Why the Team’s Bot May Be the Most Important Fan Touchpoint You Have

Chatbots in sports were once just glorified FAQs.

For a while, that’s where they remained. A quick way to figure out the clear bag policy for the game. As the underlying tech improved, the bots became more skilled; they stored more knowledge, understood a bit more nuance, and became more interactive.

But that was all the 1.0 era. Call it the first quarter. We’re well into 2.0 now. They can still do everything the old bots did, answering any question a fan may have on game day, from where the vegetarian food options are located to what time the gates open. The new era is more strategic, more aligned with business objectives, and more woven into every service and revenue-generating department in the organization.

This is the world that Bill Bailey navigates now. As large language models and the ChatGPTs of the world introduced hundreds of millions to unimaginably sophisticated chatbots, the remit for these bots and highly trained ‘agents’ extended from gameday ops to, well, everything. As Chief Revenue Officer at Satisfi Labs, which runs chat agents for about 70% of major league teams, Bailey sees the evolution playing out firsthand in the conversations he’s having with clients and prospects, and the use cases Satisfi is bringing to life.

“Our meetings with our clients shouldn’t be about content. We have that,” said Bailey, who has been with Satisfi Labs since 2019, following stints at sports-focused data management company SSB (acquired by KORE, now part of Two Circles) and the New Orleans Hornets. “It should be about campaigns you’re running. Our agents run campaigns. And so all we need to know is, where are you in your sales cycle? Are you launching renewals in the next month? Okay, let’s start getting the renewal campaigns going. Let’s start making sure I have the latest nudges and I’m pushing people to renew in the conversation, whereas a month ago I wasn’t because it was too early.

“So our conversations have shifted now to be much more strategic and fun about your business. And we’re just an extension of your marketing arm. Not about, ‘hey, we’re not answering where a hot dog is; what should I say?’ Those days are gone.”

One of the biggest accelerants behind what Satisfi’s agents can do, and the generative AI space in general, is the infusion of data. The platforms are connected to data sources, pulling in what a team knows about a given fan (with their authentication and permission) and delivering the level of personalization the modern consumer now expects everywhere from Amazon to Netflix to ChatGPT. And now from their favorite team’s bot.

The fan experience with AI is getting closer to that with a human. A service rep or salesperson knows what tickets you’ve purchased, what level of experience you prefer, whether you’re attending games as a parent with kids or a sales executive with clients, and even what food allergies you have. Bringing a profile and context to the conversation is what separates this era from the last. The capability is ready. But teams are still figuring out which use cases to deploy and hand off to their computerized colleagues.

“If you tell me some more things, like they’re a suite holder or they have a season ticket, then I can do even more,” said Bailey. “All the way to, if you have a data warehouse and the desire is there, we can take that identifier you gave me and we’ll go get what fan profile they belong in, what segment. Have they renewed yet? Things like that.

“So there’s lots there. That’s the next frontier. We’re ready for it. It’s more of the business decisions and user stories being developed by our clients as we speak.”

While uber-personalization is enticing, and often welcomed, there is a fine line between knowing about you and knowing so much about you that it feels creepy. Contextual awareness, like knowing which entrance you scanned in from and pointing you to the nearest restroom, is cool and helpful for many, but concerning for others. It seems good that, because the AI knows you have small kids, it will recommend you stop by the children’s playground outside gate 120, but maybe not so good when it knows their names and hopes Jacob has fun on the merry-go-round.

The capabilities to connect all these data sources are largely there, as Bailey noted, but there’s a human element to introducing this to fans.

“[It] stops short of saying, ‘Hi, Bob, how’s your wife, Jennifer?’ That kind of personalization is available,” Bailey explained. “A lot of people aren’t really ready for that. I’m not sure I even am. That’s the creepier part of it.”

Personalization, fan context, and official affiliation with the team may be necessary parts of the moat for team bots. Because the competition to be the first stop for any query, sports team-related or not, is fierce. More of consumers’ everyday queries are migrating from Google, which at least pointed them to the team’s official site, to whichever LLM they favor. So if a fan is planning their gameday experience, isn’t their first instinct to ask ChatGPT or Claude or Gemini or Copilot or whomever?

That’s not hypothetical. Bailey said teams and leagues are already concerned about web traffic being down significantly, with those queries going to ChatGPT and other models. Still, there are real advantages to having those conversations with the team or venue’s official bot. One is the personalization already discussed, bringing your fan profile and context to the table. But the most important is trust. Skepticism follows any LLM conversation that depends on getting the facts right. The generic LLM may give you a confident answer about the parking situation and the outside food and drink policy, but can you really trust it?

The story is still playing out. Getting burned by a confidently wrong answer may well send some fans back to the source, but old (and new) habits die hard. Plenty of people will tolerate something short of perfect accuracy for the convenience. Maybe the future is reliance on a multitude of specialized, trustworthy models. Maybe it isn’t. But it’s on the official bots, and the platforms powering them, to convince users through a decisively better experience to ditch their daily LLM app. No easy task.

“It is my belief that as those people find out you can get the wrong answer from those models, they go back to the trusted source,” said Bailey. “And our clients are reminding their fans as best they can: we’re the trusted source, come back to us. And by the way, with the help of Satisfi, our experience is very much like ChatGPT when you talk to us. But you’re talking to us.

“So it’s still that really nice, robust conversation, that warm conversation, that intuitive experience — but you’re having it with me, not with some model that scraped the interwebs and God knows what Reddit articles it was referring to.”

Accuracy and trust in information are compelling reasons to use the official team bot. But information is a commodity, and the large, well-capitalized LLMs can close any margin there. So it’s on the teams and platforms like Satisfi to stay a step ahead, doing the things the generic LLM platforms won’t or can’t do as well.

Commerce and service actions are part of it. Paired with the profile connections discussed earlier, an official agent can take a fan from question to ticket, concession, or merch purchase in a few beats, where a general model could only get there with a lot of friction. Bailey brought up something else, though: a novel feature Satisfi introduced with the NHL, which ChatGPT isn’t going to prioritize or invest in.

“…Let’s connect a live feed of every NHL game. And now there’s a game companion module that’s your companion while you’re on the couch watching it, or in the building — but anywhere you are watching the game,” said Bailey, who also noted the bots are trained on the rules of hockey. “And you can say, ‘Whoa, what just happened?’ Because often the play is fast. The referees don’t always stop like an NFL does and announce what happened. It can be quick, you missed it. But what was that? Oh, here’s what happened. That was icing by so and so. That was a goal by so and so. And then, ‘Well, what’s icing?’ And now they’re talking about what’s icing and offsides. And you can actually have a whole conversation about that with our agent today, with our NHL games.”

This isn’t just a traffic and O&O (owned and operated) play for teams, though. Because when you have access to a frictionless, always-on agent that never gets impatient and will assuredly not judge you for a dumb or odd question, you’ll ask anything and everything. And that qualitative and quantitative data is often worth more than any survey can hope to deliver.

It’s not what fans say they do. It’s the actual path they take, including what stopped them and what pulled them through. It can bring up ideas or questions the team never thought of.

Said Bailey: “I often say to our prospects: don’t think of any questions going unanswered. Think about any questions going unasked. And the Predators here in Nashville (NHL), where I live, are a client, so I’ll use that as an example. If they weren’t a client — how important must a question be before I’m going to pick up the phone and call the Predators? That must be really important, because otherwise I’m just going to guess.”

Bailey gave an example from a college athletics client and its softball program. Softball is a non-revenue sport there, admission is free, and fans kept asking the same thing: how much are tickets? That was enough to start the school rethinking whether they should be free at all. Questions are currency. And an official bot collects them at a volume no other channel comes close to.

The passive benefit is ingesting all those conversations. The next step is pre-empting them. Bailey talked about journeys built on a bank of past conversations and outcomes, where the AI learns when and how to ‘nudge’ a fan toward something. Because your ChatGPT is always eager to keep the conversation going, and Satisfi’s bots take a similar ‘and then’ approach. The underlying goals can vary, from getting ahead of your next question to putting on a more purely promotional cap.

That’s the spectrum of nudges. Some come out of what you’re already doing. You’re asking about tickets for you and some friends, and the bot points out a group threshold with experiences and savings attached. You never would have asked and otherwise never would have known. Other nudges come out of what the team’s marketing is prioritizing. Bailey’s example was Korean nachos, a new menu item nobody knows about, worked into a conversation that started somewhere else entirely. Also a nudge, just one coming more from a sales lens than a service one.

That’s the revenue side of being proactive. The service side is quieter, and probably more interesting.

“I think in more and more proactive pushing of that conversation,” said Bailey. “That’s the next level. I know you have a ticket to the game tomorrow, so I’m going to go ahead and give you some information. I’m going to try to start a conversation. Today, that’s in the form of the know-before-you-go emails that people send out, and we’re buried in those emails that say, here’s some information, if you have more questions, ask, click here.”

Bailey continued, discussing the next generation of Satisfi agents and where the space is headed: 1:1, contextual, personalized conversations and services that augment what a resource-limited staff can cover.

“Our newest agent we’re releasing now is a season ticket membership agent, where the endpoint to that agent is specific to that season ticket holder,” he said. “So I can start to know where they sit. I can start to know who their rep is. I can text it and ask questions. Someday, add a ticket to my account because my son’s coming tonight — let’s get a ticket close to me. Things like that. So that’s where we want to head with these, because that’s where the conversations are going.”

Chatbots in sports now reach far deeper into the business than the concessions and venue policies of the earlier era. The conversations are rich with fan profiles, personalized offerings and responses, and whatever campaigns and promotions the team is running that week. Teams and their platform partners need to keep minding the moat, finding the jobs where they can beat the generic models outright, while balancing the service and sales pull on every conversation.

But the chatbot should now be treated as a channel. Heck, it may belong near the top of the list, above touchpoints teams have been resourcing for years, because of how much the agents now know and how much they can do. More sales, better fan experiences, and a running record of what fans actually want. All because there are more conversations happening, and an operation built to analyze and act on them.

The battle of the present day is over questions. Google owned them for years. Then ChatGPT took a big bite. Now, when a sports fan wonders what time the gates open or what just happened on the ice, they have options. Where will they go?


WATCH OR LISTEN TO THE FULL INTERVIEW WITH BILL BAILEY

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The Technology Bets that are Transforming the Sports Industry Today

What are the common experiences to which everyone — like, every single person — can relate? The ultimate connective tissue between you and any random stranger you may encounter.

There’s the local weather, food you like to eat, and, in some form or fashion — sports. Maybe you played a sport growing up, you or your friends or family are a fan of a team, your son or daughter plays a sport or their friends do, you keep an eye on the former classmate who qualified for a national team, your coworker tells you about their fantasy team or bets — the total addressable market for sports can really be, well, just about every human on the planet.

And in the past couple of decades the scale and opportunity for the business of sports reached a new echelon, a new era where startups and entrepreneurs attracted the attention of investors who had previously not thought of sports as a ticket to the massive returns venture capital seeks. There’s never been a better time to have big, innovative ideas in the greater sports industry.

Wayne Kimmel, Managing Partner of sports-focused venture capital firm SeventySix Capital, is one of the leaders helping to foster this dynamic period in the sports industry. Listen to Kimmel speak and you can feel the energy he has for ambitious ideas and individuals. It’s why Kimmel and SeventySix have supported, and continue to fund, businesses that want to do big things in the ever-changing and ever-growing field of sports.

“We started thinking about [bringing venture capital to sports] and we’re like, ‘Wow,’” said Kimmel. “Every person in the world falls into one of these buckets. You may hate sports and you may be the biggest orchestra fan in the world and you never watch a game or anything, but then when your granddaughter’s out there on that gymnastics mat, you’re focused, right? You’re like, ‘Oh my God. Or you’re your grandson is playing baseball or your son’s the star on a basketball team or something like that — all of a sudden that is your life and that’s where you’re going to spend a lot of money.

“So we see all that [and] we’re like, Well, this is a world that we want to be in and we started looking around, like, who are the investors? Who’s backing the entrepreneurs who are using technology, using data, using analytics to make it better? There’s not a lot of us, and there still aren’t a lot of us out there investing across this right now. But it’s such a big opportunity and the dollars around and in this multi-trillion dollar sports media entertainment industry is big and getting bigger every single day.”

Kimmel recognized the opportunity certainly got bigger on a day in 2018 that will remain immortalized in US sports — the day the ‘PASPA’ law was struck down, opening the pathway for states around the country to legalize sports betting. In my interview with him, Kimmel recounted how he took action right away, knowing the time was ripe for companies to capitalize on this new opportunity to engage and activare sports fans, as well as buttress the burgeoning sports wagering industry. SeventySix supported the growth of the Vegas Stats and Information Network (VSiN), which had the grandiose vision to become the CNBC of sports betting (they largely have). Kimmel also came into contact with Matt Holt, who saw a need in sports betting that someone would have to cover and had the ambition that Kimmel so embraces. I’ll let him tell the story.

“We wanted to get behind entrepreneurs who want to do the big thing in the present right now, we constantly still want to look at entrepreneurs, we still want to get behind entrepreneurs who are pushing things forward and doing the next thing…,” said Kimmel, who founded SeventySix Capital in 1999. “One day,(VSiN founder and CEO) Brian Musburger introduced me to Matt Holt, who’s the CEO of IC360 now. [IC360] is the company that makes sure that everything’s on the up and up across the whole sports betting industry today.

“Matt was a host at VSiN at the time and doing some other things, and he comes off [the air] and says to me,’ I’m going to start this company. It’s going to be an integrity business to make sure that everything’s on the up and up across sports betting — every single operator, every single regulator, every single team, every single league, every single conference is going to be my client. And I’m like, ‘Matt, I’ve heard entrepreneurs talk like this before, but you don’t need everybody. You can just get a small percentage of them and we’ll be pretty successful.’ He goes, ‘No, we’re getting everybody.’ Well, you know what? He’s done it.”

Not only do issues like competitive and statistical integrity scale across the entire sports ecosystem, but the performance side of sports can also penetrate every level — from the multi-millionaire GOAT to the rec league warrior to the peewees and preteens. So it makes sense that Kimmel and SeventySix Capital also have eyes on tech that can help the athletes themselves. There is a democratization in technology now, where nearly everybody has internet access and a connected mobile device, and that universal access increasingly applies to the latest and greatest tech in sports performance. Because businesses recognize there is demand and amateur athletes are increasingly willing and wanting to get this tech for themselves or their kids. Kimmel elaborated on this trend, where Little Leaguers can feel like their MLB heroes when it comes to optimizing performance.

“What’s cool about all this is that not only is this something that can happen with the professional players in major league dugouts, we’re able to now bring this down to anywhere USA, any field for any kid who’s playing baseball, softball or whatever sport it is,” said Kimmel. “They’re getting the opportunity to be able to have the same kind of tech, and that will only mean that these games will get better. It will enable the kids themselves to be better players, have more confidence, have more fun…It could change a kid’s life by just enabling them to do that.

“Are they going to go to the major leagues? Probably not. But you know what? They may be a fan for life. And that’s a big deal for MLB and some of these other major leagues who are really looking to build fans for life.”

It’s hard not to be energized speaking with Kimmel, envisioning (and bringing to fruition) the grandest vision of ideas and businesses in the greater sports space. It’s a testament to the ambition that accompanies venture capital and the near-universal nature of sports and gaming and the engagement around it all. There’s another SeventySix company Kimmel discussed that embodies those ideals, and which sort of pivoted their way to a product that every consumer brand can utilize — Lucra Sports. You may know Lucra as the technology now powering the peer-to-peer gaming for Dave & Buster’s. Kimmel explained that that direction is limitless, and Lucra is just getting started.

“Now we’re going to expand that even further…,” he said. “[Lucra] went out as really a pretty special peer-to-peer sports gaming business, but now is the technology platform for major brands and what they’re doing from a gaming perspective and enabling these major brands to unlock the gaming and competitive piece of their business is just brilliant…Hopefully, very soon, you’ll be hearing about some other massive brands that are starting to bring this whole gaming mechanic into their experience.”

The capitalization and innovation in sports is just getting started, too. If the rate of pitches and opportunities that Kimmel and SeventySix Capital encounter is any indication, the next decades of the sports industry will be as dynamic and awe-some as these past couple. There are more talented entrepreneurs with more ambitious ideas than ever — and, now, the investors and support to bring them to life.

“We see a ton of entrepreneurs. I mean it’s upwards of 170 new opportunities that come in the door every single month, from all over the world,” Kimmel told me. “It’s amazing to think about all the entrepreneurs, all the innovation that are trying to figure out what’s the next thing across sports, media, entertainment, and we’re thrilled to take a look at all this stuff, try to figure out how we can be part of it and do more.

“We want to do more and more. We’re constantly trying to get behind more of these incredible entrepreneurs who are trying to make it all happen. That’s what it’s all about.”

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LISTEN TO THE FULL INTERVIEW WITH WAYNE KIMMEL

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The Infusion of Intellectual and Financial Capital is Transforming Sports Business But Developing and Reaching Fans Remains the Key KPI

Picture the stereotypical owner of a sports team. Back when you were growing up, it’s probably an oil tycoon, maybe wearing a cowboy hat, glad-handing in a private box at the stadium, with plans to pass on the team to their children some day. It was either buy a couple of yachts and a fleet of sports cars or buy a sports team.

But that has largely changed in the last decade or so. Sports teams are now multi-billion dollar entities that attract some of the most sophisticated moneymakers and moneymaking institutions in the world. And with the new equation, stuffed with more zeroes and commas than ever, the level of innovation, analysis, and disruptive investment is more accelerated than ever.

It’s in this dynamic new era that JohnWallStreet resides, analyzing the biggest questions, trends, and themes that are driving the greater sports business industry forward and are on the minds of the industry leaders shaping this evolution. Corey Leff, the founder and editor of JohnWallStreet, articulated the new normal in sports, in which teams and leagues are investment assets that demand the same level of innovation that has shaped the other multi-billion dollar businesses in the world.

“Forever sports was just like a hobby that rich people did,” said Leff, who worked in equity research prior to starting the newsletter and sports business advisory resource JohnWallStreet. “And these weren’t investments, these were largely teams that were passed down. But as the valuations, which corresponded with media rights [deals], have skyrocketed over the last 15 years, you’ve had a different class of owner come in because who can afford to buy $2 billion teams.

“With these enormous purchase prices, you get this different class of owner that’s taking a different approach and making sports business a lot smarter and are thinking about things like the fan experience and how to improve and integrate sports tech. So that’s opened up this whole world of venture and investment and all the things that we write about now.”

And then the million, nee, billion dollar question becomes, Leff noted, “To generate any semblance of return on them, we have to monetize them. So we need to do a better job than we have in the past. I think it all goes together.”

While the massive valuations have largely been driven by increases in live television rights (more on that later), a variable area ripe for growth in the tech-infused, increasingly connected and mobile world, is fan experience and fan engagement. While your parents and grandparents may mostly recognize the game on the field or the court, there is so much more new and novel about going to a game. Sure, you can get still get a hot dog and peanuts, but now you can also get a signature dish from a local restaurant favorite from a renowned chef — and order and receive it without leaving your seat. Forgetting the tickets on the kitchen counter is a relic of the past, it’s all mobile now. The game listed on the ticket is still the ‘main event’ (don’t worry, Red Zone is on in the sports book on the concourse) but you might really be going for the postgame concert or the pregame beer-tasting event. Needless to say, some things have changed since those halcyon days of years past. Things had to change, fans have too many other options on which they could spend their discretionary dollar or enjoy a night out.

“There’s a broader trend of fans going less and spending more on those experiences and looking for that premium experience,” said Leff, whose daily JohnWallStreet newsletter involves deep dives analysis and interviews on sports business stories, topics, and developments. “So that’s not where this conversation or even the trend we’re talking about started about why they initially started trying to improve the fan experience, but it’s all on the same kind of wavelength.

“Right now that’s what fans are looking for. They’re looking for that one night [to be] memorable, this is the night of the year type of experience. And that’s why they’re spending a couple grand to go to Taylor Swift. It’s all about memories, Instagram, social, creating experiences that stand out and are not just one of a million.”

The competition to attract fans to come to the games is just one battle, however. The greater challenge at hand is the rapid evolution of the heretofore endless spigot of cash coming through media rights deals. It used to be so easy — just about every household spent their entertainment hours consuming programming one of a few cable bundles and both leagues and networks enjoyed virtually unfettered, lucrative access to every fan.

But now that built-in audience can no longer be taken for granted. The number of households in the traditional cable bundle is only going down from here on out. Those regional media rights deals are increasingly being replaced by direct-to-consumer platforms or smaller deals. But this paradigm shift can be both a feature and a bug. Because while broad reach may get a little tougher, many teams will have more direct relationships with more fans than ever before.

“I think reach has become an increasing focus for sports properties, recognizing that the everybody’s not in the cable bundle anymore,” said Leff, who recently published a piece on the possible rise of FAST (Free ad-supported television) platforms for games. “There’s like 35 million people that now are outside the pay TV bundle. So I think there’s just an industrywide focus on reach.

He contnued: “I think there’s an increasing shift to understanding or trying to understand who fans are, and if you can understand who fans are, then you could start focusing on what’s the lifetime value and increasing the lifetime value of those fans.

“So we’ve seen these integrations, an increased focus on data and data insights over the last couple of years, but we’re still in our infancy; it’s still at the data aggregation and understanding data part of the process. Like, I don’t know that we’ve actually gotten to the part of the process yet where it’s actionable and driving new revenues.”

Driving new revenues is the end destination, of course, even if we’re still charting the path there. Because while massive reach it’s still available, it’s increasingly happening across different platforms. The fragmentation is part of the new normal, a side effect of the dilution of the cable bundle. Teams and leagues are reaching more fans than ever, all across the globe, but that doesn’t mean making money off all those fans will be easy. Leff and I talked about the unparalleled volume of fans of European football clubs, for example, who may have more individuals in the fans identified as fans — but, for a number of reasons, don’t drive anywhere near the revenue per fan of what, say, the NFL does (playing a sport that is largely confined to two countries in the world).

There is no prebaked paradigm for maximizing the revenue of each fan for a truly global sports team. As NFL and NBA teams increasingly seek global brand status, the Premier League clubs are just about there — but don’t quite have the revenue to show for it yet. There’s latent value for each fan, though, even more so with more direct, more increasingly necessary relationships. Leff noted the importance of being able to direct identify and engage fans.

“Especially these teams with global followings,” he said, “if you could put a per dollar value on what each of those fans are [their valuations would be much higher]. The problem right now is that, say, you got a gazillion fans, but you don’t know who any of them are, how do you go about monetizing them? The answer is you can’t.”

The backbone of monetization, as you’ve read (or already knew), has been the games, and It will continue to be that way for the foreseeable future. But it’s obvious the models by which games are monetized are evolving. There are still lucrative linear rights deals for many, but there are also streaming deals, direct-to-consumer offerings, a la carte purchases, and more. And there’s a generation of potential and emerging fans not accustomed to plopping themselves in front of the boob tube for three hours to watch the full game. They’re still fans, but it’d be naive to think the business models that have prevailed for decades won’t have to evolve along with the changing nature of fan engagement.

Leff addressed the narratives around the coveted and sometimes misdiagnosed young fan cohorts. “I think that younger generations will watch longer form content if the content is good. I don’t necessarily just believe that…,” said Leff, who has a six-year-old daughter himself. “There’s no doubt that it’s hard to fit [long live games] into people’s schedules these days. Everything’s more competitive, so you have to make it more attractive…I certainly do not subscribe to the idea that Gen Z’s are not sports fans; that’s a ludicrous idea. There are certainly sports fans, they just consume media in a different way…”

While traditional TV ratings seem to (remarkably) keep going up for live sports, most survey and behavioral data about Gen Z and Gen Alpha sports fans indicate they tend to prefer and consume more highlights and social media versus the traditional live broadcast. Herein lies another challenge, monetizing sports fans in the same ways when their consumption patterns change. There’s no magic formula that says one sports fan of your team = ‘x’ dollars per year in revenue, let alone lifetime value. But all the questions are moot without new ideas, experimentation, and flipping the innovator’s dilemma on its head, and being unafraid to disrupt paradigms that were so lucrative (and still are) for so long.

“Even if we put the monetization to the side, isn’t it about building that [fan]?” said Leff of the monetization of highlights and non-live consumption. “At least as I see it, for a six-year-old girl, it’s building the next generation of fans and fan engagement. [My daughter] doesn’t watch Sports Center like I did. I’m not sure that the ten-year-old or 12-year-olds are watching Sports Center, but they’re flipping on Roblox, so why not have the highlights airing inside the Roblox game?…

“in the context that I’m talking about, at least, it’s about talking to the next generation of fans. You’re not thinking about how to make the most money off of them today.

“You want to make sure that in 20 years, your team valuations are still going up because you still have a fan base.”

The reward for winning in sports (business) is as lucrative as it’s ever been. At the same time, the competition for discretionary dollars from fans and brands is only getting more fierce. The one constant has been, and will be, the fan. The fan is the sun around which everything else orbits. Without the fan, none of all this talk of innovation, experience, media models, and paradigm shifts matters. So while we continue to chase the almighty dollar today, nothing is more important than ensuring we’re cultivating the fans of tomorrow. It’s that emotional investment that will pay off on the fiscal investment in the long run.

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LISTEN TO THE FULL INTERVIEW WITH JOHNWALLSTREET | COREY LEFF

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The Expanding Definition of Sports Fandom and What Sports Business is Doing About It

It took sports shutting down to speed the sports industry into a new era.

Sure, fan engagement and monetization had digital elements before covid entered the daily zeitgeist. But the conditions for a complete paradigm shift happened as everybody was stuck at home and the sports business was left with no choice but to innovate. An industry that had for so long enjoyed enormous recurring reliable revenue had to pivot (unless you had insurance, like Wimbledon!). But for these billion-dollar businesses whose moneymaking models had largely not changed in over a quarter century, the path forward is anything but certain.

“Sports, I think in a lot of ways is one of the fastest-moving industries because it is a little bit smaller than some other big things, but it’s also a fairly slow-moving industry in a lot of other ways,” said Jacob Feldman, who covers innovation in fan engagement, among other broad topics in sports business, for the publication Sportico. “So to see those changes happen, basically overnight during the pandemic, was really fascinating. And now we’re kind of seeing a proving point of are these things worth keeping. Are they worth pushing forward on it? Should we put these ideas back on the shelf and maybe they weren’t ready yet?”

Digital engagement became paramount during the pandemic as so much of, well, life was spent on Zoom or watching streaming or engaging with online communities or games. Sports wanted to ensure they were part of that engagement diet, capturing hearts, minds, and, more broadly, attention and time spent.

But something else was bubbling up, too, during the time that digital fans and localized fans were one and the same. ‘Fans’ couldn’t go to games, they couldn’t wear their team’s t-shirt in a pickup basketball game at the gym or talk about being at the big game at the watercooler the next day. Life was being lived online more than ever — a lasting challenge and opportunity for sports business.

“You have thousands of other things to spend time on now. I think that has been the biggest driver of teams, leagues, players, media networks, all saying, okay, how do we, whether it’s looking more or working more like those new things are, or just improving our product so that it can compete with those things I think is the biggest driver (of innovation),” said Feldman, who has written extensively about NFTs, web3, fan engagement startups and more for Sportico.

“It’s competing for attention, it’s also competing for identity. Like, people who are young people in the world, young adults, maybe just out of college, trying to decide who they wanna be, what are they gonna put in their Twitter profile and their Instagram profile? Are they gonna put Warriors fan or are they gonna put Fortnite player? Once you determine who you are and what you do, everything else kind of comes from that.”

The broad scope of identity is an important inflection point for sports fandom. It was once about having a bumper sticker on your car, wearing your team’s cap, or going to a team bar to watch the game. All that can still be part of being a fan, but, as Feldman stated, digital identity can be just as important. For some, being a fan on digital platforms is the only way they can express their fandom. They evangelize the team as they engage on digital and social, and they showcase their identity in whatever way they can. And oftentimes the team has no idea who they are, let alone a way to give or get value from it. Feldman used himself as an example, at Atlanta Hawks residing in the northeast, and the opportunity to strengthen and activate his Hawks engagement.

“I’m a big Atlanta Hawks fan. The Atlanta Hawks don’t know who I am, don’t know that I’m a Hawks fan and at some point that’s frustrating, right?,” said Feldman, who grew up in Winston-Salem, NC before heading up north to attend Harvard for college. “Like, in every other way I go about life — I play Magic the Gathering sometimes when I have some free time, and Wizards of the Coast — the people who put that game out, they know who I am. They have my email, they message me, I get rewards, all these kinds of things.

“I don’t get that for spending hundreds of hours watching the Hawks, reading about the Hawks, talking about the Hawks. I’m a massive evangelist for this brand and I get nothing back from it. So I think NFTs hopefully were a wake-up call that teams need to be doing more in that world to connect with fans [like that].”

Connecting with fans, making them feel appreciated, and giving them more chances to engage with the players and teams they love are not altruistic endeavors, of course. There is money to be made. The technology that sticks around is not only what fans will adopt, but what will enable all these displaced fans, and the sports businesses…err….teams that they support to manifest that investment and engagement in tangible ways. “[Sports organizations are] recognizing how much money is being left on the table from fans who don’t live within a hundred miles of the stadium,” Feldman stated. “Whether that’s international, whether that’s just kind of national, that’s been changing a lot in terms of what teams are able to do. Obviously, technology has allowed them to reach those fans and monetize those fans.”

The sports industry has plenty of incentive and necessity to make moves and to do so quickly. Organizations in sports need to explore emerging engagement vehicles and platforms, lest they get left behind. There was a lot of experimentation in the last few years in sports, and it’s not yet clear which paradigms will prevail in the years and decades to come. But we’re watching it play out right now, and the road ahead for what it means to be a sports fan is uncertain and exciting.

Said Feldman: “I think whether sports is being dragged or sports are finally coming around to some of these innovations, it is happening now. And we can go back to the pandemic thing — I think that was a big push. It’s also just kind of where the money is, right? You know, Apple and Amazon have the money, and they’re going to be slowly gaining a bigger and bigger foothold in sports.

“[Innovation in sports business] was slow in the past. I think it is speeding up, but they still have a way to go to catch up to some of these other industries.”

LISTEN TO MY FULL CONVERSATION WITH JACOB FELDMAN

How Sports Organizations Should Think About Sustainability and ESG Issues

    “I’d say 2020 is the year everybody got religion.”

    So I plucked this out of a more extended response from Aileen McManamon, discussing sports organizations and their role, activities, and opportunities in driving progress worldwide. Be it sustainability, diversity, social justice — the power and, in many ways, the responsibility of brands in sports and beyond came to the forefront in the last few years.

    McManamon is a Cleveland native (and big fan of Cleveland sports) and therefore has witnessed the fracturing of the Cleveland Browns fan base when they brought in the embattled quarterback Deshaun Watson. That’s just one of many examples in which the most loyal, unconditional customers of all — sports fans — have had a reason to question their fidelity to their favorite teams and athletes. That represents a wider trend throughout society of employees and consumers of companies not turning a blind eye, no matter how passionate their fandom and support.

    “It’s not a blind loyalty…We’re becoming more critical,” said McManamon who founded 5T Sports Group, which helps sports properties, partners, and event sites drive impact. “And now it’s evolved even more forward because we know this particular generation of fans has a greater affinity to the athlete than they do to the team…You make space for even athletes that you’re not particularly a fan of, you might have never seen them play, but you just love what they stand for.

    “So this is an interesting evolution of that is that what we find is the more that someone stands for, the more drawn people are to that.”

    Something else happened the last few years, too, as organizations witnessed and participated in the broad reckoning of a multitude of issues in the country and the world — many brands tried to cover all of it. To make statements, promise results, and declare their stance on just about everything that the populace seemed to have an opinion about.

    But statements catch up, so while it’s easy enough to put out said statements, consumers and fans today are skeptical of just statements. Statements without action are meaningless and oftentimes can even be detrimental. So how does an organization know where to allocate its scarce resources, attention, and genuine efforts?

    “If you’re in conversations with your fans on social and if you have a good presence on social and you’re following that conversation, you’ll know what they care about more, and what they care about less,” said McManamon discussing the importance of listening to and knowing your fan base. “And when something happens in your community, you better be there on it, right?”

    Sports teams and athletes really do have an outsized role in their community and the world. While the companies and athletes themselves have a modest bottom line, relatively speaking, their influence and the passion they inspire are unmatched. And the good news for the power players in sports is that doing good for the world is also good for business, now more than ever. But the incentive goes beyond driving customer or fan loyalty and beyond some sense of self-righteousness or even genuine altruism — it’s a matter of survival, in many ways. McManamon talked about how sports ecosystems — the teams, the locales, the venues, the economies — are microcosms of society, and therefore they have the ability to be a testing ground, proving ground, and force for progress.

    “The sports industry is a component of everything going on. It’s still relatively small; as large as the sports industry is it’s still a small component of the overall economy,” she explained. “But the platform that they have is quite substantial. Where they should approach [sustainability goals] from is by saying, ‘We’re not doing this because, ‘It’s a nice thing to do, or it’s the right thing to do.’ You’re doing it at this point to preserve your business on the environmental side.”

    Sports also have an outsized influence because there exists within sports an incredible capacity to unite. The prince and the pauper can still talk about that great game last night, and fans can agree that the rival team in the state sucks, regardless of those fans’ political leanings. That power goes beyond a broadcast platform, McManamon explained, making a salient point. And when you can harness that fandom fire and activate it in a directed manner, you can achieve an outsized result.

    McManamon said it well: “Sports are not just kind of a stage broadcast platform, but also a unifying platform. When we go to see sports, that’s where you’re gonna see a professor and a plumber sitting next to each other, or a Republican and a Democrat…people are sitting side by side that are coming from very different backgrounds, but in that moment they’re united in that passion for the [team], everybody’s pulling on that same rope. So this is really the lever that our sports teams can use, the broadcast and the medium.”

    McManamon continued: “We’re united in our dislike for the other team…So imagine things like getting your fans all rolling on a food bank challenge…this is where some of these things fall flat; they’re like, ‘Oh, bring a can [of food] to the game’…How about, ‘Hey, let’s beat the other guys. We’re gonna do better than them [on donating food]. Our team might lose today, but this is in our control as fans.’

    “So you can really rally people around taking actions collectively. And even when it has a little bit of animosity to it, that’s okay because you have to press the emotional buttons that people respond to.”

    Sports fandom engenders a particular sort of patriotism, but modern fans want their teams and players to live up to such passionate pride. Fans want to know that their favorite team is worthy of such affection. When forces for good intersect with the communal, competitive nature of sports, the world is better for it.

    LISTEN TO MY FULL INTERVIEW WITH AILEEN MCMANAMON

    Episode 163 Snippets: Ed Cahill Oversees Orlando City SC’s Extensive and Thoughtful Content Strategy

    On episode 163 of the Digital and Social Media Sports Podcast, Neil chatted with Ed Cahill, Senior Director of Content for Orlando City SC and the Orlando Pride.

    What follows are some snippets from the episode. Click Here to listen to the full episode or check it out and subscribe in iTunes or Stitcher.

    Episode 156 Snippets: Ty Rogers on the Keys to Great Sports Content and Creative

    On episode 156 of the Digital and Social Media Sports Podcast, Neil chatted with Ty Rogers, Freelance Content Creator formerly with Michigan/Duke/Indiana Athletics.

    What follows are some snippets from the episode. Click Here to listen to the full episode or check it out and subscribe in iTunes or Stitcher.

    Episode 142 Snippets: How Donny White and Satisfi’s AI-Enabled Bots are Revolutionizing Fan Experience

    On episode 142 of the Digital and Social Media Sports Podcast, Neil chatted with Donny White, Co-Founder and CEO, Satisfi Labs.

    What follows are some snippets from the episode. Click Here to listen to the full episode or check it out and subscribe in iTunes or Stitcher.

    2019 Sloan Sports and Analytics Conference Twitter Recap for Sports Business

    In March 2019, the annual Sloan Sports and Analytics Conference was held in Boston, bringing together thought leaders and practitioners throughout sports business, performance, tech, and, of course, intelligence/analytics.

    This deck is a collection of the best quotes, insights, and observations (for sports business, generally) shared via Twitter at the event.

    Thanks to everyone whose tweets helped fuel this recap and to Sloan for hosting and providing coverage of an incredible conference! For more on me, follow on Twitter @njh287, connect on Linkedin (Neil Horowitz), and check out more on the website while you’re here!