Professional Documents
Culture Documents
Sport Marketing Fourth Edition
Sport Marketing Fourth Edition
Sport Marketing Fourth Edition
Foreword
Preface
Web Study Guide
Instructor Resources
Acknowledgments
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Chapter 6: The Sport Product
What Is the Sport Product?
The Sport Product: Its Core and Extensions
Grassroots Ideas
Key Issues in Sport Product Strategy
Wrap-Up
9
Building an Audience
Engaging Fans
Driving Behavior
Social Media Platforms
Avoiding Pitfalls
Leveraging Players and Talent
Wrap-Up
10
Contributors
Leigh Buwen
Turnkey Intelligence
Kathy Connors
Kirsten Corio
NBA
Jaclyn Cranston
Turnkey Intelligence
Evelyn Dwyer
Turnkey Intelligence
Jay Gladden
John Grady
Associate Professor
Haynes Hendrickson
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President
Turnkey Intelligence
Steve McKelvey, JD
Associate Professor
Nikolay Panchev
Turnkey Intelligence
Steve Seiferheld
Turnkey Intelligence
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Foreword
As my 30 years as NBA commissioner comes to an end, I can’t help but reminisce about just how far the sport
industry has come during this period. Perhaps nowhere is this growth more evident than in sport marketing.
It is hard to believe that just 30 years ago when the authors of Sport Marketing, Fourth Edition, wrote their
original manuscript, the term sport marketing was rarely used. Now, the term is common and regularly used
to encompass all of the activities in this book—activities that accurately depict the evolution of the sport
industry as I have experienced it during my tenure at the NBA. I have had the good fortune of working with
many of the most talented executives in the industry. As the industry has evolved, so have the leadership and
business capabilities of the teams. Now, most of our teams have more than 100 employees who sell tickets and
sponsorships; provide great customer service; develop marketing, advertising, and branding strategies; activate
platforms for marketing partners and sponsors to drive their businesses; produce TV and radio broadcasts
locally; service the media and place proactive messages; develop and produce the shows; and do meaningful
work in the community through innovative and socially responsible programs. This latest edition continues to
place those activities in a comprehensive framework, showing how the moving parts work together to develop
the sport business locally, nationally, and globally; and it refreshingly illustrates where the use of new
technologies now play their essential part. Particularly insightful are the data collection, aggregation, delivery,
and targeting technologies used in ticket marketing and sales and for increasing fan engagement using content
delivered predominantly via mobile devices.
The principal authors have a combination of academic and professional experience that is extraordinary. Their
education and experience as university professors provide them with unique perspectives. Their research and
analytical skills lead to objectivity and an ability to identify key industry needs. The theoretical framework
they have created into which every marketing strategy is set—the marketing planning process—leads to a
consistency in all branding, sales, and marketing strategies. Better yet, the authors have practical experience in
the field in senior executive capacities covering several segments of the sport industry, which has given them a
wealth of knowledge on best practices and the understanding of what actually works and what doesn’t.
Collectively, they have implemented just about all of the best practices firsthand for leagues, sport conferences,
and the most challenging of all situations, start-up teams and turnarounds.
I have observed the work of the authors for almost fifteen years as they contributed to the way NBA teams
conduct their business. Clearly the most significant contributions were the substantial increase in the sharing
of best practices and real data, increased adoption of direct marketing techniques, focus on the customer
"driveway to driveway" experience, and the basis of teams’ business strategies on the authors’ landmark work—
the attendance frequency escalator. As a result, most NBA teams today have much more sophisticated
database-building and customer relationship management (CRM) capabilities. The teams more effectively use
proactive outbound fan relationship management centers or telemarketing sales and intelligently targeted e-
marketing programs that are designed to increase trial, improve retention, and drive attendance. These
successful teams focus on the stepping-stone approach to fan development: Encourage more people
(particularly youth) to play the game, connect players and coaches more favorably with the community, get
13
more fans to watch or listen to broadcasts, progressively encourage fans to get off the couch or off the
computer or mobile device and sample the NBA game in person, and offer a full menu of full- and partial-
season ticket plans designed to move fans up the attendance frequency escalator. The greatest benefit of this
approach has been a significant increase in the lifetime value (LTV) of fans in the respective team markets,
and ultimately, the league itself.
Mixing in their unique intellect and personalities, the authors use their vast academic and practical experience
to make this book a must-read for future generations of sport marketers, managers, and perhaps even
commissioners in their “retirement.”
David J. Stern
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Preface
There is only one way to describe the massive changes in the sport world since the first edition of Sport
Marketing came out in 1993: “Holy cow!” as the late Harry Caray always put it. In 1993 most people would
have thought that the Internet was a spy ring and that a web page was something in a newsletter of Ducks
Unlimited. When our second edition appeared in 2000, the Internet was old hat, but it was still the most
innovative medium of the age. File sharing was just beginning in 2000. And what of the concept of social
media? In 2000 Internet nerds would have thought that YouTube was a phrase deriding old media. Hardly.
By 2007 YouTube.com had become the hottest site on the Internet. More than a million video clips were
viewed each day, many of them sporting events. In 2014 we can add Facebook, Twitter, Instagram, and other
social media as both products and experiences that have transformed the way that consumers engage sport.
And just about everything has gone wireless, especially with the explosive growth of smartphones. Marketers
have adapted. Executives throughout the sport world get their industry news and data through online services
such as SportsBusinessDaily.com and SBRnet.com, and trade publications, such as Street & Smith’s
SportsBusiness Journal and Athletic Business, have online versions. But they all employ social media and wireless
technologies to gather and dispense information. We have incorporated many of the latest marketing ideas in
this edition, but new products and services are emerging daily.
Some things haven’t changed much. The competition for the sport and entertainment dollar is as heavy as
ever. Sport marketing is a competitive business involving as much front-office strategy, risk, discipline, and
energy as that shown by the players and coaches who figure so prominently in the public’s imagination. The
fourth edition of Sport Marketing offers abundant examples of the latest issues in the competitive marketplace.
As academics, we have been studying changes in the sport industry for over 40 years, long before Forbes and
Fortune began to take sport seriously with regular coverage. When we started out as graduate students in the
early 1970s, few scholars were willing to accept sport as a serious topic of study. Now leading academics in
marketing, management, law, and economics (to name only a few disciplines) are rushing headlong for book
contracts on sport. We have both followed and helped build this growing body of literature. More important,
each of us has also worked inside the industry, trying to make sense of the ways that fans, players, coaches, the
media, equipment companies, and others interact to make the game tick. We have planned, administered, or
consulted on literally thousands of events across just about every sport considered mainstream and at just
about every level. This book emanates from our own fusion of experience as academics and practitioners. We
have written a survey that we hope is as useful for the classroom student as it is for the athletics director of a
college or high school or the marketer of a professional franchise.
We have tried to balance theoretical models with case studies from the rinks, fields, courts, slopes, gyms,
tracks, and other venues that make up the sport marketplace. If theory is the skeleton that gives structure to
thinking, then case studies put meat on the bones. Although most of our examples are from the United States,
we have added considerable material from sports in other countries and cultures.
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Readers of past editions will find both continuity and change in this book. Chapters 1 through 3 provide an
overview of the sport market and sport marketing as an area of study and as a process. Chapters 4 (by Haynes
Hendrickson, Steve Seiferheld, Nikolay Panchev, Jaclyn Cranston, Leigh Buwen, and Evelyn Dwyer of
Turnkey) and 5 consider conceptual tools and steps of preliminary market research and market segmentation,
which are critical to overcoming a tendency to equate promotions with marketing. Chapters 6 through 13
explore the nuts and bolts of marketing plans—the five Ps of sport marketing: product, price, promotion,
place, and public relations. But these Ps are conceptually robust, so readers will note special chapters or
chapter sections on branding (Jay Gladden), sales and service, engagement and activation, community
relations (Kathy Connors), and social media (Kirsten Corio). The last three chapters offer some important
elements on legal issues (Steve McKelvey and John Grady), control, evaluation, and projecting the future. The
book is filled with sidebars written by other industry and academic leaders. We thank them all for their
contributions.
The world of sport marketing continues to challenge and excite us. We only hope that this edition is as
enjoyable to read as it was to write.
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Web Study Guide
A new and exciting addition to the fourth edition is the web study guide (WSG), which gives students the
opportunity to listen to sport industry leaders talk about how they incorporate marketing strategies into their
daily work through exclusive video clips produced by David Perricone, who has experience as an academic and
practitioner. Activities are built around these video clips, asking students to do what these industry experts
already do: integrate core concepts and strategies from the textbook into applied situations.
Besides the video-based exercises, the web study guide has web search activities in which students will assess
and compare strategies that can be found on sport organization websites, YouTube, and other online
locations. These two activity types ensure that students will have even more opportunity to engage in the
material found in these pages. Throughout the book, students are directed to the web study guide with cross-
references like this:
College sport marketing has traditionally been centered in the United States. In this WSG
activity, you will learn how a globalized marketplace is changing college sports.
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Instructor Resources
A full array of instructor resources are available:
Presentation package plus image bank: The presentation package includes more than 400 slides that
cover the key points from the text, including 30 select figures and tables. Instructors can easily add new
slides to the presentation package to suit their needs. The image bank includes all the figures and tables
from the book, separated by chapter. These items can be added to the presentation package, student
handouts, and so on.
Instructor guide: The instructor guide includes a sample syllabus and ideas for semester-long activities
and case studies. Individual chapter-by-chapter files include a chapter summary, chapter objectives,
chapter outline, and classroom ideas, which include the suggestion of case studies from the online
journal Case Studies in Sport Management.
Test package: The test package includes more than 200 questions in true–false, multiple-choice, fill-in-
the-blank, and short-answer formats. These questions are available in multiple formats for a variety of
instructor uses and can be used to create tests and quizzes to measure student understanding.
Chapter quizzes: New to the fourth edition are chapter quizzes. These LMS-compatible, ready-made
quizzes can be used to measure student learning of the most important concepts for each chapter. More
than 150 questions (8 to 10 questions per chapter) are included in true–false, multiple-choice, fill-in-
the-blank, and short-answer formats.
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Acknowledgments
Our chapter notes acknowledge the sources that we have used. In addition, we offer special acknowledgments
to a number of people. The first is David Stern, one of the premier sport marketing minds in the world. We
thank David for giving two of us the opportunity to work in the NBA as well as for sharing his insights and
providing daily inspiration through his strategic marketing initiatives. We also recognize the contributions
and value of the late Bill Veeck, whose writings and innovations continually remind us of the importance of
the fans and sport consumer behavior. Likewise, we appreciate Mike Veeck because he has done the same and
has forced us to examine our own practices and approaches when we forget about the fans. On the academic
side, we are indebted to Philip Kotler for his numerous contributions to the field of marketing, which have
influenced our thinking in terms of sport marketing. We have dedicated this edition to Dr. Guy Lewis, who
has been instrumental in shaping the academic coursework and program content for many of the
undergraduate and graduate programs in sport management. Matt Levine of SourceUSA, one of the original
and leading sport marketing consultants who helped shape the study of sport consumer behavior, has also
continued to inspire our thinking. We acknowledge the many academics who contribute to Sport Marketing
Quarterly and are members of the Sport Marketing Association (SMA). The research of our academic
colleagues and their tireless preparation of the sport marketers of tomorrow provide constant inspiration and
motivation to us.
We also offer special thanks to our chapter and sidebar contributors: Melissa Rosenthal Brenner, Leigh
Buwen, Ward Bullard, William Carafello, Catherine Carlson, Leigh Castergine, Kathy Connors, Kirsten
Corio, Jaclyn Cranston, Lou DePaoli, Ari de Wilde, Evelyn Dwyer, Jay Gladden, John Grady, Shane
Harmon, Adam Haukap, Chris Heck, Haynes Hendrickson, Jeff Ianello, Dae Hee Kwak, Amber Lilyestrom,
Jordan Maleh, Amy Jo Martin, Steve McKelvey, Brian Norman, Nikolay Panchev, Dave Perricone, Sarah
Sceery, Jared Schoenfeld, Susan Schroeder, Steve Seiferheld, Chad Seifried, Dr. Alan Seymour, Peter
Stringer, Jennifer Tobias, and Eric Woolworth.
Many other people helped us obtain, organize, and develop materials for the book. Mia Ramer, Madison
Southerlin, and Ben Holmes at the Aspire Group did research work to update data on participation,
demographics, and other sidebar facts. University of South Florida graduate students Kristine Carcione, Kayla
Chesanek, Katie Hatch and Amanda Puccinell also contributed their expertise. Abe Madkour and the staff at
SportsBusiness Daily (now an essential resource for anyone trying to make sense of the sport industry) have
been ever gracious with their help and permissions. Abe also contributed his views on the future in our last
chapter. Others who have given constant support and inspiration include Dot Sheehan, Steve Metcalf, and
Marty Scarano of the University of New Hampshire and Roger Godin of the Minnesota Wild. Thanks also to
Kirstin Kay and Tanya Downey at the University of Massachusetts, Amherst for providing us with the picture
of Guy Lewis on the dedication page.
This book could not have been done without the help and dedication of our editors from Human Kinetics—
Myles Schrag and Amanda Ewing. They whipped us, encouraged us, and coddled us as the time and case
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required. They are outstanding professionals.
In our capacities as sport administrators and consultants, we have worked with hundreds of dedicated
executives, marketers, coaches, salespersons, customer service professionals, public and community relations
personnel, and sports information directors who have inspired us with their energy, dedication, and passion.
As academics, we thank and salute our colleagues and students over the years at the University of
Washington, Robert Morris University, Ohio State University, the University of Massachusetts, the
University of New Hampshire, the University of Central Florida, and the University of South Florida. These
colleagues and students have challenged, stretched, reshaped, and indulged our thinking on all the topics in
this book. We hope that we can convey to our readers their wisdom, their enthusiasm, their wonder for
learning, and their passion for moving the field forward.
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Chapter 1
The Special Nature of Sport Marketing
© Human Kinetics
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Objectives
To understand the market forces that create the need for enlightened marketing strategies in the
sport industry
To understand marketing myopia and other obstacles to successful marketing strategy
To recognize the components of the sport product and the sport industry
To recognize the factors that demand a different approach to the marketing of sport
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Linsanity and the Global Sport Marketplace
Sports Illustrated was clear in its assessment: “Nothing, anywhere, has ever resembled the ascendance of
Jeremy Shu-How Lin, a legend seemingly pulled from the imagination of a goose-fleshed David Stern,
if not Disney’s most hyperbolic global marketing exec.” And this was only five games into Linsanity or
Linmania or . . . Linmarketing. Overlooked out of Palo Alto High School, taunted with racial slurs
while playing at Harvard, undrafted and twice cast off by NBA teams, Lin made the most of his
February 2012 chance with the New York Knicks. He was an early Valentine gift for his team, for
Madison Square Garden, for the NBA, for the world of basketball, and for sports fans everywhere. Oh,
and don’t forget marketers. Nine games into the drama, Lin had led the Knicks to an 8-1 record as he
threw up all-star numbers by averaging 25 points, 9.2 assists, and 3.8 rebounds per game. Both Lin and
the Knicks cooled off a tad by the All-Star break at month’s end. By mid-March they had suffered a
losing streak that mirrored the earlier run of wins. The team changed coaches. And then Lin went down
with a season-ending injury, fueling an equally strong conversation with a long lineage in sport. Would
he last in the league, or would he flame out? In July 2012 the Houston Rockets ensured the story’s
extension when they signed free agent Lin to a three-year, $25.1 million deal.1
Time would tell whether Jeremy Lin endured in the NBA. But action on the court was only half the
story. Linsanity, regardless of how long or short the run, offered a miniseries on the world of sport
marketing in the early 21st century. Jeremy Lin was both a player and a product to be branded,
monetized, and distributed in a global system. He embodied key ingredients of the successful sport
brands of the era.2
Stickiness
Jeremy Lin and his performance held the public’s imagination because they contained all the elements
that Chip and Dan Heath claimed were crucial to the “stickiness” of any product or idea:
Simplicity—Basketball statistics are simple. Unlike the economy or the political landscape,
basketball did not require observers to unravel or parse complicated formulas or polls in
considering Lin’s performance.
Unexpectedness—Few basketball experts predicted that Lin would even play in the NBA, let alone
be a phenomenon.
Concreteness—No conceptual fuzziness was involved in watching a YouTube clip of Lin
highlights.
Credibility—This question would loom large over time, as it does with every player in every sport,
at every level. Jeremy Lin was the real deal in February 2012. Would he hold up?
Emotion—One look at the way Lin played or the way that fans responded in Madison Square
Garden revealed great depth of emotion.
Narrativity—Lin’s background, his struggle to succeed, and his triumph (however brief) were the
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fodder for endless stories.
International Reach
As with David Beckham in world football and Alex Ovechkin in ice hockey, stories about Jeremy Lin
played up his following across continents, in this case to China. One mid-February report from China
noted that “The clearest sign that Jeremy Lin’s appeal has spanned the Pacific to mainland China may
lie not in the 1.4 million Chinese microblog [Twitter-like] messages mentioning him in recent days, but
in a rare failure to meet demand here in the heart of one of the world’s largest centers of pirated garment
manufacturing.” As one store clerk near Shanghai noted tellingly, “His jerseys have sold out, even
including the counterfeit ones.” A Chinese friend of Lin reported that Lin highlights were streaming out
of mounted video monitors along the Beijing subway. “Everyone thinks it’s crazy in the U.S.,” said
Cheng Ho, “but it’s a much bigger storm here in China.” For two decades, sport properties (players,
teams, leagues, events, venues) had expanded their market horizons from the national to the global.
China was on everyone’s mind, especially in basketball. After all, 65 million Chinese viewers had
watched their national team play a preliminary match against Greece in the 2010 FIBA World
Championships held in Istanbul. That figure far exceeded the 24 million who watched Butler versus
Duke in the 2010 NCAA Men’s Basketball Championship. Jeremy Lin might not solve America’s trade
imbalance with China, but he was surely contributing.3
Lin was a symbol of many things to many people. He was hope to underdogs of any nationality,
especially those of Chinese heritage, and especially on the Chinese mainland, where a Communist party
chief posted a microblog focusing on Jiaxing—the home of Lin’s maternal grandmother. Xi Jinping, vice
president of the People’s Republic, happened to be visiting Barack Obama when Linsanity was at an
apex. He told the Washington Post, “I do watch NBA games on television when I have time.” Only four
months earlier, party leaders had announced a new initiative to promote “spiritual affluence” and
“creativity” so that Chinese culture—with “core socialist values”—might match other Chinese products
on the export market. With the great Yao Ming in retirement, apparently the capitalist NBA’s Jeremy
Lin would do in the short run. But if Chinese Communists wanted to claim him, so did Chinese
Christians, who emphasized his great grandfather’s conversion and hoped that young Jeremy’s success
and faith would help their cause. So did Taiwanese, because Jeremy’s family had fled the mainland. Like
most popular players and teams, Jeremy Lin could symbolize many things to many people.4
Media Squabbles
For many in the New York metro area, Linsanity was the condition caused by an inability to watch the
Knicks on television. At the height of the mania in mid-February, some 2.5 million New York state
Time Warner cable customers could not watch the Knicks because of a squabble over carriage costs
demanded by the MSG network, which televised Knicks games. One Chinatown resident summed up
the frustration. “It doesn’t make sense,” he complained, “for a New Yorker to not be able to watch their
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home teams.” Welcome to the dollars and cents world of sport product distribution, where teams and
leagues have formed television networks (e.g., Big Ten, Pac 12, University of Texas) that require carriage
on a cable system, preferably on a standard platform that reaches all customers, and returns a hefty per-
customer fee. In other words, every new sports network wants the deal that ESPN has. Negotiations in
New York turned bitter and led to a 48-day blackout. In this case Linsanity won the day. Governor
Andrew Cuomo and public pressure corralled the two firms to reach a deal, in time to watch Lin and the
Knicks cool off. Given the ever-rising rights fees that networks have paid to teams and leagues, however,
we may expect more squabbles and more blackouts for sports fans.5
Just a few decades ago, a meteor like Jeremy Lin would have been measured solely by playing stats and
salary. Although Lin’s numbers were closely followed, the media circulated an equal amount of
information on his value as a commodity. As Sports Illustrated’s Pablo Torre reported, three weeks of
Linsanity had spiked stock in the MSG Corporation (owner of the Knicks) by 11 percent. The Knicks
online store had seen traffic and sales skyrocket by over 4,000 percent. The MSG cable channel had seen
its metro ratings rise 70 percent. An area sporting goods chain had sold over 50,000 items of Lin
merchandise. Over the first week of the run, Lin got more social media buzz than President Barack
Obama. Even after the cool-down, fan interest kept rising. Two late February games drew ratings over
7.3 for the MSG Network, both higher than the regular-season record set in 1995 for a game that
featured Michael Jordan redux. On the other hand, when Lin injured his knee, sales of Lin merchandise
suffered. The Modell’s sporting goods chain was stuck with 40,000 items to sell. His July free-agent
departure to Houston cut T-shirt prices from $20 to $5; replica jerseys sank from $60 to $20, and that
was the day after the Knicks announced that they would not match the Houston offer. 6
In 2012 Jeremy Lin was a product that captured attention, emotion, and sales on an international stage.
Despite sport scandals of all stripes—racism in the English Premier League, endless doping sagas in
cycling, match fixing in cricket, a cover-up of pedophilia at Penn State—fans around the world remained
eager to embrace someone like Jeremy Lin, who combined hard work with inherent talent and made the
most out of his chance, no matter how long it lasted. In many respects, he was simply repeating a
fundamental sports story, only he was living and playing in a rapidly changing marketplace.
Although entrepreneurs have been selling sport for centuries, rational systems of marketing sport are relatively
new. In this chapter, we discuss the need to employ modern marketing principles in the sport domain. We
examine sport industry trends in growth and competition that heighten the need for scientific, professional
approaches to sport marketing. We consider examples of lingering marketing myopia in sport, as well as
significant progress. Next, we consider the components of the sport product and the sport industry. Finally,
we outline the numerous features that in combination make sport marketing unique.
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Activity 1.1 Recent History of Sport Marketing
In this WSG activity, you will consider how sport marketing has changed in the past 30
years, why sport is unique to marketing compared to traditional products, and how sport
marketing professionals can be more successful in their work.
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The NBA and Global Marketing Strategy
Jeremy Lin is a marketing parable, but so is the NBA. Over the last three decades, David Stern emerged as
lord of a far-flung, international empire inappropriately called the National Basketball Association. When
Stern became commissioner in 1984 (he had been NBA general counsel since 1978), the NBA was a
struggling enterprise, despite having stars such as Magic Johnson and Larry Bird. Teams were playing in
arenas filled to less than two-thirds capacity, NBA merchandise sales were only about $15 million, and
network television coverage was limited—the finals were shown on tape delay. Worse yet, corporate sponsors
were scared off, in large part because of a poor public image resulting from drug scandals and labor strife. As
one NBA executive recalled in a 1991 profile of Stern, “If you had 30 minutes with a prospective sponsor,
your first 20 minutes were spent trying to convince him that the players weren’t all on drugs.”7
Even before his elevation to the commissionership, Stern had laid the foundation for the NBA to become one
of the most successful brand names in sport. He did it by recognizing and using standard tools of marketing.
He knew, among other things, that product recognition required a more expansive television package. In turn,
the broadcast networks demanded a more stable product with a cleaner image. That meant getting owners and
players to agree on several fundamental issues, including revenue sharing, salary caps, and tougher drug
testing. As a Spalding executive concluded, “A good marketing guy knows that he has to get the product right
before marketing it. That’s what Stern did with basketball.”8
If Stern spent the 1980s getting his product right, he focused the next decades on worldwide product
distribution. More than anything, Stern believed in going global. The NBA could create an empire along the
lines of British mercantilism—with fine, finished products moving from North America to distant centers of
exchange like Moscow, Buenos Aires, Cape Town, and Beijing—especially Beijing. Some surveys conducted
in 2003 suggested that among China’s more than 1 billion people, basketball had supplanted soccer in
popularity. In the first four years of the new millennium, the Chinese edition of the NBA’s Time and Space
magazine had boomed to a circulation of over 200,000. NBA games were a regular Sunday feature on China
Central Television. NBA logos adorned the apparel worn by the coolest kids on China’s hoop courts, which
now drew the crowds once reserved for Ping-Pong tables.9
By 2004 the NBA finals were broadcasted to 205 countries in 42 languages. The international traffic on
NBA.com was well over 40 percent of the total; the league had nine foreign-language websites. Yao Ming was
only the tallest of the internationals on NBA rosters; the total number had expanded from 65 in 2002–2003 to
84. The synergy was obvious. For instance, Dirk Nowitzki’s success with the Dallas Mavericks translated into
five television outlets in Germany. And every new foreign star meant more foreign exposure. By October 2004
the NBA had 212 international television deals.10
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David Stern (center, holding trophy) has helped to turn the NBA into a global empire.
Much of the NBA’s success stemmed from what might be called an open-architecture strategy in its global
expansion. That is, the focus of effort was as much to promote basketball as it was to promote the NBA brand
of basketball. The NBA did not initially look to enter markets with total product control. In 1987 David
Stern visited Beijing with the simple notion that Chinese national television, CCTV, might be interested in
showing weekly NBA highlights for a share of advertising revenues. That arrangement slowly grew to include
live games broadcast on provincial and local television stations during Michael Jordan’s heyday. When Yao
Ming joined the NBA in 2002, the stream of distribution and revenues turned into a torrent. Run-of-the-mill
games drew up to 15 million viewers for morning broadcasts and triple that number for a game with Yao.
Stern was hardly alone in his China strategy. In 2009 alone foreign enterprises invested $572 million on 34
sport projects. From 2000 through 20009, total foreign sport investment increased 12-fold. The NBA learned
by hard experience that the Chinese wanted partners to build their own talent and their own league, the CBA,
and Chinese Central Television could be a hard-nosed negotiator. Stern and his associates have suspended
their notions of an NBA China, instead planning for exchanges for Chinese referees and coaches to obtain
advanced training in the United States and for a player’s academy in southern China. Working with China as
a partner fits with David Stern’s long view that what is good for the global game will be good for the NBA.11
Stern’s “soft power” approach to global presence has paid off in many ways, not least of which is a good
working relationship with FIBA, the game’s international governing body. In early 2011 FIBA secretary
general Patrick Baumann, a Swiss, told the international SportsPro Magazine that David Stern ranked among
the three most influential people in the history of basketball. “The NBA is probably the very best at marketing
its league,” he emphasized. Although not conceding on the level of organization or growing the game, he
noted that on “the exploitation of the rights and making this property a valuable property from a commercial
standpoint, I think there is no other league than the NBA.”12
The global economy also boosted prospects for other sport leagues. The National Hockey League and Major
League Baseball, for instance, both attracted top talent from overseas, such as Europeans to the NHL and
29
Asians to MLB. But the flows of commerce worked along multiple currents. Russia’s Kontinental Hockey
League and Japan’s Nippon Professional Baseball have attracted top players and coaches from North America.
Expanding sports networks deliver televised events across countries and continents. Americans have ESPN,
Canadians have TSN, and Europeans have Eurosport. The Middle East has Al Jazeera Sport; Australians
have TVN. And this is only a short list. The most pronounced consequences of such circulation occurred in
world football, the globe’s number one game. FIFA, the international governing body, reported that television
coverage of the 2010 World Cup in South Africa “reached over 3.2 billion people ‘in-home’ around the world,
or 46.4 per cent of the global population, based on viewers watching a minimum of over one minute of
coverage.” Every country and territory on the globe had viewers. Staggering though the number is, it did not
even include “people watching out-of-home at the FIFA Fan Fests and other public viewing venues, as well as
in pubs, bars, restaurants, clubs, hotels, or even online and via mobile handsets.”13
In football’s global market, the world’s talent moved to European leagues, especially England’s Premiership,
Italy’s Serie A, and Spain’s La Liga. If the NBA looked to Europe and China for expansion markets, the
Europeans saw America as ripe for the picking. A steady swell of youth soccer players, “soccer moms,” and
their families had provided a strong base for the United States’ successful hosting of World Cups in 1994
(men’s) and 1999 (women’s). Major League Soccer, hatched after the 1994 World Cup, was averaging crowds
over 15,000 by 2004, better than those in Argentine and Dutch leagues. By 2011 the MLS average had
increased to 17,872, a respectable size when compared with other leagues, as shown in table 1.1. North
America appeared to have arrived as a market for world football.
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Activity 1.2 The Global Marketing Strategy
College sport marketing has traditionally been centered in the United States. In this WSG
activity, you will learn how a globalized marketplace is changing college sports.
31
Weathering Recessions
Global competition was shifting the realities of the sport marketplace at the turn of the 20th century. So were
the economic booms and busts. As early as 1998, Street & Smith’s SportsBusiness Journal asked the headline
question “Is Sports Business Recession-Proof?” The answers were mixed. Most industry insiders said yes (no
surprise). But some bankers and economists were less certain. Randy Vataha, an investment banker (and an
NFL alum), worried about the 1990s buildup of luxury seats that would likely be threatened by a recession. As
the stock market bubble reached its peak, the ESPN Chilton poll announced that the last half of the 1990s
had seen a decrease in the percentage of Americans who considered themselves fans of the NFL (–3.06
percent), the NBA (–11.38 percent), the NHL (–8.57 percent), college basketball (–8.45 percent), and college
football (–6.37 percent), all this despite general increases in aggregate attendance.14
The next decade saw both dot-com and real estate bubbles burst—the first in 2000, the second in 2008—
unleashing recessions to wreak havoc on economies at the national and household levels. The effects on sport
were palpable, as a few examples suggest:
Sport-related construction slipped 7.9 percent in the United States between 1999 and 2001. This
decrease was in contrast to the 22.3 percent increase in overall construction spending during the same
period.15
Overall attendance in Major League Baseball went significantly down and up twice over the decade, in
tune with the economy. The downturn in 2009 was an aggregate 5,220,345 (6.64 percent), the highest
overall decline in history and the fourth largest percentage decline. Only slightly behind was the 2002
decline of 4,448,769 (6.30 percent). League attendance bounced back in both cases, but it was a tense
roller coaster ride.16
Franchises, especially in the minor leagues, were stressed to their limits. In early 2009 the Southern
Professional Hockey League lost two franchises. Richmond (VA) Renegades GM Allan B. Harvie Jr.
repeated the obvious and painful reality: “The economy has driven a spike into the heart of the leisure-
time market and fans have very hard choices to make with their money.” Successful teams were not
spared. Although the EPL’s Chelsea sold out all 24,000 season tickets in 2011, they had softness in sales
of premium seats that went for $1,000 per game and with luxury boxes.17
Corporate sponsors, especially in the financial sector, were forced to rethink their expensive partnerships
with sport properties. Many reduced or dropped their deals. The Royal Bank of Scotland was a good
example. In February 2009 the venerable institution, which faced nearly £30 billion in losses, announced
that it was cutting its sport funding by half.18
In 2012 the Football League, the English association of 72 professional clubs playing in tiers below the
Premier League, saw a 26 percent decline in its three-year television broadcast package with the Sky
network, from $420.5 million to $316.6 million.19
Sport wasn’t the only sector affected. The wider entertainment industry was also reeling. Rolling Stone
reported that attendance at North American music shows dropped an “astonishing” 24.4 percent in
32
2010 compared with 2009. Gross sales were down 26 percent, in part because the number of concerts
was down 16 percent. Promoters weren’t taking chances.20
Teams and leagues responded in emergency fashion. In the fall of 2008, the New Jersey Nets gave season-
ticket holders an extension on payment until January 2009. The Indiana Pacers didn’t even charge their
season-ticket holders for preseason games, a loss they estimated at $2 million. That same year, English
Premier League clubs started to slash ticket prices; for example, Newcastle cut prices by 9 percent on average,
and Manchester City reduced prices by 7 percent.21
Even the NFL, about as close to bulletproof as a sport league can be, had to respond to soft demand. Ticket
sales were way off for the 2009 Super Bowl, held in Tampa. Only days before kickoff, StubHub could not
unload 3,000 tickets. A spokesman quipped, “In terms of pricing, this game has become the Limbo Bowl—
how low can it go?” SportsBusiness Journal surveyed the league’s 32 teams in late summer 2009 as the national
and world economy kept sagging. The basic question was this: How have you responded to the recession? All
but three franchises reported either a ticket price freeze or new initiatives in sales closer to those used in the
NBA or MLB. Only four teams had raised prices across the board—almost a given in the good old days.
Many teams rolled out new group-ticket packages, staged special meetings between coaches or executives and
season-ticket holders, or offered miniplans. All these tactics have been outlined in earlier editions of Sport
Marketing. The recession had prompted NFL action. As the St. Louis Rams COO put it, “The days of rolling
out the football and expecting to sell out are done.”22
Longtime pollster Rich Luker remained gloomy about the American market in late 2010 after two solid years
of surveys indicated nagging consumer concerns about the ability to spend on sport. He said, “Let’s face it:
We are not getting past this any time soon.” That same fall a reader’s survey by SSSBJ found that 28.9 percent
of respondents, the largest segment of respondents by a wide margin, ranked rising ticket prices as the biggest
threat to sport. The next top threat was disconnect with fan base, a reason chosen by 19.8 percent of
respondents. Luker’s pessimism seemed confirmed by some striking attendance drops among college
basketball powers. In early 2012 the Chronicle of Higher Education analyzed NCAA Division I men’s basketball
attendance. Although overall numbers had held steady, some significant drops had occurred at local and
regional levels. Between 2009 and 2012, Arizona State dropped over 40 percent in attendance. The Pac-12
overall dropped 14 percent. Missouri dropped by 21 percent, and Indiana declined by 15 percent. The
Atlantic Coast Conference slid 7 percent overall.23
33
The Competitive Marketplace
Economists and journalists have occasionally cobbled together estimates on the size of America’s sport
industry. Unfortunately, each study has employed different methods and different assumptions. Consequently,
we have no longitudinal data tracking sport industry growth over time, using generally agreed-upon methods.
In any case, one must recognize that the sport industry, by any calculation, is a small piece of the economic
pie. For instance, one study pegged the 1995 gross domestic sport product at $152 billion, claiming that sport
was the 11th largest industry in the American economy. That figure would equal $229 billion in 2012 dollars.
The overall 1995 GDP, however, was $7.4 trillion (in 2012 dollars), meaning that despite widespread media
attention, sport accounted for just 3 percent of overall GDP. A more recent, and more conservative, approach
found that the aggregate demand and aggregate supply of the 2005 sport industry ranged between $44 and
$73 billion. Given that year’s $12.6 trillion GDP, even the higher number ($73 billion) amounted to a paltry
.6 percent of overall GDP.24
Other data suggest that the American sport market is growing only slightly. For instance, past Census Bureau
figures have shown that in 1970, recreation accounted for 4.3 percent of total personal consumption. By 1980
recreation had grown to 5.3 percent of total personal consumption. As table 1.2 illustrates, recreation’s piece
of the consumption pie continued to expand until it plateaued in the 9 percent range in the last two decades.
The statistics were mixed, however, for spectator sports. In 1970, Census figures suggested that spectator
sports admissions accounted for 3.9 percent of the total recreation consumption pie. That number shrank over
the next decade to 2.8 percent in 1980. Table 1.2 shows that spectator sports continued the slump to a mere
1.52 percent in 1990 before seeing a small but steady increase. And where is the recreation dollar going? As
table 1.2 suggests, the video, audio, computer, and musical goods segment has grown more steadily in the last
decade as a percentage of all recreation expenditures. One might argue that spectator sports events simply
can’t expand like DVRs or iPods or smartphones. Sport requires an infrastructure of fields and stadiums,
which are slow to develop. And some argue that many people are using their smartphones or tablets to view
sport. All this is true. At the same time, competition for the discretionary dollar is heated. This competition is
especially fierce inside the sport industry.
34
Of course, competition is the nature of sport. For well over a century, entrepreneurs and investors have jostled
for market space, particularly in professional team sports. Sport in America offers several examples. The
troubles of professional baseball are internal these days, but the history of the game is punctuated by a number
of wars among rival leagues, the last threat being the Continental League in the early 1960s. Football took
center stage in the 1960s with the rivalry between the American and National Football Leagues. The World
Football League and the U.S. Football League followed in the 1970s and 1980s. In 2000 two sport magnates
—Dick Ebersol of NBC and Vince McMahon of the World Wrestling Federation—announced a new
competitor, the XFL. Like many of its predecessors, however, the XFL died after its inaugural 2001 season.
Another interesting market battle was in women’s pro basketball, in which the Women’s National Basketball
Association (WNBA) and the American Basketball League (ABL) offered consumers alternative visions of a
“big league” until the ABL dissolved in early 1999. The successful Women’s World Cup of 1999 spawned the
first women’s professional soccer league (WUSA), which opened in 2001 with eight teams. By September
2003 the league had collapsed. Another attempt (WPS) in 2009 lasted three seasons, but was shut down in
2012.25
In December 2011 SportsBusiness Daily published Harris Poll data from 1985 to 2011 that tracked the favorite
sports among U.S. fans (defined as adults who follow at least one sport). The results are suggestive. Baseball
had been the favorite of 23 percent in 1985, a close second to pro football (24 percent). By 2011, however,
baseball had slipped steadily to be a favorite of only 13 percent of American adults—tied with college football.
Meanwhile pro football had grown to be the heads-on favorite at 36 percent. Auto racing had grown slightly
—from 5 percent to 8 percent, as had hockey—from 2 percent to 5 percent. Tennis had dropped from 5
percent to 2 percent. Other sports had been flat or shifted 1 or 2 percent in a very low range. Of course, a fan
might avidly follow more than one sport. But the data clearly suggested that pro football had grown in the
public’s imagination, while baseball had slipped.26
Action sports had been an industry darling in the late 1990s and beyond, but something ominous was
happening. Data from the National Sporting Goods Association and the Sporting Goods Manufacturers
Association indicated significant downward participation trends in skateboarding and BMX biking since
2000. Snowboarding had flattened. Ratings for the X Games and the Dew Tour had declined. Worse yet,
polls indicated that the cohort of avid action sports fans among 12- to 17-year-olds had been declining for
nine years. Action sports had been the hot ticket for access to youth. What was happening? Consumers were
shifting their sports allegiance, as they had been doing for decades.27
35
Another random document with
no related content on Scribd:
DANCE ON STILTS AT THE GIRLS’ UNYAGO, NIUCHI
I see increasing reason to believe that the view formed some time
back as to the origin of the Makonde bush is the correct one. I have
no doubt that it is not a natural product, but the result of human
occupation. Those parts of the high country where man—as a very
slight amount of practice enables the eye to perceive at once—has not
yet penetrated with axe and hoe, are still occupied by a splendid
timber forest quite able to sustain a comparison with our mixed
forests in Germany. But wherever man has once built his hut or tilled
his field, this horrible bush springs up. Every phase of this process
may be seen in the course of a couple of hours’ walk along the main
road. From the bush to right or left, one hears the sound of the axe—
not from one spot only, but from several directions at once. A few
steps further on, we can see what is taking place. The brush has been
cut down and piled up in heaps to the height of a yard or more,
between which the trunks of the large trees stand up like the last
pillars of a magnificent ruined building. These, too, present a
melancholy spectacle: the destructive Makonde have ringed them—
cut a broad strip of bark all round to ensure their dying off—and also
piled up pyramids of brush round them. Father and son, mother and
son-in-law, are chopping away perseveringly in the background—too
busy, almost, to look round at the white stranger, who usually excites
so much interest. If you pass by the same place a week later, the piles
of brushwood have disappeared and a thick layer of ashes has taken
the place of the green forest. The large trees stretch their
smouldering trunks and branches in dumb accusation to heaven—if
they have not already fallen and been more or less reduced to ashes,
perhaps only showing as a white stripe on the dark ground.
This work of destruction is carried out by the Makonde alike on the
virgin forest and on the bush which has sprung up on sites already
cultivated and deserted. In the second case they are saved the trouble
of burning the large trees, these being entirely absent in the
secondary bush.
After burning this piece of forest ground and loosening it with the
hoe, the native sows his corn and plants his vegetables. All over the
country, he goes in for bed-culture, which requires, and, in fact,
receives, the most careful attention. Weeds are nowhere tolerated in
the south of German East Africa. The crops may fail on the plains,
where droughts are frequent, but never on the plateau with its
abundant rains and heavy dews. Its fortunate inhabitants even have
the satisfaction of seeing the proud Wayao and Wamakua working
for them as labourers, driven by hunger to serve where they were
accustomed to rule.
But the light, sandy soil is soon exhausted, and would yield no
harvest the second year if cultivated twice running. This fact has
been familiar to the native for ages; consequently he provides in
time, and, while his crop is growing, prepares the next plot with axe
and firebrand. Next year he plants this with his various crops and
lets the first piece lie fallow. For a short time it remains waste and
desolate; then nature steps in to repair the destruction wrought by
man; a thousand new growths spring out of the exhausted soil, and
even the old stumps put forth fresh shoots. Next year the new growth
is up to one’s knees, and in a few years more it is that terrible,
impenetrable bush, which maintains its position till the black
occupier of the land has made the round of all the available sites and
come back to his starting point.
The Makonde are, body and soul, so to speak, one with this bush.
According to my Yao informants, indeed, their name means nothing
else but “bush people.” Their own tradition says that they have been
settled up here for a very long time, but to my surprise they laid great
stress on an original immigration. Their old homes were in the
south-east, near Mikindani and the mouth of the Rovuma, whence
their peaceful forefathers were driven by the continual raids of the
Sakalavas from Madagascar and the warlike Shirazis[47] of the coast,
to take refuge on the almost inaccessible plateau. I have studied
African ethnology for twenty years, but the fact that changes of
population in this apparently quiet and peaceable corner of the earth
could have been occasioned by outside enterprises taking place on
the high seas, was completely new to me. It is, no doubt, however,
correct.
The charming tribal legend of the Makonde—besides informing us
of other interesting matters—explains why they have to live in the
thickest of the bush and a long way from the edge of the plateau,
instead of making their permanent homes beside the purling brooks
and springs of the low country.
“The place where the tribe originated is Mahuta, on the southern
side of the plateau towards the Rovuma, where of old time there was
nothing but thick bush. Out of this bush came a man who never
washed himself or shaved his head, and who ate and drank but little.
He went out and made a human figure from the wood of a tree
growing in the open country, which he took home to his abode in the
bush and there set it upright. In the night this image came to life and
was a woman. The man and woman went down together to the
Rovuma to wash themselves. Here the woman gave birth to a still-
born child. They left that place and passed over the high land into the
valley of the Mbemkuru, where the woman had another child, which
was also born dead. Then they returned to the high bush country of
Mahuta, where the third child was born, which lived and grew up. In
course of time, the couple had many more children, and called
themselves Wamatanda. These were the ancestral stock of the
Makonde, also called Wamakonde,[48] i.e., aborigines. Their
forefather, the man from the bush, gave his children the command to
bury their dead upright, in memory of the mother of their race who
was cut out of wood and awoke to life when standing upright. He also
warned them against settling in the valleys and near large streams,
for sickness and death dwelt there. They were to make it a rule to
have their huts at least an hour’s walk from the nearest watering-
place; then their children would thrive and escape illness.”
The explanation of the name Makonde given by my informants is
somewhat different from that contained in the above legend, which I
extract from a little book (small, but packed with information), by
Pater Adams, entitled Lindi und sein Hinterland. Otherwise, my
results agree exactly with the statements of the legend. Washing?
Hapana—there is no such thing. Why should they do so? As it is, the
supply of water scarcely suffices for cooking and drinking; other
people do not wash, so why should the Makonde distinguish himself
by such needless eccentricity? As for shaving the head, the short,
woolly crop scarcely needs it,[49] so the second ancestral precept is
likewise easy enough to follow. Beyond this, however, there is
nothing ridiculous in the ancestor’s advice. I have obtained from
various local artists a fairly large number of figures carved in wood,
ranging from fifteen to twenty-three inches in height, and
representing women belonging to the great group of the Mavia,
Makonde, and Matambwe tribes. The carving is remarkably well
done and renders the female type with great accuracy, especially the
keloid ornamentation, to be described later on. As to the object and
meaning of their works the sculptors either could or (more probably)
would tell me nothing, and I was forced to content myself with the
scanty information vouchsafed by one man, who said that the figures
were merely intended to represent the nembo—the artificial
deformations of pelele, ear-discs, and keloids. The legend recorded
by Pater Adams places these figures in a new light. They must surely
be more than mere dolls; and we may even venture to assume that
they are—though the majority of present-day Makonde are probably
unaware of the fact—representations of the tribal ancestress.
The references in the legend to the descent from Mahuta to the
Rovuma, and to a journey across the highlands into the Mbekuru
valley, undoubtedly indicate the previous history of the tribe, the
travels of the ancestral pair typifying the migrations of their
descendants. The descent to the neighbouring Rovuma valley, with
its extraordinary fertility and great abundance of game, is intelligible
at a glance—but the crossing of the Lukuledi depression, the ascent
to the Rondo Plateau and the descent to the Mbemkuru, also lie
within the bounds of probability, for all these districts have exactly
the same character as the extreme south. Now, however, comes a
point of especial interest for our bacteriological age. The primitive
Makonde did not enjoy their lives in the marshy river-valleys.
Disease raged among them, and many died. It was only after they
had returned to their original home near Mahuta, that the health
conditions of these people improved. We are very apt to think of the
African as a stupid person whose ignorance of nature is only equalled
by his fear of it, and who looks on all mishaps as caused by evil
spirits and malignant natural powers. It is much more correct to
assume in this case that the people very early learnt to distinguish
districts infested with malaria from those where it is absent.
This knowledge is crystallized in the
ancestral warning against settling in the
valleys and near the great waters, the
dwelling-places of disease and death. At the
same time, for security against the hostile
Mavia south of the Rovuma, it was enacted
that every settlement must be not less than a
certain distance from the southern edge of the
plateau. Such in fact is their mode of life at the
present day. It is not such a bad one, and
certainly they are both safer and more
comfortable than the Makua, the recent
intruders from the south, who have made USUAL METHOD OF
good their footing on the western edge of the CLOSING HUT-DOOR
plateau, extending over a fairly wide belt of
country. Neither Makua nor Makonde show in their dwellings
anything of the size and comeliness of the Yao houses in the plain,
especially at Masasi, Chingulungulu and Zuza’s. Jumbe Chauro, a
Makonde hamlet not far from Newala, on the road to Mahuta, is the
most important settlement of the tribe I have yet seen, and has fairly
spacious huts. But how slovenly is their construction compared with
the palatial residences of the elephant-hunters living in the plain.
The roofs are still more untidy than in the general run of huts during
the dry season, the walls show here and there the scanty beginnings
or the lamentable remains of the mud plastering, and the interior is a
veritable dog-kennel; dirt, dust and disorder everywhere. A few huts
only show any attempt at division into rooms, and this consists
merely of very roughly-made bamboo partitions. In one point alone
have I noticed any indication of progress—in the method of fastening
the door. Houses all over the south are secured in a simple but
ingenious manner. The door consists of a set of stout pieces of wood
or bamboo, tied with bark-string to two cross-pieces, and moving in
two grooves round one of the door-posts, so as to open inwards. If
the owner wishes to leave home, he takes two logs as thick as a man’s
upper arm and about a yard long. One of these is placed obliquely
against the middle of the door from the inside, so as to form an angle
of from 60° to 75° with the ground. He then places the second piece
horizontally across the first, pressing it downward with all his might.
It is kept in place by two strong posts planted in the ground a few
inches inside the door. This fastening is absolutely safe, but of course
cannot be applied to both doors at once, otherwise how could the
owner leave or enter his house? I have not yet succeeded in finding
out how the back door is fastened.