We have been blessed to work with some amazing athletes and sponsors over the past few years. They both shared one thing in common, they gain exposure when they perform, and in that performance they have a 50% or greater chance to loose. Throughout this time in the sport of MMA, fighters complain that they do not earn enough and the sponsors claim to not be able to identify the return on investment (ROI) involved.
One of the big issues is that the athletes are usually too busy to market themselves correctly and do not have the right representation helping them find the time and tools to build their own fame outside of the events. The sponsors rarely activate the sponsorship and roll the dice on the event. Yet the athlete they are paying has little to no control over the event, if they show the sponsors logos or the very important walkout. Some brands have paid mid five-figures per fight to have their shirt worn during the walkout and post-fight coverage.
Many opportunities to engage the consumer and potential consumers are often missed or ignored and the activation is almost non-existent. The major promotions like the UFC regulate and restrict which sponsors are allowed and even charge the Brands a sponsorship participation fee. This fees can sometimes be in the mid to high five figures per year. They are not given anything that any other brand is given. You would think that this “tax” would increase the sponsors desire to get more for their investment. Instead it appears to have only reduced the amount the sponsors are willing to pay, made the sponsors focus more on if the event will be televised, and at the same time weeded out the small to medium apparel companies from the mix and removed their ability to support athletes. That is at least what they will have you believe. The fact is, many have just used this “tax” as a reason to leave the sport because they never developed an ROI.
We have brought in many non-endemic sponsors that are focused on the athletes and are willing to look at the events as “bonus” exposure while working with the athlete in a true endorsement fashion. One of the UFC’s major sponsors, Bud Light and it’s parent company, is arguably one of the largest Sports Marketing agencies in the world. They are also one of the most successful.
There is no missing the event involvement Bud Light has in place with the UFC. Their approach to their MMA Fight Team is less about big in-event placement on the athlete and instead more focused on outside the event endorsement. They use their athletes in their retail point of sale advertisements, use the athletes image and likeness in their bar and restaurant advertising, produce webisode series promoting the athletes and more. They make sure they ingrain their brand and athletes at every possible outlet and event. It may be argued that they provide equal or greater promotion of these athletes than the UFC does.
So what are some of the solutions? The first step is for the Brands to realize they are sponsoring and endorsing an athlete. They need to have a plan in place on how they are going to extract value from the sponsorship and utilize these athletes. Instead of looking at it as a billboard type logo placement it must instead be viewed as a relationship. They have to get beyond being a fan of the athlete because that will only lead to the most expensive Facebook photo in the world. Second, they need to activate around the athlete and his or her platform. Use the events these athlete’s participate in as spikes in exposure and capitalize on the ability the events have to engage the target consumer but do not make this the be all, end all effort. The athletes and their team need to make sure they have a platform to offer. The brands need to try to coordinate and cross promote whenever possible.
As you can see Wrangler does a great job with this. They offer a wide array of their shirts with various PRCA and PBR sponsor logos on the shirt along with their Wrangler logo. I know MMA has to get away from having seven competing fight brands on one tee shirt and shorts before they can offer this type of merchandise. As you will see in the slide show below it is not just Rodeo either, many sports employ this model. You are also not tied to using all of the brands as you see with the Wrangler shirt above.
Here is the Official NASCAR Team DuPont Jersey.
And here is a NASCAR fan wearing the same jersey.
Obviously there are no competing brands on this jersey but you see various brands showcased and the primary brand DuPont is prominent. The fans buy these jerseys for the same reason they buy NFL, NBA and MLB apparel because it is authentic looking.
I recently moved to the Central Coast of California and on any given day you see a slew of Cyclists riding through the hills, coast line, and throughout town. I started to notice the majority of them are wearing authentic team apparel. Either Radio Shack has started sponsoring every cyclist in the world or once again we are seeing fans and practitioners of the sport seeking authentic apparel. Here are some examples –
Here is the Team Radio Shack cycling uniform.
Here is the Team using the uniform
And once again here is a fan who has sought, purchased, and is proudly representing the brand in the exact same gear.
This is not really a sport specific phenomenon. The fact is NASCAR, NBA, Soccer, MLB, NFL, PBR, PRCA, Motocross, Indy Car and more derive a considerable amount of revenue from this type of merchandise. The brands exposure is extended beyond the athlete, the event, and the athlete’s platform and the marketing provided by the Brand. The exposure alone is a tangible return on the sponsors investment and having your brand worn by your target consumer or applied to your target consumers personal property becomes an extremely valuable proposition for the brands supporting these athletes and Teams.
The majority of the MMA industry is missing this market and opportunity. From the athletes to the brands no one seems to be making any replica merchandise. There is no doubt that there is a demand for these types of products. There is no doubt that in these tough economic times we need the sponsors to be more successful then ever before and at the same time find a way to extend the engagement beyond the events.
The managers and agents in the sport of MMA need to get out of the patch business and get into the brand building business. They need to build the brands of the athletes they represent and help guide the brands that support those athletes to successful and controllable engagements. If you are merely trading logos for dollars based on exposure you did not create you are on the path to failure for you and your clients.
The athletes need to look for ways to connect with the fans and extract value for the sacrifices made. Depending on events and televised exposure you can not and do not control is a recipe for disaster. You need to yourself or have other people helping you build your brand and increase your exposure even when you are not fighting.
Brock Lesnar’s sponsor Death Clutch has offered replica walk out tees in the past. They seem to be one of the few brands or athletes offering such items. In the past you used to be able to buy the Overeem Replica Fight shorts. The issue with fight shorts is that unless you can kick ass like The Reem you probably should not be wearing his shorts. It is kind of like showing up to your first BJJ class with 20 sponsors on your gi.
Here is the Death Clutch UFC 116 walk out tee:
We have had one client that fought 9 times and 3 of which were in the UFC and he had earned just under $100,000 for 3 years of work and 9 fights that he won, his MMA earnings were predicated on when or if he fought. The same client is now a millionaire based on competing 3 times over two years. He has months where he makes $50,000 and has consistently has earned a monthly income from his endeavors in and out of the Octagon. The difference has been focusing on building his brand and finding ways for his sponsors to earn their ROI. He has both endemic and non-endemic sponsors alike.
The authentic and replica tee shirts are a great opportunity to increase your brand, your sponsors branding, and your income as an athlete. You can go to any size event and you will see merchandise similar to what you see here and in our slide show. If the athletes do not create these then the brands should. Even the video games strive to ingrain authentic sponsors on the in-game characters on both the THQ and EA Sports MMA games.
This should not be ignored and it very well may be the lowest hanging fruit in the entire MMA market. If you trained would you wear replicas of your favorite fighters shorts or rash guard?
I am sure just about everyone in the US has seen that NASCAR fan who has their personal possessions or vehicles with logos from the brands that support their favorite athlete.
Here is a slide show that shows various sport jerseys and tee shirts and the fans that wear them. It is easy to see the potential market that is out there. A lot of these fans are cross over fans and are fans of many sports.
By now everyone has seen a Apple TV or Google TV device. My under $2000 dollar LED TV came with WiFi and streaming content from over 100 TV channels, access to new release movies as they are available and a whole host of other contents at my fingertips pumped into my living room. I am the captain of my content. I have my DVR recording my TV shows and I still buy the occasional TV series on DVD. I have spent a lot of time and money making sure I can watch what I want when I want.
The cheapest gadget is my cable set top box provided by Cox Cable. This baby cost me $5.00 a month and I can record what I want and watch it when I want. I can record it and keep it and best of all I am not a slave to the commercials. As a matter of fact I am usually drawn into commercials when I am watching non-modern TV set ups. I am surprised by the amazing quality of the ads and yet it is too little to late. If I am viewing your commercial on TV I am likely too cheap to buy your product. It only cost $5.00 a month to avoid the ads of those who helped fund the content I am enjoying. I sometimes have to stop myself from complaining about the crappy level of TV shows we have on TV these days. I am then quickly reminded that I just skipped past the persons message who is paying for the content to be created. I am a part of the problem or movement.
I am not alone, I am just a lot older then most of those involved in the movement and they rarely talk to us “old guys”. The iTV movement is upon us. In a recent independent study (away from Nielsen ratings etc.) of how those 34 years of age and younger Social Media users how they watch TV and Videos online. The results are conclusive that the Movement has begun.
-Only 12% do not subscribe to some form of Cable or Satellite Service. Of the 12% it was reported that 8% of them used open air antenna’s to receive a TV signal (primitive).
-58% of the users watch more online TV then they did last year.
-75% of the users are using some sort of DVR device to record their TV shows.
-64% of users rely on YouTube, 47% rely on Hulu (which is owned by the networks and currently considering a business model change), 33% on Netflix (which is now surging and will likely pass Hulu next year), iTunes represents 15% and the rest is spread out amongst other online solutions. User generated content followed by Network created content.
-80% of those surveyed, who were 18 years old and younger watch TV online, those 18-24 were at 79%, and even the 55 and older crowd came in at 31%. A stunning 72% of those aged 34 years and younger watch their TV online.
-55% even recorded live TV
The iTV movement is upon us, particularly for those 34 years of age and younger, who are willing to watch their TV online. The majority of respondents are recording their content on DVR’s such as TiVo. With over 72% those aged 34 and younger are watching their TV shows online. With Twitter and Social Media being so real-time it is surprising to see how many really watch the content on their time.
We think the online community is set to quadruple in size by 2014. This will mainly be impart to the iTV Movement.
When I was cutting my teeth in the IT world I meet a guy at work named Ken. he was an IT idea guy and the company kept him locked away in a room like a mad scientist. In my time at the company I used to find excuses to go pick his brain. I was the closest thing you can get to legal LSD.
He never wore shoes, he sometimes appeared as if he never even went home. I never saw him build anything but he was the guy the brass would call on when they needed someone to poke holes into a gant chart or some IT sales pitch about redundant servers. I asked him once “if anyone has ever impressed him” his reply was “not yet”.
Maybe he was chock full of ignorance and negativity I was not smart enough to understand 1/4 of the things he said. One thing that stood out is that he claimed to be one of the ex-government employees who invented the internet. He said it was designed for the government and cannot sustain its growth patterns. He compared it to the leaning tower of Pizza with the world trying to find space on the top floor.
It has taken almost 20 years to really understand what he was saying. Broadband wasn’t a consumer product back then it was for business and government. Now when we check into a hotel and if it doesn’t have high-speed internet my kids act like we stuck in some road side motel with a crappy dinner. If they only knew of dial-up and all of the tricks to getting on the net in the AOL days.
So this morning when I was reading this article on Mashable about the internet is running out of IP addresses I thought of my mad IT guru Ken. For every box plugged into the net there is a unique IP address given. Some can be reissued but even with that the fact is in a few days we will run out of IP address. At least IPv4 IP’s are going away. The ones short enough for your IT manager to remember the IP address and recite it to the boss about your continuous views of adult dating sites. The people who are smarter than us about these things have already been preparing for this. No need to not buy the new laptop or tablet. No you cyber stalkers won’t have freedom to run a muck after we run out of IPv4’s
The one thing that Ken forgot is that he is not the only intelligent guy stuffed in a “idea’ room. People have been working on IPv6 for a few years and the new IP address will be much longer and a blend of number and letters (WEP anyone). So keep surfing, keep laughing at your friends who do not have high-speed Internet and stay connected.
Remember you are OG if your IP is 18.104.22.168 and you are a newbie if your IP includes letters and digits. It is not to late they have just about 4 billion unique IP’s and they are getting taken at a rate of 1 million address’ every four hours.