Formulating A Loss-Proof Brand

I am often asked what makes a great franchise brand. While the answer may vary a little depending on the sport, a great franchise brand is one that is “Loss-Proof.”

In sports, winning championships is often seen as tantamount to building a franchise’s brand. But salary caps and draft picks are designed to level the playing field, so the window to win a title is really only a couple of years with the same playing roster. This difficulty of winning is not lost on the players -- the litmus test for greatness is not only impressive stats but also the fullness of the franchise trophy cabinet.

Yet despite the stakeholders' quest for championships, sometimes the appeal of a team doesn't waiver simply because its on-field performance does. Just ask any Chicago Cubs fan. The Cubs have not won a World Series for over 100 years, but they still attract fans the world over by representing something that transcends performance. The Toronto Maple Leafs may not have won a Stanley Cup since 1967 but are still the most valuable NHL franchise according to a 2006 Forbes Magazine study. The Dallas Cowboys and the Pittsburgh Steelers are two NFL franchises that most often top popularity polls amongst fans, even when their teams aren’t performing well.

So how does a team become Loss-Proof? The model above depicts a way to holistically assess and improve the strength of any team brand.

Firstly, unless it is a new franchise, no brand operates from a clean slate. No matter the history, there will be some names and traditions that have become synonymous with the franchise. These should be highlighted and embraced as they cannot be replicated by other teams. However, a team must be careful not to become too nostalgic for the good old days -- sometimes management can lose focus trying to replicate past glories rather than focusing on the future. *

Secondly, the franchise should conduct an exhaustive study on how to better connect with their fans. Not just any fans, but their fans -- the living breathing fan archetype of their home market. The mindset of a Wisconsin cheesehead will be vastly different to an oil tycoon in Dallas so the in-game experience and marketing strategies should reflect this. Digging deeper, the franchise must consistently research the cultural underpinnings of their market and highlight why the team is proud to call it home. A franchise that shows love for its home market is more likely to be loved in return rather than both parties behaving like it’s a marriage of convenience.

Finally, beyond winning a championship, ownership must be able to articulate the hopes and dreams of the franchise. Every owner wants to win titles with their players as upstanding citizens of the community, but if they want to become “Loss-Proof” they must aim higher. Rather than just participate in positive PR efforts sanctioned by their league, teams should aim to bring a fresh and unique perspective to making a difference. Whether it’s cleaning up the environment or developing the sport at grass-roots level, a team must have some worthwhile goals beyond winning. A good example is currently being conducted by Spanish soccer club Barcelona FC. Rather than sell the advertising space on their shirt to the highest bidder, the Catalan giant donates €1.5 million annually to support UNICEF programs, also promoting the charity for free by wearing the UNICEF logo on their shirt.

As Los Angeles Angels of Anaheim owner Arte Moreno puts it, “Even the best teams don’t win every game, you have to give your fans a reason to come to games even when you are losing.” Like conventional “brands," sporting teams today have every opportunity to transcend their functional benefit and provide fans and stakeholders a reason to rally behind. By embodying a set of values worthy of admiration, teams can gain a competitive advantage over competitors who focus solely on the short-lived and unpredictable popularity of winning.

*A caveat though, some teams make the mistake of staying stuck in the past, emphasizing the glory of yesteryear. A good recent example is the Chicago Bulls. Following the retirement of Michael Jordan, the Bulls have struggled to define what their brand represents.