Our weekly submission from James Gumina, who also chimed in here about his experience at The Savannah Bananas… As a young person in an age of limitless information, there are always a lot of things on my mind, mostly sports-related, and often focused on what’s happening off the field. From marketing campaigns to broadcasts to business strategy, it’s a lot to process. So, to clear some space, here are a few things from this week that have stuck with me more than most. Whether you’re in the business, a media nerd, or someone who can’t stop thinking about how the game is packaged, I hope something here sticks with you, too.
Wimbledon Whites and Ads
I do not need to tell you that Wimbledon is one of the most prestigious sporting events in the world, and has been for a very, very long time. Through its long and storied history the tournament has picked up more than a few differentiators along the way, and has aggressively leaned into them in order to keep its edge. From the grass courts to the white outfits, Wimbledon is one of the most instantly recognizable events in sports.
One of the ways Wimbledon has protected its legacy is by protecting the in-person experience. Much like the Masters in the United States, Wimbledon has focused on cheap tickets and concessions, as well as a ticket upgrade lottery, to allow fans the chance to see the games biggest stars for a fraction of the prices of other major tournaments. By doing so it has created an extremely loyal fanbase, and made tickets accessible to real fans. While this may leave money on the table, it promotes the tournament and always creates social media discussion around the time of the event. Furthermore, the crowd attire, players’ whites, and the lack of aggressive on-court sponsorships create a clean and elevated look for the tournament, again focusing on creating a feeling and brand associated with the tournament. By opting out of these sponsorships Wimbledon is opting out of nine figures in revenue per year, by some estimations, but for them their legacy and brand is more important than the lost money. By understanding what makes it unique Wimbledon has been, and will continue to be, able to remain the pinnacle of the tennis world, and one of the pinnacles of the sports world.
Wimbledon has enough history that they do not necessarily need to do these things, and is losing money in the short-term by doing them. Yet, by doing so it further emphasizes its place as one of the most prestigious competitions in the world, preserving over 100 years of history, and setting itself apart for the next 100 years.
Apple vs ESPN for F1 Rights
Earlier this week, the Financial Times reported that Apple has put in a bid between $250 and $300 million for the rights to broadcast Formula One in the United States. This news comes as Apple’s F1 movie has surpassed expectations and raked in nearly $300 million at the global box office, with more runway to keep grossing. This success has made the F1 movie the most successful Apple produced movie of all time, and spurred the tech giant’s bid for F1 rights. By placing its bid, Apple has now entered into a competition with the current rightsholder, ESPN, in what will be an interesting decision for Formula 1.
While the Apple offer is over double the dollar value that ESPN currently pays, according to Front Office Sports, the audience on ESPN dwarfs that of Apple TV. Formula One will be able to look at previous moves to Apple TV by the MLS when assessing the viability of a switch to the streaming service, and, unfortunately for Apple, early reviews of their MLS ratings have been abysmal, which will certainly hurt their case to take over the broadcast. The tradeoff will be more than just viewership however, as seen by the success of the F1 movie, Apple has resources for content development that ESPN simply does not have. Furthermore, with a price tag of over $250 million, F1 can become the top dog for Apple’s sports coverage, something that it could never hope to crack at ESPN. Although, it remains to be seen if being the top dog for a company focused on making computers and smartphones is more valuable than being a roleplayer for a company focused on sports. Wherever F1 decides to take its rights, there will certainly be tradeoffs, and I will be watching the decision closely in the coming days and weeks.
Stray thoughts More talk of private equity entering sports ownership groups. Pat McAfee is staying busy, will be in Atlanta for MLB’s Home Run Derby. The NFL has relaxed rules around jersey combinations for teams, hopefully spurring big revenue growth for merch sales. Cleveland Guardians pitcher under investigation for gambling on his outings.
Fanaticsfest, FIFA And The Growth of Fandom…