Even as we move to some of the most lucrative, buzz-filled and highly anticpated events of the year in the next few weeks…Super Bowl, Daytona 500, Vancouver Olympics, NBA All-Star Game…the struggles for second tier and niche sports continue. This past week, the Los Angeles Sol, arguably WPS’ most successful franchise in year one, folded despite leading the league in attendance. Then a story in Wednesday's New York Times pointed out the financial struggles of one of the world's biggest niche sports…The Iditarod…which has now lost a great deal of its sponsorship and its television contract. While not seemingly linked, both losses show that especially in challenging times, the need to over deliver on brand value is bigger than ever, and the idea that even the most loyal investors will continue to put dollars into an event on an emotional or passionate buy are long gone. The Sol's problems are endemic of any start-up league or brand. Despite a solid product and a significant one year investment, the parent company did not see brand growth in the future and decided to cut its losses without finding a buyer in the marketplace. The troubling thing is that the team is perhaps in the most marketable area, in a soccer-specific stadium and with marketable stars. Like the recent demise of the Houston Comets and Sacramento Monarchs of the WNBA, both franchises that seemingly had all the outer appearances of success, ownership made the bold decision to cut losees and move on. What does this say for the future of WP.? Chalking the loss up to churn would be OK if it wasn’t in the second largest media market in the country. The question will be answered over the course of this summer, when soccer mania heats up with the men's World Cup. Seeing if WPS gets some of the halo effect with brands is going to be very important to see if the league grows, or if it sets, just like it's Sol.
The Iditarod story is another example of niche event. struggling for lifeblood sponsorship dollars in the abscence of other traditional revenue streams…attendence and television especially. The Iditarod built its following on the amazing personalities that raced and won against man and the elements, and the audience that followed their progress in a reality show format before reality shows were the norm. However like all special events, the economy has forced brands to take a hard look at spending vs. return and audience size, and the race became a victim to budget. The race also has another big problem, actually an element that made it appealing for quite a long time…it does not translate well to live television and the cost of production was outweighing demand for taped segments. The race will now go all digital in hopes of engaging its niche fans like the Volvo Ocean Race does…with real time satellite updates as the race progresses. However unlike ocean racing, the lean and mean size of the racers does not bode well for blogging or tweeting during the race, so the personal minute to minute connection to the racers cannot be captured like it can during the expanse of of an ocean traverse. So in many ways, the things that made the Iditarod a success have stopped its commerical growth. Can the rac. find a way to re-engage the casual fan and the brands it can brin.? Maybe there is coming digital technology, or the feel of 3D that can take the viewer back to the ice. Or maybe the race will go back to being limited in audience and return to its cult-like, pre TV status. The struggle to keep the race financially viable and commericially interesting could end up being a bigger test than the race itself.
