Sunday, September 21, 2008

Competition Between "Traditional" and "Extreme" Sports

According to a recent SGMA International survey, the popularity of some extreme sports is much higher than many traditional sports. To compete with these adrenaline-sports and stay relevant to young fans, a traditional sports league’s general strategy should be to create a more exhilarant experience. The league should add visual appeal, integrate youth interests and youth brands, and create “extras.”

Many adventure sports—such as surf competitions, snow boarding, and mountain biking—are geared toward television audiences, since watching these events in a stadium setting is difficult. To compete for television viewers, a league should ramp up the visual thrills of its sport. On-screen score boxes with cartoons can add excitement, while virtual confetti and animated dueling robots are more likely to keep young people interested and engaged.

Visual appeal is not limited to television audiences. In-stadium, a sports league can create thrills by adding special-effects lighting, improved sound systems, and video boards in high-definition. The new cricket league, Twenty20, has gone further, changing uniforms, adding firework displays to the stadium experience, and dressing cheerleaders in sports bras.

Beyond visual appeal, a sports league needs to integrate youth interests and brands to compete against adrenaline-sports. By creating a presence on the Internet or in the world of video games that allows for a high level of interaction, leagues can construct a social milieu that appeals to a media-savvy generation while also branding their sport as “cool.” The NBA’s creation of a headquarters in Second Life is just one example of how a league can use online communities to generate interest.

And, although it’s understandable why some leagues choose large, unglamorous corporate sponsors (i.e. the NHL and Scotiabank, and MLB and Bank of America) these sponsors can put off young viewers. Better sponsorship choices include Sony Playstation and Mountain Dew: the sponsors of kiteboarding, wakeskating, longboarding, and other non-traditional sports.

Finally, adrenaline sports often emphasize style over statistics. For that reason, it’s important for a league to adopt events, stunts, or individual performances outside the scope of regular competition. Consider the slam dunk contest: this NBA competition allows participants a forum for individuality and style. It also appeals to a basketball subculture by showcasing moves and behavior not generally seen on the court. Similarly, all-star games, three-point contests, and field-goal competitions highlight the individual athlete over the team and can help leagues compete with sports that rely on freestyle play, tricks, and an alternative image.

Though a traditional league would benefit from a more exciting and relevant fan experience, it should be wary of upsetting fans who rely on the sport’s history and traditions. To avoid becoming another XFL, a league should court youth viewers without resorting to major format shifts, gratuitous behavior, or iconoclastic rule changes. If a traditional league can adapt to changing interests and technologies without isolating its core fan base, the league can compete with adrenaline-sports and stay relevant to a new generation.

[This post derives from my entrance essay to the Warsaw MBA program, originally written September 2007.]