The Sports Professor Rick Horrow, in conjunction with promotional partner Northern Trust, looks at some of the major NFL marketing issues after opening weekend. Despite all the focus we place on the National Football League as the most successfully run business in sports, the darling of Corporate America and a solid business model for any company operating in 32 or more discrete regions, at the end of the day the league’s success is really dictated by its tens of millions of fans. This week, we’ll look at the “NFL Experience” from the fans’ perspective, both inside the stadium and on screens ranging from oversized plasma tvs to the compact monitor on your cell phone.
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In the Stadium America’s Most Loyal NFL Fans You think Raider fans are rabid? According to a just-released survey of NFL Fan Support Ratings by the American City Business Journal chain, the top ten teams have the most loyal fan following are: 1. Cleveland Browns 2. Kansas City Chiefs 3. Philadelphia Eagles 4. Green Bay Packers 5. Dallas Cowboys 6. Buffalo Bills 7. Houston Texans 8. Denver Broncos 9. Baltimore Ravens 10.Washington Redskins Criteria were weighted 60 percent toward “support factors” including attendance; percent of capacity the stadium is filled each week; and attendance fluctuation. Forty percent of the criteria comprised the team’s winning percentage; market population; fans’ per capita income; the weather factor focused on December high temperature in each team’s home city. The Raiders, by the way, came in dead last, at 32. Monday night’s shutout at the hands of San Diego probably won’t help, either.
The Ticket Window For even the most loyal of fans, NFL tickets are getting more expensive. Team Marketing Report last week cited a 5.6 percent rise in ticket prices across the league. Their survey revealed that an average NFL ticket costs $62.38, an increase of more than three dollars from last year. On top of that, parking fees across the league now average $25, $100 if you want to bring your RV. Overall, twenty-one teams raised their ticket prices, including the Washington Redskins at a league-high 17.2 percent. Ticket revenue is one contributing factor to the Redskins’ record franchise value of $1.42 billion and $108.4 million operating income, which more than doubles that of all NFL franchises save Tampa Bay and Houston. Other teams increasing prices by more than 10 percent include the Super Bowl runners-up Seahawks, at 12.7 percent; the dominant Bears, at 12.9 percent; the Panthers, at 10.2 percent; and the San Diego Chargers, whose 14.6 percent hike marks the second consecutive year of such increases. The Falcons, at 14.6 percent; and the Cardinals, at 14.1 percent, raised ticket prices even though they posted losing seasons in 2005-2006. (Arizona, of course, is justifying back-to-back season double-digit ticket price increases in defense of its new stadium.) The highest average ticket cost is in New England, at $90.89. The lowest is in Buffalo, at $41.29. Interestingly, the Super Bowl champion Steelers did not increase ticket prices – their fees remain among the lowest in the league, at an average of $59.19 per ticket. And in the days leading up to Sunday’s Indianapolis-New York, Manning v. Manning “Brothers Bowl” match up, tickets were selling on eBay for an average of $1,500 per pair. "In all my years in the pros, I've never seen the interest that there is for this game as far as people asking [me] for tickets," Giants quarterback coach Kevin Gilbride was quoted as saying. "It's unbelievable." In the House: Facilities trends fans will notice, and those they might not
The top dog as far as new stadium developments this season, of course, is the new Arizona Cardinals facility in Glendale, Arizona. Among other amenities and its famous “roll-in field” tray of natural grass for games, the stadium seats 63,400 fans, with additional seating capable of bringing that total to 73,000, all with uninterrupted sight lines. The retractable roof is made of 157,000 square feet of translucent fiberglass that fills the stadium with natural light even when the roof is closed. It also boasts 37 concession stands, six club-level bars, 10 public elevators, and 10 escalators. “It’s an architectural, technical, and construction marvel,” raves the Arizona Republic. Further, the full “utility grid” embedded in the stadium floor gives trade and consumer shows and other promoters another off-season venue option in the region, guaranteeing additional revenue streams to the community and the team alike. While it may be the big cheese of the moment, the Cardinals’ new facility will definitely not be the Big Pink Taco. The Cardinals rejected a $30 million proposal from the Morton family, owners of the Morton’s Steakhouse and Hard Rock Café chains, to name the stadium after their Pink Taco Mexican restaurant chain. At Cincinnati’s Paul Brown Stadium, up to 90 fans will be able to watch the action from seven new luxury suites honoring former Bengals players. The team invested $1.5 million in the suites paying homage to Boomer Esiason, Anthony Munoz, Willie Anderson, Cris Collinsworth, Isaac Curtis, Tim Krumrie, and Ken Riley. In New England, Patriots fans can look forward to Patriot Place, a planned shopping and entertainment complex near Gillette Stadium that will feature “plazas and open spaces…large free-standing stores, a 200-room hotel, and a 16-screen theater,” according to the Boston Globe. The new complex will no doubt give fans something to do as they’re waiting for the notorious Foxborough traffic to subside. Diehard fans who even attend their team’s practices might notice another change on the practice field. Before this season, only three practice racilities in the NFL had secured naming rights -- Philadelphia, Pittsburgh and Tennessee. Add to that now Houston, where the Texans have just awarded naming rights to Methodist Hospital. The six-year, reported $14 million deal includes the health care provider's existing team sponsorship, and is a visible add-on to the current agreement. A contract option could extend the relationship through 2015. Interestingly, the other three practice field naming rights deals are also with health care providers: The Eagles’ with NovaCare; the Steelers’ with Pittsburgh Medical Center; and the Titans with Baptist Hospital – proving that it’s always a good idea to have full-service medical facilities on site when 300 lb. men collide without full pads on.
On Screen Ratings thus far NBC’s “NFL Kickoff 2006” last week garnered a 4.3 overnight Nielsen rating – roughly 12.6 percent of American households viewed the extravaganza from Pittsburgh, up eight percent from the Colts-Patriots nationally-televised season opener last year. The “Brothers Bowl” was Sunday night's most-watched program by a blowout margin, according to Nielsen estimates. "Football Night in America," which saw Peyton and the Colts win 26-21 in NBC's first regular-season NFL broadcast since 1997, attracted 22.7 million viewers and an 8.8 rating in the adults 18-49 demographic. Up 11 percent, this compares favorably with last year's 7.9 rating for the "Monday Night Football" opener. In contrast, Saturday night’s Ohio State v. Texas NCAA game captured 8.7 percent of viewers, up 17 percent from their meeting last year, while the U.S. Open women’s final between winner Maria Sharapova and Justine Henin-Hardenne attracted 3.2 percent of viewers.
NBC v. ESPN The new contracts this season will produce a total annual average of well over $3.75 billion – a cumulative 53 percent increase in overall television revenue. In the NFL's new $10 billion television contract with NBC running through 2011, the network got a big boost when the NFL green-lighted a ``flexible schedule,'' that will allow NBC to select the game of its choice Week 10-17. This guarantees that NBC won’t be stuck with any cellar dweller match ups, as has often been the case for “Monday Night Football” over the years. Moreover, NBC’s Week 1-9 match ups boast teams posting a 2005 regular season combined record of 192-96. CBS and Fox can each block five games from NBC during the late season span, but not more than one each week. Clearly, NBC's deal does not sit well with either network.
ESPN still seems happy as well, with their first nine-week schedule including only one team that had a losing record last season. While NBC is still in more homes than ESPN – roughly 87 percent of U.S. households subscribe to services that carry the cable channel – producers at the cable network are secure in their 36 years of history and the week’s prime time slot.
Rounding out the week’s NFL viewing menu for fans, on Thursday and Saturday nights, the NFL Network will air a series of eight games late in the season, the first time the league's in-house network will broadcast regular-season games.
The online marketplace: Yahoo’s NFL deal and more Finding new revenue international streams remains a top priority for the NFL. That's why last Sunday, the league began streaming games live over yahoo.com for fans outside North America. The Yahoo deal allows the NFL to reach fans worldwide without the lengthy process of cutting TV deals with cable and satellite operators in individual countries. The partnership also marks the first time the NFL has made a full season of games available over the Internet.
The NFL Game Pass service on Yahoo will cost $24.99 U.S. a week or $249.99 U.S. for the entire season (including the playoffs), and each game will available online for up to a full day after the final whistle. According to Yahoo, the service will be heavily promoted with banner ads throughout international Yahoo and NFL vehicles.
The subscription fees may be too expensive for fans in such emerging markets as China and India. Given that, the NFL may favor consumers in European markets, and in Japan. In addition to broadband, the NFL has moved aggressively into the mobile phone and satellite radio arenas. NFL alert subscriptions are available through most cell service providers, and Sirius Satellite Radio delivers the entire NFL, every week.
As a critical complement to its new NFL tv deal, NBC aims to more than double revenue from its digital businesses to about $1 billion by 2009 from an estimated $400 million this year, Reuters reported Monday.
Accordingly, nbcsports.com is undergoing a complete overhaul. The site promises “some of the best sports content on the Web, thrilling fantasy games and video, plus exclusive analysis by NBC Sports' on-air talent.”
The site also invites fans to check out its new “Sunday Night Fantasy Football” game, developed in conjunction with Rotoworld.com. Premiering last Sunday, fans pick players in advance of the Sunday night match up, then watch them play. And whether fans “form [your] own leagues or just play week to week,” they can “qualify for a grand-prize trip to New York to spend a Sunday with the ‘NBC Football Night in America’ crew.”
What’s more, “We're not stopping with football,” the reengineered site promises. “In the coming months, we'll add complete NASCAR, MLB, NHL, NBA, college basketball, golf, tennis, horse racing and action sports coverage. Of course, we'll be your online home for the 2008 Olympics from Beijing.”
In the meantime, settle in and enjoy what promises to be a banner NFL season.
