Global Success Strategies: Applying What We Have Learned

Professor Shropshire The Global Business of Sports Module 7.0

What is next? How can a sports enterprise achieve global success?

Climate is what you expect, weather is what you get. Mark Twain

Lecture 7.1

Global sports

International league possibilities?

The Flat World and Sports

Participation in the business and practice of professional sports in the US has become global International players now account for sizable portions of professional sports rosters Leagues have tried (with varying successes) to reach a global audience Successful: World Baseball Classic? NBA China? F1? Unsuccessful: NFL Europa Outside the U.S. coming in? Involvement of foreign players adds to global appeal of leagues and specific sports; this aids in the creation of a global product

Elements
What team sport will the world buy? Individual easier? Why? How do you deliver that sport successfully? How do you control finances? How do you sustain the success? Impact of athletes

Global Labor and Product Markets: Redux

Global labor markets create a virtuous circle
Revenue increase

Talent

Sport more enjoyable

Money

Global sport product Export through media rights and exhibition matches played in foreign markets, but local loyalties matter
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What sport will the world buy?

The already successful?
Soccer? Football ? Cricket? Basketball?

A new sport?

Reviewing Success
Financial vs. Popularity Projecting future demand? Profitability? Building equity

Case: MLS Join the elite?

Football is the worlds sport, is MLS the missing link? "By 2022," MLS Commissioner Don Garber said at his annual state of the league address of his ideal for the league to be amongst the world's elite. "That's our goal. "I'm not saying we'll be the biggest league in the world but we believe we will be one of the top leagues."

Global Sport Product: Existing League Efforts

NFL
Games at Wembley Much like F1 foreign viewers exist, product is scarce Few games makes it hard to play in Britain; tough for fans to grasp

MLB & NHL

Easier because of already strong pockets of global interest and more games to spare

NBA
Friendly foreign games Strong international interest Chinese government plan: basketball court in every village

EPL
Cherished symmetry not likely to be relinquished; foreign media rights bring in ~$3 B annually from 2014-17

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Recall the Steps for Success?

Global Labor Markets create a virtuous circle
Talent follows money, making the sport more enjoyable to watch, which increases revenues

Global Sport Product?

Export through media rights, but local loyalties matter

Recap Multiple global team sports efforts exist but none capture the entire globe

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Lecture 7.2

Economics and Barriers

Success Traits

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How to avoid this fate?

Economics: Controlling Spending

Salary Caps Financial Fair Play Regulations Good business practices What is the primary tension?

Barriers to Entry

Capital

Talent

Facilities

Five Traits of Successful Leagues

Audience appeal

Media presence
Deep-pocketed ownership Location in appropriate markets

Strong leadership

Audience Appeal: Entertaining for a Broad Demographic

Audience Appeal: Celebrity

Audience Appeal: Talent and Facilities

Audience Appeal: Youth Sports

Media Presence

Deep-Pocketed Ownership

Location in Appropriate Markets: Live Gate

Strong Leadership

What do you think?

Is there an existing sport that can capture the world?
Is there an existing league

Will a new sport emerge to capture the globe? Is world dominance by a team sport impossible?

Parting Shot
Frameworks: Remember to use the frameworks we have developed in this course to study the various aspects of the business of sports. Be sure to keep an eye out for Brazil and other major sporting events taking place worldwide using the lens of our Global Business of Sports class. We look forward to having you in a future class on the Coursera platform. Thank you for introducing new topics of interest to us, such as Music as sports branding and Joint/Russian Ukrainian football league, which are great followup discussions and research interests for our team.

Recap
Weve analyzed the elements needed for global sports success. A truly global team sports model may evolve as the world flattens and shrinks.

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Thank you
For playing your part in The Global Business of Sports Continue the conversation via: 1) The Forums and/or on 2) Twitter: #globalsportsbusiness Professor Shropshire @kenshropshire 3) Facebook: Like the Wharton Sports Business Initiative