The Enduring Appeal of Losers

This is not the greatest time of year for a North American sports fan. Apart from March Madness, there is little to get excited about.

During this weekend lull, I’ve taken some time to dive into some great pieces how franchises build their brands. Glenn Rifkin’s 1999 article in Strategy + Business Magazine is a gem. It talks about the enduring appeal of the Boston Red Sox, who at the time were eighty one years into a World Series Championship drought.

Rifkin cites a great quote from famed novelist John Updike who neatly framed a key part of the Red Sox brand proposition: "All men are mortal, and therefore all men are losers; our profoundest loyalty goes out to the fallible."

Updike wasn't writing as a marketer, but was certainly on to something. Everyone loves a winner, and whenever a team is on a hot streak, there is plenty of room on the bandwagon for fairweather fans to jump aboard. But the perennial losing team is embraced by a different kind of fan mentality -- the sucker for punishment, the type that values loyalty and commitment over the ephemeral ecstasy of championships.

Now that the Red Sox have exorcised their World Series Demons in 2004, and again in 2007, perhaps their brand has morphed into a different animal. But one club in the majors still appeals to this specific kind of self-loathing fan -- the Chicago Cubs.

When the 2010 season begins, the Chicago Cubs will play their 102nd season since winning the World Series in 1908. Yet they remain one of the strongest, most recognizable MLB team brands.

Perhaps the Cubs, similarly to the Red Sox, consistently fill the fan void that other teams are not willing to occupy. The downtrodden, unthreatening, lovable loser. To come tantalizingly close, year in, year out but to fall short is the Cubs legacy. Or as Abram Sauer puts it, the Cubs' brand is "the uncomplicated formula of hope and disappointment, and more importantly, the repetition of this cycle to the point of comfort in the routine."

Perhaps this is it. The Cubs put their fans through the wringer, teetering on the tantalizing fulcrum of ecstasy and heartbreak, yet how often do you hear of a Cubs fan switching their allegiance to the cross town White Sox? Political commentator George Will famously described Cubs fans as "ninety percent scar tissue." Why, you could reasonably ask, would anyone expose themselves to such emotional torture?

I think it's because scarcity creates value. Any bona fide Cubs fan realizes that there'd be fewer places in professional sports that would break into the throes of unbridled jubilation like the the North side of Chicago after a Cubs title. I'm a Twins fan, but I think a Cubs World Series win would warrant a trip to the Windy City.

What do you think? What is it about the Cubs Brand that makes it so powerful?

Charting Your Team's Position

The NFL season is back in full swing, accompanied by all the obligatory hoopla. I always feel sorry for the MLB clubs at this stage -- the media focus shifts to football just as the baseball season is reaching its critical stage.

Watching a host of both college and pro matches last weekend, it struck me that team brands are typically characterized by their past. For example, in the NFL the Packers, the Steelers and the Cowboys represent a distinct ethos that has allowed them to become “Loss-Proof” over the years. The same rings true for college teams like Michigan and Notre Dame –- they pack their stadiums and command the national spotlight because of traditions established often long before their players were born. But for weaker team brands, staring in the rear view mirror is not the only way to foster a stronger emotional connection between fans and franchise.

Historically sports teams have been lazy about determining their market position in relation to other franchises. Sure, all teams in a league play the same sport, but that’s not to mean they should represent the same things. Target and Wal-Mart are both big box retailers, but in the mind of the customer they represent two distinctly different ideas. Target appeals to the fashion savvy “frugalistas,” while Wal-Mart targets the family-oriented consumer, looking to save money on living essentials.

The diagram above shows how teams of different leagues and sports live in the minds of fans. This is a rude and crude representation, but it’s largely the way these teams are thought of by the sports community at large. This diagram is also useful in assessing the brand strength of any team. If it’s hard to position your team on this chart, chances are, it's not a particularly strong franchise brand.

If a franchise doesn’t embody a culture and a set of values independent from performance, its level of popularity will be at the mercy of its number of wins. And simply seeking to win is not enough. With salary caps, draft picks, and scholarships used by leagues to level the playing field, this is not a strategy that will provide a competitive advantage.

What are your thoughts? How can teams better represent a compelling idea independent from winning?

Building A Loss Proof-Brand

Not before time, but here is my presentation from last year's Sport Marketing Association's 6th annual conference.

I have made some tweaks to to the content and style to make it more Slideshare friendly.

Enjoy!

Building And Leveraging A Loss Proof Brand

View more presentations from Charlie Quirk.

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.

The Ownership Prism

In any given franchise, team ownership faces several categories that require tactical decisions. Whether the team is privately or publicly owned, without the realization that all operations must be streamlined to achieve a consistency of purpose, it is very easy for them to pull the franchise brand in separate directions.

So a team's owner must handle each of these responsibilities from a unified strategic platform. A team's Loss-Proof Brand should become a prism through which all decisions are viewed. But rather than refracting the different streams of light, the Ownership Prism acts as a strategic filter so that all franchise operations are on the same wavelength.

Alternatively, if managerial decisions are made in a piecemeal, ad-hoc fashion, the franchise brand will be wishy-washy with no distinct or permanent meaning. So if a new owner takes the helm of a franchise, their first responsibility should be to determine precisely what their Loss-Proof Brand is. Once articulated, all franchise operations should then pass through this prism to ensure they are "on brand".

For instance, if the Chicago Cubs' Loss-Proof Brand is "Hope and heartbreak for the whole family", it would not be "on brand" to feature scantily clad cheerleaders between innings on game day. This would detract from a father and son admiring the storied ivy covered outfield walls. If the Yankees' brand is "The brazen, big city bullies", it would not be "on brand" for the Yankees to start reducing their spending war chest in a new-found spirit of fairness. Like it or lump it, that has never, and never will be the Yankees' brand.

Ultimately strong brands are as noteworthy for what they don't do as much as they do do -- after all, you can never appeal to everyone, all of the time. It is only by defining and staying true to an aspirational Loss-Proof Brand can franchise owners add enduring value to a team.

Building A Loss-Proof Brand

In most international sporting leagues today, governing bodies enforce salary caps on how much teams can pay their playing roster. Furthermore, teams who are performing badly often receive priority draft picks in order to help them rebuild for the future.

Each of these points is counterintuitive to how conventional businesses operate. By penalizing the best performing teams and providing concessions to the worst, administrative bodies are punishing success and rewarding mediocrity.

So any team hoping to build its brand as an unconquerable dynasty like the Boston Celtics in the sixties or the Chicago Bulls in the nineties is rolling the dice. Even if a team does win a championship with a certain set of players and coaches, management then faces the tough task of re-signing personnel whose individual stock has risen by association, not to mention giving other poorer performing teams a head start in talent renewal.

As such, appeal based on the mere functionality of winning games is a crapshoot. Instead, the key is to ensure a team remains popular even when they are losing - to in effect become "loss proof." This is a critical strategic consideration that franchise management must be aware of.

So rather than spout tired soundbites about aiming to win championships with their players acting as role models in the community, teams must become more creative in managing their reputation. Just as a conventional corporation fights commoditization to foster brand loyalty, sporting organizations must seek to engender non-functional, irrational loyalty amongst their fans and stakeholders alike. This loyalty is only achieved by gaining a clarity of purpose and direction that resonates regardless of on-field performance.

A team brand like the New York Yankees has been very consistent through its history. Love it or hate it, the Yankees' brand has always meant the same thing. Since Babe Ruth, the "Bronx Bombers" have been famous for unapologetically poaching the big name stars in their quest for more world series triumphs. In a sentence the Yankees' brand could be summed up as "the brazen, big city bullies". Like the Brazilian national soccer team, Manchester United or the LA Lakers, this bullish "win at all costs" brand message appeals to sports fans that love to celebrate triumphs.

In a different vein, some team brands have become just as strong as the above franchises for reasons other than a crowded trophy cabinet. The Chicago Cubs brand has become iconic by frequently promising a Disney-esque cinderella story then stumbling at the final hurdle. The Cubs' brand might be "Hope and heartbreak for the whole family". Similarly, the Green Bay Packers brand, as the only publicly owned franchise in the NFL, has resonated widely because the franchise is seen as remaining loyal to the spirit of the sport. In an era where cash flow and facilities are the only real ties to a home city, the Packers' brand might be "The unpretentious blue collar spirit of the midwest".

Having a consistency of meaning and certainty of purpose makes or breaks the brand of all sporting franchises. It is only by living and breathing a central guiding principle that any fan, sponsor or opposing fan can articulate what a team stands for with any real accuracy. Without a Loss-Proof Brand, a franchise's popularity will fluctuate year to year based on how they are performing on the field. And with administrative bodies seeking to curb financial inequity, this is a tactic fraught with danger.

A Loss-Proof Brand weeds out ambiguity and creates a franchise that win or lose, fans, players and sponsors can rally around.

Winning Games Is Not Tantamount To Building A Strong Team Brand

In today’s era where most sports governing bodies enforce regulations like salary caps and concessional draft picks designed to level the playing field, building a focused brand independent of team performance is more important than ever. Unlike the certainty of a McDonald’s Big Mac that tastes the same in Istanbul as it does in Seattle, a team’s performance will vary from year to year. So any franchise hoping to position its brand as a dynastic juggernaut like NBA teams the Boston Celtics of the sixties or the Chicago Bulls of the nineties will face an uphill battle.

As the Baseball season begins, this is a topical issue. The Chicago Cubs have proven that winning is not at all necessary in building a strong brand. Not having won a world series since 1907, the Cubs brand has been consistent throughout different eras – it is the uncomplicated formula of hope and disappointment, and more importantly, the repetition of this cycle to the point of comfort in the routine. This resonates so strongly with fans because it draws on the empathy inherent in humans that causes us to root for the underdog. Knowing this, the rumor mill has it that Cubs owners are secretly afraid of winning a world series because the brand is a star off-field performer largely because it is a mediocre on-field one.