New American Mainstream in Baseball Report by Juan DelaRoca

THE NEW AMERICAN MAINSTREAM IN BASEBALL

NEW AMERICAN MAINSTREAM IN BASEBALL CHECKLIST

TABLE OF CONTENTS About This Report Glossary Executive Summary Introduction: Future of U.S. Hispanic Sports Business The Setup Cross Cultural Influence of Baseball Defining the New American Mainstream Geography Population Acculturation Language Consumer Digital Technology Adoption Current State of Baseball Participation in U.S. Youth Baseball

04 05 07 09 11 13 15 18 21 25 28 32 35 35

State of Retail Baseball Sports Equipment Cross-Cultural Baseball Heritage Caribbean Series World Baseball Classic Cultural Fault Lines of Professional Baseball Business Athletes Attendance Concessions Digital Media Merchandising & Promotions Sponsorship Conclusion Contributing Authors

38 38 42 45 48 51 57 60 63 66 71 74 76 77

NEW AMERICAN MAINSTREAM IN BASEBALL ABOUT THIS REPORT This report examines quantitative and qualitative information to understand the influence multicultural sports consumers, especially Hispanics, have on the business of baseball. All of the information contained in this report was gathered and analyzed by a team from the Ohio University Professional Master of Sports Administration (PMSA) class of 2014. Contributing authors are Juan Alberto DelaRoca, Aaron Lavorato, Chelsea Wilson, and Ken Troupe. The report was copy-edited by Josh Griffin, and graphic design by Britton Spark.

ABOUT THE DATA The data analyzed in this report were drawn from multiple resources including, ethnographic fieldwork, supplemental sports industry data and consumer segment data mined from Pew Hispanic Center, and U.S. Census. All citations and sources are included in the report. The insights, opinions, and comments shared here are those of the authors and do not represent persons or organizations mentioned in this report.

NEW AMERICAN MAINSTREAM IN BASEBALL

GLOSSARY The terms “Latino” and “Hispanic” are used interchangeably in this report. All references to whites, blacks, Asians and others refer to the non-Hispanic components of their respective population. “Foreign born” refers to persons born outside of the United States to parents neither of whom was a U.S. citizen. Foreign born also refers to those born in Puerto Rico. Although individuals born in Puerto Rico are U.S. citizens by birth, they are included among the foreign born because they are born into a Spanish- dominant culture and because on many points their attitudes, views and beliefs are much closer to Hispanics born abroad than to Latinos born in the 50 states or the District of Columbia, even those who identify themselves as being of Puerto Rican origin. “Native born” or “U.S. born” refers to persons born in the United States and those born abroad to parents at least one of whom was a U.S. citizen. This report also uses the following definitions: New American Mainstream: Led by the growing statistical and buying power of blacks, Latinos, and Asians, the New Mainstream is a loose coalition of minorities who have been forced to forge their own identity in American culture—even as they use and consume goods and services targeted to the general public. This shift in consumer buying power is not only transforming how products are developed, marketed, and bought, it also illustrates that diversity is the driving force of American capitalism. Language dominance is a composite measure based on self-described assessments of speaking and reading abilities. Spanish-dominant persons are more proficient in Spanish than in English, i.e., they speak and read Spanish “very well” or “pretty well” but rate their English speaking and reading ability lower. Bilingual refers to persons who are proficient in both English and Spanish. English-dominant persons are more proficient in English than in Spanish. “Cultural Branding”: refers to brands that attain the status of icons in consumer society operate at the cultural level. And more than merely reflecting people and the times in which they live, iconic brands offer myths that help resolve the contradictions of society; they’re channels for expressing desire and relieving anxiety.

“Cultural Networks”: refers to where people are connected by membership in a particular cultural sphere. This membership is intrinsic to how consumers self identify. “Interacculturation”: refers to when a new culture is introduced into a host culture, each inevitably affects and influences the other. One culture’s art, ideas and traditions will acculturate the other. The result is a constantly evolving mainstream society that is fueled by interconnected cultures. Source Between Two Worlds: How Young Latinos Come of Age in America (2009). Washington D.C: Pew Hispanic Center Source: The New Mainstream: How the Multicultural Consumer is Transforming American Business. (2005). Harper Business. Garcia, G. Source How Brands Become Icons (2004) Harvard Business Review Press: Holt, D.

EXECUTIVE SUMMARY

NEW AMERICAN MAINSTREAM IN BASEBALL

EXECUTIVE SUMMARY BACKGROUND The New American Mainstream in Baseball Report is designed to guide sports business executives on the cultural nuances of the U.S. Hispanic market. Today, there is a need to gain a more holistic understanding of the role cultural behavior play with multicultural consumers. This means taking an analytical approach to uncover the impact Hispanic Americans have on the sport of baseball, which serves as launching point for engaging with multicultural America and economy as whole. Now that we live in a world of vast consumer data, it becomes important for sports marketers to recognize and discover cultural insights that can benefit the business of sports, and in particular baseball. This is what we set out to do in compiling and analyzing the information contained in this report. The New American Mainstream in Baseball Report looks to help sports business executives and marketers gain a more comprehensive understanding of the U.S. Hispanic market. Our approach looks at the growing socioeconomic clout of Hispanic Americans in eleven MLB Hispanic DMA’s (Designated Market Areas), and overlays it with trends in baseball youth participation, sporting goods retail, and MLB attendance to get a broader understanding of Generation Y Hispanic baseball fans and consumer confidence. Examining socioeconomics at the household income levels, through primary and secondary sources, geographic density and proximity to MLB ballparks, The New American Mainstream in Baseball Report provides sports marketers with a cultural guide to begin seeing, planning and engaging with the U.S. Hispanic market beyond just soccer. Here are some highlights explored in greater detail in the full report.

SOCIOECONOMICS In looking at four of the top Hispanic baseball DMA’s (Los Angeles, New York, Miami, Houston) highlighted in this summary, approximately 29% of the Hispanic American households have incomes of $50,000 or more. All together there are 15 million of these upscale Hispanics in the United States, and expected to grow to 35 million by 2050. This is the future of Major League

Baseball because 75% are under the age of 45 and 77% households with 4 or more people. Most of them, 60%, live in the Southwest and Pacific Regions.

GEOGRAPHY The Hispanic American population is not a single, monolithic culture as the segments composition is continually shifting by nationality along with geographical center. Specifically, this report identified the following DMA’s as representative of providing the most influential Hispanic American markets on Major League Baseball. They are: Chicago, IL, Dallas - Houston TX, Denver, CO, Los Angeles, CA, Miami, FL, New York, NY, San Francisco - Oakland CA, and Washington D.C/Baltimore.

POPULATION

Immigration from Latin America has slowed in the last decade, and native births now fueling U.S. Hispanic growth. According to U.S. Census, more than 60 percent of Hispanic Generation Y—about 10 million people—is U.S. born, and every 30 seconds another Hispanic teen turns 18. Generation Y MLB fans account for 18% of the adult population, and of that 83% more likely to be Hispanic than all MLB fans.

ACCULTURATION

Acculturation rates across some of the five top Hispanic baseball DMA’s that indicate that nearly 34% of all Hispanic Americans consider themselves bicultural, meaning they identify with both American and Hispanic cultures equally. This number in population size is nearly 7.3 million consumers across the baseball markets reviewed in this report.

LANGUAGE

Of the total 50+ million U.S. Hispanics, 27.9 million of them are Bilingual English (preferred), Bilingual English & Spanish, or Bilingual Spanish (preferred). In the five top Hispanic baseball markets (Los Angeles, New York, Houston, Miami, Chicago) they are 62% of the population. Source Geoscape American Marketscape Datastream 2012 Source Scarborough Sports Marketing Major League Baseball 2013 Source Nielsen America’s New Upscale Segment: Latinos 2013

INTRODUCTION: FUTURE OF U.S. HISPANIC SPORTS BUSINESS

NEW AMERICAN MAINSTREAM IN BASEBALL INTRODUCTION: FUTURE OF U.S. HISPANIC SPORTS BUSINESS Baseball is well positioned to be the professional sport that pivots sports marketing away from focusing on soccer when it comes to the U.S. Hispanic market. Getting marketers thinking beyond “Hispanics and soccer” is important because it doesn’t reflect the reality of multicultural America sports fans. Major League Baseball can be a leader in engaging a more diverse U.S. sports fan base. Baseball is a reflection of the American Dream, and for generations has paved the way for new immigrants to assimilate into U.S. society. However, this has changed with the arrival of bicultural Hispanic American sports fan. These consumers challenge the status quo, or stereotypes, in sports business, which are that Hispanics only respond to soccer related sponsorship activations. Drawing on cross cultural influences, bicultural Hispanics are picking from a wider set of sports interests and creating a new American mainstream sports fan in the process. The continued and sustained involvement of Hispanic Americans in baseball is crucial to the long-term success of the game. Forbes Magazine reported in December of 2013 that MLB generated revenue in excess of $8 billion, an all time record, and next year, thanks to new TV revenues coming online, the figure could approach $9 billion. Attracting and retaining Hispanic baseball fans may influence youth baseball participation, baseball sporting goods apparel and equipment sales, and local DMA’s throughout the United States where MLB has a presence. Fortunately, a shared appreciation for baseball culture and heritage between United States and Latin America exists that allows the game to continue being “The National Pastime” as the new American mainstream evolves. Like bicultural Hispanic Americans, baseball does not assimilate from one culture to the next. The game promotes acculturation into the American way of life. The New American Mainstream Influence on Baseball Report looks at and analyzes the socioeconomic impact of the U.S. Hispanic consumers and makes the argument the “national pastime” marks the best opportunity to broaden multicultural sports marketing engagement. Through a blending of secondary data and preliminary ethnographic analysis, this report’s goal is to highlight how this consumer segment will shape the economics of baseball in the years ahead.

THE SETUP

NEW AMERICAN MAINSTREAM IN BASEBALL THE SETUP The National Pastime is today considered the second most popular sport behind American football. Baseball can recapture its place as the “American national pastime” in professional sports by tapping into multicultural, especially Hispanic American, fans. Increasingly across the United States, multicultural sports fan, are changing the social order of business. The recent census figures confirm that African American and Hispanic American are the current, and future, population growth markets in the United States. Backing this claim up, we share the following information according to Geoscape, American Marketplace report:

• 65% of all U.S. Hispanics are Millennials • Represent 21% of the entire Millennial population • In Los Angeles, Miami, Houston, New York and Chicago, they represent 25% to 50% of all Millennials

Census data tells us that baseball has already passed the “tipping point” in terms of where Hispanic baseball enthusiasts have become the new mainstream fan and participant. Growth of the baseball industry is now driven by the spending behaviors of Hispanic ball fans. Sale of baseball apparel and equipment, along with MLB sponsorship, ticket, merchandise, food and beverage revenue all symbolize the future of the game and national identity.

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CROSS CULTURAL INFLUENCE OF BASEBALL EQUIPO ROCA

NEW AMERICAN MAINSTREAM IN BASEBALL

CROSS CULTURAL INFLUENCE OF BASEBALL Beginning in the 1950s, multicultural athletes began forever altering the American sports landscape by becoming leaders in their respective game, and baseball led the charge. Men like Jackie Robinson, Satchel Paige, Roberto Clemente initiated greater social inclusion and set up future opportunities for players such as Fernando Valenzuela, David Ortiz, and Mariano Rivera. Even until today, multicultural influencers in sports continue to transcend social boundaries and define pop culture in many cases. If you spend time in any major urban market, you can’t help but notice a large number multicultural youth at any local city park and/or recreational facility. Multicultural youth, with Hispanics leading the way, are establishing the new American mainstream by increasingly populating the youth sports market. Sports, especially baseball, provide American society with a sense of self-worth. Multicultural sports fans increasingly see more of themselves on and off the field. Achievement and success are two positive traits that suggest prestige or pride in multicultural fans. Baseball as sport best represents the idea of potentially achieving the American Dream. Culture and sports mesh well together in the multicultural urban existence because of their recombinant qualities. They stoke the flames of ethnic pride while helping shape the national identity of mainstream of American society. Hip-hop’s influence on youth culture has enhanced the ability for multicultural youth to identify themselves on the field of play in American society. In fusing together music and sports multicultural youth set the tone to consumer trends, and have the potential to expand the scope and reach of the national pastime. Hip-hop helps bridge the generational divide that tends to separate those who like baseball and those who don’t. This may have been what ESPN was thinking in October of 2011 when they invited rapper J Cole to revamp the theme song to “Baseball Tonight” from a classical to a more urban sound. “I had the honor and privilege of remaking the legendary theme song. It’s a classic. The old one was more Mozart. This is more like Lil Jon.” 1 The merging of both baseball and the hip-hop lifestyle helps the game connect with urban youth in a more meaningful way. Rap artists, such as Lil Wayne,

Nelly, Game, and Jay Z, have all used baseball to tell their personal stories of success in life. (See attached videos) and of being a part of the mainstream narrative. By incorporating the sport into their music, they’re telling society at large the game holds a place in their unique identity. Hip-hop artists use baseball to explain the relevance of the urban, ethnic and sports experience for multicultural consumers. In looking at the case of Jay Z specifically, he has already become the next evolution of sports agent who understands the U.S. multicultural market. The artist announced in April of 2013 his company Roc Nation Sports, partnering with Creative Artists Agency, intends to build an athlete representation business. The first marquee athlete signed was Dominican ballplayer Robinson Cano of the New York Yankees, and he continues to court other multicultural MLB players. Jay Z stated about the move, “because of my love of sports, it was a natural progression to form a company where we can help top athletes in various sports in the same way we have been helping artists in the music industry for years.” His ability to create Roc Nation Sports demonstrates the evolving nature of the sports industry in the United States. This endeavor is helping prove that bicultural Hispanic baseball players are an important element to the long-term health of the game. While Jay Z may have his detractors, this is simply an extension of a life story that resonates with multiculturals, especially Hispanics, because it symbolizes achievement and progress. This is why the Co-Head of CAA, Michael Levine took a chance to partner with the artist. “Jay Z and his team at Roc Nation have successfully orchestrated powerful brand and business-building opportunities for their clients. We look forward to combining our wide reaching resources on behalf of top athletes clients like Robinson Cano to help them accomplish their goals on and off the field.” Fortunately, between the inflow of Latin American baseball talent and the burgeoning U.S. Hispanic youth population, a new crop of multicultural ballplayers is poised to become the next generation of stars in the sport. Guys like Yasiel Puig, Yoenis Cepedes, Manny Machado, and Salvador Perez can be expected to draw and retain Hispanic baseball fans in the years to come.

Burgess, O. (2011, June 1). J Cole Revamps the Theme for “Baseball Tonight”. Hip Hop DX. Retrieved from http://www.hiphopdx.com/index/news/id.15365/title.j-cole-revamps-the-theme-for-espnsbaseball-tonight 1

DEFINING THE NEW AMERICAN MAINSTREAM

NEW AMERICAN MAINSTREAM IN BASEBALL

DEFINING THE NEW AMERICAN MAINSTREAM The national economic recovery since 2008 can be largely attributed to positive socioeconomic contributions of the U.S. Hispanic market. In 2013, Hispanic buying power reached $1.3 trillion dollars, and expected to grow ever more as U.S. born Hispanics continue to outpace others. Since 2000 data confirms there is a rising rate in Hispanic household affluence. There are no signs of things slowing down because 1 of 6 in the United States is Hispanic, and about one every thirty seconds turns 18.2 There are various consumer categories where Hispanics over index and lead consumer trends which affects the American economy as a whole. Food and beverage, automotive, consumer technology, and fashion and apparel are all where multicultural trends, with Hispanics exerting the most cultural influence, which is creating a new American mainstream. This has largely to do with two things that have traditionally defined The American Dream, homeownership and small business. Hispanic Americans are active participants in the American economic recovery since 2008.

are currently about 3 million of them, according to the U.S. Hispanic Chamber of Commerce.5 Among all U.S. Hispanic households, nearly 40% earn greater than $50,000 in household income. Furthermore, Hispanic business owners are 66% more likely than Hispanics overall to earn between $100,000 - $150,000 and three times more likely to earn in excess of $150,000.6 The new American mainstream led the American economic recovery, and will contribute to its direction in the decades ahead. In analyzing all of this data, we can begin to see that Hispanic youth participation and Major League Baseball fandom in baseball reflects the current state of the American economy and health of the sport. Looking at the top ten Hispanic baseball DMAs we found that Hispanics are the New American Mainstream because of population size and economic contributions. Growth in the affluent segment allows baseball to position itself as the sport of success and achievement.

In the 100 largest metro areas in the U.S., there were 1.7 million more Hispanic homeowners in 2010 than in 2000, a growth rate of 51.7%. In contrast, nonHispanic Whites increased by 1.2 million, a growth rate of only 3.7%.3 All of this is being driven by greater numbers of Hispanic households moving into the $50-99k and $100k+ income brackets. About 45% of the total affluent U.S. Hispanic market concentrates in in five baseball DMAs: Los Angeles, New York, Miami, Houston, and Chicago.4 Meanwhile, the rise in household income affluence can be attributed to the rapid rise in Hispanic owned businesses nationally. Hispanics represent the fastest-growing segment among U.S. small businesses. From 2002 to 2007, the number of Hispanic-owned companies grew by nearly 44% to 2.3 million. There AHAA: The Voice of The Voice of Hispanic Marketing. (2012). Hispanic Fast Facts. Retrieved from http://ahaa.org/default.asp?contentID=161

The National Association of Hispanic Real Estate Professionals. (2012). State of Hispanic Ownership Report. Retrieved from http://nahrep.org/downloads/state-of-homeownership.pdf

The National Journal. (2012, September 10) Hispanic Sector Finding Affluence in Owning Businesses. The Next America: How Demography Shapes the National Agenda. Retrieved from http://www. nationaljournal.com/thenextamerica/economy/hispanic-sector-finding-affluence-in-owning-businesses-20120910 4

5 The National Journal. (2012, September 10) Hispanic Sector Finding Affluence in Owning Businesses. The Next America: How Demography Shapes the National Agenda. Retrieved from http://www. nationaljournal.com/thenextamerica/economy/hispanic-sector-finding-affluence-in-owning-businesses-20120910

Geoscape. (2013). Hispanic Businesses & Entrepreneurs Drive Growth in New Economy. Geoscape and United States Hispanic Chamber. Retrieved from http://www.geoscape.com/HBR/pdf/Geoscape_ HispanicBusinessOwners_FINAL.pdf 6

Number of Hispanic Owned Businesses in the U.S.

2002 - 1.57 million 2007 - 2.26 million 2013 - 3.16 million

Average Annual Percent Increase in Number of Hispanic-Owned Firms versus All U.S. Firms

Among all U.S. Hispanic households, nearly 40% earn greater than $50,000 in household income. Comparatively, 56% of Hispanic business owners earn greater than $50,000 in household income. Furthermore, Hispanic business owners are 66% more likely than Hispanics overall to earn between $100,000 and $149,999 and three times likely to earn in excess of $150,000.

Hispanic Household Wealth Statistics

Year 2007 - 2013

Total 3.14%

Hispanic 6.66%

2002 - 2007

3.55%

8.72%

Household Income

All Hispanic Households

Hispanic Business Owners

<$25k

28%

$25 - $49k

30%

36%

$50k - $74k

19%

15%

$75k - $99k

11%

12%

$100k - $149,999

15%

>$150k

14% Hispanic Small Business Owners vs. All U.S. Households

Hispanic Small Business Owners vs. All U.S. Households Household Income

All U.S. Households

Hispanic Business Owners

Index

<$25k

16%

$25 - $49k

49%

44%

$50k - $74k

17%

15%

$75k - $99k

14%

12%

$100k - $149,999

12%

15%

125

>$150k

14%

167

Nearly 30% of Hispanics who identify themselves as small business owners earn more than $100,000. Comparatively, 20% of all U.S. households earn more than $100,000 annual income.

Total Sales Receipts for Hispanic Owned Businesses Year: 2002

$245 Billion Year: 2007

$358 Billion Year: 2013

Rates of college attainment and enrollment among Hispanics has been on the rise since 2000 Attained a bachelor’s degree or more (ages 25 and older)

2011 - 13%

2000 - 10%

Enrolled an undergraduate, graduate, or professional student

2011 - 33%

(ages 18-24)

2000 - 20% U.S. Census Bureau’s 2011 American Community Survey

$468 Billion Source: 2013 Hispanic Businesses & Entrepreneurs Drive Growth in the New Economy – Geoscape and U.S. Hispanic Chamber of Commerce

GEOGRAPHY

NEW AMERICAN MAINSTREAM IN BASEBALL GEOGRAPHY There are many layers to the Hispanic American population, and its cultural composition is ever evolving along to form pockets of growth throughout the United States. Put simply, the Hispanic American population is the majority in the top 10 U.S. markets, and expanding into smaller DMAs. This means the baseball industry must be cognizant that regional differences in nationality may or may not affect strategic marketing efforts from a macro global to local perspective. Baseball will need to retain the interest of Hispanic fans in order to remain profitable in the decades to come. Fortunately, the strength of the Hispanic baseball market is that the population resides in all the major U.S. DMAs. As a result of Hispanic population size in comparison to total population, these markets are the future of American baseball. In order to illustrate the role of urban proximity in cultivating baseball in the United States, in the form of Major League Baseball club, we compare population size in relation to ballparks. Three of the top ten Hispanic baseball markets has two teams, and first four have Hispanic populations of 2 million plus. The demographic shift leaves baseball no choice but to use cultural branding techniques to retain and create lifelong baseball fans. Knowing what is happening in the top 10 Hispanic baseball DMAs means we can advocate targeting efforts for brand and team marketers around media planning, promotions, events, sampling, and B2B/B2C sponsorships.

Denver Hispanic Pop. 609,000

San Francisco - Oakland

Share Hispanic Among Pop.

Hispanic Pop.

23.2%

1,114,000 Share Hispanic Among Pop. 22.5% Share Among Hispanic Pop. 39.6%

Phoenix

Chicago

New York

Hispanic Pop.

2,062,000

4,317,000

Share Hispanic Among Pop.

21.5%

24.2%

Share Among Hispanic Pop.

Share Among Hispanic Pop. 42.5%

39.6%

Share Among Hispanic Pop.

Washington DC/MD/VA

29.5%

Hispanic Pop.

1,163,000

807,000

Dallas

Share Hispanic Among Pop. 30.0%

Hispanic Pop.

Share Among Hispanic Pop.

1,809,000

30.6%

Share Hispanic Among Pop.

Share Hispanic Among Pop. 14.3% Share Among Hispanic Pop. 54.4%

28.4%

Los Angeles

Share Among Hispanic Pop.

Miami

39.5%

Hispanic Pop.

Hispanic Pop. 5,804,000 Share Hispanic Among Pop. 44.8% Share Among Hispanic Pop. 42.2%

1,627,000

San Diego

Huston

Hispanic Pop.

Share Hispanic Among Pop. 64.7% Share Among Hispanic Pop.

1,021,000

4,317,000

Share Hispanic Among Pop.

32.5%

36.7%

Share Among Hispanic Pop.

35.9%

40.0%

65.8%

Source Pew Hispanic Statistical Portrait of Hispanic Market 2013

MLB Ballpark

Seating Capacity

Year Opened

Hispanic Fan

Los Angeles Anaheim Stadium Los Angeles Dodger Stadium New York Citi Field New York Yankee Stadium Houston Minute Maid Park Chicago U.S. Cellular Field Chicago Wrigley Field Dallas Globe Life Park Miami Marlins Park Phoenix Chase Field San Francisco AT&T Park Oakland Coliseum Baltimore Oriole Park at Camden Washington Nationals Park Denver Coors Field

45,483 53,275 41,922 50,291 42,060 40,615 41,019 48,114 36,742 48,633 41,915 35,067 45,971 41,418 50,480

1966 1962 2009 2009 2000 1991 1914 1994 2012 1998 2000 1966 1992 2008 1995

20,376 23,867 10,145 12,170 15,436 8,732 8,819 13,664 23,772 14,599 9,431 7,890 6,574 5,923 11,711

Proximity of Hispanic Population to a MLB Ballpark If the combined top Hispanic baseball markets were to sell out one game, and the Hispanic fans in the stands matched their share of the overall population, they would represent over a third of all fans in attendance.

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POPULATION EQUIPO ROCA

NEW AMERICAN MAINSTREAM IN BASEBALL

POPULATION The U.S. Hispanic population has grown exponentially in the last decade to reach a total of 50 million. In the coming years, nearly 20% of the nation’s overall population is expected to be Hispanic and by 2050 they will compromise 30% of the total population. A dominant trend since the 2000 census has been the shift in population growth from Latin American immigration towards native-born Hispanics. This is important because it suggests bicultural Hispanics will be the consumer segment driving revenue in U.S. sports market. Baseball is a pivot point for expanding the Hispanic American sports fan conversation beyond soccer.

impacts they’re attitudes and behavior, including when making purchasing decisions. An example of this in the baseball industry is the influence of bicultural Hispanic Americans fueling the sales of tickets for Major League Baseball games. Beginning in 2007, Hispanic baseball fans drove attendance numbers to record heights. More than half of all fans that watched Los Angeles Dodgers games at Chavez Ravine in 2007 were Hispanic. That represents nearly two million baseball lovers.8

Establishing a strategic, well executed, sports marketing communications aimed at the Hispanic market is critical because they are younger consumers in relation to other demographics. According to Census Bureau’s 2010 American Community survey, the median age of Hispanics is 27 while the median age for the U.S. population is 37 years.7 The number of Hispanics teens turning 18 is at such a brisk pace that it is outgrowing all other teen populations. Census officials even estimate that by 2015 one in three babies born in the U.S. will be Hispanic. Overall this segment of the population is going to determine the economic health of corporate America, and sports marketers must take them under careful consideration. Hispanic American Millennials are profoundly exerting their influence on American pop culture today. This includes setting the tone to trends in music, food, fashion and sports. Part of the reason this is has happening is because Hispanic Millennials embrace fluidity in interpreting their self-identity. There is a fusion of cultural traditions and language that allow for new experience and tastes to be created. “Retroaculturation” and “Intraculturation” are two unique forces at play affecting bicultural Hispanic Millennials. What is unique about retroacculturation is that it allows Hispanic youth to tap into their personal stories of Hispanic origin and customs. It would not be uncommon for second, third or fourth generation Hispanic Americans to integrate inherent cultural behaviors into their daily lives to create a unique sense of self-identity. These Pew Research Center. (2012, July 2). Median Age for Hispanics is Lower Than Median Age for Total U.S. Population. Retrieved from http://www.pewresearch.org/daily-number/median-age-for-hispanicsis-lower-than-median-age-for-total-u-s-population/ 7

Elkermann, D. (2008, July 10). Hispanic Fans Critical to Major League Baseball. New American Media. Retrieved from http://news.newamericamedia.org/news/view_article.html?article_id=8f6c40cc51d9d 391420b562189ffc007 8

NEW AMERICAN MAINSTREAM IN BASEBALL POPULATION (Cont.) A contributing factor to this phenomenon has been the increase of Hispanic ballplayers from Latin America. Athletes from Cuba, Dominican Republic, Mexico, Nicaragua, Panama, Puerto Rico and Venezuela are drawing Hispanic American baseball fans because they represent countries of origin woven into the American way of life. At the start of the 2012 season, the total percentage of players of color in the MLB was 38.2%. The opening day roster were 62.2% white, 27.3% Latino, 8.8% African American, 1.9% Asian, 0.1% Native American or Native Alaskan, and 0.1% Native Hawaiian or Pacific Islander.9 Baseball is a sport that allows Hispanic Americans to retain and partake in what are traditional cultural norms while still maintaining a predominantly American identity, a powerful insight for sports marketers to consider when engaging this consumer segment. Intracculturation is a process whereby cultures affect and influence one another in a recombinant manner to create a new interpretation of subject or idea, essentially a “mash up” of customs and traditions. Baseball rich heritage in Latin American offers a venue to explore this phenomenon. Increasingly bicultural Hispanic Americans are taking global trends, especially from Latin America, and incorporating them into their daily lives expands their worldview and place within it. The fluidity of culture is helping to create new interpretations of what self-identity means. Baseball is a cross-cultural sport that for over a century now has helped diffuse American national ideals and identity to regions throughout the world, while at the same time creating a unique Latin identity. Remember, it wasn’t American citizens who helped spread baseball to the Caribbean but rather a Cubans studying in the United States in 1864 that led to its adoption in the region. A Harvard professor of government, Steve Levitsky, stated, “baseball is merely the product of linkage of social and commercial ties.” No sport does a better job of creating a unique cultural mash up of economic and cultural customs than baseball. The blending of two worlds, U.S. and Latin America, best reflects the bicultural Hispanic American consumer mindset.

Lapchick, R. (2012, April 25). The 2012 Racial and Gender Report Card: Major League Baseball. The Institute for Diversity and Ethics in Sport

51.9 million Hispanics lived in U.S. in 2011, an increase of 48% from 2000. U.S. Census Bureau’s 2011 American Community Survey

The Share of the nation’s Hispanics who are U.S. born has been on the rise since 2000.

Year

Native Born

Foreign Born

2000

60%

40%

2011

64%

36%

Source Geoscape American Marketscape DataStream 2012

Geoscape Hispanicity

Hispanicity is a Geoscope CultureCode measuring the degree to which people of Hispanic heritage in the United States retain elements of the Hispanic culture while they acquire elements of American culture.

Geoscape Hispanicity Acculturation Segmentation Code

Group Title

Descriptor

HA1

Americanizado

English dominant, nearly no, Spanish Born in U.S. 3rd+ generation, Few Hispanic cultural practices

HA2

Nueva Latina

English preferred (some Spanish), Born in U.S. 2nd generation, Some Hispanic cultural practices, often “retro-acculturate”

HA3

Bicultural

Bilingual (equal or nearly), Immigrant as child or young adult

HA4

Hispano

Spanish preferred (some English), Immigrant as adult, in U.S. 10+ years, Pre-dominant Hispanic cultural practices

HA5

Latino Americano

Spanish dominant (nearly no English), Recent immigrant as adult (less than 10 years ago), Primarily Hispanic cultural practices Identifying

70% Bicultural to a degree, (HA2-4) and 83% retain Hispanicity (HA2-5)

Source Geoscape American Marketscape DataStream 2012

ACCULTURATION

NEW AMERICAN MAINSTREAM IN BASEBALL

ACCULTURATION The surge in native births has fueled Hispanic adoption of general market behavior patterns and social norms. An increase of global digital connectivity is now encouraging Hispanic Americans to seek out the ideals represented in the American Dream. College education, increased household income and home ownership are all on the rise and showing no sign of slowing down, evident by the increasingly affluent Hispanic American population. Baseball in its own unique way plays a role in all of this because of commercial and social ties its cultivated throughout the Americas. The game encourages Hispanics to acculturate to the American way of life and pursue the ideals of success. Baseball has always been a uniquely American sport, having woven its way into the national identity of United States through its designation as the national pastime. Americans have packed baseball with so many of they’re most profound and cherished beliefs that the game itself came to represent a sacred American belief. With the rise of the new American mainstream, Hispanics are now in a position to continue baseball’s legacy in the United States. This is symbolized by the growth of Hispanic affluence which has helped the American economy recover since 2008, making the demographic the “big hitter” in the lineup of U.S. economy.

and traditions acculturated the other. The result is a constantly evolving mainstream society fueled by interconnected cultures. Baseball may be used ideologically to define the notion of what is ‘American’ and, consequently, what is not. In other words, baseball is a key element in the demonstrating an individual’s American national identity. More to the point is that the normalizing effect of baseball on various social groupings (particularly the United States), and vice versa, is key to understanding the continually shifting, yet contextually specific, forms of belonging in America.10 The bicultural friendliness of baseball serves as a way for lesser-acculturated Hispanics to assimilate into the American mainstream, while also allowing the more acculturated the opportunity to exert more influence on it because its more than soccer when it comes to Hispanic American sports fans.

Hispanic Americans are acculturating into the mainstream via language, knowledge and wealth to seek out new experiences and reinventing old ones. Bicultural Hispanics represent the early adopters of this phenomenon. They are the segment that will generate, and sustain, professional sports. Baseball, in particular, is no different. The game will impact American culture in terms of urban youth participation, apparel and equipment sales, along with gate revenues of MLB clubs. This after all has been years in the making. The influx of Latin ballplayers over the last couple of decades is a testament to the affect of interacculturation on baseball. It’s a sport that has become a blend of global cultures, and as a result that is why fuels a new American mainstream. There is an assumption that multiculturals, including Hispanics, will eventually let go of their traditions in favor of American culture. While this is true to a degree, there is a lot more going on today. When American culture was introduced into Latin America via baseball, each invariably affected and influenced the other. Each cultural style of play, passion for the game, 10

King White, R. (2008, November 21). Baseball, Citizenship, and National Identity in George W. Bush’s America. University of Maryland. p.8.

ACCULTURATION DMA

(HA1) Americanizado

(HA2) Nueva Latina

(HA3) Bicultural

(HA4) Hispano

(HA4) Latino Americano

Los Angeles

13.9%

17.6%

25.8%

27.1%

15.7%

New York

14.9%

17.9%

27.2%

12.8%

Houston

13%

16.3%

26.8%

28.2%

15.7%

Dallas

15.4%

16.2%

25.2%

27.5%

15.7%

Miami

29.2%

18.2%

22.6%

7.3%

Source Geoscape American Marketscape DataStream 2012

LANGUAGE

NEW AMERICAN MAINSTREAM IN BASEBALL

LANGUAGE Language is a common question that arises often when sports marketers think of the U.S. Hispanic market. Driving the consumer growth has been the fact that a majority of Hispanic Americans are bilingual. According to Geoscape data, about 60% of Hispanics are bilingual to some degree, nearly 80% percent speak some level of Spanish and about 40% are dependent on either English or Spanish.

that Spanish-language say news media do an “excellent” (24%) or “good job” (46%) covering news specifically relevant to Hispanics in the U.S.12 By contrast, about six in ten Hispanic adults stated the English-news media do an “excellent” (17%) or “good job” (42%) covering the news relevant to Hispanics in the U.S. With so many Hispanic ball players in MLB, sports media outlets have a chance to do this through baseball.

For Hispanic Americans the fluidity of the English and Spanish languages is seen as inherently natural. Mixing the two, Spanglish, is common when surrounded by family and friends because it provides more context to who they are and what they seek out of life. Spanglish is a product of generations worth of acculturation by Hispanics, especially among the younger population. While it is not advisable to mix the two in terms of advertising and marketing efforts, language serves to remind instead that it can play a unique role in how to engage with Hispanic consumers. There is growing language trend, as a result of acculturation, whereby more bicultural Hispanics consider themselves English dominant. However this does not make Spanish obsolete, or less important. Since Spanish is universal among bicultural Hispanic Americans, it can still serve the purpose of bonding the diverse Hispanic of origin groups around sports. This means sports marketers must become strategic in the implementation of either English or Spanish in marketing and sales communications. In the case of baseball, given it’s rich heritage in Latin America can coexist on both levels when addressing the multicultural audience. Even though the share of Hispanic adults who consume news media in Spanish has declined, the number of potential Spanish news media consumers is growing as a result of the rapid overall rise in the number of Hispanics in the U.S.—to 52 million in 2011, up from 35 million in 2000.11 This creates a strong argument for considering the use of Spanish language baseball media when marketing around the game. Overall, seven in ten Hispanic adults say

Lopez, M. and Gonzalez-Barrera, A. (2013, July 23). A Growing Share of Latinos Get Their News in English. Pew Hispanic Center. Retrieved from http://www.pewhispanic.org/2013/07/23/a-growingshare-of-latinos-get-their-news-in-english/ 11

Lopez, M. and Gonzalez-Barrera, A. (2013, July 23). A Growing Share of Latinos Get Their News in English. Pew Hispanic Center

NEW AMERICAN MAINSTREAM IN BASEBALL

LANGUAGE (Cont.) Highlighting the significant influence of Hispanic American sports fans have on media are the efforts of ESPN. In recent years they have committed financial resources towards the goal of gathering cultural intelligence on the Hispanic audience. Today, they are one of ESPN’s most targeted audiences across digital and traditional platforms alike. And to be sure its efforts are as relevant and engaging as possible, ESPN Research+Analytics has made understanding this audience a top priority.13 Hispanic baseball fans can have meaningful connections to the baseball experience in either langauge. ESPN has proven its focus on bicultural Hispanic Americans during recent upfronts, Spanishlanguage offering ESPN Deportes is featured more prominently than ever. ESPN is the home for the suddenly front and center Latino Sports fan, be it in English or Spanish.14 ESPN is being strategic in the use of language to engage bicultural Hispanic sports fans.

ESPN Deportes General Manager summed it up best when he said “they had to do the right thing from a news standpoint. Cespedes won the derby, and his reaction was needed no matter language he speaks.” Bicultural sports commentators help connect Hispanic fans to the game of baseball and the American way of life. The main takeaway for sports marketers is that language alone does not dictate a Hispanic marketing strategy. Those in the baseball industry should follow ESPN’s lead and focus efforts on building cultural relevancy, and think about how language might be used strategically to ensure that a brand, team, or sponsor’s brand messaging resonates with bicultural Hispanic consumers, regardless if in English or Spanish. The game of baseball lives in a bilingual world.

The ability to move with fluidity between languages empowers Hispanic Americans to spread influence through their cultural networks. Passion for the game of baseball fits comfortably in either language. Sports content consumption patterns of Hispanic Americans is expanding beyond the stereotypical belief that soccer is the best way to target Hispanic audiences. Again, the rising presence of Latin American baseball talent in MLB runs parallel to importance of Hispanics to the cultural, economic and political future of the United States. Baseball can, and should lead the way in terms of multicultural sports marketing media expansion in the new American mainstream. ESPN has already down this path with the integration of crossover on air talent who can deliver sports news in either English or Spanish. An example is the fact that the network giant employs bilingual former athletes to provide insight. There’s Manny Acta, Ozzie Guillen, and Alex Cora helping on the baseball side.15 Not even the public backlash at the Spanish-language use by Pedro Gomez during his interview of 2013 Home Run Derby winner Yoenis Cespedes is deterring the network in its appeal to serve bilingual Hispanics. 13 DeFelice, R. (2011) The Hispanic Sports Fan: ESPN’s Expanded Research Efforts Yield Cross-Platform Insights. Knowledge Networks. Retrieved from http://www.knowledgenetworks.com/accuracy/fallwinter2011/espn-fall2011.html 14

King, B. (2011, July 18). The story behind the numbers. Sports Business Journal. Retrieved from http://www.sportsbusinessdaily.com/Journal/Issues/2011/07/18/In-Depth/Hispanics.aspx

Romero, J. (2013, August 24). ESPN proud of on-air diversity, “doing the right thing”. The Sporting Nation. Retrieved from http://thesportingnation.com/stories/espn-proud-air-diversity-doing-right-thing

Language

The Hispanic audience for ESPN has increased by 15 percent over the last five years, outpacing non-Hispanic audience growth. Each quarter 29 million Hispanics connect with ESPN either through the cable channels, Web sites or apps, according to the network. Some 60 percent of those viewers will watch only ESPN’s English-language channels, while 20 percent watch only ESPN Deportes. Source New York Times ‘A Network Popular With Hispanics Reaches Out to Them’ April 2012

About 60% of Hispanics are bilingual to some degree, nearly 80% speak some level of Spanish and about 40% are dependent on either English or Spanish.

National Distribution • English Dependent - 23%

• Bilingual English Preferred - 27%

Language Segment English Dominant Bilingual Equal Spanish Dominant English Capable Spanish Capable

Hispanics Age 5+

Percentage

24,780,005 6,022,595 17,469,688 39,068947 37,131,891

51.3% 12.5% 36.2% 80.9% 76.9%

• Bilingual English & Spanish - 13%

Spanish-language use varies among top Hispanic DMAs, however

• Bilingual Spanish Preferred - 18%

Spanish is used, or heard in by about half of Hispanics over age 5 within each of

• Spanish Dependent - 19%

these major metropolitan areas.

Percent Hispanic Population by Hispanic Language Miami

Chicago

Language

Los Angeles

New York

Houston

Los Angeles

20.3%

14.5%

18.1%

6.7%

18.2%

New York

26.5%

28.9%

28.3%

29.7%

26.1%

Houston

12.2%

14.2%

13.9%

14.7%

13.4%

Dallas

19.5%

21.3%

18.7%

22.0%

20.9%

Miami

21.6%

21.1%

21.0%

27.0%

21.4%

DIGITAL TECHNOLOGY ADOPTION

NEW AMERICAN MAINSTREAM IN BASEBALL

CONSUMER DIGITAL TECHNOLOGY ADOPTION Mobile digital technology in the last ten years has accelerated the diffusion of innovations process and in turn created a new American mainstream. Smartphones and tablets have altered educational, financial, and entertainment expectations of consumers. Data indicates that Hispanic Americans are ambitious leaders in mobile device and social network usage, capable of growing socioeconomic business trends in the United States. Digital communications have disrupted sports business industry as whole in recent years, but also allowed for new opportunities to emerge. The propensity for Hispanics to be early-adopters of mobile digital technology established a new means for multicultural sports to influence the American mainstream. Increased access to Internet information has enhanced the way Hispanic Americans see and experience life. An October 2012 survey of US Hispanics by the Pew Hispanic Center found that between 2009 and 2012, the percentage of foreign-born and native-born Hispanics who used the web rose by 18 percentage points and 27 percentage points, respectively. This resulted in overall Hispanic Internet usage to reach 78%, from 64% three years prior.16 Hispanic Americans use of smartphones, which is at 49% vs. 46% non-Hispanic, is largely responsible for the increase in Internet access. Over three-quarters of Hispanic Internet users accessed the web on a mobile device, compared with 73% of blacks and only 60% of whites.17 Mobile devices are a game changing innovation for tapping into the social conscious of the multicultural American sports fan.

become more than just a way to communicate with far-flung relatives and friends.18 Social media allows Hispanic the opportunity to discover and pivot toward new American life experiences, while sharing them with members of their cultural network. On an average day, 26.8% of Hispanic Internet users spent six hours or more on social media sites, while only 8.5% of total Internet users spent that much time on social sites.19 All this activity encourages sports marketers to carefully consider the online behaviors of multicultural consumers when developing digital strategy that promote products and services. MLB is already demonstrating multicultural sports marketing leadership with leaguewide bilingual social media outreach. Hispanic Americans are highly likely to research, document and share a baseball fan experience via social media because there is a strong, and still growing, love for the sports that define the American social fabric. Take a look at any MLB club’s roster. Many are from Latin American countries (Puerto Rico, Dominican Republic, Mexico, etc.). Not counting the number of 2nd and 3rd generation US Latino ballplayers. A Scarborough study from 2 years ago stated that 62% of US Latinos are MLB fans, and 27% more likely to be baseball fans than the general population.20 Affinity for the game, as well as use of digital technology bodes well for the sports industry as it seeks to bolster dropping youth participation rates and baseball equipment sales. Bicultural Hispanics are vocal and represent the new American mainstream sports fan. Mobile devices provide a platform, while social media amplifies the ability to define our society.

Along with mobile device ownership, multicultural social network usage has helped shape the new American mainstream narrative. eMarketer estimates that in 2012, 68.9% of Hispanics were using social networks, compared with 66.2% of the total US population. Social digital tools, once in Hispanics’ hands, 16 eMarketer. (2013, March 25). Among Hispanics, Who’s leading Digital Adoption Trends?. Retrieved from http://www.emarketer.com/Article/Among-Hispanics-Whos-Leading-Digital-AdoptionTrends/1009755 17 eMarketer. (2013, March 25). Among Hispanics, Who’s leading Digital Adoption Trends?. Retrieved from http://www.emarketer.com/Article/Among-Hispanics-Whos-Leading-Digital-AdoptionTrends/1009755 18 eMarketer. (2013, April 25). Hispanic Shoppers Bring Social, Mobile Habits to the Aisle. Retrieved from http://www.emarketer.com/Article/Hispanic-Shoppers-Bring-Social-Mobile-Habits-GroceryAisle/1009839 19 eMarketer. (2012, March 12). Hispanics More Active on Social Media than Other Ethnicities. Retrieved from http://www.emarketer.com/Article/Hispanics-More-Active-on-Social-Media-than-Other-Ethnicities/1008877 20

EBL: Inside the Line. (2013, March). Béisbol: A Game of the Americas. Retrieved from http://eblane.com/theinsidelane/beisbol-a-game-of-the-americas/

Tablets

Smartphone

Mobile platform share among Hispanics Smartphone and tablet ownership Rank

Platform

Audience

1 2 3 4 5 6 Total

Google (Android) Apple BlackBerry Microsoft (Windows) Symbian HP

55.9% 33.5% 6.5% 3.2% .7% .2% 100.0

13,833 8,305 1,601 803 170 42 24,754

Rank

Platform

Audience

1 2 3 4 5 Total

Google (Android) Apple HP BlackBerry Microsoft (Windows)

49.2% 48.8% 2.5% 2.4% 1.9% 100.0

5,290 5,250 274 261 201 10,755

Source: ComScore Share based on three-month averages ended April 2013 Audience in thousands.

U.S. Social Network User Penetration by Race/Ethnicity, 2012-2017 % of internet users in each group Source eMarketer, February 2013 Non Hispanics 2012

Black White Asians Other Hispanics Total

68.6% 65.4% 63.7% 63.7% 68.9% 66.2%

2013 70.1% 66.1% 65.9% 63.9% 70.9% 67.2%

2014 70.1% 66.8% 65.9% 63.9% 73.2% 68.1%

2015 69.5% 67.5% 67.5% 62.8% 74.6% 68.8%

2016 70.5% 68.7% 68.7% 63.6% 75.0% 69.4%

2017 69.9% 70.1% 70.1% 64.7% 76.6% 70.1%

Gender

% of total 52% 48%

Male Female Age

44% 41% 12% 1%

18-29 30-49 50-64 65+ Primary Language

40% 34% 25%

Bilingual English-Dominant Spanish-Dominant Nativity

54% 46%

Native-Born Foreign-Born Children Under 18 in Household

52% 47%

Yes No Education Less than High School High School Graduate Some College or More

20% 35% 44%

Annual Household Income <$30k $30-$50k $50k+

46% 20% 27%

Source Pew Hispanic Center Closing the Digital Divide: Latinos and Technology Adoption March 7, 2013

In November 2013, Facebook offered the following statistics on its U.S. Hispanic users: U.S. Hispanics access Facebook more frequently than U.S. users overall, as the social network pointed out that 69% of U.S. Hispanics were active on six of the past seven days, compared with 62% of all U.S. users. U.S. Hispanics also access Facebook via mobile devices at a greater rate than overall U.S. users. Facebook also said that in the past 30 days, U.S. Hispanic users were responsible for: 338.4 million photos uploaded • 1.1 billion comments • 5.83 billion likes • 4 million video uploads • 7.6 million check-ins

All Internet Users Race/Ethnicity White, Non-Hispanic Black, Non-Hispanic Hispanic

16% 15% 13% 6% 14% 18% 11% 6% 26% 8% 23% 5% 19% 10% 18% 8%

Source Pew Research Center Internet & American Life Project Post Election Survey, November 14 – December 9, 2012

YOUTH BASEBALL PARTICIPATION

NEW AMERICAN MAINSTREAM IN BASEBALL

YOUTH BASEBALL PARTICIPATION American youth baseball participation levels are in a steady decline. Since 2012, the average annual growth of total participation in the game is -4.2%. (SFIA, 2013) In thinking of how to address the issue, the Hispanic youth factor should be considered. When we analyze youth baseball participation trends, a missing piece is a clear understanding of how the multicultural market fits into the broader mainstream. Currently, the baseball sporting goods industry lacks sufficient cultural intelligence around who is playing baseball across the ethnic youth spectrum. Tracking and growing multicultural youth baseball participation is imperative to the sports industry, especially when we consider baseball related apparel and equipment sales. Healthy multicultural youth involvement is tied to the future of baseball, the national pastime.

While some argue the decline in youth baseball is attributed to it being too slow and boring, there may be reason to believe Hispanic youth could fuel participation growth of the game in urban America. There already exists a natural Latin cultural affinity for baseball. Few sports are inherently bicultural. However, baseball is one of them. As the U.S. Hispanic population continues to blend into the new American mainstream, their influence on baseball can be one of strengthening the sport. According to MLB scouts, the declining numbers are beginning to alter the talent pool in ways that could have a noticeable impact on player quality.21 Given the strong Latin presence in MLB, it might be time to start cultivating greater U.S. Hispanic youth baseball talent. The financial health of MLB in the decades to come is at stake.

According to the National Sporting Goods Association, between 2000 and 2009, the number of kid’s aged 7 – 17 playing baseball dropped 24% (Futterman, 2011). This is significant because youth population data tells us Hispanics account for the vast majority kids in that age category. In 2012 Pew Research Data released the Statistical Portrait of Hispanics in the United States report, and found that 33.8% of Hispanic population is under the age of 18 vs. 20.1% of white non-Hispanics. This figure becomes even more pronounced when we look at those under the age of 5, where its 10% Hispanic in comparison to 5.2% of white non-Hispanics. This is important to note because the sporting goods industry and youth baseball organizations have not aligned with the shift towards a multicultural youth demographic. The future Hispanic baseball fan should be engaged during their childhood years.

In terms of overall sports fans, 94% of Hispanic males consider themselves sports fans, 48% are avid sports fans (TNS Media Services, n.d.). This is important to consider because of the greater likelihood that kids who participate in baseball, between 7-17 years of age, will become lifelong fans of the game. The way to create fans out of persons who are not committed to a specific sport is by forming a social identity in the individual while moving them along the psychological continuum. The first of these steps is awareness, which takes place when one is first introduced to a sport’s existence.22 Youth baseball is that first step towards awareness. Attracting Hispanic youth participation in baseball could help the recent efforts of MLB to address the issue find success.

The 2013 Baseball Single Sports Participation Report indicated there are a total 12,976,000 baseball participants in the United States. 80% are Male and 63% of all baseball youth participants come from a household where income is $75,000 or less, which many Hispanic Americans fall under. (SFIA, 2013) However questions arise because the data being collected shows the sporting goods industry is not getting enough multicultural representation in its survey. When sampling baseball participants, out of the total 42,363 surveys completed, only 7% were from Hispanic respondents. Meanwhile, the smaller segment of the population, White non-Hispanics, accounted for 67% percent of total survey respondents. Clearly, based on youth population trends there appears to be a disconnect between demographics and youth baseball participation. Therefore, it begs the question. Is attracting Hispanic youth an opportunity to reverse the decline in U.S. youth baseball participation?

In recent years the question surrounding the decline in African American MLB players has many uneasy about baseball’s future. In 2012, African American players in Major League Baseball composed 8.8% of the population (Lapchick, 2013). These concerns prompted MLB to institute programs such as the MLB RBI. This program is all about reviving baseball in American inner cities (MLB, 2013). Building around the bicultural elements of baseball and targeting Hispanic American kids in areas like Texas and California may help those MLB programs succeed. Currently Hispanic players make up 27.3% of all baseball players on a MLB roster (2013). Hispanic youth baseball participation is critical to the future of the national pastime.

21 22

Futterman, M. (2011, March 31). Has Baseball’s Moment Passed? The Wall Street Journal. Retrieved from

Funk, D. & James, J. (2001). The psychological continuum model: A conceptual framework for understanding an individual’s psychological connection to sport. Sport Management Review

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BASEBALL EQUIPMENT EQUIPO ROCA

NEW AMERICAN MAINSTREAM IN BASEBALL

THE STATE OF RETAIL Retail trends in the United States are increasingly influenced and measured by the spending behaviors of multicultural consumers. Leading the charge is the Hispanic market, which in recent years has become the primary target of marketers in various categories. The sporting goods industry currently shares the same dilemma as those involved in youth baseball participation. Both have a common business need, which is to attract Hispanic American consumer now, and in the immediate years ahead. They have the ability to impact the overall sales of baseball related apparel and equipment both online and offline for sporting goods manufacturers and retailers seeking profitable growth.

manufacturers sales of baseball equipment is reported to have increased 0.4% from the previous, which reflects a slow increase over the past four years, up from five years ago, 2008, when the industry took a deep dive losing $23 million over one year.25 Hispanic consumers represent an opportunity to speed up the revival of baseball sporting goods category sales.

In order to understand the influence of Hispanic American consumers on baseball sporting goods, it is important to understand macro retail data and its impact on the overall American economy. Retail marketing aimed at Hispanic American consumers is a $5 billion industry. They shop often, spend more per shopping trip, favor high-end brands and outspend general market consumers on technology, personal care, beauty and baby products. They are major purchasers of children and infantsâ&#x20AC;&#x2122; clothing, accounting for about 19.2 percent of industry sales.23 All of this ends up being connected to why the youth sports participation factor matters to the baseball industry. Consider that in during the 2013 Back to School retail season, 37% Hispanic Americans had sporting goods on their shopping lists. Furthermore, those with a HHI over $40k would buy goods at a rate 68% higher (47% vs. 28%) than those with a HHI below $40k.24 With rising affluence among Hispanic Americans, we can begin to see a connection between youth participation and baseball apparel and equipment sales. Sporting good sales are measured in comparison to the national GDP of the United States. Thus it is through this lens the significance of capturing Hispanic baseball fans at a young age becomes more imperative. During the 2008 economic downturn sporting goods took a major hit because they were seen as a leisure purchase and thus not a priority for families balancing many household needs. As Hispanics continue to contribute to the American economic recovery theyâ&#x20AC;&#x2122;ll also take on growth of the sporting goods category. In 2013 23

Piston, K. (2013, June 7). Why Hispanic consumers will revive the American economy. Voxxi. Retrieved from http://voxxi.com/2013/06/07/hispanic-consumers-revive-economy/

ThinkNow Research. (2013). Hispanic Omnibus Study: U.S. Hispanic Back-to-School Shopping Insights 2013. ThinkNow Research. Retrieved from http://www.thinknowresearch.com/blog/hispanicsback-to-school-shopping/ 24

SFIA2. (2013). Manufacturers Sales By Category pg. 3 - 2013 [PDF]

NEW AMERICAN MAINSTREAM IN BASEBALL

THE STATE OF RETAIL (Cont.) A sign that the decline youth baseball participation is impacting equipment sales can be seen when analyzing bat sales. Since 2007, bat sales have dropped from $216 million to $173 million. Total baseball/softball bat sales dropped -3% alone between 2011-2012. This is significant in that it confirms the need to make the connection between Hispanic youth participation in baseball and sporting goods retail. Even though SFIA states that all other equipment categories have increased by more than 1% from 2011 and 2012, there has to be a level of concern here, because if we have less bats being sold, that means less people are swinging bats. And this is bad for the game of baseball, from youth, to amateur, on up to the professional levels. Sporting goods retailers, along with their Hispanic marketing efforts, are vital partners for solving the issue of declining baseball equipment sales for manufacturers. When we look at baseball retail channels, specialty stores dominate the category. The top brick and mortar retailers are Walmart, Target, Dick’s Sporting Goods, and The Sports Authority. In the past, specialty retailers appealed to local markets to drive customers into their stores, now they are finding a need to maintain a strong digital presence in order to be competitive. For example, since 2009, Dick’s Sporting Goods has made efforts to integrate technology into the online and offline retail experience. Dick’s Sporting Goods ranked at number 121 in the Internet Retailer Top 500 Guide. Just three years later in 2012, “E-commerce sales accounted for 4.4% of total sales, and increased by 46.7%, company executives told analysts on its recent quarterly earnings call. Based on those metrics, Internet Retailer calculates online sales grew to $57.6 million in Q3, from about $39.3 million in the prior year quarter.26 While online sales are significant, in-store experiences are needed to spur a call to action that increases urban youth participation and baseball apparel, footwear, and equipment sales.

category where experiential retail can enhance a feel for a bat’s swing-weight, or the comfort of a glove, and even to learn about local leagues. Incorporating entertaining retail experiences could play out well in producing and analyzing baseball sporting good apparel and equipment sales. Customers rather see, touch, and/or try out products rather than buying them online, an example a being a Hispanic American child looking to purchase baseball equipment for the first time. It makes much more sense for the child to try out their new glove, clothing, and cleats, than to order all of this online and take the chance that it doesn’t fit well or feel right. The creation of culturally meaningful in-store experiences that engage Hispanic American consumers is the future of the sporting goods industry. online and take the chance that it doesn’t fit well or feel right.27 The creation of culturally meaningful in-store experiences that engage Hispanic American consumers is the future of the sporting goods industry.

An advantage keeping brick-and-mortar sporting goods stores in business is the need for sporting goods products to be personable. A Think with Google, U.S. Hispanic Retail Consumer Study stated 53% of Hispanics use search engines to obtain retail information. And more than 40% of them compare prices and locate retailers through their mobile devices. Sporting goods is a consumer 26

Briggs, B. (2012). Web sales jump 47% for Dick’s Sporting Goods. Retrieved from: http://www.internetretailer.com/2012/11/19/web-sales-jump-47-dicks-sporting-goods

Henage, C. (2012). Sporting Goods and Two Long-Term Trends. Retrieved from: http://beta.fool.com/mhenage/2012/09/06/sporting-goods-and-two-long-term-trends/10953/

79% of smartphone owners are smartphone shoppers 84% of these shoppers use their phone to help shop while in the store

15 minutes is the average time shoppers use their phones in-store Consumers choose search as their #1 in-store resource when making purchase decisions • 82% Search Engine • 62% Store Web Sites • 50% Brand Web Sites Source Google How Mobile is Transforming the Shopping Experience MARC 2013

Soft total baseball/softball sales growth of recent years should encourage manufacturers to target Hispanic American consumers more at the retail level as the economy continues to improve. Dollars in Millions

2007

2008

2009

2010

2011

2012

% Change (2011-2012)

Total Baseball/Softball Bats Gloves & Mitts Baseballs Batting Gloves Softballs Protective Gear Team Uniforms Baseball Footwear

$534 $216 $134 $44 $40 $28 $74 $321 $230

$510 $211 $130 $41 $35 $27 $66 $329 $230

$487 $201 $119 $39 $34 $27 $67 $321 $230

$488 $181 $129 $41 $35 $30 $72 $324 $236

$489 $178 $133 $41 $35 $29 $72 $330 $238

$491 $173 $135 $42 $35 $30 $77 $347 $247

O.4% -3.0% 1.2% 1.1% 1.5% 1.3% 6.0% 5.4% 3.6%

Source Sports & Fitness Industry Association Manufacturers Sales by Category Report 2013

Hispanics Social Shoppers A special subset of those shoppers who own smartphones and use their smartphones to help them shop in brick and mortar retail stores. For Hispanic smartphone owners, a shopping trip often involves several people. This is also true for general market, but it’s importance for Hispanics is paramount.

Preference for shopping with others When buying expensive items 31.6% I prefer to shop alone 68.4% I prefer to shop with family members or friends Question…How do baseball sporting goods retailers’ mobile apps and sites leverage the in-store shopping experience? Hispanics Shop with Their Senses 55% Hispanics vs. 38% of Non-Hispanics like to touch and feel a product 365 vs.13% Non-Hispanics think it’s fun to immerse themselves in the store atmosphere Mobile and Tablet Shopping 56% Hispanics vs. 33% Non-Hispanics shop with a mobile phone 43% Hispanics vs. 25% Non-Hispanics shop with a tablet Source Sensis White Horse Hispanic In-Store Mobile Experience 2012 Source Leo Burnett LatinoShop Study 2013

o i h O

CROSS CULTURAL BASEBALL HERITAGE EQUIPO ROCA

NEW AMERICAN MAINSTREAM IN BASEBALL CROSS-CULTURAL BASEBALL HERITAGE The story of how baseball was introduced to Latin America is well documented. It has origins beginning in the 19th century and its global influence is felt today. A shared cultural exchange around baseball provides context as to why the game is still relevant in the new American mainstream. Ever since Cuban college students brought baseball back to the Caribbean, Hispanics embraced the ideals, passion, and devotion of the game in a way that makes it bicultural. In the 1880s two Latin American players began playing baseball in the U.S. under the auspices that they were “Spanish” rather than Cuban or Mexican: Esteban Bellan and Vincent Nava. Because of segregation in place at the time, Bellan and Neva existed within the black and white polar structure as something “other.”1 Today, that “other” has grown to become its own unique identity within baseball culture. The American game transcended borders and established another form of professional baseball, creating a bicultural sport. A transnational circuit began to take shape that linked New York, San Francisco, and Chicago with Havana, San Juan, and Santo Domingo through exchange of players, management expertise, and information. With the new opportunities this circuit offered, talented players, whether from the United States or Latin America enjoyed a financial boom.2 Winter Leagues that emerged in the Dominican Republic, Mexico, Puerto Rico, and Venezuela provided a foundation for the full integration and popularity of the game among Hispanics throughout the hemisphere. Latin cultural adoption of American baseball is what allows for MLB to communicate so well with the Hispanic American sports fan. The shared cultural exchange around baseball is what will sustain MLB in the decades ahead and allow for the game to thrive globally.

Guerra, R. (2012). Baseball and Latinos. University of Nebraska at Omaho. p.1.

Burgos, A. (2007). Playing America’s Game: Baseball, Latinos, and the Color Line. Berkley, Los Angeles, and London: University of California Press. p. 8.

LATIN AMERICAN-BORN CY YOUNG AWARD WINNERS •

Felix Hernandez (2010, Venezuela)

•

Johan Santana (2004, 2006, Venezuela)

•

Pedro Martinez (1997, 1999, 2000,Dominican Republic)

•

Willie Hernandez (1984, Puerto Rico)

•

Fernando Valenzuela (1981, Mexico)

•

Miguel Cuellar (1969, Cuba)

LATIN AMERICAN-BORN MOST VALUABLE (MVP) AWARD WINNERS

•

Albert Pujos (2005, 2008, 2009, Dominican Republic)

•

Vladimir Guerrerro (2004, Dominican Republic)

•

Miguel Tejada (2002, Dominican Republic)

•

Ivan Rodriguez (1999, Puerto Rico)

•

Juan Gonzalez (1996, 1998, Puerto Rico)

•

Sammy Sosa (1998, Dominican Republic)

•

Jose Canseco (1988, Cuba)

•

George Bell (1987, Dominican Republic)

•

Willie Hernandez (1984, Puerto Rico)

o i h O

CARIBBEAN BASEBALL SERIES EQUIPO ROCA

NEW AMERICAN MAINSTREAM IN BASEBALL

CARIBBEAN BASEBALL SERIES Starting in 1947, winners of the Caribbean winter leagues gather together for a weeklong tournament to crown a Caribbean Series champion. This event has grown to become not only a source of player talent for MLB, but also a source of media entertainment for the growing Hispanic American sports audience. Scores of Latin players who later excelled on MLB teams, ranging from Luis Aparicio and Roberto Clemente to David Ortiz and Pablo Sandoval have proven their playing skills under the demanding eyes of Spanish-speaking fans and scouts. Latin baseball increases the reach of sports marketers in the United States and Latin America.

is sport that is capitalistic to its core, Hispanic baseball fans appreciate the Caribbean Series because it provides a platform where they see achievement and success in the form of players playing or signing with MLB ball clubs under lucrative conditions. Hispanic Americans see success in the things they have and can share with family and friends, and society at large. A Latin ballplayer that makes it to MLB is tied to the concept of the American Dream, which is earned through the reward of persistence and individual effort.

A sign that Latin baseball expands multicultural sports business is the evolving media coverage the Caribbean Series. Starting in 2006, ESPN Deportes has consistently invested in the tournament to reach Hispanic baseball fans. The 2013 edition was the most watched and highest rated Caribbean Series on ESPN Deportes since 2009; the final game ranks as most watched Caribbean Series game ever among Hispanic households. The network telecasted all 13 games live, averaging a 1.1 Hispanic household coverage rating, a 38 percent increase from last year, with 62,000 HH impressions and 77,000 Hispanic viewers (+P2).3 While initially a novelty event, the Caribbean Series has grown to become an economic success story that continues to be an opportunity in sports business. The Hispanic baseball fans interest in Latin baseball content is driven by the participation of current MLB talent, and the rise of new players looking to make it big in the United States. For decades now, MLB has considered the Caribbean winter leagues as a resource in player development. Many of the Latin American players who play in MLB during the summer in the U.S. often spend the winters in professional leagues in the Caribbean. Hispanic baseball fans are tapping into their Latin heritage when watching the Caribbean Series, especially considering that ESPN Deportes broadcasts the games in Spanish. Storylines associated with players looking to achieve the dream of playing in the United States is a culturally relevant notion. Making it to the highest levels of baseball is a story of success and achievement, a level of pride exists when youâ&#x20AC;&#x2122;ve made it in America. Baseball 3 Nunez, G. (2013, February 13, 2013). Caribbean World Series Delivers Strong Results for ESPN Deportes. ESPN Media Zone. Retrieved from http://espnmediazone.com/us/press-releases/2013/02/ caribbean-world-series-delivers-strong-ratings-for-espn-deportes/

SOCIO-CULTURAL SIGNIFICANCE

The Caribbean World Series is the only sporting event in the world to unite professional leagues from different countries to play in tournament to become champions of their region. It has evolved into a cross-cultural baseball experience for players and fans and generated a loyal following.

1949 to 1960

1946: Venezuelan businessman, Jesús Corao, promotes first Interamerican Series played in Caracas. The series is played for a month and teams that competed were the Sultanes de Monterrey, from México; All Cubans, Cuba; Bushwicks, United States; and Cervecería Caracas, Venezuela. Some of the most recognizable Negro stars who played were Jackie Robinson, Parnell Woods, Buck Leonard, Quincey Trouppe, Roy Campanella, Marvin Barrer, Sam Jethroe, William Anderson 1947: Venezuelan entrepreneurs, Oscar Prieto and Pablo Morales, present the idea to create a Caribbean Series to Confederation of Baseball of the Caribbean in Miami. The federation consisted of Cuba, Panama, Puerto Rico and Venezuela 1948: On August 21st, in Havana, Cuba an agreement was signed to create Caribbean Series. The structure was conceived to defend the interest of the four Caribbean countries that had winter leagues. Agreement included an annual rotation of the series in the participating countries, with first in Cuba, the second in Puerto Rico and continuing with Venezuela and finalizing with Panama. 12 games, each team facing each other twice was the format selected 1951: Cuban, Lorenzo "Chiquitín" Cabrera (Havana) wins the batting title in Venezuela with a batting average of .619

1952: American pitcher Tommy Fine (Havana) threw a no hit, no run game against Venezuela in Panama

1953: Legendary outfielder Willard Brown (Santurce) has a four-homerun game in Havana

1955: Outfielder Willie Mays (Santurce) hits memorable homerun in the 11th inning to give Puerto Rico the victory after failing in his first 12 at bats in the 1955 series

1979 to Present

1970: Player-manager Manuel Mota, of the Dominican Republic, Tigres de Licey won the tournament undefeated, earned the honor of centerfielder of the series, batting title, triples leader, and MVP. 1971: Dominican reliever of Tigres de Licey, Federico "Chichí" Olivo, struck out Reggie Jackson and Elrod Hendricks to win the last game and the Caribbean series of 1971, the first won by the Dominican Republic. 1977: Rico Carty, playing for the Tigres del Licey, hits 5 homeruns breaking Willard Brown record (Cangrejeros de Santurce) Puerto Rico, established in 1953 series. 1979: American Mitchell Page of the Navegantes del Magallanes, Venezuela, hit a homerun in the ninth inning of the sixth game of the series to give Venezuela its second title both for Magallanes. 1952: American pitcher Tommy Fine (Havana) threw a no hit, no run game against Venezuela in Panama 1991: Potros de Tijuana shutout the Cardenales de Lara even though the Potros allowed 10 hits in the game 1995: Roberto Alomar has five hits for Puerto Rico against the Dominican Republic, and the next day gets two more to become the first player to connect 7 consecutive hits. 1995: Puerto Rico has a “Dream Team” roster of players, which included superstars from one to nine - Roberto Alomar, Edgar Martínez, Carlos Baerga, Carlos Delgado, Juan “Igor” González, Rubén Sierra, Bernie Williams, Carmelo Martínez and Rey Sánchez 1997: Puerto Rican businessman, Ralph Paniagua Jr, televises Caribbean Series in the United States for the first time on Galavisión, eventually leading to complete coverage of the Caribbean classic by ESPN Deportes 2006: Edgar González of the Mazatlán club breaks Roberto Alomar’s consecutive hits record of 7, with 8 in the series

1958: Pitcher Juan "Terín" Pizarro (Caguas) throws 17 strikeouts against Panama in San Juan

Source LatinoBaseball.com

WORLD BASEBALL CLASSIC

NEW AMERICAN MAINSTREAM IN BASEBALL

WORLD BASEBALL CLASSIC The World Baseball Classic began in 2006 as Major League Baseball’s vision to help foster the globalization of baseball. Hispanics baseball fans will be instrumental towards the realization of this goal. Hispanic consumption, in terms of television ratings and attendance, is critical for the WBC to gain a strong following in the U.S. and around the world. MLB is hoping the tournament grows to into what the World Cup is to soccer, which has always found success within the Hispanic market in the United States and Latin America. Each WBC has seen an increase of interest from baseball fans around the world, but especially from Latin America. Starting in 2006, TV ratings and merchandise sales in Mexico for example have been positive. According to MLB Vice President of International Business Paul Archey business partners in Mexico have embraced the tournament because they think it is the biggest thing to happen Mexican baseball since Fernando Valenzuela.4 Overall the three WBC events held between 2006-2013 has generated increased corporate partnerships and revenue for Major League Baseball. Attendance figures associated to the 2013 WBC games may have fallen short if tournament officials, but there is reason to believe that Hispanic American baseball fans may be needed for the tournament to succeed in the future. Overall, 880,388 fans came to the games across all of the venues which is almost a 10% increase of 2009. Phoenix drew 115,183 fans compared to 91,205 when they last hosted the tournament back in 2006. The United States vs. Mexico game at Chase Field on March 8th attracted 44,256 fans, which was the second most attended World Baseball Classic game ever in North America, trailing only the 2009 Championship Game at Dodger Stadium (54,846).5 Bicultural Hispanic baseball fans were vocal in their support of both teams.

for growing the game globally. The cultural behaviors of Hispanic baseball fans involve making the game a social experience, about amplifying the act of being at a game. Furthermore, Hispanic digital activities help amplify the act of being at a game, something that bodes well for the future success of the WBC. During the 2013 tournament, the worldbaseballclassic.com had people from 220 countries visit their site (IBAF). According to Major League Baseball, the World Baseball Classic generated over 600 million social media impressions. IBAF.com had 75,000 unique visitors from March 7-‐21, which was a record for the site. Bicultural Hispanic baseball fans are in a unique position to share their cultural brand of baseball with the rest of the world, including the United States. As Hispanic sports fans continue to navigate the new mainstream their influence on the identity of American baseball changes. Achieving the MLB’s stated goal of growing baseball globally likely requires the increased and sustained participation of Hispanic baseball fans in the United States. The passion for the home country has been a highlight of the WBC since its inception in 2006. One reoccurring concern is the attendance at non-home country games across all of the venues. This is one of the largest issues facing the tournament to this date because the lack of energy from the crowd is evident both on TV and with the players.

A unique facet to Latin baseball culture is fan involvement in the ballpark experience. This is especially true in the Caribbean Series fan experience. Latin fans are more involved and create more noise before, during, and after a game, which occurred at the WBC games. These are the traits that draw the Hispanic fan to a baseball game and provide areas of explore via research as means Lee, J. (2010). Branded: Branding in Sports Business. Durham, NC. Carolina Academy Press.

MLB.com (2013, March 21). World Baseball Classic grows baseball globally with record-setting tournament. Retrieved from http://mlb.mlb.com/news/article.jsp?ymd=20130321&content_ id=43072146&vkey=pr_mlb&c_id=mlb 5

Schiroli, R. (2013, March 22). Through the World Baseball Classic the old game grows globally. International Baseball Federation. IABF.

World Baseball Classic Hispanic baseball fans, from United States and Latin American, are highly likely influencing attendance figures at WBC games held in the United States. •2013 First Round pool in Arizona registered 115,183 fans, surpassing the attendance of the First Round pool in Arizona in 2006 by 26% •United States. vs. Mexico game at Chase Field on March 8, 2013 attracted 44,256 fans, which was the second most attended World Baseball Classic game ever in North America, trailing only the 2009 Championship Game at Dodger Stadium (54,846) •Crowd of 34,366 fans packed Marlins Park for the Dominican Republic vs. United States game on March 14th 2013, the fourth-largest crowd ever at Marlins Park

Year 2006

Attendance 737,012

2009

801,408

2013

880,338

Year 2006

Sponsors 26

2009

2013

Hispanic baseball fans are tuning into Spanish-language coverage of the WBC. •2013 Championship game was the most-watched baseball game ever on ESPN Deportes and the network's most-watched live sporting event since August, 2012. WBC tournament sponsorship growth indicates the baseball continues to be a viable area of opportunity for sports marketers seeking to connect with the Hispanic sports fan. •More than 2x as many WBC sponsors in 2013 versus 2006, roster included four global partners – Brand USA, Delta Air Lines, Konami, and MetLife Merchandise.

Social Media The digital media behavior of Hispanic baseball fans is likely having an impact on the WBC. According to Bluefin Labs and Radian 6, 2013 edition generated nearly 600 million social media impressions. •More than 75 different terms related to the WBC trended worldwide on Twitter, and posts from the official WBC Twitter feed were re-tweeted nearly 200,000 times. •WBC Facebook page generated nearly one million likes, comments and shares during the tournament.

Source International Baseball Federation | Source MLBAM World Baseball Classic 2013 Infographic

CULTURAL FAULT LINES OF PROFESSIONAL BASEBALL BUSINESS

NEW AMERICAN MAINSTREAM IN BASEBALL

CULTURAL FAULT LINES OF PROFESSIONAL BASEBALL BUSINESS Baseball is a business that serves as a measuring stick the American economy, cultural trends are driving innovation in the way MLB services baseball fans. Why Major League Baseball has already pivoted towards the new mainstream multicultural sports fan. The league is producing robust digital content, and engaging the bicultural Hispanic baseball fan. Cultural fault lines emerged that disrupted the MLB business model and encouraged the brand to pivot towards the new American mainstream by embracing a bicultural approach to Hispanic baseball fans.

business impact. MLB realizes this affects their financial bottom line and is actively engaging the Hispanic market along six fault lines in their business. Cultural branding is the future of sports marketing. Baseball is already pioneering in some ways multicultural engagement. Their success, like that of United States, hinges on the optimism held by multicultural market towards the future.

Social shifts eventually disrupt consumers’ identification with conventional baseball category expressions. At any historic moment in any locale, there are a myriad societal changes taking place. Focusing on those changes that unsettle the baseball category’s ideology, leads consumers to desire a new ideology or feel uncomfortable with the existing ideology. These disruptive social shifts can be led by technology, the economy, social structure, demography, social movements, or even mass media.1 There are six cultural fault lines disrupting the business of professional baseball. • Athletes • Attendance • Concessions • Digital Media • Merchandising & Promotions • Sponsorship Through social disruption, one can begin to understand precisely how disruptions in these categories are impacting the American sports fan experience. MLB is digging into multicultural identity projects to ascertain their collective desire and anxieties in relation to each disruption. What is emergent ideology that customers are gravitating towards?2 Hispanic American are a powerful disruptive force of economic influence, presenting sports marketers an influential consumer group that translates in 1

Holt, D. (2010) Cultural Strategy: Using Innovative Ideologies to Build Breakthrough Brands. Oxford University Press. New York.

Infographics: http://www.bloomberg.com/infographics/2013-10-23/mlb-team-values.html

Since the economic recovery began in 2009, Major League Baseballâ&#x20AC;&#x2122;s business is dependent on the wallet share of multicultural sports fans to generate revenue and increase long-term franchise value.

MAJOR LEAGUE BASEBALL: AVERAGE FRANCHISE VALUE AND TOTAL LEAGUE REVENUE FROM 2007 TO 2013 Year 2007 2008 2009 2010 2011 2012 2013

AVERAGE FRANCHISEVALUE (MILLIONS) $431 $472 $480 $491 $523 $605 $744

TOTAL LEAGUE REVENUE (BILLIONS) $5.48 $5.82 $5.90 $6.14 $6.36 $6.81 $8.01

Source Forbes

MAJOR LEAGUE BASEBALL: FRANCHISE VALUE BY TOP HISPANIC BASEBALL TEAM MARKETS. FAN COST INDEX

TEAM New York Yankees Los Angeles Dodgers Chicago Cubs San Francisco Giants Texas Rangers New York Mets Los Angeles Angels Washington Nationals Chicago White Sox Baltimore Orioles San Diego Padres Arizona Diamondbacks Colorado Rockies Houston Astros Miami Marlins Oakland Athletics

2014 FRANCHISE VALUE (IN MILLIONS)

2013 FAN COST INDEX

$2,500 $2,000 $1,200 $1,000 $825 $800 $775 $700 $695 $620 $615 $585 $575 $530 $500 $495

$324.30 $204.95 $298.20 $237.87 $223.70 $237.87 $196.13 $236.46 $231.18 $169.06 $151.94 $151.55 $196.60 $224.30 $230.05 $180.48 Source Forbes | Source ESPN.com | Source Team Marketing

NEW YORK YANKEES

SAN FRANCISCO GIANTS

Year

Revenue (Millions)

Year

Revenue (Millions)

2007 2008 2009 2010 2011 2012 2013

$302 $327 $375 $441 $427 $461 $461

2007 2008 2009 2010 2011 2012 2013

$197 $196 $201 $230 $230 $262 $316

Total Reg. Season Avg. Ticket Price (U.S. $) Home Attendance (Millions) 4.27 $29.01 4.30 $41.40 3.67 $72.97 3.77 $51.83 3.65 $51.83 3.54 $51.55 3.28 $51.55

Total Reg. Season Avg. Ticket Price (U.S. $) Home Attendance (Millions) 3.22 $25.11 2.86 $22.06 2.86 $23.28 3.04 $28.79 3.39 $25.04 3.38 $27.21 3.33 $30.09

2013 REVENUE BREAKDOWN

LOS ANGELES DODGERS

TEXAS RANGERS

Year

Revenue (Millions)

Year

Revenue (Millions)

2007 2008 2009 2010 2011 2012 2013

$224 $241 $247 $246 $230 $245 $293

2007 2008 2009 2010 2011 2012 2013

$172 $176 $180 $206 $233 $239 $257

Gate Receipts: $265M | Concessions: $53M | Sponsorship: $84M | Media Rights: $158M

Total Reg. Season Avg. Ticket Price (U.S. $) Home Attendance (Millions) 3.86 $26.28 3.73 $29.66 3.76 $29.66 3.56 $30.59 2.94 $30.59 3.32 $23.22 3.74 $22.37

Gate Receipts: $126M | Concessions: $26M | Sponsorship: $28M | Media Rights: $88M

Total Reg. Season Avg. Ticket Price (U.S. $) Home Attendance (Millions) 2.41 $16.47 1.97 $18.01 2.24 $19.41 2.51 $20.65 2.95 $18.60 3.46 $20.49 3.18 $22.54

2013 REVENUE BREAKDOWN

CHICAGO CUBS

NEW YORK METS

Gate Receipts: $81M| Concessions: $29M | Sponsorship: $39M | Media Rights: $100M

Year

Revenue (Millions)

2007 2008 2009 2010 2011 2012 2013

$214 $239 $246 $258 $266 $274 $266

Avg. Ticket Price (U.S. $) Total Reg. Season Home Attendance (Millions) 3.25 $34.30 3.30 $42.49 3.21 $47.75 3.06 $52.56 3.02 $46.90 2.88 $46.30 2.64 $44.55

2013 REVENUE BREAKDOWN

Gate Receipts: $128M | Concessions: $30M | Sponsorship: $18M | Media Rights: $90M

Gate Receipts: $79M | Concessions: $22M | Sponsorship: $19M | Media Rights: $18M

Year

Revenue (Millions)

2007 2008 2009 2010 2011 2012 2013

$235 $261 $268 $233 $225 $232 $238

Total Reg. Season Avg. Ticket Price (U.S. $) Home Attendance (Millions) 3.85 $28.26 4.14 $34.05 3.15 $36.99 2.62 $32.22 2.38 $31.81 2.24 $27.24 2.14 $25.30

2013 REVENUE BREAKDOWN

LOS ANGELES ANGELS OF ANAHEIM Year

Revenue (Millions)

2007 2008 2009 2010 2011 2012 2013

$200 $212 $217 $222 $226 $229 $253

Total Reg. Season Avg. Ticket Price (U.S. $) Home Attendance (Millions) 3.37 $19.49 3.34 $20.78 3.24 $20.05 3.25 $18.93 3.17 $17.13 3.06 $19.71 3.02 $27.54

BALTIMORE ORIOLES Year

Revenue (Millions)

2007 2008 2009 2010 2011 2012 2013

$166 $174 $171 $175 $179 $206 $198

Avg. Ticket Price (U.S. $) Total Reg. Season Home Attendance (Millions) 2.19 $22.45 2.03 $23.85 1.91 $23.42 1.75 $23.42 1.76 $23.90 2.10 $23.89 2.36 $23.89

2013 REVENUE BREAKDOWN

WASHINGTON NATIONALS Year

Revenue (Millions)

SAN DIEGO PADRES Year

Revenue (Millions)

2007 2008 2009 2010 2011 2012 2013

$153 $184 $184 $194 $200 $225 $244

2007 2008 2009 2010 2011 2012 2013

$167 $174 $157 $159 $163 $189 $207

Gate Receipts: $78M | Concessions: $24M | Sponsorship: $27M | Media Rights: $100M

Avg. Ticket Price (U.S. $) Total Reg. Season Home Attendance (Millions) 1.96 $21.11 2.35 $25.00 1.84 $30.63 1.83 $30.63 1.94 $30.54 2.37 $30.54 2.65 $35.24

Gate Receipts: $52M | Concessions: $14M | Sponsorship: $18M | Media Rights: $80M

Avg. Ticket Price (U.S. $) Total Reg. Season Home Attendance (Millions) 2.79 $22.13 2.43 $27.43 1.92 $20.01 2.13 $15.15 2.14 $15.45 2.12 $15.67 2.17 $15.99

2013 REVENUE BREAKDOWN

CHICAGO WHITE SOX Year

Revenue (Millions)

ARIZONA DIAMONDBACKS Year

Revenue (Millions)

2007 2008 2009 2010 2011 2012 2013

$193 $194 $196 $210 $214 $216 $210

2007 2008 2009 2010 2011 2012 2013

$165 $177 $172 $180 $186 $195 $192

Gate Receipts: $85M| Concessions: $20M | Sponsorship: $18M | Media Rights: $83M

Avg. Ticket Price (U.S. $) Total Reg. Season Home Attendance (Millions) 2.68 $28.78 2.50 $30.28 2.28 $32.28 2.19 $38.65 2.0 $40.67 1.97 $29.00 1.77 $26.05

2013 REVENUE BREAKDOWN

Gate Receipts: $59M | Concessions: $17M | Sponsorship: $25M | Media Rights: $84M

Gate Receipts: $34M | Concessions: $14M | Sponsorship: $20M | Media Rights: $60M

Total Reg. Season Avg. Ticket Price (U.S. $) Home Attendance (Millions) 2.32 $13.79 2.51 $15.96 2.13 $14.31 2.06 $14.31 2.11 $15.74 2.18 $15.74 2.13 $16.89

2013 REVENUE BREAKDOWN

COLORADO ROCKIES Year

Revenue (Millions)

2007 2008 2009 2010 2011 2012 2013

$169 $178 $183 $188 $193 $199 $197

Total Reg. Season Avg. Ticket Price (U.S. $) Home Attendance (Millions) 2.35 $16.50 2.68 $19.50 2.67 $19.50 2.91 $20.55 2.91 $19.50 2.63 $20.55 2.79 $23.65

2013 REVENUE BREAKDOWN

Gate Receipts: $46M | Concessions: $22M | Sponsorship: $18M | Media Rights: $71M

HOUSTON ASTROS Year

Revenue (Millions)

2007 2008 2009 2010 2011 2012 2013

$193 $194 $189 $197 $197 $196 $186

OAKLAND ATHLETICS Year

Revenue (Millions)

2007 2008 2009 2010 2011 2012 2013

$154 $160 $155 $161 $160 $173 $187

Avg. Ticket Price (U.S. $) Total Reg. Season Home Attendance (Millions) 1.92 $23.88 1.67 $29.20 1.41 $24.31 1.42 $22.04 1.48 $21.52 1.68 $21.64 1.81 $22.12

2013 REVENUE BREAKDOWN

Gate Receipts: $33M | Concessions: $9M | Sponsorship: $12M | Media Rights: $65M

Avg. Ticket Price (U.S. $) Total Reg. Season Home Attendance (Millions) 3.02 $27.01 2.81 $27.01 2.52 $29.01 2.33 $29.01 2.07 $29.01 1.61 $30.01 1.65 $30.01

2013 REVENUE BREAKDOWN

Gate Receipts: $45M| Concessions: $12M | Sponsorship: $23M | Media Rights: $76M

MIAMI MARLINS Year

Revenue (Millions)

2007 2008 2009 2010 2011 2012 2013

$128 $139 $144 $143 $148 $195 $159

Avg. Ticket Price (U.S. $) Total Reg. Season Home Attendance (Millions) 1.37 $16.57 1.35 $18.69 1.52 $19.06 1.52 $19.06 1.52 $19.06 2.22 $29.62 1.59 $29.27

2013 REVENUE BREAKDOWN

o i h O

ATHLETES EQUIPO ROCA

NEW AMERICAN MAINSTREAM IN BASEBALL

ATHLETES The first disruption to affect Major League Baseball has been the slow evolution of Hispanic player talent on the rosters of ball clubs. While this is has been decades in the making, the spike in Latin American born athletes that started in the eighties coincides with the spurt in growth of the U.S. Hispanic population. With more Latin born players in the league, MLB has invested more in Latin American operations, and initiated cultural branding efforts involving marketing teams and games to the U.S. Hispanic. More Hispanic baseball talent has allowed MLB to pivot the game towards a highly receptive and engaged segment of the multicultural market. A cultural fault line emerged that enabled MLB to communicate with Hispanic baseball fans as more and more players arrived from Latin America. However, the shift away from Latin America towards native born talent will grow in the near future.

Although the Dominican Republic and Venezuela supply much foreign baseball talent, and MLB teams have active and extensive operations in these countries, the MLB Commissioners office did not establish a permanent presence in either country until it opened its Dominican office in 2000. The office opened to address problems being exposed about MLB operations in Latin America.10 In 2010, the MLB Scouting Bureau expanded its scope to include the region. The scouting bureau is a centralized group of player evaluators, which files scouting reports on players entering the June draft. Now the bureau files reports and video as well as organize showcases in Latin America, where players are amateur free agents and currently not subject to the draft. Should a draft come into existence, it will mean a greater emphasis on homegrown U.S. born Hispanic athletes to support the Hispanic fan base MLB has cultivated.

Diversity in the major leagues continues to grow and is largely attributed to efforts MLB has undertaken on the international level since the late eighties. MLB ball clubs began to invest in youth academies in Latin America that would fuel the development of on the field talent that today caters to the new American mainstream. In 1990, Hispanics represented 13% of major league baseball players. By 1997 that number had increased to 24%, and currently over 28% of MLB players are born outside of the United States. In 2013, there were 241 foreign players out of 856. The Dominican Republic was the most represented with 89, followed by Venezuela with 63, then Canada 17, Cuba 15, and Mexico 14.9 The rise of Hispanic player representation meant that MLB had to pivot its business to meet the Hispanic baseball fans.

The development of Hispanic athlete talent, via a Latin American pipeline, eventually became a disruption to MLB’s business in the United States. As more Hispanics began to inhabit team rosters it provided MLB with the appropriate source material to cull together a relevant means of engaging Hispanic American fans. MLB is now in a position to repurpose cultural expressions lurking in subcultures, social movements, media myths, and the brand’s own assets. Cultural branding is not about “futuring” or brainstorming pie-in-thesky visions of what may come to be in ten years. The league is capable of developing successful cultural innovations that repurpose existing ideologies, myths, and cultural codes, which have already been embraced by some Hispanic baseball fans, however dated or marginal, to address the demographic disruption created by the increase in Latin ball talent.11 Still, like the national population trend, eventually the Hispanic youth talent born in the United States will be the primary source of American born professional baseball talent. The future of U.S. professional baseball will hinge on Hispanic American youth participation in the game.

An influx of Latin baseball talent allowed MLB to begin developing early forms of cultural branding to attract Hispanic baseball fans. Hispanic players led the league, along with individual teams, to create marketing initiatives like Spanish radio and television broadcasts, Hispanic Fan Guides, Spanish pocket schedules, and Hispanic ticket promotions for example Hispanic Heritage Night. This has even resulted in the cross-cultural use of language, for the example the utilization of Spanish team nicknames on team jerseys. These uniforms are not only for special heritage nights such as Cinco de Mayo, but other dates as well where MLB teams want to engage Hispanic baseball fans. 9

http://latino.foxnews.com/latino/sports/2013/04/03/over-28-percent-players-were-foreign-born-in-mlb-opening-day/

10 11

Cassuto, L. & Partridge, S. (2011, February, 21) The Cambridge Companion to Baseball. Cambridge University Press. p.177.

Holt, D. (2010, October 28). Cultural Strategy: Using Innovative Ideologies to Build Breakthrough Brands. Oxford University Press.

Source Nielsen Huddle Up: U.S. Hispanics Could Be A Boon For Nets, Leagues, and Advertisers

HISPANIC PRESENCE ETHNICITY % MLB PLAYERS Caucasian 61.2% IN MAJOR LEAGUE African American 8.3% BASEBALL Latino Asian

28.2% 2.1%

MLB BY POSITION DIVERSITY

Ethnicity Caucasian African American Latino Asian

68% 4% 26% 2%

65% 1% 33% 1%

59% 8% 32% 0%

52% 22% 23% 4%

PRESENCE OF LATIN BALL PLAYERS CONNECT WITH THE HISPANIC SPORTS FAN

Improving and maintaining the multicultural MLB player talent pipeline is essential to the future, especially with native born Hispanics. •48% of Hispanics believe MLB athletes are role models, versus 40% on Non-Hispanics

U.S. MULTICULTURAL PLAYER DEVELOPMENT Monitoring and measuring results with Major League Baseball’s Urban Youth Academy initiative in Los Angeles and Houston are crucial to multicultural player talent pipeline development, including African American.

RBI PROGRAM AGES 5-18:

JR RBI PROGRAM AGES 5-12:

ETHNICITY

% PARTICIPATION

ETHNICITY

% PARTICIPATION

Caucasian

25%

Caucasian

25%

African American

45%

African American

48%

Latino

25%

Latino

22%

Asian

Source The 2013 Racial and Gender

As data related to Hispanic youth baseball participation is better understood, this has the potential to address the loss of African American interest in playing professional baseball. Multicultural Millennials are more sensitive to personal, community, and environmental involvement than White Millennials. •African American (84%) and Hispanic Millennials (88%) are galvanized around their cultural identity, which gives them a strong sense of purpose. Source Pew Multicultural Millennials: The New Generation Coming of Age

ATTENDANCE

NEW AMERICAN MAINSTREAM IN BASEBALL

ATTENDANCE Another social disruption related to demographic changes on Major League Baseball’s business concentrates on gate revenues. Hispanic American fans are, and will continue to be, the most critical consumer segment for the league. Around 2005 is when MLB began to see an uptick in Hispanic American crowds at ball games as the new American mainstream began to emerge, with an all time high o f 74 million fans coming through the gates in 2007. Now with attendance remaining off pre recession highs are becoming even more important to the bottom line of teams. The MLB fan base has primarily been middle to upper-middle-class Baby Boomers. However with the diverse millennial demographic coming into their mid thirties rapidly, this is disrupting the traditional notion of what the typical MLB fan looks like today. Outreach to Hispanic baseball fans that began nearly ten years ago, are pointing MLB teams towards the new American mainstream. However, with attendance figures at MLB games still not at the levels from 2007 it is becoming apparent that more needs to be done, and digital media may offer the solution to attract more multicultural baseball fans to games.

with just Spanish-language content and targeted events like Hispanic Heritage Month or Cinco de Mayo. Demographic changes are disrupting the way in which MLB teams market tickets to fans. While the cultural branding efforts of the league have positioned it to succeed with bicultural Hispanic baseball fans, the league cannot focus on Spanish-language assets alone. English dominant Hispanics do present a challenge for rethinking “general market” strategies. In some cases, English dominant Hispanics are the mainstream, which is certainly the situation with the many of top Hispanic markets in the United States. Gone are the days of seeing the Hispanic sports ticket market as a cash based, Spanish focused. Today Hispanic business owners represent the new premium buyer, while families are willing to buy six last minute tickets to the San Francisco Giants vs. Los Angeles Dodgers game on their mobile phone. The new American mainstream has made Hispanic baseball fans essential to the economic success of the United States and baseball.

Teams are getting creative with their ticket prices and making it affordable to go to a game. At most stadiums today, it’s quite inexpensive to see a ballgame, and during tough economic times like in recent years, that’s important for the common fan. Baseball was so successful in the early days because it was affordable for a family of five to attend a game. We’re starting to see that be a trend again, and the more kids and families who get involved in this game, the more it will prosper. Hispanic Americans being younger, and with larger families, are the key demographic to accomplish this goal. Fortunately, MLB is looking to digital media as the means of achieving it. MLB has been offering mobile ticket sales for at least six years now, delivering them initially via SMS or links in emails, but smartphones are enabling innovation in the selling of tickets to fans. MLB Advanced Media has worked closely with Apple to get Passbook integration on iPhones that allows fans that have the At Bat and At The Ballpark apps to purchase tickets to games.12 While digital trends do offer an opportunity to expand the MLB Hispanic fan base, there will be a need to expand beyond the current form of engaging them Panzarino, M. (2012, October 10). The MLB’s Passbook ticketing experiment pays off. The Next Web. Retrieved from http://thenextweb.com/apple/2012/10/10/the-mlbs-passbook-ticketing-experimentpays-off/#!Amu3r 12

Silent Generation 18% Baby Boomers 36% Generation X 28% Generation Y 18%

When looking at the generational breakdown of MLB fans, we see the influence and impact of Hispanic Generation Y baseball fans to MLB.

MAJOR LEAGUE BASEBALL: TOTAL ATTENDANCE AT REGULAR SEASON GAMES FROM 2006 TO 2013 (IN MILLIONS).

Generation Y MLB fans account for 18% of adult population. • 23% more likely to be Black/African American • 83% more likely to be Hispanic than all MLB fans Top local markets for Generation Y MLB fans • Albany 62% • Hartford 66% • Milwaukee 76% • Philadelphia 70% • St. Louis 66%

YEAR 2006 2007 2008 2009 2010 2011 2012 2013

TOTAL ATTENDANCE (IN MILLIONS) 76.30 79.60 79 73.60 73.20 73.45 74.86 74.03

Source Scarborough Sports Marketing MLB Fan Infographic 2012

The explosive projected growth of Hispanic populations in 3 of the top 5 local MLB Generation Y fan markets signifies the expansion of the new American mainstream beyond top U.S. Hispanic baseball DMAs in the next decade. DMA

NON-HISPANIC % NON-HISPANIC TOTAL POP 2017 % TOTALGROWTH HISPANIC 2017 HISPANIC GROWTH WHITE 2017 WHITE GROWTH

Milwaukee

2,335,975

271,823

70%

1,688,456

-2%

Philadelphia 8,314,669

10%

1,020,915

118%

5,103,617

-6%

St. Louis

102,248

134%

2,487,547

3,303,295

Geoscape American Marketscape DataStream 2012 Geoscape Market Snapshot: Milwaukee, WI DMA 2013

With regular season attendance, and ticket revenue as percentage of total revenue, declining between 2009 and 2012, targeting Hispanic Generation Y baseball fans becomes that much more significant as the economy continues to improve. •30% of Generation Y MLB fans are willing to spend $25 to $49 on a single MLB ticket, and 12% interested in buying season tickets. Source Scarborough Sports Marketing MLB Infographic 2013

REGUALR SEASON TICKETING REVENUE AS PERCENTAGE OF TOTAL REVENUE IN MLB BETWEEN 2009 TO 2012 YEAR TICKET REVENUE 2009 38.2% 2010 37.1% 2011 36.6% 2012 34.8% Source Forbes

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CONCESSIONS EQUIPO ROCA

NEW AMERICAN MAINSTREAM IN BASEBALL

CONCESSIONS Running parallel to rise in Latin MLB players during the nineties was the overall growth of the U.S. Hispanic population. This social disruption resulted in the emergence of food and beverage trends that help define the new American mainstream. Over the last decade, ethnic food adoption by American consumers was accelerated by the tastes of Hispanic Americans. A foodie culture was born out of multicultural consumer demand, and more Americans traveling abroad, which in turn has impacted food and beverage retail, including concession offerings at MLB ballparks. Multicultural consumers, led by Hispanic sports fans, are changing the concession revenue approach of MLB teams. Consumers are exposed to foods from a multitude of global cultures as never before. More and more Americans are traveling abroad and wanting to recreate or re-experience favorite ethnic cuisines at home. For those non-traveling consumers there is TV, where they travel and experience foods vicariously through shows on the Travel Channel and Food Network. At the root, though, consumers find multicultural foods interesting mainly because they serve as a departure from the normal American diet through a combination of “different” tastes, flavors and spices. No multicultural segment has accelerated the changing tastes of America more than Hispanics. Hispanic American demand and consumption of culturally relevant food products altered the food and beverage retail landscape. According to Packaged Facts, the market for Hispanic foods and beverages reached almost $8.2 billion in 2012, up 3% from the previous year and up 8% from $7.5 billion in 2009. In addition, sales of Hispanic foods and beverages are expected to reach $10.7 billion in 2017, up 31% from the present market level.13 The influx of Hispanic food and beverage has in turn influenced broader general market trends, including what baseball fans eat at the ballpark. As major league baseball has evolved into a bigger business, its ballparks have come to offer a wider variety of food options. New ballpark menus are cropping up across the country that now includes Cuban sandwiches, carne

asada, tacos, and other Latin inspired items. From drinks to entrees to snacks, Latin dishes at the better concession stands at today’s big league yards reflect the local specialties of their surrounding cities. ARAMARK, which handles concessions for MLB teams, has chefs committed to creating new menus that incorporate current trends and diverse flavors, and the popularity of Latin cuisine has definitely influenced their menu offerings.14 Food and beverage offerings at the ballpark are affecting the in-game experience of baseball fans and increasingly Hispanics are the influencers. Hispanic foods and beverages appeal to a variety of consumers from Spanishonly speakers to multicultural consumers, foodies and most households in America. Nearly 73% of consumers surveyed said they use Mexican food and ingredients. For Hispanics this goes up to nearly 84%.15 It has made more people comfortable with food experimentation and open to eating options. This is why MLB clubs was forced to create concessions at venues that offer more than just hot dogs and popcorn. Multicultural fans are seeing the ballpark as food destination where they can experiment and share in the experience. The reason why the cultural branding of food and beverage offerings at ballparks matter is because of the potential to draw more Hispanic American fans to the in game experience, essentially ticket sales. Concession offerings can boost overall MLB team revenue. Ethnic cuisine provides a cultural platform aimed at establishing a customer relationship with multicultural, especially Hispanic, fans. Food for the Hispanic sports fan represents family and community, and as a result of this relationship with food, food preparation, and food centric gatherings of family and friends are sought out. Multicultural sports fan expect the baseball game experience to fit into this desire. Doing so may have the ability to draw and create lifelong relationships with Hispanic American MLB fans.

Food Business News. (2012, December 6). Hispanic food, beverage market to $10.7 billion in 2017. Retrieved from http://www.foodbusinessnews.net/articles/news_home/Site_News/2012/12/Hispanic_ food_beverage_market.aspx?ID=%7BBEBA289E-0361-41FD-A7F3-6A443C3C6262%7D&cck=1 13

Castillo, K. (2013, March 29). Major League Latin Flavor at MLB Concession Stands! the latin kitchen.

It is estimated that by 2017, Hispanic food and beverage will reach $10.7 billion. Tortillas will be the key driver of growth, with current dollars sales of $2.2 billion. Tortillas now outsell hamburger and hot dog buns, and bagels.

Leading with cultural insights could potentially impact concession revenue of MLB teams as more multicultural fans are attracted to games. Here we spotlight Hispanic Adult Beverage consumers.

TOTAL MARKET SIZE OF HISPANIC FOODS AND BEVERAGES YEAR TOTAL MARKET (IN BILLIONS)

•Hispanic fans are most likely to spend more on adult beverages than non-Hispanic fans on per away-from-home occasions, including tax or tip.

2009 2011 2013 2017

•60% of Hispanics consumed adult beverages away from home in a typical week.

$7.5 $7.9 $8.2 $10.7 Source Packaged Facts Hispanic Food and Beverages

Key factors affecting concession offerings are population trends in the country’s biggest cities, and demand for products that are “culturally relevant” to fans. But more importantly is the increasing preference among the country's general population for new flavors and taste at the ballpark.

BEVERAGE

NON-HISPANIC

HISPANIC

Beer Spirits/mixed drinks Wine

$13.00 $16.70 $14.60

$21.60 $26.30 $23.30

Source Technomic Special Trends in Adult Beverage Report: Hispanic Consumer Insights 2013

CONSUMER PREFERENCE FOR VERY SPICY FOODS AND SAUCES

•2009 - 46% •2011 - 48% •2013 - 54% MOST APPEALING FLAVOR PROFILES

•Savory - 67% •Spicy - 52% •Smoky - 52% •Sweet - 51% •Tangy - 48% Source Technomic New Flavor Study 2013

Since two thirds or more of a ballpark’s concession revenue come from hot dogs, peanuts, and beverages, ethnic food trends are likely challenging the fan cost index model of MLB teams.

2013 AVERAGE PRICE FOR A HOT DOG/SOFT DRINK/BEER TEAM

PRICE OF HOT DOG

PRICE OF SOFT DRINK

PRICE OF BEER

New York Yankees Los Angeles Dodgers Chicago Cubs San Francisco Texas Rangers New York Mets Los Angeles Angels Washington Nationals Chicago White Sox Baltimore Orioles San Diego Padres Arizona Diamondbacks Colorado Rockies Houston Astros Miami Marlins

$4.50 $5.00 $4.50 $5.00 $5.00 $6.25 $4.50 $5.00 $3.75 $1.50 $4.00 $2.75 $4.75 $4.75 $6.00

$3.00 $5.25 $3.50 $450 $4.50 $5.00 $2.75 $4.75 $4.50 $1.50 $4.00 $1.50 $3.25 $4.50 $4.50

$6.00 $6.25 $7.25 $6.75 $5.00 $5.75 $4.50 $8.25 $6.50 $6.75 $5.00 $4.00 $6.00 $6.00 $8.00

Multicultural food consumption behaviors, led by Hispanics, challenge teams to innovate their offerings. While this impacts each MLB team differently, cultural branding initiatives in food and beverage will become a business imperative.

Examples of Cultural Behaviors: •Less-acculturated consumers are 2X likely as more-acculturated Hispanics to look for Hispanic foods (39% and 20%, respectively) and flavors (45% and 20%, respectively) in a foodservice venue. •Authenticity is key: 2X as many Hispanics (44%) compared to the general population (21%) say they would pay more for food described as authentic. •More than two in five Hispanic consumers (44%) agree they are more likely to visit foodservice locations that offer Spanish-language advertisements. •More Hispanic consumers (46%) than the general population (33%) say that a family-friendly atmosphere is one of the most important entertainment venue attributes they look for when deciding what to eat. •59% of Hispanic consumers either agree or agree completely that foodservices offering Hispanic foods should also offer Hispanic beverages. Source Technomic Spotlight on Hispanic Diners 2013 Social media provides an area of opportunity for MLB clubs to promote ballpark concession offerings and the in-game experience with multicultural fans

FREQUENTLY LEARN ABOUT FOODSERVICE MENU ITEMS VIA THE FOLLOWING FORMATS: Traditional TV Ads - 37% Social Media - 22% Radio Ads - 19% Source Technomic Spotlight on Hispanic Diners 2013

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DIGITAL MEDIA EQUIPO ROCA

NEW AMERICAN MAINSTREAM IN BASEBALL

DIGITAL MEDIA No other social disruption has impacted Major League Baseball’s business more positively than digital technology. When the league embraced consumer use of mobile devices, social networks, and social apps, MLB set itself up to succeed with the multicultural market. Digital media became ultimate asset for communicating and engaging the growing new American mainstream baseball fan. Hispanics are leaders in technology adoption and also contributing so much to the game professionally that MLB had to develop a culturally relevant digital platform to reach them. Since the launch of MLB.com under the control of Major League Baseball Advanced Media in 2001, Major League Baseball has been a leader in digital sports technology. MLB At Bat is the highest-grossing sports app five years running was launched by MLBAM for the iPhone, iPad, supported Android smartphones and tablets, Amazon Kindle Fire and BlackBerry.16 In 2012, MLBAM had total revenues of around $650 million dollars, with just over 23% (150 million) coming from online ticket sales. The remaining revenues came from three other core focuses of MLBAM. MLB Shop sales accounted for $100 million, while content subscriptions another $250 million, and advertising, sponsorship accounting for $150 million.17 As the digital technology adoption behaviors of Hispanic Americans leads consumer trends it increasingly becomes apparent that a cultural branding effort will be incorporated into the leagues overall digital strategy. Individual teams will have to become better at analyzing the vast Hispanic fan data they collect digitally in order to navigate the new American mainstream in business. MLB uses Spanish-language content to create a culturally relevant digital experience for bicultural Hispanic fans. A dedicated team of reporters and interactive marketing professionals are supporting this effort internally. MLB’s strategy included developing a central Spanish language digital platform called “Las Mayores” (The Majors). The platform includes up to date scores, statistics, videos, and articles. In addition, the Spanish site is mobile optimized and provides fans an

in-language opportunity to purchase tickets and sign up for newsletters.18 MLB is providing bicultural Hispanic fans options on how to consume season long baseball content. Further supporting the Las Mayores campaign are MLB clubs efforts to connect with Hispanics at the local level by providing Spanish-language websites for all 30 teams. Fans of 21 of 30 teams can listen to live Spanish language broadcasts online and those broadcasts can be overlayed over live video. In addition, each of the team sites is optimized for mobile, and many offer a Spanish e-newsletter.19 These efforts seem to be generating interest, based on the number of social media likes and follows that some of the teams are garnering. MLB provides social media presence via Las Mayores-branded Spanish language Facebook page and Twitter accounts. The Facebook page has 108K likes, with a solid engagement rate of 30%. The league posts Spanish-language content on Facebook including images, articles, and culturally relevant content multiple times per day.20 This offering is in line with the bilingual habits of bicultural Hispanic Americans, who fluidly move between both English and Spanish. MLB is allowing Hispanic baseball fans to navigate and interact with their brand in a culturally relevant manner. The digital media strategy of Major League Baseball reflects the bicultural personality the game holds in the new American mainstream. Once the league embraced technology trends and incorporated digital at the center of everything they do, it set MLB to connect with the multicultural market, especially Hispanics. Adding Spanish language media channels and content provides MLB with the ability to grow other aspects of their business with Hispanic baseball fans. In all likelihood, as leaders in technology adoption, Hispanic Americans are informing the digital of strategy of MLB in both English and Spanish.

Newman, M. (2014, February 25). MLB.com At Bat launches into spring. MLB.com Retrieved from http://mlb.mlb.com/news/article/mlb/mlbcom-at-bat-launches-intospring?ymd=20140225&content_id=68295956 16

KCBear. (2013, March 4 ). Highlights from a Talk by MLB Advanced Media CEO Robert Bowman. Retrieved October 2013, 2013, from Royalsreview.com : http://www.royalsreview. com/2013/3/4/4065274/highlights-from-a-talk-by-mlb-advanced-media-ceo-robert-bowman 17

Vann, L. (2013, October 10). Major League Baseball Hits A ‘Jonron’ With Online Hispanics. Media Post. Retrieved from http://www.mediapost.com/publications/article/211011/majorleague-baseball-hits-a-jonron-with-online.html 18

INTERNET USAGE BY GENERATION Y MLB FANS 2X More than twice likely to have visited Twitter 59% More likely to have read or contributed to a blog 68% More Likely to watch video clips online 12% More likely to visit any broadcast television website in past 30 days *Than all MLB fans in past thirty days

Hispanic sports fan is ahead of the digital curve: •12% of mobile shoppers are Hispanic •1 in 5 social media users via mobile apps are Hispanic

Source Scarborough Sports Marketing MLB Infographic 2013

COMPARING MONTHLY TIME SPENT HISPANIC CONSUMERS VERSE THE TOTAL U.S. POPULATION DIGITAL ACTIVITY

HISPANIC

GENERAL U.S. POP

Using Game Console Watching Video on Internet Mobile subscribers watching video on phone

7:52 8:21 6:22

7:07 6:41 5:48

(HH:MM) MLB Advanced Media increasingly more aware of multicultural fan behavior through digital media data engagement. Individual teams will require a greater emphasis on cultural insights to service baseball fans in the New American mainstream. MLB apps gather multicultural consumer intelligence related to: •Mobile baseball ticket and to check in to get coupons for merchandise, order food, upgrade your seat during the game and, of course, to watch or listen to games when you’re not near a TV. MLB At Bat 14 subscriptions allow MLB to target Generation Y MLB fans with a culturally relevant content strategy that allows for personal customization. •Users have multi-platform live audio access for portability to take home, away and Spanish-language audio feeds to desktop and laptop computers. Subscribers also will be able to get full premium feature access across all support iOS and Android smartphones and tablets.

Source Nielsen The Digital Consumer Report 2014

At the Ballpark features for 2014:

•MyTickets Mobile for delivery and storage of all MLB tickets sold (select clubs only) •Upload and share personal photos from ballpark visits, dating back to 2005 •View team stats and watch highlights from games attended •Ballpark and player entrance music listings •Social media clubhouse, including social rewards for select clubs •Complete tickets section, featuring special offers by club •Seat and experience upgrade functionality (select clubs) •Passbook integration for digital ticket delivery and storage (select clubs) •Check-in for ballpark offers and rewards •Interactive concourse maps and directory •Customize to feature a designated favorite MLB ballpark •Team schedule, ticket information and sales and promotional event listings •Access to food and beverage ordering available at select parks (select clubs Directions and parking information •A to Z Guides for every ballpark •My Journal: Personalized check-in history for ballparks visited The robust bilingual digital media approach of Major League Baseball provides teams, sponsors and facility managers with options to target Hispanic baseball fans. Some teams are more active with Spanish-language content than others, but do offer unique marketing opportunities. Source MLB.com and Las Mayores.com

MLB ENGLISH AND SPANISH DIGITAL PLATFORMS Main Accounts

# of followers

# of Likes

# of followers

Major League Baseball Arizona Diamond Backs Baltimore Orioles Chicago White Sox Chicago Cubs Colorado Rockies Houston Astros Los Angeles Dodgers Los Angeles Angels Miami Marlins New York Mets New York Yankees Oakland Athletics San Diego Padres San Francisco Giants Texas Rangers Washington Nationals

3,490,000 118,791 197,589 177,565 316,245 118,500 123,033 453,561 153,697 107,697 237,090 1,078,151 160,045 105,791 563,599 363,576 163,959

5,516,819 414,744 635,935 1,272,018 1,978,884 631,149 564,745 1,885,528 767,408 376,205 790,491 7,024,953 495,689 489,844 2,001,384 1,779,005 300,757

745,000 52,238 78,017 53,373 70,991 42,639 33,740 443,106 74,576 38,274 71,823 345,349 78,115 36,275 324,886 103,481 47,292

34,377 1,214 3,072 3,201 1,190,242 1,807 1,261 5,549 2,059 1,035 2,339 9,717 2,099 1,175 9,044 6,238 1,747

Hispanic Accounts

# of followers

# of Likes

# of followers

Las Mayores Arizona Diamond Backs Baltimore Orioles Chicago White Sox Chicago Cubs Colorado Rockies Houston Astros Los Angeles Dodgers Los Angeles Angels Miami Marlins New York Mets New York Yankees Oakland Athletics San Diego Padres San Francisco Giants Texas Rangers Washington Nationals

101,000 7,100 6 7,052 English Only 4,801 6,833 English Only 5,401 6,710 9,894 35,700 English Only 5,772 12,000 English Only English Only

109,494 1,474 English Only 32,855 English Only English Only 3,323 English Only English Only 16,739 16,923 289,155 English Only 5,058 109,000 English Only English Only

244 English Only English Only English Only English Only English Only English Only English Only English Only English Only English Only English Only English Only English Only 0* English Only English Only

English Only English Only English Only English Only English Only English Only English Only English Only English Only English Only English Only English Only English Only English Only English Only English Only English Only

* Opened account, but set as private | Source MLB.com and Las Mayores.com

Major League Baseball’s digital strategy is interesting because it’s transforming the TV sports watching experience. MLB has deftly built its online and mobile viewing audience by understanding that and embracing the ubiquity of mobile devices. Cultural insights from Hispanic baseball fans form the backbone of total market engagement. •Hispanic fans are 2X as likely to attend sporting events at least once per week. •Hispanic sports fans watch sports programming with others 55% of are more likely to take in a televised game or other sports programs at someone else’s home, versus 45% of non-Hispanics. Source Nielsen Huddle Up U.S. Hispanics Could Be A Boon For Nets, Leagues And Advertisers 2013 Source Nielsen Huddle Up U.S. Hispanics Could Be A Boon For Nets, Leagues And Advertisers 2013

CONNECTED DEVICE OWNER USAGE WHILE WATCHING TV ACTIVITY

TABLET

SMARTPHONE

Checking sports scores Look up info on athletes Read discussion about TV program on social media sites

29% 41% 18%

27% 29% 12%

MULTICULTURAL SPORTS CONSUMPTION ACCESSING SPORTS CONTENT ON A SMARTPHONE TIME FRAME

TOTAL U.S. P18+

WHITE

BLACK

HISPANIC

April 2013 September 2013

1:08 1:32

1:10 1:35

:44 1:15

1:31 1:45

In 2013, sports events accounted for only 1.2% of all TV programming, yet conversation about sports made up nearly half of all Tweets about TV (49.7%), an increase of 7 percent from 2012. TV Series had the second greatest share of Twitter TV activity at 34%, while accounting for 26.7% of all TV programming.

Source Nielsen Sports Media Report 2013 | Source Nielsen The Digital Consumer Report 2014

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MERCHANDISING & PROMOTIONS EQUIPO ROCA

NEW AMERICAN MAINSTREAM IN BASEBALL

MERCHANDISING & PROMOTIONS The multicultural demographic disruption is also impacting the business of baseball with regards to merchandising. MLB ball clubs now have to put more effort into developing licensed products and promotional merchandise giveaways that effectively engage the bicultural Hispanic baseball fan. Merchandise can be designed and promoted to be targeted at growing markets that previously did not warrant special attention. With an increased emphasis on e-commerce, MLB will need to continuously monitor the consumer behaviors of Hispanics in order to grow revenue generated from team merchandise sales.

entertainment at the other, with consumers spending leisurely days at brick & mortar stores. That said, MLB clubs are seeing a rising proportion of their merchandise transactions migrating towards the Internet. A specific benefit of merchandising is the ability to engage with fans who cannot attend matches, including those who live in other countries an opportunity that has been expanded by the Internet. Cultural engagement helps both to monetize MLB club brands in those regions and markets, and also to build demand for media coverage of the clubs involved.

Cultural branding has already found its way into merchandise offerings. Limited edition products are not a new idea to MLB teams, but can be more fully utilized as a means to increase merchandise sales within the multicultural market. Combining special-edition products with occasion platforms provides the opportunity to sell upscale merchandise. For example the San Francisco Giants created the trend of translating team names into Spanish. Today, just about every MLB has followed their lead and increased their cultural branding efforts related to merchandise.

Research shows that increased engagement among consumers leads to higher spending on merchandise. For example, MLB lets consumers digitally customize their ballpark experience, meaning they then share the sights and sounds of the game with their friends, both in person and online. This not only helps MLB understand what its customers want providing it with information that it can feed into its customer intelligence but also ensure that the fan gets what they want and are more likely to come back. Cultural branding through merchandise offers MLB a pathway towards Hispanic American customer loyalty.

The Giants first donned their Gigantes jerseys on May 21st, 2005 during the unveiling of Juan Marichalâ&#x20AC;&#x2122;s statue outside of then SBC Park (now AT&T Park.) This had never happened in the teamâ&#x20AC;&#x2122;s 122-year history. They in fact were the first team in Major League Baseball to translate their name to Spanish and wear it on their jerseys, not including the Padres of course. It was a decision the organization took to brand the Gigantes name. The organization had to get approval from MLB to not only translate the name but to be able to wear them during Major League baseball games. Since then, the Giants have worn them for a variety of occasions, from the Cinco De Mayo game, to Hispanic Heritage Night.21 Cultural branding efforts like Spanish-language jerseys have the potential to influence merchandise revenue of MLB teams by creating Hispanic consumer demand. Spending on sports merchandising reflects the wider polarization of buying habits, with transactional online shopping at one end, and retail as 21

Generating and maintaining a strong connection to the U.S. Hispanic market via cultural branding tactics in team merchandising and promotions is critical to the long-term success of Major League Baseball. With the migration of MLB team merchandise sales online, along with the mobile shopping habits of Hispanic consumers, the league will continue to explore cultural strategies designed to engage baseball fans in the new American mainstream. Customized and unique limited edition team merchandise that play off the bicultural aspects of Hispanics are examples of what the future has in store. For example merchandise is an important component of MLB Networkâ&#x20AC;&#x2122;s marketing efforts as it makes the brand tangible and promotes awareness to baseball fans. MLB view this as a great way to increase recognition of the network among avid baseball fans.22 Insights driven by bicultural Hispanic fans will likely be incorporated.

Coria, J. (2012, August 12). Los Gigantes de San Francisco. Uni Watch: The Obsessive Study of Athletics Aesthetics.

Deutsch, J. (2012, May 28). Merchandise a powerful activation tool for teams, sponsors. Sports Business Journal. Retrieved from http://www.sportsbusinessdaily.com/Journal/Issues/2012/05/28/Opinion/ From-the-Field-of-Marketing.aspx 22

Hispanic baseball fans increasingly influence the sales of MLB team merchandise. Since 2009, Hispanics have helped sales recover from the economic downturn while also encouraging teams to expand promotions beyond Hispanic heritage month, Cinco de Mayo, etc. •75% of Hispanics have purchased sports-related merchandise within the last 12 months, compared with 62% of non-Hispanics. Source Nielsen Huddle Up: U.S. Hispanics Could Be A Boon For Nets, Leagues and Advertisers 2013

NUMBER OF PEOPLE WHO BOUGHT CLOTHING WITH LOGOS OF MAJOR LEAGUE BASEBALL TEAMS WITHIN THE LAST 12 MONTHS IN THE UNITED STATES, FROM SPRING 2008 TO SPRING 2012. # PEOPLE (IN MILLIONS)

YEAR

22.44 Spring 2008 22.73 Autumn 2008 22.82 Spring 2009 23 Autumn 2009 22.58 Spring 2010 22.04 Autumn 2010 22.55 Spring 2011 23.60 Autumn 2011 24.53 Spring 2012 THE HISPANIC INFLUENCE IN SPORTS Americans increasingly see Hispanic culture influencing American culture in general. MLB team promotions will likely mirror this trend and require the implementation of a cultural strategy. •3 out of 4 Americans agree that Hispanics have had a significant influence on American culture. •59% of Non-Hispanics and 70% of Hispanics consider Latino influence on professional sports teams as “Great to Moderate”

CONSIDER LATINO INFLUENCE ON PROFESSIONAL SPORTS “GREAT TO MODERATE” CITY

HISPANIC

NON-HISPANIC

New York City Miami Phoenix Los Angeles

84% 75% 71% 63%

72% 54% 65% 58%

Source Conill The Hispanic Influence on American Culture 2012

Hispanic fan influence encourages teams to plan and execute cultural branding promotions that expand beyond the general Hispanic heritage month, Cinco de Mayo, etc activation. TEAM NAME TRANSLATIONS Filis Medias Rojas Indios Tigres Mantarrayas Azulejos Astros Bravos Orioles Nacionales Marlines Cardenales Mellizos Rojos Dodgers Mets Piratas Yanquis Diamantes Medias Blancas Angelinos Rockies Cachorros Atléticos Padres Marineros Reales Rangers Gigantes Cerveceros

Phillies Red Sox Indians Tigers Rays Blue Jays Astros Braves Orioles Nationals Marlins Cardinals Twins Reds Dodgers Mets Pirates Yankees Diamondbacks White Sox Angels Rockies Cubs Athletics Padres Mariners Royals Rangers Giants Brewers Source LasMayores.com

SPONSORSHIP

NEW AMERICAN MAINSTREAM IN BASEBALL

SPONSORSHIP Social disruption involving the demographic shift of the United States requires Major League Baseball to pivot its sponsorship efforts towards the new American mainstream. Corporate partners with MLB are position to engage with a bicultural Hispanic population in new and dynamic ways. The need to reimagine the what, how, and where of sponsorship activation is all that stands in the way. Focusing on soccer alone when it comes to sponsorship strategy is not fully appreciating the scope and size of the U.S. Hispanic market, especially its constantly evolving composition and make up. As MLB has shown, marketers who target bicultural Hispanics with cultural branding have the potential to grow their brands.

partnership with one commercial and one SKU. They are looking to wrap their arms around a partnership with TV, digital, social media and in-store promotion more than likely are aimed at multicultural consumers. Many are looking for intellectual property and content that embraces the principles of cultural branding. That is difficult for a lot of sports properties to understand, but not necessarily the case with MLB.

MLB has already realized that their growth is going to come from the Hispanic market. Fifty percent of the growth in the U.S. in the last 10 years has come from the Hispanic market. Same thing applies to businesses and, obviously, MLB and its teams.23 The league has set up a culturally relevant and wellestablished digital strategy for engaging with baseball fans in general, and it is what they’ve done internally as an organization that allows for corporate sponsors to effectively align their business needs. Advertisers and marketers have to be proactive when it comes time to activating a sports sponsorship in the new American mainstream. As ESPN Deportes GM Lino Garcia puts it, “those who get it right really understand that it’s about the whole market. Also, on the marketing side, they’re putting together plans and strategies where the Hispanic (strategy) is up front, it’s not on the back end. It’s not like retrofitting, where all of a sudden you translate the spot for a creative or you’re going to stick in an Hispanic face for a commercial.” Bicultural Hispanics sports fans are a passionate segment of the population, capable of driving trends, given that they more respond more favorably to sports sponsorships than non-Hispanics. This is why cultural strategy plays such an important role in sponsorship activation. When it comes to the new American mainstream, sports sponsors are increasingly looking to holistically leverage major partnerships. That requires a lot of planning and work. Many sponsors are not companies that will leverage a Sports Business Journal. (2013, May 29). Targeting the Hispanic sports market. Sports Business Daily. Retrieved from http://www.sportsbusinessdaily.com/SB-Blogs/On-The-Ground/2013/05/IAS-Hispanic-Sports-Marketing.aspx 23

According to IEG, MLB generated $628 million in 2013 total revenue Because Hispanic consumers take a more favorable eye toward sponsorships, a cultural strategy should be used up front when it activating an MLB sponsorship. •43% Hispanics feel loyalty toward sports sponsorships •41% of this demographic are inclined to buy products offered by sponsors

FAMILY OF NETWORKS BEST POSITIONED TO HELP LEAGUES AND SPONSORS REACH HISPANIC MALES: 39.0% 25.9% 11.3% 8.6%

Univision Deportes ESPN NBC Universal Fox

Source – Nielson Huddle Up: U.S. Hispanics Could Be A Boon For Nets, Leagues, And Advertisers

Source ESPN FRONT ROW

CORPORATE SPONSORHIP With more corporate partners seeking to target and connect with Hispanic consumers via sports sponsorship, it increases the need to go beyond soccer. Baseball offers a unique entry point into the new American mainstream.

CORPORATE PARTNERS OF MAJOR LEAGUE BASEBALL Sponsor: Anheuser-Busch InBev Category: Alcoholic & non-alcoholic malt beverage Start of Relationship: 1980 Sponsor: Bank of America Category: Banking services, affinity credit card Start of Relationship: 2004 Sponsor: Bayer Advanced Aspirin Category: Pain Relief Start of Relationship: 2011 Sponsor: Firestone Category: Tire Start of Relationship: 2010

Sponsor: Frito Lay Category: Salty Snack Start of Relationship: 2006 Sponsor: Gatorade Category: Isotonic Beverage Start of Relationship: 1990 Sponsor: General Motors Category: Vehicle Start of Relationship: 2005 Sponsor: Gillette Category: Shaving products Start of Relationship: 1939 Sponsor: Head & Shoulders Category: Shampoo & conditioner Start of Relationship: 2011

Sponsor: Kellogg’s Category: Cereal & wholesome snacks Start of Relationship: 2013

Sponsor: Pepsi-Cola Category: Non-alcoholic beverage (non-milk based) Start of Relationship: 1997

Sponsor: Master Card Category: Payment system Start of Relationship: 1997

Sponsor: Scotts Category: Lawn care Start of Relationship: 2010

Sponsor: Nike Category: Athletic footwear & athletic eyewear Start of Relationship: 1998

Sponsor: SiriusXM Category: Satellite radio Start of Relationship: 2005

Sponsor: One A Day Vitamin Category: Multivitamin Start of Relationship: 2008

Sponsor: Taco Bell Category: QSR and casual dining Start of Relationship: 2004 Sponsor: T-Mobile Category: Wireless service, hardware & tablets Start of Relationship: 2013 Source IEG 2013

NEW AMERICAN MAINSTREAM IN BASEBALL

CONCLUSION The movement of sports marketers away from soccer when it comes to the U.S. Hispanic market is paramount because of the fact that the demographic itself is shedding stereotypes of the past. While Latin baseball is storied and well documented, the game still serves a purpose in understanding the new American mainstream and the role of Hispanic sports fans within it. The impact of Hispanic American consumers on baseball is substantial, and looking ahead critical to the overall economic health of the sport. Since 2008, a new American mainstream has emerged that challenges the sports industry to adapt and engage with a new set of consumers who eagerly embrace sports beyond soccer. Because of the interacculturation of baseball across the Americas, the sport is now a worthy means of educating and provoking sports marketers with regards to the cultural shift that has taken place in American society. Baseball is a symbol of American culture, and the rising ethnically diverse multicultural Generation Y represents the future of the game in the United States and around the world. Starting with youth participation, and the purchase of baseball goods, Hispanic consumers offer the path towards the diffusion of business innovation that has a lasting impact on sports business and the American economy. History has shown that Major League Baseball data related to attendance and revenue reflects consumer confidence in the United States. This is why the emerging Generation Y Hispanic baseball fan is so important. On October of 2013, U.S. Senator Amy Kobuchar released a report examining the role Hispanic in the U.S. economy, and she states. “Hispanics are integral and growing force in America’s economy and society.” Encouraging for the future of MLB’s business model is the cultural connection they have with Hispanic baseball fans in general. Now, disruptive social shifts of the last decade related to technology, the economy, social structure, demography, and mass media have forced the business of baseball to create a cultural strategy for getting the next generation of fans. Hispanics are now the crucial social and commercial links to the new American mainstream. This requires sports business to make the necessary adjustments to marketing communications and the fan experience to engage Generation Y Hispanic sports fans. Baseball serves a unique purpose in being the sport that best mirrors multicultural America, from the field to the stands. Eventually,

Little League, sporting good retailers, and MLB teams will realize that when it comes to the business of baseball, Hispanic Americans are the replacement for an aging consumer base. The MLB fan is after all, primarily middle- to uppermiddle-class Baby Boomers. While they are highly influential with their wallets today, Boomers influence to the game’s bottom line and impact on the American economy is waning. Fortunately, the Hispanic affinity for the game bridges the cultural gap between baseball’s past and future.

NEW AMERICAN MAINSTREAM IN BASEBALL CONTRIBUTING AUTHORS JUAN ALBERTO DELAROCA President/Founder at Equipo Roca Equipo Roca: is an independent cultural sports marketing consultancy that specializes in multicultural consumer intelligence and engagement. University of Colorado at Boulder Bachelor of Arts and Science History & Latin American Studies Ohio University Professional Master of Sports Administration Favorite Baseball Team: Baltimore Orioles

AARON LAVORATO Athletic Coordinator & Baseball Coach at Alberta Amateur Baseball Council Alberta Amateur Baseball Council: established in 1998, is the central governing body for all baseball associations in Alberta, Canada. Wayne State University Bachelor of Business Administration Finance Ohio University Professional Master of Sports Administration Favorite Baseball Team: New York Yankees

NEW AMERICAN MAINSTREAM IN BASEBALL CONTRIBUTING AUTHORS CHELSEA WILSON Brand Marketing Manager, Worth Sports at Rawlings Sporting Goods Worth Sports®: a pinnacle manufacturer of fastpitch and slowpitch softball equipment. Reflected in the company’s more than 100 years of technological innovation, Worth’s bats, gloves and balls are considered market leaders in the industry. As an on-field authentic brand, Worth is the official softball of the NCAA®, official supplier of the NAIA®, official helmet of National Pro Fastpitch™, and the official softball of several associations such as Amateur Softball Association® and United States Specialty Sports Association®. Georgia College & State University Bachelor of Arts Mass Communications, Public Relations Ohio University Professional Master of Sports Administration Favorite Baseball Team: Atlanta Braves

KEN TROUPE Senior Ticket Sales Executive KTSM: an independent ticket sales and social media consultancy with 20+ years of experience, including with the Phoenix Coyotes, MLS, Minnesota Timberwolves, NY Giants, Turnstyles Ticketing, Sky Blue FC, Atlanta Braves, Texas Rangers, Dallas Stars, and Houston Astros. KTSM uses ticket sales expertise and blends it with social media tactics to develop training programs designed to increase sales. Texas A&M University Bachelor of Sports Management Ohio University Professional Master of Sports Administration Favorite Baseball Team: Los Angeles Dodgers

NEW AMERICAN MAINSTREAM IN BASEBALL

CONTRIBUTING AUTHORS JOSH GRIFFIN Editor-at-Large Educator: a history, government, and economics teacher, and the head girls and boys swimming and diving coach at Dâ&#x20AC;&#x2122;Evelyn High School in Denver, Colorado. Santa Clara University Finance University of Colorado at Denver Master of Administrative Leadership Favorite Baseball Team: Chicago Cubs

BRITTON SPARK Graphic Design & Digital Media Consultant Britton Spark Interactive Multimedia and Design: is a consultancy that uses formal graphic design and sports marketing /media to close the gap between to achieve creative and business solutions for clients in the world of sport. Ohio University Bachelor of Fine Arts Graphic Design Ohio University Master of Design & Visual Communications Master of Sports Administration

If you have any questions with regards to this report, please contact Juan Alberto DelaRoca at jad@equiporoca.com.

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alter O’Malley was a man of many talents. As a baseball pioneer, he foresaw the expansion of baseball to the West Coast, moving the Brooklyn Dodgers to Los Angeles before the 1958 season. Lesser known, was his role in the formation of the

world’s first sports administration program at Ohio University. His hand in the beginnings of the academic discipline of sports administration has led to the graduation of more than 1,200 alumni from the Ohio program alone. O’Malley lamented the lack of properly trained administrators for the Brooklyn Dodgers business-related areas. Wouldn’t it be something, O’Malley reflected, if a university could train students, in areas such as contract negotiation, facilities management, and marketing, which could contribute to more efficient and effective sports organizations like Dodgers? At Ohio University, O’Malley is further celebrated for his profound influence on the larger world of sports administration. Here, his ideas about sports administration took root and has flourished for the past 40 years. As the Ohio University Center for Sports Administration continues to grow, its research and educational initiatives will assure that O’Malley’s legacy will long endure.