enterprises: work to determine consumer interest in purchasing DVDs compiled from ESPN and ABC

television footage> ESPN Outdoors: work to understand the world of outdoor sports: fishing and hunting> ESPN.com Site Visitor: work to understand who the ESPN.com Site Visitor is, their viewership patterns, usage,

behaviors and site ratings

9©2008 Maddock Douglas, Inc. All rights reserved. No part of this presentation may be reproduced or duplicated without prior written consent.

10©2008 Maddock Douglas, Inc. All rights reserved. No part of this presentation may be reproduced or duplicated without prior written consent.

Maddock Douglas Knows All Segments of Fans

> We worked with ESPN to better understand the relationship betweenAmericans and sports “fandom.” The sports fan market reaches more than80% of Americans and the client wanted to explore how sports intersectswith the lives of Americans — sports fans and even non-sports fans toleverage their brand with advertisers.

> Specific objectives included:> Go beyond the syndicated research to understand the values, lifestyles,

personalities and psychographics of Americans — intertwined with how theyconsume sports

> Develop a landmark segmentation to provide insight and guidance for advertisersin terms of three dimensions:

> Differing potential for marketers of all categories> Messages that resonate with each of the segments> Media properties that these segments turn to/use

> Provide the basis for tracking/measuring change within the sports fan marketplacein order to continuously remain “on top” of the sports fan marketplace

11©2008 Maddock Douglas, Inc. All rights reserved. No part of this presentation may be reproduced or duplicated without prior written consent.

12©2008 Maddock Douglas, Inc. All rights reserved. No part of this presentation may be reproduced or duplicated without prior written consent.

Maddock Douglas Knows Professional Sports Teams

> We have partnered with ESPN The Magazine in conducting the FranchiseRankings for all the NFL, MLB, NBA and NHL teams since 2003. The overallobjectives of the study are:

> To create the basis for ranking all 122 major professional sports franchises in theU.S. and Canada, in terms of the return they provide fans for the time, money andemotion they invest following sports in general, as well as their favorite sportsteams specifically.

> ESPN The Magazine then uses that data to rank the franchises, based on thedesirability ratings of 21 individual attributes that look at all aspects of fandom, bothon and off the field.

13©2008 Maddock Douglas, Inc. All rights reserved. No part of this presentation may be reproduced or duplicated without prior written consent.

Maddock Douglas Knows The State of the Fan

> In 2005, MD developed for ESPN a research study to understand sports fansin America — the “State of the Fan.” Research conducted in 2006 expandedon many of the themes previously explored. The 2007 version added inseveral team, league and player comparisons.

> Overall objectives are to understand the State of the Fan in terms of:> Attitudes> Behaviors> Sports consumption> Reaction to major/current issues

> In addition, the following themes were explored:> Betting and cheating> Fantasy sports> Big 4 sports leagues> Media preferences> Game attendance