Archive for the ‘Consumer behavior’ Category

History of National Hockey League’s TV rights and why its raising.

Friday, April 25th, 2014

The National Hockey League has had a different history of TV rights deals than most other sports leagues. The first broadcaster of NHL games was CBS. TV rights have also been sold to ESPN, ABC, FOX, and Versus. These networks would have exclusive rights for games that they wanted to televise. The NHL has also had teams seek out their own local TV rights deals. This means the owner for instance of the Colorado Avalanche would seek a deal from a local station such as Altitude. Then for the playoffs, the NHL would sell their rights to a network such as NBC to televise playoff series. They would then sell exclusive rights to the Stanley Cup finals. NBC now has the rights to NHL games and local stations have broadcasting rights.

These TV rights deals have continued to escalate. In 2000 the TV rights deal was worth $120 million a year. In 2012 the rights were worth $200 million a year. In 12 years the worth of the NHL’s TV rights has almost doubled. With major networks such as ESPN, ABC, CBS, and FOX wanting in on broadcasting the NHL, it is expected that this number will only increase every year.

I think this has occurred because of the escalating interest in the sport of hockey. More and more great athletes are turning to hockey. This is causing a rise in interest. Fans of sports are also turning to hockey as an alternative to football during the winter and spring. With increased viewership TV deals rights will only become more lucrative for the NHL. The NHL also has a great playoff system that features four rounds before the final. With most playoff series going at least five games, networks have more opportunity to run sponsorships on the most watched games. I think the NHL will have bigger TV deals in the future because of this growing interest.

Opie Wilson, Kalen Dear

Dr. Houghton

 

Sources:

http://www.forbes.com/sites/christinasettimi/2013/11/25/nhls-richest-local-television-deals/

http://www.cbc.ca/news/business/rogers-scores-national-nhl-tv-rights-for-5-2b-1.2440645

http://www.youtube.com/watch?v=5wcdqnBFZKw

 

 

Learning from ABL and the USFL to create a sustainable women’s soccer league

Monday, April 21st, 2014

To American society, it might seem it is easy for leagues to sustain themselves and flourish in a glamorous manner given the success of the big four professional leagues. However, to start off a professional league requires much luck, and financial planning and its common for leagues to fail. Two examples of failed professional sport leagues is the American Basketball League and the United States Football league which both folded after three seasons.

The USFL and the ABL were very different sport leagues, however they are similar in how they folded. The USFL had an issue of playing the quality of football that fans were used to watching the NFL. USFL couldn’t pull the top flight talent that the NFL did because most talented athletes from college went into the NFl. Also, even though the USFL played in the Spring, it had trouble generating interest. It was going to have to take away viewership from basketball, baseball, and hockey. The USFL finally folded because of no TV contract, a very ugly lawsuit(s) with the NFL, and a loss of $163 million between 1983 to 1985.

The ABL folded for many of the same reasons. The ABL was created right around the same time the WNBA was being formed. This meant the ABL was going to have to compete for top-level talent. They were also going to have to fight of TV time and media coverage in general. Interest for the league was going to have to be generated somehow and the ABL had to fight for little bit. In the end, the WNBA prevailed over the ABL because WNBA’s financial backing from the NBA compared to the owner’s limited budget of money. The league ultimately folded because of a $25 million dollar debt.

The National Women’s Soccer League can learn some things from these leagues in order to stay afloat. NWSL needs to generate interest for the league. Interest for soccer in the United States can be a struggle. It’s going to have to sign a TV deal so sponsorships start to flow in. Also, it’s going to have to market through promotions. The most important thing the NWSL can learn the USFL and the ABL is to have their finances in order. Players won’t play for free and sponsors won’t sponsor unless there is interest. One thing that they did learn from the past was letting their soccer players play for other leagues for more exposure and appeal. A key difference between the WNBA and ABA is that the WNBA let their players participate in other leagues. One benefit that has occurred from this action are national teams have pitching in for their players salaries to help relieve some of the financial burden on the teams itself. The teams also play in stadia appropriate for the size of their fan bases instead of playing in the nfl sized stadiums in order to pay less rental fees for games. With these adjustments from the past and smart budgeting, the National Women’s League has a real shot of developing into a economically sustainable league.

Kalen Dear

Opie Wilson

Video clips about the ABL and the USFL

http://www.youtube.com/watch?v=veNFlCiQcRs

 

https://www.youtube.com/watch?v=Zb5VXQ67EDw

Sources:

https://sites.google.com/site/remembertheusfl/home

http://www.apbr.org/abl9699.html

 

 

http://www.nytimes.com/2014/04/18/sports/soccer/clinics-offer-national-womens-soccer-league-a-path-to-success.html

 

Pedersen, P., Parks, J., Quarterman, J., & Thirbault, L. (2011). Contemporary sport management (4th ed.). Champaign, IL: Human Kinetics. Chapter 12

 

 

Super Bowl Food Consumption

Wednesday, April 16th, 2014

We are talking consumer behavior in class today, centered around obesity. This infographic provides some interesting fodder.

Chips, wings, cookies, pretzels, popcorn... Americans will spend more than one billion dollars on snacks just for the Super Bowl.

Source:LiveScience

Real Madrid for American fans

Saturday, March 15th, 2014

Spain Soccer Copa del Rey Final

The Real Madrid website has services and information about European soccer which is the biggest sport overseas where fans don’t miss a game and are always selling out home stadiums. Real Madrid also has European basketball in case soccer is not your cup of tea. The basketball program is not really mainstreamed like soccer, where both sports have the same sponsors, gear and trademark. The audience that is most appealing for this website are foreign soccer players, young boys and men who want to become a professional soccer player and be on Real Madrid’s team. European athletes who want to play soccer or basketball for their own private team who does tones of charity work worldwide. And if you’re (Madridista) fan enough, you can get a Real Madrid membership card that is packed with benefits for supporting the Madrid team for as long as you want. When I took a look at the website I thought it was two-way communications where the website can be seen in different languages. The owner/president of the club has also played on this team and won multiple championships nationally and still wants to be a part of the sport. So Florentino Pérez Rodríguez the owner is doing as much as possible to complete with next door Italy and France that Spain is the best for football in the country. I like the website, it is professional but does not really how it first started and what are the regulations for Real Madrid to become a professional team and its own club.

Top Dollar Athletes…Are They Worth The Change?

Thursday, November 21st, 2013

Do you like to play sports? Do you like to get paid? How would you like to get paid anywhere from hundreds of thousands of dollars to tens of millions of dollars to play professional sports for just one season? Sounds pretty great right, what more could someone ask for? You’re getting paid to play sports for a living. Well how about asking for more money on top of the millions you’ve already been paid?

This seems to be a very common occurrence nowadays doesn’t it? It seems like we are hearing of lockouts or strikes every other professional sports season. While we all want to be paid more for the services or work we perform, most say it is ridiculous how multi-million dollar athletes are demanding more money, and this undoubtedly affects the sports industry one way or another.

So, where is the additional money going to come from to pay top athletes more? If you said higher ticket costs, more expensive concession foods, pricier parking fees, and higher priced officially licensed products, we would certainly not be wrong. But what effect does this have on the sports industry? Well, for starters, if ticket prices rise, it may be likely that fewer fans will go to games. Fewer fans at games, equals less concession sales, fewer concession sales, results in less additional revenue coming in. This is obviously a negative impact for the sports industry.

From examining two different articles, Two Sides to Every Coin: Are Professional Athletes Overpaid?, and Athlete’s Salaries Too High? Sports Fans, Blame Yourselves, a common conclusion was shared between them; the fans or consumers are the ones to blame for the high amount of money paid to professional athletes today. While they demand more by strikes or face lockouts, the sports industry suffers even more while these events unfold. But again, it is the consumers’ fault that athletes are paid so much, and gain a sense of entitlement to more money.

While the increase in prices might seem like it would negatively affect the sports industry, there are always going to be sports fans willing to pay the price for a unique sporting experience. These large, multi-million dollar contracts could, however, help strength the economy or financial situation of certain sports leagues by intriguing old and new fans alike to see whether the players are actually worth it. They want to see if the athlete has the skill to justify the amount their team is paying them, thus consumption will increase in that regard. As one of the article’s title states, there are two sides to every coin. This side is obviously the positive as it has the potential to create interest and excitement among loyal sports fans.

 

So, as we can see, there are both positive and negative sides to how much athletes are paid.  To get an idea of how much top athletes are paid, please see the video: http://www.youtube.com/watch?v=ya7y5Tke7uc

 
For the articles, please visit the following links:

http://bleacherreport.com/articles/1089195-two-sides-to-every-coin-are-professional-athletes-overpaid

http://www.fee.org/the_freeman/detail/athletes-salaries-too-high-sports-fans-blame-yourselves#axzz2l7vJ5rNY

21 is the new old..

Thursday, November 21st, 2013

The Atlanta Falcons’ came out with a plan back in April of 2013 to build a brand new $1 billion retractable-roof stadium by 2017 in downtown Atlanta.  After over two years of negotiations, the city’s economic development armed voted 8-1 in approving the issue of over $200 million in bonds from Atlanta city’s hotel-motel taxes to help with the funding of the new stadium.  Since the current Georgia Dome stadium was built only 21 years ago in 1992, this raised a lot of questions and concerns.  The questions are exemplified by something along the lines of why now, why is this necessary, the stadium just turned old enough to drink! Falcons owner says

We’re not simply swapping one stadium for another. We’re building a best-in-class facility that will help us attract new events and retain the Falcons.

http://www.cbssports.com/nfl/eye-on-football/22007606/falcons-1b-retractableroof-stadium-gets-public-funds-green-light

The remaining money to support the costs of the stadium will come from other private funds as well as the Atlanta Falcons.

In another Q&A article found at: http://www.sbnation.com/2013/3/7/4076234/new-falcons-stadium-deal-atlanta it is asked “Since this is an NFL stadium deal, how much blatant robbery of public money occurred here?” Following the response:

A bit, but that’s money long since stolen via the hotel tax, which by law must go towards ‘Promoting tourism, conventions, and trade shows.’ There are local costs to it, as there are with any tax, but the direct amount of money in theory is coming from tourism taxes levied on hapless conventioneers breezing through town.

When it comes to using public funding, it seems like something that is rather hard to swallow.  If after 21 years, the Falcons for some reason need a new stadium that is still relatively new, shouldn’t we be asking more questions?  It seems as though this hotel-motel tax could be used for a cause beneficial for more people as well as a better cause.  $200 million is no small fee, which yes, gives the new stadium a good step in the financial direction that they need but it could be better used for other things within Atlanta.  Using this $200 could be used towards education, construction in the city, or many other aspects that could be beneficial to many people around the city, rather than just the team and the people surrounding the sport.

Public funding for stadiums, what to do what to do…

Thursday, November 21st, 2013

In the state of Minnesota a professional baseball team, the St. Paul Saints, is looking forward to developing a brand new stadium in the heart of St. Paul. Their recent stadium is about 30 years old with sewage, piping and many other issues that make it reasonable for a new stadium to be constructed.  Local high school and college sports teams use the old stadium to this day, so to have a new one built it would not only benefit for the St. Paul Saints, but for many other baseball teams in the St. Paul area. The new stadium is proposing a Bonding Bill of 27,000,000 dollars that will begin construction in 2014. If the bill gets passed, it is said that the stadium will create up to 21,000 jobs, positive change for the entire neighborhood as well as local shops and stores in the area, and it will build on the economic vitality of the city. Previous invests such as the light rail and the union depot has produced positive change and if the city were to invest in the bonding bill, it would establish the cities vibrant and viral attributes. All this money would be generated by tax payer money and the governor as well as  the St. Paul commerce of city agree that it will produce a positive change with their city.

This discussion is related to our class because it deals with financial situations in us pro sport. 213 billion dollars is generated annually in the sport industry and we know that sports play a big part in public spending. The problems that are generated in sport are in small and large markets. With this being in St. Paul, it deals with a small market that needs something to spark up the sport industry. Once this new stadium is built it will generate more attendance at games, more media coverage resulting in a larger profit. The video that I am attaching to this blog explains the topic I am discussing, how and why it will improve the overall cities well being.

http://www.youtube.com/watch?v=FZxOabI3cc8

New Media for a New Arena

Wednesday, November 13th, 2013

New Media is on the rise, the internet is now more accessible and available and many companies and organizations are eager to reach a broader public through social media participation. This channel of communication allows for quicker diffusion of information between fans and organizations. It also allows for fans to create there own content with pictures and videos. Nearly all leagues and teams in all sorts of sports are already participating in social media. So much so that even sports journalists cannot be credible without a twitter account. Since the internet is not limited to local markets marketing through these sites is essential for any business in the sports market.

New media has become commonplace in many homes and offices but not so much in the arena setting. New part owner of the Sacramento kings Andrew Miller has plans to change that. the former Apple executive in charge of the Iad department is now head of the technology committee for the Sacramento Kings arena set to open in 2016.  Miller plans on upgrading the wifi in the arena and possibly implementing hands free tablets in the back of seats where fans can post on the jumbo tron, search stats, and order food from their seats. The folling link provides an interview with andrew miller.

Kings New Arena

 

Lunch with Kerri Walsh?!

Wednesday, November 13th, 2013

Winning their Third consecutive Olympic Medal Kerri Walsh Jennings and Misty May Treanor are sought out to be the best beach volleyball players in the World. So it comes to no surprise when they use that to advertise themselves for “a chance to win sweepstakes” type of publicity. Jennings recently partnered up with Tampax Pearl to give girls the chance to win a private volleyball training session with a trip to California.

Three-Time Gold Medalist Serves up a Winner with “The Kerri Walsh Jennings Active Experience”

Enter "The Kerri Walsh Jennings Active Experience" sweepstakes by visiting awesomelyactive.com from October 19, 2013 until November 3, 2013 (Photo: Business Wire)

When it comes to playing a highly competitive sport Tampax pearl is trying to reach out to those athletes who idolize Jennings and even Treanor whose name just always happen to stick together like glue. Volleyball is the type of sport that is on the rise and becoming a popular competitive sport. If a young girl who is an aspiring volleyball player they will be easily influenced to try and win a trip to California to try and spend it with Jennings and having a private volleyball session with her. That would be a dream, even for me!

I believe that Jennings is trying to gain more publicity as well as trying to gain publicity for USA Volleyball. Trying to reach out to the youth volleyball players all around the world is a great way to gain a fan base from a young age. There are many female athletes that try and promote themselves through feminine products like make-up, deodorant, shampoos and conditioners. Because women have to use these types of products daily and if there is information like this around us at all times there is a higher chance we can buy into it or even try to win that sweepstakes for lunch with Kerri Walsh Jennings.

 

 

New Media=better Baseball Fans

Tuesday, November 12th, 2013

Aw yes, what is more American than baseball? America has an infatuation with baseball.   Major League Baseball fans inarguably love their sport of baseball. In fact, they love the sport so much so, that they accessed

“1.2 million live audio and video streams of the first available Spring Training games this past weekend”

http://sportsbusinessnow.com/mlb-fans-getting-their-fix-early-as-mlb-com-at-bat-downloads-spike/

which occurred back in February of this year. According the article MLB fans getting their fix early as MLB.com At Bat downloads spike, this activity

“represented an increase of 53% from last year’s opening weekend of games.”  

http://sportsbusinessnow.com/mlb-fans-getting-their-fix-early-as-mlb-com-at-bat-downloads-spike/

 

 That is quite an increase over just year’s time. So how was this increase accomplished? Perhaps the MLB.com At Bat application has something to do with it.

 

The MLB.com At Bat app, allows users to view each and every game (for a price of course), as well as listen to live audio, get the latest news, schedules for the 2014 season, and expert analysis (http://www.mlb.com/mobile/atbat/).

 

This app is irreplaceable for those of us with an insatiable MLB appetite. Rather than having to wait until you get to a computer to look up news or rushing home to catch the game, users of this app have the games and news in the palm of their hand. They can catch the games on the go without a problem, which is obviously a plus for the fans, as well as the MLB.

With this app, it looks as though the MLB has accomplished a goal of making games, news, etc. available to fans anywhere, at anytime. In addition to this app, the MLB also makes the latest information available by using other forms of non-traditional media like Twitter and Facebook. However, as the title implies, MLB fans may just get their best fix by using the MLB.com At Bat app. This app, in addition to countless other apps, are examples of how sport organizations are now using more non-traditional forms of media for communication purposes. These newer forms of communication are  very convenient, fast, and user friendly.

This development of sports organizations using non-traditional forms of media to make information more available to their target audiences, will only continue in the future as technology becomes more advanced.