This paper discusses the potential of popular US professional sports leagues expanding to the European and especially the German sports market with regard to the NBA, NFL, NHL and MLS. The unique characteristics of sports consumption and differences between US and European sports cultures and economics are taken into consideration.
Furthermore, earlier expansions by these leagues are explored. Due to the lack of sufficient scientific literature, two web-surveys were carried out in the United States and in Germany in order to collect primary data. Additionally, an expert interview was conducted.
Based on these data this paper presents recommendations on the following questions: Which league should expand to Europe? Which expansion strategies should be used? What are possible limitations and difficulties? Which areas need further research?
Table of Contents
1 Introduction
2 Structure of the Paper
3 Theoretical principles of sports consumption
3.1 The sports market
3.2 The sports product
3.3 The sports consumer
4 Current state of Research
4.1 US Sports and League Structures
4.2 Economics of US Sports in the United States
4.3 Previous and Actual Expansions of US Sports to Europe
4.4 Economics of US Sports in Europe and Germany
5 Web-Surveys
5.1 German Survey
5.1.1 Methodology
5.1.2 Results
5.2 US Survey
5.2.1 Methodology
5.2.2 Results
5.3 Limitations
5.4 Conclusions
5.5 Recommendations
6 Possible Forms of Expansion
6.1 International Games
6.1.1 Possible Concepts
6.1.2 Limitations
6.2 New League Structures and Tournaments
6.2.1 Possible Concepts
6.2.2 Limitations
6.3 Merchandising
6.3.1 Possible Concepts
6.3.2 Limitations
6.4 Media
6.4.1 Possible Concepts
6.4.2 Limitations
7 Recommendations
8 Discussion
9 Conclusion
Research Objectives and Themes
This paper aims to investigate the potential for US professional sports leagues (NFL, NBA, NHL, and MLS) to expand into the European and, specifically, the German sports market. By analyzing current research and conducting primary data collection through two web-surveys and an expert interview, the study seeks to determine which expansion strategies are viable, the potential difficulties and limitations involved, and areas requiring future academic inquiry.
- Theoretical principles of sports consumption, including market behavior and consumer motivation.
- Comparative analysis of US and European sports league structures and economics.
- Assessment of current interest levels in US sports among German and American students.
- Evaluation of expansion strategies such as international games, new tournament structures, merchandising, and media rights.
Excerpt from the Book
3.1 The sports market
To begin with, it is necessary to divide the sports market into active and passive. The active market includes sports participants and the passive sports spectators. The latter can further be divided into consumers who attend live events and consumers who enjoy sports through conventional and new media (Shank, 2005). Nevertheless, many people are a member of both main groups. This means they attend sporting events or watch them on media devices, but also participate in sports. Every sport has different correlations with regard to the amount of active and passive sports consumers. For example, while 81% of the people playing basketball also consume professional basketball, on the other hand almost no NASCAR spectator is also a participant (ib.).
The sports market has more exceptional characteristics, which cannot be found in any other market. These include the competition, the coopetition, the focus on the sporting performance and the extent of public perception (A. Bühler & Nufer, 2014).
First, competition in sports is organized in leagues, which often have cartel structures. These leagues determine structures, schedules, and rules to “guarantee a certain level of competitive balance” (Bühler & Nufer, 2014, p.7). Therefore, leagues function as coordinators and ensure an equal distribution of the available resources. In many other economic sectors this would be inconceivable.
Summary of Chapters
1 Introduction: Provides a brief history of global sports expansion and highlights the growth of the worldwide sports industry to set the context for US leagues entering new markets.
2 Structure of the Paper: Outlines the scope of the thesis, focusing on the NFL, NBA, NHL, and MLS, and explains the research methodology used throughout the chapters.
3 Theoretical principles of sports consumption: Analyzes the unique characteristics of the sports market, the sports product, and the behavior of sports consumers, emphasizing passive consumption.
4 Current state of Research: Examines existing US league structures, their domestic economics, previous attempts at expansion, and the current economic status of US sports in Europe.
5 Web-Surveys: Details the methodology and findings of two surveys conducted in Germany and the US to assess interest in and attitudes toward US sports league expansion.
6 Possible Forms of Expansion: Evaluates specific expansion concepts—international games, league structures, merchandising, and media—and their potential impacts and risks.
7 Recommendations: Offers strategic advice for each of the four leagues based on the study's findings regarding their specific potential for expansion in Europe.
8 Discussion: Reflects on whether European expansion is viable, considering the logistical, economic, and cultural challenges involved in the process.
9 Conclusion: Summarizes the key findings, reiterating that while potential exists, US leagues must balance global growth with maintaining their primary US-based positions.
Keywords
Sports management, US professional leagues, NFL, NBA, NHL, MLS, European market, sports consumption, expansion strategies, international games, web-survey, media rights, merchandising, fan behavior, globalization of sports.
Frequently Asked Questions
What is the core focus of this bachelor thesis?
The thesis explores the potential of popular US professional sports leagues (NFL, NBA, NHL, and MLS) to successfully expand their reach into the European sports market, with a specific focus on Germany.
What are the primary themes discussed in the study?
The study centers on the unique characteristics of sports consumption, the economic structures of US versus European leagues, and the feasibility of various market entry strategies.
What is the ultimate research objective?
The goal is to determine which US league has the highest potential for European expansion, what strategies (such as international games or merchandising) are most effective, and what limitations prevent easier entry.
Which scientific methodology is employed?
The author uses a case study approach involving two web-surveys (one targeting German students, one targeting US students) and an expert interview to gather primary quantitative and qualitative data.
What does the main body of the work cover?
The main body covers theoretical principles of sports fandom, comparative analysis of league business models, statistical evaluation of survey results, and a critical look at expansion strategies like international games and media bundling.
Which keywords best characterize this research?
Key terms include sports management, expansion strategies, passive sports consumption, fan identification, and the comparative economics of US and European sports leagues.
How does the "Nowitzki effect" influence the study's conclusions?
The "Nowitzki effect" is a phenomenon where the presence of a homegrown superstar in a foreign league drives interest in that sport back in the athlete's home country, which is cited as a significant driver for basketball popularity in Germany.
What is the main takeaway regarding the Major League Soccer (MLS) in Europe?
The study and the expert interviewee (Bastian Strobl) suggest that the MLS faces high barriers to success in Europe due to the established dominance of European soccer leagues and significant geographical/logistical constraints.
Why is merchandising highlighted as a key expansion strategy?
Merchandising is viewed as a way to "bundle" products with limited access to live broadcasts, helping to convert fashion-driven buyers into long-term fans through closer contact with the sport.
- Quote paper
- Manuel Jakab (Author), 2015, Potential of popular US Professional Sports Leagues/Franchises Expanding to the European Sports Market, Munich, GRIN Verlag, https://www.grin.com/document/1137603
