May 25, 2008

The Unfortunate Football League?

Stop me if you’ve heard this before.

Step right up ladies and gents, coming soon to a stadium near you, a new professional football league and we just know you’re going to love it.

Economic recession notwithstanding, investors seem ready to put their money down on a long shot and spend some rather big bucks to try and compete for the almighty football dollar, currently being held hostage by the NFL. Welcome UFL.

Eight markets have been targeted for this new league, a league that hopes to open next year. In fact they want to unveil some of their West Coast teams this spring.

The name of this new league? The United Football League, UFL. The Not For Fun League is also the Not Fearful League. The NFL has the deep pockets and history and tradition on its side. Not to mention the television rights to NFL games that enables them to withstand the challenge from a fledgling league.

The United Football League has named Michael Huyghue its Commissioner. The deep pocket financing is coming from investment banker Bill Hambrecht and Google exec Tim Armstrong. The UFL planned to begin play with eight teams in August of this year but that date has been postponed until 2009 as they seek investors, owners, broadcast deals and sponsors.

Why do rich men insist on throwing good money after bad in an effort to own “a league of their own”? Because owning a sports franchise may be one of those nearly impossible dreams grown men, men who have money to burn, still dream about.

The UFL is only the latest upstart league to try and unseat, or at least to take a little bite out of the NFL football pie. Do you remember the World Football League, the United States Football league and the XFL? All very distant memories and all failures.
Why should the UFL be any different? What makes this league-to-be any different?

Of course it all starts and ends with money.
Billionaire Mavericks owner Mark Cuban is a UFL team owner, the other owners will no doubt also be well heeled men with a passion for sports, Huyghue did not reveal the name of any other owners but did say that, "they're well known, very financially strong people who either have some (ownership) interest in soccer or football or baseball primarily."

He said each owner would put up at least $60 million initially, and they have been told to expect losses of $25 million to $30 million a year for the first three years. Profits would follow somewhere in the third to fifth years. In other words, forget the bottom line gents; this is not a game for the faint of heart.

So when will the UFL play? Think about it, if you’re a football junkie you start getting that itch right around July, as soon as training camp starts. But your gridiron dreams are put on hold until September, everything before the opening kickoff is so much foreplay.
This new league is not trying to fill the football void from February through August; nope they are risking it all in an effort to attract fans who may feel disenfranchised by the NFL.

The UFL is scheduled to run from August to November and play on Thursday and Friday nights. The plan is to start with eight teams, or six, depending on money and interest, in markets not currently served by the NFL. LA, are you listening? Vegas, are you ready?
They are also mentioning San Francisco, Salt Lake City, Orlando and San Antonio.
But, hey, why San Francisco? I live here, and we already have the Raiders who are blacked out on a regular basis, due to low attendance. And the 49ers who are in danger of receiving the same questionable honor. Why would Bay Area fans pay to watch a Thursday or Friday night football game of no-names when they can enjoy a multitude of activities 24/7? Risky business wouldn’t you say?

What lessons have been learned by these investors that can use to avoid another failing effort?

Here are a few ideas for you.

Play in small stadiums in a fan and family friendly environments. Families are looking for activities that are inclusive and won’t break the bank. And kids want to shake hands with athletes, get their autographs and have their pictures taken.
Include the female fan and mom in big way. This demographic can help your league in many ways; keep the power of the purse in mind when developing your market strategy.
Call me.

The word coming out of the league so far indicates that they will cross some lines the NFL can’t. One of those lines is betting, they may allow broadcasters to openly talk about point spreads. The UFL may also embrace technology by putting microchips in balls to help refs with ball placement. How ‘bout you use a sensor at the top of the goal posts to determine if a field goal actually went through the uprights?

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