Tuesday, November 9, 2010

Global Expansion



The NFL and NBA are two of the most popular sports in America today. These businesses depend on sponsorships and broadcasting rights to continue to grow economically (Coakley 354). With the American market pretty much tapped out as well as the recession these two leagues are looking for a new revenue producer. The obvious answer to this problem is a global expansion specifically to Europe and Asia (Coakley 359). While the NBA is clearly the more global game the NFL is consistently trying to enter the European market. Both leagues currently play games overseas with the NBA having a preseason tour in various countries and the NFL’s annual game in London. The NBA began its global brand after the 1992 Dream Teams success in the Olympics, which spread the game globally (Coakley 359). With the NBA’s market growing in China, athletes such as Kobe Bryant enjoying huge popularity and endorsement opportunities in the new economically powerful country. The NFL has a more limited expansion mainly to London as well as Mexico. The NFL annually plays one game a year in London and has played a game in Mexico City in the past. One of the main draws for the Mexican audience is New York Jets quarterback Mark Sanchez who has a big following in Mexico based on his heritage. Although the NFL has a tougher road in global expansion because of the lack of interest they will continue to try and grow their brand in Mexico as well as its continued presence in London.

These two leagues continued interest in global expansion could hurt the game nationally. When the NFL plays a regular season game one team loses a home game and with the NFL’s small schedule this takes away a fairly large portion of revenue. NBA commissioner David Stern has continually talked about expanding as far as adding an entire European division to the league. While there may be enough interest in basketball globally, this would be taking it a little too far. A road trip to Europe is not just a few hours on a plane; it would affect the play on the court. Not to mention the time differences that would make it difficult for fans in the states to watch their team play. As long as these two leagues keep the expansion to a limited basis it would make the leagues financially stronger without affecting the product. Except as long as money is the driving force of the billion dollar industries and a down economy, the leagues have to do whatever it takes to make money, even if it is at the fans expense

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