What Does Recovery Look Like For the Sports Industry
An Open Letter from Sports Innovation Lab President Josh Walker
Over the past few weeks, it’s been hard to ignore the fact that when live sports return things will be different. Very different. Our clients have asked when we think sports will come back, and there is a great deal of uncertainty about what we can expect when they finally do. In recent weeks, some aspects of sport’s return have come into focus. This crisis will fundamentally reshape how the sports industry operates and generates revenue. I believe that. We’ve tried to organize what’s changing and how the industry should adapt below. I hope it’s helpful as we all start to look to the future and plan for what’s coming next.
Phase I: Accept the Fluid Fan as the new normal
We’ve all been reminded of the role sports plays in our lives. The welcome distraction it provides; the togetherness it offers. It’s sorely missed at a time we need it the most. Fans are adjusting to this time by watching other content and doing other activities. We must accept that sports fans are not homogeneous. If we are all sports fans, then fans, like our broader population, come from very different backgrounds and have very different levels of economic security and digital access. Therefore, there is no one stop solution to reaching or engaging fans. The days of relying on one place (the stadium) or one type of media (broadcast) are over. The Fluid Fan is here. We’ve written about this new age of sport and your organization must accept that the Fluid Fan, not the die-hard sports fan, is the path to growth for our industry.
Phase II: Understand Fluid Fan Behavior
Fluid Fans require that we focus on specific fan behaviors not just "fan engagement." If we design for fan behaviors, we will seek out new types of partnerships and build new kinds of capabilities into our organizations. We will hone in on the behaviors that drive revenue. This will be critical as we optimize for economic recovery. To execute in this new age of sports, we must follow some simple rules: 1) don’t focus on demographic segmentation 2) focus on fan behavior. Use this time to gain consensus within your organization on what fan behaviors matter most. We’ve built a Fluid Fan Assessment to help start the conversation with your teams.
Phase III: Focus on Media Convergence
The organizations that have been able to respond quickly with virtual sports entertainment or who are aggressively planning to resume play with empty stadiums are organizations who have developed strong digital talent. What does this mean exactly? It means these organizations haven’t invested in esports, dabbled in automated production, or experimented with virtual reality. They’ve identified which behaviors are most important, and they’ve made these initiatives core to their operations. They know how video chat, advanced analytics, interactive polls and games become part of the live production. It’s not a sideshow, an alt stream, or shoulder content. It’s part of the content. It’s part of the fan experience. We’ve written about media convergence and you need to be actively planning on hiring and reorganizing your teams to develop this skill. How do you start? Sports Innovation Lab is developing a Fluid Fan Studio Strategy. We believe this type of team will help the rest of the organization evolve faster.
COVID-19 didn’t change the rules. It brought unprecedented urgency to act. This kind of jolt to the system can only result in change. Expect organizations to work hard now to diversify revenue streams, generate new experiences, and capture a new kind of fan loyalty — one based on love of experience, not generational commitment.
If, like Sports Innovation Lab, you believe that sports will come roaring back when the time is right, then the time to act is now. It’s notable that in this environment, the NBA has created a new role of SVP of Fan Marketing, NASCAR has moved quickly to bring their iRacing series to broadcast television, Drone Racing League added fantasy sports, and the Bundesliga is using esports and their athletes to engage with fans at home. We are moving forward.
According to the most reliable sources, it appears we are still far from out of this global pandemic. It is still prudent to treat your teams and partners with compassion and remember we are all balancing new challenges that come with this very real public health crisis. That said, it is equally important to mobilize your team and start putting in place your plans for when this ends and you’ll need to move quickly. To that end, if we can be helpful, reach out.
