Tuesday, February 22, 2011

Social media sites win

The use of social media, especially social broadcasting, represents the largest shift in leverage in today's media world.
And, certainly, this is affecting the business of sports.
In the sports arena, the power is shifting into the hands of celebrity athletes, who now have an opportunity to build their own personal media properties, where viewers and profits shift from content aggregators such as ESPN directly to the individual.
How will this happen?
It's all about the younger generation of fans and how they view content.
Younger sports fans aren't your traditional content consumers. More than 80 percent own smart phones; they are watching less and less TV; rarely listen to traditional radio; and enjoy getting most of their content off mobile video or Web video sites such as YouTube or Facebook.
They want to view what they want, when they want to, and they are choosing their viewing platform.
Younger consumers are just as likely to watch a video posted by Shaquille O'Neal on Facebook about his 60-point night than go to ESPN.com to read a commentator's take.
These younger viewers represent eyeballs, and eyeballs represent profits that were once monopolized by the traditional content aggregators.
Those days are changing. Local social media consulting firm Vitrue recently valued Facebook fans at $3.60 per fan per year. Take an athlete such as LeBron James, who has close to 5 million Facebook fans, and the revenue potential this provides is staggering.
But while James does a good job managing his social media with multiple personal posts each day, it seems a number of those posts are being managed by staff or social media consultants.
Savvy fans can see right through that filter. It's best if athletes keep it real and personal, or else they risk alienating their followers.
When athletes and celebrities embrace building, or enhancing, their personal media property, they understand that it is a once-in-a-lifetime platform to:
Connect directly to fans;
Better understand their fan demographics;
Funnel endorsement deals their way;
Build revenue for their philanthropic endeavors;
Connect advertisers with targeted demographics;
Provide special offers to their fans and their advertisers;
Generate a revenue stream that will outlast their professional career.
Social media is forcing the sports business to reinvent itself at some levels.
It's exciting and time to embrace it. My college tennis coach used to say, "Just win the last point of the match, Molly."
Well, we all know, you have to win a lot of points and games to position yourself for that ever-important last point. Are the games the athletes' existing platform? Or is the ever-important last point for athletes today how effectively they optimize their personal media property?

Friday, February 4, 2011

In negotiations, party with the most choices is in control

The National Football League lockout is no different from any negotiation, whether two parties or several parties negotiate: The goal isn't a good deal, but a great outcome. In a perfect world, it's a formulation of a great outcome vs. a negotiation of a good deal. But it isn't a perfect world. In fact, the sand is flying in this sandbox.
Lets take a peek at the NFL lockout from a bird's-eye view --- a player agent perspective.
Player agents like to be able to provide their clients with answers and solutions to challenges. During a lockout, most of an agent's information comes from their players or a trusted media source. During the lockout, agents spend their time anticipating for (and with) their clients, their clients' financial advisers and, believe it or not, attempting to help players see both sides.
Agents are often business owners as well. So empathy with the owners exists by some agents. Agents are out of control right now, but let's be honest, agents are used to being out of control. Their livelihood primarily exists based on someone else's performance and decisions; and an agent's business model is made up of multiple bell curves and requires constant reinvention and retention.
The NFL has been one of the best sports products in the market. In my opinion, one of the many reasons the NFL has flourished is due to the fact that the players are modern-day gladiators. Yes, they have a unique platform, but they pay a price for it and only have a limited window of time to play in their lives.
The owners also take significant risks, most notably financial, by providing the infrastructure and platforms. Both look at each other as a resource to support their unique professional objectives.
Like anything in life, it takes two to tango. Negotiations typically boil down to greed, money and control; a belief that one party can't live without the other. This negotiation, at its core, is transactional for both parties, making transparency and authenticity difficult to surface.
Many people reading this might think, "but it is just a game --- don't forget that." I agree. No question, jumping out of the sandbox and realizing it isn't a solution to world hunger would support perspective.
Although transactional, results will flourish if discussions are anchored against honoring the game of football. Honoring the game that allows so many people to make a living doing something they love. It's about honoring the people who paved the way and honoring the people forthcoming.
Do I sound too altruistic? Stay with me. It's about honoring the people for which the game impacts. It's about remembering the reality, that it is a game. But the fact is, it is a business and a livelihood for many. And a good one --- let's not forget it.
From my experience and judgment relative to negotiations, the party with the most choices is in control --- and more likely to "win." Who has more choices in this lockout?