Category Archives: sports business

All FIFA-ed Up

One of my favorite movies is Casablanca. It came to mind last week as the FIFA scandal unfolded. Soccer fan or not, you’re probably aware of the indictments issued (with more to come) against high-ranking administrators and marketing executives. If you’re not the details are here.

Casablanca? Yes:

That was, in essence, the response by Sepp Blatter, the head of FIFA, who claims to have had no clue such corruption was going on.  I’ll wait while you stop laughing, but this really is no laughing matter.  We are watching a major sports organization implode and there are billions of dollars involved.  It is a classic PR crisis, and one thing you can’t do in this situation is to go dark and allow others to dictate the conversation.  That is, however, exactly what the brain trust at FIFA is doing:

A quick look into Socialbakers Analytics tells us that that’s not what was going through the minds of FIFA’s PR team: out of the almost 8000 questions posed to them on Twitter in just under last month, they’ve responded to zero.

That’s from the Social Bakers blog.  Into that vacuum you have one of the indicted executives citing a piece in The Onion as supporting his innocence and several of FIFA’s corporate sponsors have expressed dismay while threatening to pull their financial support.  After all, brands sponsor sports in part so they can transfer the goodwill that fans feel for the sport to the brand’s equity.  When that goodwill vanishes, the brand is damaged as well.

What should they be doing?  I’m not a PR expert but I know silence is not an option.  The few messages they’ve put out there have been met with ridicule and the reelection of the man at the head of the organization, who claims he can clean it up, is widely seen as a negative.

“You can’t just ask everybody to behave ethically just like that in the world in which we live,” Blatter said in his opening remarks to the FIFA congress. “We cannot constantly supervise everybody that is in football,” he added. “That is impossible.”

Really?  Most big companies with which I’ve worked do exactly that, and the stench of corruption has been around the beautiful game for as long as I’ve worked in sports.  Staying silent in a crisis is bad.  Making statements that deny culpability (FIFA is trying to argue that all the problems are with other soccer organizations, not FIFA) is worse.  As with Louis in Casablanca, what’s been going on is very obvious and as the old line goes, I’m choosing to believe my lying eyes over FIFA.  You?

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Filed under Huh?, sports business

Cheerleaders

It’s getting to be the weekend again which means that many of you will be watching sports.

Cheerleader of the Aachen Steelers team at the...

(Photo credit: Wikipedia)

Maybe it’s your local baseball team, maybe it’s one of your kids, or maybe it’s one of the many hours of televised sports that will be available.  The reason sports rights fees continue to rise so dramatically despite the continued fragmentation of audiences is because the market sees sports as one of the few pieces of content that really must be watched as it happens.  They’re sort of DVR-proof.

That’s part of the secret but the real truth is that sports make people care.  There is an emotional connection with the team or with a player.  If you ever played a sport I suspect there is a part of you that feels the excitement of competition again as well.  Fans are cheerleaders and maybe even more.  Some researchers have found that fans experience hormonal surges and other physiological changes while watching games.  The emotional connection is strong because, to a certain extent, whomever you root for represents you.  When they win, you do too.

That got me thinking.  How do we bring that deep connection outside of sports? How do we get them to see themselves not so much as buying products but rather belonging to a larger movement?  Apple certainly has done that.  Some mom and pop local businesses manage to do that as well.  The get their customers to root for them as they would a sports team.  Those teams are a central component to their daily lives.  How can we make our brands play that kind of role?

It certainly isn’t by selling.  When your team takes the field, they sweat and get hurt for you to win.  Are we making consumers feel that we’d do the same thing for them, or are we constantly asking them to do something for us?  How can we turn customers into cheerleaders? Something to think about.

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Filed under sports business, Thinking Aloud

Know The Fan

The folks at Sporting News Media released their annual survey into US sports media consumption, the US Know the Fan Report.  I’m embedding an infographic below with the results but a few points bear mentioning.

First, it’s now safe to assume that a viewer of sports on TV is using a second screen.  The study found that nearly half of sports fans claim to use an Internet connected device at the same time as watching . This use helps fans to catch up on what’s happening with other games being played via live text commentary and live scores, as well as to access non-sports related content, communicate with friends about the sports event on TV, watch clips and highlights of other games being played and post comments to social networking platforms about the game/event they’re watching.

I find it interesting that while 96% of fans report watching sports on TV, only a third self-identify as having paid for it.  In my mind, paying the $6+ a month for ESPN qualifies as paying.  3% use a pay-per-view service — down from 9% from 2012.  Facebook, YouTube and Twitter remain the most popular networks overall for fans to follow sports but fans are using them less as compared to last year to make use of newer social networking platforms such as Google+, Instagram, Pinterest and Vine.

Live streaming remains the most popular content accessed (38%), followed by videos of game/event highlights (31%) and videos of sports news (27%). More than half of fans that watch videos of game/event highlights online (51%) and videos of player/manager/coach interviews (56%), do so via mobile device.

My takeaway is that this sort of disruption is occurring everywhere and sports viewing is an excellent lab in which to look forward since sports is an important part in nearly every consumer’s life.  How are you preparing for it to hit your business?

US Overview

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Filed under digital media, sports business