The Sports Professor Rick Horrow, in conjunction with promotional partner Northern Trust, looks at the four key factors in starting up a pro sports league – as this weekend celebrates the beginning of the Dew Action Sports Tour in Louisville, World Bowl XIII in Duesseldorf, and ArenaBowl XIX in Las Vegas.
The beginning of the NBA Finals is an indirect celebration of the old American Bowl Association of the 1970's – the ABA alum San Antonio Spurs go after their third NBA title beginning this Thursday. This week, however, is really a celebration of the "niche" sports leagues. The inaugural Dew Action Sports Tour begins with the Panasonic Open at the Louisville, Kentucky Expo Center this weekend. A joint venture between NBC and Clear Channel Entertainment Motor Sports (with Fox Sports Radio a new significant partner), the event inaugurates 22 hours of live coverage on NBC with $2.5 million of prize money through the end of the tour this October in Orlando. On Saturday, NFL Europe concludes its 13th season when Berlin plays Amsterdam in World Bowl XXXIII in Duesseldorf, Germany. On Sunday, ArenaBowl XIX will be played between Georgia and Colorado at the Las Vegas Thomas & Mack Center – the first time the Arena Football League plays its game at a neutral site.
Nearly $150 billion of advertising was placed on television last year; nearly $8 billion of that for sports. In addition to the corporate money spent on nearly 50 television networks, over 476 million spectators watched sporting events of all kinds last year. In fact, there have been over 35 start-up leagues that have announced their long-term intention to "change the sports landscape" since 1990 (all gleefully touting a "unique business plan.") In fact, most positive predictions give way to cold, hard economic reality. Most of these leagues do not make it past their first season. Sports trivia buffs may recount the history of the following: Continental Indoor Soccer League, American Basketball League, Roller Hockey International, WUSA, United Baseball League, World Golf Tour, Asia Pacific Football League, U.S. Rugby League, Team Racing Auto Circuit, and who can forget the XFL.
Leagues like the American Basketball Association and World Hockey Association made it long enough to be "merged into" established leagues. In any event, each new pro league needs all four key elements to be successful:
1. Substantial core of loyal and intense followers.
2. Stable of emotionally and economically secure owners and investors committed for the long-term.
3. Maximum television exposure, whether through rights fees or initial start-up investment.
4. Consistent support and growth from Corporate America.
THE "NICHE" SPORT SHOULD HAVE A SUBSTANTIAL CORE OF LOYAL AND INTENSE FOLLOWERS (CASE STUDY: PROFESSIONAL BOWLERS ASSOCIATION)
According to the Sporting Goods Manufacturers Association national survey, bowling is America's top participatory sport – 55 million Americans consider themselves bowlers. The Professional Bowlers Association has taken advantage of this fact. Emerging from bankruptcy in 1999, a new ownership group invested over $4.3 million in prize money according to a "five-year profitability plan" that included a major grass roots alliance with bowling associations across the country. The 12 percent bowling growth rate according to Scarborough Sports Marketing is the second highest of any sport.
The plan seems to be working. On October 31 of last year, the PBA Tour held an event in Miller Park, the home of the Milwaukee Brewers – the first time a bowling match was held in a Major League Baseball park. Four lanes were assembled in shallow right field – complete with automatic pinsetters and ball returns. The Miller High Life Masters presented by the American Bowling Conference was held with 5,000 seats priced from $10 to $75 at Sections 108-208/113-213 at the stadium that held the Major League Baseball All-Star Game three years ago. An economic and public relations success, the PBA Tour holds 20 events through the 2005 season.
THE START-UP LEAGUE MUST ATTRACT A STABLE OF EMOTIONALLY AND ECONOMICALLY SECURE OWNERS AND INVESTORS COMMITTED FOR THE LONG-TERM (CASE STUDY: AVP PRO BEACH VOLLEYBALL)
