University of Economics, Prague International Business
NHL Entry into the Chinese Market
Author: Ladislav Liška
Thesis supervisor: Ing. Jitka Volfová, Ph.D.
Scholar year: 2019/2020
Declaration of Authenticity:
I hereby declare that I am the sole author of the thesis entitled “NHL Entry into the Chinese Market “. I duly marked out all quotations. The used literature and sources
are stated in the attached list of references.
In Prague on ………... ………
Ladislav Liška
Acknowledgement:
I hereby wish to express my appreciation and gratitude to the supervisor of my thesis, Ing. Jitka Volfová, Ph.D. for her guidance, help and support throughout the entire
process of writing the thesis.
Furthermore, I would like to express my gratitude to my family, girlfriend and friends for their endless support during my studies.
Table of content
Introduction ... 1
1 Marketing ... 5
1.1 Marketing Strategy ... 6
1.2 Communication ... 8
1.3 Brand Management ... 9
1.4 International Marketing ... 10
1.5 Sport Marketing ... 12
1.6 Consumer Behavior ... 16
2 Sport ... 19
2.1 Sport Industry ... 19
2.2 American Professional Leagues ... 20
2.2.1 NHL ... 23
2.2.2 NBA ... 29
3 China ... 34
3.1 Sport Policy in China ... 36
3.1.1 Evolution ... 36
3.1.2 Current State ... 38
3.1.3 The 13th Five-Year Plan for Sports Development ... 39
3.1.4 Official Regulations Regarding Ice Hockey ... 41
3.2 Sports Market in China ... 43
3.2.1 Trends in Chinese Sports Market ... 45
3.2.2 Major Team Sports in China ... 47
3.2.3 Ice Hockey in China ... 48
3.3 Specifics of Chinese Consumer ... 52
3.3.1 Online Lifestyle ... 52
3.3.2 Brands ... 55
3.3.3 Advertising ... 56
3.3.4 Sport Consumer ... 57
4 NHL Activities in China ... 61
4.1 China Games ... 62
4.2 Sponsors and Investors ... 64
4.3 Hockey Development Programs... 66
4.4 Broadcasting ... 69
4.5 Social Networks ... 71
4.6 Local Heroes ... 74
4.7 NBA Cases ... 76
4.7.1 Yao Ming and “Linsanity” ... 76
4.7.2 Shanghai Tigers ... 79
4.8 Summarization and Evaluation ... 81
5 Research ... 87
5.1 Methods and Procedure ... 87
5.2 Findings ... 89
5.3 Discussion and Implications ... 97
5.4 Limitations and Future Research ... 99
Conclusion ... 101
List of Abbreviations ... 105
List of Tables ... 107
List of Figures ... 108
References ... 110
Appendices ... 124
This page left intentionally blank.
1
Introduction
This thesis focuses on marketing strategies of two major American professional leagues - the National Hockey League (NHL) and the National Basketball Association (NBA) in the Chinese market. Sport is a worldwide hobby, not just activity, but also watching or betting on games. Sport events such as the Olympic Games or the FIFA World Cup or Rugby World Cup are global phenomena that are watched by billions of fans around the world and are generating enormous profits.1 This is recognized by representatives of individual national and multinational leagues (the Champions League, the Premier League, the National Football League - NFL, La Liga…), which seek to promote and engage spectators on foreign markets. In addition to the football leagues, the "Big American 4", the NFL, the NBA, the NHL and the Major League Baseball (MLB), is the most globally known. We would find all 4 leagues in the top 5 richest leagues in the world.2 For a long time, profits from stadium tickets have been a negligible amount for these leagues. Broadcasting and merchandise sales are the largest volume of money. Also, we should not forget sponsors.3
And it is precisely the sale of television rights, the sale of merchandise and the search for sponsors that can easily take place globally in markets where people are interested in professional leagues. All leagues carefully identify the markets where the greatest financial potential lies. Until recently, this was mainly due to the history of the sport itself. However, the world is evolving, and in many developing economies of the world, GDP and, with it, the disposable household income, and thus the middle class, are growing. This growth is most noticeable in China.4 The Chinese consumer
1 GOUGH, Christina. Most valuable sports events brands worldwide in 2019. Statista [online].
11.12.2019 Available from: https://www.statista.com/statistics/253353/brand-value-of-sport-events- worldwide/
2 PARKER, Garrett. 10 Sports Leagues That Bring in the Most Money Worldwide. MoneyInc [online].
1.9.2019 Available from: https://moneyinc.com/sports-that-bring-in-the-most-money-worldwide/
3 ECKSTEIN, Jakob. How the NFL Makes Money: TV is the NFL's golden goose, but gambling and streaming show potential. Investopedia [online]. 24.9.2019 Available from:
https://www.investopedia.com/articles/personal-finance/062515/how-nfl-makes-money.asp
4 KHARAS, Homi. The Unprecedented Expansion of the Global Middle Class. Global Economy and Development at Brookings [online]. February 2017 Available from: https://www.brookings.edu/wp- content/uploads/2017/02/global_20170228_global-middle-class.pdf
2
has become a new phenomenon and many transnational corporations (TNC) have focused on the Chinese market. Meanwhile, Chinese consumers are admiring Western brands and strong brand management is needed.5 Obviously, the potential of the immense market induced the commissioners of American professional leagues.
The author chose the NHL marketing strategy for analysis. Especially since he has been playing ice hockey since his childhood, and as a result, watching the NHL is essential part of his life since the same age. Ice hockey is his lifelong passion, and after experience from a study exchange in Canada, where he met a lot of people who have seen ice and ice hockey for the first time in their lives, he believes that this sport has global potential. And China is the best option for expanding hockey to Asia.
Nowadays there are favorable conditions as Beijing will host the Winter Olympic Games 2022 (WOG 2022). Because of the global event, public policy in China is strongly in favor of discovering new winter sports, including ice hockey.6
The main objective of this work is to answer the question. Is there any room for the NHL brand to be successful in the Chinese sports market? If the answer is positive, the author will suggest possible improvements to increase the probability of successful penetration of the Chinese market. These suggestions will be based on interviews and findings from the analytical part of the thesis. The main goal will be achieved by means of partial goals, which are to identify preferences of the Chinese consumer in the field of sports industry. Identifying the state of sport in general and specifically of the Chinese sports market and identifying the sports policy of the Communist Party in China. Based on the theoretical knowledge I will set criteria and analyze the NHL marketing strategy and compare it to the NBA marketing strategy, which is the most successful sports league in China.7 In addition to analyzing marketing strategies
5 TONG, X. and HAWLEY, J. (2009), "Measuring customer‐based brand equity: empirical evidence from the sportswear market in China", Journal of Product & Brand Management, Vol. 18 No. 4, pp. 262-271.
https://doi.org/10.1108/10610420910972783
6 13th Five Year Plan of Sports Development. General Administration of Sports of China [online].
5.5.2016 [cit. 2020-02-01]. Available from: http://www.sport.gov.cn/n10503/c722960/content.html
7 CAREEM, Nazvi. NBA No 1 in China ahead of Premier League and Champions League in survey of internet users; CSL not in the top 10. South China Morning Post [online]. 14.5.2019 Available from:
https://www.scmp.com/sport/china/article/3010184/nba-no-1-china-ahead-premier-league-and- champions-league-survey
3
based on data from official sources, the author will investigate the wishes and desires of Chinese sports fans through semi-structured in-depth interviews with representatives of the NHL marketing strategy target group. Besides the more general questions, the relationship of fans to hockey and their experience with the NHL will be examined.
The thesis is divided into five chapters. The first chapter presents the terminology.
It introduces basic marketing terms. This is followed by a description of marketing strategies and some marketing tools like communication. The next subchapter is devoted to brand management. Furthermore, the terms related to international marketing and marketing from the sports environment are explained. At the end of the introductory chapter is taken a closer look at consumer behavior.
In the second chapter, the reader is introduced to the field of the sports industry. The American Professional Leagues are presented in more detail. The subchapters are devoted to the NHL and NBA. The financial state and local and international marketing activities of both leagues are drawn.
The third chapter brings us in more detail to China and its economic conditions.
Besides that, the official sports public policy of the reigning Communist Party of China is explained. It is underlining the main regulations on the field of sport such as the 13th Five-Year Plan for Sports Development. The regulations are selected with an emphasis on its relationship to winter sports, ice hockey in particular. In the subsequent chapter, the Chinese sports market is displayed. The sports and leagues, that represent potential competition for NHL are highlighted. This is followed by a closer look at the Chinese consumer – specifics, and desires. Also, what are the trends in China.
The fourth chapter is introducing the NHL’s marketing strategy for China and its activities in practice. These activities are analyzed to determine whether they meet the criteria and are appropriately selected and customized to the Chinese market (containing what the Chinese consumer expects). In order to better illustrate the situation, marketing cases from the NBA strategy will be presented. The ongoing success/failure of the marketing strategy will be supported by indicators selected by the author, which will be drawn from official sources. For instance, indicators
4
comprise data such as the average number of TV viewers, the number of followers on social networks, or figures of merchandise sales.
The final fifth chapter is about research. The author addressed several Chinese appropriate to NHL’s target group with in-depth semi-structured interviews in order to find out their desires. The chronology of the chapter will be as following:
methodology, findings, and discussion and implications. Data collected using interviews will be thoroughly analyzed, using a thematic analysis approach. Ideas and recommendations in direct relation to the findings of the in-depth interviews will be developed in the next subchapter.
After reading this thesis, the reader should have an overview of the current conditions in the Chinese sports market. He should be aware of the distinctions of marketing when penetrating the Chinese market and the characteristics of a typical Chinese consumer.
This thesis is primarily focused on the American NHL organization, including its specific recommendations. However, the findings and recommendations obtained can serve as inspiration or guidance for similar entities, particularly leagues from other fields of sport.
5
1 Marketing
In the first chapter the author provides the theoretical background. Basic terms from marketing, brand management, international marketing, sport marketing and consumer behavior will be described.
At the very beginning, we need to define what marketing is. Generally, there are innumerable definitions of marketing to be found. They are differentiated whether they are from the perspective of the society or management. For the first time, marketing has begun to be referred to as a marketing conception, as a way of selling that followed product and sales concepts and, unlike them, began to consider customers’ wishes and aspirations. The American Marketing Association (AMA) revises the definition every three years and the latest version has this form: “Marketing is the activity, set of institutions, and process for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.”8 Philip Kotler offers quite a shorter definition in one of his many books, where marketing is called as the satisfaction of customer needs with profit. This satisfaction is happening in the current Internet era when consumers, technology, and competitors are changing very quickly. Therefore, marketers must decide very rapidly what features and functions they will give to their product, where and at what price they will offer the product and especially how much they are willing to invest in advertising.
Recently, mainly on the Internet and mobile applications.9 The thesis will set the Kotler’s definition as a basis for the further work. Particularly its first half – satisfaction of customer needs.
8 What is Marketing? American Marketing Association [online]. [cit. 2020-02-23]. Available from:
https://www.ama.org/the-definition-of-marketing-what-is-marketing/
9 LANE, Kotler Philip, Keller Kevin. Marketing management - 14. vydání. [s.l.]: Grada Publishing a.s., 2013
6
1.1 Marketing Strategy
Marketing strategies usually involve these processes in this order - analysis of marketing opportunities, selection of target markets, development of marketing mix and management of marketing efforts.
The marketing environment can be analyzed in different ways. Companies can create their own SWOT analysis or PEST analysis to evaluate the macro and microenvironment of the company in which it is located. Nowadays, a large opportunity is the global market and e-marketing. We will get to both later.
There are also several markets. We distinguish B2B, C2C, C2B and B2C markets.
Consumer markets (B2C) mean that marketing is purely customer-focused. It is therefore essential that marketers have studied consumer behavior and apply appropriate marketing tools. Because people are unique, every individual has their own preferences and desires. Thus, it is not possible to practice a unified marketing strategy for the entire society, but it is advisable to segment the given market. By market segment, we understand consumers who respond in a similar or the same way to the chosen marketing stimulus. The next step is to target the most appropriate segment for our product or service. Then we need positioning, which clearly defines our product or service against the competition and makes it outstanding and in the final step creating a marketing mix.
The marketing mix should include all the tools that lead to influencing the demand for their product or service. These tools to influence demand are known as 4 (5) P’s.
The product, price, promotion, place, and people. It is also possible to meet term 4 C’s.
That means customer needs and wants, the cost to the customer, convenience and communication. At first glance, it is obvious that this is a marketing mix from a consumer perspective. All components of the marketing mix have many factors and there are millions of alternatives to using them. The result of the chosen methods
7
should always be the added value for the customer and the impulse for the purchase of the product or service.10
Figure 1 - Marketing Mix
S ourc e: K ot ler ( 200 7), Cr eat ed by aut ho r
As mentioned above the world economy and marketing are constantly and gradually evolving. The most recent trend is e-marketing, namely online marketing via the Internet. In addition to the Internet boom, e-marketing growth was supported by the expansion of smartphones, tablets, smart TV’s and especially the massive advent of social networks. With the Internet and communications technology, businesses can gather information about their existing or potential customers much faster than before. Thus, the company can customize its offer or even let customers actively participate in product custom erization. E-marketing has brought many benefits to businesses, such as increased speed and efficiency and, in some cases, lower costs. And what are the possibilities of E-marketing? The traditional and necessary option is to set up your website and e-shop, as well as sending a newsletter to email boxes of your subscribers. This was followed by the
10 KOTLER, Philip. Moderní marketing: 4. evropské vydání. Praha: Grada, 2007
Company Perspective
Product
Price
Place
Promotion
Customer Perspective
Consumer
Costs
Convenience
Communication
8
establishment of official profiles on all kinds of social networks and online advertising and promotion on social networks or search engines such as Google.11
1.2 Communication
Another important part of the marketing of every company is communication to customers and to the public. Through communication, the company establishes a relationship with customers and then maintains it. All communication can be described as a communication mix. And what are the main tools for applying a communication mix? These are advertising, personal selling, sales promotion, public relations, direct marketing and digital marketing.
Figure 2 - Communication Mix
S ourc e: K ot ler ( 200 7), Cr eat ed by aut ho r
With the development of new technologies, most companies have moved from mass communication to targeted and individual marketing. However, it may happen that the information received by the customer in the inbox differs from the information they see
11 STRAUSS, Judy, Raymond FROST and Alexa K FOX. E-marketing [online]. 2019 [cit. 23.02.2020].
Available from:
http://search.ebscohost.com/login.aspx?direct=true&scope=site&db=nlebk&db=nlabk&AN=1554178 Communication
Mix Personal
Selling
Sales Promotion
Public Relations
Direct Marketing Digital
Marketing Advertising
9
in the evening commercials on television, so companies are introducing integrated marketing communications. And what can be the company's communication goals?
Again, in the first step, the target group should be selected. In the last step these targeted consumers are supposed to buy the product or the service. But the purchase itself is preceded by certain intermediate steps, which are awareness of the product or company, knowledge, sympathy, preferences and purchase decision.12 Thus, it is essential to first reach the subconscious of targeted consumers and acquire their preferences before they are likely to make a purchase. Another model is the AIDA model. In the first step company try to gain attention. After gaining the attention needs to generate interest of the potential customer. In the third step consumer should feeling the desire or need. And in final step to take an action and make a purchase.13
1.3 Brand Management
Brands and trademarks are the company's most valuable asset for global companies.
This is because it is usually the first thing the consumer imagines. It is the consumer's loyalty that is directed towards the brand rather than the product or service. Therefore, there is a need for strong positive associations for consumers in relation to the brand.
For instance, in terms of qualities (speed, endurance, luxury), benefits (admiration and respect), values (prestige, success), culture or personality (what a typical customer looks like). An interesting option for the company to attract new customers to its brand is co-branding. In co-branding, several companies labeled the product with their brands. Another option is brand licensing. Brand licensing is when another company uses the brand on its products for an agreed (license) fee. Recently, it is almost essential to involve corporate social responsibility (CSR) for brand and company stability. So that the customer knows that the brand is socially responsible and trustworthy. Fairtrade activity is also typical for certain industries.14
12 KOTLER, Philip. Moderní marketing
13 JANSEN, Wendy, Wilchard STEENBAKERS and Hans JÄGERS. New Business Models for the
Knowledge Economy. In: [cit. 26.02.2020]. Available from:
https://search.proquest.com/docview/2131357352/bookReader?accountid=17203
14 KOTLER, Philip. Moderní marketing
10
1.4 International Marketing
The second half of the 20th century not only brought a marketing concept but also improved the world infrastructure, which led to an increase in international trade and thus also the international marketing activities of companies. The 21st century is a time of technology that has skyrocketed the rate of globalization, and larger companies are forced to operate internationally.
One of the company's most important decisions is how to enter a new market. There are many options and the choice is made after consideration of the following factors:
investment intensity, target market potential, business risk, the competitiveness of the company in an international environment. Entry modes are export modes, non-equity contractual modes, and investment modes. In export modes, trades are realized through intermediary relations like for instance export agency, distributorship contract, commercial agency, trade commissioner, direct export or export alliance. The non- equity modes of international production and development methods of entry are licensing, franchising, management contracts, outsourcing, and manufacturing cooperation. For investment modes, companies can opt for greenfield investment, takeover, merger, joint venture or strategic alliance.15
In addition to selection the method of entering the international market, the company must also conduct market segmentation and segment analysis, then select the target market and pick out a segmentation strategy. As mentioned above, there are several markets, here we will focus only on the consumer goods market. The consumer goods market can be segmented according to criteria of its characteristics or consumer behavior (expectations, preferences). The market characteristics include geographical (population density, language group), demographic (age group, gender),
15 MACHKOVÁ, Hana. Mezinárodní marketing. Praha: Grada, 2006
11
socioeconomic (disposable income, expenditure structure) or psychographic (social class, lifestyle) criteria.
S ourc e: Machková (2006), Created by author
The methodology of values and life styles (VALS) explains consumer behavior by values and attitudes that determine their lifestyle. Other methodology encompassing the lifestyle is Activities, Interest, Opinions (AIO). This methodology focuses among the others on hobbies, sport activities, social life, entertainment, diet, favorite TV channels, and compare them with sociodemographic profile.16
The target market should be chosen based on the size and attractiveness of the segment and its growth potential. However, many companies perceive the foreign market as an investment in the future and are therefore willing to enter a new market, even if the target segment is small but has enormous potential.
Attractiveness could be seen from the perspective of existing or potential competition.
The segmentation strategy is often influenced by the number of targeted market segments. The company usually has three options. Mass marketing, differentiated marketing, and concentration strategy. If company selects mass marketing, then probably tries to be successful with one product and maximize it share on the market. Differentiated marketing means, that company makes an effort to attract several segments with different and customized marketing mix. Lastly concentration strategy is selected when company focuses on market niche or just one segment.
16 Ibid.
Geographic
• Language
• Population Density
Demographic
• Age Group
• Gender
Socioeconomic
• Disposable Income
• Expenditure Structure
Psychographic
• Social Class
• Lifestyle
Figure 3 - Market Characteristics Segmentation Criteria
12
In the international marketing mix, communication is the essential thing. The aim of the company is to create a desirable idea of its brand and its products. The company can bet on a global communication strategy, which means to transfer the successful international advertising campaigns to a new market. And it only makes small edits like a translation into the local language. Or an intercultural form of communication where only the basic concept is defined by the headquarters and the local management chooses a concept suitable for the market. Next option is a local communication strategy, where local management decides on the communication strategy itself on their responsibility. What strategy the company chooses is determined by its corporate strategy and culture, but also by the character of the penetrating market.
Some countries almost require adaptation of the communication strategy, in order to be successful.17
1.5 Sport Marketing
This is an area of marketing that has started to develop quite recently, especially in North America. An example of development is the foundation of two professional magazines Sport Marketing Quarterly and the International Journal of Sports Marketing and Sponsorship. In addition, several universities have developed fields that focus directly on sports marketing. And what should we imagine when we talk about the term sport marketing? Kahle and Riley offer three different ways of looking at this term. The first way is that the goal of marketing is to attract people to active sports, for example by attending sporting events or joining a club, or just buying a season ticket to a fitness center. Marketing of companies producing sports equipment facilitating participation in sports activities can be included in this area as well. Another way to explore sports marketing is the role of sport in promoting non-sports products and services. This may include commercials during sports intermissions or promotion of products and services by famous athletes, which become celebrities. A long-term example is the Gillette advertising campaign or the long-term connection between Coca Cola and the Olympic Games. The third way to understand sports marketing is that marketing aims to sell sports as part of the entertainment industry to as many consumers as possible.
17 Ibid.
13
This category includes professional competitions that can be watched at the venue or via multimedia.18
Other approach to what belongs to sport marketing is made by Fullerton and Merz.
According to these professors there are 4 domains of marketing conceptualization.
Theme-based strategies, product-based strategies, alignment-based strategies and sport-based strategies. These strategies are distinguished by sports marketing dimension amongst the others. They recognize two dimensions – marketing through sports and marketing of sports. For this thesis is more important marketing of sports, therefore we look in more detail only on product-based and sports-based strategies.
S ourc e: FUL LE RTON, S am a Rus s ell ME RZ, 200 8. The Four D omains of S po rt s Mar k et ing: A Conc ept u al Framew ork I nt rod uc t ion t o S port s Mark et ing. S port Mark et ing Qu art e rly . 2008( 2), 17, 90–108. ISSN 1557 252 8.
For a product-based strategy, marketers typically use a marketing mix, where they appropriately adjust the product, price, or promotion to better appeal to consumers.
18 KAHLE, Lynn R. and Chris RILEY, eds. Sports marketing and the psychology of marketing communication. Mahwah, NJ: L. Erlbaum, 2004
Figure 4 - The Four Domains of Sports Marketing
14
The main difference from the sports-based strategy is the absence of monetary incentives or sponsors money.
The marketers can, for instance, change product. Product enhancement could be a change in the rules of the sport, which aims to better adapt the game to TV broadcasting while increasing the amusement and thrill of the sport. An example is the introduction of 3 on 3 overtime in the NHL, or a few years earlier the introduction of shootout. In women's basketball, adjusting the rules even altered the size of the ball, resulting in an increase in sales of new size ball. Individual teams and leagues have expanded their product far beyond the game itself. For wealthier spectators, they prepared luxury boxes at their stadiums. San Diego Padres in MLB or Florida Panthers in NHL prepared the Spanish commentary of the live game for their minority Hispanic fans.
Promotion can also take place in several ways, obviously teams are running official accounts on all popular social networks and keep updated their mobile applications.
Technology has enabled a whole new way for teams to communicate with their fans.
It is almost an obligation to prepare reports about their players, including their private lives. The classic form of sales promotion is to offer the product for a certain period for free. For instance, the subscription of NBA TV. At the venue itself, teams hand out special booklet or leaflets to every single game and predominantly in the USA organizing special events when at the gate visitors receive gift like unique t-shirt or cap to the event or bubblehead figure for the kids.
When discussing the price, marketers of sports organizations often work with discounts. The classic way is, for example, a quantity discount through a multi-game package. Or discount given as a result of status (student, retired people, veterans).
However, tickets can also be raised because of an important game or on a special occasion such as an important day (Halloween, Christmas, St. Patrick’s Day).
Next important price tool is auction. Many sport fans collecting memorabilia of their favorite team or athlete. And no hesitate to spend money on it.
And lastly the distribution. There are many ways to foster distribution. For example, moving the team to a more appropriate or new. The NBA decided to set up a G-League team in Mexico to pave the way for later expansion into Mexican market. The NHL has
15
also moved or established several teams in the southern part of the US to occupy potentially large markets. In the Internet age, however, the most important thing and marketers challenge is to distribute the product to directly to consumers home.
For instance, through their own TVs or electronic devices. Mobile applications also greatly speed up the process of tickets sale for the event and the comfort of fans during the purchase.19
Sport-based strategy is a less frequently used strategy. It means, that sports teams or leagues are sponsored by a company from a sports environment. Finally, the partnership of two sports organizations is a major different from alignment-based strategy. And what are the options to forge financial bond between the organizations?
There are generally four types - sponsorship, venue naming rights, endorsements and licensing.20 For the teams, it is important to have a strong sponsor base and for that reason could offer naming of their stadium or arena, then place for ads on their jerseys or uniforms, furthermore place for the ads on the court, side court or in vicinity or the participation of its players in partner’s events. For the league, on the other hand, it is important to have a strong licensing model. They close contracts with specific manufacturers to supply equipment for their teams. Also, they offer their logo and the logo of their teams to produce merchandising. In addition, stronger leagues provide a license for video and mobile games, both are a source of income and a way to promote. The importance of video games increased even further after the popularity of videogaming and the emergence of esports.21
As was mentioned before leagues and teams seek the money. It is the same as in other industries, organizations hire marketers to make a profit. In order to earn the money target on two subjects – companies and households. Try to allure people to interest in their league and create the passion, in order to bring sponsorship money from companies or increase profit from advertisements. Also, a bigger fan base and more
19 FULLERTON, Sam and Russell MERZ. The Four Domains of Sports Marketing: A Conceptual Framework Introduction to Sports Marketing. Sport Marketing Quarterly. 2008, n. 2
20 Ibid.
21 Global eSports market revenue 2022. In: Statista [online] [cit. 20.02.2020]. Available from:
https://www.statista.com/statistics/490522/global-esports-market-revenue/
16
followers’ equal bigger amounts for broadcasting rights and licenses.
What distinguishes sports marketing from other branches is the product. Sport is unique because of the game itself. It is something happening now and live, and it is dynamic. Then many famous athletes become worldwide known celebrities and become idols even for non-sport people. The sport could be characterized by easily recognized uniforms and clothes as well. Typical for the sports is an innovation and development of the game. Not only in the meaning of the rules but also in results and standings of the current game. Further, the venue of the event itself is not an ordinary place. And last but not least sports teams gather themselves in organizations and create perfectly organized leagues and tournaments, which define an ideal environment for competitions that people wish to see.22 And in many countries sport is rooted in its national culture.
1.6 Consumer Behavior
There are many definitions of consumer or consumer behavior. For example, Jing recognizes a broader and narrower definition of the consumer. In a broader sense, the consumer is anyone who receives natural goods such as air or water. In a narrower sense, the consumer is the individual who buys and uses products and services from the consumer market.23 Schiffman looks at consumer behavior through the needs of the individual and presumes that consumers are searching for and buying products that they expect to meet their needs.24
22 ČÁSLAVOVÁ, Eva. Management a marketing sportu. Praha: Olympia, 2009
23 JING, Jian Xiao. Consumer Economic Wellbeing [online]. Springer, 2015 [cit. 28.02.2020]. Available from:
https://books.google.cz/books?id=uSXMCQAAQBAJ&pg=PA3&lpg=PA3&dq=consumer+definition+in+
the+book&source=bl&ots=OsxBQ25Srv&sig=ACfU3U0laqxkWj3pDrtrn7q9fiUpEXEW1g&hl=cs&sa=X&
ved=2ahUKEwirguu7gfTnAhVUtnEKHUyuDscQ6AEwDHoECAoQAQ#v=onepage&q=consumer%20d efinition%20in%20the%20book&f=false
24 SCHIFFMAN, Leon, Havard HANSEN and Leslie KANUK. Consumer Behaviour: A European Outlook [online]. Pearson Education Limited, 2008 [cit. 28.02.2020]. Available from:
https://books.google.cz/books?id=hOt8Cud4FMwC&printsec=frontcover&dq=Consumer+Behaviour:+A +European+Outlook&hl=cs&sa=X&ved=0ahUKEwiO3cahiPTnAhXJTxUIHeJGCmUQ6AEILDAA#v=on epage&q=Consumer%20Behaviour%3A%20A%20European%20Outlook&f=false
17
Therefore, any marketing strategy should be developed regarding consumer behavior.
Customers differ in several elementary parameters such as gender, age, income or education. However, these are not the only characteristics that determine their selection. Cultural, social, personal and psychological factors have a significant impact on consumer behavior. The cultural factory reflects the basic values and attitudes that an individual adopts from his family and surroundings. Social factors include groups of which the consumer is a member. He might share their opinions and view of the world. Nevertheless, it is the core family that usually has the strongest influence on man. In parents, a person has a role model, which he then transmits to his partner life. Social factors also include social role and status. Based on roles and status, society expects certain behavior from an individual. Another factor is personal characteristics. The age and phases of life have an indisputable influence on the consumption behavior of an individual. Obviously, the priorities change during the cycle. Marital status and employment, which imply an economic situation, also have a deciding impact. All personal preferences, financial situation and private life are transferred to the individual's lifestyle. In postmodern era, consumers obey the motto: to have, to be and to enjoy. A psychological factor plays a role in purchasing as well. This theory assumes that people must be motivated to buy. The stimulus of this motivation are different, but they can be summarized using Maslow's hierarchy of needs. Consumers must buy essential products to prevent hunger and thirst.
However, they are also looking for products that will give them, for instance, recognition of their surroundings or meet their aesthetic needs.
18
So, we already know what factor influences the consumer's decision, but it is vital to mention the purchasing decision process. The customer goes through 5 phases.
The first stage is to identify the need, customer realizes the existence of the need.
The next stage is to search for information about products that can solve the need.
Once the consumer has the information, the phase of comparing alternatives begins.
He evaluates the characteristics of products and bear in mind the brand image.
In the fourth stage, the consumer already makes the purchase decision and purchases the product. Here, the decision-making process is not over, because the final stage is post-buying behavior. The consumer still needs to assess his satisfaction or dissatisfaction with the product, which has a major impact on his next purchase.25
S ourc e: K ot ler ( 200 7), Cr eat ed by aut ho r
25 KOTLER, Philip. Moderní marketing Identification
of need Searching for information
Comparing Alternatives
Purchase Decision
Post-Buying Behavior Figure 5 - Purchasing Decision Process
19
2 Sport
Sport is a common part of the life of a large part of the population. People can do it in any form or watch it as one of the ways of entertainment, or both. Whatever you prefer, sports has been a big business lately. If you go jogging, you should buy sportswear and shoes, if you want to go to fitness you need to pay the entrance fee and maybe even a personal coach. If you prefer to sit at home on the sofa and watch your favorite football game, you will probably have to pay a premium channel on TV.
When you go with your friends to the stadium, you pay the ticket, parking at the stadium, buy merchandise in the fan shop to fit in and enjoy refreshments at the stadium. According to a study conducted by the European Commission in 2012, sport in the Czech Republic created an added value of 1.06 billion Euros.26 This chapter introduces the sports industry and then discusses American professional leagues and the NHL and NBA in more detail.
2.1 Sport Industry
The sports industry is not a proper national economy industry in the Czech Republic.
In the US, by contrast it is.27 This branch of industry also has no single definition.
In some publications such as Contemporary Sport Management, the authors are content with the definition: “Sport Industry is composed of subindustries such as professional sports, collegiate athletics, facility management, health of fitness and sporting goods”.28 In another book written by Hans Westerbeek we could meet a definition based on value-chain approach. Then we find that sport industry is all what describes and categorizes all suppliers of goods and services that satisfy or at least contributes to satisfying sport needs.29 If we move our attention to China, we might find
26 Study on the Contribution of Sport to Economic Growth and Employment in the EU [online]. European Commission. 2012. Available from: https://ec.europa.eu/assets/eac/sport/library/studies/study- contribution-spors-economic-growth-final-rpt.pdf
27 ČÁSLAVOVÁ, Eva. Management a marketing sportu. Praha: Olympia, 2009, p. 127.
28 PEDERSEN, Paul Mark, ed. Contemporary sport management. Champaign, IL: Human Kinetics, 2011, p. 292.
29 WESTERBEEK, Hans. Global sport business: community impacts of commercial sport. London:
Routledge, 2013, p. 3.
20
other alternative definition. General Administration of Sport of China together with National Bureau of Statistics set the definition in 2008. In broader sense it is the activities providing sport services and products, as well as the related supporting activities. In more detail Classification of National Economy is composed of the core, the peripheral and the relevant section.30
S ourc e: ZHA NG, J ames J ianhui, H aiy an R oge r HUA NG a J ohn NA U RI GHT, ed. S p o rt bus ines s in lea din g ec onomies . Firs t edit ion. B in gley , UK : E merald P ublis hin g, 2018, p. 13 7. I S B N 978 -1 -787 43 -56 4-3
Important part of sport commercialization is a media network. Relationship between sport and online or televised broadcasting always create a bond between sponsors, advertising and teams or athletes as brands.31
2.2 American Professional Leagues
This term refers to all American professional competitions. However, it generally means the so-called "Big Three" or for others "Big Four". This includes NFL, MLB, NBA and NHL. As already mentioned in the introduction, these leagues rank among the world's top 5 in terms of revenue. All these leagues originated in the first half
30 ZHANG, James Jianhui, Haiyan Roger HUANG and John NAURIGHT, eds. Sport business in leading economies. Bingley, UK: Emerald Publishing, 2018, p. 137.
31 SLACK, Trevor and EBOOK LIBRARY. The commercialisation of sport. Milton Park England:
Routledge, 2005
Figure 6 - Classifications of Sports and Related Industries
21
of the 20th century. In the early years of their existence, they had to struggle with competing leagues in their sport, which they subsequently merged with.
Nowadays, they compete between each other for the fandom. Each league is made up of at least 30 teams across the United States, Canada for the NHL and NBA. It is also beginning to discuss expanding to Mexico at least. The leagues are not only about sponsors and spectators at stadiums, but above all about TV viewership. The system of competitions as well schedule is different for each league. For example, the regular season of the NFL consists of only 16 games, while in MLB it is 162 games. Baseball is played from April to September, while football from August to January. Also, the NFL and MLB have a different post-season format, culminating in major nationwide Super Bowl and World Series events.3233 The NBA and NHL, on the other hand, are very similar, with the season running from fall (October) to spring, followed by the same playoff system that peaks in May and June. The months of February and March are the only ones in the year when they only compete with each other. Even at the end of March, the whole of the US is focusing on college basketball and the March Madness event.
32 National Football League: American Sports Organization. Encyclopeadia Brittanica [online]. [cit. 2020- 02-04]. Available from: https://www.britannica.com/topic/National-Football-League
33 Major League Baseball: North American Sports Organization. Encyclopeadia Brittanica [online]. [cit.
2020-02-04]. Available from: https://www.britannica.com/topic/National-Football-League
22
S ourc e: GOUG H, Chr is t ina. A v erage p er g ame at t en danc e of t he f iv e major s po rt s lea gues in N ort h A meric a in 201 8/ 19. S t at is t a [ online] . S ept embe r 20 19 [ c it . 2020 -02 -0 4] . A v ailable f rom : ht t ps : / / www. s t at is t a. c om/s t at is t ics / 207458/ p er -game -at t e ndanc e -of -maj or -us -s po rt s -l eagu es /
The average per game attendance should be interpreted as an interest in the sport, because of that sports vary in arena capacity and number of home games, and, as has already been said, income from tickets is a marginal issue. Given the stadium capacity, this chart is favorable for NFL, NBA and NHL representatives.
S ourc e: Nat ional B as k et b all A s s oc iat ion . S t at is t a [ online] . 2018 [ c it . 2020 -02 - 04] . A v ailable f rom : ht t ps : / / www -s t at is t a -c om. z droje. v s e. c z /s t udy / 10890/ nat io nal - bas k et ball - as s oc iat ion -s t at is t a -dos s ier/
Figure 3 - Average per game attendance of the five major sports leagues in North America in 2018/19
Figure 7 - Average per game attendance of the five major sports leagues in North America in 2018/19
Figure 4 - Average franchise value from 2007 to 2019
23
As it was mentioned in Figure 3, although the average attendance at NHL matches is good and hockey is in good shape, the average value of the NHL club is stagnating or growing more slowly than the other leagues. One reason may be that the domestic North American market is already saturated. The NHL, like other leagues, is therefore embarking on the path of globalization and one of the priorities is the Chinese and Asian market.
2.2.1 NHL
The NHL was founded in 1917 and in its early days was a merely Canadian competition. From the beginning, the award for the winner has been Lord Stanley Cup, one of the most valuable sports trophies. In 1925, the first American team appeared in the competition. During World War II, team fluctuation stood at 6, the so-called
“Original Six” (Boston Bruins, Chicago Blackhawks, Detroit Red Wings, Montreal Canadiens, New York Rangers and Toronto Maple Leafs). In 1967, the league doubled to 12 teams. Following decade was full of expansions as well, and after the collapse of the competing World Hockey Association (WHA) in 1979, the league counted 21 teams. Further expansion took place in the 1990s after the arrival of new Commissioner Gary Bettman, whose aim was to expand the NHL to hockey contrived markets in the South of the USA and to California and Florida. In 2016, the first professional team in Las Vegas emerged, and by 2021, thirty second team would be set up in Seattle.34
34 NHL Records - NHL History. In: [cit. 29.02.2020]. Available from: https://records.nhl.com/history
24
S ourc e: FULE RY , Tom. NHL E x pans ion Ma p . I n: [ c it . 29. 02. 2020] . A v ailable f rom : ht t p: / / www. t omf ulery . c om/ wp -c ont ent / upl oads / 20 16/ 0 6/ N HL -E x pans io n -V e gas -Map. p ng
An important milestone for the league came in 1967 and it was the establishment of players' union - the National Hockey League Player Association (NHLPA).
Negotiations on Collective Bargaining Agreements (CBA) have so far led to 4 strikes and lockouts. In 2004, it even caused canceling the entire season. At the same time, NHLPA had a great merit on the fact that from 1998 to 2014 players participated in the 5 Winter Olympic Games in the row. The first ones in Nagano, Japan, 1998, were used for the promotion of the NHL on the Asian continent. A total of 6 exhibition games between 1997 and 2000 took place in either Tokyo or Saitama, Japan.35 These were the first games ever between two NHL teams played outside Canada or the USA.
At that time, in the NHL was starring one of the best players of the decade, Paul Tetsuhik Kariya, Canadian, however his father was half Japanese.
35 NHL Records - Games Outside North America. In: [cit. 29.02.2020]. Available from:
https://records.nhl.com/events/games-outside-north-america Figure 8 - Map of the NHL teams
25
The next Olympic Games will return to the Asian continent in 2022 in Beijing, China, and the NHL will want to repeat its marketing campaign and efforts.
Another interesting milestone in the NHL's marketing history is 2003, when the tradition of open-air games has been established. “Winter Classics” are always played on New Year's Day and reported excellent television ratings in the US.36 Therefore NHL set another tradition in “Heritage Classics”, which differ only by a date.
Since 2007, the NHL has been organizing not only preseason but also regular games in Europe to please its large non-American market. Some of the teams have already performed in the UK, Sweden, Finland, the Czech Republic, Germany, Switzerland and Austria. In addition, NHL offers its own website and mobile application in Czech, Finnish, German, Russian, Slovak, Spanish and Swedish versions. NHL hired local journalists to contribute with articles, so it is not a plain, artificial translation.
Furthermore, on weekends there are "European game of the week", that is scheduled in European television prime time.37
Nowadays, the social networks are an absolute necessity. Heidi Browning, Chief Marketing Officer (CMO), has set new media as its primary target when she was elected. The current NHL strategy heading to total personalization, where a single fan ID should provide a unique information. Browning defines NHL fans as follows:
"Our fans tend to be some of the youngest, most tech savvy and the highest household income of all the major leagues."38 One of her priorities is to attract women to hockey.
She sees social networks as a great opportunity, especially because women are the most active persons on social networks. The league account is followed by over
36 U.S. TV viewership selected NHL games 2011. In: Statista [online] [cit. 29.02.2020]. Available from:
https://www-statista-com.zdroje.vse.cz/statistics/244275/us-tv-audience-for-selected-nhl-games/
37 NHL’s European Game of the Week. In: NHL.com [online] [cit. 29.02.2020]. Available from:
https://www.nhl.com/fans/european-game-of-the-week
38 MCCARTHY, Dave. NHL expanding social media communication. In: NHL.com [online] [cit.
29.02.2020]. Available from: https://www.nhl.com/news/nhl-expanding-social-media-communication/c- 292994654
26
6 million people on Twitter and less than 5 million on Facebook. Individual organizations then about a million people on both platforms.39
The average fan profile would look something like this. He is a middle-aged white man with above-average earnings.404142 Which is reflected in the fact that he is willing to pay for watching his favorite sport.
S ourc e: Q4 20 17 Onli ne V id eo & P ay -TV Trends Rep ort . I n: [ c it. 29. 02. 2020] . A v aila ble f rom : ht t p: / / dm4. t iv o. c om/ l/ 43592/ 2018 -03 -0 7/ bf c 4jw
39 National Hockey League. In: Statista [online], p. 15,16 [cit. 29.02.2020]. Available from: https://www- statista-com.zdroje.vse.cz/study/11455/national-hockey-league-statista-dossier/
40 Race/ethnic breakdown of NHL TV audience 2013. In: Statista [online] [cit. 29.02.2020]. Available from: https://www-statista-com.zdroje.vse.cz/statistics/290152/distribution-of-nhl-regular-season-tv- audience-ethnicity/
41 Age breakdown of regular season NHL TV audience 2013. In: Statista [online] [cit. 29.02.2020].
Available from: https://www-statista-com.zdroje.vse.cz/statistics/290136/age-distribution-of-nhl-regular- season-viewers/
42 Income distribution of NHL regular season TV audience 2013. In: Statista [online] [cit. 29.02.2020].
Available from: https://www-statista-com.zdroje.vse.cz/statistics/290153/income-distribution-of-nhl- regular-season-tv-audience/
Figure 9 - Top 10 Channels Respondents will pay the most to watch
27
S ourc e: NHL rev en ue by y ear. I n: S t at is t a [ online] [ c it . 06. 03. 202 0] . A v ailable f rom:
ht t ps : / / www. s t at is t a. c om/s t at is t ics / 193468/ t ot al -lea gue -r ev enue -of -t h e-n hl -s inc e -20 0 6
S ourc e: NHL av era ge f ra nc his e v alue 2000 -2 019 | S t at is ta. I n: [ c it . 29. 02. 2020] . A v ail able f rom:
ht t ps : / / www -s t at is t a -c om. z droje. v s e. c z /s t at is t ic s / 193443/ av erag e -f r anc his e -v al ue- nhl Figure 11 - National Hockey League average franchise value from 2000 to 2019
Figure 10 - NHL league revenue from 2005/06 to 2018/19
28
The financial situation of the league is better every year. Figure 6 shows that the league's revenue has almost doubled since 2005. The same situation applies to the management of individual teams. If we look at the value of organizations, it has increased by four and half times on average. The most valuable teams are those from Original 6. They are leading by the NY Rangers worth $ 1.65 million, making it the 72 most valuable team in the world.43 Assuming we value only the brand, the most valuable is the blue maple leaf logo from Toronto. In 2013, it was valued at
$ 140.93 million.44 Of course, it is essential to not forget to mention the sponsorship money, if we are describing financial aspect. Incomes from sponsors growing gradually between 5 – 10 %.45
S ourc e: NHL Co rp orat e M ark et ing P art n ers . I n: NHL . c om [ online] [ c it . 29. 02. 2020] . A v ailable f rom:
ht t ps : / / www. nhl. c om/ inf o/ c or porat e -ma rk et ing - pa rt ners
43 BADENHAUSEN, Kurt. The World’s 50 Most Valuable Sports Teams 2019. In: [cit. 29.02.2020].
Available from: https://www.forbes.com/sites/kurtbadenhausen/2019/07/22/the-worlds-50-most- valuable-sports-teams-2019/#19eda492283d
44 NHL Team Brand Values – February 2013 Update. In: Available from:
https://www.brandfinance.com/images/upload/brand_finance_nhl_brand_values_february_2013.pdf
45 NHL sponsorship revenue 2011-2018. In: Statista [online] [cit. 29.02.2020]. Available from:
https://www-statista-com.zdroje.vse.cz/statistics/456365/nhl-league-team-sponsorship-spending- worldwide/
Figure 12 - List of NHL Partners
29
The NHL divides its partners into global, regional and local. In addition to global and North American sponsors, it also has special sponsors for the Canadian, American and European markets. It should be noted that the Chinese company O.R.G.
Packaging is among global sponsors.
2.2.2 NBA
The NBA was formed after World War II in 1946 as the Basketball Association of America. The NBA name came into being 3 years later after merging with the competing National Basketball League. Like the NHL, it initially consisted of less than 10 teams. Specifically, 8 teams until 1961. During the 60s came a massive expansion and in 1970 the league already involved 17 teams. The expansion took place mainly on the West Coast. 20 years later, another 10 teams were added.
This expansion brought league to large and major markets such as Florida, Texas or the Midwest. In 2004 the number stabilized on the current number of 30 teams.
One of the teams is based north of the border in Toronto, Canada.46
S ourc e: NB A av erage f r anc his e v alue 200 1 -2 020. I n: S t at is t a [ online] [ c it . 05. 03. 2 020] . A v ailable f r om:
ht t ps : / / www. s t at is t a. c om/s t at is t ics / 193442/ av e rag e -f r anc his e -v alue -in -t he -nb a-s inc e- 2000/
46 NBA.com | History - NBA.com. In: [cit. 03.03.2020]. Available from: https://www.nba.com/history Figure 13 - NBA Teams Average Franchise Value from 2001 to 2020
30
NBA is currently in great financial condition. League revenues are growing at a steady rate every year. The average value of the teams increases even more significantly.
On average, the value of each club has increased tenfold over the past 20 years.
The figure 8 shows that a significant upsurge occurred in 2015. Despite recent sports failures, the most valuable organization is New York Knicks, whose value is
$ 4.6 billion.47 There are seven NBA organizations among the world's 50 most valuable teams in 2019. That means one more than last year.48 The league is doing very well even when signing sponsorship contracts. Between the seasons 2016/17 and 2017/18, sponsor’s money soar by 30 %.49
Figure 14 - NBA Most Active Sponsors
S ourc e: CHI P P S , William. Spons ors hi p S pendi ng on Th e NB A Tot als $1. 12 B illion I n 2017 -20 18 S eas on.
I n: [ c it . 05. 03. 2020 ] . A v ailabl e f rom: ht t p: / / www. s pons ors hip. c om/ A bout / P res s -Room/ S pons o rs hip - S pendin g-O n-Th e- NB A -Tot al s -$1-1 2-B illi. as px
Figure 10 lists the most active global NBA sponsors and their share within their respective category. Most often, the NBA is sponsored by companies in the industrial, automotive or fast food industries.
47 The Business Of Basketball. In: Forbes [online] [cit. 05.03.2020]. Available from:
https://www.forbes.com/nba-valuations/list/
48 BADENHAUSEN, Kurt. The World’s 50 Most Valuable Sports Teams 2019 [online] [cit. 29.02.2020].
Available from: https://www.forbes.com/sites/kurtbadenhausen/2019/07/22/the-worlds-50-most- valuable-sports-teams-2019/#19eda492283d
49 CHIPPS, William. Sponsorship Spending On The NBA Totals $1.12 Billion In 2017-2018 Season. In:
[cit. 05.03.2020]. Available from: http://www.sponsorship.com/About/Press-Room/Sponsorship- Spending-On-The-NBA-Totals-$1-12-Billi.aspx
31
In the next few paragraphs, significant NBA marketing milestones will be introduced.
Those ones designated for the domestic market and other ones for the audience in abroad as well.
From the early beginning, the league decided to host the All Star Game. In addition to the game itself, the skills competition were added in the 80’s. Foremost the Slam Dunk Contest and the Three Pointer Contest. Both immediately have gained great reputation. At present, the All Star Game lasts throughout the whole weekend and the number of skill competitions has expanded and include celebrities.
An important milestone in sports and economic development for the NBA was 2001 and the establishment of the NBA Development League (NBDL). The purpose of the league is to enable player and management development, but also bringing the NBA closer to smaller markets where NBA team never would be based (Idaho, Dakotas).
Since 2020, the first international team from Mexico City will expand the league.
In 2004, the League founded the NBA Summer League (NBASL). This summer tournament again serves primarily for players development, especially for those fresh ones, who is coming to the league right from the universities. But on the other hand, it attracts new spectators. Originally played only on the campus of the University of Las Vegas in Nevada, but later emerged in other sites such as sunny Orlando in Florida. Moreover, the tournament also occasionally includes special invited teams.
The Chinese national team also recorded several participations.50
Since the 70s, there have been several women's basketball competitions in the US, but due to economic problems, none of them have been able to sustain for a long time.
In 1996, the NBA Board decided to set up its own Women’s National Basketball League (WNBA). The goal was obvious, to attract more women to basketball.
Another marketing program of the league is NBA Cares. The aim of this program is to bring children to basketball, but also to help them to achieve education
50 JOZSA, Frank P. The National Basketball Association - Business, Organization and Strategy [online].
World Scientific Publishing Co. Pte. Ltd., 2011 [cit. 03.03.2020]. Available from:
https://ebookcentral.proquest.com/lib/vsep/reader.action?docID=731260&ppg=14
32
and provide them medical shelter. NBA Cares has several subprograms such as Hoops for Troops or NBA Fit and, besides children, targets on soldiers, veterans and a healthy lifestyle.51
Table 1 - NBA Cares Subprograms
Name of the program Target Group Mission
Hoops for Troops Soldiers, Veterans Recognizing members, impact communities
Mind Health Youth, Parents, Coaches Emotional well-being NBA Fit Everyone Physical and mental well-being
NBA Green Fans Generate awareness and funds for
protecting the environment NBA Math Hoops Children Learn fundamental math skills through
NBA board game
NBA Voices Communities Address social injustice, promote inclusion in communities
S ourc e: NB A . c om, Creat ed b y aut hor
NBA also thinks of its TV and online viewers, so if the fan does not have access to television, it offers the possibility of subscribing to the NBA League Pass, which allows to watch the NBA to the extent of the chosen package. That is nothing extraordinary, however, exclusive is the possibility of watching every single game from your home like from the courtside seats if you have virtual reality (VR) technology.52 Particularly young people could be attracted to the game through the videogames.
NBA realized the rise of esports and as the first of the Big 4 launched official esports league, called NBA 2K League.53 The esports has great marketing and economic potential. For instance, a 2016 survey showed that the combination of traditional sport brand and esports videogame increases brand interest.54
51 NBA Cares. In: [cit. 06.03.2020]. Available from: https://cares.nba.com/
52 NBA VR and MR. In: NBA.com [online] [cit. 05.03.2020]. Available from: http://www.nba.com/xr
53 League Info. In: NBA 2K League [online] [cit. 05.03.2020]. Available from:
https://2kleague.nba.com/league-info/
54 U.S. eSports and sports fans engagement with brands 2016. In: Statista [online] [cit. 05.03.2020].
Available from: https://www.statista.com/statistics/630744/sports-and-esports-fans-engagement-with- brands/
