How can these multi-million dollar global companies, capable of hiring the best and the brightest, fail to maximize their brand potential? Because football clubs have lagged in recent decades, failing to truly penetrate the US and Asian markets, and are constantly paying intermediaries for the data and profits that should be theirs. Simon Cooper, author of The Barcelona Complex, summed it up nicely:
About 45% of the world’s population lives in four countries: China, India, Indonesia and USA. Barcelona and Real Madrid had more than five times as many fans as America’s number one sports team, the Los Angeles Lakers, and more (as of 2016) than all NFL teams combined. Companies like McDonald’s and Amazon have always tried to turn their customers into fans. Barça had the opposite problem: they had to turn supporters into customers. A fan in India can walk around in a pirate Messi shirt and watch all the team’s games at a local bar without paying a single rupee at the club. If he was one of more than 100 million Facebook followers in Barcelona, then Facebook had his personal details, not Barcelona. Barca might not even know the guy’s name.
If Barca could turn their fans into customers, they would be less dependent on sponsors, TV rights and ticket sales in the future. This is where the whole football industry is headed, as one executive told me: “Instead of selling to sponsors and TV companies that were selling to fans, cut out the middleman and sell direct to fans.” Superclubs need to start thinking digitally startups“.
These clubs have millions, if not billions of dollars in revenue, but the stagnant business is dying. La Liga viewership is down 30% from the 2018-2019 season, with just 7.5% of viewers in the 13-24 age bracket. Needless to say, these are alarming numbers, especially for someone like Florentino Pérez who knows the true power and value of a club brand. The president suggested as much in his infamous interview on why the Super League was created.
Formula 1, the premier class of international motor racing, suffered a similar downturn in 2008. However, since then the sport has changed and become a perfect example for Florentino and the creators of the Super League.
In 2008, Formula 1 was managed by Bernie Ecclestone. This sport was one of the most popular in the world and was at its peak. But 2008 was the peak year for F1 under Ecclestone. The British business mogul failed to acknowledge the underlying issues that led to a drop in viewership, sponsorship and overall profits. By 2016, the last year of Ecclestone’s reign, F1 had lost more than 200 million fans and was 40% less popular than in 2008.
Among the many factors that led to the demise of Formula 1, one of the main catalysts was Bernie Ecclestone’s utter disregard for the potential next generation of F1 fans. In an interview with Campaign Asia-Pacific magazine, Ecclestone said the following:
“Younger children will see the Rolex brand, but will they go out and buy one? They can’t afford it. Or our other sponsor UBS – those guys don’t care about the bank. They don’t have enough money to bank anyway. That’s what I think. Most of these children have no money. I prefer to speak to a 70-year-old man who has a lot of money. So there is no point in trying to reach these kids because they won’t buy any product here and if the marketers are targeting this audience then they probably should advertise with help. from Disney,” he said.
In 2016 Liberty Media acquired Formula 1 and changed strategy to expand the geographical footprint and better monetize the existing fan base. This is the strategy of Liberty Media, which in the coming years will be studied by the best specialists in the field of sports management. They relaxed social media rules and allowed race teams to use more “behind the scenes” footage, they included fan festivals at races with concerts and other family events. They have improved TV angles. And, of course, the biggest driver of Formula 1’s newfound success was the partnership with Netflix and the documentary series, which was a smash hit and was a real catalyst for the growth of the sport, especially in the United States. United.
Formula 1 fans are expected to top one billion by 2022, and since buying Liberty Media in 2016 it has achieved the following results:
The average age of an F1 fan is 32.
77% of new fans are under 35
Fastest growing social media activity in any sport in the world
Capturing the American market by allowing ESPN to broadcast the races for free.
Added a new track in Miami and increased US race day attendance by more than 50%. Plans are underway to add a third US runway in Las Vegas.
F1 share price up 250%
There’s no reason the success of Formula 1 can’t be replicated in football. Every club in the world has ample opportunity to enter the under-monetized markets of the United States and Asia. Perhaps more concerning is the lack of growth among young fans. According to the study, young sports fans perceive the game differently: they watch highlights rather than full games, they prefer to communicate on social networks and they want to watch the big stars. The generation is consuming online content rather than watching the full game. The cost of TV deals will drop if this trend does not change.
Florentino Pérez had the right intentions in creating the Super League, which ended up being a flawed product. Football really needs a change and clubs want to have more control over their financial future and not depend on UEFA and other intermediaries. Clubs are looking for content that will appeal to a new generation of fans.
Source: Sport
I am Sandra Jackson, a journalist and content creator with extensive experience in the news industry. I have been working in the news media for over five years. During this time, I have worked as an author and editor at various outlets producing high-quality content that attracts readers from different demographics.
