SPORT & BRAND EQUITY
Sport naturally has an uncertain outcome, which makes it exciting, but also
makes it more difficult for sport managers to develop long-term relationships with
consumers. Consumers love to root for a winning team. For most sport organizations,
wins and losses have an impact on season ticket sales, attendance levels, merchandise
sales, and other generally accepted performance measures. However, wins and losses, as
well as which players are on the team, are beyond the control of sport marketers and
managers. They must attempt to attract fans regardless of the team record or players.
In an article outlining the future of managing professional sports teams, Gladden,
Irwin, and Sutton (2001) note that management activities will “evolve from a focus on
winning as a means of realizing short-term profits to a focus on strategic management of
the team brand as a means of realizing long-term appreciation in franchise value” (p.
298). By focusing on developing consumers’ brand equity for the team, these sport teams
will not have to rely on winning on the field to be successful off the field. Strong brand
equity among its consumers can insulate a team from the volatility of competitive sports.
A losing season does not have to mean that the team is losing profits as well. Gladden
and Milne (1999) found that brand equity can be more important to merchandise sales
than winning in professional hockey (NHL) and baseball (MLB). Leveraging the team’s
brand equity can be an effective way to market the team and make connections with
consumers and potential consumers without relying on short-term successes like
championships. Building and leveraging brand equity appears to be an increasingly
important strategy for sport organizations that want to create and maintain a long-term
competitive advantage.
BRAND EQUITY & COLLEGE ATHLETICS