Thursday, December 27, 2012

Emirates Airlines Acing the Sports Landscape


Earlier today, the ATP and Emirates Airlines announced a new global partnership, one that will become official next Tuesday on New Year’s Day. When the ball touches down in Times Square, Emirates will become both the Official Airline of the ATP World Tour and the new title sponsor of the ATP Rankings.
The Dubai carrier will also become an official partner of the season-ending Barclays ATP World Tour Finals.

If you are a frequent visitor of the blog, you’ve already noticed this is now my third article this month that centers on an airline’s investment in sports.

To be clear, this is not a new development, but rather a trend that has become increasingly visible over the last six months. For years, United and American Airlines dominated the space, not only with their league partnerships, but also with naming rights on two of the country’s most visible arenas. Michael Jordan won 6 rings at Chicago’s United Center, while LeBron James won his 1st last year at the Miami Heat’s American Airlines Arena (not to be confused with the American Airlines Center, home to Mark Cuban’s Dallas Mavericks).

For obvious reasons, airlines are most interested in sports with an affluent following and/or participant base. United Airlines has done well in securing the titles of Official Airline of the PGA Tour and the ING New York City Marathon.

Airlines, like most other corporate sponsors, want to partner with another hot brand.

Just last week, JetBlue agreed to terms to become the Official Domestic Airline of the Barclays Center. Similarly, Turkish Airlines has signed endorsement deals with Lionel Messi and Kobe Bryant, two athletes with enormous brands worldwide.

While the ATP may not be the sexiest brand in today’s sports complex, it does attract a generally well-off demographic. According to a 2012 report by Scarborough Research, U.S. Open attendees have a median household income of $115,800; up from the average of $69,300 for all adults residing in New York.

This also helps explain why Emirates outbid several other airlines to become the Official Airline of the U.S. Open. Though the terms of the ATP deal are not yet known, the seven-year deal with the USTA cost Emirates $90 million, not including $2.5 million per year in activation dollars.

Emirates’ involvement in sports is not limited to tennis, but extends into other enormous global brands; Real Madrid FC, Arsenal, the Ryder Cup, and the Rugby World Cup among them. The ATP is just the most recent organization that has benefitted from Emirates’ seemingly bottomless sponsorship budget, one the airline is smartly using to their advantage in order to aggressively gain global market share.

While the recent love affair between sports and the airline industry is nothing new, it has become increasingly competitively --- and costly --- for any airlines seeking to make a significant gain.

Friday, December 21, 2012

Red Bull Spreads Its Wings, Turns to Media Sales

Over the last decade, Red Bull has bolstered its list of brand endorsers in an effort to develop content that would appeal to a larger audience. In particular, the brand has targeted athletes and entertainers that are attractive to young consumers. Red Bull has worked with their endorsers, which include 24 year-old PGA Tour sensation Rickie Fowler and 19 year-old pro surfer Kai Lenny, to create branded video content. The company has produced media stunts such as Rickie Fowler's "Red Bull Capital Drive," in which the golfer hit wedge shots to a green that was installed in the middle of a fountain in downtown Washington D.C. Another popular video shows Miami Dolphins' Running Back Reggie Bush flying a small Red Bull-branded plane high above Salzburg, Austria. In all, the brand has produced almost 1,000 hours of footage --- and expects to ramp up the content in 2013. 

This strategy has paid off in a big way, expert parachutist and Red Bull endorser, Felix Baumgartner's supersonic fall reaching 32 million views alone. Their creative marketing plan has helped boost sales to over $7 billion in 2012. However, the company now has plans to use this content not only to entertain their young consumers, but perhaps to generate some new revenue streams.

According to the Wall Street Journal's John Jurgensen, Red Bull, often admired by industry analysts for their boldness, is now looking to "sell downloads of its self-financed movies, licensing its shows to TV networks and pocketing ad revenue from its thriving YouTube channels." Red Bull's bottom line would no doubt benefit by generating these new revenue streams. However, they would likely risk alienating their young consumer base, many of whom may not be able to afford the paid-downloads. 

With a monthly magazine that has an existing international circulation of 2.7 million, an ongoing program  on NBC, and an endorser list that includes a number of celebrities well-suited to create buzz-worthy content, Red Bull is in a great position to capitalize financially on the success of their media programming. However, with already-booming retail sales, and an abundance of brand-loyal Generation Y'ers, it is very much debatable whether they should attempt the transition into media sales.

Jetting into Brooklyn

In a recent blog post, I discussed my recent visit to the Barclays Center, and the benefits the arena offers to corporate sponsors. Based on a couple recent deals, it is rather apparent that brands are beginning to recognize this value for themselves.

JetBlue is just the newest of several large corporate partnership deals (others include American Express and Calvin Klein) for Barclays Center CEO Brett Yormark and team. The New York-based airline signed an official deal on Thursday to become the Official Domestic Airline of the arena. JetBlue is the second airline to  partner with the Barclays Center, the first being Aeroflot, a Russian airline whose destinations are limited to Eastern Europe and Asia. Aeroflot's connection to the center likely came via the facility's wealthiest tenant, Brooklyn Nets Owner and Russian Billionaire Mikhail Prokhorov.

While JetBlue is now the Official Domestic Airline for the Barclays Center, the Brooklyn Nets actually fly Delta Airlines. It has not been reported whether this will change in light of the recent deal.

Despite the existing presence of both Delta and Aeroflot, the partnership with the Barclays Center makes a great deal of sense for JetBlue. Given the company's home-base at John F. Kennedy International Airport, JetBlue is working to establish itself as New York City's airline. Since Madison Square Garden and Yankee Stadium have partnerships with Delta Airlines, and MetLife Stadium is tied in with United Airlines, this was the most logical sponsorship opportunity.

There is also an undeniable link between JetBlue and the Barclays Center. Just as the Barclays Center is a new facility and has reinvigorated sports fans in Brooklyn, JetBlue is still a relatively young brand, one that is working to gain market share from the other giants in the industry. Both JetBlue and the Barclays Center are open to trying new things and pushing the envelope. This surely appealed to JetBlue's CMO Marty St. George, who made the following statement, "Barclays Center represents renewal and innovation in New York, much like JetBlue was introduced over a decade ago."

Throughout the month of January, JetBlue will sponsor a "Bound for Brooklyn" sweepstakes, which will offer  fans the opportunity to win round-trip plane tickets to New York City, as well as tickets to an event at the Barclays Center. Yesterday, the brand celebrated their new partnership at their JFK Terminal with a branded basketball court, enabling fans to shoot hoops, win flight tickets, or tickets to Brooklyn Nets games.  The Brooklyn Nets' dance team was also on-site to greet travelers at Terminal 5.

Through their partnership with the sparkling new Barclays Center in Brooklyn, JetBlue continues to work towards their ultimate destination as New York City's premier airline. The success of this partnership will help measure just how much both brands have arrived.

Monday, December 17, 2012

Hello Brooklyn

Ever since I first purchased my tickets for the Brooklyn Hoops Winter Festival, I had counted down the days to the (obviously) inaugural event. Not only to see my Alma Mater, the #2 ranked Michigan Wolverines, but also to see the new pride of Brooklyn, the Barclays Center.

Many of friends --- some who saw the Rolling Stones, others who had been for Nets' games --- raved about the facility on Atlantic Avenue. After attending the Hoops Festival, I could not agree more. The stadium is not only a beautiful place to watch basketball, it is also a sponsor's dream.

First off, the Barclays Center is accessible by nearly all major subway lines, making it easy to get to for those working or living in Long Island, New Jersey, Connecticut, or any of the city's five boroughs. The significance for sponsors is simple hospitaliy opportunities for clients, as wel as a diverse audience. The stadium neatly lsits atop the subway stairs, giving visitors the impression that they are walking directly up into the arena --- very similar to Washington D.C.'s Verizon Center.

The arena itself is fan friendly as well. With a wide variety of Brooklyn-based eateries, the stadium offers something for everyone. Whether it be a Nathan's Brooklyn Hot Dog, a cuban sandwich from Havana, or an enormous cheesecake slice from Junior's, all visitors should leave full. The service is also quite impressive, with attendants even working the condiment kiosks.

In addition to the concessions, there are also beautiful lounges, bars, and team shops surrounding the concourse. The Nets' branding dominates the area, with their black-and-white color scheme unavoidable to the eye. Different team partners have branded lounge areas along the concourse, where fans can relax and interact. While most of these are open to the public, there are several private areas, such as Jay Z's 40/40 club, the perfect spot for any corporate gathering, or in this case, a pre-game tailgate for the University of Michigan Alumni Club of New York.

There are also innumerable branding opportunities within the playing area. The jumbotron is state-of-the-art and broadcast partner commercials during most time-outs. The ring-like area beneath the jumbotron was used mostly for branding purposes. For the Hoops Festival, it displayed branding for Honda, the title sponsor of the event, seemingly throughout the entire game. Other opportunities included a partner CEO --- accompanied by Barclays Center CEO Brett Yormark --- delivering the gameball and several sponsored fan contests on-court during timeouts.

The Barclays Center was packed full for the game which, irregardless of the passionate and New York-based Michigan alumni, is impressive and a testament to the Center's sales team. As the organization continues to execute, and sell into, this type of large events, they will learn how to even more effectively activate in their new palace. The stadium, with beautiful corporate suites between the 1st and 2nd levels, has so many tremendous benefits for partners.

Brands eager to gain market share in Brooklyn, and the rest of New York for that matter, will soon recognize these opportunities within the Barclays Center. The arena's impressive array of founding partners, which includes Stoli, Calvin Klein, Geico, and American Express, is proof of the facility's immediate value to brands, a big testament to Yormark and his team.

Saturday, December 15, 2012

Beers on Saturdays

When the University of Minnesota opened their new outdoor football facility, there was little doubt that it would generate new revenue streams for the school. However, there was criticism.

Could the school develop a football program that would merit such a quality stadium? Would the team's supporters attend games at TCF Bank Stadium in the freezing weather during the 2nd half of the season?

While the answer to the former is very much TBD, the program has taken several steps to enhance the fan experience in order to attract students, alumni, and any others living in or around Minneapolis.

One of these aforementioned steps was the administration's decision to sell alcohol at TCF Bank Stadium. Even without taking into account the mandate's impact on the school's attendance, which has increased dramatically since the school's move from the Metrodome, the decision has quite literally paid off.

According to a report by the Sports Business Journal, the University of Minnesota sold between 12,000 and 13,000 cups of beer per game, totaling over $900,000 in alcohol sales over the entire season. Given the struggles of most athletic departments to make profits, one would expect many other schools to begin contemplating the sale of alcohol.

When considering that TCF Bank Stadium has one of the lower capacities of the facilities for BCS schools, the $907,000 figure would likely be far surpassed at schools like Ohio State and Tennessee. With a more passionate fan base and stadiums almost double-the-size, these schools could bring in over $2 million annually.

Another potential benefit to alcohol sales? Home-field advantage. Many student sections are empty at kickoff because the fans are trying to maximize the tailgating experience and drink up every last beer. If alcohol were available at the game? Students may show up earlier --- and louder. A more raucous --- and hydrated --- crowd could lead to an improved home field advantage.

Though the financials are obvious, the moral decision is a bit more challenging. Do Athletic Directors and University Presidents create a potentially dangerous situation for their students, many of whom are underaged? Not to mention the thousands of other fans that drive long distances back home after the games are complete.

Thursday, December 13, 2012

Turkish Airlines Taking Off

In order to attain their lofty goals of building a larger network of destinations than any other airline in the world, Turkish Airlines is employing some of the world's hugest stars.

Kobe Bryant and Lionel Messi, two of the world's most recognizable athletes, are the focus of Turkish Airlines' new "Legends On Board" video. The 1-minute commercial, which has garnered over 18 million views in the first four days, features Bryant and Messi competing for a young fan's attention.

To some, the video may resemble Gatorade's  "Anything You Can Do, I Can Do Better", featuring Michael Jordan and Mia Hamm. Regardless, the campaign has already gone viral, no surprise given the athletes' popularity worldwide.

Turkish Airlines has previously featured Caroline Wozniacki and athletes from Manchester United, which uses the airline as its official carrier. However, in order to expand its destinations from 200 to 250, Turkish Airlines executives have recognized the need to elevate their level of endorsers. Based on the immediate success of the video campaign, it seems that Turkish Airlines' marketing strategy may pay off. An important mark of the company's financial health, their free spending is not limited to their marketing budget. Instead, the airline recently purchased 15 new 777 planes from Boeing, increasing their capability to fly long routes.

While Kobe Bryant has served as a spokesperson for Turkish Airlines since 2010, Messi's appearance marks a new partnership for the athlete. However, the endorsement was by no means random. First, Turkish Airlines has been the official carrier for Messi's FC Barcelona club. Second, the release of the video campaign comes just days before the introduction of the airline's new route from Istanbul to Buenos Aires, capital of Messi's native Argentina.


Wednesday, December 12, 2012

Silicon Valley's Team

A long-storied franchise and a definite Super Bowl contender in 2012, the San Francisco 49ers have officially turned their attention to the future.

And not solely on the playing field with the recent promotion of their 25 year-old quarterback Colin Kaepernick, who has taken the league by storm over the last four weeks.

The San Francisco 49ers' front office has also shaken things up in order to get a leg up on the competition.

In an effort to maximize certain inefficiencies, as well as best position the organization for the next decade, 49ers' CEO Jed York has reached into nearby Silicon Valley for some of the area's brightest minds. Rather than merely consulting with these individuals, he has decided to take a more aggressive approach, putting them on staff full-time.  By tapping into the tech world and hiring some of the top executives in the industry, York has ensured that one of the NFL's tradition-rich franchises stays relevant for years to come.

The benefits can be seen both on and off the field. York has utilized his tech experts to innovate the draft scouting process through the development of a database that is not only efficient, but also accessible by players, coaches, and front office personnel alike. His new hires have also helped better the fan experience in several ways. For example, fans can now order food and merchandise from their smart phones, meaning they miss less actual game time. Stadium attendees are also informed of chants and when exactly they should make the most noise.

By taking advantage of the wealth of resources in nearby Silicon Valley, York has positioned the organization for success in the coming years. His brilliant maneuvers have also ensured that the team will be ahead of the curve as the league becomes increasingly dependent on both mobile and digital.

When the 49ers' new stadium opens in Santa Clara in 2014, one can be sure it will be complete with the best technology advancements on the market. For one, York's state-of-the-art stadium will be powered via solar energy.

Even more exciting for those in the Bay Area? The stadium will likely play host to the Super Bowl in either 2016 or 2017. If Kaepernick continues to improve as quickly as the organization's front office innovates, the team may just be the first ever play the Super Bowl in their home stadium.

Saturday, December 8, 2012

NCAA Loosens Restrictions for Sponsors at Final Four

On the same day that UEFA made one monumental decision that will provide their global partners increased exposure, the NCAA announced a move that will provide corporate sponsors unparalleled access into one of the year's biggest sporting events.

The NCAA, led by Mark Lewis, EVP of Championships and Alliances, and Dan Gavitt, VP of the Men's Basketball Championship, communicated that they will be loosening the restrictions on corporate involvement throughout the March Madness, and most especially, at the Final Four.

Corporate partners, such as Coca Cola and AT&T, will be more integrated into the event presentation. As  a result, they will appear on more court-side digital signage, as well as more messaging on the video boards.

There is also the potential for more ownable assets at the Final Four, including the potential for a mini-concert between the two semifinal match ups. Other ideas include a half-court shootout between fans of the competing schools, similar to those which are sponsored by Dr. Pepper during halftimes of the NCAA Football Conference Championships.

The announcement comes as part of the NCAA informing media and fans that they will be altering the presentation of the event in order to make them more fan-friendly. This will include new fan engagement opportunities, as well as new seating allotments to fans of the schools that previously belonged to members of the media.

However, while Mark Lewis and the NCAA may paint the picture that these moves are to better the fan experience, the primary motivation for the changes is financial. Loosening the restrictions on corporate sponsors and offering new access makes their event significantly more appealing to brands, both current partners and potential prospects.

Friday, December 7, 2012

Euro 2020


Soccer fans are not the only ones smiling in response to UEFA’s latest news.

Just weeks after it was revealed that the Euro Cup competition may be expanded from 16 to 24 in future years, it was announced that the 2020 tournament may be staged in 12 cities across Europe.

For the sport’s passionate followers, this is hugely exciting news. Not only will the competition include more countries, and therefore more followers, but it will be played in some of soccer’s most iconic stadiums, including London’s Wembley and Madrid’s Bernabeu. With the simplicity and affordability of transportation throughout Europe, this is undoubtedly a feasible endeavor.

As soccer’s popularity continues to skyrocket, UEFA has seen both of their prized possessions --- the Champions League and Euro Cup --- have taken on increased significance. Both competitions have seen increased attendance and higher television viewership --- thanks at least in part to those watching throughout the United States. With almost 1.5 million attendees, Euro 2012 set the record for the highest aggregate attendance in the competition’s history.

By expanding the tournament by 8 teams, UEFA is bringing in new audiences and inserting additional games into the schedule. In doing so, they are making the property more appealing to their global corporate partners, which already include A-listers Coca-Cola, McDonald’s, Adidas, and SHARP.

On top of their global partners, UEFA also brings in national sponsors for each individual event. For Euro 2012, this consisted of three brands in each Poland and Ukraine. By playing the 2020 tournament throughout Europe, UEFA creates new opportunities for local/national partner relationships. Additionally, with the competition being staged at Europe’s most recognizable stadiums in the continent’s largest urban centers, there is undoubtedly the potential for brands to sponsor individual matches, or at the very least design activations around specific games.

While UEFA understands that neither Euro Cup nor Champions League will ever rival the FIFA World Cup, they are doing everything in their power to generate exposure for their premier properties.  In doing so, they are transforming a 16-team tournament played in a single (or at most two) countries into a 24-team competition across Europe, where every single match is an international event in its own.

Thursday, December 6, 2012

Badgers, Big Ten Take Brand Hit


Prestige, Location, Facilities, Personal History, and Money

Five very logical reasons that often shape the decisions to coaches to change jobs

For Bret Bielema, however, it is rather difficult to pinpoint exactly which of these elements motivated his decision to leave his post as Head Football Coach of the University of Wisconsin Badgers, whom he has now led to three straight Rose Bowl appearances.

No offense to Fayetteville, “the vacation, recreation, and sport capitol of Northwest Arkansas” and home to the Clinton House Museum, but Bielema did not leave because of the location. Madison is consistently ranked as one of the top college towns in the United States. With its beautiful lakefront location, innumerable options of great food and beer, and a charming downtown area, Madison has also been identified by CNN as one of the country’s best places to live.  

The University of Wisconsin also recently invested over $85 million for upgrades to their athletics facilities. This comes just 7 years after another $100 million facelift to Camp Randall Stadium. The upgrades include expansion of the already 7,000 square-foot weight room, renovations to the football locker rooms, team lounge, and coaching offices, and installation of the highest-quality FieldTurf in the country. Wisconsin Athletic Director, and former Head Football Coach, Barry Alvarez had been extremely aggressive in pushing for these facilities upgrades and was very much in Bielema’ s corner.

As for personal history? Bielema grew up in Illinois, played collegiate football at Iowa, and served as Wisconsin’s Defensive Coordinator prior to his promotion to Head Coach in 2006. With the exception of his two years at Kansas State, he has spent his entire life in Big Ten Country. So no, Arkansas was never a dream destination for Bielema.

Shortly after hearing the news of Bielema’s departure from Wisconsin, most pundits assumed that Arkansas must have blown Bielema away with their contract offer. However, after contract details were released, it appears his annual salary will increase $600,000 --- a bump up to $3.2 million from $2.59 million. While this is not an insignificant leap, Bielema likely could have received a raise in the offseason based on his recent success in the Big Ten. Additionally, his job will be far less secure as Head Coach of the Razorbacks than it would have been with the Badgers. With three consecutive Rose Bowl appearances, Bielema has earned himself some breathing room with Alvarez --- regardless of some questionable in-game time-management over the last few years. At Arkansas, he will be two 6-6 seasons away from re-gaining his spot on the coaching carousel.

In searching for the logic behind Bielema’s decision to accept the post at the University of Arkansas then, it leaves only one reasonable explanation:  prestige. Shocking to some, Bielema’s move represents the absolute dominance of the SEC over college football. And each of the conference’s institutions have benefitted immensely. With its recent expansion to the East Coast, the Big Ten is being hailed as a cash cow for universities. However, in reality, it is the SEC schools that have the most profitable athletic programs. In 2011-2, the University of Wisconsin football program made a seemingly huge profit of $20 million. However, this figure pales in comparison to the surplus of $37 million that the University of Arkansas earned.

Despite their 123 years of football, the 4th-oldest stadium in the country, and the famed student tradition of “jumping around”, Wisconsin football is simply not viewed to be as national significant as is Arkansas football. To be clear, the University of Arkansas has a deep-rooted football tradition. Bret Bielema will take over a program that has won 13 conference championships and laid claim to 45 All-Americans, thanks to legendary coaches such as Frank Broyles and Lou Holtz. However, Bielema left not because of a more-rabid fan base in Fayetteville or a team better-poised to compete for a BCS Championship in 2013. He left because of the one factor that the University of Wisconsin could not, and will never be able to, offer: membership in the SEC.

Wednesday, December 5, 2012

Lincoln Targets Younger Buyers


This is no longer your grandfather’s Lincoln.
Ford Motor Co. announced on Wednesday that Lincoln will have an ad during this year’s Super Bowl. The ad will be used largely to change viewers’ perception of the brand, rather than to generate sales in the short-term.
The brand, which is undergoing a facelift to attract younger luxury buyers, is also engaging Twitter users as part of their integrated marketing campaign around the big game.

111 million people watched last year’s Super Bowl. Pretty good, right?
Until you consider that the ad alone will set Lincoln back over $8 million, which is especially painful for a company that saw a 3% decline in sales over the past year.

Beyond the alarming cost of the commercial, is the Super Bowl really the right medium for Lincoln in their re-branding campaign? Yes, it will be seen by a wider audience than the brand’s traditional demographic. Especially during halftime where young females will no doubt be tuning in for BeyoncĂ©’s performance. But will it allow them to break through the clutter of the game’s other memorable commercials?
It seems that Lincoln’s other confirmed advertisements --- during both NBC’s The Voice and ABC’s Modern Family --- may in fact be better fits altogether.

Jimmy Fallon and Emmitt Smith have been tabbed as celebrity endorsers for the car. While both are recognizable faces, it begs the question whether either will appeal strongly to their targeted car buyers.

As for their Twitter crusade, there is little that can be evaluated until the campaign is actually launched. However, Lincoln’s interest in Twitter alone, where the average user is a 37-year old female, demonstrates their dramatic departure from their typical customer, a 65-year old male.
The question remains not only will Lincoln’s Super Bowl investment be worth their money, but also whether they can appeal to younger luxury buyers, without abandoning their traditional demo.

Tuesday, December 4, 2012

Trend Setter


Now playing in hipper-than-ever Brooklyn, Deron Williams is now setting some trends of his own. It seems D-Will is now employing his own reporters to cover the PG's life both on and off the court.

Athlete Interactive, which manages websites for over 20 athletes (including DeronWilliams.com and AaronAfflalo4.com), both publishes content and designs the layout of the pages. The websites have earned enough respect league-wide that the personal reporters are now receiving press credentials to games. Given the apparent success of the sites, it will be interesting to follow the growth of their portfolio over the next 18 months.

As athletes compete for the ever-growing pot of endorsement money, Athlete Interactive enables the individuals to increase their exposure by attracting visitors to the pages.

The customized content and in-depth looks into the players' lives allow fans a unique perspective. Additionally, it allows brands without large advertising budgets to capitalize on their athlete endorsements by maximizing impressions. Furthermore, the companies do not need to spend the time, or money, to build relationships with the teams or leagues.

While Deron Williams and his representatives at Excel Sports Management review all content before it is published, the biggest challenge remains maintaining the athlete’s voice, and not one of his or her publicists or sponsors. If athletes such as Williams and Afflalo prove successful at doing so, they will certainly attract a following, which will in turn make them increasingly appealing to brands.

Given the growth of digital platforms, particularly throughout the sports industry, we may be hearing much more from Athlete Interactive in the very near future.

Saturday, December 1, 2012

MLS Cup 2012

While soccer cannot yet compete with the core four sports in the United States, there is little question that there are reasons for optimism as to its popularity in future years.

For one, there is record interest in North America in European "football", most notably the Champions League and the English Premiere League, which now has weekly games on the ESPN family of networks.

MLS stakeholders also have to be thrilled with the season's annual finale, the MLS Cup.

Not only does the title game include the same participants as 2011, the Los Angeles Galaxy and the Houston Dynamo, but it is also being played in one of the league's premiere venues, the Home Depot Center.

Even more important, perhaps, it will showcase two of the sport's most recognizable names, international icon David Beckham --- playing his last MLS game, and Landon Donovan, the United States' World Cup hero.

With a packed stadium and an exciting final (with plenty of scoring) to boot, MLS executives have to be smiling. If this is indeed Beckham's last game in the league, he leaves it in a far better place than it was when he first signed in 2007. The crowd resembled European soccer hooligans, with scarves and organized chanting included, and the atmosphere was tremendous.

And, if the latest reports suggesting Beckham's plans to ultimately bring Europe's best to the MLS, are true, there is reason to believe that the league will soon be able to compete with the other major sports leagues in the United States.

Wednesday, November 28, 2012

Conference Tug-O-War

With College Football’s Conference Championship games fast approaching and the College Basketball season heating up, it feels so wrong that all of the attention is being paid to what is happening off the field, in board rooms and offices throughout the nation.

Louisville, Rutgers, Maryland, UConn, and Cincinnati would have been thrilled to know that in late November, their sports programs are headline stories on national news networks.
However, none of the above programs are competing for a BCS National Championship or winning early-season hoops tournaments. Rather, they are the universities that are engaged in the ongoing tug-o-war between conferences. In other words, they are relevant for all of the wrong reasons.
If nothing else, all of the conference realignment is an affirmation that college sports are now big business. Rutgers and Maryland are merely the two newest beneficiaries of the ever-growing Big Ten Network cash cow.
Traditionalists may blame the Terrapins for leaving the ACC, but who can blame them? The University of Maryland Athletic Department will now earn a rumored $10 million more a year, making them financially sustainable and preventing the termination of any of their non-revenue athletic teams. For those that will miss the rivalries with Duke and North Carolina, don’t rule out those two programs from jumping ship in the coming years. It will hurt Maryland fans that they will no longer have the opportunity to hassle the hated Blue Devils. But hey, there is always the increasingly lop-sided Big Ten-ACC challenge to maintain that rivalry.
At the end of the day, the decision for these universities is a financial one, one that will benefit their school’s brand. Something Under Armour Founder Kevin Plank, a reported proponent of Maryland’s move to the Big Ten, knows a thing or two about.
For the Big Ten, the additions of Rutgers and Maryland make perfect sense. In extending “Big Ten Country” to New York and Washington, D.C., the Big Ten Network will open the door to almost 20 million additional subscribers. This would lead to what many are estimating to be a $100 million gain for the conference as a whole. It also brings the league just two schools away from creating what would be the first true SuperConference.
Rumored candidates for the final two spots include North Carolina, Duke, Georgia Tech, Boston College, Virginia, and Vanderbilt. How will Big Ten Commissioner Jim Delany and the schools’ Presidents choose whom to invite?
Whoever will boost the brand, of course.

Tuesday, November 27, 2012

Pepsi NFL Anthems


Anyone watching NFL football this Fall would be hard pressed to miss one of Pepsi’s NFL Anthems.

Aerosmith’s “Legendary Child” (New England Patriots) and Kid Rock’s “In Detroit” (Detroit Lions) are two of the seven original songs that have been showcased by Pepsi as part of their NFL Anthems marketing campaign.

The television commercials have directed viewers to pepsianthems.com, where fans can download the content in its entirety. A clear attempt to tap into the 15-34 demographic, this campaign has received strong support from both Facebook and Twitter. Links to the video, audio, as well as links to some behind-the-scenes footage, have been promoted by not only the musicians, but also the teams and players themselves.

The NFL Anthems campaign is definitely consistent with Pepsi’s efforts to connect with young people through music. Just six months ago, Pepsi announced a global partnership with Twitter, through which the brand will live-stream concerts and offer weekly audio downloads.

While the seven clips have received significant attention, Pepsi could have been creative in their method for ensuring that the other 25 teams are represented. It makes perfect sense that Pepsi would only sponsor the production of anthems for 7 of the NFL’s more visible teams. There is little doubt, however, that there are artists around the country that would have interest in appearing in videos featured on a Pepsi-sponsored website, if not national commercials.

Why not then sponsor a competition for fans to write their own anthems for those 25 teams that remain? In an era where American Idol, the X Factor, and The Voice all bring in over 10 million viewers nightly, there is little question that this program would garner significant attention. All anthem auditions could be entered via a Pepsi microsite and then funneled through YouTube, with all voting ultimately left to the public.

To encourage voting and website traffic, all votes would earn fans a chance to win an all-expense paid trip to Super Bowl 47. As a cherry-on-top, the two artists that write the anthems for the NFC and AFC Champions, would be invited to New Orleans to perform the songs live during Super Bowl weekend.

This added component would enable Pepsi to tap even deeper into their target demographic for more than the 4-5 minutes it takes to watch a music video on their website. Instead, it would encourage fans to share their favorite anthems via social media, extending the reach of their already-successful marketing campaign without any real substantial costs.

Welcome

As a young professional in the sports industry, I have always been interested in the happenings beyond the playing surface. Unlike so many others, however, my intrigue lies not in player development or the execution of game strategy, but rather in the development of brands and the execution of sponsor activations.

 
As a result, this blog will focus exclusively on the brands that have already achieved, or are seeking to gain, relevancy in the sports world. This is not limited to corporate partners, but also includes the leagues, teams, and even players themselves. As all sports fans are so readily aware, each of these parties are constantly developing their own brands.
 
In writing the blog, I will analyze new partnerships, endorsement deals, marketing campaigns, and relevant PR issues across the sports industry.
 
 
In all of my writings, please keep in mind that any opinions are mine alone, and do not represent the thoughts or feelings of any other individuals. I do, however, always welcome the opinions of my readers and hope that everyone will share their own comments. If anyone is ever interested, I would absolutely welcome guest bloggers to create their own content.
 
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