The Game Changers for Profitable Professional Sports Business Development
It is a whole new ball game, one that can generate tens of millions of dollars more in local as well as national dollars, something I've been demonstrating since 2000. Whether UFL, NFL, USFL, Arena, UFC, etc., etc., these present the low hanging fruit of local advertisers. Teams have always been what I like to call "revenue shopping malls", bringing as many as possible under the team umbrella and, where it applies, venue umbrella. Six recent events have caused changes, a number of which I have posted since 2000 on my web sites: the rapid disruption of technology regarding what I have called the 40 ways in 26 categories to generate revenue (#40 = ETC.), half of which are media related.
Ten New Game Changers that Will Enable Generating Profits for Professional Football Teams and Leagues
- First time big time money off the sidelines: the 29 billionaires willing to bid $1B for the Dodgers (L.A. Times and ESPN/LA article). (NOTE: added 8-24-13: The 29 YOUNGEST billionaires of 2013, under 40, Forbes, April 3, 2013.)
- First $2B offer: the winning Dodger bid of $2.15B (the "message" doesn't get any clearer than this. It's a magic, media revenue raise.
- First UFC-Fox media type deal. The UFC - Fox media partnership deal (some of my guys are involved with that and are also interested in pro football in Las Vegas, and would discuss taking over the Las Vegas franchise).
- First expansion on cable: Cash flows through cable outlets
- First wide scale recognition of the best model today that is replicatable: the YES Network model.(Comcast's attempt to parallel ESPN nationally as well as have 9 regional sports network, as we discussed in 2009 in Casa Grande, is still valid, whether with Comcast or another).,,Now add the new CBS Sports network, with its 24 hour format, and desperate need for top live sports, and that = NBA and NFL teams.
- Morph of Internet into a multi-platform information dispensing/acquiring technology, spitting out profit potentials. What I wrote regarding how to save billions by using the Internet back in 2000, has morphed in 2012 into Game Changer #7, multiple social media platforms and dashboards.
- Social media platforms and dashboards for facilitating marketing, sales, brand loyalty, making connections that lead to demonstrating passions and interests, and, ultimately, achieving marketing and sales growth goals and greatly increasing revenue and profits. See Demystifying social media, with the subheadline: As the marketing power of social media grows, it no longer makes sense to treat it as an experiment. Senior leaders can harness social media to shape consumer decision making in predictable ways.
- Wider acceptance of the reality that stadiums and game days are virtual TV/broadcast studios, backdrop to all the different platforms on which games can be placed (broacast TV and radio, cable, satellite, streaming on TV/computers/tablets/iPhones, print transfers, etc., as well, on all the above, reruns in whole and in part. Use Fan Plans To Build Attendance, Sustain Sell Outs, Increase Revenues to catalyze reversal of struggle to fill seats.
- Expanding sponsorship across all industries and around the world, holding gatherings (in person and through webinars) to show sponsors how they can enter in partnerships to enable them to generate revenue, with profits split by agreed formula with the team and/or league, as appropriate.
- Merchandise and gear has greatly expanded beyond simple jerseys and caps, and beyond just males — as seen in the success of football gear and fashion for women (for example, Alyssa Milano’s line). Either way, the team, sponsor name, and logo are used.
Page content written / posted: 07-23-12, 10-13-13