As each year goes by, the domestic market for the four major North American professional sports leagues becomes more and more saturated. The saturation of the market limits the domestic growth opportunities for these leagues. Additionally, the few domestic growth opportunities that are out there are so limited and unpredictable in their benefits that they are likely not worth their opportunity cost. In light of the limited growth opportunities on the home front, North American sports leagues have began to focus their opportunities on the relatively untouched international markets. Over the past few decades the MLB, NBA, NFL, and NHL have all made efforts, with varying degrees of magnitude and success, to expand their brand internationally. …show more content…
The sustained success of international players such as Hakeem Olajuwon, Dirk Nowitzki, Yao Ming, Tony Parker and the Gasol brothers have certainly been leveraged overseas. The impact these foreign player’s success has manifested itself on NBA rosters. At the start of the current NBA season there were 100 foreign-born players on NBA rosters. (Helin, 2015) Clearly these foreign stars have made an impact since, just 15 years ago, there had been only 45 international players and 25 years ago there had been only 21. (“Record 101”, 2014) The success of foreign players has not only resulted in more foreign players, it has also resulted in greater ratings for the league overseas. In fact, an estimated 200 millions Chinese viewers tuned into an otherwise unimportant Milwaukee Bucks-Houston Rockets game on November 10, 2007 just because their fellow countrymen Yi Jianlin and Yao Ming were facing-off. (Yue, …show more content…
As these leagues cannot afford to remain stagnant in growth, particularly with their increasing costs and salaries, they have expanded their pursuit of growth opportunities internationally over the past few decades. While all 4 leagues have experienced some success in their international pursuits, the NBA is the league that has had the most success and is at the same time the league best suited for further success in the future. The NBA’s success, while certainly helped by the work of long-term commissioner David Stern, comes largely due to the sports built-in-advantages. More specifically, these advantages are the amount of foreign-born players who play in the NBA and the visibility and marketability of the league’s
First, cultural difference will affect whether a new market’s creation is success or not. For instance, by the effect of the saturated North American market, National Basketball Association (NBA) begun to expand its new market to Asia. This broad strategy assisted NBA making a brilliant achievement in popularizing its product in China: “For China, the NBA spent two decades building courts, teaching youth the game, and hosting promotions. Now over 300 million people in China play basketball. The league notes that 89% of Chinese aged 15 to 54 are aware of the NBA brand and NBA.com/China averages 2 million unique users a month. Games are shown in China on 51 outlets, drawing 1.6 billion viewers in 2008-2009 (34% more than in 2006-2007). China is now the NBA’s biggest foreign market for its
Professional sports are often perceived as one of the last true bastions of capitalism, where player salaries are constrained only by what the market will bear. Since the 1990’s, however, [professional] sports leagues have grown increasingly concerned over the increase in player salaries, not only in terms of the absolute cost required to field a competitive team, but also in terms of parity, or the extent to which teams in a league are fairly evenly matched (Cushman 1).
Baseball is considered America's pastime as it is steeped in history and prestige. However, due in part to the emergence of alternative sporting events such as skateboarding, snowboarding and competitive biking, the profits previously garnered within the industry are not growing as fast as they once where. In fact, in many instances, individual player salaries are outpacing the growth of ticket and television revenue. Table 1 within the appendix was constructed by Michael J. Haupert, a professor at the University of Wisconsin. The table depicts TV revenue (excluding local markets), average ticket price, and average player salary from 1964 to 2002. For your convenience the pertinent information is highlighted in yellow. As depicted from the chart, total television revenue from 1964 to 2002 increased nearly 1000% on an inflation adjusted basis. During this same period however, player salaries have increase by over 2500%. Likewise, average ticket prices have not increased by this magnitude either (Haupert, 2010). Futhermore, according to the Forbes, every team in baseball with the exception of one (The Florida Marlins) spent at least 80% of their revenue on baseball operations last year. These operations include player salaries as well. The percentages vary and ranged from the Detroit Tigers who spent 116% of their revenue (operated at a loss), to the Marlins who spent 68%. Seventeen teams spent 90% or more on baseball operating expenses (Pasnanski, 2010). To many individuals,
WNBA attendance and NBA attendance vary significantly. Is this variation a result of women’s professional sports not having a large fan base, differing marketing strategies used by the WNBA and the NBA, less attention to women’s professional sports by the media and sports broadcasting networks, or a combination of all three of these issues? Through the use of statistical data, one can determine that attendance levels are favorable to the NBA as opposed to the WNBA. In an attempt to answer this question, I examine marketing strategies such as digital marketing used by both the NBA and WNBA and the differences in who their target audience is when applying their marketing strategies. Additionally, I compare and contrast data related to the amount of time each of these organizations receives on popular sports broadcasting networks. In an interview with Chris Forrest who previously held a marketing position for the Lakers and the Sparks, we examine the marketing differences and their effects on turnout between the two teams.
The level of talent and competition is a huge difference between basketball in America and basketball overseas. America’s best league, the NBA, has the best talent in the entire world and it is not even close. Just take a look at what happened this past summer in the Olympics. It is hard to even create an argument of where the better talent is, America or overseas because every time there is an international tournament the United States wins, with a few exceptions. The other countries were not even close to competing with the United States. The players that are on those countries teams participate in both NBA and European leagues but, more European than NBA. I know this date goes way back, because the NBA has more superstars and better overall
The fans of the NBA form a large community in a variety of countries. Every day, thousands of people fill stadiums, bars, and their mother’s couches to cheer on their team for the big game. This community of fans plays a bigger role in NBA than most people would think. Without people buying tickets and merchandise, the teams could not generate enough revenue, and therefore not pay their players and staff. Fans are what
It’s really the behind the scenes acts of the players and owners that dictate what we watch on television. This behind the scenes activity is the act of collective bargaining, which has existed since the begging. Collective bargaining in sports is the process by which owners in the professional sports leagues negotiate with the players in their league on every issue that affects the sport. In this paper we are going to focus on the NBA (NATIONAL Basketball Association)
The second factor was the development of competing leagues. “Competing leagues such as the American Football League, the American Baseball Association, the World Hockey Association, and the United States Football League offered an alternative to athletes (Masteralexis, 246).” These leagues offered higher salaries to induce players to move from their original teams. When players left a team to for more money, it also increased the salaries of players who stayed on the team. Agents played a crucial role in determining what was best for athletes, and which league they should choose.
As fantasy baseball team owners navigate their way through the arduous dog days of summer, now is the time to tweak MLB lineups to make a run for the league playoffs. If your team has a few pitching gaps, low scoring hurlers that might make the difference between post season appearance and not, there are still some players with low ownership percentages available. Some haven’t met expectations in 2017, but there are prospects on the horizon who may have slipped off the waiver wire radar.
The National Basketball Association (NBA) was founded on June 6, 1949 in New York City and has exploded today to become one of the most popular professional sports leagues in the world, next to the National Football League(NFL). There are a total of 30 teams in the NBA, each worth about $1.25 billion, making the whole league worth about $37.5 billion. The mastermind behind the NBA’s huge profits are the white collared team owners who watch over the respected team franchises for years. In the past, NBA team owners have been caught up in scandals that have created stereotypes and misconseptions among fans that paint the owners as money hungry individuals who give no respect for their blue collared players in the league. The NBA cutting ties
According to Thomas Wilson, “sociology of sport findings present [that]… the higher one’s social class, the more likely one is to be involved in sports. Studies have repeatedly shown that indicators of social class are positive predictors of sport involvement in the general” (2002). However, not much research has been done to look at the relationship between cultural and economic capital provided to a fledging athlete by their hometown and the pattern of success it will present to them in their later life. For my project, I will focus on Major League Baseball due to its accessibility of raw, open source data online. The hypothesis is that socio-economic inequality not only presents unequal opportunities for economic improvement for
The purpose of this research study is to identify the reasons why the National Hockey League suffers from low television ratings while the National Football League thrives in television ratings. The NHL has a very avid fan base and attendance in most markets for the sport is consistently high. However, there seems to be a lack of ability to translate that success to the television viewers. The National Football League has been able to successfully bring its product to all fans through the television and ratings for the NFL are incredible. By identifying the reasons that the NFL has been able to translate its product through television and why the NHL has struggled, the field of Sport Management will have a better understanding of the
The four major professional sports in America, are the only outlet for sports entertainment and this greatly reduces the supply, which increases the price the league's can charge for their product. The demand for this entertainment is also very high, as millions of Americans watch sports daily. This low supply, high demand economy of professional sports has caused very high prices and income for the league. This great amount of revenue also affects the players economically. The demand of professional athlete’s talents are very high because of the amount of money they make, and the supply of this talent is extremely low and rare, causing for extreme inflation of contracts. Athletic talents are worth millions of dollars, and there are very few people who can provide this
Finally, by comparing Israeli to English basketball we can point out some intriguing differences that help us understand why it seems that Israeli has shown much more resistance. We can comprehend with this analysis that people in a society like to live with and be represented by people that they can associate themselves with. For them, the less different, the better. In fact, by comparison, Americanization in English basketball is much easier than in Israeli since Americans and English at least “share a language [and] a religious background” (Shor and Galily
Due to introduced the Asian slot in J. League, the number of the Asian player in J. League has been biggest part of foreign players, then currently The J. League began initiatives to draw players from the ASEAN region in 2012 which affect its TV exposure, sharing its knowhow and organizing football activities and other events in the region. A crucial point is that the J. League has tied up with the Ministry of the Economy and Industry’s Cool Japan strategy to promote sport as a global Japanese industry and present the J. League as a Japanese brand. The objective is to create more business opportunities and to develop economy. In order to push forward new business, the Asian strategy room was established in J. League in 2012 which aim is to maximise Asian resources for the future. However, in order to expand the market in Asia, there is obstacle that J. League confronts. There has seen a dramatic growth in the globalization of football clubs. The big European football clubs or leagues have entered new markets in Asia in order to maximise their revenue streams by selling TV rights abroad and merchandising This means that J. League needs to challenge the mature European market in Asia. (Chadwick, 2004). As premier League illustrate that broad casting revenue is main part of the turnover, J. League needs to increase the TV revenue in Asian countries. Revenue obtained from the sale of these rights (around 2.5billion