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Spectacle Du Jour…The Red Bull Air Race

Joe Favorito — Tue, 22 Jun 2010 19:10:18 +0000

The stunts and events that take our breath away always draw lots of buzz and interest when they come to town…tractor pulls, NASCAR, you name it. They have the daredevil quality that surpasses generations, and can draw large crowds for events. The latest was in New York this past week, the worldwide Red Bull air race. The event featured New York as a panoramic backdrop, lots of thrills and chills over New York Harbor, got great press and buzz for the always viral Red Bull brand, and out itself up as “the sport of the future.” Ticket prices were at a premium as people gazed skyward onSsaturday and Sunday as the daredevil pilots rocked and rolled all over the eater and between the logoed pilons at speeds of over 200 miles an hour. Like another “race of the future,” the now defunct Rocket Racing League, the Red Bull Air Race series seems to have it all. Thrills, chills and a great atmosphere.

What is may not have is a sustainable long term business model. Some reasons.

1- It has no limits as to really who can watch and who can’t. There is no contained course, the beautiful backdrop limits no one from watching. While this may be viewed as an asthetic plus, it is a revenue issue, and probably a big one.

2- It moves fast, maybe too fast. yes you can sell plane sponsorship, but who can really see the logos other than hearing the names of the leaders. The pilons are a good selling point, probably more than the planes.

3- It’s a global tour, which means the brand affinity developed for the pilots is limited in markets. The race folks did a great job with step one, branding the race. However what makes circuits a success are the personalities. Hard to get to know athletes at any level who are rarely in market with no affinity to a local audience. That affinity to driver and brand is what helped built NASCAR. For the race to go from spectacle to sport that connection to find out more about the flyers needs to happen.

4- Tough for TV. The good news is these races lend themselves to digital coverage for fans with microcameras and great angles at high speeds. The bad news is that the money remains in mainstream TV and until the audience is there air racing, like most other sports, will remain a costly time buy.

5- Expensive time to launch (no pun intended). Many established leagues and events have come and gone in the challenging global economy. Launching a high cost “sport” in this ear takes very deep pockets and loits and lots of time to gain a foothold. On race weekend the excitement is there. Once the event is gone it is out of mind and people are off to the next event. It will bring more brand affinity to Red Bull as title sponsor and can have a halo effect, but as time fades so will interest until it comes around next year again. Without sustained year-round buzz the cycle needs to begin anew every year and that’s tough to do. The same goes with regular media coverage. yes there is a circuit and a world championship, but it is not covered as such yet by mainstream media. Instead of getting the weekly following you get the coverage of a spectacle market by market.

That may work for one off sponsors or a title like Red Bull, but it is very tough to bring in consistent sponsors with such a one-off model.

So what does this mean for Air Racing? Well it means if the dollars are there there is enough buzz to sustain. It is fast, fun and interesting as a spectacle more than a “sport.” It has inspirational athletes and events but not really aspirational for most spectators. People do drive cars so one can understand the basics of car racing. Most do not fly. It is very expensive to produce, which is usually the death knell of many startups. But it does have the deep pockets of Red Bull, which most start ups do not have. It has the ability to draw large crowds for brand sampling and activation, but it is hindered by a lack of real paid attendance. Can it grow, use technology, clean emissions and a crash here and there to sustain interest. Sure. Will that interest be enough to keep a sustainable business model thriving? Tough to say.

The events had buzz and fun and great branding for some partners. Like every part of the industry we hope it succeeds at a high level, as that success brings dollars, interest and buzz to the industry at a time when it is needed most. Hope to see more next year, buzz both in sponsorship and in general interest.

MLS Cup Sets Template For Future Soccer Success…

Joe Favorito — Tue, 24 Nov 2009 02:33:05 +0000

One of the most significant games in the history of professional soccer took place in the Pacific Northwest in the late summer of 1977, when the New York Cosmos, led by the legendary Pele, won their first North America Soccer league title by defeating the original Seattle Sounders 2-1 in Portland Oregon. This past weekend, perhaps the most important game since then in the evolution of professional soccer in the United States again took place in the Pacific Northwest, where a crowd of over 40,000 saw Real Salt Lake defeat the Los Angeles Galaxy 2-1 on penalty kicks to take the 2009 Major League Soccer title?

Is this championship more significant than say, last year’s win by the Columbus Crew in Los Angeles? Yes. First, the Sounders have become the model for expansion or relocation franchises anywhere, in any sport, in North America in the last ten years. The league and the team carefully chose owners, built grassroots support, established marketing partnerships, hired seasoned executives who knew the marketplace, and then continued to support all the efforts with smart ticketing programs, fan development, youth development and partnership programs. The result was a market that liked soccer but loved the brand at a time when their longstanding NBA team had left that market for Oklahoma City. Taking that local fervor, and then adding the support and pageantry of a championship game, albeit a neutral site game, with two franchises located west of the Rockies, one of which from a major market and featuring David Beckham, dropped another level of interest in. Then take all the community work that MLS’ brand support team added in, and factor in a market looking to expose itself to the world for a potential World Cup host, and you have an almost perfect mix of brand activation, star and celebrity pull (Sounders part owner Drew Carey did his work to build excitement and cache), game excitement, educated and passionate fans and a great venue. All makes for a great cap on another year of growth for professional soccer in North America by a league that has managed expectations over time and built a steady flow of success to maximize the opportunities that exist.

Now does a Sunday night against the NFL with no discernible ties to the east coast slow down the progress or put a damper on post-game success stories? Maybe a bit. Does that fact that one of last year’s finalists, the New York Red Bulls, had a disastrous season hurt media coverage back east? Yes. However the game and the area set up a great template for excitement in new expansion markets Philadelphia and Vancouver for the next few years and could probably also serve as a best practice for ANY sport looking to build a groundswell of excitement in a new market going forward. The NASL championship game was one of the high water marks for that league, which went the way of bad planning and ridiculous spending and met a tough demise only a few years later. MLS has learned from that lesson for sure, with smart business practices, growing grassroots support and partners who are being shown solid ROI. This championship in the Pacific Northwest will also be memorable, not for a one off success, but probably for a standard of success in branding that will be followed through on and grown in subsequent championship events for years to come.

Some other good reads…Yahoo sports’ Martin Rogers had a good profile of the LA Galaxy’s Landon Donovan in what could have been his final MLS match…si.com’s Grant Wahl has a good q and a with MLS Commissioner Don Garber…and the New York Times had a good look at ATP President Adam Helfant.

Garden Growing New Partners, Ideas Again…

Joe Favorito — Tue, 27 Oct 2009 01:38:06 +0000

It has been tough times in recent years for patrons of “The World’s Most Famous Arena.” The lack of on court success, a slowing economy, an aging building and a weak public perception had caused a good deal of the shine to come off of Madison Square Garden and perhaps lower the perceived standard of excellence the building and the organizations housed in the building had long held. However, steadily it appears that perception, consumer confidence and new and innovative promotional partnerships may be returning the business of MSG back to where it had resided for so long, in the upper echelon of sports and entertainment marketing and branding in the world. The announcement of a long rumored renovation, the ever improving on-ice play of the New York Rangers, an enhanced outreach through digital media and an ever-growing unified community presence for all the Garden brands have led the uptick in interest and buzz as the NBA season approaches this week. On the business side, a just-announced landmark airline deal with Delta Airlines, complete with Garden icons Mark Messier and Willis Reed filling the captains outfits, new entertainment sponsorship plans, and brand extensions to other Garden-related properties are all contributing to an uptick in interest, new best practices for partners and a more entreprenurial overall atmosphere than has been seen in some time above Penn Station. Now can all go sour with bad teams on the court and on the ice? It certainly won’t be a positive. However what is being seen is the aggressive ability to effectively tell good business and branding stories to all constituents, much like the cross river rival Nets have been doing so well, and that sort of business buzz can help insulate partners if the athletic performance falters. Even with problems on the athletic side, all the moves are smart and solid and send great messages to partners that the Garden is more than willing and ready to solidify and create new business than ever before.

Some other good reads…si.com’s Ian Thomson has a quick look at what lies ahead for the NBA…good summary of thigns to watch out for…Yahoo.coms’ Mark Spears has a great profile of former NBA phenom Isiah Rider…and ESPN.com’s Jason Sobel has a good look at the caution that needs to be applied to whomever golf’s next potential stars good be.

Fantasy Is The Reality Of Good Brand Activation…

Joe Favorito — Thu, 03 Sep 2009 00:56:11 +0000

The question often asked with social media these days is a simple one…how does it make money? With all the work being done to give fans more insight and access to athletes and properties, very few if any can prove that the efforts on their own can translate into hard sponsorship dollars. Increased visibility? Yes. Buzz factor? Absolutely. ROI for the spend. Still very questionable, especially for big brands and mainstream properties. It is good to see the NFL setting their social media policy this week, and it remains frustrating that colleges and other properties still fail to see social media as part of a bigger picture media strategy in many cases…just like sports radio was in its infancy…but the answer to how it all justifies time spent and dollars allocated remains a mystery that is slow to unravel.

However with all the elements of digital sports brand activation available, one…the one that has actually been in play the longest, is showing ways to effectively build market share, engage consumers and shows brands ways to monetize and activate in the digital space. The element is the fantasy sports space, a business with a huge global upside that is growing even in a down economy.

Case in point was highlighted in September’s Entrepreneur Magazine, which took a look at the industry and focused on Fantasy Sports Ventures’ Chris Russo and RotoHog’s Kelly Perdew, and how they have been able to build viable, thriving businesses…one aggregating independent sites for fans and brands and one building fantasy games and applications for properties…in the darkest of economic times. FSV also announced new partnerships with brands like Coors, Head and Shoulders and Sprint (in this week’s Sports Business Journal), while other properties like SB Nation have created partnerships to show brands the best way to activate effectively to a core group of young male consumers. The ability to create promotions, streaming video, widgets, phone applications, as well as up to the minute advice for experts in the multi-million dollar fantasy sports space creates a primer for how to succeed in a business that caters to a digital platform. It is quantifiable…Neilsen and ComScore are developing detailed ratings systems…it is affordable in comparison to mass media (although still not as effective in reaching a broad audience like conventional TV or event radio)…it reaches a passionate core of fans that also includes many casual players and a growing number of women…and it is adaptable for brands to change out messaging over time. Yes fantasy right now still has its main success with baseball and even more so with football, and it is still male dominant and primarily a North American phenomenon. However with fantasy golf, NASCAR, soccer and now cricket being played more and more, even outside the United States, and 2010 being both an Olympic and World Cup year, the ability for fantasy to use the digital space effectively and expand the reach of the brands invested in the space, as well as the reach of the companies who have built large and successful aggregate numbers of users, has a big upside.

Is fantasy a precursor to other forms of social and interactive media that are struggling to figure out ways to monetize, especially in sports and entertainment? Maybe. However more likely is that those other platforms…twitter, facebook etc…will find ways to use the lure of fantasy sports as a partner to effectively grow their audience and bring brand dollars to them as well.

As a case for digital success in sports, fantasy is reality now.

Some other good reads…the Kansas City Star had Joe Posnanski’s final column this week before he moves fulltime to SI, and it was a good one on Royals career minor leaguer Chris “Disco” Hayes.…the Washington Post had an extensive piece on the issues the Redskins have had with the secondary ticket marketplace…and CNBC’s Darren Rovell had his latest Twitter rankings…

Marveling At A New Opportunity For ESPN…

Joe Favorito — Tue, 01 Sep 2009 01:01:50 +0000

It was only a few years ago that Marvel Entertainment caused an uproar amongst baseball traditionalists by trying to put spider webs on the bases at MLB games as part of their promotion for the first “Spiderman” movie. The backlash caused MLB and Marvel to scale down the promotion and saved the “sanctity of white bases” for the time. Flash forward to today’s more challenged times, where outfield signage and in game promotions dominate as a way to gain more ROI for partners, and MLB is now one of the leaders in finding ways to integrate unique content and promotions into their games and production, albeit still not on the bases.

So what does Monday’s announcement of Disney purchasing Marvel, once a company near bankruptcy but now one worth in excess of $4 billion, mean to the sports world? Well it could make for some interesting promotions and opportunities, given Disney’s position with ESPN and other sports-related properties. One reason given for the purchase was Disney’s desire to create character platforms and marketing opportunities both for boys and the overall male audience to mirror the platforms they have with current Disney characters for girls and women. The success Disney had with Pixar, especially the NASCAR-themed Cars platform, gives Disney/Marvel a great entrée into what could be done with a sports platform. After all, to project athletes as real life super heroes, and now have the ability to easily pair them in various forms of media with superheros that Disney will now own, is a great step forward. Yes Marvel and DC have done one-off promotions in sports before. But there are limits to what one can do when the images and likeness of the characters are not being marketed by a multi-platform broadcaster and media partner like Disney/ESPN. Now Disney has both real-life and fictional superheroes in their stable to work together with…a platform to attract and enhance casual viewership and promotions that didn’t really exist in one place before. Will we see Spidey swinging into the ESPN broadcast sometime soon? Maybe but not probably. Could you see promotions featuring all the Disney/Marvel characters with their league broadcast partners and the athletes in those leagues? Sure can. Although it probably wasn’t the focus of the merger, the possibilities for full integration of some of the greatest fictional characters into sports and fitness programs, through the platforms of ESPN, can be a very effective offshoot of Monday’s announcement, and one that can be a huge revenue driver in brand partnerships, licensing and enhancement of league, team and athlete relations for years to come.

Some other good reads…Eric Fisher in the Sports Business Journal had a good piece on Fantasy Sports ventures expansion into even more digital integration with brands…Jack Bell in the New York Times has a look at the Red Bulls latest makeover and what the future holds…and Rich Deitsch has his August Power Rankings on si.com...

How To Deliver The Message…

Joe Favorito — Fri, 14 Aug 2009 19:02:13 +0000

Two week’s ago Sports Illustrated’s George Dohrmann had a great piece on the amount of useless recruiting mail top hoops recruit Roberto Nelson received during his high school days, and it brought to light one of the biggest problems that marketers, salespeople, and communications folks deal with every day. How to cut through the junk, decide whats the most effective way to deliver a message and who is the best person to deliver it to. In the easy world today of spamming emails and press releases or sales pitches, or in this case, volumes of recruiting mail, the personal touch is lost, and with it goes the relevance. Many times people get caught up in trying to do things because “thats the way its always been done” instead of trying to be more innovative and effective with a personal touch. The digital world today has made it easy to hit send and hope to deliver a message, many times without knowing if the recipient ever reads, is interested or even knows the sender, or even worse, if the info is relevant to the recipient at all. In the “old days” editors and reporters would get deluged with faxes of press releases or volume of mail, but today’s world makes the deluge even bigger because there is no real cost to blast or spamming email. The cost lies in reputation of the sender. Many times the inexperienced will not personalize letters or note, send to people no longer employed in a position or with a company or outlet or even worse, pretend to know someone when they really don’t. So what’s the answer? Simple. Personal touch matters. Take the time to know who is on the beat, covering the story, selling or marketing the product or making the decisions. Are there points for mass distribution? Of course. Are there times when you send info to try and remain relevant or top of mind? Yes so long as the info is useful. Is snail mail…a personalized hand written, note or item sometimes still the most cost-effective way to set yourself, your brand or your sales pitch apart? You betcha. The worst thing you can waste is your reputation for doing well and knowing your business and someone’s precious time. Even asking periodically if someone wants to stay on a list, or if information that is being sent is appreciated or useful, is also a good idea. In these days of not just cost efficiency, but time efficiency, personal contact goes a long way in delivering the right message, and quality usually wins over quantity.

Some good Friday reads…si.com also had a good piece on what’s next for baseball now that the Olympics are a memory... the NCAA News had an interesting piece on where small conferences are looking to find their new commissioners…and the Wall Street Journal had a good piece on Dave Bing’s challenges as Detroit mayor.

Yankees Take A Leadership Position With Hope Week…

Joe Favorito — Mon, 20 Jul 2009 18:53:31 +0000

Sometimes being the premier brand in a city, let alone a country, can lead to complacency. Even in a down economy, the demand as a destination and a brand to be associated with still conveys great opportunity with little effort. On another side, the relevance of brand can also lead to a guarded stance with regard to creating partner opportunities…one which does not allow the brand to do the “extras” for attention or brand growth that others need to be successful. Also, being a brand in demand can put those involved on such a high pedestal that the downside of not being all inclusive in projects, leaving out a partner or not being able to assist all involved, can bring more negative than the positive of assisting most. So with all that in mind, the Yankees deserved some credit for creating their first-ever HOPE Week. All week the team and staff will be in the city doing community service events, all tied in with various goodwill around the city. Now some may say that this is what a premier brand is supposed to do to give back to the community, and it is true that teams do community events year-round. However for the Yankees to make a concerted effort to use the power of their brand, especially without a corporate push, to touch so many charities within one week, a great followup to all the work MLB did in St. Louis around the All-Star break, is a great move. The positioning of the events, between Sunday’s Old Timers Day and this coming weekend’s Hall of Fame induction, and during a time of year when media are looking for events (no NBA, NFL, NHL or college, and minimal NASCAR and just off the British Open) also makes great sense. A solid, well positioned week-long event for a team and its players which sometimes do not get their due for all they can do off the field.

Some other good reads…the NY Times’ George Vecsey has a good look back at the anniversary of the 1964 Army football team which upset Navy…the LA Times’ Kurt Streeter had a solid piece Sunday on the need for women’s baseball programs… and the Saints’ Sean Payton does a must read fill-in job taking the place of the vacationing Peter King on si.com…

Why Being A Fan Helps The President…

Joe Favorito — Fri, 17 Jul 2009 01:09:53 +0000

There are many cynics that may say President Obama can spend his time, and the countries’ dollars…doing better things than glad handing the MLS champion Columbus Crew at the White House before heading off to throw the first pitch and hang out in the FOX booth at the All-Star game. However, the man who the Washington Times called this week the “Sports Fan Chief” , was astute enough with his team to recognize early on in his run to the White House that sports is a common bond for those on the fence about anything political, and gave him, more than any other candidate, another link to a demo that may or may not have voted or listened to him at all. Starting with his one on one with Scott Price of SI, his pickup games, his throwing out of the first pitch at a White Sox game, his NCAA tournament brackets, played a little golf and pickup games with the North Carolina hoops team, the President took the time to show that human side of him through sports, and it resonated with the casual fan who in tough times may give his administration pause and a bit of a second chance that they may not have if they had no connection to him at all. The ceremonial aspects of the Presidency, whether it is meeting a championship team or saluting the Girl Scouts, are part of the job and rarely if ever detract from the duties that need to be performed. If those ties for President Obama to sport are more public, especially in a time where America is looking for heroes and is working to get the 2016 Olympics, then so be it. There is a need for heroes and good messaging through sport to address needs like childhood obesity, girls participation in an active lifestyle, and even the growth of brands attaching to sports and entertainment, and if the President can use the cause celebre’ through sport to raise the profile of those issues, it makes great sense. Sport is also a great tie to diplomacy and as a way to connect back to those in the military who are defending the nation, and in these times of transition for the nation on a global scale those ties no matter how subtle can also be beneficial to the overall health of the country. Yes sports is a multibillion dollar industry. No it is not insurance or health care or education, but it does touch all, and if sport provides a bridge to the everyday business of the country as well as feel good opportunities for the people, it makes great business sense to be involved.

Some other good reads…the Detroit News had an in-depth look at where sponsorships stand today for most big ticket sports events.…si.com had a q and a with new Big East Comish John Marinatto…and The Oregonian had a good q and a with Oregon AD Mike Belotti.

The Need For Spectacle To Draw Attention…CFL and UFL…

Joe Favorito — Mon, 06 Jul 2009 00:44:05 +0000

As we inch closer to NFL Training Camp, two interesting notes popped up again in the football world over the weekend, both showing what it will take for the casual fan to take notice of football outside of college or the NFL. The first was up north in the CFL, which incidentally has done a good job of rebranding itself and working with, not against the NFL in many ways. This past week, Toronto receiver Arland Bruce took the Ocho Cinco route by doing a “touchdown tribute” to Michael Jackson, complete with acting dead after a score. The move earned him not just the wrath of the league and probably his teammates, but got Bruce some great exposure on newsshows, blogs and YouTube during a week where football was nowhere near top of mind, and could draw those casual fans to watch some CFL over the next few weeks to see what antics are next for the “perfomance artist” turned wide receiver. The second move was the UFL saying again that if Michael Vick is available and free of legal trouble they would take him for their Orlando franchise. Again the piece drew the eyeballs of the media and the casual fan to the soon to be starting league at a time when people are still not thinking football, and got the league more exposure as they move toward their next steps. Any downside to entertaining Vick? For the UFL none at all. It will bring spectacle both positive and negative should it happen, and will give their efforts more relevancy for TV and fans than they would have without him. Placed in a slow media week it was a very good move, whether or not it pans out. While one was planned (UFL) and one was not (CFL) both drew attention through spectacle and got both leagues added attention that they need for casual interest. Will be interesting to see next moves on both.

Some other good reads…great piece on the Sunday New York Times on revisiting Disco Demolition Night…the LA Times Bill Dwyre had a good piece on Billie Jean King and her continued efforts with World Team Tennis…si.com’s John Lopez had a good look back on the life of the late Steve McNair…and Yahoo’s Adrian Wojnarowski has a good look into the brand value and craziness Ron Artest could bring to the Lakers…

Fragmentation In Niche Sports Proves To Be A Killer…

Joe Favorito — Fri, 03 Jul 2009 15:58:46 +0000

Speaking with one voice, whether it is to a business partner, the media, or to fans is always important, especially in the alphabet soup of niche or second tier sports. With the limited dollars and eyeballs available for the casual fan, splitting the marketplace with alphabet soup of organizations usually leads to confusion and can ultimately drive partners on to a platform which is much more simple to understand. The latest example of split markets being a killer is in indoor soccer, which despite the huge success the outdoor game is seeing in the US, just fell further off the roadmap this week. Last year the Indoor game split into two “leagues,” both of which struggled for any kind of existence in far-off marketplaces, and despite the local success of teams like the Milwaukee Wave and the New Jersey Ironmen (who were in two different leagues by the way) the sport is on the verge of extinction. Another sport teetering but doing better with some unity is lacrosse, where the National Lacrosse League extended commissioner George Daniel this week, sending a positive message to all involved. Still, lacrosse, indoor and outdoor, needs to be presented as one platform to be an effective tool, but at least in their case the sport has a platform of success to build on. Indoor soccer has hurt itself with divergent forces for the indoor game, forces which told the sports world they were too fragmented to present a unified front, and in the end, all suffered. Would having one unified league have worked? Perhaps. But with the alphabet soup presented last winter to fans, media partners and business partners there was no chance of survival in an already tight marketplace. Hopefully the indoor game can be resurrected and lifted by the continued success of the outdoor product, but with too many cooks it will be next to impossible to deliver.

Some other good reads…with all the positive baseball news leading into the All-Star game, the Boston Globe had a good look at the Red Sox helping push ALS awareness with events this week…SI’s Richard Deitsch has his look at June’s Media Power Rankings… and the Washington Post’s Tom Boswell has a good look at the potential clash of eras between golf’s Tiger Woods and Anthony Kim.