Blog It Like Wharton
Knowledge at Wharton pokes around the logic of a player making more money than Michael Jordan, Shaquille O'Neal, Peyton Manning, A-Rod or Lance Armstrong when he stars in a sport that probably generates the least revenue of any U.S. pro league.
Can David Beckham - who's signed a $250 million contract to play soccer for five years with the L.A. Galaxy - sustain the hype?
The view of one of the marketing profs at Penn and various sports experts:
"Part of what makes Beckham a unique brand is that he is one of the few sports icons who combines this whole package of a glitzy and glamorous fantasy world -- a good athlete, Hollywood good looks, a good-looking wife," says Wharton marketing professor Americus Reed II. "He started building the brand in the context of the world's most popular sport. Moving his brand to the United States gives him the opportunity to extend his 15 minutes. It's a smart move on his part, but it could be tough. Soccer is not as popular in the U.S. as football, baseball or basketball."
Wharton marketing prof David J. Reibstein calls it a huge gamble - and not unlike Sirius sat radio's throwing hundreds of millions at Howard Stern:
"What they have done is bet the farm," he says. "And when you bet the farm, when you are that risky, you get a lot of attention. They have done it with the most visible name in the sport. This is the perfect team for David Beckham. He is so L.A., he is so Hollywood -- both he and his wife. He is a celebrity and this is huge for the sport. The U.S. Soccer Association has been trying for years to build its awareness and popularity in this country. We have been talking about soccer exploding since Pele. It didn't happen. Then came the Olympics; they are on the map for a week and then the Olympics end. So this is a bet: If we get the most visible and attractive player in the sport, maybe, just maybe this will catapult soccer into something huge. And if that happens, this could be a really good move for everyone in the sport."
I think this is a great move. It opens the door for other players (Ronaldo, Henri, etc.) to come to the states and play competitive soccer. It could also backfire when Beckham tears his ACL 2 games into the season on a cheap slide tackle by some scrub who makes 30K for the whole season.
While parallels can be drawn between bringing Beckham to the US and the Pele story of the 1970s, there are also some major differences. Today, there are more soccer fans in the US- helped out by a total of three soccer channels on cable/satellite (Fox Soccer Channel, Gol and Setanta. It's also much easier to follow the sport through the Internet and satellite radio. I can listen to a Chelsea match live from London while motoring down the PA Turnpike. And besides, the LA Galaxy are not paying Becks all those millions...much of it comes from selling the "Beckham Brand"-and remember this: a Beckham shirt can be sold anywhere in the world, not just in the United States, so even if the soccer market is soft in this country, we're in a world economy these days.
Let's see what happens if he converts to Scientology.
The allegiance with Tom-Kat is already creeping people out. Be careful Becks, Tom might get his non-medicated little hands on some of that quid. Can you say "David Beckham Scientology Sports Center"?? Your post soccer days will be spent teaching the Travolta kids how to properly corner kick while dodging Kirstie Alley sexual advances.
Televised sports in the USA is very different than in the rest of the world because it is commercial. Without a large number of advertising breaks (which would disrupt the flow of the game), these games can't be paid for by "free TV". I don't think even a subscription service could pay for it here. The NHL can't make it on broadcast TV in the U.S., despite the 2 intermissions & stoppages in play allowing for commercial breaks. So, bottom line is that this will not result in a significant increase in soccer's popularity. And, I say this as someone who watched most of the World Cup matches.
Soccer is highly commercialized all over the world, and probably outdoes other televised sports in terms of ad revenue. Some channels, like Fox Soccer, use the bottom part of the screen to show ads while the ball is in play, or they place ads by the game clock. But, just like with any other program, it all comes down to ratings. If people watch MLS games, then there will be plenty of ad and sponsorship money to be made, and if not, then Becks and Pele will share the honor of having helped push a league toward bankruptcy. Beckham is a great athlete, but he's not flashy on the field unless he's taking a free-kick. Hopefully more exciting players will follow in his footsteps.
As a fan, I hope the buzz generated is worth the exposure. This isn't as big as Pele, but will have better long term results. One of the eight games I go to this year will definately include when LA visits DC. I've only been at one MLS match with 58,000+, this will be number two. You can guarantee that place will be packed with curious sports fans, gliterati seekers, screaming girls and ex-pats. It will be that kind of travelling circus wherever Galaxy play. If you are a soccer fan who wants MLS in Philadelphia, visit sonsofben.com or phillysoccer.com.
As an expat Limey, it makes me chuckle to see the furore surrounding the Beckhams. What doesn't make me chuckle is seing Posh SPice being given her own TV special. As if she doesn't believe she's special enough already. Imagine yourself for a moment, in the opposite situation. You're an expat in England, who's settling in quite nicely, married a local girl, three dogs, nice home in the 'burbs, when along comes Paris Hilton and Kid Rock who get wall to wall media coverage, and all of a sudden your friends and colleagus realise that not everybody in England James Bond or the Queen Mum. It's almost enough to make one oversteep one's Darjeeling! Below is a posting I made on the BBC website, which will explain the translations. ______________________________________ The reason that Beckham is being paid such an obscene amount of money is for the media coverage that he will bring to a sport that is starved of coverage here in the US. Media coverage is Oxygen. Just ask the NHL (Ice Hockey). Once one of the big four sports in the US along with NBA (Basketball), MLB (Baseball) and NFL (American Football), the NHL is now relegated to coverage on the Outdoor Living Network, which is the same place you go to to watch BillyBob and Cletus blowing Bambi away. Now the NASCAR racing (BillyBob and Cletus turning left for four hours) has significantly moved ahead of the NHL in the public consciousness and the NHL is left wondering what might have been. Beckham's arrival (Both Beckhams) has, as previously stated given soccer (sic) more media exposure in the last few weeks than it has had in the last decade....and he hasn't kicked a ball yet. His remaining prowess is the least of Major League Soccer's concerns. Remember why Real Madrid signed him in the first place, when they already had Figo on the right wing. Because they were cash strapped and nobody sells shirts and brings in endorsements like Beckham. Whether he is - or was great - or not, is irrelevant. Whether Beckham revives the fortunes of the LA Galaxy is irrelevant. Bums on seats. Advertisers. Shirt sales. Media exposure.