Nfl Globalization Strategy
4/15/13
Globalization of the NFL
The 2010 Superbowl achieved 106 million views making it at the time, the most watched American TV broadcast of all time. However, only a few million people watched the game outside the U.S. And when you compare the number of Superbowl viewers to the FIFA World Cup, which draws upwards of 700 million views globally, the Superbowl doesn’t seem so “super’’. The NFL has failed to develop an effective strategy in order to expand its market globally relative to MLB and the NBA. This report will discuss the various threats and opportunities that the NFL faces in the globalization of the sport, and evaluate strategic options in regard to these threats and opportunities.
The Problem
In order to effectively solve a problem, before any evaluation or implementation can be done, the problem needs to be defined and identified. The problem derived from the info in the case is: In order to globalize the NFL, what are the best strategic options for implementation of long term growth?
To answer the question of strategic options, the problem needs to be broken down and discussed further. We need a benchmark to compare the NFL to. How and when did the NBA and MLB succeed in globalizing? What, if any key factors could apply to the NFL? When and how did the NFL begin attempting globalization and why did it fail? And finally, potential threats and opportunities need to be defined and discussed in order to answer the problem.
NBA & MLB
The NBA and MLB have successfully globalized their sport in key markets such as Asia, Europe and the South Americas. There is certainly an upside to international markets; from 2000-2006 MLB merchandise revenues increased 183% and approximately 35% of NBA merchandise sales come from outside the U.S. The NFL only receives 12% of its merchandise revenue from international markets. Media rights also play a huge role in globalization revenues. For example, in 2004 MLB international struck a TV deal with a
Globalization of the NFL
The 2010 Superbowl achieved 106 million views making it at the time, the most watched American TV broadcast of all time. However, only a few million people watched the game outside the U.S. And when you compare the number of Superbowl viewers to the FIFA World Cup, which draws upwards of 700 million views globally, the Superbowl doesn’t seem so “super’’. The NFL has failed to develop an effective strategy in order to expand its market globally relative to MLB and the NBA. This report will discuss the various threats and opportunities that the NFL faces in the globalization of the sport, and evaluate strategic options in regard to these threats and opportunities.
The Problem
In order to effectively solve a problem, before any evaluation or implementation can be done, the problem needs to be defined and identified. The problem derived from the info in the case is: In order to globalize the NFL, what are the best strategic options for implementation of long term growth?
To answer the question of strategic options, the problem needs to be broken down and discussed further. We need a benchmark to compare the NFL to. How and when did the NBA and MLB succeed in globalizing? What, if any key factors could apply to the NFL? When and how did the NFL begin attempting globalization and why did it fail? And finally, potential threats and opportunities need to be defined and discussed in order to answer the problem.
NBA & MLB
The NBA and MLB have successfully globalized their sport in key markets such as Asia, Europe and the South Americas. There is certainly an upside to international markets; from 2000-2006 MLB merchandise revenues increased 183% and approximately 35% of NBA merchandise sales come from outside the U.S. The NFL only receives 12% of its merchandise revenue from international markets. Media rights also play a huge role in globalization revenues. For example, in 2004 MLB international struck a TV deal with a