“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
Abstract Taking into consideration the main differences of the Sports Business Industry in the United States and Europe and analyzing both business models and structures of North American and Spanish Basketball’s professional leagues, this study aims to look for the best marketing practices and tools that are used in America in order to provide some feasible solutions that the Club Joventut de Badalona’s professional basketball club could apply successfully in their challenge of target and enhance fans to give more support the team on their delicate economical and institutional situation defined by a study realized by the combination of quantitative and qualitative data gathered from the actors that are involved around the club’s environment.
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 1
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
Contents
1. Acknowledgments 4 2. List of Tables and Figures 5 3. Executive Summary 7 4. Introduction 8 5. Literary review 8 5. 1 Overview and comparison of sports organizations in North America and Europe 8 5.2 North American and Spanish Basketball’s professional leagues business model and structures. 11 5.2.1 League Structure, Competition format and Barriers to entry 12 5.2.2 Competitiveness 13 5.2.2.1 The Salary Cap 13 5.2.2.2 Revenue Sharing 14 5.2.2.3 The NBA Draft 15 5.2.3 Young players and Basketball Development: The NCAA vs Junior teams 16 5.2.4 Revenue Source 17 5.2.5 Interaction with Fans 19 5.2.5.1 Initiatives and Events 19 5.2.5.2 Digitalization and Social Media 20 5.2.6 Summary Table 21 5.3 Marketing Sports in America: What Europe can learn 22 5.3.1 Defining Sports Marketing and its aspect 23 5.3.2 Procedures and successful Marketing Practices implemented in America 25 5.3.2.1 Case: Entering in a new market, the Brooklyn Nets 26
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 2
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
6. Methodology 28 6.1 Interview with Daniel Llurba, Marketing director of Club Joventut de Badalona 28 6.2 Joventut de Badalona fans survey 28 7. Case Study: Club Joventut de Badalona 30 7.1 Analysis of fans survey’s results 33 7.1.1 Demographics Questions 33 7.1.2 Habits 34 7.1.3 Satisfaction 35 7.1.4 Suggestion – Open questions 36 7.2 Challenges for the future 37 8. Recommendations based in the American Model, Suggestions and Proposal of Case’ Solutions 38 9. Conclusion 43 10. References 46 11. Appendix 49
Appendix 1: Other tables used during the study 49 Appendix 2: Example of Marketing Plans of NBA franchises and College teams 50 Appendix 3: Interview to Daniel Llurba, Marketing and communication responsable of Club Joventut de Badalona. (Full list of questions) 53 Appendix 4: Brief history of Club Joventut de Badalona 55 Appendix 5: All results of the survey 58
WORD COUNT: 11743
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 3
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
1. Acknowledgments
First of all, I would like to thank all the professors and staff of BES La Salle that each one, had contribute on the a great education I could got here during these past four years and that I will remember for the rest of my life, the gave me the opportunity to spend such a great time in my exchange program at the Christian Brothers University in Memphis and the opportunity to live such a great experience by participating in the National Model United Nations in New York City on March 2013. I can’t imagine any other university where I could have fun as much as I did here in La Salle. I would like to give a special mention to first, Isabel Oller, which suggest me to accept the challenge to make my studies in English that I am very proud to be abled to accomplish it. Here in La Salle, not only I learned a career but also I learned a new language. Also mention Olga, that has been patient with us, all these years and made much more easier our days in La Salle.
The thesis-writing process would be much more difficult without my advisor, Chris Kennett, which suggest me how to focus and address the topic and the whole work and gave me all the facilities to find out all the data I was needed during all the process. At the beginning I was little bit afraid because I didn’t know how to make my thesis, but you and Kerem, help me to settle down and be confidence on the work I was doing.
My work would not be possible without the collaboration and provision of Daniel Llurba, Marketing and Communication director of Club Joventut de Badalona, who gave me a little bit of his time to receive me to interview him without no pressure and to give me all facilities to be able to respond the surveys to the fans at the game. – Gràcies i força Penya!
To my friends, Ferran Pellicer, Marc Valera and Marc Giné, that threatened not to let me to go on vacation with them to L’Escala, if I did not work hard on my thesis during summer. They gave me an effective reason to keep striving and working.
And the last, but probably the most important thank goes to my family, which made all the efforts they could to ensure and provide me such a great education I could receive here in La Salle.
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 4
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
2. List of tables and Graphics
List of Graphics Graphic 1: The Organizational of Sport in Europe: The Pyramid Model” 10 Graphic 2. “Richest Sport leagues worldwide” (2011) Estimated Revenues US$ (bn)) 11 Graph 3. Joventut de Badalona’s funding source 30
Graph 4: Age Distribution 33
Graph 5: Relation with the club 33
Graph 6: Frequency of attendance 34
Graph 7: Who do fans go at games with 35 Graph 8: Methods to attend games 35 List of Tables Table 1: Comparison Economical Results NBA and ACB (2010-2011) 17 Table 2: ACB Games attendance (2012) 49 Table 3: Actual Media Contracts NBA 49 Table 4. Social Media Stats Comparison - Leagues (June 2013) 20 Table 5. Social Media Stats Comparison – Last Champion teams each league (September 2013) 21 Table 6: Similarities and main Differences between the ACB and the NBA 21 Table 7: Segmentation of Sports’ Consumers 25 Table 8: Los Angeles Clippers Marketing Plan for Season 2012-2013 50 Table 9: University of Memphis Tigers Basketball, Marketing plan for season 2002-2003 50 Table 10: LOYOLA University, Marketing plan for 2004-2005 campaign 51 Table 11: University of Seattle, Marketing plan for 2009 – 2010 season 51 Table 12: Brooklyn Nets’ Experiences 51
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 5
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
Table 13: Satisfaction grades (Percentage of answers/total responded) 36 Table 14: Examples of thematic days Joventut de Badalona 40 Table 15: Sharing experience through Social Media: 42
Table 16: ACB and NBA Strong and Weak points’ comparison 43
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 6
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
3. Executive Summary
Since the beginning of professionalization of sport, America and Europe have followed two different models in the way of structuring and managing sport. Recently, and by the consequences of the global economical crisis that impacted on our society, the deficiencies and weaknesses that presented both models accentuated and put at risk the stability and efficiency of the models. A new trend of reinventing the sports business model is generating lots of possibilities but relatively little research has been conducted on the characteristics of the US and European models. Through the study of the main aspects of North American and European Sports business models and structures, and by focusing on both main basketball leagues, the NBA and the Spanish’s ACB, this research aims to identify a new, sustainable sport business model for professional basketball.
The second part of the study, a practical case study of Club Joventut de Badalona will be presented. Following the same structure of the first part of the study, an analysis of the main factors and aspects, involving the marketing of sport and by exposing a set of practices that different North American basketball teams conducted, a marketing plan proposal will be defined and explained in order to solve the challenges found by researching on the club’s current crisis situation. This research is informed by an interview of the marketing director of the club, Mr Daniel Llurba, and by the elaboration, and posterior results analysis, of a survey administered to the fans while they were attending to a basketball game in the Palau Olímpic de Badalona, home court of the basketball club.
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 7
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
4. Introduction
The study will firstly seek to address the main differences between how sport is organized in North American and Europe, identifying strengths and weaknesses in both models. Further, the review will focus on the National Basketball Association (NBA) and Asociación de Clubs de Baloncesto (ACB), responsible for the organization of the Spanish championship. The reason why basketball is used as a vehicle to compare both systems is because it is the only sport that has a consolidated presence on both side of the Atlantic.
In dealing with the role of marketing in the sports industry and analyzing the practices and strategies implemented by North American sports entities, the study will provide recommendations and a proposed solution for the Club Joventut de Badalona’s case.
5. Literature Review
The literature review aims to identify the main differences between the organization of sport in North America and Europe. Further, the review will focus on the National Basketball Association (NBA) and Asociación de Clubs de Baloncesto (ACB). The last part of the review will treat the main marketing aspects when sport is sold and analyses different strategies of North American sports entities, to identify which best practices could be applied to the Spanish basketball industry and in a particular the case study that forms the basis of the analysis.
5.1 Overview and comparison of sports organizations in North America and Europe
Accoding to Fort, “It's safe to say that the work comparing European and North American sports economics concentrates on differences, real and perceived. The argument goes that fans are different, organizations are different, and team objectives are different. The point here, through force of argument, example, and a little data, is that the similarities largely outweighs what few differences there really are between European and North American sports markets and outcomes.” (Fort, R., 2000: 451)
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 8
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
In this section of the literature review the main similarities and differences between the US and European sports industry models will be explained (Fort 2000; Nafziguer, 2008; van Bottenburg 2010).
The first thing that springs to mind for many people when comparing sports in North America and Europe is the core of the industry: the game. According to a poll (Harris Interactive, 2012) Football or “American football”, including college football, was America’s favorite sport, (among 45% of respondents). Next was baseball, 16%; basketball, 10%, Auto Racing 11% and Ice Hockey 5%. Similar trends can be seen in Europe where a single sport dominates the continent. It must be said that each country in Europe has its own most popular and followed sport, but in most of them, football (soccer as it’s know in the United States), leads the ranking over motorsports, tennis, cycling and basketball. Probably the main difference we can find between the two models is in the fundamental ways in which sports are structured.
In America, “the organization of sport became included in the extracurricular programs of the educational institutions, whereas clubs and school remained separated in most European countries” (van Bottengurg 2010: 253). Sport in the United States was used as mechanisms of social cohesion among different clusters that were starting to populate public schools without any discrimination of races, religion and genders and lately “became representatives of identity and culture of their respective regions, states, cities, towns” (Markivits and Hellerman 2001, van Bottengurg 2010).
Why voluntary clubs have become the principle organization to practice sport in Europe and schools and colleges have become essential in the sport structure in America, is still an intriguing question that experts on the matter are still trying to find an answer to.
When it is time of to compete, Europe and North America are not very different. Clubs or schools/universities, leagues are set yearly to face different teams, mostly around the same area, to find out who is the best, and those will compete against other winners from other regions to compete for the national championship, in America, or for the best team in the continent in Europe. We can agree on this similarity in the amateur level, but it all changes when we want to compare both professional levels.
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 9
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
The organization of sport in Europe traditionally follows a national federation pyramid model, which only the top (usually one per country) are linked together in a European Federation. Graphic 1.
Graphic 1: The Organizational of Sport in Europe: The Pyramid Model” Font: European Commission “The European Model of Sport” (1999)
At the bottom we find the clubs, as previously said, offer the possibility of engaging sport for all. The clubs are linked together towards the region and national federations that normally, are the ones responsible to rule and organize the different national leagues and competitions. This structure of different levels allows the teams relegate and promote their position by wining and qualifying from the different competitions taken on all levels. So, a basketball club can play at a regional level and become national or even international champion thanks to open league model that is instituted in the majority of sports practiced in Europe. .
Professional sports in America are ruled by a system of closed leagues that are comprised by a stipulated number of clubs, known as franchises, owned by particulars and ruled as a business that have the right to decide for including or not, any other team on the leagues. Known as the “Big Four”, the National Basketball Association (NBA), the National Hockey League (NHL), the Major League Baseball (MLB) and the National Football Association (NFL) the sports that are managed using this model in
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 10
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
United States and became the richest professional clubs competitions worldwide along with the English Premier League of Football in England. Graphic 2.
Graphic 2. “Richest Sport leagues worldwide” (2011) Estimated Revenues NHL 3,3 US$ (bn)) EPL 3,6 Font: Cork Gaines, Business Insider “CHART OF THE DAY: NFL Players And Owners Are NBA 5 Fighting Over The Biggest Pie In Sports” MLB 7 March 22, 2011
NFL 11
Nafziguer stated “the professional leagues operate as joint ventures among the constituent teams. While competing with each other on the field, teams work together off the field in order to promote their mutual economic interests.” (2008:96) In America, a sport club is managed and ruled as any other of business in its own industry. "The most important difference between the USA and Europe is that American Clubs are business-type companies seeking to make profits, whereas the only aim of most European clubs so far is to be successful on the field." (Késenne and Jeanrenaud, 1999; Dietl, Feanck, Lang, Rathkle, 2011:12).
5.2 North American and Spanish Basketball’s professional leagues business model and structures.
In this second section a comparison will be made between the different business models that exist in the North American and European models. Emphasis will be placed on the Spanish model, and the world’s basketball major league, the NBA, introducing the role that the National Collegiate Athletics Association (NCAA) plays in the North American model. The objective of the section is to highlight the main differences between the models and identify relative strengths and weaknesses.
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 11
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
5.2.1 League Structure, Competition Format and Barriers to Entry
The NBA is comprised of 30 franchises spread all over the country divided in two conferences, East and West, which the best 8 teams after the regular season (every team plays 82 games) battle in a play-off system (best of 7 games advances) to reach “the Finals” and fight for the National Championship in the 10th biggest sports events (Forbes, 2012) where 215 countries have coverage of the series. As there is no promotion and relegation on franchise model, the decision to get in the league is taken by all the members and league commissioner that requests a full detailed analysis of the region’s market, potential revenues… For the ACB league, a total of 18 teams plays each other twice each season and get positioned on the standing table where the 8 best teams, also play in a play-offs system (best of 5 games) to become the Spanish Championship. The European pyramid system allow promotion, so the four best teams during regular season have the possibility to participate in the following year’s European Championship organized by the Euroleague where they compete against best teams across the continent. Relegation and promotion are also possible in ACB and, two worst teams are relegated to second division (liga LEB), which two best teams are promoted to play in the Spanish top league. To be able to play in the ACB league, every team must fulfill some requisites:
§ Pay a promotion fee of 2.8 M€ + taxes + a 1,36 M€ + taxes contribution to “Fondo de Regulación de Ascenso y Descensos” § Prove of a minimum budget of 3.384.899,58 € per season § An Arena/facility with at least 5.000 seats capacity § Concede Audiovisual and Sponsorship space for the mutual exploitation § No taxes debts § Have a Professionalized managerial structure with at least a general manager, sportive manager, marketing manager, media and public relations manager and financing manager.
NBA is much more restrictive when new teams want to join, but this is not meaning that the ACB league makes it easy to get in to. Due the economical situation in
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 12
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
Spain, most of the teams that get promoted have lots of difficulties to meet the requirements the league impose to participate.
5.2.2 Competitiveness
A study made by students from La Universidad de las Palmas compared the competitiveness level of the two best basketball leagues through the sporting results from the past 18 seasons. The study concluded by affirming that the NBA’s competitiveness among their franchises is more constant that the ACB."The ACB is open and less powerful teams compromise the competitiveness of all member teams in general,"outlines the researches (Guerra, et al 2012), which suggests the need to design strategies to change such a situation by taking a view on the NBA’s policies they established. "It is likely that this has had an impact on the overall performance of the North American league, since the objective of the salary cap and other methods such as the draft is to avoid teams with large profits from getting all the best players. This in turn ensures equality in the NBA” said de Saá on the posterior interview he conceded after the study was released. (Phys.org, 2012)
5.2.2.1 The Salary Cap
A salary cap is a limit money a club can spend on players’ salaries as a method of keeping down costs and to provide a fair equal treatment to all the teams competing in the league (Dietl, H., Lang, M., and Rathke, A. 2009). The NBA introduced the salary cap at 1984-1985 season and has been valid since the beginning of 2011-2012 season. The new Collective Bargaining Agreement (CBA), signed by all franchises and players (comprising the National Basketball Players Associations–NBPA) and league managers lead by commissioner David Stern, established the new Salary Cap base on $58.044 million and set the new rules and procedures that must be followed in order to determine the minimum and maxim amount, a player can get as salary, depending on a few variables as team’s budget for next season, years played at the same team, years of contract remaining… The salary cap prevents richest teams to persuade players with a big salary quantity and let poor teams with less chances to guarantee a good level of competitiveness in the competition.
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 13
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
Salary Caps is commonplace in most of the professional leagues across North America but in Europe, only the Guinness Premiership and the Super League of Rugby are capped. Top executives in main European sports, considered in introducing salary cap in the early 21st Century, but they acknowledged a number of challenges and characteristic not present in the North American sport’s structure model, that make tricky, the adoption of these rules:
- A European body governs each sport that (in case of football, the UEFA and basketball, the FIBA) organizes the most prestigious competitions in the continent. Those bodies have authority in those international competitions but not much in domestic ones. It is true that these bodies can impose a Salary Cap, but they only would affect to those teams that plays the international competitions, creating a difference between the team playing only in the national league and those who play at the international ones. - In Europe, multiple currencies are used for paying salaries paid. But the majority of the countries use the Euro, other countries with huge sport and economical power as United Kingdom or Russia, an European salary cap would not ensure the fairly treatment for those teams. - Taxes on salaries are different in each nation (Monaco is free taxes),, and establishing a common rate for all the nations would carry economical consequences that most of the teams and league are not willing to risk on. 5.2.2.2 Revenue Sharing
According to the NBA Commissioner, “whenever you have 30 teams in 30 different markets, you have 30 different goals and needs” (Stern, D. 2012) It is no coincidence that franchises with large market areas such as Los Angeles, Boston, New York and Chicago, are the richest teams in the league. Taking the example of the other three “big leagues”, the NBA along with team owners, are planning to set a revenue-sharing plan that aims to contribute on the equality of opportunities among other “not as powerful” teams. The plan isn’t already decided, but some rumors talks about that “the core of the plan calls for all teams to contribute an annually fixed percentage, roughly 50 percent, of their total
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 14
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
annual revenue, minus certain expenses such as arena operating costs”.(Lombardo, J. 2012) Then, the total amount in the pool is being redistributed where “poor” teams gets, this is the intention, more money than previously contributed. The final amount of money received will be determined by the averages of team’s revenues, salary expenses and other variable still negotiating.
Revenue Sharing in Europe is an unlikely idea to talk about right now. During the years, Europe has been expanded and commercialized sports making the most popular team richer every season majorly, by selling its TV rights for astronomic contracts. With an extreme competition among the big teams in Europe, no one is willing to share their revenues with lower teams making them weaker and not be able to compete with full guarantees.
5.2.2.3 The NBA Draft
The Draft is an annual event which all thirty teams are able to choose new players to join the teams, most of them from college (NCAA league) but also international players. At the end of each season, all teams are ranked according to their performance (win and loss games), those who had the worst record (less victories) are placed on the top of the draft picking list and those with best are at the bottom. The draft consists of two rounds of player picking, which lowest ranked teams in the season, first on draft picking list, choose the first among all players that had been eligible to be drafted. The Draft allows worst teams to acquire the good players that cannot be tempted by the richest and most powerful by the possible salary they could earn by the runes of salary cap, ensuring an equalized distribution of talent through the weakest teams and attempts to readdress competitive imbalances.
When team selects a player, this has gained the "rights" of that player and he cannot deal with, or play, for any other team. That player then goes into financial negotiations with that team until that team signs the player, trades the rights to another team or waives their right to them.
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 15
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
It is common and allowed to trade with draft picks to negotiate for new players joining teams from other franchises, but the commissioner, David Stern, always can ban the trade if it is considered that the result of the trade will make a team much more beneficiate than others, maintaining the idea of equal opportunities to everybody that the NBA always is trying to keep.
5.2.3 Young Players and Basketball Development: The NCAA (College Teams) vs. Junior Teams.
Someday, today’s kids will be the ones playing in the crowed arenas earning high salaries and will be the role models for their generation. If the strength and competitiveness of a competition is desired to be maintain and improved, over the years, it is essential to make efforts and work hard on basketball and young players’ development. The NBA and the ACB are aware of that, but they follow two different path.
Most of professional clubs in Europe own a set of young teams, differentiated by age, which main objectives are to educate and train skills needed for the practice of sport and generate valid players to compete in the professional leagues in the future. Club Joventut de Badalona starts to “work” with kids from 5 years old and it is considered one of the best clubs that teach and develop basketball across Europe
In the other hand, in America, kids are growing up by playing sports for their schools, responsible of the education and development of the kids. The National College Athletics Association. (NCAA) is in charge to organize and rule all competitions among universities in the United States. If a kid in America would like to someday play for any NBA team, it is mandatory to attend to college and play at the NCAA league at least one year.
Professional teams in Europe, have direct influence on the developing and education of the players rather than the NBA franchises that they only select the young talents from the NCAA Univeristies. This influence is considered a landmark that each player has and can make him be identified by a way of playing that helps the club to build a reputation. This cannot be found in any NBA franchise, as they don’t participated on the development of talent until it is time to select the
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 16
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
young players in the Draft. It is not wrong to affirm that “the ACB teams build players and the NBA buys them”.
5.2.4 Revenue Sources
To provide some kind of perspective on the relative size of the NBA and the ACB, consider the fact that, Kobe Bryant, the highest paid player in the NBA, earns more money per year than the total budget of 16 teams in the LigaACB together” (MarcaRedection, 2012).
No doubt that what makes both leagues earn money, is the commercialization of the basketball games. The NBA championship is disputed by a total of 2460 games against the 612 that the ACB offers (not taking into account the Playoffs of both competitions). “It is the league, not the teams, that generates the fundamental market opportunity to produce professional sports games within the league territories”. (Yasser, McCurdy, Goplerud and Weston, 2006. Nafziguer, 2008) So, with more game, more opportunity to make business and generate revenues. This could be one of the key facts that help us to understand the gap between both leagues assuming that the main revenue sources for the ACB and NBA league are the same: ticketing, media rights contracts and sponsorship.
A simple table with the key economical features from the leagues is displayed, that will help to understand the big gap there is between the two leagues. (Table 1)
Table 1: Comparison Economical Results NBA and ACB (2010-2011)
ACB NBA Average Team Valuation (M) 8,39 €/$ 11,18 $ 393 / 294,912 € League Revenues (M) 15,478 € / $20,17 $ 4.000 / 5.330,398 € Avergae Ticket Price 25€ / $ 33,3 $ 48,48 / 36,38 € Regular Season Attendance 6.461 17,274 Ticketing Revenues 10,2 % 26,1% Media Revenues (M) 45 % 23,5% Sponsorship Revenues 18 % 13,4 % Source: WR Hambrecht+Co, ESPN, ACB, Business Insider, Forbes
The NBA fights, along NHL, NFL and MLB majority, for a piece of the 316 million strong markets in the United States and potential consumers. Having
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 17
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
metropolitan areas rounding seven to two million people, it makes NBA franchises have lots of opportunities to generate profits and revenues. The Market size fact cannot be compared to the Spanish one, having a total of 42 million people and home cities of the majority of the teams, are no bigger than 200.000 habitants. The only two comparable markets are Barcelona and Madrid, which their metropolitan areas sizes round the two and three million people.
The bigger markets, the more possible game attendants you can have. To meet the demand, bigger stadiums are needed so more tickets are available for public. The average of NBA stadium’s capacity of 18.000 fans that, during season, teams had an average of 17.274 attendances at a home game. In addition, in the Spanish league, and average of 6.461 fans attended to home games, where their courts only have an average of 10,000 seats available. (See table 2.) So, the difference on ticketing revenues; total amount on income gathered from the selling of season, single game and VIP tickets, can be related to these factors helping to understand the percentage that it has on the total of revenues.
Sponsorship plays an important role. The NBA acknowledges its importance as a communication channel used by companies to advertise, and reach its publics. The NBA has important partnerships with powerful companies as Adidas (possesses the NBA rights to make all teams gear and merchandising, deal valuated in more than $ 400 millions) (Rovell, D., 2012) American Express, Sprint, McDonald’s, Foot Locker, KIA, Sprite are other examples of companies that supports the league and all of them give a total of $ 335 millions On the other hand, Liga ACB receives a mere 4 million of euros in sponsorship every year by a few firms as league’s policy to avoid saturation of brands: Electric company ENDESA, which 30,5 million of euros in six seasons, having the branding name of the league since 2012 making it known as “LigaEndesa”. Orange, Renfe and Plátano de Canarias also constitute the vital pillar of survival nowadays for the league.
ACB diffuses its games by two main TV broadcasters: Radio Televisión Española (TVE) and FORTA, a union of regional televisions, which both have the right to chose a game to retransmit every weekend (TVE has preference on choosing) receiving a total of 10 millions of euros each season becoming the first revenue
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 18
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
source for the association. ACB games also can be viewed online thanks to the partnership with operator Orange on the official league’s website. The NBA is a more attractive product, so the demand is much higher and so are the prices for the rights of distribution the games. In the Table 3, we can appreciate the current deals that the league achieves with the media operators to diffuse the games into the fans’ homes. Media revenues is the second most important revenue source of the NBA moving around a 20% and 24% of the total annual revenues.
5.2.5 Interaction with Fans
“Building and sustaining a base of “committed fans” is a primary goal for teams and leagues. The most important part of the whole business, they are the final consumer of the product of sport. They attend to events, watch them on TV and spend money on merchandise and tickets” These words from Beech, John and Chadwick, Simon (2007) reflects exactly why fans are important fro any sports- related business. It is the duty of this business to find, attract and make them happy. Below, there are some actions and plans that NBA and ACB leagues perform in order to get closer to the fans and enhance its impact on society:
5.2.5.1 Initiatives and Events
The main examples that we found on league’s efforts to become closer to the public are by events as the NBA Nation (An interactive basketball experience that stops around the country during summer which its main reclaim is that you can compare yourself with the top player’s basketball skills),the Jam Session during the All-Star Weekend and the NBA Hoop Troop (a kids’ NBA webpage that aims to show to the little ones the NBA and basketball in a way they can understand)
As NBA mission statement says, “Our teams, players and leagues office will be actively involved in improving the quality of life in the communities” the league have self obligated to help on the improvement of less-favored lives and develop some initiative as NBA Cares and Basketball Without Borders (organizations that addresses important issues as education, family development, health and community improvement by the promotion of sport),NBA Green (initiative to
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 19
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
develop and produce environmental actions), NBA FIT (Inside NBA Cares, this initiative aims to provide the “healthy” education and avoid children obesity)
Players play an important role on all of those events and initiative as being them who actually make the actions and makes them more accessible and more “humans” to the rest of the public.
5.2.5.2 Digitalization and Social Media
Commissioner David Stern point it out during the interview with Judy Woodruff for Bloomberg Television in 2012, “Sports has always led each of the evolutionary stages on delivering content, from television broadcasting, then cable, satellite and now the digital world”. Internet and now through social media channels, provides the possibility to communicate and interact with different markets. In 1999, the league launched an online TV channel, NBATV, where offers a full coverage, via monthly subscription, of all basketball games and programs that communicate all what is happening in the league. The ACB league, collaborating with one of the main partners, Orange, launched its own online media channel, a free service, which the fan have the opportunity to watch almost every league game live, highlights and interviews, making a huge step to get closer to fans.
Social Media has changed the way we communicate and interact with the world. It has given a great range of opportunities to get closer to the fans and share and to the world the basketball product. Here there is a table showing the total followers and fans engaged (that follows the accounts) on Social Media main platforms league accounts. (See table 4) and the two last champion teams on each league’s past season (2012-2013). (See table 5)
Table 4. Social Media Stats Comparison - Leagues (June 2013)
NBA ACB FACEBOOK (“likes”) 16.842.372 47.846 TWITTER (“followers”) 8.146.034 * 107.861 YOUTUBE (“subscriptions”) 3.666.926 1.302
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 20
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
GOOGLE + (“followers”) 2.159.687 No Account INSTAGRAM (“followers”) 936.000 No Account LINKEDIN (“followers”) 16.642 No Account
*not taking into account the 11 other different accounts
Table 5. Social Media Stats Comparison – Last Champion teams each league (September 2013)
Miami Heat Real Madrid FACEBOOK (“likes”) 8,637,000 1,527,150 TWITTER (“followers”) 1,830,450 85,896 YOUTUBE (“subscriptions”) 123,771 10.287 GOOGLE + (“followers”) 35,361 10 INSTAGRAM (“followers”) 786.000 No Account LINKEDIN (“followers”) 2,802 No Account
Data speaks by itself; the NBA is clearly stronger in the Social Media than ACB. Teams also are aware of what offers Social Media so all teams nowadays in both leagues, have their own Social Media program.
5.2.6 Summary Table
To make a quick recap of the section, here is a table that recaps the main similarities and main differences between the two leagues analyzed (See table 6)
Table 6: Similarities and main Differences between the ACB and the NBA
Concept Explanation
League Structure Regular Season + Playoffs Restrictions to Entry Both had requirement to join the league. Revenue Sourcing Both leagues main revenue sourcing comes by the commercialization of their TV rights and sponsorship of private Similarities companies.
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 21
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
Reaching fans Presence in Social Media platforms and promote basketball through internet initiatives League Structure NBA: 30 franchises with no promotion or regression. ACB: 18 clubs which best are awarded to play international competitions and worst are downed to second division Total of Games 2460 (NBA) vs 612 (ACB) Competitiveness The NBA set policies and procedure to ensure a mayor equality among teams: NBA Draft, Salary Cap and Revenue Differences Sharing. ACB do not has any. Basket Development Clubs in ACB are responsible for education of young players. NBA picks talents from College league (NCAA) Markets and Offer 42M (Spain) vs 316M (USA). Average ACB stadium capacity 10,000 vs NBA’s 18,000. Economics League Revenues (M): (ACB) 15,478 € / $20,17 vs $ 4.000 / 5.330,398 € (NBA)
5.3 Marketing Sports in the US: What Europe can learn.
Basic marketing concepts related to the sports industry are defined that every marketing manager/responsible should take into consideration at the time of setting objectives and designing and implementing marketing actions and plans. Also a set of procedures and practices that are successfully implemented in America will be described and posterior analyzed for its possible adaptation into the European Market and applied to the Case study.
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 22
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
5.3.1 Defining sports Marketing and its aspects.
There are lots of versions about a clear definition of what Marketing is. There is the basic one: “Marketing is the process of communicating the value of a product or service to customers” (Kotler, Philip &Kellers, Kevin, 2012), and the more detailed version: “Marketing is the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return” (Kotler&Amstrong, 2005)
We can certainly agree that the sport industry is not a standard industry, “Buying a ticket to a game, paying subscriptions to a sports internet site or purchasing a piece of memorabilia is simply not the same as marketing industrial components or boxes of washing powder” (Beech & Chadwick, 2007) These marketing definitions are not able to transmit the essence of sport and differentiate it from other products or services. Aaron C.T. Smith, in Introduction to Sports Marketing in 2008, went further than the basic definition of Pitts and Stotlar in 2002, and state that “Sports marketing is focused on meeting the needs of sport customers or consumers, including people involved in playing sport, watching or listening to sport programs, buying merchandise, collecting memorabilia, buying sporting goods like clothing and shoes, or even surfing a sport- related website to find out the latest about their favorite team, player or event.”
As we have seen, Sport Industry involve a huge range of companies, but for the well going of this thesis, from now on, all the work and references will be focused in the perspective of a sports club/sports team for helping to achieve the final goal/objective of all of this work, provide some positive insight to the Club Joventut de Badalona could learn from.
Having a clear idea of what Sports Marketing is about, it is important to start knowing which are the pillars we must take into consideration in developing any marketing startegy. John Beech and Simon Chadwalk in their book The Marketing of Sport (2007, 1st Edition) gave the fist advice. “Managers cannot successfully operate in the industry without a thorough understanding of the marketing concept and its linkage between customers and products”.
The marketing mix is the simple combination of four key aspects of each marketable
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 23
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
product that tries to reach its potential customers. Product, Place, Price and Promotion.
A product is defined as “anything that is capable of satisfying customer’s needs” (Jobber, 2004 and Beech and Chadwick, 2007) It is very easy to enumerate some examples of sports products; a tennis racket, a pair of shoes, a snowboard table, but als products that are not tangible, also are considered sports products, like a football game on television, internet event coverage, entertainment during games… Those are called Sports Services.
So, according to the definitions of the experts, The Club Joventut de Badalona’s products offer can be determined and analyzed. No doubt, the core product that the club offers is the “Liga ACB” games taken place at the Palau Olímpic de Badalona (Place: 2nd Aspect on the marketing mix) and other products or services that the club can offer, for example, merchandising to support the team, food and beverages at the venue, entertainment during the halftimes are secondary products that can helps on building a fan experience around the core product, the basketball games. For receiving these products, a price must pay and it is the duty of the marketing managers to set these prices correctly for a good acceptance of the consumer.
Promotion, last aspect from the mix, is about how we “communicate with consumers, getting the message across the marketplace” (Smith, 2008:99) about what are we trying to sell and what are we offering in order to fulfill consumers’ needs. It includes all kind of advertisings, discounts, and sponsorship actions.
The objective for the marketing mix is to create a solid base in order to set strategies and actions to bring the product to the consumers, as much more effective, as possible. But this cannot be done, if first, the consumer is analyzed.
“A sport consumer is an individual who purchases sporting goods, uses sport services, participates or volunteers in sport and/or follows sport as a spectator or fan” (Smith, 2008). If the Sport Industry is special, also their consumers will be. “Sport Consumer displays a bewildering array of values, attitudes and behaviors” (Meir, 2000, Shank 2002; Westerbeek& Smith, 2003). The challenge is always there and it is the responsibility of the marketer to understand, take care and indulge its consumers. “Sport
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 24
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
consumers identify with teams, clubs, brands and athletes, and see them as extensions of themselves.” (Smith, 2008) Next step is classify them and separate them for designing and implementing a much more accurate actions to create a great linkage with your product.
Smith & Steward in 1999, and lately ratified by Aaron Smith himself in 2008, summarized, in his publication of “Introduction of Sports Marketing”(2008) , different kinds of segmenting consumers by demographic factors (age, gender, race…), socio- economic factors, geographic factors (precedence, nationality…) and psychographic factors (values, attitudes, likes, preferences…)., product behavior and benefit factor (see table 7)
Table 7: Segmentation of Sports’ Consumers
For creating a successful marketing strategies, all these factor should be worked and linked following a common view that will help to achieve easier and better the final objectives set.
5.3.2 Procedures and successful Marketing Practices implemented in America
In the following, a sample of Marketing Strategies and Plan followed by an American Basketball Teams (NBA and college teams) where the main objectives and proposals and actions to take will be described. For a better comparison with the Joventut de Badalona case, those marketing plans and strategies had been selected as theses teams share some aspects on their situation based on the objectives and deficiencies, potential market, outside environment (direct competitors, population area…) or stadium capacity
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 25
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
the year the plan was developed with the Catalan club. The Marketing Plans selected are Los Angeles Clippers (see in Appendix1, table 8), The University of Memphis Tigers (table 9), Loyola University (table 10) and University of Seattle (table 11).
After taking a look on the different marketing plans, we can quickly observe that all are designed around one aspect: the fan. Sport’s Marketing plans are mainly designed to identify and lately satisfy consumers possible needs before and during the game. If consumers had the feeling that they spend a good time at games, they will probably come again. Offer personalized promotions can help you to easily reach the target market and get them into the arenas. We can also observe that these needs a fan can have at the game, as food or entertainment, involve the collaboration of an external input from the club itself. The club is offering a great channel of publicity to possible external business could join which can carry positive benefits for both parties.
Also is common in North America to organize events to bring closer the team to the fans, for example the Pep Rally and the Midnight Madness very usual to see in college. This kind of event also gives a great opportunity to reach the markets and make it feel be part of the team. Make fans be part of it, it will increase its desires and interest on the well going of the team, they would be attend to the games, follow the team when they play away.
5.4.2.1 Case: Entering in a new market: the Brooklyn Nets
Recently, the New Jersey Nets’ franchise toke the decision to move the team to another market, which could be more profitable as the market in that zone, had not very much connection with the team. Brooklyn was the destination chosen, mostly because of the 18,000 spectators new arena built, the most modern facility across the country and that able to provide great opportunities to entertain the new market of 8M habitants, the city of New York and surrounding has. So, franchise’s duty was to start to offer a new way of living the basketball that could interrupt the New York Knicks’s dominance in the market, along with other huge competitors as the Yankees and Mets (baseball), the Giants (football) and the Rangers and Islanders (ice-hockey).
Giving a differentiation value against other franchises was needed and the Nets
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 26
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
decide to focus its strategy in building memorable fan experiences, which cannot be found elsewhere and that, would last forever. All 8 strategic actions were designed around a common theme, “ Stop watching the action, Be part of it”, where the main objective was to bring fans into the core of the action and live it as they are the protagonists. A table summarizes these experiences that aimed to bring fans live the action from inside. (Appendix 1, table 13)
After a season in Brooklyn, and thanks to the new marketing procedures the franchise developed, the average attendance per game increased from 13,961, worst team in league to 17,187, becoming the 16th fulfilling more the 90% of the capacity
of the Barclays Center.(ESPN, 2013)
With these examples of marketing practices that had been describes, the second part of the study will focus on the analysis of a case study that aims to help the Club Joventut de Badalona to progress and grow as a sport institution and a professional basketball club.
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 27
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
6. Methodology
This section outlines the different research methods had been used for the elaboration of this study and its posterior solution suggestion based on the research and analysis on secondary data of various books, articles and cases about the American sports business model, its marketing procedures and their strong and weak points against the European/Spanish model.
6.1 Interview with Daniel Llurba, Marketing director of Club Joventut de Badalona
To really know what was the actual situation of the club, I interviewed the Marketing Director, Dani Llubra.
My objectives for this interview were to know exactly how the club was running, which procedures they were following in terms of marketing, and how was the actual situation after the “Concurs de Creditors” call and how the economical crisis impacted the institution. (Appendix.3 Full list of questions)
The objectives were fully satisfied and after the interview, I was able to start working on drawing the paths that I might follow to look for the solutions and solve the situation of the club.
6.2 Joventut de Badalona fans survey
To understand the actual Club Joventut de Badalona’ situation, Mr. Daniel Llurba introduced, it was necessary to reach those who have the key on every sports business and where the most relevant and useful information can be gathered, a Club Joventut de Badalona’s league game, the core of all sport team’s works and efforts are putted on. It is at the games, where the club and the team meet their most important asset to manage, the fan.
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 28
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
The selected day was the 28th of April of 2013, the team played against Herbalife Gran Canaria, and that day attendance at the Pavelló Municipal de Badalona was 6589 1, higher than the total average of attendance on 2012-2013 season attendance (5249) 2
The best option was a quick-answering survey compounded with a total of fourteen questions, divided in different sections that aimed to reach global opinions and thoughts on the different aspects and experience as a fan. To better classify and generate possible target markets for the future marketing actions, socio-demographic questions were asked.
The Sample is compounded by a total of 73 surveys correctly answered, less than the number I set up as objective, but enough to take some interesting conclusions.
1 According to the official game statistics issued by the ACB on their webpage. 2 According to oficial Joventut de Badalona webpage
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 29
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
7. Case Study: Club Joventut de Badalona
The Club Joventut de Badalona is now immersing in a transition phase, which is trying to recover economically, socially, and in sporting terms from the delicate situation that has been through the past years. Brief club’s history (Appendix 4). The area most affected is still the way the club is financed. Three main sources are responsible to build up a budget to face, majorly, the expenses that generates having a team on the top league of Spain, including players and staff wages, travel costs for playing games away and the arena maintenance. A 40% of the revenues (season 2012-2013) are provided from the ticketing and membership fees that the fans pay to attend to the games, this number had been decreasing continuously during the past 5 years reaching nowadays, between 15% and 20% lower than five years ago. Now this has been stabilized around a base of 5,000 members, but is not enough to secure a good balance for the economic future of the institution.
This is also happening with the sponsorship and publicity contracts with private companies. For the 2012-2013 season, sponsorship represented the 50% of the total budget given primarily by three main sponsors: FIATC Seguros, providing 70% of the sponsorship revenues (representing a 35% of the total club’s revenues) DKV, and SPALDING, providing official gear and sportive material. The club now, faces challenges caused by the economic crisis leading to a total decrease of 60% of the total revenues from 2007-2008 to 2012-2013. The TV rights and publicity from the ACB league provide the remaining 10% of revenues.
Graph 3. Joventut de Badalona’s revenue sources
Ticketing and Membership fees (40%) TV Rights and publicity from ACB (10%) Sponsorship (50%) FIATC Seguros (70%) Others (30%)
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 30
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
The emerge of great Spanish basketball players such as Pau and Marc Gasol, Rudy Fernandez, Ricky Rubio that are moving to the NBA to become international sports stars with a similar status to Rafael Nadal, Fernando Alonso, F.C.Barcelona and Spain’s football teams that are becoming globally famous. Along with the rise of Euroleague Basketball, this is influencing fan choice in terms of entertainment and makes the ACB league, and consequently, Joventut de Badalona (who have not competed at the top level of European basketball in recent times) less attractive for the public, by the appearance on the media or the interest of kids to emulate their “heroes”. The main target that the club has noticed that has a notable lack of interest in the team is the known as “teenagers” and “young-adults” (aged between 15 and 25 years old) (Llurba, 2013). The leisure and entertainment offer is much more diversified nowadays and it challenges the club to position itself into this market of “options to have fun”.
As mentioned before, revenues that came from directly from the fans, ticketing and membership, consists the 40% of the total budget for the next season, so the club, in order to secure and economical stability along the year, needs to know how its fans are, act and try to satisfy its multiple needs when they come to the arena to enjoy the basketball and support the team. All single fans are important, but there is a key target segment that must be taken care of, “the loyal fans”. The decrease of interest and consequently the decrease of attendance to the games also mean that the annual membership decreased 5 years ago.
Having loyal fans means guaranteeing core attendance to the games, securing fixed revenues from their season tickets, which is essential to ensure growth. Loyal fans mean stability, which is why it is so important for the club to understand their needs and opinions indulge and make anything possible to delight them. If we take a look on the results of the survey, we observed that the number of those loyal fans attending at the games is low compared with the rest, 18% of the total fans at the game, and more lower if we consider that the total members of 2012-2013 season were around 5.000, almost total attendance that day.
The poor attendance and the feeling to be at an empty stadium that characterizes most of the basketball games celebrated in the Joventut arena, is probably the main issue the club has to face and needs to work on (season average is 5,249, 61,4% of total capacity).
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 31
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
An empty arena increases the difficulty of creating a good atmosphere and environment where fans can contribute on the support of the team while is playing, and according to the results of the survey, fans requested that the club makes more efforts in try to encourage fans to cheer for the team. This could normally be reconciled with a healthy media rights deal that would enable the Club to guarantee revenues from revenue sharing policy (as in the NBA), however, as we have seen this is not the case in the ACB where Joventut play the vais st majority of their games.
To be in contact with your fans and get them informed about what is happening around the club and the team, is crucial to build up this link among the two parties that can help in engage fans and make increase a future interest. Nowadays, sports media in Spain is capitalized and almost monopolized by two themes, football and the rivalry between Real Madrid and F.C.Barcelona. For other clubs from other sports, as Club Joventut de Badalona a major challenge exists to find new channels to communicate through. The Club’s main communication channels are basically Badalona’s local media, such as Radio Ciutat Badalona, Badalona Radio and Diari de Badalona.. These all reach low audiences and provide very limited exposure to new markets.
To reach much bigger audiences, there is only one feasible solution: Internet. The Internet network provides a channel which information flow is much faster and easier to transmit and get to the audience. The official webpage (penya.cat) was the first move, but now, with the explosion of Social Networks, it is mandatory to build a strong presence. Joventut de Badalona’s Facebook page, at June of 2013, had more than 6,500 likes that can track the most notable news from the team almost every day and they can complement the information by following its Twitter account that offers the same service to up to 12,800 followers. This provides a very good basis for growth as social media and internet offer other platforms to be in contact with the people, the Joventut de Badalona should increase its online presence and use other different services that can offer Instagram, FourSquare, Tumblr and Google+.
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 32
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
7.1 Analysis of fans survey’s results
A survey was designed to understand and corroborate the actual situation by asking the fans about their opinion. In order to make a proper analysis and interpretation of the results gathered from the survey, I grouped and analyzed the results in different group of questions, based on the objective and type of data I got: Demographic, Fan Habits, Satisfaction and Suggestion Questions. (Appendix 4. All results of each question)
7.1.1 Demographics Questions
In this group of questions, it was asked for the age, gender, hometown and actual situation with the club of the responders. Based on the answers, we could generalize and define the main type of fan that attends to a basketball game if we take into consideration the most answered options in each question. So it is a male between 26-35 or younger than 16 years old3, that is not affiliated with the club that doesn’t usually attends to the games (between 0 and 6 games per season). As can be observed on the total answers on each option, there is a big difference between the most answered and the others. (All are over a 75% of the total answers), so in this case, it would be difficult to define a second group of fans attending at the stadium. (Graph 4, Graph 5, Graph 6) The only think remarkable on this first group of questions, is that only a 17,81% always attends to the basketball games “17 – 15 games per season”, meaning that there is a very low rate of loyalty among fans of Joventut de Badalona in terms of attendance. (Graph 6)
Graph 4: Age Distribution Graph 5: Relation with the club
46-55 56-65 7% 1% 6% 66 + Soci 0% -16 18% 35% 36-45 A icionat 36% (No Soci) 76% Jugador/a equips base 26-35 17-25 3% 18%
3 Options “26-35” and “-16” got the same number of answers (27)
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 33
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
Graph 6: Frequency of attendance 18% 17-15 games 34% 14 -11 games 5% 10 -7 games 10% 6 -3 games 2-0 games 33%
7.1.2. Habits
First question about whom they normally attend to the games with, a great majority of the answers were divided into two options: “Family” (38,67%) and “Friends” (46,67%). Only 4 (5,33%) answered that they go alone. (Graph 7) By which method do they use to attend to the games, there was not a clear preferred option. ”Buy single tickets” and “Using possible promotions” were the option for the 32,56%, each one, and a 21% answered that they go thanks to invitations, normally from basketball clubs around Badalona. Only a 13,95% uses the annual membership (“Carnet de soci”) (Graph 8). A question was also asked if the fans were following the news about the team and club and which media they normally used. Multiple answers were available and most of the fans chose different options. Media that fans use the most are Television (32,14%) and Internet (24,11%) where TV Channel Esport3 (50%) and official ACB web page (32%) are the main channels. Surprisingly, only 16% of the responders used Social Networks and printed media. It is also relevant that 8% of the fans did not follow any team news.
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 34
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
9% 5% Alone Anual Membership 21% 14% Pass Family 39% Single Tickets 47% Friends 32% 33% Promotions Other Others 7Graph 7: Who do fans go at Graph 8: Methods to attend games .games with
7.1.3 Satisfaction
First question was required to show their satisfaction about the contact with the club, in terms of communication and transparency and if they think it is enough or want to have more contact with the club. A 61% answered that they are very happy and only a 17% said that the club could do more efforts to be in contact with the fans. The satisfaction is also visible at the question about the ticket and annual membership prices were a 63% thinks that prices are good and only a 20% thinks that prices are expensive. (Average Single ticket / Average Annual Membership ) Last question, participants were asked to grade five aspects giving a number between 1 (very bad) and 5 (very good). All five aspect “passes” the average of the grades got (most results resulted were 3 or 4) but in two cases, there were more votes on the “bad side” (1 or 2) than the “good side” (4 or 5). “Food and Drinks offer” and “Entertaining during the game” are these two aspects, that fans perceived that are weaker and where the club can improve. “Stands visibility” and “Merchandising Offer” are well rated by the fans by getting almost an 80% of good satisfaction rate. The most remarkable aspect is the one, which was asked for the global experience a fan, got at basketball game. Results are evident and more than 90% answered that they are very happy and they got a great experience as a fan (3- 26%, 4- 46,38, 5- 20,29%). In overall of five aspects, the final grade would be between 3 and 4, as these two grades were the most answered among all the possibilities. 29,53% of the answers were 3 and 31,47% were 4. Only a 7,83% of the answers graded aspects in 1 (Very Bad).
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 35
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
Table 13: Satisfaction grades (Percentage of answers/total responded) 1 2 3 4 5 Food and Beverage offer 14,08% 19,72% 35,21% 14,08% 9,86% Stands visibility 1,49% 2,99% 14,93% 47,76% 38,81% Merchandising offer 3,28% 21,31% 40,98% 36,07% 8,20% Entertainment 17,39% 17,39% 30,43% 13,04% 10,14% Global experience as a fan 2,90% 4,35% 26,09% 46,38% 20,29%
7.1.4 Suggestion – Open questions
Suggestion questions are different as others because all of the three are open questions which fans had the possibility to answers on their own words. to take conclusions, I combined answers that wanted to mean more or less the same concept. About the atmosphere during games at the stadium, most of the comments were positive as “Good”, “Exciting”, “Incredible”, but also a big amount of negative adjectives were described: “Cold”, “Sad”, “Empty”… One of the most repeated concepts that fans described the atmosphere is “Familiar” and “Friendly”. In order to have ideas of how this atmosphere could be batter and improve fan experience at the venue, fans were asked to give an idea to improve this situation. Lots of ideas came up concerning the poor entertainment during the game and fans asked for a speaker that pumps up better the public, much more motivational music and have a single song that could be representative of the team, and “light effects” for the presentations of the team before each game, a mascot and the implementation of an animation stand for youngers to lead the animation and the supporting of the team. Other ideas were proposed in order to change the decoration and look of the game arena by changing the color of the chairs to green and black, buy a new scoreboard and give promotional stuff to help support the team. Lots of fans also proposed to organize more events in order to make players get closer to the fans and create a link between the team and fans. Last question of the survey, it was asked to the responders to what they think they could do to help the team and the club to grow and increase its fans base and fill the arena. To “bring friends and family at the games”, to “support the team during the game” and “become annual member”
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 36
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
are what fans are decided to do to improve the situation. All answers can be found in Appendix 5, Question 11, 12 and 14.
7.2 Challenges for the future
Along with the information gathered from the interview with Daniel Llurba and the conclusions taken from the results of the survey, here it is the list of challenges the club should start to put efforts for ensuring a positive future growth over the next years and make a step forward the modernization:
• Make Joventut’s basketball games, and all what they involve, more attractive for the public, especially for the youngers (17-25 years old), and looking for and reach another potential target market that attends to the games. • Increase its fan’s base and increase the number of loyal fans. (Get more annual memberships) that will help to stop the trend of continuously decreasing the number of members that will lead to acquire more revenues to add to the total budget for next seasons. • Make the team more accessible and closer. Create a closer link between the team and the fans. • Develop a Social Media actions that would help to reach and engage Joventut de Badalona fans for increasing the interest and support to the team . • Improve the fan experience at the games. Change the perception of a cold atmosphere and environment where it is difficult that the fans cheer and support the team while is playing the games. • Provide a returning value for possible investments from sponsors and private funding. Try to recover the decreased ROI during these past years of economical problems.
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 37
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
8. Recommendations based in the American Model, Suggestions and Proposal of Case’ Solutions
Presented different procedures and successful marketing practices and actions taken by some North American Basketball teams (NBA franchises and College Teams), and having into consideration, the differences between NBA and ACB business models and structures, a set of Marketing actions are proposed and detailed to solve the different challenges, the Club Joventut de Badalona’s case presented after all the analysis.
Marketing Action Proposal
As we learned from the literature review, a successful marketing strategy must link the possible products with will satisfy the different segmented customers. Before designing and implementing any marketing practice, first we need to define the different customers/fans (referencing Smith’s segment categories. Table 7) this set of actions will be focused, how are we going to reach them and what products we will offer to them.
By the analysis of the actual situation of the club, we found that club needed to create a solid fan base that will support and attend the games. New consumers must be reached, and those, which the plan is majorly focused on, will be the kids. Reaching the little kids and attracts them to attend to games, carries another potential and interesting market, and possible fans: the parents. If the plan is able to create great experience that kids enjoys at the time they are at the game, will make parents follow them and be also part of it and probably both would like to repeat the experience, coming again at another game and increase their interest in the team. So, to do that, the plan will design actions that first, will try to make new fans come to the arena and then, develop practices that will build a great fan experience for those, with the objective that fans would come again.
One of the requisites that every marketing action is detailed, is that its development and performance do not carries a great amounts of costs and expenditures that could not make as effective as desired, compared with the
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 38
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
results are pursued. The collaboration with sponsors can be a way to reduce costs and increase action’s final overall result.
All the strategy will be around a single concept or theme, which will try to unify all challenges, aimed to solve: reach new fans, improve fan experience and get closer to the team. The catchword will be “Tú ets el sissè jugador”, translatet to engish “You are the sixth player”.
Now, it will be presented the set of actions and activities that designed to solve the different challenges that proposed the case. It will be described what are they about, which is the main target is focused and what it tries to improve.
Reach new fans
Education Campaign: Design and develop a marketing campaign based on different educative videos and films that will explain and show all what involves the Joventut de Badalona. Issued periodically by chapters, the films will generate knowledge about the team on the public. Possible topics for these videos could be: Teach basics of Basketball, present the players and staff, show how a game is lived in the stadium, and describe a typical fan... The campaign will be addressed for all type of public, but the videos should be more focused for those kids that they still don’t know about the club.
Get closer to the team
“PenyaFest”: Consists of a free entrance festive event which fans will have the opportunity to attend to a training session few days before the celebration of the first home game of the season which will have the opportunity to get closer to the players by celebrating a autograph signage, the possibility to ask them questions in an informal press conference or even learn some of the movements from the players itself after the training. During the festival, there will be various shows and contest where fans could win different prices as free game tickets, free merchandising and special promotions. The main objective of this event in to create a common
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 39
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
space where fans can interact directly with the team in order to create this link that can generate more affection for the team and its players, that hopefully will be translated into the games.
“Experiència Verd-i-Negra”: Designed to kids aged 6 to 12, this experience consists becoming part of the action by helping the players with rebounding the balls during the warm-ups, be present at the team’s presentation by creating a corridor where will have the opportunity to high five the players as they come in and be in the official game photo with the whole team taken right before the game starts.
Improving Fan Experience
Thematic Days: Each home game will be associated with a theme or topic which all the entertainment and will be focus on. The objective is to make the fans live different experiences not have the feeling that every day is the same. Special promotions and offers can be offered to try to involucrate the fans to be part of the show. Examples of topics could be (see table 14):
Table 14: Examples of thematic days Joventut de Badalona
THEME About Special Offers to fans Create a scary atmosphere by “Come dressed and get a decorating the arena with typical discount on your tickets”, Halloween Halloween decorations. Awards for the best costume
Offer discount on tickets if fans Día Verd I Negre Enhance the fans to show their wear green or black t-shirts. (the Green-Black pride of wearing the team’s Special Team’s merchandising day) colors (Black and Green) discounts only for that day. Give the possibility to a team’s sponsors to create a space to Sponsor’s Day Free products giving away promote its company exclusively during one game.
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 40
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
Mascot / Entertainer: Hire an entertainer, dressed with a costume, that will be in charge to go around the stands and pump up the public make them supports the team. It is very important that the mascot is themed about something that could represent the team or the city and that interact constantly with the fans, specially the kids.
Representative Supporting Anthem: Look for a catchy song that encourages the public to cheer for the team and show their strength and pride of be part of the team. The song aims to represent and create an identity of the fans. The fans itself will be the ones that decide which will be these songs by issuing a poll through Internet and main social media platforms where they can propose a song and vote for which ones will be selected.
“Grada Joventut Verd I Negra”: The habilitation of a specific zone on the stands, behind a hoop, for create and placing supporting group to lead the different chants to animate the teams and encourage the rest of the public, to follow them. The idea of the “Grada Joventut Verd I Negra” is to be an open group, so anybody can join by making the petition in the Internet, but it will lose when it reaches a maximum number of petitions for each game (250). To make more attractive for youngers and teenagers, which this is aimed to, the club can offer special conditions to the members: Provide material as flags and drums, design unique t-shirts to wear during the games, get discount on purchasing merchandising and beverages at the bar, and a special price for the ticket.
Share the experience on Social Media: Fans will be asked to share their experience at the game by the creation of small contests and special offers to increase participation and interactivity among fans. Fans posting and sharing their vision on social media, will make their friends and followers to see what is happening and make the club reach new audience. The different Social Media networks available, allows to create a specific contest and offer for each one (table 15)
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 41
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
Table 15: Sharing experience through Social Media
Platform About Award Twitter Tweet about the game and the atmosphere Win a double ticket for the during game time. To be valid, it must be next home game of the mentioned the official account of the club team (@penya1930) and use the hashtag #forçapenya Facebook Post about the game experience (picture, Best Facebook post will video, text…). It must be mentioned the have the possibility to meet official facebook account of the club a player before next home (Club Joventut de Badalona) game. Instagram Ask fans to show how they live the game Best picture will receive a action. They must use the hash tag free t-shirt #forçapenya Get the picture published on the official accounts of the club. Four Square Check-in that they are at the Palau Buying a drink at the bar, Olímpic, attending the game. they get one for free
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 42
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
9. Conclusions
When we talk about the North American and European Sport’s structures and business models, we talk about two different worlds, which there are not many similarities between them. Once European clubs are ruled to win titles and competitions, American franchises focus more on getting profits as any other business in other industry. Where the leagues in America are closed and very restrictive to join, in Europe is established a pyramid system allowing promotion and regression among teams that help to ensure a minimum level of competitiveness in the leagues. Not even both models share the same popular sports, whereas in Europe, the sport that capitalizes almost all the market is Football (Soccer), in America there are four that compete for a piece of the cake (Basketball, Baseball, Football and Ice Hockey). As has been seen that none of any model particular characteristic is proven that is better than the other followed by in the other continent, makes it really difficult to set a “perfect” business models. Re-structuring and Implementing new procedures in the model will carry expenses and costs that may lose the attractiveness of making the change. As part of the objective of this study, I elaborate a table that shows and addresses the strong and weak point of each basketball league models, performances and structures complementing the summary table that was presented at the literature review (table 6).
Table 16: ACB and NBA Strong and Weak points’ comparison
ACB NBA + + • One of the best basketball development • Equality Policies: Salary Cap, Revenue programs. (ACB young teams) Sharing Plan, The Draft • Junior teams enhance high level players • Good positioning among other sports development and team culture learning in the market • Offers an attractive product (Considered • Huge Market Size: More business second best league in the world – Best opportunities teams in Europe) • Huge offer game (2460 games each • Direct influence on Players regular season)
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 43
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
Development • High attendance rate at venues – high ticketing revenues • Social Media presence • Big initiative that get close connection with its fans - - • Several restrictions to entry for • High barriers to entry promoted teams from liga LEB • Model is broken, need to be fix it (23 • Low popularity and interest in Spanish teams lose money) market – Competition against football • Treat fans as a way of revenue • 80% of teams are not profitable generation • Economical Situation in Spain • No influence on player development • No good connection with its fans from the begging (Social Media Presence and Initiatives production)
The objective of the study was to provide some characteristics of each league’s business model in order to design the ultimate new basketball league model that would be the role model for all other leagues and competitions from all over the world:
• Set a pyramid structure allowing regression and promotion of teams to ensure a high level of competitiveness, along with a set of rules that every team has to follow. (Salary Cap and Revenue Sharing Plan) in order to promote equality among teams. An equal league is much more attractive for the audience, having the possibility of increasing the revenues of ticketing and TV right deals. • Fans is one of the most important asset in every sport clubs, so a common league’s marketing plan, with little variations depending on the different markets the team are, will be developed in order to meet all possible need the fans have while they are consuming the common product, the basketball game. • Every team will have the possibility to develop and manage a young talent program in order educate the future players that will participate in the league.
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 44
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
In order to ensure a good training and developing of these young talents, small leagues among the same teams will be set and managed by the league, offering a competitive environment for growing.
A Sports marketing strategy involve the coordination of all the different aspects in order to set and lately meet the proposed goals and objectives. By analyzing and posteriorly presenting examples of marketing practices and actions some basketball teams in American had developed and performed, a specific marketing plan has been designed in order to meet and solve the challenges of the Club Joventut de Badalona’ case had presented after the analysis of its situation after gathered different kinds of data and information from interviews and surveys.
As the plan is a proposal, it is not possible to determine and conclude if these actions presented had been successful and actually had solve, or at least improve, the problems and the deficiencies. It is the duty of the Club Joventut de Badalona to revise the plan and determine if these actions could be implemented and get profits from them. My intention of doing this Marketing Plan was to design realistic actions that can do, influenced by how the club works and the actual economical situation of the institution.
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 45
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
10. References
• Andreff, Wladimir. (Brussels Conference on February 16th, 2010) “The impacts of economic crisis on future finance for grassroots sports” • Baker, Gorczynski, Schubert, Wesel, Murphy (2004) “Loyola Basketball Marketing Plan” • Beech, John and Chadwick, Simon (2007). “The Marketing of Sport” 2007 edition. Page 3-22 • Cheney, Larsson, Sticka, Schulze (2012) “Los Angeles Clippers Marketing Plan” • Dietl H., Feanck E., Lang M. and Rathkle A., “Organizational Differences between U.S. Major Leagues and European Leagues: Implications for Salary Caps” (2011) • Dietl, H., Lang, M., and Rathke, A. (2009). “The Effect of Salary Caps in Professional Team Sports on Social Welfare”, The B.E. Journal of Economic Analysis and Policy, Vol. 9, Article 17. • European Commission (1999) “The European Model of Sport” • Fort, Rodney. “European and North American sports differences” Scottish Journal of Political Economy, Vol. 47, No. 4, September 2000 • Gaines, Kork. (2011) “Chart of the day: NFL Players And Owners Are Fighting Over The Biggest Pie In Sports” • Kotler and Amstrongs, (2005) “Principles of Marketing”, 11th edition • Kotler, Philip & Keller, L. Kevin (2012). “Marketing Management” 14th edition • Lombardo, John (23th January 2012) “Inside NBA's revenue sharing” Sports Business Daily retrived from http://www.sportsbusinessdaily.com/Journal/Issues/2012/01/23/Leagues- and-Governing-Bodies/NBA-revenue.aspx • Lovelock, C and Wirtz, J. (2004) “Services Marketing, People, Technology, Strategy” 5th edition • Maarten van Bottenburg. (1950-2010). “Why are the European and American sports worlds so different?”. In: Tomilson, A. Young, C. and Holt, R. Sports and the transformation of modern europe. : .page 205-222
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 46
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
• Mirás Avalos, C. (2012) “análisis ACB: actualizando datos de asistencia a pabellones” retrived on: http://www.piratasdelbasket.es/html/ACB/analisis- acb-actualizando-datos-de-asistencia-a-pabellones.html • Nafziguer, James (2008) “The International Sports Law Journal” • National Basketball Association (NBA) and NAtional Basketball Players Association (NBPA) (2012) “Collective Bargaining Agreement” web link: http://www.nba.com/media/CBA101_9.12.pdf • “NBA total attendance report season 2013” (ESPN, 2013) retrived from http://espn.go.com/nba/attendance/_/sort/homeTotal • Pitts and Stotlar (2002). “Fundamentals of sport marketing” 2nd Edition • Pysics.org (2012, August) “NBA equal ACB” retrived from http://phys.org/news/2012-08-nba-league-equal-acb.html • Ray Yasser, James R. McCurdy, C. Peter Goplerud, & Maureen A. Weston, Sports Law: Cases and Materials 231 (2006) • Rovell, D. (April 2006) “NBA laces up adidas for 11-year partnership” ESPN.com retrived from: http://sports.espn.go.com/nba/news/story?id=2404020 • Smith, Aaron C.T. (2008) “Introduction to Sport Marketing” • Staudohar, Paul D. and Andreff, Wladimir. “The evolving European Model of Professional Sports Finance” • Stern, David (2011) Interview with Judy Woodruff for Bloomberg Television, retransmitted on TV on February 14th. Video: http://www.bloomberg.com/video/66714542-nba-s-stern-interview-with- judy-woodruff.html • Steward,Bob , Smith, Aaron and Nicholson, Matthew. “Sport Consumer Typologies: A critical review” (2003) • Thür, Peter F.. “The Sporting Goods Market in Europe 2020, One European unión – 27 different markets, One Euro – 17 countries – 17 retail prices. One mega trend: Sport” • University of Memphis (2002) “Univeristy of Memphis Tigers Basketball Marketing Plan”
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 47
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
• University of Seattle (2009) “Men’s Basketball Marketing Plan, 2009-2010 Campaign” • Westerbreek, Hans and Smith, Aaron. “Sport Business in the Global Marketplace” • WR Hambrecht+Co (2012) “The U.S. professional sports market & franchise value report 2012” • Y. de Saá Guerra, J.M. Martín González, S. Sarmiento Montesdeoca, D. Rodríguez Ruiz, A. García-Rodríguez, J.M. García-Manso. (2012) "A model for competitiveness level analysis in sports competitions: Application to basketball". • Zygband, P. and Collignon, H. (2011) “The Sports Market”
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 48
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
11. Appendix Appendix 1: Other tables used during the study Table 2: ACB Games attendance (2012)
Team Average % Attendance Venue Capacity Attendence CAJA LABORAL 94,05% 9.473 8.520 / 15.504 MAD-CROC Fuenlabrada 91,42% 5.211 5.700 Gran Canaria 2014 88,87% 4.621 5.200 Assignia Manresa 88,48% 4.424 5.000 BLUSENS-MONBUS 87,35% 5.241 6.000 Obradoiro ASEFA Estudiantes 86,77% 10.412 12.000 Valencia Basket 86,67% 7.800 9.000 GESCRAP Bizkaia 86,16% 8.616 10.000 Lucentum Alicante 80,13% 4.564 5.696 UNICAJA 76,98% 8.468 11.000 Blancos de Rueda Valladolid 72,81% 4.587 6.300 UCAM Murcia 71,84% 5.355 7.454 BANCA CÍVICA 71,05% 5.418 7.626 CAI Zaragoza 70,24% 7.375 10.500 Real Madrid 65,45% 7.912 12.000 / 12.442 LAGUN ARO 63,81% 7.019 11.000 F.C. Barcelona Regal 60,58% 4.595 7.585 FIATC Joventut 41,60% 5.200 12.500 Source: Carlos Mirás Avalos (2012) “ANÁLISIS ACB: ACTUALIZANDO DATOS DE ASISTENCIA A PABELLONES” http://www.piratasdelbasket.es/html/ACB/analisis-acb-actualizando-datos-de- asistencia-a-pabellones.html
Table 4: Actual Media Contracts NBA
ABC $ 3,5 bilion 2008-2016 15 regular season, 5 playoff games, NBA Finals ESPN $ 3,5 bilion 2008-2016 75 regular season games, Playoffs and NBA Draft TNT $ 3,5 bilion 2008-2016 52 regular season games, Playoffs Direct TV - Starting 2009 Out-of-market games (exclusive) NBA TV - - 90 regular season games and certain first-round playoff games Source: WR Hambrecht+Co, “Sports Market Report 2012”
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 49
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
Appendix 2 : Example of Marketing Plans of NBA franchises and College teams Table 8: Los Angeles Clippers Marketing Plan for Season 2012-2013
Objectives Launch a new targeted advertising campaign to attract new fans (focused on Hispanic population), develop a new stadium atmosphere cater to the target fans and increase sales. Actions proposed - Advertising Campaign: the campaign will have two different ad themes and be placed focusing upon reaching the target market. “From the shadows” and “Little brother has grown up” (referencing with the rivalry with Los Angeles Lakers). The campaign is addressed to the Hispanic population that “had come to Los Angeles last generation in the hopes of building a life prosperity in the United States”. Both themes try to connect with them. - Community Outreach: Help in building homes and basketball courts in the community in collaboration with NBA Cares foundation. - Building a Stadium Atmosphere: To make Hispanic fans more comfortable at the arena, a set of actions will be developed: § Merchandise and Programs: make small changes in team’s merchandise and games program. Most important, the use of Spanish is essential. § Heritage Nights: Bring their culture to the games by performing regional dances and music during times out along with free giveaways that linked the Clippers with the culture
Table 9: University of Memphis Tigers Basketball, Marketing plan 2002-2003
Objectives Increase ticket revenue, game atmosphere, student attendance and support and overall awareness. Actions proposed - Create a season theme, a catchword that tries to connect with the fans and the players to go all together and be one. The final theme selected was “leavin’ it all on the floor” - Give free promotional material as season ticket brochures, posters, stickers, and magnets across U of M campus. - “Memphis Midnight Madness” Event, where students and season ticket holders will have the opportunity to meet the players and get free merchandising and promotions to purchase tickets. - In Game Promotions ideas to build up an energetic atmosphere during games: § Fun Gun: launch premium items at the crowd (mini basketballs, headbands…) § Raining 3’s: every time a Tiger make a 3 shoot, t-shirts will be launched § “Kroger Katch”: two contestant will try two contestants will try to catch mini basketballs, being thrown from the catwalk, with a mini shopping cart, § Pizza Delivery: in collaboration with Pizza Hut, a delivery man will deliver a free pizza to a lucky fan
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 50
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
- Thematic Game nights. Each of every home game will have a theme where some actuations on halftime will take place.
Table 10: LOYOLA University, Marketing plan for 2004-2005 campaign
Objectives Improve game atmosphere, more attendance and wake up interest in new target markets as alumni. Actions proposed - Propose the university to build up a new restaurant/bar where fans and students can meet before and after the games to get the school spirit mode on. - Create animation shows during the game: a Spectacular entrance of the home team, hire a cheer leader and crowd animator - Promote basketball games around campus and make the students that didn’t attend, “not being cool” by others that did.
Table 11: University of Seattle, Marketing plan for 2009 – 2010 season
Objectives Building a strong student section support group (RedZone), Bring an outside group (1,000) to each home game, Increase Alumni attendance, Improve overall fan experience. Actions proposed Game Schedule, ticket info and promotional schedule mailed to: - Season ticket holders, basketball camp attends, former SU players, SU faculty Alumni - Different target sports fans in Seattle Area - Target local organizations - Enhance Red Zone: free t-shirts for SU students, free food on game days Celebration of Pep Rally for freshman, Midnight Madness and “Red Fridays” Advertising on campus: flyers, SU radio, txt messages, Facebook invites
Table 12: Brooklyn Nets’ Experiences
EXPERIENCE ABOUT PRICE
Scoreboard Message Personalized message posted on $75 scoreboard during game
Sixth Man Experience Personalized message posted on $100 scoreboard during game + visit and autographed picture of Nets’ mascot
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 51
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
“BrooklyKnight”
Starter Experience “Sixth Man Experience” + pre-game $150 photo taken on court + a Nets gift bag
Honorary Ballkid Rebounding for the players on court $500 during pre-game warm-ups + 4 tickets for the game+ Nets Gift Bag
Game Ball Delivery Present the official NBA game ball prior Starting the tip-off to the official at center court + $500 a pictures for remember the experience + be at court while players’ presentation and the national anthem + 4 tickets
VIP Night Be treated like a VIP and watch the pre- Starting game warm –up from the courtside + a at $500 on-court photo with the players + Nets Gift Bag
High Five Line 2 kids (ages 7-13) high five the Nets $500 players as they enter the court prior tip- off + 4 tickets for the game+ Nets Gift bag
Brooklynettes Experience Opportunity for up to two kids (6-13) to Starts at receive private one on one lessons with a $500 dancer and be part of the Brooklynettes huddle prior tipoff. + 4 tickets for the game and a Nets Gift bag
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 52
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
Appendix 3. Interview to Daniel Llurba, Marketing and communication responsable of Club Joventut de Badalona. (Full list of questions) 1. How is the Club Joventut de Badalona mainly financed? Where do you get the most part of the capital? Is it enough to cover the yearly expenses? (Which Elements help to hold the economy of the institution) 2. Which are the main companies and institutions you work with? What benefits for the club can they give? 3. Which other activities contribute on the economy of the club? Are they successful? 4. How about the Shopping Center - Màgic Badalona, is it really successful? What benefits it contributes to the club and the city 5. Which is your principal target market? How do you managed to reach them? Which are the main strategies you follow? 6. Other potential market (not current). Have you already identify it? What kind of strategy you might follow to reach them? 7. Would you say that Joventut fans are loyal? How do you manage the loyalty? Do you have any strategy to follow? Does it give good results? 8. What are the main bases of your promotion strategy? With which companies do you work with? 9. What other services do you offer while the games are played? Do the fans only get “the game and the sport” entertainment or do they get any other benefits? 10. How is the relation with the city (population)? Do you think that the city of Badalona is proud of the team and feels that is part of the club? How do you manage this relation? 11. When the economical crisis started to begin back on 2008-2009, were you directly affected? 12. When did you start to notice that something was changing in the club environment and of the surroundings of the club? 13. How were you affected? Which factors and elements of the club are most affected? (Economy of the club, public affluence, less members…) 14. After identify the problems you might get, how do you manage to try to turn the situation? (Decreasing the affluence to games – actions you take)
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 53
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
15. Which were the main reasons that lead the club to take this decision of calling the “concurs d’acreditors”? 16. Once it was decided, does it really affect in the every-day work in the institution? How? Does it affect to the games and the professional team? Did you need to change your procedures of working? 17. After established the clearness of almost 80% of the total debt (14M to 3M), how do you face the future? Will you change your strategy in order to avoid this situation in the future? What actions do you think that have to be done?
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 54
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
Appendix 4. Brief History of Joventut de Badalona In the earlier thirties, a group of Youngers from the city of Badalona usually were meeting to practice different kind of sport as an entertainment during the dictatorship of Primo de Rivera that Spain was into. The inquietude of a new sport that was starting to attract more people to participate, make those guys to found the first basketball team in the city, know as the Club Joventut de Badalona.
When The Civil War in Spain began, lots of players were force to exile the country and the team had problems to compete because lots of team around the area disappeared. La “Penya”, name that refers to the first name of the team “Penya Spirit of Badalona”, honoring the aviator Charles Lindberg, could solve the problem by starting to compete in the national Catalonian Championship in the earlier 40’s.
The first big achievement for the club was to reach, at its first year competing, the first national league division that make the team and the club increase its popularity in the city and was able to attract the attention to better players to play for la Penya.
Was not until the 80’s, when the institution lived the most successful era since its foundation. The first big international title came at 1980-1981 season by winning the Korac Cup (second most important tournament in Europe) against the Italian team of Carrera Valencia in Barcelona. After a few years of negativity and bad results, the club make a 180º turn, recovered itself and started to be at the top of European basketball by wining, in 1988 the “Recopa d’Europa” and two years later, wining its second Korac Cup.
The 90’s started keeping this winning trend and respect gathered on the court and the team, for the first time in the history, winning the Liga ACB against FCBarcelona (1990-1991) and reached the European’s Championship final in 1992 that la Penya lost against Partizan of Belgrad in Instanbul. The prove that the Club Joventut de Badalona was on the top of the international basketball was the bid the NBA gave to the team to participate in the McDonalds’ Open hosted in Paris, where the black-green team had the possibility to play, and almost win, the great team of Los Angeles Lakers where legendary players as Magic Johnson and James Worthy play.
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 55
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
The Penya fans will always remember the April 21st of 1994. That day, the Club Joventut de Badalona became the best team in Europe by defeating, in the Final4 of Tel- Aviv, first the FCBarcelona and at the big final, the greek team of Olympiakos. That day set an inflection point for the institution.
After those years being on top, the club experimented a brutal fall down with a great economical and institutional crisis that some bankruptcy and disappearance rumors were flying through the city of Badalona. A new Joventut de Badalona was needed and, after the retirement of one of the biggest players in Penya’s history, Jordi Villacampa, the club decided to bet for a mix of players coming from the young teams of la Penya and the veteran and experience of beloved players as Rafa Jofressa. After multiple changes, the team wasn’t getting the results desired and the worst “bad results” era of the team was taking long and had the impression of that it was never going to end.
Last important competitions the team won was the 2008 edition of the King’s Cup hosted in Vitoria and ULEB Cup, which lead the final explosion of Rudy Fernandez, a young boy that grew up in the young teams of Badalona and finally toke the step to play at the best basketball league in the world, the NBA. Also that competition, a new talented kid, Ricky Rubio, was born and lately followed the same path as Rudy. Club Joventut de Badalona has been always known as a reference worldwide of formative basketball club that takes cares and helps grow up talented kids into the professional basketball world. Rudy and Ricky are the newest example of this enormous work and effort that has been made in Badalona.
When the global economical crisis exploded worldwide, Joventut de Badalona started to feel its consequences after a year it began. Most of the loyal sponsors of the team had difficulties to pay their contracts making the club have a lots of issues to finance itself and pay for the players’ salaries. This continues spiral of falling down lead the club to call a “Concurs de Creditors” that make reduce up to a 70% of the total budget from one season to another.
Nowadays it seems that the situation s being stabilized and started to going up allowing the club calling out the “Concurs de Creditors” situation and manage the club by itself.
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 56
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
After more that 70 years of existence, Club Joventut de Badalona had become Spanish Champion 4 times, had won the King’s Cup for 8 editions and a total of 4 European competitions: 2 Korac Cups, 1 ULEB Cup and 1 European Championship. Those standing make the Club Joventut de Badalona one of the most important and most awarded clubs in the Spanish basketball of all times
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 57
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
Appendix 5. All results of the survey. Question 1. Age Result Percentage -16 27 35,53% 17-25 14 18,42% 26-35 2 2,63% 36-45 27 35,53% 46-55 5 6,58% 56-65 1 1,32% 66 + 0 0,00%
Question 2. Gender Results ercentage Home (Male) 54 78,26% Dona (Female) 15 21,74%
Question 4. Which is your relation with the club? Results Percentage Soci (Annual Member) 13 18,57% Aficionat (No Soci) 53 75,71% Jugador/a equips base (Player) 4 5,71%
Question 5. How often do you attend to games? Results Percentage Sempre (Always” (17-15 games) 13 17,81% Sovint (Frequently) (14-11 games) 4 5,48% Normalment (Someitmes) (10-7 games) 7 9,59% Rarament (Barely) (6-3 games) 24 32,88% Mai (Never)(2-0 games) 25 34,25%
Question 6. With who do you normally go with? Results Percentage Sol (Alone) 4 5,33% Família (Family) 29 38,67% Amics (Friends) 35 46,67% Altres. (Others) 7 9,33% Equip Basquet Cheers
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 58
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
Question 7. How do you normally attend to the games? Which method do you use? Results Percentage Carnet de Soci/Abonament 6 13,95% (Annual Mmebrship) Compro entrades en partits puntuals 14 32,56% (Single Tickets) Utilitzo possibles promocions 14 32,56% (Using promotions) Altres (especifica) 9 20,93% Invitació 2 4,65% Club de Bàsquet 3 6,98%
Question 8. Do you follow daily the news of the team and the club? Which type of media do you normally use? Results Percentage Radio 8 7,14% Rac-1 4 18,18% Radio Ciutat Badalona 5 22,73% Badalona Radio 1 4,55% Flaix FM 1 4,55% Marca Radio 1 4,55% Catalunya Radio 1 4,55% Cope 1 4,55% Television 36 32,14% Esport 3 18 5,26% TDP 6 6,58% TVE 2 1,32% TV3 8 1,32% TB 2 1,32% ib3 1 1,32% TVC 1 1,32% Telediari 1 47,37% No sortim mai a la tele 1 23,68% Internet 27 24,11% Roja Directa 1 1,85% ACB 12 22,22% web CJB 6 11,11% marca.com 2 3,70% TV3 a la carta - Esport3 2 3,70% Orange Arena 2 3,70% Youtube 1 1,85% El País 1 1,85% Diari (Newspapers) 14 12,50%
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 59
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
La Vanguardia 3 10,00% Mundo Deportivo 5 16,67% La Grada 1 3,33% BNS 2 6,67% Diari de Badalona 1 3,33% Sport 3 10,00% El Periodico 1 3,33% Xarxes Socials (Social Networks) 18 16,07% Facebook 11 30,56% Twitter 7 19,44% Altres (Others) 1 0,89% Teletexto 1 33,33% De boca a boca 1 33,33% No ho segueixo 8 7,14% (I don’t follow it)
Question 9. How do you rate your contact with the club and team’s news? Results Percentage Estic molt conten 38 61,29% (I’m very happy) Estic content però vull tenir més contacte 10 16,13% (I am happy, but I would like to know more about the team and the news)
No estic content però vull tenir més contacte 11 17,74% (“ I am not happy but I would like to know much more about the team and news) No estic content i tampoc vull tenir més contacte 3 4,84% (I am not happy and I don’t want to know more)
Question 10. What do you think about the price of the membership / game tickets? Results Percentage Preu Raonable (It’s OK) 29 63,04% Barates (Cheap) 8 17,39% Cares (Expensive) 9 19,57%
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 60
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
Question 11. How do you describe in one word the atmosphere at the Palau during the Joventut de Badalona’s games?
Positive Insight Bad Insight Other
Bo 2 Fred 9 Familiar 3 Calent 1 Trist 1 Esperança 1 Depen de la Fantastic 1 importancia 1 Suport 1 Ambient de Mola 1 Menjar més barat 1 Bàsquet 1 Molt Bo 7 Poca Gent 3 Ilusió 1 Maco 1 Incertesa 1 Intensa 1 Inexplicable 1 Pobre 1 Esportivitat 1 Apasionant 1 Massa Tranquil 3 De Calçotada 1 Emocionant 5 Poc Ambient 1 10 Genial 1 TOTAL 21 Apostoflant 2 Guai 1 Confortan 1 Eufòric 1 Molt Festiu 1 Increible 1 TOTAL 28
Question 12. Suggest an idea that would improve the fan experience on Joventut de Badalona games
Regals/Sortejos (Presents and Raffles) Animació (Entertainment) Megafonia-Animador-Speaker Cheerleaders Animar al public (Encourage fans) Espectacle Inicial Llums (Initial Light Effects) Més Música (More Music) Mascota (Mascot) Grada Jove/Animació (Support Young Stand) Una Canço fitxa per animar (Anthem to support the team) Preus més economic (Economic Prices) Bar Packs Familiars I nstalació (Facilities) Seients Verd-i-Negres (Green and Black localities) Nou Marcador (New Scoreboard) Goteres (Repair leaks)
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 61
“Marketing professional sports clubs. Case study: Club Joventut de Badalona”
Baixar els llums grades per donar atenció a la pista (Low down stands lights to give more importance to the court) Altres (Others) Més Públic (More Attendance) No fer entrar 1:30 abans (not making get inside the venue 1:30h before) Més Penyes (more supporting groups) Televisió (Television Coverage) Contacte amb els jugadors (More contact with the players) Ofertes Productes Patrocinadors (Sponsors’ products offers)
Note: In black, options that were more repeated Question 13. Rate those concepts 1 2 3 4 5 Oferta de restauració al palau 14,08% 19,72% 35,21% 14,08% 9,86% (Food and Beverage Offer) Visibilitat en les grades 1,49% 2,99% 14,93% 47,76% 38,81% (Stands Visibility) Oferta de Merchandaising 3,28% 21,31% 40,98% 36,07% 8,20% Animació 17,39% 17,39% 30,43% 13,04% 10,14% (Entertainment) Experiència global com a aficionat 2,90% 4,35% 26,09% 46,38% 20,29% (Global experience as fan) AVERAGE (1) Molt Dolent (Very Bad) 7,83% (2) Dolent (Bad) 13,15% (3) Acceptable (OK) 29,53% (4) Bo (Good) 31,47% (5) Excel·lent (Very Good) 17,46%
Question 14. What do you think you can do for helping the team/club/venue to solve those weaknesses it has and help him to grow?
- No Sap (Don’t know) - Fer-se Soci (Become Annual member) - Més Assistència (Attend more to games) - Animar (Cheer and support the team) - Portar gent al Pavelló (Amics, Nens…) (Bring more people to the games) - Comprar Productes Patrocinados (Buy Sponsors’ products)
Note: In black, options that were more repeated
Pep Blanchart Fernandez BES La Salle - Universitat Ramón Llull 62