The Challenges Ahead

So at long last, John W. Henry and New England Sports Ventures have completed their purchase of Liverpool Football Club, assuming control from Tom Hicks and George Gillett, and ushering in what we hope and pray will be a new, and prosperous, era for Liverpool.

Liverpool's on-field struggles under the previous regime - falling from reaching two UEFA Champions League finals in three years, to ending last season in a bitterly disappointing 7th place in the Premier League - was overshadowed perhaps only by massive debt burdened onto the club, and the crippling loan repayments which crippled the club's financial well-being and undermined both transfer dealings and hopes of building a new stadium on Stanley Park.

But, for all of the difficulties suffered by the club and it's outstanding support over the past three years, the club has been, by any measure, remarkably successful commercially. From a marketing perspective, the appointment of Ian Ayre was particularly astute, as his stewardship over the club's marketing, sponsorship, and commercial affairs has driven the club's revenues to new highs, seen record breaking sponsorship deals agreed, and furthered Liverpool's push to be amongst the biggest and most successful world football brands.

Unfortunately, the benefits of this growth and development have never been fully felt by the club, due largely to the mismanagement of the club at the highest level, and the massive debt leveraged onto the club by the ownership group. So the question now is, under new ownership, and without the debt payment commitments that have saddled the club's finances over the past two years, just how big can Liverpool grow? And perhaps just as importantly, wait challenges await NESV upon entering Anfield?

At first glance, there are a number of similarities that can be drawn between NESV's acquisition of Liverpool and their purchase of the Boston Red Sox in 2001. Both are successful, massively supported on both a community and an international basis, steeped in tradition and history. Parallels too can be drawn between the cities of Boston and Liverpool. But equally, NESV acquired both storied clubs at a crucial and difficult time, with questions regarding both clubs' competitive prospects, the state of stadia, and chronic mismanagement over recent years.

So what lessons can we take from NESV's stewardship of the Red Sox thus far? And what challenges and opportunities lie ahead for Liverpool? Well on the evidence of both this fall's interaction between Henry and the Red Sox nation (Boston's ownership took out a full page newspaper ad to apologize for the club missing the postseason), and the early interviews Henry has conducted regarding Liverpool, and his outreach to fans through Twitter, it would appear that regaining the support, trust, and confidence of Liverpool's incredible international support is a key step forward. Under Hicks and Gillett, that trust and interaction was lost, with a growing contempt for the owners leading to protests, constant speculation, and persistent questions over the club's future. Such negativity surrounding Liverpool can only have hindered the club's commercial potential, as well as adding to the performance pressure on the players. Removing the barriers that exist between the supporters and the club is crucial to Liverpool's success, and early indications are that public and community relations will be an important first step for NESV on Merseyside.

The second important issue to be resolved by NESV will be the decision to renovate Anfield or construct a new stadium. NESV's portfolio and past history in sport suggests that the new owners won't rush into any decisions, and have experience both with redeveloping existing stadia, and building brand new, state of the art facilities. The City of Liverpool have already gone on record voicing concern over NESV's decision to consider all of their options, including renovation, believing a new 60,000+ seat stadium in Stanley Park to be integral in the regeneration the area. Under similar circumstances, Henry et al decided against a new stadium upon taking over the Red Sox, and instead invested heavily and intelligently into Fenway Park, one of the most historic and iconic ballparks in the world. However, around Fenway the ownership group have also redeveloped much of surrounding area, making Fenway as much a destination as a stadium, capitalizing on non-matchday revenues, and creating added value for the gameday experience.

How NESV will approach the Anfield/Stanley Park situation will ultimately define the success of their ownership of the club. Currently Liverpool earn millions less per match than rivals such as Manchester United or Arsenal, due largely to a lack of corporate suites, limited capacity, and outdated facilities. Raising matchday revenues, and regenerating the local community in order to drive non-matchday revenues (particularly as Liverpool will enjoy half the home fixtures the Red Sox currently do) will be a key area of concern, and one worth watching.

The London 2012 Olympics: Brought to you by... CoverGirl??

This week the IOC announced a new sponsorship agreement with international conglomerate Procter & Gamble, a ten year pact which will see P&G join the IOC's TOP sponsorship programme for the 2012, 2014, 2016, and 2020 Games. As well as being amongst the biggest and longest sponsorship agreements in Olympic history, the P&G sponsorship is intriguing on a number of levels.

First and foremost, Procter & Gamble as a parent company own a portfolio of over 40 brands internationally. Whilst the rights allocated to P&G have not been made widely available and known, it will be extremely interesting to see what allowances the company have secured from a marketing perspective, and how the company intends to leverage the IOC affiliation from a marketing perspective. One of the key issues Olympic officials have encountered in recent years (and in some ways, created for themselves), has been the proliferation of marketing clutter surrounding the Games. Ambush marketing, despite their best efforts, continues to grow internationally, and show no sign of abating. Moreover, the growing number of official sponsorship opportunities available with the Games (the 2008 Beijing Olympics boasted no less than 63 official corporate partners are various levels), has further complicated the sponsorship environment around the Olympics, and added further complexity to an already difficult industry. How an added 22 officially associated brands - should P&G have the rights - will only compound an already crowded market.

Second, over the past two summers P&G, and specifically chips brand Pringles, one of the key brands expected to benefit from the Olympic sponsorship, have become rather prominent and ambitious ambush marketers. Their campaigns around the 2009 Wimbledon Championships and 2010 FIFA World Cup were much celebrated within the ambush community, and seen by many as a signal of intent. How P&G, Pringles, and the IOC now manage that reputation and brand image should prove worth monitoring.



P&G have been involved with the Olympic Games in the past, specifically in sponsoring the US Olympic Committee, so certainly the foundations exist for a successful partnership. Moreover, few companies boast the international portfolio and awareness as P&G, which bodes well for their own marketing efforts and sponsorship activation. However, in adding another 40+ official brands to the Olympic stable, including a recognized and growing ambush marketer, the challenge has been set...

A question...

I've kept pretty quiet about the Bavaria ambush at this month's World Cup - between the hundreds of the stories already out there on the subject, the misinformation and misdirection put out there but those in the know, and claiming to be in the know, and wanting to see how everything played out prior to commenting, I thought it best to bite my lip and see what more the Finals may have in store for us.

However, one thing about the Bavaria case which has interested me since it first made news, but hasn't yet received any major coverage, is the impact the media circus surrounding Bavaria's ambush, and FIFA and the South African government's subsequent legal action, has had on Budweiser's sponsorship?

As nearly every media report on the Bavaria ambush made mention, Budweiser is the official beer sponsor of the World Cup, and they've paid a massive amount of money for those rights. But what impact has the added exposure in the media, and constant affirmation of Budweiser's official status, had on their ROI? Moreover, would such a study reveal an unintentional impact of ambush marketing not previously suggested in the academic world? Past thought and opinion - particularly the opinion held by those within the major sports federations and commercial rights holders - has been that ambush marketing has a parasitic effect on sponsors, that it devalues their association and their investment by confusing consumers and distracting from the official sponsors who fund these mega-events.

If as I suspect, however, Budweiser's sponsorship has ultimately benefitted from the added media coverage, exposure, and identification in the media, could this Bavaria promotion not ultimately have benefitted the Anheuser-Busch brand in some way? How many who witnessed or have followed the Bavaria story confused the Dutch company as official sponsors? While the campaign certainly distracted from Budweiser's sponsorship, the media has ensured that their association has remained in the spotlight.

It would be interesting to know the impact of such campaigns when dealt with in this way. The media coverage benefitted both Bavaria and Budweiser ultimately, providing exposure above and beyond what either company had bargained for. Due to the heavy-handed way in which South African government handle ambush marketing, Bavaria equally emerged as a sympathetic figure in the press, and the women arrested as victims of the law. Certainly there's more than meets the eye to this story...

Halfpipe Dreams...

Anyone out there know the rules about logos and brand names on snowboards at the Olympics?

With all of the fury surrounding ambush marketing, and the measures the IOC have put in place over the years in an effort to protect their sponsors, one couldn't help but notice the subtle marketing in play during yesterday's men's halfpipe competition. The Olympics have rules regarding the allowable size of trademarks and corporate logos, regulations which have extended as far as forbidding Team Canada's use of its traditional Hockey Canada logo, and restricting the size and visibility of equipment manufacturers' marks.

So it seems strange, then, that every snowboarder to take the hill yesterday made no secret of their sponsors, with names like Burton and Bataleon seemingly underlying every descent.

In past Olympic Games, it has been commonplace for alpine skiers to remove a ski and show off their sponsor to the camera while awaiting their results. In televised competitions, this ritual emerged over the past twenty years as an accepted and almost celebrated part of skiing, based on the willingness of broadcasters to show off each skier's gear. This year, however, there's been much less attention on the skis at the finish line than would be expected. Either broadcasters and organizers are getting wise to the marketability of winter sports, or the skiing community is taking a stand against ambushing. Which seems more likely?

Finally, this post would be incomplete without giving mention to snowboarding's golden boy Shaun White, whose performance yesterday in the halfpipe competition drew a line under just how far this sport has come in recent years, and how big an impact he has had. Snowboarding, while a popular adventure and counter-culture sport for decades, is finally expanding into the mainstream, and the advances being achieved across the competitive arena are amazing. White's emergence and talent have been a driving force behind snowboarding's rise, and both he and the sport are now reaping the rewards.

What It Means to Be Canadian

From Steve Keating & Clare Fallon (and with thanks to Kukla's Korner for the heads up)...

Hockey is more than a game to Canadians

To the International Olympic Committee (IOC) the sport is classified as "ice hockey." In Canada, which regards itself as the birthplace of the game, it is simply referred to as "hockey," and anyone describing it any other way risks a disdainful look or a puck in the head.

Check out the full article here. For anyone still unsure about the significance next month's Olympic tournament carries in Canada, rest assured, this is no rhetoric.

In The News...

As the rules of the game change, companies must do more to recognize the various forms of ambushing. With a clearer understanding, organizers and sponsors stand a much better chance of protecting their investment. With this in mind, we propose the following updated breakdown of ambushing, including its strategies and the threats to sponsors, rights-holders and event organizers.

Check out Business Insight's new piece on ambush marketing by Professor Simon Chadwick and I, our most recent work on ambush marketing here at CIBS...

Ambushed! Sponsors pay a lot to link their brands to sporting events. Then there are those who get those links for nothing.

The article highlights a new typology of ambush marketing, and a new way of looking at and understanding the methods and strategies employed by ambush marketers. With the Vancouver Games fast approaching, and the 2010 FIFA World Cup just around the corner, it should be interesting to see what new strategies may emerge, and which tactics take the most prominent roles in 2010...

Let the Games Begin...

The marketing circus that surrounds the Olympic Games started months ago in anticipation of the Vancouver Games. Several brands across Canada have already been called out in the media over perceived ambush marketing campaigns, including Roots, Lululemon, Sony, and countless others.

This week, we can add a new name to the list: Subway.



While Olympic organizers and partners, including market rival and Olympic TOP sponsor McDonald's, will surely take a less gracious view of Subway's rather innovative and suggestive use of star American athlete Michael Phelps in their advertising, it is hard not to appreciate the ingenuity behind the campaign.

Expect to see many more examples of brands entering the Olympic marketing fray around the world over the coming weeks. While the Winter Olympics traditionally attract less interest and fewer ambush marketing efforts as compared to the Summer Games, the opportunities presented by the North American market, the incredible focus Canada-wide on the Olympic hockey teams' fortunes, and the competitive balance across winter sports nations that has emerged in recent years, should make this February an attractive prospect for sport marketers.

Regular Service to Resume Soon… But First, a Much Belated Take on Tiger Woods!

The blog’s been dormant for quite a while now; a combination of work, vacation, and countless distractions have kept me from the regular updates I aimed for in starting BSM’s online presence, but with any luck, in the coming weeks and months, regular service will resume and the blog’s activity will grow in kind…

In the meantime, here’s a quick write-up that should have been posted a month ago. The following was written on the morning of December 12th, 2009, in a lounge in Amsterdam’s Schipol Airport, en route to Montréal for the holidays. The subject matter may seem a bit out of date, but the key arguments and concepts remain as relevant today as they were on that morning – whether the article stands the test of time, however, depends largely on how accurate it is predicting Tiger’s future as a brand…



The fall of the Tiger Brand??
December 12, 2009

The blog has taken a bit of a break in recent weeks, an unfortunate byproduct of the busy holiday season, and the increasing awareness and interest surrounding ambush marketing as 2010 fast approaches.

Nevertheless, in light of the current predicament Tiger Woods finds himself in, the media furor and speculation that currently envelopes his personal life, and the announcement that he will be stepping away from the sport which made him s billionaire, the future if the Tiger brand is s more than worthy topic with which to return.

As with all celebrity and athlete endorsements, the potential for negative press attention, scandal, and notoriety, are ever-present dangers for Tiger's commercial interests, and those of his sponsors. However, even with this threat in mind, few would have imagined the depths to which this story would delve, and the magnitude and multitude of allegations that would emerge following Tiger's car accident. How these events, and Woods' seeming admission of guilt through his press releases in recent weeks, will impact his brand and effect future earning potential, is a question which will surround the brand for possibly years to come.

Despite these concerns, however, there remains some cause for optimism for Woods and his commercial partners, overshadowed as it is by the negativity currently following the Woods name. Ultimately, in analyzing the future of the Tiger brand, and considering the impact Woods' transgressions may have, it should always be highlighted what makes up the core of Tiger's brand, and what he as an athlete and an endorser represent to the buying public. Although Tiger's relationship with his father has long been a key element of his brand image, and his own family life has become an increasingly used and focused-upon element of his character, his brand value is nevertheless based on his ability as a golfer, his steely determination and dominance, and his transferability between markets, demographics, and psychographics. Unlike other athlete brands that place great emphasis and derive considerable value from their family-life, such as David Beckham or Wayne Gretzky, Woods relies on his sporting prowess, and almost supernatural ability as a competitors to differentiate himself from other athlete brands, traits which must be re-emphasized and developed for Tiger to return to his marketing peak.

Interestingly, Woods' main sponsors have thus far remained relatively tight lipped, likely awaiting a more opportune moment to decode upon longer-term strategies, and how best to proceed with their partnerships with the athlete. Assuming each brand included morality clauses in their endorsement contracts, the companies will have the option to terminate the sponsorship should they feel it best to distance their brand from Woods. Others will face the challenge of returning Tiger to a saleable and marketable asset, which likely will rely heavily on his eventual return to golf, and a return to tournament winning and dominating form. When that will happen, and indeed if that will happen, remains to be seen.

Finally, it seems worth noting that with everything going on in the world - wars throughout the middle east, swine flu spreading across the globe, global warming talks coming to a head - the most significant and followed news story of the past two weeks has been that of Tiger Woods' personal life. Few athletes in history could command such hysteria and mass-interest, and even fewer golfers. Let there be no doubt of the impact Tiger has had on golf and the sporting world, and of the media and commercial interest that follows him. While his brand may be under threat currently, and his personal life in tatters, that we as fans and consumers care enough to follow such stories only serves to underline the potential value that remains in the Tiger Woods brand. How that value is leveraged, remains to be seen

Why Hockey Players Are Widely Considered the Best Guys in Sport...

A couple of great stories out of Montreal to commemorate Remembrance Day, and to honour soldiers past and present who have represented and protected our great country.

Cammalleri, Price Show Appreciation to Canadian Forces (TSN)
Cammalleri Scores with Armed Forces Tribute (Montréal Gazette)
Carey Price's Remembrance Day Mask (Habs Inside/Out)




Lest We Forget

Some Sunday Morning Reading...

For anyone wondering why the internal strife in the National Hockey League Players' Association continues to make the headlines, and how the NHLPA have struggled so mightily in the years following the 2004-05 lockout, here's a piece from CBC's Eliotte Friedman well worth reading.

To understand the battle raging inside the NHL Players' Association, you must recognize what's happening outside its walls.

Here's an example:

Last season, two players got into a heated debate about a collective bargaining agreement issue. Player A is an elite star who took a "hometown discount" to stay with his current team. Player B - very good, but not on the same level - was heading into free agency.

Every summer, the union has the right to bump the salary cap by five per cent via something called the escalator clause. It seems like a no-brainer, except there's a catch: it increases the amount players lose in escrow. So, Player A was arguing against it. For him, the discount cost even more. In addition to the money he left on the table, he was losing a larger chunk of what he signed for.

Player B argued the opposite. He was approaching his best chance to sign a huge free-agent contract. Never again, he felt, would he get this kind of an opportunity to hit the jackpot. He ferociously argued in favour of the escalator, wanting every dollar possible.

In the end, the rest of the team sided with Player B. But, there were angry exchanges and hard feelings.

On the surface, the fight inside the NHLPA is all about Paul Kelly's firing. But, it goes deeper than that. Right now, the union finds itself at a crossroads, in the middle of its most important decisions since the overthrow of Alan Eagleson. It's not only about who will lead - it's also about where to go with the next CBA, how to motivate a disinterested majority and how to rebuild an organization rife with distrust.

"I don't know how it got this bad," one player, active within the union, said this week. "We have a lot of work to do."

Keep reading here...

A New Direction in Athlete Endorsements??

Credit Darren Rovell over at CNNBC's SportsBiz for bringing this story to light this week.

MARKETERS have been playing a new, more cautious game when it comes to signing athletes as endorsers, winnowing their rosters of jocks peddling products to proven performers with national — or international — profiles like LeBron James, Tiger Woods, Peyton Manning, Serena Williams and Derek Jeter.

The rising costs of signing athletic talent to build brands — not to mention deals gone sour because of shortcomings in the professional or personal arena — have made advertisers wary of rookies, single-game sensations, one-season stars or even talents with local appeal.

So what is a player like Drew Brees, the quarterback of the New Orleans Saints, to do? He is no slacker, to be sure, but neither is his surname Manning.

Mr. Brees and his representative, Chris Stuart of Encore Sports and Entertainment, have signed with a company called Brand Affinity Technologies, which offers a Web site (brandaffinity.net) as a one-stop-shopping opportunity for advertisers seeking star power in more efficient, and affordable, forms.

Rovell makes a couple of key arguments about this new strategy - particularly questioning if short, small-pay endorsement deals are worth the risk to these athletes?? While they may open the door to more lucrative, meaningful commercial activities in the future, the risks certainly outweigh the potential for athletes earning above and beyond anything these endorsements can promise.

That said, there is nevertheless something behind this model. As the company argues, many valuable, marketable athletes are being overlooked both in regional and national markets, with the majority of athlete endorsement contracts going to the elite commercially-viable athletes. This is a chance for new partnerships to be formed, new athletes to come to light and test their brand value, and a new direction in sports marketing, away from the traditional reliance on only a select few. What remains to be seen, however, is how athletes and their representatives approach these opportunities: will they be seen as merely cash-grabs, a chance to earn some pocket change on their days off? Or rather, will athletes take a more strategic approach, and attempt to build their images and brands through the connections made by Brand Affinity Technologies?

Contentious? Controversial? Inspired?

Check out this article in the National Post yesterday, on a new book being released by former NHLer Bob Sirois on the systematic and institutionalized racism against French-Canadian hockey players in the National Hockey League. While I haven't yet had the chance to read the book, it certainly sounds like an interesting, if not controversial, read.

First, the important quotes:

... a book published Monday by former National Hockey League player Bob Sirois, examining four decades of professional drafts, comes to the explosive conclusion that francophone Quebecers are systematically thwarted by an "anti-francophone virus" plaguing the NHL.

Francophone Quebecers are wrongly disparaged as too small, too lax on defence and not suited to the robust "Canadian" style of play, Mr. Sirois writes in the book, published in French and titled Le Québec mis en échec (Quebec Bodychecked). "Myths, prejudices, stereotypes and favoritism make up an integral part of every draft session in the National Hockey League."

He concludes that francophones who are not first-line forwards, starting goalies or top defencemen are rarely drafted, and if they are picked, they do not last long. Looking at francophone Quebecers who played three or more seasons in the NHL, he found they were extraordinarily successful. Of the 176 players in this category, 42% won an NHL trophy or were named to the all-star team during their careers. "Only francophones of the highest level were able to have lasting careers; the other Québécois hockey players were quickly eliminated from the NHL," he writes.

The overall remedy he prescribes is twofold. He believes a return of professional hockey to Quebec City, as the city's mayor Régis Labeaume has been promoting, would increase the pressure on the Canadiens to be more representative of their province. He also proposes that Quebec field its own team at the World Junior Hockey Championship, saying the Canadian team regularly overlooks Quebec talent. A Quebec team would allow "our young elite hockey players to measure themselves against their peers from the other nations of the world," he concludes.

From a researcher's perspective, and even more from an academic perspective, Sirois' findings both intrigue and concern. While the research he's done provides evidence of what many have previously postulated - that Québecois hockey players are being overlooked, both at junior and senior level - the suggestion of causality is flawed. Without reading the book in full it is impossible to say, however based on the findings cited in the National Post, and the quotes attributed to the author and its reviewers, the implication behind the story appears to be that racism is the root cause of the declining numbers and involvement of French-Canadian hockey players in the NHL.

However, the study's results merely indicate that numbers are declining, and that top-level Québecois hockey players are being overlooked in the NHL draft, not WHY. Any number of reasons could be proposed, and indeed should be investigated, before accusing an entire league of institutionalized racism. The import of European and international players has directly coincided with the decline of Québec-born players, as has a shift in minor hockey in the province, towards a more recreational, less-competitive structure - a move in the exact opposite direct of Canada's other major hockey producing provinces such as Ontario and British Columbia. Moreover, legitimate concerns exist within hockey over the type of hockey being taught and developed in Québec's major junior system, where free-flowing, fast-paced, offensive hockey is the norm, and defensive systems and trap-based hockey is limited.

Moreover, as the game has changed over the past 20-30 years, so too have the roles played by certain provinces and countries in supplying talent to the highest levels of hockey. Following Patrick Roy's emergence and dominance between the mid-1980s and the 1990s, the butterfly style of goaltending he popularized, led to a widespread move towards Québecois goaltenders throughout the 1990s and into the 2000s. In other areas of Canada, where the stand-up style was more popular, the adaptation to the butterfly and the new dominant regime was slower. Today, however, the dominant goaltending style in the NHL is a hybrid of butterfly and stand-up, more reminiscent of Martin Brodeur's technique than Patrick Roy's, and is representative of the evolution of goaltending in other areas from stand-up to butterfly; from covering angles and stressing lateral movement, to being compact and square to the puck, covering the lower portion of the net. Without having the exact numbers in front of me, a quick look through current NHL rosters would indicate a relaxed reliance on Québecois goaltenders, as compared to 10 years ago. Sirois would be hard pressed to argue that racism has caused this shift.

Ultimately, Sirois' book presents both an interesting and likely contentious read. Of concern to Québeckers, the NHL, and the governing bodies involved, is that Québecois hockey players are incontrovertibly declining in the NHL. While racism has been, and will continue to be, cited as a key reason for this move away from French-Canadian players, it seems obvious that more research is needed into the actual and exact reasons behind this shift, dating back to the start of the NHL draft and the Montréal Canadiens' choice to take part in the draft with all other clubs, and not have first choice on the top Québec player each year...

The World Tour Continues...

The long periods of inactivity on the blog of late have been a bit disappointing, and it seems a lame excuse to blame it on absenteeism, but we will anyways. BSM's travels over the past two months show no signs of letting up, with the world tour set to tackle up to (potentially) four more countries in the run up to the holiday season, though there's still hope for a bit of normalcy before then.

In the meantime, a quick hit from the Toronto Star this morning, with all due credit to Damien Cox. While I've said more than enough over the summer on the Phoenix Coyotes' situation, and the NHL's mishandling of their franchises, and franchise values, Cox makes an interesting point in light of Phoenix's much celebrated sold-out home opener:

At an average price of about $20 (U.S.) a head and a free white T-shirt for everyone, you can fill a rink in Phoenix for an NHL game. That's about half the revenue the Alouettes get for a home game at tiny McGill Stadium. So if the Coyotes can find a league with the CFL's $4.2 million per team salary cap, they'll be in great shape.

That, in and of itself, should sum up the issues being faced by struggling NHL franchises. Here's hoping the powers that be wise up before long, for the sake of the league, the fans, and the game...

More quick hits on the NHL season so far from Cox here

Catching Up

BSM is back up and running, following a week on the road and largely successful trip to the 2009 European Association of Sport Management (EASM) conference in Amsterdam. After five days in Holland, a number of interesting and thought-provoking (and hopefully research inspiring) presentations, a second look at Ajax FC of the season, and a chance to outline some new ambush marketing research we've completed this year with the Centre for the International Business of Sport, the blog returns with a few quick items of note to get the ball rolling...

First, in the days prior to the EASM conference, CIBS completed our most recent contribution to the EASM e-Newsletter, reporting on the highlights of the UK sporting world from the summer that was. The following three captions made the final product, in typical blog form:

As British sport enters the fall and the Premier League season kicks off into full swing, we leave behind a turbulent and controversial summer, which called into question the success and stability of football finances, and integrity and honour of English rugby, and the future transfer dealings throughout Europe regarding young players. Further questions surrounding the future of Formula One motor racing and the downfall of sports broadcaster Setanta made for an uncertain summer season, and an interesting one for the sport management world.

To begin, the rugby world was rocked by scandal over the summer, following the incident since labelled ‘Bloodgate’ emerged in late April. During a Heineken Cup match between London-based club Harlequins and Irish rivals Leinster, substitute Tom Williams feigned serious injury by using an exploding fake blood capsule, allowing a substituted player to return to the field. Fall-out from the event led to Williams and Harlequins manager both being suspended and fined, with the manager, Dean Richards, resigning his post in shame, as well as sweeping rule changes throughout European rugby regarding blood injuries. While the incident has succeeded in casting light over a dubious yet acknowledged and common practice, the English rugby world has been left reeling by Bloodgate, undermining the typically gentlemanly and honourable sport’s ethics and reputation.
Clubs introduce blood injury code


Elsewhere, English football endured a difficult summer in transfer dealings, losing a number of high-profile star players to other leagues, not least of which the £80 million transfer of Ronaldo to Real Madrid, and the £30 million agreement between Real and Liverpool over Xabi Alonso. Following years of staggering spending by English clubs, and dominance in Europe over the past 5 years, the economic downturn, uncertain revenues, and the growth of the Euro as compared to the Pound left Premier League clubs little choice but to reduce spending. Estimates of total transfer spending decreased approximately 10% on the 2008 summer window, with Manchester City accounting for nearly one quarter of league spending. Moreover, 2009 saw considerable spending between English clubs, rather than purchasing high-priced talent from outside the Premier League, making net spending in England a pale shadow of previous years.
Transfers down as austerity closes window


Finally, following the close of the summer’s transfer dealings, English football was shocked by the news of Chelsea Football Club’s ban from registering new players by FIFA until January 2011. The two window ban on transfer dealings for the club come after the London side allegedly incited young French player Gaël Kakuta to breach his contract with Lens in order to sign professionally with Chelsea. The controversy and ruling have thus far had serious ramifications through English football, as other big spending clubs have equally been called into question over the influx of young European, South American, and African players being brought to England on professional contracts. Reports have emerged suggesting that European regulations over the signing of players under the age of 18 may be required to govern such transfers, however the success and feasibility of such legislation has yet to be seriously studied.

Chelsea banned by Fifa from signing players till 2011 over Gaël Kakuta

Elsewhere in the news, one story in particular has jumped out over the past couple of weeks, and not only because it's Liverpool related...

As well as equaling (and perhaps eventually exceeding, based on performance bonuses) Manchester United's record shirt sponsorship deal by agreeing a minimum £20 million per year deal with British bank Standard Chartered, rumours and rumblings have emerged suggesting that Standard Chartered will begin to sell Liverpool shirts in their branches in Asia, encouraging a partnership between sponsor and property unlike any other I know. Liverpool's efforts to tackle the Asian market in a swift and meaningful way will be buoyed by the new deal, and word that the club's partnership with Carlsberg and Danish brewer's extended deal with the club for stadium pouring rights, will only serve to reinforce Liverpool's new commercial orientation while maintaining the history, tradition, and community-focus that have underlined the LFC brand over the years.

Hopefully we'll have more to report on the new deal, and the impact the renewed relational approach Liverpool and Standard Chartered have adopted may have on future sponsorship deals, later in the week...

Drawing a Line Under an Embarrassing Summer

Prospect and mini camps are underway throughout the National Hockey League this week, with most main camps expected to open over the course of the next 7 to 10 days, announcing the long-return of hockey, and hopefully bringing to a close the embarrassing and belittling backroom politics and legal struggles that have marred the hockey world over the summer.

Yesterday's news of prospective Phoenix Coyotes bidder Ice Edge Holdings' removal of their anticipated bid means that, as things stand currently, when Judge Redfield T. Baum rules on the future of the organization later this week, the ownership of the franchise will either be transferred to the National Hockey League, allowing them to solicit and secure an owner of their choosing for the failing team, or to Canadian billionaire Jim Balsillie, making the possibility of a seventh Canadian franchise a step closer to reality.

Whatever the judge's ruling this week, the fate of the Coyotes is almost certainly still undecided. Appeals, prolonged legal battles, and the ultimate fate of the Phoenix franchise, be it finding a new owner willing to suffer the losses of an Arizona-based team, or the eventual relocation of the club to Hamilton and the potential conflicts with both the Toronto Maple Leafs and the Buffalo Sabres, will no doubt ensure that this story will continue long into the new season, with little hope of an amicable resolution with the best interests of the game in mind.

The best case scenario, at this stage, would be (in my opinion) an enforced compromise between the two parties, handed down by Baum and held up in appeals court. Award ownership of the club to Balsillie, on the condition that the franchise will stay in Phoenix while preparations are made to Copps Coliseum and the City of Hamilton, as well as any relocation fees, territory infringements on the Leafs and Sabres, and any unresolved personal issues between Balsillie and the league are dealt with. While in Phoenix, the league will split operational losses with Balsillie (as he has already suggested and agreed to, though the notion was quickly dismissed by the league).

Ultimately, after the summer that has been, and the constant back and forth between the league and Balsillie, neither party will escape as a white knight and saviour of the team. Balsillie has shown considerable disregard for the integrity of the league and the sophistication required to run a league by suggesting that he would move the team in mid-season, and has angered Bettman and the league by attempting to secure ownership through what they see as a back door. By contrast, the NHL have shown little respect or willingness to secure the best future for the club or the league throughout the process, treating the court proceedings and Balsillie's bid with disdain and irreverence. Rejecting Balsillie as an owner by vote demonstrated little more than how tightly-knit the Board of Governors is, and what old boys-club politics underline the business of hockey. Moreover, but setting a relocation fee for the franchise rumoured to be in excess of $100 million, the NHL has acknowledged that a Hamilton franchise would be worth more than one in Phoenix, and yet persist with a dream of conquering the Southern United States while dreaming of an ever-elusive national broadcasting rights deal with a major network.

Neither camp can claim a moral high-ground through the summer's events, and one can only hope that upon Baum's ruling, and the inevitable appeals that will follow, the best interests of the fans, the players, and league, and the owners will in some way be addressed. That said, I have my doubts, on all counts.

Elsewhere in league politics, the Players' Assoiation firing of Executive Director Paul Kelly may signal even greater uncertainty and strife in the future for the league, as the PA appear to aiming for a more hard-line, focuses stance going into negotiations for the next Collective Bargaining Agreement. While Kelly was widely regarded outside the union as having been doing a good job, he had seemingly fostered a working relationship with the league and formed a burgeoning partnership going forward. While details of his removal from duty have been hard to come by, there has been speculation that, as with Ted Saskin before him, Kelly had become too close to the league, leaving the players uneasy about any future negotiations. While Bob Goodenow was relieved of his duties for taking too hardline a stance in the last CBA talks, the union appears to be uneasy entering into too close a partnership with the league at this time, and are thought to be seeking an Executive Director prepared to guard the players' interests and rights above and beyond creating a partnership with the league.

Given the league's position in Phoenix, and the projected losses the league would be faced with should they gain ownership, and their objection to moving the franchise to a much more profitable, beneficial market such as Hamilton, one can hardly blame the players for being cautious in their dealings with the NHL. Given that player salaries are now tightly linked to hockey-related revenues, a fact which is unlikely to change in the next CBA, and the negative impact Phoenix has as compared to a Hamilton-based club, the PA's stance appears economically sound, if not the best publis relations. More news should be expected within the coming days and weeks regarding what happened between Kelly and union, but who the PA find to replace him should give a strong indication of any upcoming labour disputes, and the union's stance in builing a partnership with the league hierarchy.

Ultimately, while the return of hockey and the opening of training camps does little to address the legal concerns of the league, the ownership battle surrounding the Phoenix Coyotes, the on-going transfer saga between the NHL and the KHL, or the future direction of the NHLPA, it's it nevertheless a relief for all in involved that at last there's some hope of hockey's domestic issues finally taking a step back, and allow the athletes and games a chance to resume spotlight duty. That said, it would seem unlikely that we've heard the last of the NHL's troubles of this off-season...

Examining Athlete Brands... Part 3: Franchising Brand Beckham??

Reports out of New York this weekend indicated that David Beckham's long-term plans may involve ownership, with Montréal touted as a possible target for the England star and his investors.

According to a story in the New York Times on Monday, Beckham is believed to be considering, and perhaps in the early stages, of forming a partnership with the Saputo family in Montréal, owners of USL Division One team the Montréal Impact, and long rumoured to be interested in acquiring a Major League Soccer franchise. Reports previously had linked the Saputo family with former Montréal Canadiens owner (currently in the process of selling the club to the Molson family) and current Liverpool FC co-owner, George Gillett, whose interest in soccer following the purchase of Liverpool led many to believe a Montréal-based MLS side would be next.

However, Beckham's interest in forming a partnership with Saputo in the football hotbed that is Montréal merits following. As the Times note, included in Beckham's MLS contract, signed in 2007, is the option to become a MLS franchise owner in the future. Beckham's involvement in the sport beyond his playing career has long been a matter of debate, though his series of football academies have proven massively successful in promoting youth soccer and building Beckham's image in the United States.

Major League Soccer have already intimated future plans to expand the league, including hopes of capitalizing on Montréal's interest and the infrastructure already in place, with 2012 rumoured to be a likely target for further expansion in Canada. Beckham's ties to Los Angeles, however, including the formation and success of his football academy there and his links with current MLS owners and investors AEG, may ultimately impact Beckham's eventual retirement plans beyond any early links with the Saputos and the City of Montréal. It remains to be seen how serious Beckham is about becoming a future franchise owner, and what opportunities may present themselves when England's most capped outfield player finally announces his retirement from the game.

Quick Hits to Start September...

Just a couple of quick stories worth following from the world of sports that have emerged the last few days...

First, the National Hockey League Players' Association announced this week that Executive Director Paul Kelly has been let go. While details have been slow to emerge from the PA, a number of Kelly supporters, including former NHLers Pat Flatley and Glenn Healy, have resigned as a result of Kelly's firing. Allegations and rumours in the last couple of days have indicated that Kelly's firing may have been a result of the former PA boss reading the minutes of a confidential NHLPA summer meeting, causing distrust amongst the union and uncomfortable reminders of Kelly's predecessor, Ted Saskin. Expect more of the story to emerge as the news, and the reasons behind Kelly's release, spread through the full membership.

Also of note this week, world football governing body FIFA have imposed a two-window transfer ban on Chelsea FC for inciting breach of contract in signing a French teenager a couple of years ago. While the club has indicated they will appeal, the ruling and the entire situation will hopefully cast a bit more light on the at-times shady transfer dealings in football involving teenagers. It would be naïve to think that Chelsea are the only club guilty of encouraging a young player to break contract and sign for them. Looking out for younger players, and regulating moves involving teenagers in the professional ranks, is something that has to be looked at more deeply by football's governing bodies.

And lastly, Aprils' Bloodgate has rocked the rugby world this summer, with sanctions and suspensions coming down on Harlequins, Tom Williams, the offending player, and 'Quins director of rugby Dean Richards. New regulations to prevent a repeat of the incident, and a new mandate to protect against cheating in the sport have emerged, signaling a renewed interest amongst the sport's stakeholders to clean up the game and restore some integrity to what the gentleman's game.

Expect more reports on all three stories in the coming days and weeks, but equally take heart in the rather aggressive way in which the NHLPA, FIFA, and the ERC (rugby's European governing body) have reacted to the corruption and cheating that have marred sport of late. While there are still plenty of issues in sport to tackle, this is a step in the right direction...

The End of an Era?

September is here, and the transfer window across European football has closed until January, without much fanfare or event. In truth, deadline day become something of a non-event in most circles, with big money having changed hands early in the summer, and clubs looking mainly to fine tune their sides on the final day, rather than overhaul them.

However, the disappointment amongst many football fans eager for a major move raises an important question: have we seen the end of major transfer deadline days and trade deadlines in professional sport, or are we merely seeing the temporary effects of the worldwide economic crisis on sport?

The biggest deadlines on the world sport calendar in terms of player movement, historically, have been the football transfer window closing date(s), the National Hockey League trade deadline, and the Major League Baseball non-waiver trade deadline. Unfortunately, 2009 has seen each of these major dates come and go without much incidence, despite massive media coverage, countless hours of devoted television time, and fan and expert analysis to rival American politics.

In the case of the NHL, this year's comparatively slow deadline can likely be attributed to the salary cap, and teams edging ever closer to the upper-limit of spending. Whereas in previous years, teams with championship aspirations would load-up on talent and take on additional expiring salaries in hopes of winning the Stanley Cup, under the new economic regime, such acquisitions are no longer possible, making trades more difficult to execute. It will be interesting to see if, following next year's Winter Olympics and the attention surrounding hockey in Canada this season, the major Canadian sports networks (TSN, Sportsnet, The Score and RDS) devote the same time to the trade deadline as this past year, and run the risk of another 8 hour broadcast with little news to report.

Perhaps more disconcerting than the NHL's slowing in-season player movement, has been the diminished transactions and spending in non-salary cap restricted leagues such as Major League Baseball, or the English Premier League. Although an important date in the baseball year, and traditionally a day of many rumours and considerable movement, the MLB deadline is perhaps less alarming than the NHL or the European football deadline days. Given that baseball has struggled for years with competitive balance, and that a small number of clubs are able to spend exponentially more than lower level clubs on player salaries, the lack of major player movement is less worrying. That baseball allows moves following the deadline, with transactions based on waivers, and that a number of deals have since been completed in this way, can perhaps appease any worries fans may have.

However, football's slow transfer deadline, and indeed the overall financial figures surrounding transfers in British football this summer, paint a cautious if not unsettling picture of football's standing in the current economic climate.

Without going into great specifics, and not wanting to press the panic button too early and abandon hope of a quick recovery for professional sport, these two articles from the Telegraph and the Financial Times maps out the Premier League's limited spending power, and generally cautious approach to transfers this summer, much better than any analysis I could provide here.

Have we seen the end of big spending in sports, massive transfer deadline days, and unrelenting player movement? Or will Premier League clubs redeem themselves and save Sky Sports News the embarrassment of another uneventful, uninteresting news day in January by once again spending beyond their means, acquiring exciting international talent, and loading up the Premier League for a final 5 month push before next summer's World Cup? Only time will tell...

Much Needed Progress...

Meet the new face of the Boston Bruins marketing department (credit Kukla's Korner for the find):



For more on the ad campaign, and the efforts being made by the Bruins this summer, check out the Boston Globe's take (here).

For hockey fans everywhere, despite your allegiances, seeing key teams like the the Bruins and the Chicago Blackhawks returning to respectability and past glories has to be a welcome sight. Following the 2004/2005 lockout season, the National Hockey League has been too dependent upon the 6 Canadian franchises financially supporting the league. With serious recession problems in Detroit, a gradual rebuilding phase in Colorado, and the constant legal battles and ownership issues plaguing some of the league newer and more Southern entries, the league is in desperate need for strong, traditional hockey markets such as Boston, New York, and Chicago to meet their potential.

On the ice Boston and Chicago have made huge strides in the last two years; off the ice, Boston now follows Chicago's lead in making the game more available, more accessible, and more fan-friendly in their business approach, a promising sign of things to come...

10 Seconds or Less...

An interesting entry from Steven D. Levitt of Freakonomics fame, over at the bestselling book's blog (here). Levitt examines the progression and evolution of the 100 metre men's sprint, noting the relatively slow rate of improvement over the past 40+ years.

As Levitt notes:

Last week, the sprinter Usain Bolt ran 100 meters in 9.58 seconds, shattering the existing world record. For his feat, Bolt may just be named athlete of the year.

In some ways, what is more remarkable than Bolt’s feat is how slow the improvement has been in the 100-meter dash.

Back in 1968, Jim Hines became the first person to break the 10-second barrier, finishing the race in 9.95 seconds. In 1991, Carl Lewis got the world record down to 9.86 seconds. In 1999, Maurice Green ran 9.79 seconds. Asafa Powell ran 9.72 in 2008.

Thus, between 1968 and today, the world record time had improved by 3.7 percent, or less than 0.1 percent per year.

This is in spite of the fact that there have surely been technological advances in tracks and shoes, as well as expanding knowledge of weight training and fitness. The world’s population has increased substantially, as have nutrition levels, especially in developing countries.

The biggest puzzle to me is not how remarkable Usain Bolt is, but rather why it’s been so hard to get people to sprint faster.

Given the controversy in swimming and the technological advances "undermining" the integrity of the sport, it's surprising how slowly sprinting has developed by comparison. Advances in footwear, running surfaces, sportswear, training practices and diets haven't created the same progression as in other sports, making Bolt's accomplishments that much more incredible.

Is Bolt testing human potential? Or merely providing a catalyst for further improvement and an indication of things to come?