Monday, November 5, 2007

NFL overseas

In week 8 of the 2007-08 NFL season the league attempted something that they had never done before. The NFL held a regular season game overseas at Wembley Stadium in London, England. The NFL wants to bring American football to several different foreign countries. This is a risky campaign but it is also genius as far as PR and marketing are concerned. The NFL wants to target foreign publics to increase awareness globally. Oh yeah, and to make more money from a booming sports industry.

R: The NFL had been backing an NFL Europe league from 1991-2007. They ceased operations on June 29, 2007 saying that it was a smart business move for the league, which it was. The NFL was losing nearly $30 million a year. The NFL decided to revamp their international strategy by holding regular season games in foreign countries. The league established a fan base in Europe with the NFL Europe league, but now they want to bring the American players to foreign fans. This would require some research on the NFL's part in order to ensure that this game in London would be a money making venture, but also to gain positive feedback from fans. Wembley Stadium holds 90,000 people while the largest NFL stadium holds 80,000. Over 81,000 people attended the Week 8 matchup between the New York Giants and the Miami Dolphins in London. Ticket sales+concessions+merchandise= a boat load of money, but the NFL had to antipate that there would be potential problems by holding games overseas. Although it is a good way to globalize American football, generate money, and increase the NFL's popularity it can cause some issues within the league. For example, Miami Dolphin season ticket holders aren't thrilled because the London game counted as one of Miami's 8 home games. Eventhough Miami and New York are both on Bye weeks in week 9 it took a toll on the players and coaches.

P: The NFL decided to expand its horizons in late June, early July of this year so they didn't have a whole lot of time to plan. The league planned this event in London very carfully for months and they pulled it off quite nicely. The NFL made a smart move by targeting new publics; new foreign publics. The N.F.L. brand itself skyrocketed after last weeks game in London. Outside of the stadium there was a 26 foot robot of Miami Dolphins defensive end Jason Taylor, so I'm sure that took some time to put together. Also, there was 30 minutes of warm up acts before the game even started with fireworks, cheerleaders, and all of that good American fun. According to the New York Times the NFL is far from subtle and this event in London proved that if the Super Bowl half time show with Janet Jackson didn't do that already. The Times article breaks down the game itself and also discusses the positive impact the NFL made in Europe. It is clear that there was a lot of careful planning put in to putting on a great show in London.

C: The NFL communicated on a global level by holding a regular season game overseas. The league communicated with NFL organizations and American fans as well as European fans and representatives from Wembley Stadium. It was important for the NFL to communicate clearly the rules of the game to the European fans. A you tube video shows the 26 foot robot of Jason Taylor and on a 30 foot big screen television highlights of the real Jason Taylor. This gave fans someone to root for and allowed them to become familiar with NFL players. The man in the video explains the NFL rules while the highlights are being played. This was a smart tactic used by the NFL to educate European fans on American football rules.

E: The overall response from the NFL game in London has been mainly positive although there are a few areas to improve on. Giants head coach Tom Coughlin said that it was difficult for his players to adjust to being in London and fautigue was an issue. He also said that in the future better transportation plans have to be made on the NFL's part. An article from Guardian Unlimited discusses how fans were upset because tickets were being purchased and then sold on Ebay for more than face value. Also, fans were told a certain price range before buying tickets but once they bought them the price had risen. People still bought the tickets either way but they were frustrated that the NFL raised ticket prices so soon before the game. On the other hand, there was a great response from fans and others from overseas. The mayor of London, Ken Livingstone, is quoted as saying "What this clearly shows is that there is a huge potential in Britain and wider in Europe for American football to have a huge impact. We want to see the NFL coming back to London again and again." As part of the evaluation phase the NFL had 40 volunteers handing out Q&A's to fans to get their response to the game. They asked what the fans liked and what they didn't like as well as if they understood the game. An ESPN article explains the Q&A and also has quotes from Giants head coach Tom Coughlin, quarterback Eli Manning, and NFL VP- international Mark Waller. The NFL has even discussed having a Super Bowl overseas in the future, but I feel as though many people will have a problem with that. Super Bowl Sunday has become a national holiday in America surrounded by advertisement dollars, tv deals, pizza and chicken wings. There is no way that they can take the Super Bowl out of America. I think the NFL did a great job executing their PR plan and feel that games in foreign countries is a great idea. I also think that they should be careful when trying to expand, and not to move too quickly. What do you think? Good or bad move for the NFL?

5 comments:

JoJo said...

I agree with John that this was a very smart PR move for the NFL. With the concept of globalization and world markets, it is almost necessary to take a successful product to a trans-national level. During the NFL's research, I am sure that they saw how passionate Europeans are about other sports, most highlighted being soccer (or as they call it, football). In the English Premier League, games are sold out every season and players are almost seen as "heroes". I think the NFL saw the potential and wanted to see if this same attitude could be applied to American football. Another part of the NFL's research most likely involved Major League Baseball's adventure in China. The game and players were very well received. (It also doesn't help that many popular players are from China).

I don't think it would be a smart decision to play a SuperBowl game in another country, but a regular season game is definitely worth it. Great exposure and it doesn't seem that the NFL is losing anything from it, but then again, we don't know any of the logistics of the deal. (How much it cost to use the stadium, how much the English government received, etc.)

Mark Van Dyke said...

Thanks for an interesting case, John. I read about this game in the New York Times but didn't give it much thought. Your analysis raises some points worth considering.

First, I see your point about this move by the NFL to play abroad being part of globalization in sports. People from around the world are attracted to U.S. culture, including sports. This is a smart move to promote a broader fan base in Europe.

Second, I can see how this is a strategic move to expand the brand of the NFL. By playing a game in Europe, the NFL has a chance to not only sell tickets but also sell all sorts of NFL-branded products (clothing, sporting goods, etc.). And what about television audiences abroad? I can see how this could create more viewers.

Finally, I was wondering about the issue of NFL game rules ... rules that Brits would have just as much trouble understanding as we would have trouble figuring out cricket rules. The robot idea was creative. But the robot was outside the stadium, so how does that help fans inside the stadium watching the game. I suspect they must have also distributed rules in the game program or some similar publication ... that they could sell and make even more money!

Thanks, again, John. Good case.

Mark

Kimmie said...

I think that the idea of holding the football game overseas was a great Public Relations move for the NFL. People across the world love this all American sport and what better way to globalize and familiarize other countries with the sport than to bring it to them. Not only is this an immediate increase in profit but over time, if other countries take an interest, could be a whole new set of revenues for the league. I would advise however, that the NFL not let this overnight success get to their heads and slow down. If the NFL does want to continue playing games overseas they will need to carefully execute a proper business plan and ease their way into it. I also advise that the NFL continues to hold the Superbowl on this side of the pond. That's the way it's been for years and Superbowl Sunday has practically become a national holiday in America!

Anonymous said...

The key to this case is planning. With careful planning the NFL could create a huge business overseas. The NFL should build on the success of regular season games in foreign countries. I agree that this is a great PR and marketing tactic. If their success overseas continues there will be a lot of money to make.

Heather Martyn said...

Great in depth post John! I think it is a great idea to bring the NFL around the world, but at the same point in time I am not sure it will be recieved very well by all Americans. Many fans think of football as America's pasttime along with baseball. Also there are negative feelings of America in some countries so I wonder if all will go well on both sides. Also I think it is bad to anger season ticket holders, as they pay huge amounts of money for the seats. I know I would be pretty angry if I missed a Steelers game that I had tickets to because it was going to be played in Germany or somewhere over seas. I think the event itself was great, but I wonder if Football can compete with European Football (Soccer)or Rugby even. Time will tell...