Thursday, 8 October 2009

Blue is the colour, football is the game?

This is a quote from an article written by Ashling O'Connor in The Times:

"Fans keen to follow the progress of Theo Walcott, one of England’s brightest World Cup prospects, will have to pay for the privilege after Chelsea TV secured the rights to Friday’s European Under-21 Championship qualifier against the Former Yugoslav Republic of Macedonia. The club channel, available to subscribers for £5.87 a month, will screen the game from the Ricoh Arena in Coventry after rival broadcasters expressed a lack of interest. While there is no minimum contract for Chelsea TV, it is only available to those already signed up to Sky or Tiscali, although there are limited schedules available online. The news will compound anger among supporters forced to pay up to £11.99 to sit in front of a computer on Saturday evening to watch the senior England team face Ukraine."

The full article can be found here: http://www.timesonline.co.uk/tol/sport/football/international/article6863732.ece

Just how important is the way in which this weekend's games are being covered? Is this era defining? A fundamental shift in the media and broadcast landscape? Or the fallout of an economic downturn through which broadcasters haven't been able to sustain themselves? And is the combination of pay-per-view AND the internet simply a step too far for most football fans. or will they be happy about the additional options it gives them?

Tuesday, 6 October 2009

Financial Services Authority - benchmark or barrier for football's cosmopolitan ownership

As another English football club passes into the hands of a foreign owner, many commentators have been questioning whether or not the only structural impediment to such takeovers (the fit and proper person test) is up to the task of the challenges now facing it and English football.

The BBC details football's fit and proper person test here:
http://news.bbc.co.uk/sport1/hi/football/eng_prem/6923831.stm

Compare this with the fit and proper person test developed and utilised by the Financial Services Authority:
www.fsa.gov.uk/pubs/hb-releases/rel27/rel27fit.pdf

Which is the stronger test? The more appropriate? The more relevant? Could football learn from the FSA or vice versa?

Thursday, 1 October 2009

Sport marketing, meeting needs and commercial exploitation

Matt Bourn of Braben PR has recently blogged about the messages that came out of last week's Sport Marketing 360 conference in London. This is what he wrote:

1. The next 48 months offers huge potential for sports marketing and sport has an important role in pulling the country out of the recession.]
2. Manchester United is said to have 300 million fans, the same as Disney. Disney monetises every single one of those fans in many different ways – film, DVD, TV, merchandise. Manchester United does not yet. So do the Red Devils have a successful business model?
3. FIFA has a much higher profile than the IOC with the youth market. Why? Because of the video game, not the sport itself.
4. Advice to all sports rights holders: Don’t sell rights, create benefits for your sponsors.
5. More advice to sports rights holders: Remember, brands have a powerful role to play in marketing the sport for you.
6. A view from a sports rights holder: Sponsorship is about a true partnership – offer unique content, unique opportunities for fans.
7. In defence of sponsorship: There has been much debate this year focusing on the credit crunch, banks and corporate sponsorship which has led to the defence of sponsorship as a valued marketing medium. Does more need to be done?
8. Advice from an Olympian to potential sponsors: understand (and enjoy) the sport, don’t lose faith in an athlete’s performance, training comes first and remember - activate the sponsorship.
9. More advice from an Olympian: sponsorship is evolving and it is a platform for doing something good
10. It’s not just brands that benefit. The global nature of sport has seen cities and countries using it to promote themselves on a global scale – Dubai, London, China – this will continue.

In the light of Sport Marketing 360, are we to conclude that sport marketing has now come of age and has a significant role to play in sport, especially as it has benefits for all associated with sport? Or is there still a pervading sense that sport marketing is nothing more than a focus for using sport for commercial purposes and that it is essentially exploitative and cynical?

Wednesday, 30 September 2009

Basketball ahead in battle for global supremacy?

Much has been made of the importance attributed to Asian markets by organisations both in football and in basketball (and, for that matter, in other sports too) - including by this blog. Indeed, whether it's CR9 branded Real Madrid shirts or the NBA and its network of partners in China, the battle lines for global domination in sport are slowly being drawn up, although the nature and rules of engagement are still unclear. Recent news though indicates that the confrontation is about to get a lot more intense with the announcement by the NBA that they are seeking market expansion in Europe: http://www.guardian.co.uk/sport/2009/sep/29/nba-espn-tv-deal How penetrative, and therefore effective, this will be is open to question; while there is a strong predisposition towards basketball in European countries like Lithuania and Greece, others such as the UK and the Netherlands are more strongly oriented towards football. The NBA's international strategy raises some important questions though, most notably for football in its core European markets and the Asian market places which it aspires to control. In particular, how will football respond to the collectivist NBA strategy, whereby a central organisation works on behalf of a group of franchises? How will indivudualistic football clubs respond? By forming strategic alliances with one another? By adopting a much stronger strategic network approach in key markets e.g. by working with local clubs in places like China? Or is there an implication that organisations like UEFA and the EPFL (European Professional Football Leagues) must become more proactive, strategically stronger or adopt a more collectively oriented global strategy? Unless European football clubs adopt a different approach, will any of them have the strategic resources necessary to address the growing commercial threat posed by the NBA?

Gates closing for commercial partners in sport

This summer’s Tour de France was truly historic: the race finished without anyone having returned a positive dope test. Monumental! In a sport seemingly beset with drug problems, professional cycling appeared to have turned the corner, started over, seen the error of its ways, cleaned up its act etc.

Some weeks later however, it was back to “situation normal” when Mikel Astarloza, winner of Stage 16 in this year’s race, tested positive for EPO use. To be honest, the only real surprise about this was that the media singularly failed to refer to the test result as “dope-gate” or some such other gating scandal.

Yet gates elsewhere were swinging this summer like those on a disused farm caught in a tornado. The world of sport witnessed scandals ranging from “crash-gate” to “blood-gate” and beyond (even to situations where women were apparently men – gender-gate?). Crash-gate was the most serious of the summer’s attempts at self-implosion, according to some possibly the most serious sporting scandal of all time.

Indeed, there was a sense amongst certain people that the 2008 F1 Grand Prix in Singapore will serve as a headstone on the grave of sporting credibility: we can no longer trust in or rely upon those involved in sport. Flavio Briatore and Pat Symonds have admitted their guilt and apparently done the decent thing, but others may well be complicit too.

Just how could something so brazen, so dangerous, have remained secret for so long amongst such a small group of people? From whistle-blowing, to organisation culture, the use (and abuse) of power and the basis on which teams compete, the whole saga has been a sad, pitiful, mangled mess of managerial, organisational and commercial issues.

Blood-gate was a lot less controversial than the Renault fiasco, if for no other reason than it was essentially a domestic drama and wasn’t therefore played out in the glare of international publicity. Moreover, while the likelihood of a physically painful outcome was much greater in the F1 case, Harlequins willingness to feign a physically painful outcome was at the heart of bloody matters down at The Stoop.

Anecdotal evidence suggests that the club is not the only one in rugby that maintains a supply of blood capsules, but Harlequins got caught. As with the Renault team, those responsible at Harlequins have either done the decent thing; or else had the decent thing imposed upon them by the relevant authorities. Dean Richards has been the main target of disciplinary interventions because of his prominent role in the affair – strangely, and worryingly, Richards is a former police officer.

While the RFU and the FIA both took a stance in respectively dealing with crashgate and bloodgate, the nature of the interventions was different, and has posed some interesting questions about how scandals in sport should be dealt with. In Renault’s case, the regulatory intervention was much less serious than it was for Harlequins, in part due to the team’s troublesome twins having already fallen on their gilded-swords.

However, Renault suffered more as a result of the commercial consequences than did Harlequins; at a conference late in September, a senior member of the rugby team’s senior management team claimed there had been no problems with sponsors and partners. Renault on the other hand lost its main sponsor (ING) and a secondary one (Mutua Madrilena), both on the same day. The team will undoubtedly have lost money as the result, as well as a considerable measure of commercial lustre.

Essentially, the two cases discussed here have raised an important issue: is sporting scandal dealt with more effectively by regulatory sanctions (as with Harlequins) or by market-led sanctions (as with Renault)?

The latter is controversial, as many people will argue that money got sport into trouble, so can it really be expected to now get it out of the difficulties it faces? Moreover, it relies upon sponsors and partners terminating their contracts with immediate effect, when in fact adjustments and sanctions may move much more slowly as these sponsors and partners only refrain from renewing a contract once it is finished (which might be years in advance).

Yet regulation appears to have a history of failure: despite everyone’s best efforts, doping still takes place, players pop blood capsules in their mouths and cars get deliberately crashed into walls by their drivers.

As such, if money does indeed talk, then perhaps it is pay-back time and the very big carrot that used to hang from a too frequently ineffective stick should be used as the medium through which cheats are dealt with?

Monday, 28 September 2009

Notes on jersey sponsorships in the US

America has started to grapple with the issue of whether or not to allow jersey sponsorships, with sporting commentators expressing a variety of comments such as this from IEG:

http://www.sponsorship.com/About-IEG/Sponsorship-Blogs/Rob-Campbell/September-2009/Analyzing-Jersey-Sponsorships.aspx

The debate in the US is one that many sports in Europe have been through before. Indeed, in some European sports, the issue now is not should a sponsors name and logo be allowed on shirts, rather it is a case of how many? Indeed, in some countries, there are some additional questions being asked: sponsors on the back of shirts? On the shorts? How many on the shorts? On the socks too?

Having completed my doctoral thesis on jersey sponsorships and published work in the area (e.g. Journal of Advertising Research, Journal of General Management, International Journal of Sports Marketing and Sponsorship etc.), there would appear to be a number of questions facing teams, franchises and sponsors in the US including:

  • Why is jersey sponsorship needed?
  • What do these other sponsorships potentially offer that others don't?
  • What value could jersey sponsorships add to teams, franchises and sponsors?
  • What is the nature of the link with the bottom-line?
  • In what ways would jersey sponsorships add to or cut through mar comms clutter?
  • On what basis should sponsorship partners be acquired, retained and then relationships dissolved?
  • What might be the cognitive and behavioural responses of consumers to jersey sponsorships?
  • What is likely to be the optimal level of activation required to maximise the effectiveness of jersey sponsorships?
  • What are the likely to be the ethics and legalities of jersey sponsorships?



Sunday, 27 September 2009

Fanning emotions

Spent the last few days at, or thinking about, a couple of conferences I attended last week. The first was Sport Marketing 360 on Wednesday; the second was Marketing Week's annual sponsorship conference on Thursdays event. Great cast list across the two events, and plenty of inside information e.g. people at Thursday's event knew in advance that ING was set to make a dramatic announcement. Details of the two events can be found here:

http://www.sportsmarketing360.com/

http://www.centaurconferences.co.uk/brands/marketingweek/events/thesponsorshipsummit/overview.aspx

Across the two days, the majority of sponsors talked about the need to engage with sports fans, and to harness the power of emotion that many of these fans feel for their sports. Indeed, there seemed to be open acknowledgment that sponsors need to work hard to ensure that they are not viewed as cynically exploiting sport, if sponsorship deals are to achieve maxiumum effectiveness. This poses the question therefore: how will sponsorship need to change, especially in the post-downturn world? If one thinks of the emotion that e.g. a football fan feels for their club, how can a sponsor (can a sponsor) replicate this? Harness it? Buy into it? Capture it? What is the most appropriate phraseology? Can it ever work? Won't fans always be cynical of sponsorship exploitation? As Marx might have put it: the appropriation of value (generated by a team, club or sport)? And what might movements such Against Modern Football (http://www.facebook.com/group.php?gid=9943026245) think about the role that sponsors are playing in 21st century sport? Yet surely sponsors have got a role to play in supporting sport, especially during these difficult times? And if they can help to induce, support and perpetuate the emotions associated with our favourite sports, this must be a good thing - mustn't it? Ultimately, if teams, clubs, sponsors and the fans all win from engaging in a mutually-benefical relationship, this has to be the way foward - hasn't it?