Category Archives: sports business

Protecting Your Brand With Common Sense

The Olympic Games are almost upon us. Like most major sporting organizations, the Olympic Committee and the US Olympic Committee protect their commercial marks aggressively. That intellectual property is a huge piece of the value they sell to official sponsors and keeping non-sponsors from doing ambush marketing is a big part of any sports organization’s daily life. It becomes front and center during marquee events. 

Companies find ways around this enforcement, of course. You’ve probably seen dozens of ads about “The Big Game” every January. You know they reference The Super Bowl even though it’s never said, don’t you. It’s a term the NFL tried to protect but was unable to.  The USOC and IOC are just as aggressive about terminology ranging from the obvious (Olympics, Games, Medal, Rio) to the less obvious (Effort, Performance, Challenge).

Today isn’t about whether that’s a good thing or a bad thing. Having spent much of my career selling and protecting commercial sponsorships of sporting events, you can imagine where I come out on ambushing. I do, however, have a bone to pick from the other side of my career, which is digital. I think it’s instructive for all of us.

Social media is social. Sharable. A conversation. More importantly, social media has become how many people learn and stay in touch with what’s going on in the world. Not in the USOC’s eyes, apparently. They sent a letter out last week which reinforces all of the aforementioned commercial restrictions around the upcoming games, especially with respect to athletes who may be sponsored by non-USOC or Olympic sponsors. But the letter went further.

“Commercial entities may not post about the Trials or Games on their corporate social media accounts. This restriction includes the use of USOC’s trademarks in hashtags such as #Rio2016 or #TeamUSA.”

It doesn’t stop there. The same letter sent by the USOC reminds companies (except for those involved in news media) that they can’t reference any Olympic results or share or repost anything from the official Olympic account. I think that’s pretty far over the foul line. Social media by definition is meant to be circulated and almost any sponsor will mention “going viral” as one of their goals. How can you tweet or mention anything about the games without using a tag that’s discoverable? Why wouldn’t you want broader attention drawn to your event if it’s not otherwise a commercial message? Yes, I understand (better than most!) how sponsors try to share the brand equity of the event without authorization, but if all they’re doing is retweeting your own post, how are they sharing brand equity?

Protecting intellectual property is one of the most important things any brand or business can do. There are limits, however, and that protection should hardly ever interfere with common sense and the world of social sharing. You certainly don’t want to be seen as a bully. Do you agree with that?

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Filed under sports business, What's Going On

93 Out Of 100

Every year, the folks at Nielsen put out a review of the previous year in sports media. This year’s report is out, and one statistic jumped out at me. In 2005, 14 of the top 100 programs watched live plus same day were in the sports category. Ten years later, 93 of the top 100 were sports. That’s right: despite all of the fragmentation that’s managed to kill most other forms of programming, nearly all of the most-viewed programs watched live or same day were sports. Is it any wonder that demand for sports inventory is so high when it’s the only form of programming that is both widely viewed and watched in real time?

One would think, therefore, that being a sports programming distributor would put one, as Red Barber used to say, in the catbird seat. Looking, however, at the recent negative reports on ESPN’s financial future in the above context might cause some head-scratching (disclosure – I’m a Disney stockholder as well as a former employee). The issues, I think, are several things. First, sports, like any other form of media, is fragmented. You might never miss a NASCAR race but I couldn’t pay you to watch golf. Sure, you’re a college football fan, but turn on the tube any Saturday afternoon and you can choose from dozens of games airing live. That’s fragmentation, and what’s happened is that the rights fees paid to acquire that programming by the distributors bear little resemblance to the audiences and, therefore, the advertising.

Not a problem, you say. There are affiliate fees. That’s true, and in the case of some sports rights deal, such as the NHL and NBC, the rights fee is paid on the come. After all, if NBC can raise what they get from distributors for NBCSN from 10 cents to a quarter (as an example – those aren’t real numbers), their affiliate fees more than double. Hopefully, the demand for NHL or any other brand of sports programming can make that happen.

All well and good until “skinny bundles” show up. Suddenly, people who never watch sports (yes, there are more of them than you think) have the option of reducing their cable bill by not paying $7 a month or more for sports shows they don’t watch. This is what is causing the negative predictions about ESPN. Smalle income from affiliates based on fewer subscribers to sports channels means smaller rights fees available for the leagues and other rightsholders. Smaller TV deals mean…higher ticket prices? More expensive concessions? Smaller player contracts? Labor strife?

93 out of 100 gets an A in most classes. It’s nice that sports is “bulletproof”. So was Superman, but he, and sports, have their weak spot. It will be interesting to see where this goes, don’t you think?

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Filed under sports business, Thinking Aloud

You Need Scouts

I don’t think there has been a baseball movie made that didn’t feature some weathered old guy seated in the bleachers somewhere.  He usually utters undecipherable baseball jargon while taking copious notes.  This, dear reader, is the baseball scout, who used to be how talent was discovered.  If you’ve seen or read Moneyball, you know that the scout is an endangered species.  This article from USA Today last week talks about how many pro scouts are still unemployed one month before the start of spring training.  The reason?  Data.

Photo by Justin Lafferty 00:19, 7 December 200...

(Photo credit: Wikipedia)

Baseball is in the throes of the Moneyball movement.  Teams have been laying off scouts and turning to sabermetrics, which Wikipedia defines as the empirical analysis of baseball, especially baseball statistics that measure in-game activity.  Baseball has fallen in love with data.  Maybe your business has too.

Here is the problem, both for you and for baseball.  There are certain things that don’t show up in data.  A player’s leadership qualities in the dugout aren’t quantifiable.  Potential can often be visible but not measurable.  That’s true in your office as well.  The data may show you what it happening but it’s hard for it to show you what could be happening.  That requires humans: scouts.

We all need scouts.  We need people who use the data as a tool but who also have the experience and wisdom to know when the data is missing something.  That doesn’t mean projecting one’s wishes into the numbers nor distorting the story those numbers tell.  It is, however, an acknowledgment that there is often a bigger picture than what’s inside the frame.

Here is a quote from a scout:

I’ve got 23 years in the business,’’ Wren said, “and now clubs don’t want that experience? I look at teams now, and they’re hiring guys who aren’t really scouts. They’re sabermetric guys from the office, and they put them in the field like they’re scouts, just to give them a consensus of opinion.

That’s dangerous for a baseball team.  It could be fatal for you.  You’re up!

 

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Filed under Helpful Hints, Huh?, sports business