Footiebusiness

Drew Williams is a Junior at Maryville University in St. Louis.   As part of his Sports Business Management major, Drew has been following Footiebusiness for a class project.  As part of that project, he prepared a blog piece about the Seattle Sounders.  His post is below.  Drew is also on the Maryville soccer team.

As the 2010 MLS season is coming to an end, the MLS community will begin to set their sights on the two new expansion cities for 2011: Vancouver and Portland. For the MLS to continue to be successful, it is vital that these start-up franchises are very successful and continue to bring new supporters into the league. In order to be successful the expansion teams must capitalize on good ownership and a great marketing plan. There is no better way to discuss this issue than to talk about one of the greatest success stories with an expansion team in possibly the history of sports, the Seattle Sounders.
In 2007 Major League Soccer announced that a 15th team would enter the league for the upcoming season, and that team was the Seattle Sounders. The team began play in 2008, and in their first two seasons they sold out every home match, set MLS records for attendance, and sold the most season tickets in the league. By 2010 the Sounders were announced the Professional Sports Team of the Year, winning the award against professional teams such as the New Orleans Saints, Cleveland Cavaliers and Philadelphia Phillies. This award, presented by Street & Smith’s SportsBusiness Journal and Sports Business Daily, is awarded to a team who demonstrated excellence and outstanding achievement in the sports industry the previous year. With the Sounders’ unprecedented 15 regular season sellouts, 22,000 season ticket holders, and an average crowd close to 31,000, they emerged as the ideal model franchise for Major League Soccer.
This success began at the hands of the Seattle Sounders owners- Joe Roth (Hollywood Executive), Adrian Hanauer (Owned Seattle’s successful USL team before joining the MLS), Drew Carey (a TV actor and comedian), and Paul Allen (billionaire owner of Seattle’s two other professional sports teams). The combination of each of the owner’s diverse backgrounds brought differentiation to the management, which had proved very successful. The first thing the management did was land a big name sponsor, Microsoft, who signed a four million dollar contract for five years. This deal was highlighted by the “Xbox LIVE” logo that is seen on the front of both, their home and away jerseys. The Seattle Sounders took a very strategic approach in finding this sponsor, as the Xbox brand fits in perfectly with the club’s attempt to attract a young and diverse audience. The energy surrounding “Xbox LIVE” is also very strong in American culture, from its reputation for bringing people together to compete against one another on an entertainment level.
Additional success of the Seattle Sounders was found in their strong marketing presence throughout the city of Seattle. The team was more than willing to spend big bucks to get the Seattle Sounders name out to the public.

On a national level, the Sounders advertised on the home page of nationally renowned websites such as TIME, USA Today and ESPN. On a more local level, management painted the city vibrant green and blue- the official colors of the Sounders. Even the Space Needle had the vibrant green and blue colors cast upon it from time to time. Anywhere one was in Seattle, they could be sure to see a huge billboard, or even an ad for the team on the side of a public transportation unit. The management had also bought the front page of the sports section in Seattle’s newspaper as an advertisement for upcoming games. On top of all this, the club gave out thousands of free scarves’ to many of their fans and encouraged them to wear and hang the scarves around the city of Seattle.
With all of these great marketing strategies flooding Seattle as the team emerged, it is no wonder that they have become the ideal franchise for the MLS.

Over the last couple of days, multiple outlets have reported on the emerging details of Major League Soccer’s inagural re-entry drafts.  MLS’ official website has produced its own press release on the new procedure and identified December 8 and December 15 as the two draft dates. The new drafts provide players two opportunties to be selected by MLS teams at defined salary levels and/or for purposes of exclusive negotiation rights.  If a player fails to secure a team through either draft, the player is then entitled to negotiate with any team in the league.

The new system represents an impressively crafted compromise between the Players Union and the league.  Veteran players now have a number of options in the event their existing team fails to make a reasonable offer.  At the same time, fans now have additional exciting events in the offseason.  The league has cleverly spread the expansion draft, re-entry draft and super draft over three months, giving fans repeated events to debate and consider as they approach and pass.

In Vancouver, the Whitecaps have announced their new website and established season ticket prices for 2011.  By MLS standards, the tickets appear reasonably expensive even factoring in current exchange rates.  Interestingly, the cheapest tickets are not behind the goals, but in the corners.  The team is also hyping its 50 suites, which have been refurbished in advance of the upcoming season.

Finally, the USWNT has started a pre-sale for its World Cup home and home qualifier on November 27.  The match will pit the US Women against Italy.  General ticket sales start on November 12 and tickets range from $10-$30.  The match will be at Toyota Park.

Yesterday we wrote about the Rapids’ efforts to sell tickets for their upcoming playoff game.  Since that post, we have received feedback from a number of readers about the lack of aggressive marketing in the Denver area in advance of the Saturday match.  As many of our readers know, we have had ongoing series of interviews with MLS marketers and their efforts to sell their teams and the league.  As we are traveling, we thought it worth revisiting an interview from April, when we caught up with fomer 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 going to the Rapids.

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.

With Colorado’s upset victory over Columbus, the Rapids have one week to sell tickets to the “Eastern” Conference Final.  After selling more than 11k tickets in their playoff opener with less than five days notice, the Rapids face the challenge of again selling tickets on a short turn around.  Interestingly, the team is not aggressively pushing any promotional offerings in advance of the game, but through their website, there are two deals being offered to attract fans.

First, the team is offering a Family Four pack that includes 4 tickets, 4 pizzas and 4 sodas for $79.  The team is also offering a “Lads Night” that includes 2 tickets, 2 beers and 2 beanies for $49.  To locate these deals, a fan must click through the website to the ticket page.  The front page of the website contains no reference to the offers.

A quick look at the Denver Post shows limited coverage of the Rapids and no apparent ads promoting the home playoff game.  Given the challenges the Rapids have faced in selling tickets, it is stunning that the Rapids are not more aggressively pursuing ticket sales through some of the standard means.  With a weather forecast predicting cold temperatures and snow, the odds are stacked against a strong crowd.  There are rumors that the team is offering free tickets to season ticket holders who have re-upped for 2011.

If you know of any ads or promotional efforts for the game, please let us know.

Another exciting weekend of playoff action in Major League Soccer. While some soccer fans rail against the injustice of lower seeded teams advancing, there is little debate that the matches have been exciting.  Playoffs are an American sports staple, and upsets are ingrained in the American sports culture.  The games have made for great theater and have been an excellent advertisement for the playoffs. A reported number just under 400k watched the Sunday Galaxy/Sounders match on Halloween despite competition from both the World Series and football.

Attendance in the second leg varied from the more than 20k at Red Bull Arena on a cold and chilly night to a really disappointing 10k in Columbus.  RSL had a great crowd for their loss and the Los Angeles crowd was reasonably good for a Sunday Night.  However attendance for the conference finals is very much in doubt.

ESPN2 has picked up the must win USWNT soccer game scheduled for Monday night against Costa Rica.  The surprise loss to Mexico left the team in a must win match on Monday or there will be no World Cup for the squad.   Even with a win, the US Women would still need to win a home and home against Italy to advance to the World Cup.  Given the struggles of the WPS, if the national team fails to qualify for the World Cup, womens soccer risks falling well off the radar of American sports fans and potential advertisers.

In a reprise of Beckham’s first season in MLS, the Galaxy have scheduled an offseason tour to Australia as a way to promote the brand overseas.  The Galaxy’s match with Newcastle United Jets FC will be sponsored by Australian airline Qantas.  The sponsorship is reportedly worth $300,000.  The match will be televised in the United States and the Galaxy will fly home free in business class.  As part of the deal, Beckham must play 55 minutes of the match.

Elsewhere, Steve McManaman will rejoin ESPN (and started in the Red Bulls/Earthquakes pregame) as a studio analyst.  McManaman logged significant minutes on the ESPN/ABC World Cup broadcasts.  His new role will include EPL, USMNT and MLS matches.  At a minimum, his contract will run through World Cup 2014.  McManaman is not the first World Cup ESPN talent to join ESPN’s domestic broadcasts.  Last month the network announced that play by play talent Ian Darke would become one of ESPN’s primary soccer voices.

DC United has announced a new official sponsor with nutritional supplement and skin care company Eiro Research joining the fold.  SportsPro believes the deal is worth approximately $200k.   The company will provide some of its products to United as part of the deal.  Eiro joins an array of multi-level marketing companies with connections to MLS.  Amway and Herbalife are two prominent examples of MLS companies with MLS relationships.

As we have on occassion, we thought it worth taking a look at how the mainstream media is covering soccer in the United States.  We’ll start with Sports Illustrated, where last week’s edition of the magazine carried a story about Thierry Henry’s impact on the Red Bulls and MLS.  The story focuses on his transition to life in the Big Apple and Henry echoes the sentiment of a number of previous imports about the value of relative aynonymity.

The Boston Globe reported on the retirement of Taylor Twellman.  The Revs all time leading goal scorer was forced out of soccer due to head injuries and in losing Twellman, the team loses not just a great player, but the longtime face of the franchise.  Twellman was the most recognizable Rev, and was probably only player on the team with face and name recognition to mainstram sports fans on Boston.

The Salt Lake Tribune is continuing its excellent coverage of RSL’s playoff run with a series of articles this week.  RSL enjoys more in depth coverage than most MLS franchises and the Trib typically offers both news stories and commentary during the course of the RSL.

Similarly, the Seattle Times has continued its outstanding coverage of the Sounders.

In May we wrote the following:  “Major League Soccer announced the formation of the MLS National Sales Center to assist MLS teams with ticket sales and staffing.  The Center will offer a 45 day program that will graduate ticket sales professionals to employment with individual MLS teams.  The students will have the opportunity to craft sales strategies and get real life sales experience. “Ticket sales are the lifeblood of any professional sports team, and this new initiative will provide our clubs with a deeper and more talented pool of ticket sales professionals,” said MLS President Mark Abbott. “We believe the combination of classroom instruction and real-life sales experience will prepare these young men and women with the skills necessary to make an immediate impact when they join an MLS club.””

As partof that ticket sales effort, SBJ is reporting that MLS staffs 7 full time employees in its club services section.  The department focuses on ticket sales strategies for the various MLS franchises while providing business and sponsorship advice to individual clubs.  According to SBJ, the teams freely share information on sales and marketing strategy.

Elsewhere, TSN announced that TSN2 will carry MLS Cup 2010 live across Canada.  TSN2 is typically only available on digital cable and satellite television.  ESPN is a 20% partner in TSN2 and the network typically focuses on sports programming.

Finally, Oregon Live writes about the details of Merritt Paulson’s deal with a local sports clinic to fund a portion of rent payments for PGE Park.  Paulson will have the opportunity to make back half of his rent payments through the deal with the clinic which was carved out of his deal with the City.

It has been a roller coaster ride during the first two years of the most recent incarnation of Womens professional soccer in the United States.  There have been significant “ups” like the signing of Marta, the building of a new stadium in Georgia and the significant partnership contributions from Puma, Amway and others.  There have also been some extreme disappointments, including the folding of two franchises, the shuttering of much of the administrative departments, stagnant attendance and more.

Yet despite the bumpy road, the recent announcement of a new expansion franchise of Western New York and the completion of a second successful campaign seemed to suggest that WPS was moving along slowly but comfortably in its American sports niche.

However, over the last couple of days there have been rumblings that two more WPS franchises are close to folding after missing their October payment to the league.  The two teams, Washington and defending champion FC Gold Pride include prominent players (including Marta).  The reports are conflicting, but a press release from the Freedom somewhat clarified matters by indicating that no announcement is immediate and that the team is actively seeking investors.

In our interviews with professional female soccer players, there has been a significant amount of hope vested in WPS and it would be unforunate if the league crashed after year two.  WPS set modest attendance goals and has been close to meeting those in both years.  The stadium construction and continuing expansion suggest that there is a future in Women’s soccer in the USA.  However, without a relationship with MLS (see WNBA/NBA), WPS franchises are left to go it alone, often without significant advertising support.

We’ll conclude with quote from our Summer interview with USWT defender Ali Krieger, who plays professionally in Germany but hopes to return to the US.

Krieger indicated that Womens’ Soccer gets “way more advertising” in Germany…”billboards and things are always up around the cities, so I think there is more coverage there”.   She continued, “I think it is a huge deal, because the more people that come out and get interested in the game they are going to tell their friends and family to come out and enjoy the game.   There are different age groups that you have to target and I don’t know if we are targeting every one of them. We need more advertising and commercials to get different age groups out…right now we are targeting the younger age groups and their parents…In Germany you have older guys and their dogs coming to the game as well.”