Soccer Business Bits: TV in Chicago, Going Green, Donovan Sponsorship & More

April 15, 2010

Just a couple of quick hits today.  In Chicago, the Fire announced Comcast SportsNet Chicago as their official television broadcast partner for 2010 and Univision Radio as its official radio partner.  All locally broadcast television games will be in HD.  The arrangement includes a pre-game and post-game show.  There will also be English language and Spanish language broadcasts over the internet. Radio 1200 will have the games in Spanish over the air.

Keeping with the Fire, Chicago announced a “Fire Goes Green” campaign for its April 24th match against Chicago.  As part of the initiative, the Fire will plant 40 trees,  provide re-usable grocery bags to their fans, purchase energy credits to set-off carbon use at the game and distribute recycling bins around the stadium.  The efforts is part of the Fire’s Earth Day celebration and will also include special foot menus and other “green” distributions during the match.

Galaxy star Landon Donovan appears to have a new sponsorship partner.  Donovan joined Yankee captain Derek Jeter and Falcon QB at the Gillette EA Sports Champions of Gaming event in New York.  The effort was part of Gillette’s showcasing of its newest razor.

Elsewhere, AC Milan’s Summer tour now officially includes second division, and MLS expansion candidate, Montreal.  According to the team’s website, the Italian power will visit Olympic Stadium on June 2, for a friendly.  The game will be preceded by another match with a Serie A side, as Fiorentina will visit the Impact on May 23.  This is a bold move for the lower division club and certainly makes a statement about the team’s ambitions.  Would a match against AC Milan make the perfect stage to announce entry into MLS?


Interview with Rapids Senior Director of Marketing and Entertainment Kieran Cain

April 14, 2010

On Sunday afternoon, the Colorado Rapids will host their second game of the new season at Dick’s Sporting Goods Park.  In advance of that match, we caught up with Rapids Senior Director of Marketing and Entertainment Kieran Cain to talk about the Rapids’ marketing efforts, tickets sales and more.  Mr. Cain is a 13 year veteran of the Rapids organization and after a start in ticket sales, he has moved through roles in ticket sales, community relations and game entertainment before coming to his current position.

Thanks to Mr. Cain for answering some questions.  For our recent interview with Union VP of Marketing Cara Joftis, click here.  For our library of 2009 marketing interviews, click here.

Footibusiness.com:  How have the Rapids utilized online avenues such as social networking sites  to market the team?  Do you find that these efforts increase interest in the Rapids or impact attendance?

Kieran Cain:  We are very active….over the last three weeks we have had more growth online than any other MLS club in terms of how many friends we have added on face book….we have hired two new full time digital media personnel.  This year we have taken a very proactive approach in to online technology, maximizing it where we can.  Not just for the Rapids, but also for our stadium, for our youth academy teams and our adult leagues.

FB: The Rapids offer a number of benefits to season ticket holders including ticketless entry, “chalk talks”, designated parking and more.  What other advantages do season ticket holders get?  How do you promote these benefits to attract new season ticket holders?

KC: We’ve really ramped it up this year.  Everyone has seen the economy, we really wanted to bend over backwards for our season ticket holders, we’ve got a new set of benefits this season for full season ticket holders.   For instance, for the first time ever they have their own prices on the stadium menu which are significantly less than the average fan would pay.  They have their own parking lots.  We created a custom scarf for each season ticket holder. …In addition, there are several different experiences we offer on game day.

One of the big exciting things is that we really reward full season ticket holders with a kickback card.  For every dollar  they spend in the stadium they get an equal amount of points. They can redeem those for everything  from jerseys to dinner with the coach to a trip to London with the team.  They can turn them in this year, next year or let them build up.

Especially this year, there has been a big jump.  We have upgraded many partials to fulls which has been a big objective.   The only way they can get these is to be a full season ticket holder.

FB: How are your season ticket numbers as compared to prior seasons?

KC: We’re up.  We have surpassed last year.  Tickets are up.  Given the economy, this is good news. We have a long way to go.  We’d like to have a full house of season ticket holders. We are working on it every day.

 

FB: This is the 4th season in DSG Park and the stadium plays host to many events in addition to the Rapids.  How does DSG Park create opportunities to market the Rapids?  What does the team do to market those attending non-Rapids events at the stadium?

KC: We’ve got the building and facility year round.  We are out there doing handouts at the gates, running scoreboard messages.  There are high school games, rugby games.  The biggest concert in the State of Colorado takes place at DSG.  That is a great event to market.  There are lots of cool marketing opportunities.  Our stuff is everywhere, flyers, booths at the event. I control the scoreboard during the event to let people know what is going on and our street team is out there. In addition, we like to reward our fans because they can buy tickets to these events before the general public.  There is synergy both ways.

 

FB: Last year the Rapids ran a promotion in August where the first 2,000 kids through the gate got a free soccer ball.  Will the team run similar promotional events this year? How successful are these promotions in bringing fans to the stadium?  How do you balance attracting “hard-core” fans versus families?

KC: They are very successful…but the problem that we have is that they are successful, but only for certain people.  Some come for those promotions rather than focus on the game itself.  We’ve made a concerted effort to do away with the promotions on game day and make the focus on the game itself.  We are doing alot to appeal to the dedicated soccer fan.  You wont see many of those promotions this year.

 

One of the big things we did this year…the first MLS team to do it,  was to physically construct a family unfriendly section in our stadium.  The whole side of the stadium that we completely retrofitted to appeal to our hard core supporters.  It is something where we are encouraging adult only, drinking beer is allowed, having fun is allowed.  It is something we promote.  If you are a family, you can find where you want to sit.

FB: Although still in its infancy, Seattle is being trumpeted as a “model” franchise for purposes of marketing and fan outreach.  Are their any lessons that an established franchise like Colorado can take from Seattle’s efforts?

KC: Sure.  All the teams in the league have heard that success story.  There are certain elements to their success.  They set their club up right from the get go.  They are very involved in their supporters group.  They also have some of the benefits that we may not be directly benefiting from like a stadium directly downtown.  They have bars that you can walk to which is something we would kill for. I think we talk regularly with those guys.  We trade off going to each others games.  There are lessons to be learned, but on the other hand they ask us for advice as well.  It’s a two way street.  Everybody is still learning.

FB: Finally, with the season about to being, are there any other marketing/branding efforts (either inside or outside the stadium) that Rapids’ fans should be on the lookout for?

KC: Our objective this year is that it is the year of the soccer fan. If you are living in Denver, we are your gateway to the World’s most passionate activity, whether you are a youth player, an adult player…we are going to be a conduit to that. We’ve already done a few things leading up to the season, some grassroots marketing events….I think we are the first team to have our games over the air and in HD all season.  It is definitely trying to appeal to that soccer fan, if the club was appealing to the families in past years, they are going to see a difference this year.

 

Thanks to Mr. Cain for answering some questions.

 



Soccer Business Bits: Wizards Construction, AC Milan Returns & More

April 13, 2010

As progress continues on their new stadim, the Wizards offered an interesting opportunity to season ticket holders prior to Saturday’s home game.  Season ticket holders were invited to sign a steel beam part that was to be part of the new building.  According to Wizards President Robb Heineman,   “Construction on the stadium is moving at a rapid pace, and we’re pleased to be this far along this early in the process…inviting season ticket holders to this event is a great way to get fans connected to our club, our stadium and our vision for soccer in Kansas City.”   After the signing, the beam was placed into the structure.  This was a great way for the team to integrate its fan base into the new stadium.

In DC, Steve Goff is reporting on an AC Milan/DC United friendly in May.  These friendlies were an enormous success last year during the European pre-season, but the May game comes at the of a long campaign for AC Milan and prior to the World Cup.  Given that many of the Milan stars will not be at the match, it is quite possible that the match will draw a fairly weak crowd.  Moreover, there will not be a significant lead time for an ad campaign.  It will be interesting to monitor ticket sales for this game as the date nears.

Finally, in the wake of the successful home opener in Philly, we thought we would show you the status of PPL Park.


The Monday After: Week Three

April 12, 2010

Saturday was the biggest day in Major League Soccer history with 16 teams involved in 8 games for the first time.  The weather around the country was fairly good ensuring sizable crowds in most venues.  There were only two nationally televised games (ESPN did not have a game this week) making for a busy (and generally successful) weekend for Direct Kick and Matchday Live.  The reports from both media was largely positive.

The weekend started in Los Angeles, with 12,500 in attendance for Chivas’ 2-0 victory over previously unbeaten and unscored upon New York.  In Philly, approximately 35k saw the Union’s first ever win and home game.  The atmosphere was great and the game provided 90 minutes of attacking soccer.  Vice President Biden was omnipresent at the Linc, adding a level of celebrity and gravitas to the proceedings. Big numbers continued in Chicago, where more than 20k saw Chicago fall to San Jose.

In New England, 12,800 saw the Revs explode for 4 second half goals to get by winless TFC.  A sellout crowd of 10,200 were in Kansas City for the Wizards victory over the Rapids, while 16,500 were in Houston where the home team fell to the Galaxy.  Across the state, attendance saw a jump in Dallas where 10,500 were on hand for a 2-2 tie between the home team and Columbus.  Finally, solid crowd of almost 20k were at Rio Tinto for RSL’s 2-2 draw with Seattle.

The biggest single day in MLS history was also a box office success.  The numbers were especialy good given that neither Seattle nor New York hosted games.  The big numbers in Chicago and Salt Lake City were especially impressive.


MLS Adds Incentives for Developing Players

April 9, 2010

In yet another change in roster rules, MLS announced this evening that it would be increasing team rosters to 26 as part of its initiative in incentivize teams to develop and retain home grown players.  These players will be signed to Generation Adidas contracts meeting that their salaries will not count against the salary cap.   According to the press release, “players registered for at least 12 months in an MLS youth program become eligible to sign a professional contract with that team without entering the MLS SuperDraft. These are known as Home Grown Players, and teams may sign up to four such players per year.”

A further part of the new development is a significant change in the transfer benefits for teams that sell home grown players.  Clubs now retain 3/4 of transfer fees for home grown players while the maximum amount of money that becomes an allocation from a transfer is increased to $650,000 (from $500,000).  This change is obviously connected to the new Designated Player rules that permit teams to use allocation money to pay down player salaries.  This change both incentivizes teams to develop players in their youth programs and to retain the services of Designated Players.

Teams such as New York, Houston and DC that have worked to develop players in their youth systems will definitely benefit from the new rules.  Moreover, these rules should encourage young players to look to MLS because teams will have solid financial reasons to sell young players on to bigger leagues.  One caveat; the league has reduced the percentage of transfer fees that get paid to teams (as opposed to the league) for players who have less than three years of MLS service.

We think this is a great move by MLS.  Well run youth programs are essential to improving the product on the field.  At the same time, providing more money to teams from transfers will assist in the signing of Designated Players which will improve the product on the field.  Thus, MLS has found a system that encourages better soccer on both ends.  Finally, by adding additional roster spots, teams can carry more players and provide them with an opportunity to train at a high level.  The next step will be the addition of a reserve team.


Soccer Business Bits: Salary Comparison, WPS Attendance & More

April 8, 2010

In an ESPN.com article about UCONN star Maya Moore, LZ Granderson provides some interesting detail about salaries in the WNBA.  Because fans often look at the WNBA for purposes of comparing MLS TV and attendance, we thought the salary numbers would also provide an interesting point of analysis.  Here is the passage from Granderson’s article: “The salary range for WNBA rookies drafted 1-4 is $44,064 in the first year and taps out at $56,182 in the fourth year of their contracts.  The max any WNBA player can earn is $95,000.”  From this sentence, it is apparent that WNBA salaries are well below those in Major League soccer where the minimum salary under the new CBA is $40k and a healthy percentage of players make in excess of $100k per year.  Moreover, the $95k cap on salaries is well below the higher end salaries in MLS.

Keeping with women’s sports, we pulled some attendance nuggets from WPS Commissioner Tonya Antonucci’s media conference call.   According to her statement, season ticket sales for returning teams are up 20% and local sponsorships are up 150%.  WPS averaged over 4,600 fans per game in 2009 and the league is shooting for a a 5-10 % increase in 2010. Other bits from the call include an announcement about a two team expansion in 2011 and discussion of the new stadium in the Atlanta area.

Finally, a quick note on the stadium effort in Houston.  The City Council approved the deal for the stadium that will be shared between the Dynamo and Texas Southern football.  The county will vote to approve the arrangement on Tuesday.  In addition to the $15 million dollar city contribution to the land, the team will foot the bill for the additional cost of stadium construction.  Total cost of the projected 21k seat stadium is expected to be about $80 million with the Dynamo ownership (primarily AEG and Golden Boy Promotions) funding about $60 million.  The rest of the funds could come from tax credits,  the TIRZ money and from some of the stiumulus money floating around.  The TIRZ program will also provide the property for the stadium.   Another round of voting is required to move the project forward.


Soccer Business Bits: Philly TV News, WPS Ad Campgain & More

April 7, 2010

The Union announced the final details of its television package, enlisting ESPN color commentator and former MLS midfielder Kyle Martino as its color commentator.  Martino will man the booth alongside longtime soccer voice JP Dellacamera.  Martino does a solid job and this pairing should give the Union one of the top broadcast booths in the league.  The Club also announced that all non-nationally televised games will be on WPVI (abc) and its sister station.  All games will be broadcast in HD.  Broadcasts will include a 30 minute pre-game show and occassional post game shows.

In WPS news, the league has unveiled its 2010 ad campaign “Defend your Turf”.  The ads will feature image projections on the sides of buildings in select WPS cities (see above for an example) and features some of WPS’ biggest stars.  The innovative campaign will invite fans to text messages to a number that will then transpose select messages directly onto the projections.  The images will be in HD.   The effort is part of WPS’ second season marketing campaign that will include a “guerrilla marketing” focus.  The WPS season opens this weekend.

For its upcoming Saturday afternoon game against New York, Chivas USA is promoting its first Family Pack of the season.  The package offers a buy one adult ticket get a child ticket free.  The kids pack is offered for 6 games during the course of the season and is available for all but the best possible seats.  Regular tickets start at $15 for General Admissions seats.


Footiebusiness Vault: Interview with Union Marketing VP Cara Joftis

April 6, 2010

We are now just days away from the Philadelphia Union’s home opener, so we thought it a good time to revisit our interview with Philadelphia Union Marketing VP Cara Joftis.  With a new stadium on the way and an excited base of fans, Philly is set to become American soccer’s latest success story.  As we did last year, we hope to bring you a series of interviews with MLS marketing professionals to provide insight into how teams seek to promote their brand. Below is our January interview with Ms. Joftis

Cara Joftis has been the  VP of Marketing for the Union since September, 2009.  Prior to joining the club, she was Vice President of Sponsorships and Brand Promotions at Citizens Bank for more than six years.  She managed brand presence and messaging  for Citizens Bank properties in 13 states, including Citizens Bank Park.   Thanks for Ms. Joftis for taking a few minutes to discuss the Union’s efforts to market the team in a tough economic climate in a city full of competition for attention from fans and media.

Footiebusiness.com  The Union is starting play in a fairly rough economic climate.  What impact does the economy have on the message of your marketing campaign?  Do you have to tailor your methods of marketing because of the economy?

Cara Joftis:  We try to be aware of all issues facing our fans.  We haven’t had to adjust our marketing campaign at all.  Our tickets are the most economically priced out of the Philadelphia major league sports teams.  Our marketing methods remain the same, with a focus on the passion of the game and of our fans.

FB:  The Union are moving into a brand new facility during the season.  Yet the team is starting the season at the Linc.  How does the team balance efforts to market the new stadium with the reality that the team will play a number of games elsewhere?

CJ: There really hasn’t been a need for any balance.  Again, the focus is on the passion of the game and the fans and that is relevant in either of the buildings.

FB: How does the Union plan to utilize online avenues such as social networking sites, SUM’s online ad network, etc… to market the team?  What is the goal of such online marketing efforts?

CJ: Online marketing efforts have the same goals as our traditional marketing – drive awareness and ticket purchases.  Facebook and Twitter are important communication channels for us in interacting with our fans.

FB: Philadelphia is a sports mad city with strong passions for teams that have been passed down through generations.  What can the Union do to penetrate those mainstream sports fans?  Should that be a goal of marketing efforts?  Is it important to gain exposure on mainstream sports outlets like WIP?

CJ: A recent Wharton study showed that approximately 1.5million people in Philadelphia DMA identify themselves as avid soccer fans.  There is an extremely strong fan base for soccer.  We talk to those people and do not go after people who are not interested in soccer.  Approximately 80% of our founding members do not have season tickets to any other professional sports team in town.

FB: What lessons can the Union take from the marketing success of Seattle and Toronto?  Similarly, what lessons can the Union take from some of the marketing mis-steps of the early years in the League?

CJ: Seattle and Toronto have done a terrific job of staying true to the sport and authentic to their fans.  That is definitely something that we also strive for.

Thanks again to Ms. Joftis for responding to our questions.


Monday After: Week Two

April 4, 2010

Light docket in MLS this weekend with only 5 games Th-Sa.  Before we get to those matches, a couple of other quick business points.  First, we gave MatchDay live another chance, but couldn’t see any games in real time.  The only non-nationally televised game was the Revs/United match which was blacked out in the Hartford area (also blacked out on Direct Kick). Thus, we couldn’t try the service this weekend.  However, kudos to MLS for having readily available live chat support during the broadcast.  This made it quite easy to cancel our subscription.

While the game was shown on Comcast Sports Net New England (a channel available in CT), in the Hartford area, CSN gets usurped by Knicks/Rangers games on the Madison Square Garden network. Thus, even though the “info” screen reads MLS: Revolution v. DC United, Comcast switches the feed to the MSG feed.  Thus, no Revs (except on the HD feed).

Attendance wise, it was solid week around the league.  The Thursday night doubleheader started with 18k in Houston for the Dynamo’s 2-1 victory over RSL.  Later than night, just under 20k saw Chivas fall to the Galaxy at the Home Depot Center.  Both games were on ESPN2.  The weekend matches started in Commerce City, CO where 11,600 watched the Rapids and Fire play to a 2-2 draw.  On Saturday night, an impressive 20,600 were on hand for the Revs suprising victory in DC.  Finally, a ho-hum 36k saw a the thrilling Red Bulls/Sounders game.  The DC number was especially impressive and was aided by good weather and the addition of an El Salvadoran midfielder.

Next week will likely be a tougher week for the average, but the openers in Chicago and Philly will hopefully draw well.


Soccer Business Bits: DP News, Website Issues Detailed & More

April 2, 2010

Without question, the big soccer business news of the day was the announcement that MLS was drastically revising its Designated Player rule.  Each team is now entitled to retain the services of 2 Designated Players and is afford the opportunity to purchase the right to a third DP spot by paying $250,000 into the league’s coffers. This money will be equally distributed between the teams.  Each designated player will count for $335,000 under the cap and teams can no longer trade for additional DP spots.

What this means for the business of the league is unclear.  Teams that want to spend now have the opportunity to bring additional high priced talent into the league.  With a salary cap hovering near $2.5 million teams opting for three DP’s will have to fill their rest of the rosters using about $1.5 million and a combination of allocation funds, Generation Adidas players and other mechanisms.  The real question is whether teams like the Revs and San Jose will now take the plunge into the DP market.

We have written about the ongoing issues with the new MLS website.  MLS is definitely working to improve the issues and this weekend will mark an important opportunity to fix is MatchDay Live service.  For an in depth look at the web site issues, we recommend this excellent and detailed piece from the Fake Sigi.

Finally, a rare broadcast treat from ESPN with a double-header from the World Wide Leader. ESPN mixed up the broadcast teams a bit with Adrian Healy paired with John Harkes in the first game.  Commercial presenters included Rent-A-Center, 1800 Tequilla, VW and Taco Bell.


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