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Innovation

AR and VR Bring New Engagement Opportunities to Sports

As more sponsorships move away from traditional buys and focus their efforts on engaging consumers, AR and VR will play larger roles in the overall activation mix.

Adam White

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Outside of the rise of social media, AR and VR technology are some of the more influential factors the sports industry has seen over the course of the last 3-5 years.

With leagues such as the NBA dedicating Summer League games to testing AR capabilities and Major League Baseball offering fans the opportunity to compete in a VR Home Run Derby, that of course was won by a nine-year-old, the two technologies have created the immense opportunity for teams to create new experiences that fans won’t be able to find anywhere else.

“What we have experienced so far with the sports properties on the VR and AR side is the opportunity to provide their fans access and information that is generally unavailable outside of the in-venue experience,” said James Giglio, CEO and founder of MVP Interactive, a leader in creating AR and VR activations for brands such as Coca-Cola, Bud Light, and Chase.

It’s no secret that one of the biggest challenges facing the sports industry is finding ways to get fans to the park, arena, or stadium in an era when the in-home experience is cheaper and more convenient than having to pile into a car and go to a game.

Giglio sees AR and VR as having the opportunity to provide fans an extra reason to want to attend a game.

“When teams leverage trending technology and sort of promote that to their fans as a way of drawing people into their game day experience, it’s pretty valuable.”

While many may get AR and VR confused, Giglio is quick to point out the unique differences in what each technology can provide and how the properties can leverage them to accomplish specific purposes.

“On the VR side, it’s integrating unprecedented access, whether it’s being on the field or in a locker room, you can really get fans engaged in something that they wouldn’t normally have access to,” Giglio said. “On the AR side, it’s really providing cool technology in an informative piece where, whether it’s a mobile engagement that triggers some type of overlay or a 3D image that kind of tells the story or informs the user of the brand, the overall story of what you’re looking to accomplish is pretty valuable.”

The best part about these types of experiences is that they can be packaged as new inventory for current and potential partners, giving teams a sellable asset that is dynamic rather than static.

As more and more sponsorships move away from traditional buys and focus their efforts on engaging consumers, Giglio believes that AR and VR will play larger roles in the overall activation mix.

“Sponsorships are really moving away from traditional engagements. Teams and brands now want to create experiences for fans and create a recognition and a memory for consumers.”

Where this all comes full circle is the fact that the physical AR and VR activations can be amplified via social media, providing a holistic experience for both brand and consumer.

“When you are looking at a static sign, that’s basically your engagement,” Giglio said. “When you kind of interact with these types of technology, there’s some type of opt-in where information is traded. You then participate and it creates a valuable memory and experience that can be shared across social media.”

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Despite all of the recent advancements and investments in the technology, Giglio thinks the surface is just being scratched not only for the applications, but for the activations.

“On the sponsorship side, the sky’s the limit, really. I think being able to take that in-venue experience, memory, and technology and have it be transcended outside with the mobile engagement too, you can’t ask for anything better than that.”

Adam is the Founder and CEO of Front Office Sports. A University of Miami Alum, Adam has worked for opendorse, the Fiesta Bowl, and the University of Miami Athletic Department. He can be reached at adam@frntofficesport.com.

Innovation

St. Louis Blues Stanley Cup victory breaks Fanatics sales record in 12 hours

It took only 12 hours for Blues fans celebrating the first Cup in the franchise’s 52-year history to shatter the previous sales record set by the Washington Capitals in 2018.

Michael McCarthy

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Photo Credit: Winslow Townson-USA TODAY Sports

There’s nothing like the first taste of a championship. After winning their maiden Stanley Cup title, the St. Louis Blues are generating record sales for merchandising giant Fanatics. With the Toronto Raptors poised to possibly win Canada’s first NBA Championship tonight, Fanatics could be in for two record-setting days in a row.

It took only 12 hours for Blues fans celebrating the first Cup in the franchise’s 52-year history to shatter Fanatics’  previous sales record for Stanley Cup championship merchandise, set by the Washington Capitals in 2018. Within 14 hours, sales of licensed Blues t-shirts and jerseys were pacing 10% ahead of last year, according to Jack Boyle, co-president of direct-to-consumer retail for Fanatics.

“I think it’s a great way for fans to be part of the team and part of the championship,” says Boyle. “They can’t hoist the Cup in the air…but they can buy items.”

These moments of victory are glorious — but fleeting. Sports fans are willing to shell out big bucks within seconds or minutes of winning a championship. But as the urge passes quickly, it’s vital for leagues, teams and online retailers such as Fanatics to have the right product ready to go.

Within minutes of the Blues beating the Boston Bruins 4-1 in the Cup-clinching Game 7, fans went directly to their smartphones to order merchandise. Around 80% of Fanatics’ Blues sales volume, according to Boyle, came via mobile devices.

The most popular items? Try the championship caps and t-shirts – retail price $34.99 – that we’re worn by Blues players and coaches celebrating on the ice, says Boyle.

If fans shop the Blues’ “Winning Never Felt So Good” Cup Collection” at Fanatics, they can also purchase miniature Cups with the Blues logo ($69.99) and framed pictures of players hoisting the most iconic trophy in sports ($189.99).

Fanatics was not the only corporate winner Wednesday night. NBC Sports says Blues-Bruins Game 7 was the most-watched NHL game in 25 years. The game drew a total audience delivery of 8.914 million viewers, according to Nielsen and Adobe Analytics. St. Louis popped a 41.8 local TV rating — making it the highest-rated Blues game ever in that market.

It was also the most-streamed NHL game ever, delivering an average minute audience of 191,5000. NBC’s seven-time Emmy Award-winning play-by-play announcer Mike “Doc” Emrick rose to the occasion.

“It is the last chapter in an incomparable storybook finish for the St. Louis Blues, and an incredibly disappointing finish for the Boston Bruins,” Emrick said as the Blues celebrated on the Bruins’ home ice.

Meanwhile, Boyle and Fanatics are ready to roll tonight if the Raptors win the NBA championship.

Fanatics both manufactures and sells licensed sports gear for the major U.S. sports leagues. Similar to the Blues, Fanatics’ factories will instantly churn out Raptors championship gear if Kawhi Leonard and teammates can get by Steph Curry and the powerful Golden State Warriors.

The Blues and Raptors have one thing in common: Neither club had ever won a championship.

The “high” of finally winning after years of playoff heartbreak and near-misses is intoxicating to their fans, says Dr. Norman Wyloge, a New York-based psychoanalyst who treats athletes and celebrities.

At the moment of victory, money’s no object. But it’s a temporary state that wears off quickly. If consumers aren’t careful, they can end up with a financial hangover, warns Wyloge.

It used to be fan demand for team/player gear would come and go before retailers could capitalize. Exhibit A was the “Lin-sanity” craze in 2012, according to the New York Times.

When New York Knicks guard Jeremy Lin became an instant star, fans searched for his t-shirt or jersey to no avail. By the time retailers stocked up, Lin-sanity was already waning.

Those days are over. Fanatics has changed the game by making fan merchandise available when and how customers want it.

Social media companies such as Instagram are getting in on the action too.

The NBA, Instagram and New Era caps are teaming up to offer a “Shoppable Moment” the instant the NBA Finals are decided in either Game 6 or 7. The minute the buzzer sounds anointing the 2019 champion, Instagram will offer a $50 hat/T-shirt bundle to the 37.7 million followers of its NBA account.

The “tap to shop” promotion will be exclusive to Instagram for 24 hours after the game and will give Raptors or Warriors fans the opportunity to complete the purchase without ever leaving the app.

UPDATE: After the Raptors beat the Warriors for their first title, Fanatics boss Michael Rubin said he expected the company’s second-best day of NBA sales.

Unlike the situation with the Blues, Fanatics doesn’t sell the on-court championship gear worn by the new NBA champs. The Raptors’ NBA on-court championship t-shirts and caps are sold respectively by Nike and New Era. As of 8:30 a.m., New Era was already sold out of several Raptors championship caps.

“Fanatics is having a second straight monster day of champ gear sales,” tweeted Rubin. “This will be the second-best NBA Championship ever for merchandise (only behind Cavs in 2016).”

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Innovation

MiLB’s FIELD Program Aims To Diversify Baseball Leadership

In its fourth year, Minor League Baseball’s FIELD Program welcomes 32 participants to its immersive week of professional development.

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Photo Courtesy MiLB

Vince Pierson stepped on a plane for the first time in 2010 as he journeyed to Colorado Springs for the U.S. Olympic Committee’s Finding Leaders Among Minorities Everywhere program. That trip changed his life, propelling him into a career in sports business.

Now, in his role as Minor League Baseball’s director of diversity and inclusion, Pierson is overseeing a program that aims to foster in the next generation of sports business leaders, as well as introduce the idea of working in baseball to more minorities. This week, MiLB will host the fourth annual Fostering Inclusion through Education and Leadership Development, or FIELD, at the Jackie Robinson Training Complex in Vero Beach, Florida.

The week-long, full-immersion program for college students and recent graduates is a direct result of Pierson’s experiences in Colorado nine years ago.

READ MORE: Minor League Baseball Connects Women to Help ‘Lift’ Careers

“I spent that week in Colorado Springs and my eyes were opened up, so when we started thinking about how we can engage that same age group, something similar was in line,” Pierson said. “It’s the type of thing we wish was around when we were going through this. Last year, there were hugs and tears when we left and the biggest thing for me is that’s 32 new people I get to connect with when they begin their careers. That’s fun and fulfilling for me.”

There were 25 people in the first FIELD class, and Pierson said 20 of them had never been to a baseball game prior to their participation in the program. This year’s class has 32 participants, and Pierson hopes to achieve the 60% placement rate from last year. He considers placement as anywhere in the baseball industry, whether it’s working for MiLB — there are two alumni at the league office — or ticket operations with the New York Yankees.

“There’s an awareness gap. There’s thousands of sports management majors and many aren’t engaging with baseball,” Pierson said. “These are the future leaders of our industry, these are people taking out tons of student loan debts to prepare for their careers and this segment of sports wasn’t on their radar. This program addresses that.”

Pierson said the participants will be running through a schedule simulating their first homestand, from early morning to late nights, and they’ll leave knowing whether they are fit for a career in baseball. Each day starts with a short diversity workshop, leading participants through a series of “bite-sized” exercises addressing topics like stereotypes and microaggressions.

FIELD also welcomes women and minority leaders from across the baseball industry, including Katie Davison, MiLB senior vice president of digital and business development, and Paris Freeman, Oakland Athletics group sales executive.

There’s also a group project throughout the week, a women in baseball panel and a resume and interview workshop with human resource representatives from the Kansas City Royals, Atlanta Braves and Washington Nationals.

On Tuesday, Jacksonville Jumbo Shrimp General Manager Harold Craw spoke to the group about the duties and rigors of being a general manager. Craw was the first African-American to win MiLB’s Executive of the Year Award, and hopes to have a near future with multiple African-American general managers.

“For me, ever since this program began, I want to help because it’s one of the things that will help Minor League Baseball continue to diversify from a front office standpoint,” Craw said. “It’s bringing the youngest and brightest talent together to have a full week to share experiences and learn and engage and for them to form relationships.”

Craw hopes to forge enough contacts and stay connected with alumni with potential position openings in mind. He couldn’t stick around beyond Tuesday and was disappointed he’d miss the alumni panel to hear about their experiences and where they’ve ended up.

The program is hosted at the Jackie Robinson Training Complex, a fitting setting for a program developing a diverse set of future leaders.  

READ MORE: NASCAR Diversity Program and Rev Racing Team Up to Shape Next Generation

“It’s cool to be here with the history that lives here,” Pierson said. “It’s the same place Jackie trained.”

The entire FIELD Program costs a participant a $250 registration fee and the travel to Vero Beach. The rest is covered by MiLB, including registration to the Baseball Winter Meetings. Pierson said he hopes to keep the placement rate at more than 60% before expanding the program, but that there’s space as currently set up for upwards of 50 participants. He said it’d be tough to program another minute into the week, but hopes to keep thinking creatively and outside-the-box to curate a better experience.

“This is a money where your mouth is program,” Pierson said. “It’s an opportunity for Minor League Baseball to take the bull by the horns in how we’re addressing diversity. It’s one thing to have great conversations, but it’s another to intentionally create the hiring process for 32 young professionals.”

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Innovation

World Armwrestling League Hopes To Cash In On Everyman Approach

Whether it’s an investment banker against a plumber or a priest, Steve Kaplan believes the World Armwrestling League has global appeal.

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Photo Courtesy: World Armwrestling League

Steve Kaplan was drawn to the commitment of the athletes in the arm wrestling circuit. He’s convinced the rest of the world will be too.

“You have this preconceived notion of what it was, but I was blown away – I couldn’t believe it,” said Kaplan, an entrepreneur and former advertising executive. “I expected out of shape dudes, but [instead I saw] NFL tight end-caliber athletes – fully committed athletes.”

Kaplan launched the World Armwrestling League in 2014 with an aim to grow the sport globally.

READ MORE: Brutal Business: How WLC is Selling Lethwei to the World

Now, with a streaming deal with B/R Live, as well as media partnerships with Anthem Sports and Fanseat, he thinks the time for the niche sport is now.

“It’s perfect for today’s market,” Kaplan said. “The ability to build a sport from scratch, that was exciting for me. The cross-section of the world of people who compete, it brings people together, it’s a cool culture and got me hooked.”

When the league launched, Kaplan found a willing partner in ESPN for broadcasts, which he said recognized the competition as more World Series of Poker, less UFC.

But similar to other niche sports – with a passionate yet small core audience willing to consume that content on mobile platforms  – doing a deal with over-the-top provider became more appealing for the league as it looks to lean into that digital-first fanbase.

Last year, the World Armwrestling League signed a deal with B/R Live to broadcast its events, which has continued through 2019. It costs $2.99 to stream one of the live matches.

Recently announced broadcast partners Anthem Sports & Entertainment and Fanseat will further help to reach that goal, Kaplan believes. With Anthem, World Armwrestling League events will air on the Fight Network and Game+, while Fanseat will stream all the league’s events in more than 140 countries — the league has welcome wrestlers from more than 40 countries.

“[World Armwrestling League] has many competitors from Europe, where the sport is highly evolved, as well as around the globe. This partnership will allow our company to continue exploring new and relevant content for our subscribers while providing sports fans around the globe with a never-seen-before level of live WAL coverage,” Fanseat Managing Director Jean-Maël Gineste said.

The league’s YouTube channel has generated more than 185 million impressions and 100 million viewed minutes the past year, according to a release.

Right now, B/R Live broadcasts 20 events a year, with six being elite major events for a total of 50 hours. Kaplan said he hopes to have a formal announcement with substantial sponsors for a qualifier tour and likewise hopes to broadcast two elite events from Europe and one from Asia next year.

READ MORE: Gauntlet of Polo Aims to Add Relevance to Niche Sport

Kaplan, who first encountered the idea on a tour around Afghanistan with the U.S. Army seeing how many troops were arm wrestling in their limited space across the country, was intrigued by the fact that these committed athletes can come from every walk of life – to have a plumber go against an investment banker or priest against a guy who makes tires, all creating unique storyline lines. Kaplan believes the sport can be a draw for participatory athletes, those same people who helped grow organizations like Tough Mudder and Spartan Race.

Conveying that everyman aspect and concentrating on making sure visuals were there to bottle the energy and excitement of the community that shows up to events is a key part of these new media deals, things that Kaplan believes are crucial to the property’s success.

“For us, it’s all about exposing this to more and more people,” Kaplan said. “Not everything we do is purely economic, some of it is about getting the best partners for where we want to go tomorrow, not just today. We are a global sport, so we’re trying to build the brand in a global context.”

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