THEMES
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06 around the world
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FOCO
PAn AmericAn GAmeS, an all round business
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BIG IDEAS
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breakIng records and the 2-way way
coluMn PassIon for MarketIng:
MUNDO FUTBOL Theme park.
PASSION MARKETERS
NASL
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A league with guaranteed success.
GADGETS
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VIDEOGAMES
Trademarks take over the “Gamers”.
MEXICAN TENNIS OPEN
A business model to follow.
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EDITORIAL
SportS iS our Capital
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he First issue of Sportsnomics has come to your hands; it is the product of a restless team, that is always seeking a personal and professional evolutionary path.
We belong to the Sports Industry, a business sector that has had a significant growth in the last decade in Latin America, which led us to think it worthy of its own analysis. Sportsnomics was born with the spirit of being the leading provider of information in Latin America on business, media and marketing B2B services for the Sports Industry, providing valuable reports in each issue for investors in this entertainment environment. In this 2011, Mexico hosted with great success two major events: FIFA Under 17 World Cup and The Pan American Games in Guadalajara. Regarding the latter, we report the great work done on infrastructure, logistics and trade reached by this international competition. We cannot leave out two business groups with sports properties, that have put Mexico on the map of the world of Sports Pachuca Group with their recently inaugurated Hall of Fame And Soccer World, and the Pegaso Group, with their successful Mexican Tennis Open. Also we present a special report on the investment options on the “new” NASL, within the United States soccer. Undoubtedly, a league that soon will overshadow the MLS. Finally, we wish to thank each of the people who have joined this editorial project; all partners, employees, suppliers and friends. Each one of them is dedicated this Sportsnomics first edition, where Sports is Our Capital... ULISES HERVERT general editor
Benjamín Tovar
managing director btovar@sportsnomics.com.mx
Ulises HerverT
general editor ulises.hervert@sportsnomics.com.mx
adriana Ponce
art and deSign arte@sportsnomics.com.mx
esTHer sanTillán marTíneZ Proofreading
Ulises HerverT
commercial director ulises.hervert@sportsnomics.com.mx
alejandro salinas
commercial manager for international relationS alex.salinas@sportsnomics.com.mx
josé soTo
commercial executive jose@sportsnomics.com.mx
conTacT
contacto@sportsnomics.com.mx buzon@sportsnomics.com.mx suscripciones@sportsnomics.com.mx publicidad@sportsnomics.com.mx
SportSNoMiCS iS a publiCatioN of Marka SportS aNd ENtErtaiNMENt Group Sa of CV. av. lázaro Cárdenas 1007 pte. 2o. piso, Col. Valle de San agustin, San pedro Garza García, Nuevo león tel. (52) 81 8220 9149 Sportsnomics No. 0 is a publication of Marka Sports and Entertainment Group inc. of C.V. bimonthly Magazine. Editor responsible. ulises Hernandez Hervert. reservation certificate number issued by the National institute of copyright. pending. Number of Certificate of legality of title (in progress). Number of certificate of legality of content (in progress). publishing house, av. lazaro Cardenas 1007pt. Second floor, San pedro Garza Garcia, Nuevo leon. printing House. photomechanical reproductions inc of C.V. address. democracias 116, San Miguel amantla Morelos y providencia azcapotzalco, distrito federal 02700. all rights reserved. partial of complete reproduction is prohibited, including any Magnetic Media. Magazine edited and printed in Mexico. the opinions Expressed in articles are those of the authors and do not necessarily represent the viewpoint of the editors.
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AROUND THE WORLD TXT/ SportSnomicS EDitoriAL
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NEYMAR WILL BE tHE FIRSt SOCCEREX AMBASSADOR Soccerex confirmed the Brazilian crack as their ambassador, a preview of the Soccerex Global Convention to be held in Rio de Janeiro from November 26 to 30, 2011.. Pointed out by many as the future of Brazilian football, Neymar is one of the most sought out players and the subject of much speculation about his transfers. And, moreover, he is an idol in his homeland. Commenting on this last great addition to the Soccerex team, Duncan Revie, Soccerex CEO, said: “I am very happy that Neymar is our ambassador. He is a world superstar and it is a big step for Soccerex that a player his size is now representing us. It is wonderful to see his interest for issues both on and off the court at such an early stage of his career, which no doubt will be long and successful,” he said.
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Neymar, will play this role in education and social responsibility issues at all Soccerex events.
RED DEVILS´ ALtRuIStS
Hublot and the Manchester United legendary football club, joined forces in an elegant evening party to support the Manchester United Foundation, which strives to improve the lives of children and youth around the world. The “Red Devils” attended a dinner at iconic Cipriani Wall Street. All players, including Javier Chicharito Hernandez, Michael Owen, Patrice Evra, Rio Ferdinand, Nani and Wayne Rooney, as well as coach Sir Alex Ferguson, participated in the “Art of Fusion Fashion Show” where the more recent Hublot watches were presented. Manchester United and Hublot had already collaborated on three watches, the last of them the ‘King Power Red Devil’, with grass from the mythical Old Trafford incorporated in the indexes. After the presentation, an auction was held which included the Hublot watch ‘All Black Red’ by Sir Alex Ferguson, as well as various collectible items from Manchester United.
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Adidas presented the official balls the UEFA Champions League, European Super League 2011 2012 and Supercopa 2011 will use to play.
tECHNOLOgY AND DESIgN WILL ROLL IN tHE 2011-12 uEFA
The spectacular “Finale 11” is the “spherical” rolling on all stadiums hosting the UEFA Champions League. The design, which uses a wide range of colors, symbolizes all the stadiums, players, teams, even fans of the competition in its creation. Likewise, the ball of the UEFA Europa League is inspired by the trophy of the same tournament, while the texture offers a better grip in all weather conditions. Finally, the “three stripes” mark decided to follow the trend that gave them their success in 2009, after launching their first ball at the UEFA Super Cup official match in 2009. On this occasion, Adidas offered a special ball for the Final UEFA Super Cup, disputed between FC Barcelona and FC Porto. The colors of both teams were reflected when it was created and the trophy in dispute was taken into account.
CARLSBERg CHALLENgES HIS FANS tO AttEND tHE EuRO 2012 The Danish beer company launched the first part of their entire marketing campaign towards the Eurocopa 2012 to be disputed in Poland and Ukraine. The communication strategy range is global and Carlsberg challenges his fans to show what they would do to attend the UEFA Euro 2012. The winner fan of this challenge may present the award to the Best Carlsberg Player at the tournament Great Finale next summer. Likewise, the “Carlsberg Challenge” shall grant other prizes including tickets for the Euro 2012 matches of the group’s stage as well as the event commemorating items. The campaign is focused on Facebook and later will be supported by TV advertising, and an outdoor and BTL marketing strategy.
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3D coverage shall carry out the action at 40 locations, more than 12 sports - some will be retransmitted in 3D for the first time – as well as the opening and closing on July 27 and August 12, respectively.
VIRgIN AtLANtIC RENEWS ItS SpONSORSHIp WItH NFL
The Virgin Atlantic airline has signed a new sponsorship agreement with NFL becoming an official business partner in the United Kingdom. Virgin Atlantic shall be entitled to use the designation “official partner of the NFL ” and shall continue as the flying company for the “Pepsi Max International Series”. As part of the agreement, Virgin Atlantic shall transport the Tampa Bay Buccaneers and Chicago Bears for the match that they will dispute at the International Series on October 23 at Wembley Stadium in London. This is the third consecutive year that the company has worked with the NFL to transport their teams to this event.
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“There is no doubt that the Olympics offer the best content for the 3D market,” said Panasonic executive Takumi Kajisha, the company that manufactures the cameras used in retransmissions and sponsors the Olympics for the last 20 years.
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VOIt kEEpS ItS FIgHt AgAINSt BREASt CANCER
For the 5th consecutive year, the Mexican sport company VOIT, with the Mexican Football Federation support, the Foundation For Us Women as well as the Ministry of Health, supports the fight against breast cancer, through football, through its Campa単a Rosa (Pink Campaign) 2011, which includes launching of the Pink Ball Xacte VOIT, a line of clothing and alluding accessories to the fight against breast cancer. From stage 12 to 16 of the Mexican Football First Division Championship the Pink Ball Xacte VOIT will be used, its color and design will send the selfexploration message to thousands of women across the country.
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pRESALE SOLD Out FOR tHE CLuB WORLD Cup JApAN 2012
The two week ticket sale exclusively for VISA cards holders for the FIFA Club World Cup Japan 2012 held by TOYOTA concluded. Users, who bought all tickets within an hour, were able to purchase tickets for the semifinal to be played by the FC Barcelona, for the match for the third place and final. The FIFA Club World Cup Japan 2012 will be held at the City of Toyota and at Yokohama on December 8 and 18.
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COMEX AND CORONA tEAM up tO CREAtE, “WHO pAINtS tHE CORONA (CROWN)?”
Grupo Modelo, a leading company in the manufacture, distribution and sale of beer in Mexico, and Comex, two proudly Mexican groups, were joined by the project “Who Paints the Corona (Crown)?” Through boxing and wrestling, two sports that have given Mexico great glory, the brands Comex and Corona launch “Who Paints the Corona (Crown)?” a new adventure with which they will support young Mexican athletes so they can meet their dream of becoming champions. The project has the support of the AAA, the World Boxing Council (WBC) and Promociones del Pueblo (People´s Promotions). “Who Paints the Corona (Crown)?” shall support talented young people eager to grow and excel to build themselves a better future, change their life and achieve greater well-being for themselves, their families and their communities. Both companies are confident that this project will find new promising young people for the future glory of Mexican boxing and wrestling. They are also seeking that the stories of “Who Paints the Corona (Crown)?” champions become inspiring examples to more people. In this mission to fulfill the dreams of new promising young people, “Who Paints the Corona (Crown)?” will be supported by the inspiration of famous box and wrestling figures, who have written their success stories through the years. Among the famous boxing figures participating in this project are Alfonso Zamora, Carlos Zarate, Chucho Castillo, Humberto “La Chiquita” Gonzalez, Lupe Pintor, Mantequilla Napoles, Miguel A. “El Raton” Gonzalez, Pipino Cuevas and Ruben “El Púas” Olivares. The AAA participating in these events are Cibernetico, El Mesías, Faby Apache, La Parka, Octagon, Sexy Star, Silver King and Xtreme Tiger.
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BANAMEX RECOgNIzES SuB 17 CHAMpIONS
Banamex, the Mexican Football Federation and the Marti Group launched a new credit card similar to the Verde Banamex Deporteísmo (Sportsism Green Banamex), showing a commemorative picture of the Sub17 world champion team. The Verde Banamex Deporteísmo (Sportsism Green Banamex) offers cardholders benefits such as access to presale tickets for games played by the National Team, access to team training, autograph signings, official items and invitations to special events and exclusive promotions. The new card provides other unique benefits such as discounts and special prices at the Deportes Marti stores and Sport City fitness centers and a loyalty points program for purchases at all affiliated businesses in Mexico and abroad, which may be used to acquire articles. Currently there are over 100 000 cardholders, to whom the benefits of the sportsmanship platform will be automatically granted. The expectation is to have more than 200 000 fans as holders of the Verde Banamex Deporteísmo (Sportsism Green Banamex) credit card before the World Cup 2014 starts.
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REAL MADRID AND BARCELONA. tHE WORLD’S RICHESt
Real Madrid and F.C. Barcelona are, for the second consecutive year, the world’s richest clubs, according to the Football Money League study prepared by Deloitte, which analyzes financial information for the 2009/10 season.
Last season, Real Madrid billed 438.6 million euros, 9% more than on the 2008/09 season, and is for the second time the only football club in the world to overcome the barrier of 400 million billing. Also, this is the sixth consecutive year that Real Madrid leads the classification, and approaches the record established by the Manchester United of eight consecutive years, from the 1996/97 season to the 2003/2004 season. The Real Madrid income distribution was very similar in three of the areas analyzed on the report. By way of tickets, the club income was EUR 129.1 million (27% more than last season). For television rights, the income was EUR 158.7 million (about 1% less than last season). And in terms of advertising, sponsorship and merchandising the income was EUR 150.8 million (8% more than in 2008/2009). On the other hand, the F.C. Barcelona remains as the second football club more profitable in the world for the second consecutive year. Their figures increased from 9% up to 398.1 million euros. The club registered 97.8 million (2% more than in 2008/2009) on account of tickets, 178.1 million (12% more) on television rights and 122.2 million (a 9% more) on advertising, sponsorship and merchandising. The club recent sponsorship agreement with Qatar Foundation will boost the FC Barcelona profits on the next season, when it will exceed 400 million euros.
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MILLION DOLLAR LOSSES FOR tHE NBA The NBA canceled the entire preseason and could do the same with the first two weeks of the regular season if there is no labor agreement with the players. The NBA commissioner, David Stern, commented: “We were not able to achieve the progress we expected and we were not able to continue negotiations either.� The owners proposal to players to equally share the profits generated by basketball, was rejected. Calculations are now made over other figures: the millions of dollars the NBA may lose if the stadiums remain closed. The players had offered to lower their guaranteed profits to 53%. They considered that this might give the owners more than one billion dollars in six years, but refused to improve their offer.
MERCEDES BENz SEDuCED BY NFL The New Orleans Saints stadium and host of six super bowls will change it name to Mercedes-Benz Superdome as part of an agreement with the German automobile industry. The value of the agreement is close to 10 million dollars per year. The contract will have a 10 year term, due to the fact that it will host the 2013 superbowl edition, ensuring the exposure of the international brand during the sporting event, which grants one of the worldwide largest audiences. Mercedes-Benz has similar arrangements in stadiums in Shanghai and in the German city of Stuttgart. This represents the first adventure with a NFL giant for Mercedes-Benz, after having being linked to golf, tennis and Formula One.
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TXT/ RicaRdo BRavo PHOTOS/ coPaG
PAn AMEricAn
GAMES An All round BuSinESS AndrAdE GArin And hiS MillionAirE ForMulA For JAliSco markasports.com
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MDD for GuaDalajara after the Pan aMerican GaMes
Telcel Tennis Stadium.
ransformation of the city of Guadalajara started on a 750 million dollars budget, the main seat of the continent biggest sporting event.
Some of the changes currently seen in Guadalajara on the eve of the third Pan-american Games held in Mexico are tunnels, transport network, 4000 hotel rooms, streets and highways, 23 new sports scenarios and one floor on top of the Expo-Guadalajara building. carlos andrade Garin, General director of the organizing committee for the Xvi Guadalajara coPaG Pan american Games 2011, defined with one word that the only thing absolutely necessary to make the event a complete success is: “work”.
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Before the Pan american Sports organization (PaSo) made known Xvi Pan american Games seat work has been the element that has never ceased to be. and the initial goal of all this work is to comply with all the “requirements” the size of the event demands. The Rio de Janeiro Pan american Games 2007 had a cost of 2.400 million dollars. The Guadalajara will have a cost of $ 450 million less, although 23 new scenarios were built for different disciplines.
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FOCUS The also director of the Sports institute in the state of Jalisco, makes a numerical comparison with the closest previous event held in Brazil 4 years ago, appealing to their high level of organization and effectiveness. andrade Garin has been the driving motor of all this machinery that moves around Guadalajara coPaG 2011. He has all figures perfectly well-ordered in the head but dismisses them by saying that the most significant impact of the Guadalajara Pan american Games 2011 is the structural legacy that remains in the people minds. But he knows everuy time he arrives at his office, the accounts and mathematics book coming out from his head, will open again showing the numbers of the Xvi Pan american Games.
The economic income for the city of Guadalajara, according to andrade Garin, is estimated to be about 1000 million dollars “although that figure could grow with the mood of the Games and the excitement generated by the competitions,” and that will be seen in a similar period, after a year the Pan americans had been held. after all that, the most important thing remaining in Guadalajara is all the Pan american Games infrastructure for people to have sites to train. Finally, what it is all about is that sports stay in the community as a cultural element so much needed. The Secretary of Tourism of Jalisco provided data on the consumer goods and services expenses likely to be made by
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ThE onlY ThinG ABSoluTElY nEcESSArY To MAKE ThE EVEnT A coMPlETE SuccESS iS: “WorK”
domestic and foreign visitors during the continental mega event. it is estimated that the tourism economic flow is about 110 million 400 thousand dollars, 85.6 million will come from foreign tourists and 24.8 million from local and domestic tourists. The first 1000 jobs were created in 2007, about four thousand 600 were created in 2008, the figures increased to more than 25 thousand 900 jobs in 2009, during 2010 the figures increased to 29 thousand 600 and in 2011 it reached almost 50 thousand jobs, most of them temporary jobs. But one item that becomes a very significant role during the Xvi Guadalajara Pan american Games 2011 is sponsorship.
ECOnOmiC FigUrES FrOm thE PAn AmEriCAn 750Mdd initial Budget. 1950Mdd total cost of the Games. 80Mdd provided by Sponsors. 110Mdd Economic income From tourism. 380 MdP cost of the Aquatic center.
thE OthEr nUmBErS in thE PAn AmEriCAnS 4000 hotel rooms. 23 new sports scenarios. 10 GBPS of capacity offered by Telmex for connectivity. 50,000 new jobs. 850 hrs of TV were sold as transmition rights.
Telmex, as technology partner will provide to each of the Pan american Games sports sites with a connection of up to 10Gbps with an investment of 30 million pesos, this capacity is equivalent to give infinitum broadband connectivity to 185 thousand people, allowing efficient transmission of voice, data and video of the Pan american Games. odEPa requests various requirements that must be met by those who aim to obtain a venue for major sporting events. Structure city, new business captation
to strengthen the identity of the sports facilities and infrastructure, formulas generating jobs and of foreign investment.
Guadalajara received the last months more than 27 000 people who joined the the scenarios design and construction work, and who have contributed to the Games early logistics and organization.
The 13 major sponsors provided 80 million dollars to pay for everything concerning the events logistics, lodging, food, judges and Pan-american family working for the event. Scotiabank, the sponsor of the main event, the water competitions, and at a cost of 380 million pesos, ordered the building of the Pan american aquatic center, with a capacity of 4500 spectators. it also has two 50 meter olympic pools and a diving pit where Mexican Paola Espinosa expects to crown her dream of obtaining at least three gold medals just as she did in the Pan american Games in Rio de Janeiro 2007. The other main sponsor TELMEX gave coPaG 2011 the athletics Stadium where the track and field competitions will be carried out.
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BIG IDEAS TXT/ Ulises Hervert PHOTOS/ MUNDO FUtBOl
THEME PARK WITH AN INVESTMENT OF 25 MILLION DOLLARS, GRUPO PACHUCA INAUGURATED THE FIRST INTERACTIVE HALL “MUNDO FUTBOL” AND THE FIRST HALL OF FAME IN THE WORLD.
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decade ago, the dream of building these two precincts roamed the brilliant mind of Jesus Martinez Patino, Chairman of Grupo Pachuca, but was only 3 years ago when all the machinery to carry out this project was implemented. there was no need to carry out a great research project to create this concept, so they apply themselves to the task of searching around the world for “successful models” interacting with Martinez Patiño plans.
“We applied ourselves to the task of finding people that would help us create this concept and began to visit museums and different sports halls of fame all over the world, and we realized that the best managed was that of the NFl” commented Martin Pelaez” Director of Mundo Futbol (Football World) to sportsnomics”. thus, Grupo Pachuca entered one of the most important agreements, obtaining the NFl Hall of Fame support and statutes, which has operated flawlessly for 44 years. Once the type of operation to be followed was decided, it was important to find allies to build the concept, so “we teamed up with the people who made the Papalote Museum. they have been operating it for 20 years and have created 19 museums around the world with different themes and this was the best option,” commented Martin Pelaez.
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BIG IDEAS
SEEKING TO ADD MORE SPONSORS
the concept, unique in the world, also appealed to business partners accompanying Grupo Pachuca through the football team. “We have 4 major sponsors, Banorte, Office Depot, Marti / sport City and exxonMobil. they called their participation for 5 years and we are negotiating with them to have two more sponsors,” said the General Director of Mundo Futbol (Football World). One of the benefits for the sponsors is the traffic of visitors to the site, an estimate of a 300,000 increase at the end of the first year. Other interesting activities for the associated brands, is the attendance of the world of sports personalities to 3 or 4 special events per year, such as the one taking place next November 8, when the inauguration ceremony will take place for the greatest legends of soccer such as Pele, Franz Beckenbauer, Michel Platini, Zinedine Zidane, among others. each company linked to Mundo Futbol, is sponsoring a section of the interactive salon. the exhibits are constitute of 4 main themes: History, preparation (equipment, training,
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game), match (stadium, actors and action), promotion (marketing and media), allowing a better recall of the brand among the attendees. Banorte is sponsoring the section “enterate” (learn about), with information about Football History, and being present in the site with their AtM. “Prepárate” (Be prepared) belongs to Office Depo retailer, inducing players to become professional, they receive information about nutrition, exercise and discipline. the “Partido” (Match) is sponsored by the lubricants giant, exxon Mobil. in this section they receive information about stadiums, grasses, arbitration and everything about a football match. the fourth section: “triunfa” (Win), is the property of Grupo televisa, tv Azteca, esPN, Foxsports among others. With television sets, radio, social networks, print media, etc., the player becomes aware of media importance for football. Grupo Marti / sport City has a branch in the neighboring area, however, Mundo Futbol has more properties available for any brand to associate its communication strategy with this innovative concept, located in the city of Pachuca, Hidalgo.
Martín Peláez, Manager of Mundo Futbol.
“We hope to recover the investment in 5 years”: Martín Peláez. THEY WANT TO SPREAD THIS “BRAND EXPERIENCE” OUT OF THE FOOTBALL CRADLE.
As any business, Grupo Pachuca aims to consolidate and expand, as Martin Pelaez said: “One of the projects is to replicate the Mundo Futbol concept in other cities of the country, even taking it abroad, but for this we shall wait at least 1 year, first it has to be consolidated in Pachuca “. the cities likely to bring the interactive salon are: Guadalajara and Monterrey, which are markets with a great football fans group. the model of business is to be analyzed, since it could be carried out through franchises or a new investment from the owners.
EFFECTIVE COMMUNICATION STRATEGY
Mundo Futbol is not just for visitors of the local market, but to attract people from other places in Mexico, even from abroad. to accomplish this, it has been designed an effective communication strategy to make it know more each day.
“the campaign is constituted by 70 spectaculars distributed in different places such as Mexico City, Guadalajara, Monterrey and other cities. We have advertisements on the Metrobus and agreements with different printed media, radio and social networks”, commented Martin Pelaez. this campaign in the media has thrown its first results in the first two and a half months of operation, 30,000 visitors were received. 28% are from Hidalgo, 72% from outside the city and 10% are foreigners. the second state more visible in the ticket office, is Mexico City, the third is the state of Mexico, and the fourth is veracruz. Of the 32 states of the republic, 31 have already visited it. Undoubtedly, these figures are encouraging and once again demonstrate that Jesus Martinez and his staff are a new visionary generation of modern football. What other surprise might be in the Football Craddle?
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BIG IDEAS TXT/ ULISeS HeRveRT PHOTOS/ NASL CoRTeSy
A LEAGUE WITH
GUARANTEED
SUCCESS A NEW NASL HAS BEEN BORN ON THE WORLD FOOTBALL MAP. ITS LEADERS ENSURE THAT THIS 2ND DIVISION LEAGUE WILL HAVE A VERTIGINOUS GROWTH IN NORTH AMERICA
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n 2009, a group of businessmen from the United States, Canada and the Caribbean, found the opportunity to bring top-level football soccer at affordable prices and in small stadiums to cities eager to enjoy this sport, so they gave life to a new version of the North American Soccer League.
It was not until February 2011 when the United States Football Federation recognized it, and that is how this 2nd Division League began operating with a total of 8 teams, distributed in the United States, Canada and Puerto Rico “The first reason to create the NASL, is for participants teams to have a better opportunity to grow and achieve success as a business. Here, they will have participation vote on the league expansion and on the long-term vision strategy “, commented David Downs, NASL member, to Sportsnomics.
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David Downs, Commissioner of NASL.
In April 2011, the NASL had its opening day with the Atlanta Silverbacks, Carolina RailHawks, edmonton FC, Fort Lauderdale Strikers, NSC Minnesota Stars, Montreal Impact, Puerto Rico Islanders FC and Tampa Bay teams. The Montreal Impact has been admitted to the Major Soccer League (MLS) from the 2012 season, and will be replaced in the NASL by the San Antonio FC Scorpions. Most of the NASL founder teams had played in the old USL second division, currently the third division.
CItIES wIth opportunIty for InvEStmEnt
The strategy of the NASL, is to increase number of participants each year, as David Downs assures: “We hope that for 2013, we will have 10 teams and on 2014 we will reach 12”. our goal is to have between 16 to 20 teams.
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“If we look at the 25 largest cities in the United States, 9 of them have no team in the MLS, NASL, or 3rd division. These cities are very attractive to expand. Some, like San Diego, Detroit and Phoenix are big and have great passion for this sport”. To carry out these plans for expansion, “we have to find investors or owners of teams that ensure their financial strength in the markets where we want to bring soccer” says the Commissioner of the League.
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BIG IDEAS
We are looking for investors with financial strengthens for new markets Compared to other sports leagues in the United States, NASL gives greater autonomy to teams in the commercial aspect. Downs hopes that in the near future this may be more balanced with the league generating commercial revenue for its operation and as well for benefits of its membered teams.
nASL numBErS 28 Matches disputed in a season by team. 14 home games each team will play. 14 away games each team will play. 8 participating teams in the NASL. 7foreign players allowed for each team . 6 teams qualify for the play offs. 2 teams qualify directly to the semifinals . MORE INFORMATION. nasl.com
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Today the NASL is funded by administration annual fees of the participating clubs: “We also seek revenues by sponsors and Tv rights, we do not know how much we will get for years 2 and 3, but expect it to be much from these 2 items. We also have a fund that original teams helped capitalize and pay membership fees of new teams”, commented Downs. For the growth of any sports property nowadays, it is indispensable to have events broadcasting to build their identity with fans. “This year the games were broadcasted on Tv in some local markets and in general by live streaming over the internet with free access,
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It is the right time for sponsors to get involved in the league. allowing fans to try the product an easy way. We are exploring 3 televised possibilities for a future, from Fox Soccer Channel, Univision Sports and Gol Tv; with them we are analyzing the options but have not yet decided what will be the best for us”, emphasized Downs The same as the air time that a sporting event could have through Tv, business partners play a vital role to strengthen it. There are few sports properties as accessible to sponsors and partners, but above all, hold so much potential for growth. “We belive that everything that has to do with the sport is gaining more and more followeres in the country (USA), and there are many cities that do not have a team with which to identify. We offer a high level soccer which you can see live at a very reasonable price, “said the Commissioner.
The NASL even being a 2nd Division League is not the circuit rise of the MLS nor is there a working relationship, recognized David Downs”. “officially we do not have a direct business relationship, but we are constantly talking to them (MLS) on how we can work together off the court. This summer we added a policy league, based on one of the MLS, and talked to work on ways of developing the next young players coming to the United States”, concluded Downs.
who IS DAvID DownS
David Downs has served as Commissioner of the NASL from April 2011. Previously, Downs worked as Executive Director of the USA Bid Commission, the organization created by the U.S. Soccer Federation (ESF) to participate in the bidding process to host the FIFA World Cup in 2018 and 2022. Before that, Downs was President of Univision Sports. In that position he was responsible for the acquisition of television rights and supervision of sports programs production of the three Univision family networks. At ABC Sports, Downs served as Senior Vice President of Programming. He was instrumental in the success of negotiations to secure the rights of U.S. TV for the start of the World Cup with U.S. ‘94, as well as countless other sporting events.
thE offICIAL BALL
Past July 4, the Spanish sports arm Joma, made the launch of the official ball in the league. Joma designed a custom ball that incorporates for NASL the original icon of the NASL, the star, which represents the evolution of the image of the competition from 1968 to 2011.
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BIG IDEAS TXT/ RicaRdo BRavo PHOTOS/ Konami and Ea SpoRtS
Major sponsors have detected a large niche Market in video gaMes. their coMMunication strategy has invaded this technology platforM.
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he gaming world is a space. Yes, players live an alternate reality in which there is only room for more like them because they are human beings with the same tastes that share the experience of a good digital adventure. in this variant we highlight the sports games each year are more detailed and lifelike. the clearest example are the madden football game (in different versions), or soccer as Konami’s pES or FiFa from Ea Sports. Soccer game reach a huge number of players. thus, millions of cds are sold in the world for all types
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BIG IDEAS of consoles, causing a lot of virtual games allowing even weaker teams to become world champions,thanks to the ability at controls of their stars. With so many minutes of virtual games, the great minds of videogames, and of businesses, have found a new market, which is also a disguised as reality, we refer to advertising within games. the first record in living memory of the videogame advertising is adventureland in 1978, announcing an upcoming game from the same company.
But the natural environment for in-game ads, are the sports. Sports look everywhere to announce to its customers, in the case of soccer, the fences on the sides of the field are already part of the game and with that pretext videogames have decided to include them (to make it look more realistic), and in passing selling to large companies wishing to reach an audience between 8 and 40 years. Gradually, videogames included advertising space and for millions of dollars began to sell them. But, how much could an advertisement within a videogame cost?, the answer is simple:
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The first brand to appear was McDonalds millions of dollars. in 2000 the first major company to advertise was mcdonalds that disbursed two and a half million dollars for its brand to be seen by the target audience. one game that has introduced advertising on its programming is pES (pro Evolution Soccer) from Konami that has several European brands as customers, which translates into several million dollars of profit.
this has grown so much and still has so much potential that Google has developed a new system called adSense that allows developers to integrate ads in the space where gamers do not suffer. Konami brand has developed greatly this business model, armed important contracts with pepsi. the in-game advertising has been an evolution of marketing; there are agencies that specialize in selling advertising spaces within the small screen. But the most important has been the reaction and acceptance of players to these ads, is that really are the consumers who dictate the guidelines on advertising. But the truth is that gamers have assimilated very well this new business trend, consume it within “their environment� and see it as part of
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the reality of this alternate universe in which they live. this form of advertising has been transformed and now also in breaks into the games has started to introduce banners of companies that pay for their space.
Reebok, doritos, axe and many more not only have as showcase the next pES but may see their trademark in various other titles such as metal Gear Solid. marketing and advertising is one of the industries that moves with most speed, maybe the one that follows is videogames, this new fusion between both has become one of the most profitable businesses in recent years, but better things are yet to come, because in the face of favorable public response leaves the door open to more successful combinations.
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BIG IDEAS TXT/ RicaRdo BRavo + ULiSES HERvERT PHOTOS/ MExTEniS
THE MEXICAN TENNIS OPEN HAS BECOME THE MOST IMPORTANT PREMIUM EVENT OF OUR COUNTRY. ITS GROWTH AND POSITION MAKE IT THE MOST ATTRACTIVE FOR FANS AND SPONSORS.
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AModel Business to Follow W
hen we say that this event, part of the aTP, left in 2011 an economic impact for the State of Guerrero of 450 million Mexican pesos in just a week of activities and that was above the income obtained by September 16 long weekend (201 million Mexican pesos) we realize the success that this event means today. The organizers’ journey over 18 years has not been easy. They gave away tickets in the early years and moved to acapulco to make it more attractive. currently more than 45,000 people enter the open and add more than 32 business partners. Undoubtedly, the growth trigger to the Mexican Tennis open is its dna: the show that is offered on the court. However, the work that has been done from the desktop has been key to a successful business model in the Sports industry. “our success is to sit down with each of the sponsors and evaluate what has been the formula that worked both to them and us. and since 5 years ago we present a report, provided by an external company, on return of investment, which reflects that each year has risen for sponsors”, said Jose antonio.
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BIG IDEAS
450 million Mexican pesos in economic flow José Antonio Fernández, Marketing Director of the Mexican Tennis Open.
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in Mexico, Tv rights belong to ESPn and full coverage was 41 hrs. with 14 minutes live Monday to Saturday. The communication strategy has also been strong, and strategic alliances with Grupo Editorial Expansion and Grupo imagen have enriched the media platform, supplemented with the media campaign sponsors make such as HSBc and Telcel. “The direct cost of the media campaign comes around 2.5 million Mexican pesos. all of these benefits make no more available spaces for more business partners for 2012, all have renewed their support for the event due to its success. “We are sponsors overdrawn, we only need a watch brand, but we are actually complete and very little we can offer to new business partners,” Fernandez acknowledged. The sponsorship income is between 45% and 50% for Mextenis, the box office contributes 35% to 40% and the rest to The Roi currently trading partners merchandising and these social around get goes from 3 to 5 for each Mexican the property. peso invested. These numbers are key to making decisions in planning the communication strategy of the brands. SOCIAL PLATFORM AND PR in the Fairmont Princess, location of ATTRACTIVE PROMOTION the event in acapulco, personalities AND DISSEMINATION are seen parading from all spheres. another factor for which the sponsors The Mexican open also has positioned seek to associate with this “property” itself as one of the most important is the great media coverage it has social platforms of the country. This nationally and internationally. seduces also the sponsors who take the decision to do synergy to extend their “The international coverage it had public relations strategy. in 2011 was in 23 countries, 43 Tv channels and presence in 5 continents. “our business partner HSBc uses this 593 hours were broadcasted on Tv, of benefit to reward their best customers which 73% were live, throwing 6 million and get them to the open to tend them viewers, only overseas”, commented a as they deserve. They make an extension Mextenis executive. of its public relations strategy”.
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“To our event there is attendance from employers, opinion leaders, socialites etc... an event is formed that is difficult to have in the country”, said Jose antonio Fernandez. The “virtuous circle” is completed on the playing field with the factor that is an open tournament with aTP World Tour 500 category. The tournament is at position 12 of the 64 who complete the aTP circuit, offering more points and a bag of $ 1.5 million US dollars for men and women.
CHALLENGES AND PROJECTS AROUND THE OPEN
The aim of the organizing committee for 2012 is to substantially improve, what happened in 2011 in terms of revenue, care, service and entertainment on the court. The 2013 will bring a new building to house the tennis tournament. With an investment of close to 12 million US dollars, Grupo Pegaso will begin the construction of a home stadium (very close to where it is played now) will also help to have events at the same level throughout the year in the paradisiacal port of acapulco. Grupo Pegaso will begin to diversify its range of sporting events in Mexico. Today’s product portfolio is comprised of the atlante Soccer club, the Mexican Tennis open and this year added the first Mexican Gymnastics open, which will take place on 9-10 december, on the same port of the State of Guerrero. it is expected to bring more international sporting events, targeting different niche markets of fans and sponsors no one has yet exploited.
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COLUMNs TXT/ Erik BaEza Executive Manager of Marketing & Communications, Fox Sports Latin america
breaking records‌ and the 2-way way I HAVE HAD THE FORTUNE TO WORK IN TELEVISION FOR THE LAST 18 YEARS, ALWAYS UNDER MARKETING STRATEGY, AUDIENCE RESEARCH, VIEWERS HABITS, ALMOST RELIGIOUS LIKES AND AFFINITIES THAT DETONATE DEMAND, TUNING AND FOLLOW UP OF PROGRAMS, TELENOVELAS, SERIES, SHOWS AND SPORTS EVENTS.
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he past 12 i have had the privilege to witness the greatest sporting moments that snatched in an euphoric and instinctive way the howl of packed stadiums that binds to millions of viewers, listeners, of a ball in all its shapes, sizes and sports disciplines.
i have witnessed and sometimes taken part of the birth and evolution of various media from the dish, Cable TV, DTH cellular telephony, TV wars, the bubble of the early internet portals, the Triple play of the birth and rise of social networking, HD, video on demand, Smart TV and some other things that are coming out of the oven these days. i plead tireless observer of the stands, their joy reactions, their permanent interaction with the players, the referee, counter team and in the midst of it all, brand products, concepts and paradigms created around sport world and the way in which strategists try to hit with our brands those legions of euphoric public
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in this intense ride by the media, to succeed and break the established records, it is essential to keep up to date and understand that the only thing permanent is change which dramatically increases speed by technology and the interrelationship between media. Just as the success of a strategy is determined by the idea behind a certain direction you are trying to take, to develop the paradigm needs a creative mind that can see the stage from an angle different from all other competitors in the market. But change needs not only great paradigms. analyze your own business and the segment where you compete and see the competitors and consumers follow certain behavior patterns that make up the dynamics of that market. if you intend to play by the rules of the game look a different way to develop these patterns, you can untie these paradigms, stand out from other competitors and in less than you think you will be breaking records!.
Share your experience and break records together making this column a 2-way way writing to me to: erik_baeza74@hotmail.com
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COLUMNS
TXT/ ROgEliO ROA
I STILL REMEMBER AS A CHILD I USED TO WAIT FOR A SUNDAY RADIO PROGRAM CALLED “SPORTS CARAVAN”. EVERY 15 MINUTES IT INFORMED ON THE MOST SIGNIFICANT HAPPENING IN THE MAIN FRONTS WERE IT SOCCER, BASEBALL, FOOTBALL AND EVEN TENNIS.
PASSION MARKETERS
MANAGEMENT IN PROFESSIONAL SPORTS ORGANIZATIONS
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t’s been 25 years since the times of the program at the XEB and over time, sports activities have become an entire industry that generates spillovers that at that time would have been unimaginable. This new reality has led organizations that feed the show (professional clubs and leagues) to the professionalization of its sporting and administrative structures. Within this rethinking and in function of the change experienced by the world, questions arise to establish the best ways to manage a professional sports organization (meaning with this an organization that offers a product in a court against a market that demands the entertainment and who is willing to pay for it). As a result, these “brands” today have different ways of operating their structures that are often as diverse as debatable. On the one hand, there are American models where franchise systems seem to have worked well, have worked in a stable balance of forces as they believe that the amusement their consumers get comes from the following principle deserving analysis. A
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sport organization (club or franchise) is as valuable as the league’s strength is as a whole. For that and the good of all our partners, it is convenient a just distribution of titles, championships and crests. As a result, in these models there is no drawdown or category loss. On the other hand we find the soccer vision of “i am as strong as i weaken my opponents because in the end the more wins and cups i obtain, my marketing penetration increases as well as my income”. This logic is what has prevailed in most soccer leagues in the world and therefore, their competitive systems are made to uplifting the strongest and weaken the weaker. But beyond the sports opportunities and even entertainment styles that we like, the point is arguable. Summing: which management model is better that is consistent with the objectives that the franchise league or organization was created.
Twitter@RogelioRoaG Director of Marketing and Communication of Club Jaguares de Chiapas
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ADVERTORIAL
Marketing investigation
in Mexican sports: could it be? In an Industry that annually sells more than 8’195,000 tIckets to sportIng events (InegI2009) It becomes IncreasIngly ImperatIve to have relIable InformatIon that wIll help your key players to make decIsIons to achIeve exploItIng In a more effectIve and effIcIent manner the full potentIal of the market. The market research boom worldwide goes back slightly more than 20 years, was during the 80s era that primarily mass consumer brands began to make comprehensive studies to fully explore the profile of its consumer. In the sports industry, one of the events known as Hensel’s tragedy was one of the first historical event that triggered a series of anthropological and sociological research in order to analyze the roots of violence in the stands, better known as hooliganism experienced by the British population at the time. In Mexico, the first signs of sports research have been the isolated efforts that some sponsors developed on their own as a response to the large investments being undertaken and where it was required to have notions of the real impact such publicity generated among consumers. However, not until early in the third millennium we find the first professional efforts by strategic business intelligence to make a reliable analysis on the trends of the fans and advertising recall indexes. More than together, for an industry that annually produces an economic impact exceeding approximately 5 billion Mexican pesos. Media monitoring, audiences analysis and ratings are now consecrated tools and also used for numerical analysis that organizations perform, but in 2003 with the intent to understand more clearly the social phenomenon of soccer in Mexico, De La
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Riva company launched a product to understand from the anthropological point of view (and with an qualitative methodology) different behaviors and characteristics of football fans in our country, so that it could provide a useful tool for decisions making of the main sponsors allowing to explore further some important insights at a much more affordable cost than trying to carry out such research on an ad hoc form to one company in particular. It is so that other agencies and industry players have awaken to the interest to have more information to improve decisionmaking among those companies that opt for the sport as a vehicle of communication with their customers and consumers. Today we can find studies covering the subject from an ethnographic/anthropological perspective (De la Riva, Universidad Iberoamericana) which integrate an exploratory phase and yield important information in terms of consumer motive, consumption patterns and generally yield higher elements to understand the fans. There are other efforts such as Consultation Mitofsky which have transcended the exploratory phase of research and has unmarked itself from monitoring means tracking polls for which they have a more quantitative approach to the fans, providing thus information about how the sport is lived, which
has contributed to the concept of Market Intelligence Applied to Sports, in our country, recently under development and therefore, all related to studies that yield valuable information is no exception. However, there are increasingly more Top Sponsors that begin to designate part of their budget to this area and is even more transcendent that sports organizations, federations and clubs begin to understand their relevance
efforts have even greater impact and gives an estimate of the affordable market to conquer. Similarly, and in order to contribute to the intense work of professionalization in our sports industry, since four years ago Dreamatch Solutions, in a strategic alliance with Serta Marketing Research Partner, has launched a syndicated quantitative study which analyzes in depth the consumption motives of soccer fans of soccer. Its name Sports Intelligence.
Let us not be surprised of the Next Growth within our industry on this issue. The professionalization in terms of sponsorships today demands it and fortunately, more and more companies offering a solution tailored to the needs and budgets of the different actors. The present times require that every dollar invested in sponsoring a property is justifiable and ultimately, to the extent that the closer we get to precision counting with accurate information to make a decision, it will be closer to have a return on investment much more real.
From the beginning, this study had a total focus to brands and sponsors with indicators that measure the same recall advertising that behavior habits before, during and at the stadium as well as preferences, purchase intention and socio economic profiles, among others. Here are some of the most representative hard data of the latest edition. These combined efforts with the need for companies to find much more tangible ROI on every investment made
60% of football fans in Mexico are divided into 4 teaMs chivas 20.8%
amĂŠrica 18.9%
cruz azul 10.4%
pumas 9.9%
59% of fans agree that the best place for a brand to sponsor your team is the front of the jersey 74% of the respondent fans remembered the sponsor in front of the jersey of their favorite team biMbo is the Most remembered brand by football fans With 37% of global remembrance of every 4 football games that are followed, 2 are through open television 3% of fans follow their favorite team in their matches through Mobile phones/ social networks
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GADGETS
EFFICIENCY WITH INTELLIGENCE BMW continues to develop its intelligent hybrid systems consistently and enlarges model range adding a standard car, in which the combination of combustion engine and electric motor and not only results in greater efficiency but also leads to greater driving pleasure, which is a typical feature of all products of the brand: The BMW Active Hybrid 5
A PERFECT DEVICE The last legacy of Steve Jobs, is this iPhone 4S, without a doubt the most impressive to date. It comes loaded with new features such as Apple dual-core A5 chip that offers an ultra fast performance and some amazing graphics, a new camera with advanced optics, video recording Full HD 1080p resolution, and Siri, an intelligent assistant that helps you perform tasks by only asking.
A NEW ERA IN ENTERTAINMENT Smart viera television sets offer the best image in 2D and 3d. the internet TV connection also opens the door to the best videos on the internet, movies social networks , games, applications, news‌. A new dimension in the way you use your TV set.
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