tag:blogger.com,1999:blog-16915130211648491742024-03-05T05:19:45.838+01:00Jonas RatajczakJonas Ratajczakhttp://www.blogger.com/profile/07124303338659691285noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-1691513021164849174.post-29568844917776475092015-02-08T22:28:00.002+01:002015-02-08T22:28:31.995+01:00An Investment Strategy For Professional Sports Clubs<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-GB">At the beginning of December 2014 Deloitte
published the latest “Finanzreport deutscher Profisportligen 2014”, giving an
overview about the financial and economical situation of the four German sport
leagues basketball (BBL), handball (HBL), ice hockey (DEL), and third league
football. In summary the report certifies all four leagues increasing attendances
and growing financial revenues. Main sources of revenue were commercial
revenues, including incomes from sponsorships and merchandising, and match day
revenues from ticketing. On the downside, gains from media right sales were negligible
for clubs of BBL, HBL, and DEL as there were no considerable broadcast
arrangements.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-GB">The outlook, given by the authors of the report,
is more or less positive for all three leagues, thus we can expect also
future grows in terms of attendance and revenue figures.<o:p></o:p></span></div>
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<br /></div>
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<span lang="EN-GB">This circumstance raises the question where
growth actually comes from? Using the example of the BBL and its development in
the recent years we can see, that the governing body plays a crucial role when
it comes to enabling and initialising professionalisation and commercial
growth. However, in the end the individual participating clubs are responsible
for acquiring commercial partners and establishing professional structures. By
taking a look at the commercial business strategies of most of the clubs of
BBL, HBL and DEL it can be assumed, that the top priority of the greater part
of these clubs is to invest financial resources in the sports squads, rather
than investing in infrastructure and commercial structures. This approach is
based on the theory that high investments into the team lead to a better
sportive performance and thereby to a higher attractiveness for spectators and
commercial partners. The figure below exemplifies this approach. <o:p></o:p></span></div>
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<span lang="EN-GB"><br /></span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEipN1WjfP7fcYKdESBhXbNPqOb4Pe2qgDzxEsILk4etOX7Gr1EgGtlPnekbCNARWFCZVv1E3iA06IkzEc-voyZ7otINX17vuENjQtIY0iJgke1VTgot7IGKJGTlIZwiCNl4X4LoQ1BNJrA/s1600/investment-strategy-jonas-ratajczak-2.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt="" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEipN1WjfP7fcYKdESBhXbNPqOb4Pe2qgDzxEsILk4etOX7Gr1EgGtlPnekbCNARWFCZVv1E3iA06IkzEc-voyZ7otINX17vuENjQtIY0iJgke1VTgot7IGKJGTlIZwiCNl4X4LoQ1BNJrA/s1600/investment-strategy-jonas-ratajczak-2.jpg" height="66" title="Current Investment Strategy (by Jonas Ratajczak)" width="400" /></a></div>
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<span lang="EN-GB">Against the background of a sustainable
long-term business strategy, which aims on stable, better increasing, financial
revenues and sustainable numbers of spectators, I am convinced that the aforementioned
strategy is not the most rewarding one. This view is based on the proven fact,
that the greater part of fans and followers in diverse sports is not primarily
interested in victories and excellent sportive performances of their teams, but
rather in excellent customer service, CRM and fan engagement measures, and, of
course, commitment and dedication of the players. However, last named does not
require top-earning players. Consequently, in my opinion the investment
strategy at professional sports clubs should look like shown in the figure
below. <o:p></o:p></span></div>
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<span lang="EN-GB">The figure shows, how an investment in the
infrastructure and the administrative office staff enables customer (fan)
service and therefore customer satisfaction, which is one of the key elements
for customer retention. Additional manpower in the commercial department would
also enable the sustainable management and acquirement of sponsorships and
partners. A qualitative approach to potential partners is more likely to
generate new contracts than only sportive success without the appropriate
address. After a timeframe of two to three seasons the additional revenues will
break even the investments and from that point on additional revenues could be
invested into the actual performing team, without neglecting the requirements
of a professional sport club of today.<o:p></o:p></span></div>
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<!--EndFragment--></o:p></span></div>
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<span lang="EN-GB">The full report from Deloitte is available upon request: <a href="http://www2.deloitte.com/de/de/pages/consumer-business/articles/Finanzreport-deutscher-Profisportligen.html" target="_blank">Deloitte Report</a>
[German only]<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
Jonas Ratajczakhttp://www.blogger.com/profile/07124303338659691285noreply@blogger.com0tag:blogger.com,1999:blog-1691513021164849174.post-78108524020879110572014-11-27T12:54:00.000+01:002014-11-27T12:54:52.890+01:00Common Ticketing Strategies in Sports<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-justify: inter-ideograph;">
<span lang="EN-GB" style="font-family: Arial; line-height: 150%;">This essay gives a broad overview
about the marketing theory behind the term ‘strategy’ and describes why and how
strategies are developed and used. Finally it gives an overview about three
common ticketing strategy approaches used by professional sports clubs nowadays.
<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Arial; line-height: 150%;">In my post from the 28</span><sup style="font-family: Arial; line-height: 150%;">th</sup><span style="font-family: Arial; line-height: 150%;">
October I identified three reasons why on-site spectators are crucial for every
sport club. In addition to these reasons, Drayer et al. (2012: 184) argue that
facts like increasing revenue needs, through for instance growing player
salaries and operational expenses, and latest technological developments force
sport marketers to seek for more effective ticketing strategies in order to
meet the organisations’ needs.</span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-justify: inter-ideograph;">
<span lang="EN-GB" style="font-family: Arial; line-height: 150%;">Generally speaking a strategy
could be defined as “a plan of action designed to achieve a long-term or
overall aim” (Oxford 2014). Although the sport business is characterised
through certain particularities and generic marketing measures cannot be simply
adopted without adapting them, it is worth considering the not sport related
marketing theory at this point in order to provide a basic theoretical
foundation. According to Palmer (2007: 23) a successful marketing management
process consists of the four fundamental stages analysis, planning,
implementation and control, whereat the planning stage comprises the
development of a strategy based on the specific circumstances identified during
the analysis stage. It is also generally acknowledged that, event though there
are particular situations that require specific marketing strategies like for
example the introduction of a new product, an on-going implementation of
marketing measures is crucial for an organisation in order to reach its
objectives on a permanent basis (Hooley et al. 2004: 44-47; Palmer 2007: 23;
Jobber & Ellis-Chadwick 2013: 54-58). <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-justify: inter-ideograph;">
<span lang="EN-GB" style="font-family: Arial; line-height: 150%;"><br /></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-justify: inter-ideograph;">
<span lang="EN-GB" style="font-family: Arial; line-height: 150%;">When it comes to selling tickets,
the sport related literature agrees on the perception that there is a wide
array of strategies and tactics that could be used to pursue ticketing
objectives. However, there is also accordance about the fact that a ticketing
strategy is never a ‘one size fits all’ model. Instead a customised approach,
which considers the specific circumstances of the particular organisation, is
required (Irwin et al. 2008: 88-91; Meir & Arthur 2007: 322/323; Fullerton
2010: 4/523; Lee & Kang 2011; Rishe & Mondello 2003). Nevertheless
there are, as listed below, several acknowledged basic practices, which are
nowadays considered to be expedient.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-justify: inter-ideograph;">
<span lang="EN-GB" style="font-family: Arial; line-height: 150%;"><br /></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-justify: inter-ideograph;">
<span lang="EN-GB" style="font-family: Arial; line-height: 150%;">According to basic marketing
theories, a strategy is always linked to particular objectives, defined during
the analysis and the planning stage, which are again linked to the corporate
objectives of the overall organisation (Rowley 1997; Meir & Arthur 2007:
326; Shilbury et al. 2009: 35). For sport clubs this circumstance becomes
obvious when comparing the objectives of the profit orientated franchise clubs
in most North American Major Leagues with the not-for-profit approach in, for
instance, German basketball (Dietl et al. 2011). Whether a club follows the
objective of revenue maximisation or increasing the attendance (Lee & Kang
2011), the overall purpose of developing a (ticketing) strategy is to gain a
competitive advantage towards direct and indirect competitors (Schwarz &
Hunter 2008: 9; Shilbury et al. 2009: 35). This is mainly achieved through
adapting an organisation’s marketing mix (4 Ps, respectively 7 Ps) to the
specific needs of the customers (Palmer 2004: 19).<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-justify: inter-ideograph;">
<span lang="EN-GB" style="font-family: Arial; line-height: 150%;">Although all parts of the
marketing mix are important and should not be neglected, the ‘Price’ element
could be considered as the most crucial one when it comes to ticketing
strategies (Lee & Kang 2011; Drayer et al. 2012; Shapiro & Drayer 2014;
Irwin et al. 2008: 89; Fullerton 2010: 523). One major reason for that is the
fact that Price is the only element of the marketing mix which actually
generates revenue (Kotler & Armstrong 2004; Clowes & Clements 2003) as
well as the fact that price significantly influences the decision making of
customers, as described later in this passage. <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-justify: inter-ideograph;">
<span lang="EN-GB" style="font-family: Arial; line-height: 150%;">When it comes to ticketing
strategies, broadly defined it could be distinguished between four different
ticketing strategy approaches, which also demonstrate the development over time
from a comparable simple approach right up to complex strategies, based on
latest marketing insights. <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-justify: inter-ideograph;">
<span lang="EN-GB" style="font-family: Arial; line-height: 150%;">The first and most simple
strategy is based on a ‘one size fits all’ concept where clubs charge the same
price for every ticket and every game throughout the whole season (Drayer et
al. 2012: 184). <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-justify: inter-ideograph;">
<span lang="EN-GB" style="font-family: Arial; line-height: 150%;">The seconds approach alters this
strategy and is also known under the terminology ‘discriminatory ticket
pricing’. It mainly comprises different prices for different seat categories
(e.g. standing stands versus courtside seats) and different customer segments,
such as discounts for students and children (Fullerton 2010: 526; Meir &
Arthur 2007: 333; Rishe & Mondello 2003: 73; Drayer et al. 2012: 184). <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-justify: inter-ideograph;">
<span lang="EN-GB" style="font-family: Arial; line-height: 150%;">The third approach is called
‘Variable Pricing’ (hereinafter known as VP) and means “selling a seat for
different prices depending upon timing or the opponent” (Fullerton 2010: 527).
This strategy takes factors like demand and attractiveness of the game into
account and aims primarily on maximising the attendance at low-demand games and
increasing the revenue at more popular ones (Drayer et al. 2012: 188; King
2002; Drayer & Shapiro 2011; Mullin et al. 2007: 227). Commonly a VP
strategy divides the totality of games per season into two or three categories,
each representing teams with the same projected attractiveness and demand
(Clowes & Clements 2003: 116). Timing is the second major factor the
strategy takes into account. Because different times and dates, for instance
weekdays versus weekends or public holidays, create different demands,
different prices for peak and off-peak games seem to be advisable (Blakey 2011:
86). According to Cameron (2002) the two requirements for a successful
implementation of a VP strategy are to keep accurate transaction records and to
consider the interests of season tickets holders. <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-justify: inter-ideograph;">
<span lang="EN-GB" style="font-family: Arial; line-height: 150%;">The fourth and most complex
approach develops the aforementioned VP strategy further and is known as
‘Dynamic Ticket Pricing’ (hereinafter known as DTP). In 2009 the San Francisco
Giants (Major League Baseball) became the first professional sports team which
introduced a purely DTP based strategy. Beside the aforementioned timing and
opponent, the DTP considers numerous internal and external factors as for
instance player performances or even the weather. By using a special DTP
technology, clubs can set and adapt ticket prices in real time which allows
them to quickly react to demand changes and achieve both, revenue and
attendance maximisation objectives (Drayer et al. 2012; Shapiro & Drayer
2014; Rishe 2012). Although DTP, which originally comes from the airline and
hotel industry, is nowadays successfully established at some primarily North
American sports clubs, Drayer et al. (2012) emphasise the challenges and risks
associated with the implementation of such a strategy. Due to missing know-how
and technology </span><span style="font-family: Arial; line-height: 150%;">developed for the specifics of
the European market, as well as the lack of required relevant customer
information and empirical values at most clubs, considering a DTP strategy for
the case of any professional club in Germany seems not to be expedient at this
point.</span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Arial; line-height: 150%;"><br /></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-justify: inter-ideograph;">
<span lang="EN-GB" style="font-family: Arial; line-height: 150%;">The circumstance that most clubs
already altered their ticket prices based on different seat categories and
customer segments, as well as the fact that the DTP approach is not effective
viable at this point, shifts the focus upon a VP strategy. Researches prove
that there are several sport leagues that already implemented the VP approach
successfully, including some clubs of the football Premier League (Clowes &
Clements 2003), the National Football League (Rishe & Mondello 2003), some
clubs of the Major League Baseball (King 2002), and in several college sports
(Mullin et al. 2007: 228) to name but a few. In near future hopefully some more
will follow!<o:p></o:p></span></div>
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<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-justify: inter-ideograph;">
<span lang="EN-GB" style="font-family: Arial; line-height: 150%;">A list of references and
literature used in this essay is available upon request. <span style="font-size: 11pt;"><o:p></o:p></span></span></div>
Jonas Ratajczakhttp://www.blogger.com/profile/07124303338659691285noreply@blogger.com0tag:blogger.com,1999:blog-1691513021164849174.post-40403754986134916302014-11-09T16:24:00.002+01:002014-11-13T10:37:20.697+01:00Determining the Attractiveness of Away Teams – Using the Example of the Beko BBL in 2013/14<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-justify: inter-ideograph;">
<span lang="EN-GB" style="font-family: Arial; font-size: 11.0pt; line-height: 150%;"><br /></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-justify: inter-ideograph;">
<span lang="EN-GB" style="line-height: 150%;"><span style="font-family: Arial, Helvetica, sans-serif;">Many sport clubs are looking for ways to increase the
attendance figures at home games against especially less attractive opponents
and at off-peak times, and furthermore to gain higher revenues at top matches. Dynamic
Ticketing and Variable Pricing are two approaches of how to create the
ticketing more demand orientated and therefore more target-oriented. Nowadays only
a few major league clubs in the US use Dynamic Ticketing. As it requires
comprehensive consumer data and a heavily customised IT system developed for
the case of the specific club, Dynamic Ticket is basically not yet implemented
by clubs in Europe. <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-indent: 36.0pt; text-justify: inter-ideograph;">
<span lang="EN-GB" style="line-height: 150%;"><span style="font-family: Arial, Helvetica, sans-serif;">A more simple approach, compared to the
aforementioned one, is called Variable Pricing. This strategy takes factors
like demand and attractiveness of the game into account. Commonly a Variable Pricing
strategy divides the totality of games per season into two or three categories,
each representing teams with the same projected attractiveness and demand,
based on the two factors attractiveness of the opponent and timing (e.g.
weekend vs. weekday).<o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-indent: 36.0pt; text-justify: inter-ideograph;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span lang="EN-GB" style="line-height: 150%;">The following framework shows one approach
of how to determine the attractiveness of away teams for the case of the German
Basketball Bundesliga, the Beko BBL.</span><span style="line-height: 150%;">The figure below gives an overview about how many spectators
the individual away teams (rows) attracted during the Beko BBL season 2013/14 when
playing at home games of the host teams (columns). The figures are based on the official data given by the Beko BBL (</span>http://bit.ly/1wqLnCT)</span><span style="line-height: 150%;"><span style="font-family: Arial, Helvetica, sans-serif;">. Each of the given
percentages indicates the ratio between the average attendance of the
individual home team and the concrete attendance at the concrete game. The
colours red and green indicate whether the away team attracted an attendance of
less than 5 % compared to the home team’s average, or the away team attracted
an attendance of more than 5 % compared to the average of the home team. The
example of the FC Bayern Munich shows that every given percentage is green,
what indicates that more spectators came to see their home teams playing
against the FCB than spectators come in average to the home games of their clubs.</span></span></div>
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<br /></div>
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<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhMrQYMrw_AT0eRV8P5CBPxK-vOn0DzNwXqD9TyAFSu-L_ZahSpfk2lD0KVF-BsMG2k3Kiis9vBOfuybZQ9tVoyNHwyQM6CJx99joh_NanhvAfUkWL399GspPV-Vjv7t5D0DiOV5LQpR_4/s1600/BekoBBLSpectators2.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img alt="" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhMrQYMrw_AT0eRV8P5CBPxK-vOn0DzNwXqD9TyAFSu-L_ZahSpfk2lD0KVF-BsMG2k3Kiis9vBOfuybZQ9tVoyNHwyQM6CJx99joh_NanhvAfUkWL399GspPV-Vjv7t5D0DiOV5LQpR_4/s1600/BekoBBLSpectators2.png" height="298" title="Spectators attracted at away games during the Beko BBL season 2013/14" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><span style="background-color: white; color: #666666; font-family: 'Trebuchet MS', Trebuchet, Verdana, sans-serif; font-size: 11px; line-height: 14px;">Attracted spectators at away games of Beko BBL clubs in 2013/14</span><br />
<span style="background-color: white; color: #666666; font-family: 'Trebuchet MS', Trebuchet, Verdana, sans-serif; font-size: 11px; line-height: 14px;">(click to enlarge)</span></td></tr>
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<span lang="EN-GB"><span style="font-family: Arial, Helvetica, sans-serif;"><span style="line-height: 150%;">The next figure </span><span style="line-height: 24px;">summarizes</span><span style="line-height: 150%;"> the findings of the table above into
an overview about which Beko BBL teams could be described as attractive
opponents and which as less attractive opponents. Column three shows at how many games
the individual away club attracted more spectators than the normal home game
average, and column four shows the opposite, thus games on which they attracted
fewer spectators. Column seven calculates the summed up positive percentages
and negative percentages to a final figure of how attractive the respective
club as a guest team is. All figures coloured in green indicate attractive
clubs whereas all red coloured figures indicate less attractive clubs. The
framework used in this example could be adapted for more or less every sport
and used by sport marketers to determine the demand for every encounter of the
season and build therefore the basis for further marketing measures, for
example a Variable Pricing strategy.</span></span><span style="font-family: Arial; font-size: 11pt; line-height: 150%;"><o:p></o:p></span></span></div>
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<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjYQ5d1n4jqiCLDQYMghsrIk1eK5Cp8QiVxWBL4_h22oJotxi5B6P6nkyyV1_A3eC78wGkWVtc-PbwTs6UwPvPddx304tzbOHlMoHql5vZdhbCFGM6zTTKAMZi5Of70JQmz5BkSR6-5nW4/s1600/BekoBBL_AttractiveTeams.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img alt="" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjYQ5d1n4jqiCLDQYMghsrIk1eK5Cp8QiVxWBL4_h22oJotxi5B6P6nkyyV1_A3eC78wGkWVtc-PbwTs6UwPvPddx304tzbOHlMoHql5vZdhbCFGM6zTTKAMZi5Of70JQmz5BkSR6-5nW4/s1600/BekoBBL_AttractiveTeams.png" height="640" title="Attractive and less attractive clubs of the Beko BBL" width="481" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Overview about attractive and less attractive clubs of the Beko BBL in 2013/14, <br />
based on spectators attracted at away games<br />
(click to enlarge)</td></tr>
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Jonas Ratajczakhttp://www.blogger.com/profile/07124303338659691285noreply@blogger.com0tag:blogger.com,1999:blog-1691513021164849174.post-33735904688100592812014-10-28T12:23:00.001+01:002014-10-28T12:23:35.035+01:00Three Reasons Why On-Site Spectators are Crucial for Every Sport Club<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-justify: inter-ideograph;">
<span lang="EN-GB" style="font-family: Arial; font-size: 11.0pt; line-height: 150%;"><br /></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-justify: inter-ideograph;">
<span lang="EN-GB" style="font-family: Arial; line-height: 150%;">Generally there are numerous reasons why sport clubs are
interested in selling tickets and thus in high attendance figures. The purpose
of this short treatise is to identify the three main and probably most important
generic reasons why a sufficient live attendance is crucial for every sports
club.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: right; margin-left: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhmZ73i4o6tKS1-vW10qx8gmhQ47KNq91XVOob0Q9zbD8WPIR7uQRt5r5eQuiI5zT5WWVdi1QIgvSUYvvvbDAb8wWdFJTvlQTJC7OJ_wz92mQExiAlcDLjzljwXYLT7j7yhzA1qryqup4s/s1600/Basketball_Berlin_Spectators.jpg" imageanchor="1" style="clear: right; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img alt="" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhmZ73i4o6tKS1-vW10qx8gmhQ47KNq91XVOob0Q9zbD8WPIR7uQRt5r5eQuiI5zT5WWVdi1QIgvSUYvvvbDAb8wWdFJTvlQTJC7OJ_wz92mQExiAlcDLjzljwXYLT7j7yhzA1qryqup4s/s1600/Basketball_Berlin_Spectators.jpg" height="266" title="Basketball in the o2 world Berlin" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><span style="font-size: x-small;">ALBA Berlin has the highest average attendance in European Basketball</span></td></tr>
</tbody></table>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-indent: 36.0pt; text-justify: inter-ideograph;">
<span lang="EN-GB" style="font-family: Arial; line-height: 150%;">The first reason goes back to the fact that
ticketing is one major source of direct revenues for most professional sport
clubs (Chadwick & Beech 2007: 5; Howard & Crompton 2004: 87;<span style="color: red;"> </span>Clowes & Clements 2003). During the season
2012/13 the participating clubs of the Beko BBL generated a total revenue of
86,6€ million. The second biggest amount of 19,8€ million (17,15%) was
generated through ticket sales (Deloitte 2013: 9). Only the revenues from
sponsorships reached a higher value for the clubs. In addition spectators are
responsible for associated revenues through for instance merchandise purchases
(Howard & Crompton 2004: 88). The mentioned revenue figure underpins the
importance of ticket sales for professional sport clubs out of the financial
perspective. The specific service characteristic of perishability reinforces
this perception additionally. Related to this, Burton (1998) stresses the
importance of avoiding unsold seats wherever possible because unsold tickets
lose their value during the event and equal therefore lost potential revenues
(Palmer 2008: 460). The fact that in case of most sports clubs the amount of sold
tickets does not significantly influence the variable costs of hosting a home
games even supports this perceptions. <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-indent: 36.0pt; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-indent: 36.0pt; text-justify: inter-ideograph;">
<span lang="EN-GB" style="font-family: Arial; line-height: 150%;">The second reason why sport clubs are
interested in selling tickets is based on the impact a large and engaged
attendance has upon the on-pitch processes. This effect is discussed in
profound literature, mainly referring to the work of Courneya & Carron
(1991) who introduced the term ‘home advantage’ in order to describe how home
teams benefit from the support of their fans. Comprehensive research around
this term identified the impact the crowd has upon the officials (i.e. referees
and judges) (Nevill et al. 2002; Dohmen 2008; Agnew & Carron 1994) as well
as upon the players (Thirer & Rampey 1997). Basically it could be
summarised that “teams perform better and win more games when they receive more
enthusiastic crowd support” (Zeller & Jurkovac 1988: 20). This effect was
ascertained in several North American team sport leagues, including Baseball
(Adams & Kupper 1994), Ice Hockey (Agnew & Carron 1994), Basketball
(Varca 1980) and American Football (Nevill et al. 1996).</span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-indent: 36.0pt; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-indent: 36.0pt; text-justify: inter-ideograph;">
<span lang="EN-GB" style="font-family: Arial; line-height: 150%;">The third reason why sport clubs are
interested in ticketing is directly related to the marketing tool of sport
sponsorships. Nowadays an increasing number of enterprises use sport
sponsorships as a communication tool and an alternative to traditional
advertising measures (Schwarz & Hunter 2008: 244; Lagae 2005: 43). Common
criterions, when it comes to evaluating potential sponsees, are spectator
figures, whereby there is a distinction between direct spectators, which are
actually at the ground, and indirect spectators, which follow the event live or
time-displaced through the media (Mullin et al. 2007: 318-324; Blakey 2011: 114/115).
Whereas there is a lot research about sponsoring major sport events and sport
clubs with a comprehensive media coverage (Amis et al. 1999; Quester &
Farrelly 1998), only a few considerations have been made about the objectives
pursued by companies engaged in sponsorships with clubs and events with a
negligible media interest (Greenhalgh & Greenwell 2013). However,
Greenhalgh & Greenwell (2013) argue that some particular sponsorship
objectives, like for instance involvement within a community and enhancement of
employee relations, could be also or even more effective pursued through
engaging in partnerships with clubs having this marginal media interest.
Additionally Stotlar (2009) writes that these clubs often attract more
demographic and especially psychographic homogeneous fans, what could be again
expedient for sponsors with corresponding objectives. As stated before were
sponsorship deals the most important source of revenue (52,1%) for Beko BBL
clubs during the season 2012/13 (Deloitte 2013: 9). Because the media coverage
of German basketball is generally meagre (Hebben 2011) (beside some particular salient
clubs like the FC Bayern Munich or the Brose Baskets Bamberg) and many club did
not appear on television screens more than twice the 2013/14 season, it could
be assumed that sponsors are principally interested in reaching direct on-site
rather than indirect media spectators. High attendance figures could be
therefore beneficial when it comes to (re-) negotiating sponsorship deals.<o:p></o:p></span></div>
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<!--EndFragment--><br />
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-indent: 36.0pt; text-justify: inter-ideograph;">
<span lang="EN-GB" style="font-family: Arial; line-height: 150%;">The three identified reasons underline the
importance of on-site spectators for every sport club, regardless of whether
with or without a high public interest and media coverage or fully professional
structures. This circumstance should be considered by officials when operating
areas like ticketing, customer service or fan relation. In my opinion many of nowadays
clubs have a focus shifted too much onto serving and satisfying business
stakeholders beside the actual fans and supporters. <span style="font-size: 11pt;"><o:p></o:p></span></span></div>
Jonas Ratajczakhttp://www.blogger.com/profile/07124303338659691285noreply@blogger.com0tag:blogger.com,1999:blog-1691513021164849174.post-9491789482333276912014-10-08T15:06:00.000+02:002014-10-08T15:06:51.857+02:00Investigation and Analyses of the main Marketing Activities of the Rugby Football League<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-justify: inter-ideograph;">
<span lang="EN-GB">The competition within the leisure
entertainment market has grown noticeable over the last years. All kind of
providers are competing against a flood of different leisure suppliers. The
same situation is true for sports clubs, which have to contend for money and
time of the customers against other sports clubs, theatres, cinemas and so
forth. In the case of sports clubs the customers as
spectators take special positions because they are simultaneously necessary to
create the atmosphere at the grounds, which is part of the sport product. This situation, together with the fact that
spectators are responsible for a huge revenue amount, makes the marketing of
their product crucial for sports teams and clubs, because marketing means
attracting customers.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-justify: inter-ideograph;">
<span lang="EN-GB">The paper you can download using the link
below investigates and analyses the main marketing activities of the <i style="mso-bidi-font-style: normal;">Rugby Football League</i> (RFL), which is
the governing body for <i style="mso-bidi-font-style: normal;">Rugby League</i> <i style="mso-bidi-font-style: normal;">football</i> in Britain and Ireland, in
order to identify its current situation and possible issues. Passage four of the
work explains the marketing mix using the example of the <i style="mso-bidi-font-style: normal;">Leeds Rhinos</i>, which is one of the most successful teams in the <i style="mso-bidi-font-style: normal;">Super League </i>(SL), the highest Rugby
League club competition in Europe, administered by the RFL. <span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-justify: inter-ideograph;">
<span lang="EN-GB">Key aspects of this paper are among others:</span></div>
<div class="MsoListParagraphCxSpFirst" style="line-height: 150%; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -18.0pt; text-justify: inter-ideograph;">
</div>
<ul>
<li><span lang="EN-GB" style="line-height: 150%; text-indent: -18pt;">The orientation of sports</span></li>
<li><span style="line-height: 150%; text-align: justify; text-indent: -18pt;">Environmental issues affecting
sport clubs (macro and micro)</span></li>
<li><span lang="EN-GB" style="line-height: 150%; text-align: justify; text-indent: -18pt;">Competitive advantage in sports</span></li>
<li><span lang="EN-GB" style="line-height: 150%; text-align: justify; text-indent: -18pt;">The 7 Ps of the marketing mix
of the Leeds Rhinos</span></li>
</ul>
<div style="text-align: justify; text-indent: -24px;">
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<span lang="EN-GB"> The attached paper
was submitted to Coventry University in November 2013 as part of the assessment
requirements. Please feel free to download this
work for future references.</span></div>
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<a href="https://www.dropbox.com/s/dvirgr0hfcldy0q/RugbyFootballLeague_Marketing_Jonas%20Ratajczak.pdf?dl=0" style="font-family: Arial; line-height: 18px;" target="_blank">[DOWNLOAD] Marketing Activities of the Rugby Football League</a><span style="line-height: 150%;"> </span></div>
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Jonas Ratajczakhttp://www.blogger.com/profile/07124303338659691285noreply@blogger.com0tag:blogger.com,1999:blog-1691513021164849174.post-36118121064998524072014-09-30T13:45:00.003+02:002014-10-08T15:12:27.774+02:00Shirt Sponsorships in North American Major Leagues Using the Example of the NBA<div class="MsoNormal" style="line-height: 115%; mso-layout-grid-align: none; mso-pagination: none; text-autospace: none;">
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-justify: inter-ideograph;">
<span lang="EN-GB">(Abstract, you can download the full paper
using the link below)<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-justify: inter-ideograph;">
<span lang="EN-GB">Today’s sport business is far away from the
status it once had. Professionalization and commercialisation are the terms
that dominate many of nowadays sports leagues in different countries. Therefore
it is hardly surprising that numerous teams passed the one billion dollar mark
in terms of team value, like Manchester United ($2,23 billion), Real Madrid
($1,88 billion) or the New York Yankees ($1,85 billion). Clubs that participate
in the world’s most famous competitions generate annual incomes that are easily
comparable with medium and large-sized enterprises. One major source of
revenue, for nearly all professional sports clubs, is the profitable
commercialisation of their brand and their media presence through sponsorship
agreements with different kinds of companies.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-justify: inter-ideograph;">
<span lang="EN-GB">On the other side there are commercial
companies that seek, pressured through the increasing competition among many
markets, for effective ways to communicate and build their brands. Those
companies are often willing to pay high amounts of money in order to associate
their products and brands with a sport club, athlete or sport event.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-justify: inter-ideograph;">
<span lang="EN-GB">Despite this obvious potential for sport
clubs, many of the North American sport leagues have reservations towards
particular forms of sport sponsorships. However, sponsorships are common tools
in multiple areas like music, arts, culture in general and sports, whereby
sport sponsorships are nowadays highest developed scope of sponsorships with an
quota of between 50 and 70% of all sponsorships worldwide being associated with
the sport business in 2005. <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-justify: inter-ideograph;">
<span lang="EN-GB">But why is this form of sponsorships so
famous? The reasons for the rising and distinctive interest in sport
sponsorships are diverse. Circumstances like an increasing public interest in
sports, leading to high media coverage, as well as the growing amount of brands
that target sport-lifestyle consumers could be considered as major reasons. On
the other hand many companies seek for more effective marketing measures
compared to traditional and less effective advertisings.<o:p></o:p></span></div>
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<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjPstOxkSo54pzFex3gsBwSZnnvnUmzCUUUtV8aUqvrSAwY_FrKuIalqItaACWMbLnQTEA_CAmu7VSThW7qvcQuzzfPRzx_N7GuxAuQXxnIVC7hbZuNw-zga1yLQNEiJCyjrrKGFWpsyoQ/s1600/sponsorship-revenues.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjPstOxkSo54pzFex3gsBwSZnnvnUmzCUUUtV8aUqvrSAwY_FrKuIalqItaACWMbLnQTEA_CAmu7VSThW7qvcQuzzfPRzx_N7GuxAuQXxnIVC7hbZuNw-zga1yLQNEiJCyjrrKGFWpsyoQ/s1600/sponsorship-revenues.png" height="308" width="400" /></a></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-justify: inter-ideograph;">
<span lang="EN-GB"><o:p><br /></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-justify: inter-ideograph;">
<span lang="EN-GB"><u>Shirt Sponsorships</u><o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-justify: inter-ideograph;">
<span lang="EN-GB">Generally there are three established
patterns in shirt sponsorships. The logo-free approach is mainly used in the
North American major leagues and implies that there are no logos from sponsors
on the player’s shirts. The restrained approach comprises for instance most of
the European football leagues and is characterised through strict limitations
on quantity and size of logos. The last group is called the unrestrained
approach and gives nearly no restrictions about the number of logos. This
approach is mainly followed in European ice hockey. Shirt sponsorships are a
common sponsorship tool in most European top leagues. That is mainly because
companies pay high amounts of money for the rights to display their logos on the
shirts of the clubs. Because these deals are a valuable source of revenue and
shirt sponsorships are widely accepted among the European fan scene, in the
three big football leagues, Bundesliga, Premier League and La Liga (Liga BBVA),
mostly all participating teams have currently contracts with shirt sponsors, or
are actively searching for them. The latest record-breaking commitment was
announced between Manchester United and the car manufacturer Chevrolet at the
beginning of 2014. Chevrolet will replace the current shirt sponsor Aon from
the upcoming season for an amount of $79.85 million per annum.<o:p></o:p></span></div>
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<br /></div>
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<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg4fym9X4oh7lYs_UxhgsWDhG5s2GH20982Q1UkfiMrwH3YkM7hHeYZnKvIpgQGjrdio3kvEvBV4oIKiAb1w7GwldlkQbkW3-UaRyD4-x3K50Zg-T0b0F9poB659DqeHVS5Mj2az4Rr7-A/s1600/Untitled.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg4fym9X4oh7lYs_UxhgsWDhG5s2GH20982Q1UkfiMrwH3YkM7hHeYZnKvIpgQGjrdio3kvEvBV4oIKiAb1w7GwldlkQbkW3-UaRyD4-x3K50Zg-T0b0F9poB659DqeHVS5Mj2az4Rr7-A/s1600/Untitled.png" height="166" width="400" /></a></div>
<br />
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-justify: inter-ideograph;">
<span lang="EN-GB"><u>(Shirt) Sponsorships in the NBA</u><o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-justify: inter-ideograph;">
<span lang="EN-GB">Based on facts like a high media coverage
and a large public interest the NBA could be described as highly appealing and
therefore as an suitable candidate for shirt sponsorship agreements. However, a
comparison of the NBA with the European approach shows that the NBA seems to be
much more restricted in terms of sponsor’s visibility. This is mainly due to
the strong tradition of many sports in America as well as the fear of negative
responses from the public. On the other hand there is the fact that teams are
not invulnerable against financial issues like the Lockout situation of the NBA
in 2011 demonstrated. This fact together with the financial interests of
franchise owners and shareholders led to a first slightly rethinking of the NBA
officials in terms of shirt sponsorships. Undoubtedly the decision for or
against logos on players’ shirts is associated with pros and cons or in other
words several risks and challenges. If and in how far the NBA is willing to
take these risks in return for higher revenues, as well as the question whether
supporters and fans would react in a negative way has not been proofed or
decided yet. However that be, before making final decisions the NBA should
conduct comprehensive researches on that issue.<o:p></o:p></span></div>
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<span lang="EN-GB">The attached paper was submitted to Coventry
University in March 2014 as part of the assessment requirements. It gives an
overview about the theory of sponsorships in general including objectives and
risks and challenges for sponsors and sponsees and summarizes some useful
statistics about the value of sport sponsorships in Europe. Furthermore the
paper discusses the issue of shirt sponsorships in most North American major
leagues using the example of the NBA and compares the North American with the
European approach. Please feel free to download this work for future
references.<o:p></o:p></span></div>
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<span lang="EN-US" style="font-family: Times, Times New Roman, serif; mso-ansi-language: EN-US;"><a href="https://www.dropbox.com/s/ymdqevi0myaea7s/ShirtSponsorships-JonasRatajczak.pdf?dl=0" target="_blank">[DOWNLOAD] Shirt Sponsorships in North American Major Leagues</a></span></div>
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Jonas Ratajczakhttp://www.blogger.com/profile/07124303338659691285noreply@blogger.com0