Tuesday, February 25, 2014

The Battle Before Us

An all-out war (metaphorical of course) is being waged on us. Most of us have no idea that this is even happening, but I can guarantee you that is has only just begun. The battle ground is right in front of your face. In fact, I would venture a guess that you have looked at it since you began reading this paragraph.  Have I shaken you yet? Good.

The landscape has change drastically over the last decade, and exponentially in the last five years. The advent of the in-home entertainment system, the man cave, the "you-can-see-the-sweat-dripping-off-of-them" HDTV has made the job of college and professional athletics harder. The opportunity cost of attending a game vs. watching it on your television, tablet, phone or through live updates has become closer to even. That, coupled with the crippling economy, has been the driving force of this war.

Technology has been the metaphorical "nuclear bomb" of this war. The televisions, networks, social media and devices that have become such an integral part of our lives have also allowed for the sport industry to evolve and find new revenue streams. While these streams are valuable in their own right, they have taken away from the live event. Games and events are the bread and butter of the industry. While some organizations have struggled more than others, we cannot deny that attendance and involvement have become an issue.

I used the term "nuclear bomb" for a reason. We all know the historical context of its use. After the bomb was dropped, Japan had two options; fight back or give up. I see those two options as well. We as sport professionals must "fight back" by working with these technologies, using them to our advantage and using them to make our product as attractive as possible. Over the next three weeks I will outline three ways to fight back.

We can win this war and make the opposition work for us at the same time.

Tuesday, October 29, 2013

Know Your Fan

One of my biggest drives in working in the sports industry is the fan. They are the biggest stakeholders in sport. Yes, you have the television networks, the boosters and the community; but above all of those is the fan. They buy the product, talk about the product, watch the product and consume all media. In order to get the most out of whatever it is you sell, you must understand the "fan."

I like to look at five major factors when I look at the "fan." These can not only be beneficial in sport but in any business. They are:

Age
Social Standing
Economic Status
Geographical Factors
Other Interests


In my opinion, all of those factors can tell you all you need to know about your fan. They can set your marketing plan, drive your pricing, determine who you solicit, and soooooo much more (even determine what concessions you sell). While most of these seem pretty standard in business, I want to take a chance to apply it to sport. I think this will make my point that much more apparent.

Let's take three separate examples in the same conference:

Alabama

Most of the fans are of an older age and have been around the team, sport and school. The economic status is one that tends to be more affluent based on the booster donations that are given each year. They are one of two MAJOR football teams in the state of Alabama, and probably the biggest draw in the state for any sporting event. That also plays into the fact that it is the "it" thing to do during this time of year.

What it means - This is a sophisticated fan. There is also very little competition for the entertainment dollar. Overall you can price your product higher because of those factors, among others. The age also plays into the fact that your fan may not react well to the internet or technology. They are about tradition and you must market them as such.

Missouri

This is a new, emerging team with a younger fan base. Their fans are generally younger, and do not have the aura of bigger schools in that conference when it comes to booster funds and overall economic security. There is some pretty legitimate competition for the sports dollar there as well; with a multitude of sports teams in that region, as well as fans that tend to not stay there.

What it means - You can have fun with this one! You can play all of the new, innovative games and styles that you need because the organization is still forging its identity. In order to compete with all of the other entities you must price more attractively and really understand that there are so many opportunities with this team.

Georgia

These fans are affluent and passionate, but still a mix of old and new. They have the booster and the alumni backing, but still have a younger crowd that can be easily reached in new markets. There is a very large amount of competition, but with the tradition and passion, that trumps most of that.

What it means - There is really no wrong answer to how you capitalize on the Georgia fan. You have to stay middle of the road and please the masses, because of the diversity of the consumer. It is essentially a mix of the other two, which is both helpful and hurtful.

I think looking at the diversity of these three options is great justification of my points. You cannot use twitter to get at the heart of an Alabama booster, it's just not going to work. On the other hand, you cannot price a ticket to a Missouri football game at $85 because you are pricing yourself out of the market.

Sport is different than regular business in this sense. Sometimes, you can change or alter a product to appeal to more people or enter a new market when there is a hurt. Sports though, have specific fans and market that experience. It is hard to change the product, therefore you make that product attractive to your constituency. This particular line of though can be applied to all sports. Baseball, basketball and even golf can have different fans, needs and ways to market. Knowing the fan is truly paramount in getting the most out of the sport product.






Tuesday, April 2, 2013

Dear Dunk City,

HELLO READERS!!! Yes, hello to all 10 of you (and hopefully more after I promote this post). It has been far far far too long since my last post, but I have been inspired by recent events and decided to come back to “The Web” to impart some of my wisdom and opinions. It also helps that I don’t have toooooo much homework to do this week.

I have been inspired, as most of you have, by the basketball team from Dunk City. The Florida Gulf Coast Eagles have been the darlings of the sports world for two weeks running until their recent exit from the tournament at the hands of the “big brother” Florida Gators. This success got me thinking though, what would I do to capitalize on the success? I came up with five things I would do in order to capitalize on the frenzy that has become Dunk City.

1. Do WHATEVER I can do to keep Andy Enfield. I know what you are saying, “Web, they already lost him to USC.” I know….and that could very well prove to allow FGCU to fall from the lime light faster than they rose to it. If I were making the decisions I would have done anything to keep Enfield. Though I am not sold on him as a coach, which is another discussion all together, I feel like he was FGCU. He could have been the face of the movement. Players come and go but the coach can be a lasting impression. Coach K at Duke and John Calapari and Kentucky are prime examples, though Enfield would be a much much smaller scale. FGCU should have done everything in their power to get the money to keep him; sell the beachfront property, take out a bank loan, have a bake sale…ANYTHING. As you can see though, this was not done. It may not prove to be vital, but it certainly would have been a huge help.

2. Work with your alumni. Yes, all 50 of them. No no, I know there are more, but the oldest alumni are only between the ages of 35 and 40. You must market to them. What I suggest is discounted season tickets for the alumni of the school. FGCU is starting to have donations for their season tickets, make that a tad bit less for alumni or even lower the base ticket price. You need to have the alumni on your side. The more alumni that are buying in to the program, the more they will spend in the future. As they get older their pockets will get deeper and FGCU may have the funds to grow a program to a perennial competitor.

3. Market the location. I don’t know if you know about the campus at FGCU, but it is beautiful. If you saw the video of the tour with Sherwood Brown, you can see how amazing it is. This can be a recruiting tool. Ft. Myers is a good place for high school basketball, but if you get a kid from northern Pennsylvania to come and visit he will be hooked; and who knows, maybe his parents have found their new retirement destination!

4. Capitalize on the current success financially. One thing that I know FGCU is doing is taking deposits on season tickets already, trying to capitalize on the buzz around the team. This is a great idea, but I would even take it a step further. You could offer incentives to the first, say, 250 season ticket renewals/new orders giving them something like personalized seats or cushions or something that gives them a bit of incentive to get their tickets locked up. Trust me this stuff works almost as good as telling college kids there will be free food and t-shirts.

5. Market Dunk City. Finally, I would stop just short of running the “Dunk City” moniker into the ground. It became a calling card. You can make it a nickname for the arena or even fashion it into a name for the student section. I would also put it on as much merchandise I could so that the name sticks. It really is a catchy name, and should be marketed as such.


FGCU could very well be a school on the rise, but things need to be done off the court in order to ensure that the do not fall off the face of the earth after this sudden success. They need to look at the likes of Butler, VCU and Gonzaga and strive to be what they are. With their location, growing alumni base, and the excitement they generated FGCU has the potential to be something great. They need to use this success and parlay it into a future plan of action. You cannot let this go to waste if you are FGCU, because in the fickle world of sports you may never get this opportunity again.

Thursday, May 17, 2012

1...2...3 (...4...5) Clear!


In my daily dealings with certain businesses, both big and small, I am routinely appalled at the lack of customer service that I receive. Customer service can mean so many things, from helping with an unruly fan to simply smiling and complimenting someone on their attire. There are so many things that can go into making the customer happy. Any little nuance or subtle tone can be the difference between a customer coming back and them never contributing to your cause ever again. While this is a forum for sport business and I will focus predominately on applications in that sense, these simple rules can be applied to any industry.

So without further a due, here are my five simple rules for excellent customer service… 

1.       Act like you want to be there.  I said they were simple didn’t I? This can be as easy as smiling and being engaging or as complex (for lack of a better term) as showing positive body language after a long day. While this is predominately a face to face contact idea, it can also be used over the phone or even email. Having a good tone and positive outlook on the phone can make for a better conversation and a happier customer in the long run. I can remember a time in going to an Arena Football Game and going to buy a ticket for the game where the seller kept her arms crossed until she had to use her hands. In addition, her tone was unfriendly and unhelpful. It affected me so much so that I walked away and allowed my father to handle it himself. I am, as a customer, a prime example that one bad experience can ruin a customer. 

2.       Do not become aggravated back. In the business of sports there will always be passion, and from that passion comes anger when something does not go right. I cannot tell you how many times in my career as a customer service representative I answer the phone to an irate customer. The absolute worst thing I can do is be angry back, and while many times it seems like the right thing to do, it accomplishes nothing. In turn, to avoid worsening the situations revert to a human punching bag, taking blow after blow. Turning these punches around are the next tips that I will address. 

3.       Try to understand their point of view. I said understand, not agree. Most of the time, the customer has a legit issue and while it may not be in line with your policy (I will get there) it has some teeth to it. Being a service representative, you are the first person with the opportunity to make them happy. Even going so far as saying the words, “I see where you are coming from”, or something like that will help. While understanding their point of view may not make them completely happy, it is on the way to a positive outcome. 

4.       Know the policy inside and out. To me this is the most important aspect of customer service. When dealing with a customer who may not be the happiest, the last thing they want to hear is “Well, that’s just our policy.” Frankly, the fact that it is you policy holds little water, but if you explain the policy and why it is that way, then the situation has an opportunity to be resolved. In fact, many policies are in place in order to keep the customer safe or are at least in their best interests. When you give the customer logic with intent to help them, there is absolutely no competence they can give. 

5.       Don’t always go for the upsell. In my years dealing with customers and being a customer, nothing gets under my skin more than someone upselling with no regard or pushing with the sole intent of commission. In my eyes, it is all about the comfort of the customer. Let’s take season tickets for example. If you are attempting to upsell a customer by increasing a contribution by $1,000 dollars and pushing them to do so, they may in fact do it; but at what cost? An investment of $1,000 dollars here could keep them from investing in single game tickets, or even a baseball or basketball game. A happy free customer will keep spending, but if you restrict them now you have an even better opportunity of nothing.

I have come to the conclusion that customer service as a discipline is slowly dying. But if we as professionals can use these 5 simple tips maybe we can breathe some life into a tired old way of doing things.

Monday, January 9, 2012

The Re-branding of Los Marlins


Empty seats. Sub-par performance. Fiscal losses. These are all characteristics of oh so many franchises in professional sports, struggling to find a competitive advantage in leagues gravitating toward monopolistic tendencies. The former Florida Marlins suffered from all of these problems as of late. Even though they have had relative success in the last decade and a half including two World Series Championships, their recent mediocrity delved the franchise into a rut that has recently been blown up by a re-brand to end all re-brands. This current shot of energy for the new “Miami Marlins” has revived a city of baseball fans into a frenzy of great proportion. Every business needs a market, and this re-brand is very market oriented. “Los Marlins” are using what they have around them to attempt to propel the franchise into a competitive successful team.

There is no denying the cultural make up of Miami, Florida. The list could go on and on with the melting pot of people that gravitate toward the town.  It is a city that is predominately abundant with Cuban, Latin, Hispanic and Dominican flavors. This cultural tendency is what the Marlins franchise is attempting to market, and in a very noticeable way. From the logo to the location of the stadium this is a complete re-brand with the cultural of the city leading the charge. 

The logo of a team is the most outward representation of the brand. For instance, everyone knows the the Yankees’, Cowboys’ and Lakers’ logos look like. They are iconic, never changing and marks that will always be synonymous with their overall team brand. The Marlins are taking a step in the right direction by creating a logo and uniform set that embodies the city of Miami. The bright colors and overall look bring to mind the bright lights of South Beach and the colorful Latin heritage that is so prominent in the city. The logo has a “Miami Vice” feel and the uniforms mirror that as well. The lettering is modern with a small deco feel, again playing to the heritage of the city.

The outward markings are not the only cultural flavor being injected into the team. The recent personnel moves have made a splash not only in baseball but also in the ethnic community. With the hiring of Ozzie Guillen as the manager of the club once it moved to Miami was a huge step in telling the population of Miami their dedication to honor the culture of their namesake. Guillen, born in Venezuela, has been one of baseball’s outspoken and successful managers. For the Marlins to get him to start their new era off right was a huge step not only baseball wise but community wise as well. 
Later in the offseseason, the Marlins made a big splash at the annual winter meetings. After unsuccessfully trying to attain the most coveted free agent in recent memory (who happened to be Dominican) they set their sights successfully on Dominican shortstop Jose Reyes. This acquisition further enhances the Marlins goals of creating a ethnically diverse team to identify themselves. To acquire a player and an icon like Reyes truly was just another notch in the re-branding belt. 
So, what does all this mean for a franchise struggling to find its place? First of all there will be tremendous interest in the team. Their new ballpark, conveniently located in the Little Havana neighborhood of Miami, will be packed. A cheap ticket coupled with a ethnic location and ethnic interest in the team can only mean a new base of passionate Cuban, Dominican, and Latin fans that will embrace the new culture of the team. To see a re-brand like this take place, with such a clear goal is quite interesting. The new Miami Marlins set out to create a new identity for themselves and they succeeded greatly. Incorporating the city or Miami and its culture into the city’s baseball club is no easy task, but the Marlins did it, and did it very well. 

Monday, September 19, 2011

Wait, Whose Move Is It?

A few weeks ago, Texas A&M made a decision that was the equivalent of the first move of a nationwide chess match between five separate players. It is as confusing as it sounds. But, amid all of the he said she said 24-hour coverage, the one thing that is very prevalent to me is that there can be a lot of positive factors that can come from this. Greater parity, more intriguing alignments and even the possibility to the end of the current format, are all very distinct and real possibilities. The winners of this giant chess match grossly outweigh the losers in a greatly positive way. 

The biggest winner is the fans. Fans drive the market, whether it is buying jerseys, television packages, or tickets to the games. The fans are going to get the most out of their product from realignment. The possibilities of better match-ups, ratings, and competition are through the roof. Gone are the days of the cupcake non-conference schedule; there are simply too many opportunities to make the on-field product better. There is a way that the shuffling that is occurring can make the regular season somewhat of a playoff (oh my God did he just say the “P” word?)…but more on that later. The fans have a possibility of a USC-Texas and an Oklahoma-Oregon match-up every year in football, and on the opposite coast a Pitt-Duke and UNC-Syracuse basketball game every year. Whether you are a fan of these teams or a fan of the sport, or have a vague idea of what the Final Four is and what the BCS stands for then these games are exciting, not just for the sport, but for the schools and the kids that want to go there.

The next biggest winners are the schools themselves. Yes, I said the schools. Not just some, but all the major universities. The obvious winners are Syracuse, Pitt, Texas A&M, (and possibly UConn and Rutgers), but there are so many more opportunities for others to compete. For instance, let’s look at the now-dilapidated Big East. Teams like West Virginia, South Florida and Louisville now have to opportunity to be looked at by the SEC, and the rest of the schools have an opportunity in the Big 10. We don’t know how many the magic number is going to be. It could stop at 16 or go to as many as 20. That opens the door of possibility for all of these schools to be looked at by other, more impressive conference than their previous one. Looks at the other conference that is taking a hit, the Big 12, you see the same thing going on. Teams like Missouri, Kansas, Kansas State, and Iowa State could become attractive to the Big 10; or ever bunch with the left over Texas schools, Boise and others to create another power conference. So yes, even top “non-AQ” schools can win in this system. Basketball also has the opportunity prosper in this system. The ACC has added to its already stellar basketball brand and could have more to come, and there are many great basketball programs up for grabs that can make the conference that much more attractive. The parity within college athletics can reach a level that it has never been. There is no longer such a large disconnect between the “haves” and have “nots” because the playing field is more equal now. The top quarterback in the state of West Virginia now has a better reason to stay home and play against SEC competition instead of heading south to another school. It gives formally lower-tier teams more of a competitive advantage than they previously had. The schools will receive greater recognition through athletics and we all know what that can accomplish.


The last winners are the lower level FBS schools. Many people feel they are being left behind, and in a sense they are, but they pretty much have already been left behind long before now. This separation that will occur will do more good than harm for those schools who have never quite made it. Gone will be the days of Florida Atlantic playing Florida one week and Michigan State the next. Even though the larger schools are paying the smaller schools for these trips, there is still a great deal of money being lost, and with these games out of the way, there is a greater opportunity for these schools to operate in the green instead of the red. Travel costs can be so much greater than the stipends paid that these trips to larger universities make no sense. They are bad for both schools, television, and the fans. These weeks will be greater served for schools to have home games and make money off of those contests. 

The only losers in this chess match are the NCAA and the BCS. These entities has the opportunity to be rendered obsolete. The NCAA will no longer have its stranglehold over the landscape as the conferences and its commissioners demonstrate that they indeed hold all the power. The conferences can essentially govern themselves both in football and basketball. The need for an entity like the NCAA is virtually non-existent, and with the NCAA gone the BCS is short to follow. With conferences changing there is no more basis for “automatic qualifiers” and the bowl system is blown up because older affiliations are no longer relevant. This opens the way for a (get ready)…PLAYOFF SYSTEM (dun dun dunnnnn). The conferences and their divisions act as preliminary rounds or pools where the best ones advance on to a national playoff. This is something that the fans have wanted for years and the schools can use to their advantage, and there is finally a way to get there.

We are all currently spectators to the most turbulent time in college athletics. Dominoes are falling from New Jersey to the west coast. I am not saying that every single school and fan is going to be happy when the dust settles, but there is definitely a possibility and an outcome that can be beneficial for everyone. Schools and conference are making moves, and all we can do is sit back and watch it unfold.

Monday, June 20, 2011

The Power of Television (and Texas)


Young adults my age can think of many times that they have listened to their parents reminisce about "back in the day" when "there was one college football game on television each week," and who knows, maybe it was even "in black and white!" But those days are in the distant past with the new age of television contracts that are the new "in thing" of college athletics. The Big Ten paved the way in 2007 with their Big Ten Network affiliating itself with FOX to create programming both in the form of events as well as programming affiliated with the conference members. Most recently the Pac-12 has had interest in joining the party that has become all the rage. Schools have even gone so far as to make individual agreements with networks to exclusively televise games. These networks are fantastic revenue builders and can bring an end to athletic programs ending the year in the red. 
The most recent addition to the party is the University of Texas. The new Longhorn Network is the first of its kind, melding extensive coverage of athletic events and original programming debuting in August. Notre Dame started it with its agreement with NBC to televise games, and at the state’s motto says UT “did it bigger.” The Longhorns’ athletics department is consistently the most lucrative athletics department in the nation so naturally they wanted to make that profit bigger, and this network is a huge idea with huge benefits. Not only does it get every single UT sport out there, but it brings awareness to the entire school. They took the mold of the Big Ten Network coupling games with original programming. This is a great thing not only for the athletics department, but also the entire school as well. It is a great way to allow for prospective students all around the world to have to potential to see this network. Recruits can learn about the school and become familiar with the idea of playing in Austin, and let’s be honest who would not love playing every game on television?
While UT is taking the individual route, conferences are making the move to have television deals with networks to exclusively televise games throughout the season. This is a fantastic revenue builder for all of the teams in a conference, but it also is great for the strength of the conference to share the revenue of the contract with all of the teams to create a great level of parity. We see this with the NFL, and it creates perhaps the most even league of the “big four.” While the conference networks are a great idea for conferences, the individual network, if feasible, is the way to go. 
As I said earlier, Texas is the top revenue-generating athletic department in the country, which is why they can sustain their own television network. But what Texas can do, a lot of other big universities could do as well. You can add the Floridas, the Michigans, the Ohio States and the USCs to the list of teams that could benefit greatly from their own television networks. Another way to approach it is from a growth stand point. Take a good football school like Iowa for instance. They have a solid athletics program, but nothing like Texas or Florida, but they could profit greatly with a network that can create a wide footprint with loyal fans. It can create a following of some sort that can bring recognition to the university. Another example would be someone like a TCU or a Boise State, a team that is trying to break through and make a name for itself. If they were to create a network to rival the Longhorn Network then that could be the big step they need to break through. 

Overall, in the age of the new television network craze, it is a good and profitable idea to jump of board. Keep in mind though there are many avenues to take and many reasons to get involved. Schools should get involved for the right reasons, and get involved to substantiate themselves and big time players both on and off the field.