A while ago an MSG executive named Bill Jemas wanted to test a theory he had. If you priced the second row at a Knicks game more than the first, what would people buy first? The answer when it was tested was clear…people gravitated to the highest price with the idea that the best cost the most. Prestige, star power, being seen, spending whatever it takes, at least in New York was so key to driving not just buzz but value that can’t be had anywhere else.
Now the idea was a test, and it was not used after that, and today the most expensive seats to sit that close to the stars remain on the court, not a few feet off, but I was thinking about that test as we saw this string of sports startup rollout in the past few weeks, and compared what two at launch, TGL and Unrivaled, had that many other fledgling leagues did not…immediate star power which brought prestige.
It is so hard to capture the attention of the casual fan and to even reel in the hardcore supporters who follow athletes, hometown teams and all of the tribalism of sport year after year by just providing ANOTHER version of the game. We have seen it in football, where yet ANOTHER version of Arena football will launch after at least seven failed efforts, and where the allure of spring football is continued to be chased by the UFL, albeit with a much better chance of success than its numerous numerical predecessors who never made it to season three. While those chasing the startups keep talking about the massive football fans, the reality is that people love their teams…they don’t just love the game. Spring football? The NFL calls it The Combine and the Draft and OTA’s…events that enhance the fandom and give those consumers a chance to support something they know year-round…the teams and the players they love.
It is into that mix that TGL and Unrivaled kind of fall. More of two sports that fans and consumers may already have enough of, albeit in a quieter time of year for those sports…women’s pro hoops and men’s golf…(women’s professional basketball in North America anyway; there is plenty of high level women’s hoops in college and professional leagues are ongoing abroad) with different, quicker formats and lots of nuances to create interest and chatter and eventually value for those tuning in or engaging or buying merch and on and on. Both also are playing in singular facilities in Florida, not trying to take their shows on the road to parts far and wide, where costs for a startup can be a killer.
Both also have something essential that many startups lack…name recognition of their athletes from the launch….and not just recognition, athletes who have a stake in the success of the league, which makes not just athletes, but anyone committed to success. Contrast and compare with other startups now and into the next few months. While some may say full support at the grassroots is how they will build, creating stars from nothing in a very crowded space just makes the chances at success, even with the deepest pockets, that much harder. We will soon have not one but four women’s volleyball leagues, five if you count the AVP. Can any casual observer name one of these rising stars, or can any of them give casual fans a reason to tune in other than an interest in the sport? Deep core audience will watch and attend and engage, but casual interest? For one team, one athlete is hard enough. But segmenting the market that isn’t even established into five viable properties?
Last time I checked there aren’t two competing football or baseball or hockey or basketball leagues that have survives no matter what the economics are. Five? Really? With no household names just yet? Ouch.
Now its possible to build stars from scratch, because of the power of social media and the depth of stories waiting to be told. The UFC way back in the day, rode the power of “The Ultimate Fighter” to more brand recognition and star power with their partnership with Spike TV than anyone could have imagined. It’s just a much, much harder way to go.
Now that’s not to say that Unrivaled or TGL are locks and any of the volleyball ventures are failures. Keeping consumers engaged week after week without that ability to actually be there and have a rooting, local interest in a team (Unrivaled chose not to attach fictious names to their teams vs. TGL which has city names for some reason) is a challenge, but with solid investment, brand participation, an understanding of the social space (Unrivaled probably the first league to sell that walkway to the arena, a key spot for new investment as sport and fashion grow, to Sephora…we will see more of this in the next few months elsewhere and wrote about it last fall) and what engagement can look like, media partners that have an upside in success, and ATHLETES with skin in the game, gives both a base to build off of, even if/when ratings plateau.
Startups in any business are hard. Competition and diminishing attention spans are tough. Investors with itchy trigger fingers present challenges. Rare is the startup with steak and sizzle, and at least for now both TGL and Unrivaled came out of their respective Florida boxes shucking and jiving and making noise.
Most importantly they provide an answer to a key question for casual fans…
“Isn’t that the league where…”
Most others can’t say that yet, let’s see what comes next.
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