Sports Marketing: A Strategic Perspective: Sports Marketing: A Strategic Perspective Matthew D. Shank
Professor of Marketing and Chair
Department of Management and Marketing
Northern Kentucky University
Understanding the Sports Industry: Understanding the Sports Industry Sport - Source of diversion or physical activity engaged in for pleasure
Sports as Entertainment - Reebok president Robert Meers, “We’ve recognized for several years that sport is part of entertainment. The market now is really sports, fashion and music. We can’t expect to ignore reality and survive.”
Growth of the Sports Industry : Growth of the Sports Industry 11th largest of all U.S. industry groups
Nation’s output for sports goods and services estimated at $213-350 billion annually
How do we measure growth in the sports industry?
Growth measured in…..
Attendance Figures
Media Coverage
Employment Figures (4.5 million jobs)
International Markets
Growth of Sports Industry: Growth of Sports Industry The sports industry generates estimates of 213 to 350 billion dollars per year in revenues. As ESPN founder Bill Rasmussen points out, “The games are better, and well the athletes are just amazing and it all happens 24 hours a day. America’s sports fans are insatiable.”
Attendance is increasing:
The NFL experienced a record number of fans in the 1999 season (15,710,970)
The NBA 1999-2000 season also produced a small increase (1%) for the NBA
MLB reached 20 million fans faster than any other year in history and attendance increased again (3%)
NHL continues to grow in attendance and popularity. Tracing average attendance over the past few years, regular season numbers have increased from 14, 749 (‘93-’94) to 16,359 (‘99-’00)
NASCAR had 11 million people attend its events in 1999
Sports Sponsorship Spending Exceeds $1 Billion Dollar Mark
New Leagues (AF2, XFL, WPFL, WSA, WNHL)
Growth of Sports Industry: Growth of Sports Industry Media Coverage is Increasing
200 million people watched NBC coverage of the Summer Olympic Games and 3.7 billion people who watched worldwide
ESPN, the original sports-only network launched in 1979, reaches some 76 million homes with its 4900 hours of sports programming and remarkably ESPN2 reaches 65 million viewers.
$2.3 billion to secure the broadcast and cable rights for the Olympic Games in 2004, 2006, and 2008
$2.64 billion paid by NBC and Turner Sports to televise NBA contests, $18 billion paid by the networks for the NFL, $2.5 billion for post season MLB
New sports networks, such as the Golf Channel, SpeedVision, and the Women’s Sports Network
Internet, satellite stations and pay-per-view cable television are growing in popularity
Opportunities in the Sports Industry: Academics: Opportunities in the Sports Industry: Academics Over 200 Academic Programs in Sports Administration
NKU Marketing Track and proposed program
Opportunities in the Sports Industry: Careers: Opportunities in the Sports Industry: Careers Upwards of 4.5 million Sports Related Jobs in Sports Administration
13 career areas in sport. These include: event suppliers, event management and marketing, sports media, sports sponsorship, athlete services, sports commissions, sports lawyers, manufacturers and distribution, facilities and facility suppliers, teams, leagues, college athletics, and finance
Marketing & Public Relations
Professional Sports
Intercollegiate Sports
Youth Sports
Olympic Sports Organizations
Regional and National Sport Commissions
Amateur Sports
Corporate Sports Marketing
Sports Marketing Firms
Licensing Firms
What is Sports Marketing?: What is Sports Marketing? Sports Marketing - The specific application of marketing principles and processes to sports products and to the marketing of non-sports products through association with sport
Simplified Model of the Consumer-Supplier Relationship in the Sports Industry: Simplified Model of the Consumer-Supplier Relationship in the Sports Industry Consumers
Spectators
Participants
Corporations Products
Events
Sporting Goods
Personal Training
Sports Information Producers/Intermediaries
Sports Labor
Sanctioning Bodies
Sponsors
Media
Agents
Equipment Manufacturers
Classification of Sports Spectators : Classification of Sports Spectators Individuals Corporate In-Person Mediated
Classification of Sports Participants: Classification of Sports Participants Unorganized Sports Participants
Organized Sports Participants Amateur
Youth Recreational Instructional
Youth Recreational Elite
Schools
Intercollegiate
Professional
Minor/Secondary
Major
The Sports Product: The Sports Product Sports Product - A good, a service or any combination of the two that is designed to provide benefits to a sports spectator, participant or sponsor.
Types of Sports Products: Types of Sports Products Sporting Events
Athletes
Arenas/Stadia
Sporting Goods
$60.2 billion industry comprised of four segments (equipment, transportation, apparel, and footwear)
Collectibles and Memorabilia
Sports Training
Fitness and Health Services
Sports Camps and Instruction
Sports Information
Newspapers, Internet, Magazines, Radio, etc.
The Sports Marketing Exchange Process: The Sports Marketing Exchange Process Something of Value Something of Value Exchange Players Exchange Players
Overview of the Contingency Framework for Strategic Sports Marketing : Overview of the Contingency Framework for Strategic Sports Marketing Foundation of any sports organization is to design and maintain a sound, yet flexible strategic framework
Strategic framework that is suited to the sports industry is the contingency framework. Why?
Flexible and adaptable to changes in the marketing environment
Contingency Framework for Strategic Sports Marketing : Contingency Framework for Strategic Sports Marketing fit fit
EXTERNAL
CONTINGENCIES
Competition
Legal/Political
Demographics
Technology
Culture
Physical Environment
Economy
INTERNAL
CONTINGENCIES
Organizational Vision
Organizational Mission
Organizational Objectives & Mktg Goals
Org Strategy
Org Culture Planning
1. Understanding Consumers Needs
a. Mktg Research
b. Consumers as Participants
c. Consumers as Spectators
2. Market Selection Decisions
a. Market Segmentation
b. Target Markets
c. Positioning
3. Marketing Mix Decisions
a. Sports Products
b. Pricing
c. Promotion
d. Place
Implementation
Control
THE STRATEGIC MARKETING PROCESS : THE STRATEGIC MARKETING PROCESS
THE PLANNING PHASE
STEP 1.Understanding Consumers Needs
1. Mktg Research
2. Consumers as Participants
3. Consumers as Spectators
STEP 2: MARKET SELECTION DECISIONS 1. Segmentation Alternative
2. Target Markets
3. Positioning
STEP 3: MARKETING MIX
THE IMPLEMENTATION PHASE
THE CONTROL PHASE
Activities Associated with Implementation: Activities Associated with Implementation Organizing
Leadership and Interaction
Resource Acquisition and Allocation
Coordination and Timing of Activities
Information Management
Control Phase: Control Phase Sales Analysis
Profitability Analysis
Customer Satisfaction
Marketing Audit
Environmental Contingencies: Environmental Contingencies Competition
Technology
Culture/Social Trends
Physical Environment
Regulatory/Legal/Political
Demographic Trends
Economy
Internal Contingencies: Internal Contingencies Organizational Vision
Organizational Mission
Organizational Objectives & Mktg Goals
Organizational Strategy
Organizational Culture
Organizational Mission: Organizational Mission Written statement about the organization’s present situation and the direction of the organization. (what business we are in and who we serve)
The Green Bay Packers mission is to be a dominating force in professional football’s competitive arena
On the field, the Packers will continually strive to present their fans with the highest level of performance quality available
In their operating activities and relations with the NFL, the Packers will also continually strive for excellence in the quality of work performed
Overall, the Packers will commit themselves to doing their part in representing the State of Wisconsin with competitiveness, respect and dignity
ORGANIZATIONAL OBJECTIVES vs MARKETING GOALS: ORGANIZATIONAL OBJECTIVES vs MARKETING GOALS Organizational Objectives - Signposts along the road which help an organization focus on its long-range purpose stated in the mission statements.
Typically include both financial and strategic dimensions
Examples of financial include: growth in revenues; growth in profits
Examples of strategic include: enhance corporate image; increase customer satisfaction
SWOT Analysis: SWOT Analysis Internal Strengths and Weaknesses
a. Resource capabilities
b. Marketing Mix Considerations
External Opportunities and Threats
Marketing Research -Systematic process of collecting, analyzing and interpreting data to reduce the risk in decision-making: Marketing Research -Systematic process of collecting, analyzing and interpreting data to reduce the risk in decision-making What kinds of studies would need to be done in sports marketing?
When to use in the context of the marketing plan?
How to conduct a marketing research study?
Marketing Research Process: Marketing Research Process Problem/Opportunity Definition
Choosing a Research Design Type
Choosing a Data Collection Method
Designing a Data Collection Form
Choosing a Sampling Technique & Collecting Data
Data Analysis
Final Report Preparation
Abbreviated Research Proposal: Abbreviated Research Proposal PROBLEM STATEMENT
RESEARCH OBJECTIVES
METHODOLOGY
Sample
Procedures
DATA COLLECTION INSTRUMENT
Designing A Questionnaire: Designing A Questionnaire Specify Information Requirements
Determine Method of Administration
Determine Content of Questions
Determine Form of Response
Determine Exact Wording of Questions
Determine Question Sequence
Pretest and Revise if Necessary
Adult Sport Participant Market General Observations: Adult Sport Participant Market General Observations Majority of American Adults Do Not Participate in Many of the Most Common Sports
Numbers Conflicting; Surgeon General’s Report (only 15% of adults say that they exercise regularly)
Why?
Most Popular Sports : Most Popular Sports
Participant Consumption Behavior: Participant Consumption Behavior Actions performed when searching for, participating in, and evaluating the sports activities that consumers feel will satisfy their needs and desires.
Conceptual Model of Consumer Behavior: Conceptual Model of Consumer Behavior Internal External Personality
Perception
Attitudes
Motivation
Learning Culture
Reference
Groups
Family
Social Class Needs/Desires Decision-Making
Problem Recognition
Information Search
Alternative Evaluation
Participate
Post-participation
Evaluation
Past Experience
Decision Making Process: Decision Making Process Problem Recognition
Information Search
Alternative Evaluation
Participate
Post-Participation Evaluation
Psychological Factors: Psychological Factors Personality
Perception
Attitudes
Motivation
Learning
Why Do We Participate?: Why Do We Participate? Personal Improvement - Better Health, Sense of Accomplishment, Develop Positive Values, etc.
Sport Appreciation - Enjoy the game and competition
Social Facilitation - Spend time with others, feel part of a group
Sociological Factors: Sociological Factors Culture
Reference Groups
Family
Social Class
Understanding Spectators as Consumers: Understanding Spectators as Consumers Examining the differences
Sometimes there is overlap, but usually treated as separate and distinct markets
Heavy Participants - More likely to be male, better educated, more minorities, and younger than spectators
Factors Influencing Attendance: Factors Influencing Attendance Fan Motivation Factors
Game Attractiveness Factors
Economic Factors
Competitive Factors
Demographic Factors
Stadium Factors
Value to the Community
Sports Involvement
Fan Identification
Fan Motivation Factors: Fan Motivation Factors Self-Esteem Enhancement (BIRGing and CORFing behaviors)
Diversion from everyday life
Entertainment Value
Eustress or Positive Stress
Economic Value
Aesthetic Value
Need for Affiliation
Family Ties
Model of Sportscape: Model of Sportscape Stadium Access Facility Aesthetics Scoreboard Quality Seating Comfort Pleasure Desire to Stay Repatronage Layout Accessibility Space Allocation Signage Perceived Crowding Factors Affective Response Behaviors
Understanding Spectators as Consumers What do fans value? : Understanding Spectators as Consumers What do fans value?
Reasonably priced parking ($8) & tickets ($25)
Adequate parking/access
Reasonably priced foods
Home team with a winning record
Close Score
Home team star regarded as top 10 player
Reasonably priced souvenirs
Game that ends in less than three hrs
Wide Variety of Snack Foods
Sport Involvement: Sport Involvement Perceived interest and personal importance of sports to spectators
Two dimensions of sport involvement: Importance of Sport & Affect (feelings)
High involvement consumers attend more games, consume more sports through media such as newspapers, Internet, mags, & more likely to identify sponsors
Fan Identification: Fan Identification Related to sport involvement
Defined as the personal commitment and emotional involvement customers have with a sports organization
Level of fan identification: Low (social); Medium (focused); High (vested)
Why do we want high identification? Higher attendance,decreased price sensitivity, decreased performance-outcome sensitivity
Market Selection Decisions : Market Selection Decisions STP:
Understanding Segmentation, Targeting, and Positioning
Segmentation - Grouping consumers together with common needs Segmentation Bases:: Segmentation - Grouping consumers together with common needs Segmentation Bases: Demographic
Geographic
Psychographic
Benefits
Geodemographic
Behavioral
Targeting - Evaluating the Various Segments and Selecting the one(s) that promise the best ROMI: Targeting - Evaluating the Various Segments and Selecting the one(s) that promise the best ROMI Successful Targets Must Be:
Sizable
Measurable
Reachable
Demonstrate Behavioral Variation
Positioning - Finding a Way to Fix Your Product in the Minds of Consumers: Positioning - Finding a Way to Fix Your Product in the Minds of Consumers Perceptual Mapping
Six Attributes of Sports: Six Attributes of Sports Strength, Speed vs Methodical,Precise Movements
Athletes only as participants vs Athletes + recreational participants
Skill Emphasis on Impact with Object vs Skill Emphasis on Body Movement
Practice Primarily Alone vs Primarily With Others
A Younger Participant in the Sport vs Wide Age Range of Participants
Less Masculine vs More Masculine
Sports Product Concepts : Sports Product Concepts Sports Product - Good, Service or Combination of the two that is designed to provide benefits to a sports spectator, participant or sponsor.
Goods and Services as Sports Products (The Good/Service Continuum): Goods and Services as Sports Products (The Good/Service Continuum) Intangibility -- cannot be seen, felt, tasted
Inseparability -- simultaneous production and consumption
Heterogeneity -- potential for high variability
Perishability -- cannot be inventoried or saved
Classification Of Sports Products: Classification Of Sports Products Product Mix - All the Different Products and Services a Firm Offers
Product Line - Groups of Individual Products that are Closely Related in Some Way
Product Item - Any Specific Version of a Product that can be Designated as a Distinct Offering
Product Characteristics: Product Characteristics Branding Product Design Product Quality Total Product
Branding: Branding Name,design, symbol or any combination
Broad purpose of branding is for a product to distinguish and differentiate itself from all other products
Some Great Sports Names include the Macon Whoopie, Louisiana Ice Gators
Brand Names: Brand Names What’s in a name?
Easy to say, generate positive feelings and associations
Translatable into a successful logo
Consistent with rest of product lines, city, or organization
Legally and ethically permissible
Branding Process: Branding Process Brand Awareness
Brand Image
Brand Equity
Brand Loyalty
Licensing: Licensing Contractual agreement whereby a company may use another company’s branding in exchange for a royalty or fee
Booming business (e.g., NBA has 150 licenses) with 13.65 billion
NFL (3.6) NBA (2.6) Colleges (2.0) MLB (1.9) NHL (1.2)
CAPS (Coalition to Advance the Protection of Sports Logos)
Sports Product Quality : Sports Product Quality Quality of Services
Quality of Goods
Slide58: Nature of Service Quality EXPECTED SERVICE LEVELS PERCEIVED SERVICE LEVELS
Expected Service Levels: Expected Service Levels Service Promises (ads, price)
Word-of-Mouth
Past Experience
Perceived Service Levels Service Quality Dimensions: Perceived Service Levels Service Quality Dimensions Tangibles -- Physical facilities, appearance of personnel, equipment
Reliability -- Ability to perform the service dependably, accurately, consistently
Responsiveness -- Willingness to provide prompt service to customers
Assurance -- Trust, knowledge and courtesy of employees
Empathy -- Caring, individualized attention to customers
Quality of Goods Dimensions: Quality of Goods Dimensions Performance
Features
Conformity to Specifications
Reliability
Durability
Serviceability
Aesthetic Design
Product Design - Aesthetics, Style and Function of the Product RELATIONSHIP AMONG PRODUCT DESIGN, TECHNOLOGY AND PRODUCT QUALITY: Product Design - Aesthetics, Style and Function of the Product RELATIONSHIP AMONG PRODUCT DESIGN, TECHNOLOGY AND PRODUCT QUALITY Technological Environment Product Quality Product Design
New Sports Products From the Perspective of the Organization: New Sports Products From the Perspective of the Organization New-to-the-World Products
New Product Category Entries
Product Line Extensions
Product Improvements
Repositionings
New Sports Products From the Perspective of the Consumer: New Sports Products From the Perspective of the Consumer Discontinuous Innovations
Dynamically Continuous Innovations
Continuous Innovations
New Product Development Process: New Product Development Process Idea generation
Screening
Business analysis/Concept Testing
Development
Test Marketing
Commercialization
New Product Screening Checklist: New Product Screening Checklist General Characteristics of New Product/Service
profit potential
existing and potential competition
size of overall market
level of investment
level of risk
New Product Screening Checklist: New Product Screening Checklist Marketing Characteristics of New Product/Service
fit with marketing capabilities
effect on existing products and services
appeal to current consumer markets
existence of differential advantage
impact on image
Production Characteristics of new Product/Service
fit with production capabilities
ability to produce at competitive prices
availability of labor and material resources
Product Life Cycle: Total Industry Sales Product Life Cycle INTRO GROWTH MATURITY DECLINE
TIME $$ Awareness Differentiate Maintain Eliminate or Extend
Diffusion of Innovations - Rate at which new sports products spread throughout the marketplace: Diffusion of Innovations - Rate at which new sports products spread throughout the marketplace Factors Influencing the Rate of Diffusion:
New Product Characteristics
Perceived Newness of the Innovation
Nature of the Communication Network
Diffusion of Innovations: Diffusion of Innovations Types of Adopters
Innovators
Early Adopters
Early Majority
Late Majority
Laggards
Promotional Concepts: Promotional Concepts COMMUNICATION - Process of establishing a “oneness” between the sender and receiver
PROMOTION MANAGEMENT - Focus of the promotional element of the marketing mix
Promotion Mix Elements: Promotion Mix Elements Sales Promotions
Public or Community Relations
Sponsorship
Personal Selling
Advertising
Communications Process: Communications Process Source Receiver Decoding Medium Encoding Message Feedback Noise
Promotion Planning: Promotion Planning Target Market Considerations
Promotional Objectives
Establishing Promotional Budgets
Choosing an Integrated Promotional Mix
Target Market Considerations: Target Market Considerations Push Strategy
Pull Strategy
Promotional Objectives The Hierarchy of Effects: Promotional Objectives The Hierarchy of Effects Unawareness
Awareness
Knowledge
Liking
Preference
Conviction
Action
Promotional Budgets: Promotional Budgets Arbitrary Allocation
Competitive Parity
Percentage of Sales
Objective and Task Method
Integrating the Promotional Mix: Integrating the Promotional Mix Integrated Marketing Communications - Concept by which a sports organization carefully integrates and coordinates its many promotional mix elements to deliver a unified message about the organization and its products
Building An Advertising Strategy: Building An Advertising Strategy MARKETING STRATEGY AD
OBJECTIVES BUDGETING CREATIVE
DECISIONS MEDIA
STRATEGIES AD EVALUATION
Ad Objectives (awareness, inform, change attitudes, purchase): Ad Objectives (awareness, inform, change attitudes, purchase) INDIRECT OBJECTIVES - ENHANCE CORPORATE IMAGE
DIRECT OBJECTIVES - STIMULATE DEMAND FOR THE SPORTS PRODUCT
Ad Budgeting: Ad Budgeting ALL YOU CAN AFFORD
COMPETITIVE PARITY
PERCENTAGE OF SALES
OBJECTIVE AND TASK
Creative Strategies: Creative Strategies IDENTIFYING THE BENEFITS OF THE SPORTS PRODUCT
DESIGNING THE AD APPEAL
DEVELOPING THE AD EXECUTION
Designing The Ad Appeal: Designing The Ad Appeal Health Appeals
Emotional Appeals
Fear Appeals
Sex Appeals
Pleasure or Fun Appeals
Designing The Ad Execution: Designing The Ad Execution One or Two Sided Messages
Comparative Message
Slice-of-Life or Lifestyle Message
Scientific Message
Testimonials
Media Strategy: Media Strategy SPECIFY THE MEDIA OBJECTIVES (REACH, FREQUENCY, CONTINUITY)
SELECTING THE MEDIA VEHICLES
Personal Selling: The Strategic Selling Process: Personal Selling: The Strategic Selling Process Buying Influences
Red Flags
Response Modes
Win-Results
The Sales Funnel
Ideal Customers
Sales Promotions: Sales Promotions Premiums
Contests and Sweepstakes
Sampling
Point of Purchase Displays
Coupons
Public Relations: Public Relations Publicity (news releases, press conferences)
Participation in Community Events
Producing Written Materials (press guides)
Lobbying
Sponsorship: Sponsorship Investing in a sports entity to support overall organizational objectives and marketing goals.
IEG estimates $6.8 billion spent on sponsorship and of this $4.6 billion will be spent on sports
Not unlike other forms of communication, sponsors must fight the clutter and find the perfect match
The Sponsorship Process: The Sponsorship Process
Sponsorship Objectives: Sponsorship Objectives Direct
Sales Increases
Indirect
Awareness
Competition (ambush mktg- planned effort to associate themselves with an event -- I Love LA)
Reaching Target Markets (Allows us to reach consumer where they live and play)
Relationship Building
Image Building
Sponsorship Budgeting: Sponsorship Budgeting Sample costs of sponsorship
Corporate Box at the United Center $220,000
Title sponsor of Tot Trot $7500
Official Supplier for MLB $10 million
Premier League $15 million
Initial Costs, but there is maintenance and leveraging
Sponsorship Acquisition: Sponsorship Acquisition 1) Determine Scope of the Sponsorship (sports event pyramid with global, international, national, regional and local events)
2) Determine the athletic platform (entity and level of competition)
Sponsorship Implementation and Evaluation: Sponsorship Implementation and Evaluation Number of mentions in popular media
Media Equivalencies
Sales figures (pre and post)
Attitude change (pre and post)
Number of distributors (pre and post)
Distribution Concepts: Distribution Concepts Ability of consumers to gain access to products in a timely and convenient fashion
Moving product from producer to consumer via the various channels of distribution
Sports Distribution Issues: Sports Distribution Issues Sports Retailing
Stadium as “Place”
Sports Media
Sports Retailing Mix: Sports Retailing Mix Products
Pricing
Distribution
Promotion
Retail Image/Store Personality: Retail Image/Store Personality Factors include (in general):
atmospherics
location
employees/sales personnel
clientele
merchandise assortment
promotional activities
Stadium as “Place”: Stadium as “Place” New Sports Venues
Ticket Distribution Issues
Sports Media as Distribution: Sports Media as Distribution Delivering the Sports Product to Consumers Via Media
Rising Cost of Media Rights
Media as a Portion of the Revenue Mix
New Trends in Sports Media
Pricing Concepts: Pricing Concepts Price is a Statement of Value
Value = Perceived Benefits
Price of Sports Product
Essence of pricing is the exchange process - An attempt to quantify the value of what is being exchanged
Internal and External Determinants of Pricing: Internal and External Determinants of Pricing Internal
Product
Promotion
Distribution
Cost
Organizational Objectives External
Consumer Demand
Competition
Legal
Economy
Technology
Slide103: RELATIONSHIP OF PRICE TO SOME OTHER MARKETING MIX ELEMENTS
Related to product life cycle
Communicates something about the product
Promotion geared towards information about price
Product lines with different prices attract different segments of consumers
Estimating Consumer Demand: Estimating Consumer Demand Consumer Tastes
Availability of Substitute Sports Products
Consumer Income
Pricing Strategies: Pricing Strategies Differential Pricing Strategies
New Sports Product Pricing Strategies
Psychological Pricing Strategies
Product Mix Pricing Strategies
Cost-Based Pricing Strategies
Differential Pricing: Differential Pricing Second Market Discounting
New Sports Product Pricing: New Sports Product Pricing Penetration Pricing
Price Skimming
Psychological Pricing: Psychological Pricing Prestige Pricing
Referent Pricing
Odd-Even Pricing
Traditional Pricing
Product-Mix Pricing: Product-Mix Pricing Bundle Pricing
Captive Pricing
Two-Part Pricing
Cost-Based Pricing: Cost-Based Pricing Cost-Plus Pricing
Target Profit Pricing
Break-Even Pricing
Price Adjustments: Price Adjustments Price Reductions and Price Increases
Price Discounts
Implementation Issues : Implementation Issues Communications
Staffing Staffing and Skills
Coordination
Rewards
Information
Creativity
Budgeting
Strategic Control Issues: Strategic Control Issues Planning Assumptions Control
Process Control
Contingency Control
Planning Assumptions Control: Planning Assumptions Control “Are the premises or assumptions used to develop this marketing plan still valid?”
Examine the external environmental factors and the sports industry factors
Process Control: Process Control Monitoring Strategic Thrusts
Milestone Review
Financial Analysis
Contingency Control: Contingency Control “How can we protect our marketing strategy from unexpected events or crises that could affect our ability to pursue the chosen strategic direction?”
Developing a Crisis Plan
Growth of Sports Industry: Growth of Sports Industry The sports industry generates estimates of 213 to 350 billion dollars per year in revenues. As ESPN founder Bill Rasmussen points out, “The games are better, and well the athletes are just amazing and it all happens 24 hours a day. America’s sports fans are insatiable.”
Attendance is increasing:
The NFL experienced a record number of fans in the 1999 season (15,710,970)
The NBA 1999-2000 season also produced a small increase (1%) for the NBA
MLB reached 20 million fans faster than any other year in history and attendance increased again (3%)
NHL continues to grow in attendance and popularity. Tracing average attendance over the past few years, regular season numbers have increased from 14, 749 (‘93-’94) to 16,359 (‘99-’00)
NASCAR had 11 million people attend its events in 1999
Sports Sponsorship Spending Exceeds $1 Billion Dollar Mark
New Leagues (AF2, XFL, WPFL, WSA, WNHL)