Sports Marketing

Pee Wee Leagues to College Football and the NFL

Sports Marketing

Long been an area of interest to students and businesses alikePrimarily reflected in the sheer dollar volume of ticket sales, merchandising and TV rights sold

Areas of InterestProfessional and College Football and

BasketballNASCARMajor League BaseballTennisGolfGambling???

Marketing Issues

Product Branding – BCM Design Merchandising Players/Coaches Prestige of City?

Pricing TV Rights Ticket Prices Fundraising

Distribution Location of Team Time and Place Games

Played On-Site vs. Broadcast

Promotion Advertising vs. PR Sales Promotions Direct Marketing Issues

Current Events

NBA West Finals – What’s going on with the Lakers

Steroids and baseball controversy – Caminiti - MVP 1996

NASCAR and INDY controversies

Star Wars and Spiderman continue to rule

Friends top TV program for the season

Other Topics of Interest

Role of Women in Sports

Role of the Media

Importance of Personal Endorsements

Sponsorships

Fan Support

College Football

Pros Raises a bunch of

money! TV rights,

merchandising, tickets Increases national

profile of the university Assists in recruiting for

programs Engenders loyalty and

enthusiasm with alums

FundraisingParticipation in Conference Proceeds

National TV Rights (I.e., Notre Dame)

Donations from Alums

Ticket Sales

College Football

Cons Funds raised not

shared Ethics

considerations with grading, schedules and absenteeism

Mission of the University

Negative Publicity

College Football

Expenses of Program, Coaches, Travel, Opportunities

Role of Alumni and Athletes and Coaches

Perks and the NCAA

Negative PublicityAlabama Football Coach’s

indiscretions/ Resignation

Tennessee NCAA violations? Money issues

Negative Publicity

Academics vs. Athletics Vandy and its woes Stanford and Duke???

Distraction Element

Examples Miami, SMU, TSU, Notre Dame Investigations

Immediate publicity vs. long-term impact on program and university

Debate of 1A vs. 2A

Why should a school invest in the development of a 1A football program?What are the advantages and disadvantages?What are the payoffs?

NCAA Concern and Debate

Do the players get a fair deal? Coaches make

$300K plus a year Universities

generate merchandising, ticket sales, TV Rights $

Media sells papers, generates ratings and sells ads

NCAA Concern and Debate

NCAA bans players from any form of paymentUniversities provide educational expenses, room and board, travel arrangements and funds

NCAA Concern and Debate

Debate centers around questions of “fair compensation” No pie-sharing TV and recruiter

exposure, free education

48% players violate rules

NCAA Concern and Debate

Possible SolutionsHold Firm and Enforce PoliciesProvide a Monthly Stipend

Are all athletes equal? Gender and Sport Bias Issues?

Professional Recruiting Limits?None before junior/senior year?Age limits?

Women and SportsPerpetually under-funded and promotedRecent Court rulings require equal opportunity and accessTennessee Women’s Basketball and Soccer teams have increased visibilityWNBA

Role of Women in Boxing

First Male vs. Female Fight Shameless sideshow

or equal time? Increased ratings?

Interest in Muhammed Ali’s daughter KNOCKOUT

VICTORY

Women in Tennis

Draw very respectable ratings

Purses still lag behind men’s

Hurt by negative publicity

Younger ages and lack of racial diversity of competitors a concern

Product IssuesProduct AttributesTangible – atmosphere, sports

performance, eat, drink and be merry! Intangible – feelings of belongingness,

nostalgia, hedonic consumption

BrandingAssociated ImagesTies to Cities, Schools*

Product IssuesResearch shows that those organizations that develop a brand image that is distinctive to the area and target market most successful

DistributionLocation of teams Placement in new

markets vs. established markets

Geography of TV Coverage and Fan Appeal

Timing of Games

PromotionSponsorships in golf and tennis Recall is high Audience very similar

Sales Promotions Contests, free tickets

and tripsMerchandising and Specialty advertisingPublicity Newsworthiness and

coverage

Advertising

Superbowl Fox TV earned $150

million in ad revenues

Ads sold for $2.5 m this year

PromotionRole of marketing communications vital in establishing brand image

Advertising Role of the message

and medium separate

Sponsorship Message and media

elements inextricably linked

PricingNumber and Level of Competitors Titans Tennessee Vandy MTSU Predators Sounds

Out of Pocket Expenses $300 for a family of 4

with Titans

Professional Sports Teams

Four Distinct Target MarketsFans that attend games, watch and

purchase merchandiseTV and other media companies which

purchase rightsCommunities that build facilities and

support local clubsCorporations that may purchase teams

outright, sponsorships, etc.

Houston Deal for NFL

Originally conditionally awarded LA an expansion Needed suitable stadium site

$700 million fee; $310 million for stadium = total of more than $1 billion

Nation’s #11 TV market (means ad revenues and merchandising

No return of the Oilers moniker!

Houston and the Billionaire

New realignment of 8 divisions of 4 teams each

Houston will return to AFC

St. Louis and Arizona abstained in vote over realignment issues

Promise of Superbowl in 2004 (probably)

Prices of an Expansion

Cleveland credit card magnate Al Lerner paid a mere $530 million for the new Cleveland Browns

However, the Redskins and the stadium deal went for $800 million last year

So the selling point went up from original projections of $350 million to $700 million + stadium

Stadium Proposal$310 million $195 in public funds What was the reason

Oilers originally left?

Retractable dome

Coaching Considerations Butch Davis?

Season Opener in 2002

SuperbowlAd time initially sold for $2.5 million per 30 seconds

As a result of teams participating – value of ad space deteriorating..why?

WCW vs. WWFTurner’s WCW significantly under performs relative to WWF Strategy to hire away the head writer of WWF’s Smackdown, Raw is War and Sunday Night Heat!