Sports Management Education and FC Bayern

Vince Gennaro says that in the Columbia masters in sports management program they have “a very productive partnership” with FC Bayern Munich, where they’re able to take many of the broader lessons of the European sport-club model into the classroom and help the students really understand and appreciate all of the nuances of a global sports enterprise.

One of the things that Vince found interesting is in conversations with the executive board members, Rudolf Vidal, and others there’s been “a focus on bringing authenticity to the United States.” So it’s not just that they wanted to open up an office and do everything “the American way.” While there’s a level of adaptation and assimilation, Vince senses that FC Bayern Munich feels that it’s very important to have an authentic relationship back to the mothership, if you will, back in Munich.

Benno Ruwe totally agrees. He thinks that when you are going to a foreign market or when you want to engage people you are engaging people when you are telling your own story, when you are talking about your own heritage and not trying to be like any other franchise, or club, or any other brand in the United States, or just trying to replicate or duplicate whatever others are doing.

FC Bayern has got a unique story to tell. And it is a story that Ruwe feels is relevant to a lot of people in the United States and anywhere around the globe. But in order to get people to listen to you, or get them interested in your brand or what you’re doing, you have to talk to them in a language or in those little nuances so that they really understand what it is all about.

FC Bayern was founded in 1900, primarily as a football club and as a soccer club. But over time, they added a basketball team, they added a chess team, and they had a table tennis team. They had at the time a gymnastics team that they don’t have anymore, unfortunately. They have a handball team. So they’ve got a lot of different sport options that are beneficial to the community.

The nonprofit organization of the club was providing those sports to the community in and around Munich and really being active there. And soccer and football were always and are still the biggest parts of it, and they are the most important department that is being offered at FC Bayern Munich.

Ruew points out that Bayern’s story is also different from most United States franchises, which focus on one sport. A lot of players that won the World Cup in 2014 for Germany went through the Youth Academy–seven in fact–and that curriculum, that philosophy, and how they are teaching the kids at the headquarters in Germany how to play football is still present.

“This is a unique story that we want to bring to the United States. And we are trying to do it in an authentic way but still with a little adaptation to the local market. And this is what we are doing here in the United States,” explains Ruwe, “but this is also something that we are going to do in Shanghai and China, the other focus market.”

Gennaro says that when they first opened the Bayern Munich office in the US in 2014 they realized that the American market, or the American consumer, is engaging on digital media in a different way than expected and are used to in Germany and Europe. Twitter is a much bigger communication tool in the United States than it is in Germany. When they wanted to reach out to fans and fan groups in the United States, they realized that it’s not possible just to talk to them on Facebook or via a newsletter. That is not really where the engagement and the conversation are. It is really on Twitter, or nowadays, on Snapchat, and all those new social-media platforms that are popping up.

And so FC Bayern actually cut off their Facebook page from the global page and are now running their own autonomous Facebook page from the U.S. They’ve got a media department in the U.S. that is taking care of the American social media. And they also set up their own U.S. Twitter account for FC Bayern Munich and are now able to talk to fans all across the United States with this local voice in their own time zones, and picking up trends that are on social media–not only from the sports management side but also from pop culture–and really trying to engage in a conversation that is even broader than just FC Bayern Munich and sports but always referring back to FC Bayern Munich or linking FC Bayern Munich memes and themes to those trending topics.

The United States consumers expect a much more engaged approach on digital media than they do in Germany. In Germany or in Europe, it’s more like FC Bayern is reporting about FC Bayern Munich. And in the U.S., they are talking with their fans about FC Bayern Munich, and responding to tweets, and responding to Facebook posts, and really trying to get a very engaged community in the U.S. And, Gennaro states, that really is “the biggest difference when we are talking about Germany and the United States when it comes to our digital platforms.”

In the U.S., Bayern Munich still growing, and it’s getting bigger and bigger and more challenging to keep up with the conversations. But they have got a very capable team that is taking care of all of this. And it’s fun to see the interaction and the communication between the team and the fans out there. And they appreciate it.

They’ve even adapted their website in the U.S. and the app to be a U.S.-specific site. So it’s not simply the English translation of the German site. It’s specifically targeted at the U.S. market. And that’s another element of the customization that’s been acknowledged, retaining that authenticity.

Ruwe adds, “We saw a lot of even German teams picking up at this style of communication on Twitter, on social media, and a lot of fans really love it and are now following. Even if they’re from Germany, they’re more following our U.S. Twitter account than they are following the German ones, which makes us proud, obviously. But it also shows that opening the office was not only a one-way street, so it’s not only that FC Bayern is bringing something to the U.S. market, but it’s also bringing something back to the organization in Germany.” Ruwe continued to state that they are learning from the sports landscape here in the United States and from the sports audience in the United States and taking that back with us to the headquarters and discussing if it is adapted for the global audience as well.

And it’s necessary to speak in a U.S. voice on all your platforms, not only on Facebook and Twitter but also on the website, and use the platform website also to introduce FC Bayern to a not-so-knowledgeable audience. It should be kept that way. So there is also integrated information about the basketball team on it, on the women’s team, and created stories about the fan clubs in the United States.

There is actually a very engaged fanclub base in the United States, which is in constant exchange with FC Bayern. And they wanted to give them a platform where they were telling their stories, when they were founded, where they meet each other on the weekend to watch FC Bayern games. FC buying wasn’t always broadcast on major TV stations like it is right now on Fox Sports. It used to be on Gold TV or hidden on other smaller networks, and people really had to search for it, or even gather in bars and watch it.

So an entire culture really got together. And they wanted to give the fans a platform because they were promoting the FC Bayern brand long before they themselves were there. That is really what FC Bayern is doing with the website primarily nowadays. It was necessary to set up a U.S. website because the German content was not always relevant to their global audience, so this experiment in global branding and online sports management education has served them very well.

Sports Management Education Can Teach Investing in Arenas

Innovation in global sports facilities happens in a number of ways. According to online sports management education, one of the ways that I think is really interesting is this concept of public-private partnerships. The cost of building sports facilities is enormous these days. We’re seeing arenas pushed between $500, $700, and even $800 million to build a first-class arena, and football stadiums in the NFL, over a billion and a half dollars. A more recent one in Las Vegas has been quoted as being $1.4 million.

The communities are participating. You might say sports and their respective sports management has got so much money, why do communities need to invest? The answer is that they are community assets and those community assets lend themselves to being public private partnerships. They’re not just used for sports, they’re used for meeting places. They’re almost like their 24-hour convention centers and this is a way that gets both the community, the developers, and the teams invested in an asset, which is transformative.

Sports Management Education Examines Social Media Strategies

There are a lot of different strategies that you see sports organizations use to develop relationships with fans through social media. One of those is a strategy just to elicit feedback and ask opinions. If fans feel that they want to know what I think or want to know my opinion, they’ll feel more valued. And then they’ll have a stronger tie to the organization as a result.

Online Sports Management Education Looks at Ways to Build Engagement Through Social Media

We see sometimes teams will post things where they want genuine feedback on something specific about the team, about the event experience. But then you’ll also see some just fun social media posts: “Oh, hey, who’s your favorite player and why?” That’s a simple example, but things where they’re just trying to get feedback and get that interaction with the fans. That’s one method that we would see this.

Social Media Contests in Global Sports Marketing

Another is having social media contests or inviting fans to submit content, and then the organization featuring that content on their own account.

How Sports Management Works With Social Media

There’s a gymnastics podcast that I listen to. One of the ways that they get greater engagement from their listeners is to have a contest. And they’ll say, submit a picture of yourself dressed up as your favorite gymnast of all time. And then they’ll post those on their own social media. It just helps to develop a stronger relationship and a closer relationship between the organization and the fans.

Sports Management Education Warns of Immersive Technology

The next stage of the global sports ecosystem is immersive technology. And it goes in two different directions. One, you can be immersed in a sporting event in your home through VR. Though in regard to sports management, I don’t think you’re monetizing as much value of the fan through VR because they aren’t in your building.

However, immersive sports production and theatrical production in sports facilities and theaters that is 360 degrees are coming to both Europe and to the United States. You only have to look at the Las Vegas sphere and see what’s happening there to get a glimpse of what’s happening in the ecosystem in sports and in a live production in the near future. Online sports management education explains the benefits of this innovative combination.

Sports Management Education: Executing the Brand Vision

For any given league, team, or athlete, these individuals will often utilize certain sponsorships to speak towards their brand. For example, if a sports team is going to represent their brand in accordance to values that are commonly used in Texas, they will want to strategically represent certain Texas values. Even if they’re being offered a massive amount of money from a certain sponsor, they might not always make the deal because of what it would do to their brands.

Another example is, if they’re being offered a sponsorship partnership with New York pizza, it’s likely they wouldn’t make that partnership even if it meant that they would get a massive amount of revenue from it. It’s because of the fact that they know that these sponsors speak toward their own brand. Teams, leagues, and athletes are likely to team up and/or sponsor with certain brands that can represent what their own brand speaks of.

With any of these sponsorship opportunities and sponsorship partners, it’s sometime very difficult to configure what the return on investment would be. If Verizon, for example, puts up a given sponsorship opportunity with a particular global sports team, it’s sometimes difficult for them to determine if they’re getting a return on investment from what they paid. For this, a lot of the times, individuals who are in charge of deciding if sponsorships are worth it, will work with the sports management, and adhere to the value of being S-M-A-R-T.

This acronym is used when evaluating your sponsorship and seeing if there is a return on investment:

S – You want to be specific.

M – Make sure it’s measurable.

A – Make sure your goals are achievable.

R – Make sure it’s results-oriented.

T – Make sure it’s time-bound in nature.

Be as specific as possible in terms of what we have placed in our partnership. We want to know exactly what we are measuring. For example, if we’re looking at the months June to August, we may ask, “How have attitudes towards our organization changed?” We are results-oriented, so we want to make sure that we know if attitudes have changed from positive to extremely positive from June to July.

We’re also dealing with the whole idea of being time bound. Being S-M-A-R-T (specific, measurable, achievable, results-oriented, and time bound) is a great way for sponsors to kind of evaluate if their partnership is working out or not. Online sports management education says certain sponsors may be more valuable depending upon where they are placed.

If we were talking about hockey, a sponsorship that is within center ice is going to be that much more valuable because individuals from the sponsorship side know that the consumers who are watching this sporting event are seeing this more often. If it’s center ice, the camera may be going back and forth, but one thing that’s constant is that center ice logo. From the consumer perspective, individuals are likely to see that center ice logo that much more. Whereas, some type of signage that may be over in the corner may not be seen as much.

Online Sports Management Education for the Barclays Center

In sponsorship, an activation is what really brings that sponsorship to life. The sponsoring company and sports organization have come to an agreement. They’ve signed a contract, but then beyond that contract, there are these activities that we call activations. And that’s where the sports property and the sponsor will work together. They say, ‘OK, what can we do creatively to make our consumers aware that this sponsorship exists but also potentially to give our fans and our consumers a sample of the sponsor’s product or the sponsor’s service?

Some examples of that would be signage featuring a Coca-Cola logo that goes all around the entire stadium. Other examples might include names that come up on a board or ‘this is the Halftime show brought to you by AT&T.’ Some of the more intricate activations include Taco Bell’s “Steal a Base, Steal a Taco” promotion or when Lucas Oil Stadium had an in-arena store. Those are all examples of activations, and now that you understand that, take a look around the Barclays center and ask, ‘where are there opportunities to activate sponsorships?’ So if you had a sponsor, what would you do in this particular arena to activate it?

New Sports Management Promotional Opportunities

What makes Barclays Center a little bit more unique than any other arena here in the tri-state area is being in literally the center of Brooklyn. Brooklyn did not have a world-class global sports venue of that spectrum or of that size until five years ago when Barclays Center moved. We pick up markets similar to Madison Square Garden as well as a very new kind of Brooklyn market. So besides the shape, which is obviously a unique factor of Barclays Center, I think the location is important from a marketing perspective. From my understanding, the Oculus is supposed to be immediately eye-captivating. So you walk in, and you kind of feel like you’re in a big space even though you’re outdoors. And the Oculus within the circle is just a large LCD television displaying different videos and marketing pieces 24 hours a day, whether it’s the Nets or upcoming concerts. So, even if people are in the nearby mall, they still can glance over and see what’s coming up at Barclays Center.

Sports Management Education and Next Generation Mobile Marketing

An activation is basically interactive marketing. A customer feels like they’re putting their hands on the brand a little bit. And so we have a number of partners, especially here in spirit partners, where a brand will put their name on the label of a bar. Most of our partnerships are on contract years, and as a contract year ends, we might rotate a new partner in. Most of our in-arena activation is constantly full because of a very high demand for the Brooklyn market. A lot of brands love associating themselves with Barclays Center so they can get their name out there. The LED lighting that we have at the arena-not just the Jumbotron, but all the LED lighting around the arena-is just additional marketing collateral. And for our brands, it’s another way for them to associate themselves with Barclays Center. I know a lot of our health partners put their ads on those LCD screens. It’s just a way to highlight a deal they have going on or get their name out there.

Measuring impressions is probably one of the most exciting new data studies I think arenas are doing. There’s so much constantly growing and changing with that. The most obvious is scan, so we know exactly how many people come into the arena. So if it’s something big like the center Jumbotron, we’ll do count scans. Chances are everyone that entered the arena saw the Jumbotron, but if we’re looking at an LED light on the suite level, then we’re only looking at specific suite buyers or specific suite scans. We also have different activations that are just temporary. American Express has their own little box on our concourse, and we’ll have video games and interactive material in that box, and we can actually measure how many people walk in and out. I know a number of arenas are doing other very interesting things with impressions. A lot of people have sensors on the ground so they can feel how hard people step if they’re getting really excited and measure impressions that way. It’s getting very interesting.

Everyone’s phone has a Mac address that’s unique to that cell phone. So, when someone uses their app, it allows us to provide them with a better experience. We can see the concession stands they visit more frequently. We can gauge sentiment off social media pages, and we can also remarket to them very specifically based on what they like. Because BSE is a brick franchise, we have a number of arenas and venues. If they’re simply just a Nets fan, we’ll only market Nets. If they’re just an Islanders fan that only goes to games in Nassau Coliseum, we’ll only market that material. Having Mac IDs and cell phone data makes that a lot easier than just through email. So what we’re doing with the Mac ID is really an immediate remarketing campaign. If you like something on Facebook that’s Nets Team specific, we will then promote a Nets package to you. So it’s a very, very targeted program that uses that cell phone data.

Origins of Sports Management in Media History

One of the first things that happened in media history was the inclusion of a sports page in the newspaper. This happened in the 1800s when there were penny papers. The newspapers really needed to figure out how they could sell their papers to new audiences and people who weren’t already reading it. Sporting news was a great way to achieve that goal.

So, they began including a page on sports. A new kind of customer base came in and wanted to read about that. It really helped to legitimize sports as a force in society. That’s one of the only things that you can pick up the paper and really know it has its own section.

Radio’s Role in Global Sports Media History and the Need for Sports Management Education

That’s one piece of sports media history. Obviously, following newspapers, we had radio, where people could sit at home and listen to broadcasts of games. Even if they weren’t in that city, they could still feel like they knew what was happening in the game, and they didn’t have to wait until the next day’s newspaper came out to read about it.

Television Contributes to Media and Online Sports Management Education

From there, the evolution goes into television. One of the unique aspects of sports is that nobody really wants to watch a game that has already happened because it’s too easy to find out what the outcome was, especially today with the internet. There was one monumental game that in 1997 was actually voted the most popular network broadcast of a sporting event ever.

Online Sports Management Education Introduces Evolving Tech

Wearable devices have become such a valuable tool for sports teams. Not only does it help us evaluate talent, but it can also help us develop and coach talent because it provides feedback to the athlete. By providing feedback to the athlete, it allows us to monitor his or her actions on a real-time basis. Wearable devices have become a valuable tool for global sports organizations and athletes, as well as sports management. Wearable devices can monitor athletes’ fitness and wellness. It can also monitor capability in different athletic movements.

It not only can be used to evaluate athletes, but it can also be used to develop, train, and provide real-time feedback. This is really important because athletes are often looking to succeed at the highest level and particularly elite athletes. Sports management education explains the evolving technology. It states that instead of just being used in an evaluative sense, we’re allowing wearables now to be employed as coaching devices.

Playing Up the Social Element in Sports Management

There’s another reason why the business of sports is different from most other businesses. It’s because of the human element. On the sports stage, athletes can play out the virtues of grace under pressure, courage, leadership, and winning and losing. Sports is a really good stage on which to play out social conditions, and social conditions, when they’re properly understood, can be leveraged to create a better sports management business opportunity.

Here’s what I mean. Look at 1971, the first fight between Muhammad Ali and Joe Frazier. In 1971, Muhammad Ali had been out of the sport because he had protested going into the Army and the Vietnam War. He had called America a country that was unfair in matters of race, and he had given up all his wealth from his chosen profession of boxing to stand on those principles.

He became a symbol of peace on one side of the issues in a very polarized America, and then he wanted to come back and fight. And Joe Frazier, the African-American heavyweight champion, was willing to fight Muhammad Ali. No one else would. Ali boldly claimed, “And this may shock and amaze you. But I will destroy Joe Frazier.”

Only Ali so sharply understood the divisions in America. He wasn’t just interested in promoting a boxing match for a global sports payday; he was interested in creating an entire culture around him. His interest was much larger than just focusing on boxing fans. Ali began to promote the fight not just as Muhammad Ali coming back to fight the current heavyweight champion — even on its own, a very compelling contest.

Instead, Ali framed the fight in more dramatic terms, “You see that guy over there? He’s an Uncle Tom. He represents the other side of the issues. He represents one kind of America. I represent another. Didn’t you know?”

And so it was no longer just for sports fans or boxing fans. It was for anybody who was thinking and breathing and who had an opinion during this intensely polarized time of differences of opinion. In other words, he took this contest from being just a boxing match and made it into something that was interesting to everybody.

The same thing happened when Billie Jean King played tennis against Bobby Riggs. Bobby Riggs wasn’t really a male chauvinist; Bobby Riggs was a gambler. As he once said, “If I can’t play for big money, I play for little money. And if I can’t play for a little money, I stay in bed that day.”

Riggs was trying to pay off his gambling debts and needed to figure out a way to create himself a payday. He looked around for the most divisive issue right then in 1973. Women’s liberation was a top contender, so he took the stance of saying that women shouldn’t be playing tennis.

At a time when women were on the rise, there was a charismatic leader named Billie Jean King. She didn’t even play the match, but Riggs created this utterly compelling match-up. It wasn’t between Bobby Riggs and Billie Jean King but between the oldest match-up in the world: man versus woman.

There was a lot riding on this event while Bobby Riggs looked at it as sort of a joke. The implications of this match for sports management education were high. People were watching to see what would happen for women’s rights and the expectations of women’s abilities. And Billie Jean King took the match, and she won. Because of that, we’ve seen a lot of changes in online sports management education.

Those changes have included the evolution of Title IX in the collegiate setting, which says that sports programs have to ensure equal opportunity for women to compete. So while big football and big basketball are generating most of the money for collegiate sports programs that money has to be redistributed to ensure opportunity for women to compete as well.

Online Sports Management Education Lesson in Revenue Streams

How do teams make money? They make money now in almost any way you could imagine, as long as it touches on something related to sports. What does that mean? It means that in the past, we looked at team revenues in terms of ticket sales, then in terms of merchandise, and some of the other ways that we think about going to the game.

Sports Management Education Examines Added Revenue Streams

But over time, certainly, over the past 50 years, we’ve seen revenue come in major numbers, in billions of dollars through television rights. Now we increasingly see it coming through all the ways we get to watch our games. As if that’s not enough, enter sports betting and all sorts of things online, including E-sports.

Television Revenue in Sports Management

Television revenue for the past 30 or so years has been a major driver of revenue for sports clubs and franchises anywhere in the world. Now what we’re starting to see, of course, is that it’s not just about watching them on television. We also watch on a second screen, which is kind of interesting, because it’s now for many people become the first screen.

Global Sports Access

Anywhere and anyway people are accessing sports, whether it’s a game, a behind the scenes video, or a little piece of the action that you didn’t even know existed, all of that is worth many billions of dollars to teams and the players who play on those teams, plus the players we watch in individual sports, like golf or tennis.