This past Friday amongst all the chaos around the tragedy in Connecticut came a story from Bloomberg’s Scott Soshnick that Manchester City could become the founding partner/owner of a new Major League Soccer franchise, the one that will be based in New York City. While those on the fringe may raise some eyebrows as to why this would be a good idea, the plan, if it does to fruition, makes great sense not just for MLS and Man City or whatever club it would be, but for global sports business and the growth of soccer specifically .
Here are some thoughts as to why.
1-Brand soccer continues to be one of the hottest opportunities in North America. There is perhaps no sport that has benefitted more from global media than soccer in the United States. While basketball is rock solid in the States and continues to push outward into emerging countries, soccer’s global success is finally coming to roost in North America. This past summer the friendly tours by some of the biggest clubs in the world drew not just large crowds, but great brand recognition across the continent. Matches didn’t just fill stadia in New York and Los Angeles and Chicago; they drew fans to Kansas City and Dallas, Boston and Columbus. Those seats were not just filled by die-hards of national teams or prominent clubs like Chelsea or AS Roma, they were also filled by elite club teams from Poland and Ireland and Mexico.
With those matches came apparel sales, social media projects and grassroots programs that created a tremendous halo effect for the sport not just for this past summer, but for whatever comes next. Those fans who engaged now are following more regular season matches for the Barclays Premier League or Serie A than ever before, both on television outlets and in digital and social media. The global clubs of soccer have found a home in the States. There is no better example of that home than the current ESPN commercial which features not fans of the Mets or Yankees or Steelers or Cowboys but one each from Man U and Man City talking about their loyalty and devotion. The most amazing thing is that never does the spot mention who they are rooting for. You know its soccer, but it’s assumed you know the clubs and there is no way that spot could have ever worked in an environment where global soccer is not now mainstream.
2- MLS has welcomed and embraced the growth. While some may say that the global clubs presence has put Major League Soccer on the backburner, the opposite is probably truer. A rising tide of soccer lifts the MLS ship as well, ad by working with elite cubs when they come to the States, MLS gets a benefit. Clubs find casual fans coming to their stadia and seeing the work they have done to create a fun and innovative fan environment, and MLS provides a quality and affordable way for those fans of global soccer to take in a match when their favorite club is playing elsewhere in the world. Those running MLS and USA Soccer have done a tremendous job in also building “brand soccer” from the grassroots which now has created a core group who not only play but engage in following all forms of the professional game. As the quality of MLS continue to improve, those with a love for the most elite clubs will also assimilate more to professional soccer here as well. By welcoming the global push into the States, MLS has found willing and interested partners who see the growing market and now can work proactively to get new pieces of a pie that wasn’t anywhere near baked five years ago.
3- More and more global brands are looking to engage the US consumer, and the combination of soccer and sport is the perfect entrée. The US marketplace is not the easiest to crack for brands looking to engage, but sports are still the most intriguing entry port. Emirates Airways, through its tennis and horse racing sponsorships, has done a great job of finding ways to reach the right consumer, and soccer as it becomes more and more mainstream, is a natural next step. Does Etihad, Abu Dhabi’s national airline which sponsors Man City, want to start a US marketing push? If so, how about through the auspices of American sport, and if that’s true why not ride the wave through a club building ties in the US. That back and forth has also not been lost on many American brands which are using elite soccer clubs to bring their message outside the States as well. The ability to bring that brand message direct to American consumers through sport has never been bigger.
4- With the millions invested, elite clubs realize they have to engage a wider audience than ever existed before. Even with the mania that exists around soccer across Europe, there is a revenue ceiling that will be hit, so elite clubs know that the time is now to find ways to engage and grow their brands globally. The tours this summer really drove home the engagement ability in the marketplace, with Chelsea for example running a massive digital campaign aimed at consumers in the States. It identified and rewarded fans of the club for their loyalty…a loyalty not based on trips to the UK but on how much their fandom resonated in the States. In order to keep those pockets growing, friendlies will not be enough. There needs to be a way to touch fans continuously in market to supplement what they can do in the digital space, so finding a way to do that with an actual club not just in the US, but in places like Asia is a way to remove the ceiling and enhance the brand growth.
5- If the idea of cross-Atlantic play will someday be possible, it is good to invest now. This concept has been talked about for years…will an NBA franchise land in Europe, can the Jacksonville jaguars investment in London pay off with a permanent home, could rugby or cricket find places to have global franchises in the States, could hockey through system work the KHL and the NHL together for the regular season etc. etc. Thus far it has been lots of talk but no real logistical solution. The sport that would make the most sense to do such a global investment in play would be soccer though. Why? Matches are spread out enough that travel back and forth would not be as big an issue as it would be for hockey or hoops, who have a more rigorous schedule and need multiple games and opponents in market. The NFL does play once a week, but American football still does not have the playing footprint elsewhere that soccer has. So could the Barclays Premier League drop two franchises in the States somewhere down the line? Not yet, as the market still has to flesh itself out, and there are many, many issues with work rules and taxes and ownership that would have to be worked through. However as a trial balloon, a club-owned MLS franchise playing in MLS makes for an interesting test.
Now let’s be clear that this is not all rosy. There are some big financial and brand hurdles that need to be clear before the idea comes to fruition. The cost of both a stadium and running a franchise in New York is very, very high. There is a risk of brand damage because the franchise will not be Man City itself, it will be an MLS club under the Man City (or whomever else it is) brand. So diehard fans of the club and its level of play could be turned off. The marketplace is also very crowded and the homesteading Red Bulls have done well, but not great in bringing MLS success (many feel that MLS has succeeded in spite of the New York franchise). All those could be stumbling blocks to making the idea a reality.
What is real is that soccer is growing and that the current immigrant into the US loves the game. The interest in brands looking to engage this audience is very high and elite clubs see the opportunity with a savvy and engaged fan of the sport who wants more. MLS has been very smart in leveraging the sport for growth, and with a World Cup again on the horizon and brand marketers at clubs willing to make a leap, the timing may be right for all concerned. Who that party will be remains to be seen, but the opportunity of linking soccer 24/7 from sea to sea seems to be closer than ever, and if so, what a grand opportunity it will be.
