On day two of the MIT Sloan Sports Analytics Conference, my panel selections focused on the future of sports, and how owners, executives and even the media can best continue to monetize what is already a ridiculously lucrative industry, while not ever losing sight of the common goal: to win a championship. But given how small the margin of error is to reach the apex of professional sports, and how rare it is to even get all puzzle pieces in place to position your team for the opportunity, I heard sports executives express that they are sometimes looking to stay relevant, perhaps suggesting that we moving to a point where fans perceive sports to be meshing more with pure entertainment than rooting for the good-old hometown team to bring home a title.
MIT Sloan Sports Analytics Conference, Day 2: A Numbers Conference Announces Sports Have Become Entertainment
On day two of the Sloan Sports Analytics Conference, we learned more about non-numbers based sports concepts that owners, executives and even the media are looking to hone in on as a method of continuing to monetize this already lucrative industry.
It’s an interesting point to ponder, and was discussed in a pair of today’s panels, including “New Owners: Challenge and Opportunities.” This panel was comprised of Boston Celtics CEO and co-owner Wyc Grousbeck, San Diego Padres owner Jeff Moorad, Golden State Warriors owner Joe Lacob, Toronto Maple Leafs president and general manager Brian Burke, and ESPN’s Bill Simmons.
In PC-speak, you play to win the game. We all know that, and Herm Edwards confirmed that when he was head coach of the New York Jets. But couldn’t you make the argument that many fans are watching and following sports simply to be entertained, and that in general trumps the true urge to win?
Take, for example, the recent ‘Melo drama. Sure it’s beautiful to see the New York Knicks relevant again, paired with a nice big man and a heady point guard, Carmelo was a huge get, and Madison Square Garden is now home to a real playoff team. Additionally, the league benefits from the country’s largest market hosting a competitive team with a rabid fan base. This is all great, but it’s likely that the general audience was far more intrigued by the ruminations and handful of potential deals that were reported to move Anthony during the weeks leading up to the actual execution of the trade. In one month, that interest has predominately dissipated, and we are on to another story that’s growing, until that peaks, and so on and so forth.
Moorad, trapped in a small market with a small budget that makes it difficult for him to compete each and every season, was totally cool with saying that he just wants to make sure his team is relevant. Yes, winning is what drives the modus operandi, but if you just can’t realistically do that every season, then there has to be a way to positively stay relevant, whether that be on a local or national level. In general, that could be what makes sports so popular - it drives conversation and gives us something to discuss amongst each other.
HDTV vs. The Live Event
It’s no secret that the advent of HD television and increased access to your favorite players and teams via digital platforms has put a dent in the glamour of overpaying for transportation, parking, food, drinks, and of course tickets to take in a live event. TV revenue is up, way up, but that is by no means redirecting the focus on how to be most profitable.
The headlining panel to close out the conference, “The Future of the Game Day Experience,” with Mark Cuban, Kraft Group president Jonathan Kraft, Dallas Cowboys COO Stephen Jones, and the aforementioned Simmons, shared some high-level ideas on how teams planned to curb this growing problems they’re currently facing.
“Yes, media revenue is driving the bus right now and we are making more money in that,” said Boston Celtics CEO and co-owner Wyc Grousbeck outside the panel. “But it’s helping us to continue to invest in the live event.” Brian Burke added that despite the growing interest in all-things digital, it’s still secondary to the live fan experience, and putting the best and most competitive product on the ice. He was very blunt about this and left no gray area, suggesting he wasn’t even remotely interested in all that fluff stuff.
The turning point in this conversation was when Cuban took control. The creator of HDNet and near-aficionado of all things digital, Cuban clearly articulated that he possessed a more than thorough understanding of not only the capabilities in the latest technology available to enhance fan experience, but also the current barriers that dissuade him from trying certain digital enhancements at this time.
Perplexed, Jonathan Kraft chimed in to discuss a social media/digital media push the Patriots trialed this season for home games. On paper it sounded great, allowing fans to leverage their voice and do all that fun tweeting and “Liking” stuff as a way to feel more part of the game. But it didn’t work. The bandwidth to stream ample amounts of video was simply unrealistic, and Kraft appeared misinformed as to just how that could be.
Cuban, I am confident, will always be at the cutting edge of giving Mavericks fans the best form of on-court and in-arena entertainment when they step into the American Airlines Arena. He’s a “get it” guy, with plans to print augmented reality symbols on playoff tickets and launching smart phone applications that he knows will work based on his own empirical knowledge. His eyes light up at the untapped potential of the fan experience. Other franchises, it appears, continue to play catch-up.
Regardless, the over-arching sentiment among all is that an antiquated stadium is more detrimental to a franchise then ever before. Cuban added that he doesn’t feel like he’s competing with other teams and the HDTV, he’s competing with the local bowling center, the move theatre, etc. when it comes to reaching the Dallas resident deciding how to spend any discretionary income he or she has. If ownership doesn’t have the commitment to serve as the premier venue in the area, then what you see when you pull up to the arena could look disingenuous, and you’ve lost that fan, especially if what’s happening on the field is wallowing in mediocrity.
I was proud to chart out a Sloan Sports Analytics Conference itinerary that didn’t allow me to get bogged down with numbers and algorithms that may never resonate with the common fan. There’s plenty of new information to go around here for just the curious dude looking to discover what is new and next in the world of sports. This is especially true of the college student looking to break into a sports-focused career, but I’ll get to that more on Monday.
In short - go here, or at least stream the event in 2012. You’d be amazed at just how chic dorks have become.
