What the NHL is Doing Wrong
by: Mike Marino | Special To NY Sports Day | Sunday, June 8, 2008
NEW YORK - While watching Game 5 of the Stanley Cup Finals this year, you would have never realized that just recently, the NHL went through a devastating strike that appalled the league, its viewers, and its players. While looking at the league’s financial statements, its expenses have decreased, revenues increased, and we’re seeing numbers the league would have never dreamed of just a year or two ago. Attendance is up, merchandise and sponsorship are up, and total revenue and value have increased as well.
The league has two of its premier teams in the Stanley Cup, nationally televised during primetime, bringing in solid ratings. With everything I’ve said thus far, you must be wondering how the title correlates to this article at all. Forget everything I just said. Forget that the NHL is having one of its best seasons in recent memory, and that the numbers couldn’t possible be any better. Forget it.
Here is what the NHL is doing wrong, or perhaps it’s not necessarily what they’re doing wrong, but what they’re not doing. In a world where a consumer can have anything in the spur of a moment, where trends come and go almost as quickly as customers at a fast-food establishment, successful business compete, and stay profitable through being a step ahead of the competition. Instead of admiring over the revenues a company may have in quarter one, a successful company will be looking at how those revenues will change in quarter two, and what to do to create more profit in the future.
This is what the NHL is doing wrong. When looking at the bigger picture, the NHL is doing a fantastic job recovering from a strike and having its most successful season of the decade. However, the success will not continue unless the NHL looks past its current success to its future endeavors. These endeavors, and possible problematic facets include sponsorship.
The league’s current marketing strategy (and its most successful in this era) revolves around its diehard fans. In the past, the league has been imprecise and erratic in its marketing plans, advertising to every other demographic than the one they should have been. However, they finally have a marketing team that is handling things correctly; showcasing young stars, appealing to the diehard fans, and committing attention to its interactive online applications, along with the NHL Network.
However, while these facets of the organization are running smoothly, they are missing out on one very large aspect of a successful sports organization; sponsorship. Now the NHL hasn’t just completely ignored sponsorship, but they are not marketing their current sponsorship opportunities as they should be.
The new marketing plan of the NHL appealing to diehard fans, showcases cities and teams such as Detroit, Pittsburgh, New York, and Chicago; original, classic, blue-collar teams. The NHL needs to be marketing their sponsorship proposals to companies preferably located in these cities, but more so to companies that share the same values as the diehard fans the NHL is marketing to. Now this may be the various companies’ fault for not buying into the NHL sponsorships, but in my opinion it is their lack of knowledge of the benefits of the new NHL sponsorships.
The NHL needs to be more aggressive in marketing their sponsorships, signing long-term deals while things are running smoothly, attracting blue-collar companies in hard-working cities that appeal to the diehard fans the NHL is pursuing,
It is not only the fact that the brand loyalty runs deep with the fans the NHL is marketing to, these key demographics prove that an NHL sponsorship is worth even more:
• 78% of NHL.com's visitors are male. • 79% are in the 18-44 age bracket. • 51% are in the 18-34 Years old. • 81% earn more than $35,000 per year, with 60% earn more than $50,000 per year
• 81% have attended college. • 91% have shopped online in the past six months.
Combining these staggering statistics, along with the current marketing plan of the NHL, and while the sales and sponsorship team would have never thought it possible, should be selling their current sponsorships aggressively and not giving in or compromising on any offer they receive. They should be looking at big numbers in their sponsorship department, and should have a stack of offers waiting for them.
However, I believe it is a lack of knowledge throughout the current industry as to why more companies are not becoming involved with the NHL. If you are a company looking to find a sponsorship deal in a major sports league, at what should be a bargain price (although not for long!) look no further than the NHL. But if the NHL plans to continue their success, they are already looking towards the future and thinking about future sponsorship. The numbers across the board have increased over this past season, and the NHL will look for more of the same in what will be a fantastic off-season for the re-growth of the league in its recovery process.
An article will follow with more in-depth statistics on the NHL’s current marketing plan, current sponsorship deals, and what is to come in the future for the league.
You can reach Mike Marino with comments, suggestions, or questions at Mmarino@nyu,edu or visit his blog at www.mmarino.wordpress.com.
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