SMGT Financing Final
#1. Exclusion of Local Residents
Economic impact only relates to NEW money injected into the community - Visitors, media vendors, sponsors, etc. - Count those who came because of the event Residents do not contribute because their money is just recycled - "switched spending"
New Premium Seating Options
Emergence of loge box or terrace table seating Charlotte Bobcats - Royal Box and Terrace Tables provide private, opera-styled, open-air boxes with many benefits, such as a flat-screen TV monitor in each box, bench tables, comfortable seating, in-box wait service, and immediate access to semi-private bathrooms
Why Companies Buy Naming Rights
"Differentiated" exposure - Cutsthroughclutter - "24-7" exposure afforded by naming rights is an appealing benefit, particularly for companies with little or no brand recognition Increasing sales - Exclusive supplier• Beerandbeveragecompaniespouringrights • Banks may place ATMs • Corporate hospitality
Private Revenue Sources
"Fully-Loaded" sport facility era has led to new sources of revenue - Premium seating - Personal Seat Licenses - Naming rights
Measuring Social Capital Benefits
"How much public funding should be provided to teams and/or facilities to fairly compensate them for the positive experience they offer to residents in a host community, beyond what resident pay for that experience?" Contingent Valuation Methods (CVM) - Places $ values on goods and services not exchange in the market place. - People are asked their willingness to pay (WTP), contingent on a specified scenario and description of the service - Usually generated lower $ than proposed amount, it still gives insight on how much social capital benefits will be.
Underestimation of Capital Costs
"Strategically"underestimatedcapitalcoststo host mega sporting events - To reduce negative political reactions • Examplesinclude: - Athens initially projected its Olympic Games would cost $1.6 billion but they cost close to $16 billion - Beijing projected costs of $1.6 billion but the actual cost exceeded $30 billion
#4. Interpreting Employment Multipliers
For every $1 million direct sales, how many jobs will be created in the community What to consider interpreting employment estimates: - Estimates include Full & Part-time• In sports, more part-time than full-time - Assumes new jobs will be filled by local residents
Fundamental Principles of EI Analysis
Formula: Economic Impact of Visitor Spending= Number of Visitors x Average Spending per Visitor x Multiplier • Steps Define who qualifies as a "visitor" Estimate the number of visitors attracted to the community by the sport event or facility Estimate the average level of spending of visitors in the local area Determine the ripple effect of this new money through the community by applying appropriate multipliers
The Inviolable Principles
Four principles central to the integrity of an Economic Impact study -Exclusion of local residents -Exclusion of "time switchers" and "casuals" -Use of appropriate multipliers and interpretation -Interpreting employment multipliers
Total Returns
Advertisers- Impressions - number of people who will see or hear their message - Cost per Thousand (CPM)• Advertisersonmajornetworksexpecttopaybetween$10 and $30 per thousand viewers • Broadcastersandsportmanagersmustlook beyond the bottom line when they calculate the worth of sports.
Rejuvenation through Mega Events
Almost all mega events include urban rejuvenation as a prime requirement in the bid specification 1992 Barcelona Olympic Games - Used Games to implement an imaginative, wide-ranging urban renewal plan that transformed its decaying industrial fabric New transportation system, modernization of the port and airport, restructuring the city's rail network, renovating the sewer system, upgrading urban tech and communications system Resultedin50yearsworthofinfrastructurebeing collapsed into an 8 year period at a cost of $8 billion
Sports Broadcasting Contracts (cont.)
Golf and tennis - Relatively small audiences with highly desirable demographic - Major events covered at ESPN - Golf Channel & Tennis Channel Boxing & UFC - Used to be a dominate sport, "perfect" for TV - Loyal, but shrinking, audience - Still popular on pay-per-view (PPV) and cable (FX)
Naming Rights
History of naming rights - 1971 - Schaefer Brewing Company paid $150,000 to name the Patriots stadium - 1973 - Rich Stadium in Buffalo ($1.5 million/20 year) - Mid 1970's Busch Stadium in St. Louis - 1987 - Great Western Forum in L.A. - 1988 - Arco Arena in Sacramento - 1990 - Target Center in Minneapolis - Not until late 1990's that naming rights agreements became prominent Since 1995, the number of naming rights grew significantly - By 1997, 33% major league venues named corporately, it increased to 70% by 2002
Challenges
Attendance returned to pre-Great Recession levels EXCEPT MLB "Affordability" - Fan Cost Index (FCI) Teams need to offer more flexible, affordable opportunities to increasingly price-conscious fans
Issues with Naming Rights
Bankruptcy - May beneficial if team/facility entered into a poor deal - May associate the team with failed company • Tragic or Negative Events - Enron & Houston Astros Enron collapsed as a result of unethical accounting practices Astros paid $2.1 million to remove Enron's name and regained $100 million over 28 years deal with a Houston-based Minute Maid - John E. DuPont Pavilion at Villanova • Dupont was convicted of murder
Role of Major League Status in Image Creation
Being seen as a major league city is symbolically powerful Major League sports can transform a city's image - "People in Cleveland warned that without new professional sports stadiums the city would be "just like Akron". Ballpark proponents in Minneapolis and Denver seemed worried that without new stadiums the cities would be just "a colder version of Omaha" • Take a 2nd-Tier city and make it a 1st-Tier city - May be even more important for smaller "mid-sized" cities - Cincinnati, Charlotte, Oakland, St. Louis, Jacksonville, and Kansas City...
Personal Seating Licenses (PSLs)
Buyers make a one-time payment for the right to buy season tickets - Most PSL programs offer substantial discount to current season ticket holders PSL owners MUST buy season tickets...or forfeit their PSL - Season ticket holders had better renew...or risk losing their seat! The concept of PSLs first introduced in 1993 by the Carolina Panthers - Huge success, sold 62,000 seat licenses, ranging from $600 to $5,000, allowing team to contribute $125 million to the construction of the new football stadium
Recent Trends
Challenges finding naming right partners - Washington Nationals still unsuccessful to sell naming rights - Limited prospect pool • Major national brands already entered into long-term naming partnerships with existing facilities Hometown players: Local corporations (Headquater) - Petco Park (San Diego Padres), Heinz Field (Pittsburgh Steelers), Target Field (Minnesota Twins), etc.
Rationale for Economic Impact (EI) Analysis
Civic leaders anticipate that sports events will attract visitors whose expenditures represent an infusion of new wealth into the community. City officials are eager to promote economic development. A sports stadium or franchise is a high-profile project that gives widespread visibility. - Also generate local tax revenues & provide new jobs Communities need to assess benefits in a broader context
Importance of Ticket Revenue
Consumers in the U.S. spend almost $31.7 billion a year on admissions to sporting events. For many sport organizations, ticket sales are a key source of revenue; for example, the NBA and NHL depend on gate receipts as their single greatest source of income. - The media-rich NFL teams less than 20% of operating revenues come from ticket sales - Ticket revenues constitute 23%-42% for most MLB/NBA - NHL rely on ticket sales for 50% of their annual earnings • Ticket sales provide 22% of the total income generated by Division I FBS collegiate athletic departments
Other Sport Media Outlets
Digital Media: Broadband, Wireless, and Tablets - Sports fans have demonstrated a readiness to follow their favorite sports and teams across the screens - MLB, NFL, NBA, NHL offers video and audio content on their own website - ESPN3/WatchESPN, NBC Olympics.. • Syndicators - Independent producers who purchase the rights to events or create programs, produce the programs, & then seek to place them on stations • Local Television and Radio - Coverage of local sports and teams - 1,782 VHF/UHF TV stations and 14,500 AM/FM radio stations
Legacy benefits
Direct net economic gains in the short-term from sport facilities or mega sporting events are eithernegative or too small to justify public investment. Repositioning to the long-term legacy benefits! Proximate development - Complementary development associated with sport facilities, and physical infrastructure improvements that they stimulate Enhanced social capital - Relationships, norms and connections that bind people together and contribute to accomplishing collective goals.
Land and Infrastructure Costs
Land and infrastructure for the facilities are rarely included in the publicity surrounding the government contributions • Examples: - Baltimore Orioles and Ravens stadiums were reported as costing $106 million and $220 million, excluding additional $100 million for the land - The value of land for the Safeco Field in Seattle was estimated $35 million
Image Enhancement
Image is the mental reconstruction of a place composed of beliefs, ideas, and impressions residing in an individual's memory Major sport events and teams are "image builders" for communities - Houston Astrodome, self-claimed "8th wonder of the world", was an important element to recast its image from "sleepy bayou town" to "space-age Sunbelt dynamo"
#3. Use of appropriate Multipliers
Income vs. Sales multiplier - Idea is to increase local income...however, most of the time sales numbers are much larger than the income numbers - Sales output measure• Very limited value, not useful for policy decisions - Personal income measure• Substantial practical implications
Costs: The Rest of the Economic Story
Most economic impact analysis publicizes ONLY the "positive" benefits; the associated costs remain "under the radar" If the costs exceed the benefits, even if there is a relatively high gross economic impact, the project likely would not be a good investment for the community!
The Multiplier Concept
Multiplier Concept - Initial new spending that stimulates other economic activity - Count only the money that stay in the community Larger the city, larger the multiplier effect!
Sports Broadcasting Contracts (cont.)
NBA - NBA mixes national coverage (like NFL) and local (like MLB). • Revenue from ABC, ESPN, TNT is split among clubs. - $24B/8yrs, 2016-24 • Localradioandregionalcoverageforeachteam - Basketball is a TV-friendly sport - NBA TV • Provides 100 regular season games, several early-round playoff games, highlights, and studio shows to about 60 million subscribers
Licensing Agreement
The licensing agreement spells out the specific grant of rights, including: - contract term - financial considerations - product categories - channels of distribution Licensing agreements can be exclusive or non- exclusive in regard to product categories (e.g., men's or women's apparel) , distribution channels (e.g., mass merchants, college bookstores, fan shops).
Trademark
The property holder (licensor) usually receives a royalty from the licensee when the licensee manufactures products bearing the licensor's trademark. A trademark helps identify the source of the goods, and distinguishes it from those of another party. Trademarks can take the form of words, colors,sounds and shapes, and are registered by product category with the United States Patent and Trademark Office (USPTO).
Collegiate Licensing
There are approximately 300 colleges and universities that have licensing programs, and many are assisted by a for-profit agency, but several universities operate under an on-campus management model. Agency-Assisted model - Collegiate Licensing Company (CLC), Licensing Resource Group (LRG), Sports Marketing Affiliates (SMA), etc. - Texas, Michigan, Notre Dame, Florida, Nebraska, etc. In-house model - Retain day-to-day management with internal staff - Ohio State, USC, Iowa, etc.
Sports Broadcasting Contracts (cont.)
NCAA - Only has rights to Championship events - Conferences/Universities have authority to make deals • SEC, Pac-12, Big Ten, and Big 12 TV deals provide each member $15-$25 million annually • Notre Dame is only school with national TV deal (NBC $9M/yr) - "Gold Mine" • Division I Men's Basketball tournament ($10.8B/14 yrs) - $770 million per year
Sports Broadcasting Contracts
NFL- "All-for-one, and one-for-all" "league-think" • Allowed small-market team to survive - Divided equally among the teams (regular season and post-season games) - each team gets $200 million per year • Teams retain local radio & pre-season games (only $3-5 million per year) - NFL treats every game as "national game" • Boost NFL popularity & teams that are televised
Sports Broadcasting Contracts (cont.)
NHL- Recentlysignedsubstantialcontracts • In2012,theNHLsigneda$2billion,10yeardealwithNBC and NBC Sports Network • 5yeardealwithCanadianmediacompanies(CBC,TSN) worth $840 million • NASCAR - Long-time regional sport, now a national presence - Racetrack owners used to have television rights for each race - Current contract: 8 years, $4.8 billion with Fox/SPEED Channel, ABC/ESPN, and TNT
Sport Media Outlets
National&CableNetworks - Major networks: ABC, CBS, NBC, Fox• Reaches 116M homes• Mainlyfueledbyonerevenuestream-advertisingsales - Cable networks: ESPN, FSN, TBS, TNT, etc. • 90% the size of national networks• Receivesubscriptionfees - Moreleague/team/collegeconferenceslaunchedself- owned networks • MLBN, NBA TV, NFL Network, Big Ten Network, SEC Network, Longhorn Network...
Measuring Audience Size
NielsenMediaResearch- Estimated 116 million TV households in the US - 210 designated market areas (DMAs) • ProgramRatings/Shares - Ratings - % of households tuned into program - Shares - % of TVs in use that are tuned in at a given time • Mostnationalsportbroadcastsgetsingledigit ratings - Super Bowl, playoffs, Olympics are exceptions
Attracting Tourists
No immediate net gain but there could be a legacy effect - future visitor numbers will increase as a result of the visibility stemming from the mega event Albertville, France and Lillehammer, Sweden, both received long-term benefits from holding the Winter Olympic Games FIFA World Cup in South Africa would lead to additional tourism visitation in the future However, there are many cases proving minimal legacy gains: Calgary, Canada, LA and Atlanta, USA
Regional Sports Networks (RSNs)
Occupy a niche in the market between the national sports networks and local broadcast stations The first RSNs was Madison Square Garden Network, debuted in 1969 - Featured Knicks, Rangers games • In 1999, FOX assumed full control of 21 regional sports networks - FOX Sports Networks (FSN) - Today, FSN is available to 83 million households, control local TV rights of baseball, basketball, hockey, and college sports • In 2002, Yankees launched YES network - First MLB team owned and controlled an RSN - Included in basic cable programming, reach to 10 million homes, estimated value of over $2 billion
Sports Broadcasting Contracts (cont.)
Other International Sports- Satellites and cable have allowed growth in popularity in the U.S. - Incredible popularity of certain sports • FIFA Soccer World Cup• Formula 1 • Premier League, Serie A, Bundesliga, Liga Espanol
PSL Program Strategies
PSLs proven to be more effective to raise capital in advance of the construction of a new sport facility Seat Builder License (SBL) - Pittsburgh Steelers called it SBL • Sold 35,000 seat licenses, raised $40 million- seat license revenues used exclusively for stadium construction costs, NOT to enrich the team or owner • Of the 23 NFL teams that moved into new or renovated venues between 1995 and 2010, 20 sold seat licenses - Smaller number of MLB teams implemented PSLs only a limited inventory • Virtually all major college athletics require those seeking prime seats to make an annual donation to the athletic department - "Priority Seating"
Magnitude of Economic Impact from Sport Projects
Professional sport franchises - By themselves, sport teams are not economic engine; they have too few employees and involve too few direct $ to be a driving force - Pro sports sector is a very small portion of any region's economy (less than 1%) - Majority of revenue collected by the team is used to pay players, and they tend to save money and spend in their "home" communities Mega sports events (Super Bowl, All Star Game, etc.) - Many research found that the mega sport events have minimal impact on host communities • Community Sports Tournaments - Meaningful economic impact found
Professional Sport League Licensing
Professional sports teams operate under a collective agreement that pools licensing revenues and operates a properties office on behalf of all teams within the league, with a few exceptions. - Centralized model, revenues distributed equally to each team Rights to the names and likenesses of players are often handled separately from league rights, by a players association (e.g., NFLPA, MLBPA)
Mischievous Application of EI Analysis
Reality of Economic Impact Analyses - Undertaken to justify a sport organization or community-elected official's adopted proposal for a new stadium or arena - Reassure the public that their money is going to good use, and is returned to them - The point is not to find the truth, but to legitimize their position Typically 10-15 times larger than a more reasonable estimate!
High-yield Inventory
Sale of this inventory yields such abundant revenues Club seats are sold on average for more than 3 times the price of a regular game tickets in NFL & MLB - The average "per cap" yield for someone purchasing a club or loge seat, including parking, exceeds $300 at an NFL game and well over $100 at an MLB game • Dallas Cowboys - 320 luxury suites and over 16,000 club seats - In 2009, 90% of the premium seating inventory was sold prior to the team's first game - Estimated total revenue from sales of premium seating alone exceeded $106 million
Ticket Sales Process
Season tickets - All home games (NFL 10 games, MLB 81 games, NBA/NHL 43 games) - Greatest benefits offered to season ticket holders - Share-partner & reselling options Mini-season ticket plans- "partial" season ticket plans, often called "mini-plans" - More flexible and affordable; corporate sponsor Group tickets - Create a sampling opportunity to attract casual or first-time buyers - Special event catering package Single tickets
Social Cohesion
Social cohesion refers to the tangible focus that sport teams can provide for building community consciousness, identity, and bonding Sport has become one of the few vehicles available for developing a sense of community cohesion which is defined by shared values, beliefs, and experiences.
Costs Considered
Society-wide costs Strategic underestimation of capital costs Interest costs Land and infrastructure costs Foregone property taxes Operation and maintenance costs Displacement costs
#2. Exclusion of Time switchers and Casuals
Some visitors may have plans to visit a city, but may switch their dates because of an event. These non- local visitors are called "time-switchers" "Casuals" - visitors already in the city for other reasons, but go to an event instead of doing something else. Expenditures by time-switchers and casuals would have occurred without the event, so income generated by their expenditures should NOT be attributed to it.
Attracting Businesses
Sport facilities are an economic development aid in attracting new businesses to a community, which enhances job opportunities and income for residents Attraction from increased awareness Attracting talent - "what are you going to sell? You sell the city's amenities. We have a great art museum, a great orchestra, and major league sports." Facilitated networking at sport facilities- Pro sport facilities may be a catalyst for new businesses
The Principles of Cumulative Attraction
Sport facilities were NOT isolated investment. Rather, part of an overall development plan that led tocomplementary downtown investment in entertainment, arts, and cultural centers. There must be other reasons to visit the area when games are not being played.
Community Pride
Sport teams and mega events are cultural assets with the potential to enhance residents' personal wellbeing and community pride - "the language of sports is the symbolic glue that holds together the entire social life world" - Sport is a central topic of conversation in many social contexts Professional soccer clubs in English culture- "Clubs do not exist to make money. Rather, their job is to make people happy.." Social capital from community pride is likely to be much greater in small or mid-sized cities
Society-Wide Costs
Sports allowed to be tax-exempted or pay less taxes than other businesses Use of tax-exempt bonds - When the Yankees Stadium was built with $943 million of tax- exempt bonds, it meant the Yankees saved and the federal government (society) lost between $231 and $471 million over the 30-year life of the bonds • Roster Depreciation Allowance (RDA) - Intangible assets (e.g., team members and their salaries) can be depreciated and this number deducted from profits - Created a lucrative tax shelter for franchise owners
Background of Sport Product Licensing
Sports-related product licensing dates back to the 1970s. It enjoyed a tremendous growth spurt as a "sports leisure" culture began to blossom in the 1980s. It has grown to be an important and lucrative revenue stream for colleges and universities, as well as professional sport teams, surpassing $30 billion in worldwide retail sales in 2015.
Who purchases premium seating?
Luxury suites - Generally limited to large corporations - Ideal place to entertain key clients and/or reward high- performing employees - Direct payments for game tickets, food, parking and other goods may by written off as a business expense if used to entertain clients - Companies can deduct most of the lease fee from taxable income Club Seats - Preferred option for smaller businesses and a growing number of individual fans - Fans receive access to a variety of specialty services and amenities: in-seat wait service, exclusive access to a club lounge for pre- and post-game food and beverag
Premium Seating
Luxury suites, loge boxes, and various forms of club seating The first facilities to incorporate a significant number of luxury suites and club seats: - Palace at Auburn Hills• Owner (Detroit Pistons) self financed the construction by pre- selling 180 luxury suites and 3,000 club seats - Joe Robbie Stadium (now Sun Life Stadium) • Dolphins owner privately financed through the sale of an unprecedented number of luxury suites (216) and club seats (10,302)
Sports Broadcasting Contracts (cont.)
MLB - Mainstay on radio by mid-1920s, & on TV by late 1940s - Local TV contracts existed before national networks - Network games would be blacked out if a local team was playing • Less familiarity with other teams • Weaker "national" television contract - Major split in local broadcast revenues • Big market teams signed huge contract with RSNs- The only major team sport that plays throughout summer • ESPN, FOX, Turner (TBS) combined total of $12.4 billion for media rights to games through 2021
The Sport City Legacy in Manchester, England
Manchester's successful bid to host the Commonwealth Games was part of its 25 year plan to rejuvenate the city Improvement of the pubic infrastructure - Airport, freeway system, rail system, indoor arena, city art gallery, museums • Create its "Sportcity" - Home of Manchester United and Manchester City - A World-class velodrome - The Regional Athletics Arena, The National Squash Center, Aquatics Center, Bolton Arena, and so on
Foregone Property Taxes
Many teams have negotiated with cities that they will NOT have to pay property taxes on the facility they occupy; in some cases, this occurs even when the facility is not publicly owned Examples: - Estimated property taxes foregone at PNC Park in Pittsburgh over a 30-year period will be $65 million - The NFL Carolina Panthers' new stadium in Charlotte, the estimated property taxes foregone was $61 million
Positive Images by the Olympics
The Mexico Games were intended to project that nation onto the international stage as a modern country and pre-empt the prevailing image held by many of it being apathetic, lazy and backward country The Moscow Games were intended to demonstrate the superiority of the socialist path to development, while the following LA Games featured the virtues of free enterprise and capitalism
Sports Broadcasting Contracts (cont.)
The Olympic Games - Predominately female audience - Huge global audience - Rooney Arledge: a pioneer of modern coverage of the Olympics Bring viewers "up close and personal" Emphasized stories of the athletes - NBC extended their rights through the 2020 Games with $4.38 billion - Additional digital outlets • Major events are streamed live online
Losing a "Major League" Franchise
May create impression that city officials and businesses are "incompetent" and the city is a "loser" and residents lack civic pride Losing a franchise may be worse than never having one in the first place
Operation and Maintenance Costs
Mega sport events facilities left on-going costs for under-utilized infrastructure 46% of major league sport facilities receive at least some maintenance cost assistance from public entities, these annual costs are rarely reported - e.g., Miami Heat receives an operating subsidy from City of Miami, $6.4 million annually • Offsite operation costs also need to be considered - Traffic congestion, increased sanitation facilities, public transportation, vandalism, police and fire protection, garbage collection, etc.
Customer Relationship Management
Utilize customer database - Sales transactions (STH, groups, individuals) - Sponsorship - In-venue contests and subscription - Concession purchases Emergence of Data Analytics - Houston Astros "analytics applies to just about every part of the Astro's business... so we can convert single game ticket buyers into season ticket holders and keep the STHs we already have" - Fan survey, purchase behavior analysis, customer profiling...
Variable Pricing vs. Dynamic Pricing
Variable pricing - Charging different prices for the same seat, depending on the game but prices are set before the season and NOT changed in season • Teams charge extra for weekends or rivalry games • Dynamic pricing - Fluid movement of ticket prices once the season is under way - Teams might raise prices in response to a trade, then move them back down if buyers don't respond - Creates a better match of supply and demand • Research found that teams increased revenue by an average of $900,000 for the season by adjusting price in each section of the ballpark one time for each game
Pricing Tactics for Tickets
Two Philosophies - Cost-orientation - price set to recover cost - Demand-orientation - price set depending on demand and sensitivity to consumers Since the Great Recession, teams have had to approach the market with a much more customer- oriented approach - Not all games have the same value
Business of TV and Media
Two major revenue streams for TV - Selling commercial time to advertisers - Subscription fees Subscription revenues can often far surpass the dollars generated by advertising - ESPN receives $5.4 billion of total subscription revenues each year ($5 monthly per each subscriber, 90 million subscribers)
Displacement Costs
These costs are revenues foregone by a community. - People who would otherwise spend money there are unable or unwilling to do so because they are crowded out and displaced by visitors to a sport event • Leavers - Community residents who leave the area at the time of the event, thus reduce their expenditure in the community • At Sydney Olympics, 30% of residents had no interest in the Games, 60% of them intended to leave Sydney for travel • Avoiders - Visitors who stay away but who would have come if the sport event had not been held - Super Bowl in Miami: no economic impact due to displacement effects
Omission of Interest Costs
When discussing capital costs incurred by the community, interests paid are often omitted • CincinnatiBengals'PaulBrownStadium- Funded $400 million of public money: "advertised" costs - However, interest charges of these bonds amounted to an additional $354 million over 25-year period of bonds - The real cost to the public is over $700 million, rather than the "advertised" $400 million
Challenges in Premium Seating
With a difficult economy, some arenas and stadiums drastically reduced the number (and the price) of both suites and club seats - Early in 2012, the Detroit Pistons eliminated nearly half of their 178 suites - As a part of a $975 million renovation, MSG eliminated 71 suites Recent Trends - Suite conversion• "sky suite" (far above the playing surface) to "lower-level suites" • Creation of "Party suites" - 20~80 person suites, per game basis - Suite sharing • Multiple tenants share suites
Audience Viewing Behavior
Women (19-34) watch TV avg. 5 hrs/week more than men - Daytime - 70% - Primetime - 62% Sport offers advertisers opportunity to reach male audiences
Enhancing Brand Equity
A city's brand equity comprises the strong and distinctive favorable attributes that people associate with the city in their memories - Two elements: awareness and image • Awareness - A professional sport franchise guarantees a substantial amount of media coverage • "Tonight, on every single TV and radio station in the USA, Seattle will be mentioned because of the Mariners game, and tomorrow night and the next night and on and on. You'd pay millions in public relations fees for that"
Clustering
A form of cumulative attraction that occurs at a regional rather than a local level • Examples: "Gasoline Alley" A four-block area south of the Indianapolis Speedway Suppliers, fabricators, chassis builders, and engine builders are located NASCAR headquarters and teams at Charlotte, NC 50 NASCAR teams have their home base there Includes race car construction, engine manufacturers and specialist supporters, and race-specific businesses
