1
Building a Brand Lessons for a Major League Soccer
Franchise
Michael Courtney
Coventry University
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DECLARATION OF ORIGINALITY
&
COPYRIGHT ACKNOWLEDGMENT
DISSERTATION TITLE: Building a Brand: Lessons for a Major League Soccer
Franchise
STUDENT’S NAME & I.D.: Michael Courtney 4323093
COURSE OF STUDY: BA (Hons) Sport Marketing
Declaration of Originality
This project is all my own work and has not been copied in part or in whole from any other
source except where duly acknowledged. As such, all use of previously published work (from
books, journals, magazines, internet sites etc.) has been cited within the main report and
fully referenced as an item in the List of References/Bibliography
Copyright Acknowledgment
I acknowledge that the copyright of this Project belongs to Coventry University
Signed by the student: Michael Courtney
Date: 24/04/16
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Acknowledgements
Firstly, I would like to thank all of my family for providing their love and support throughout my time
at University, especially my Mum and my brothers.
To my girlfriend Emilie, thank you for being there every step of the way and showing me unwavering
support through every challenge I face.
To my housemates Adam and Dan, thank you for being legends.
Thanks to Coventry University and in particular #TeamSEM for providing me with an excellent
platform to produce this study.
And, finally, to Samantha Roberts. Thank you for absolutely everything you’ve done to guide me
through this process. Your support has been outstanding throughout and you have constantly driven
me to push myself and achieve more. Once again, thank you.
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Abstract The purpose of this dissertation is to evaluate the brand building strategies used by Major League
Soccer Franchises. Using secondary data, the results of this study will provide new franchises with
the guidelines for brand success in an increasingly competitive US sporting market. The branding
strategies of New York City FC, Seattle Sounders FC and LA Galaxy FC have been analysed through
the use of a newly proposed Brand Strength Index in order to provide these recommendations.
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Table of Contents Acknowledgements iv
Abstract v
Table of Contents vi
List of Tables viii
List of Figures ix
1. Introduction 1
1.1. Chapter Overview 1
1.2. Major League Soccer, The Emerging Brute 1
1.3. Research Aims & Objectives 2
1.4. Overview of Research Methodology 3
1.5. Structure of the Dissertation 3
1.6. Conclusion 4
2. Literature Review 5
2.1. Chapter Overview 5
2.2. Branding as an Area of Research 5
2.2.1. Defining a Brand/Branding 6
2.3. Branding in Sport 9
2.4. Branding in Team Sport 11
2.5. Branding in US Soccer Franchises 13
2.6. Conclusion 14
3. Methodology 16
3.1. Chapter Overview 16
3.2. Research Design 16
3.3. Case Study Design 16
3.4. Methodological Considerations 16
3.5. Conclusion 16
4. Discussion 19
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4.1. Chapter Overview 19
4.2. Major League Soccer in a Competitive North American Market 19
4.3. LA Galaxy: Adulthood 21
4.4. Seattle Sounders: Adolescence 23
4.5. New York City FC: Infancy 25
4.6. Lessons for a Major League Soccer Franchise 27
5. Conclusion & Recommendations 30
5.1. Chapter Overview 30
5.2. Recommendations for an Emerging Major League Soccer Franchise 30
5.3. Research Conclusions and Future Direction.
References xxxiv
Appendices xli
A. Major League Soccer xli
A.1. Maps of MLS teams xli
A.2. Evolution of MLS logo xli
A.3. Evolution of Dallas Stars Logo xlii
A.4. Average Attendance Table xlii
A.5. Most Sold Player Shirts 2015 xliii
B. LA Galaxy xliv
B.1. MLS Support Map xliv
B.2. Player Acquisition Chart xliv
B.3. Brand Evolution xlv
C. Seattle Sounders xlvi
C.1. Crest & Kit Comparison with Seattle Seahawks xlvi
D. New York City FC xlvii
D.1. Crest xlvii
D.2. City Football Group Teams xlvii
E. Frameworks xlviii
E.1. LA Galaxy BSI xlviii
E.2. Seattle Sounders BSI xlviii
E.3. New York City BSI xlix
E.4. Brand Equity Hierarchy xlix
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List of Tables
Table 2.1: Defining a Brand/Branding 7
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List of Figures Figure 4.1. Brand Strength Index 28
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One
Introduction 1.1 Chapter Overview
This research analyses and evaluates past strategies that have been implemented in
order to facilitate the growing of a franchise’s brand and provides recommendations on
how these strategies can be altered, tweaked, combined or applied in order to facilitate
the growth of an emerging Major League Soccer (MLS) franchise’s brand. The purpose of
this chapter is to examine the relative background of this research and deliver purpose
for its emphasis. The importance of branding is underlined and deliberated. The aims
and objectives of this study are highlighted and the application of the theoretical and
methodological structures is detailed. The chapter closes with a demonstration of the
structure of this paper.
1.2 Major League Soccer, The Emerging Brute
The MLS, as a league, and all the clubs participating, have great desire to grow, both in
terms of the United States and on a global scale. This is evident in a recent statement
from MLS commissioner Don Garber, who expresses the thriving thirst for expansion
that all stakeholders possess:
“There is no shortage of demand for MLS expansion teams, and we believe the opportunity
exists to grow beyond our current plans. We will evaluate the possibility of growing the
league to 28 teams and establish a process and timeline.”
MLS Soccer (2015)
With the high level of expansion imminent across all levels in the MLS, the importance,
significance and timing of this research is apparent. With the huge probability of another
8 teams being added to the current total of 20 over the next few years, branding will be
of key importance in providing competitive advantage to these new additions.
This study will answer the fundamental research question: What strategies should an
emerging MLS franchise use to establish and develop a brand? With the use of
literature, this study examines the significance of branding in the sport industry,
focusing on branding as an essential focal point in attempts to communicate ever
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complex and intangible messages (Davis, 2000; Goodchild and Callow, 2001) rather than
the idea that branding ‘only works on cattle’ and is based on an old-fashioned and
invalid endeavour, manipulating and controlling consumers' unconscious (Baskin
2008).” In the building of a new franchise, success on a local and global scale comes
down to high fan loyalty, which has direct correlation with strong brand image (Bauer,
Sauer and Exler 2008). The management of strategies involving brand image and
overall equity are discussed, and branding is underlined as a key factor in the success of
an emerging franchise.
To avoid early demise, franchises must implicate strategies not only to overcome
obstacles, but to also grow market share and stability through creating their own
competitive advantage. Brand image, personality, loyalty, awareness, identity and
associations are qualities that distinguish brand equity, which in itself is a main resource
to a company (Rosner & Shropshire 2004). Not only does brand equity play a huge part
in helping teething problems in early stages of the life cycle (Aaker 1991), these
resources also feed into the companies capabilities, meaning they are a main source of
competitive advantage as well (Zack 1999).
1.3 Research Aims & Objectives
In order to answer the principal research question - What strategies should an
emerging MLS franchise use to establish and develop a brand? – two very clear aims
have been set out. Firstly, fundamental to the success of this study, the stand out brand
strategies of relevant US sports franchises, both past and present, will be analysed.
Secondly, a critical evaluation of how a new franchise could exploit these strategies in
order to establish a successful brand of their own will be carried out. To assist the
analysis and critical evaluation of said brand strategies, numerous objectives have been
recognised. The research objectives of this study are:
To define a brand through the use of literature
To identify factors that contribute to a brand strategy
To analyse past strategies used by US (United States) sports franchises
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To examine the strategies that have proven successful
To identify and explore the factors that contribute towards a successful
franchise brand in sport
1.4 Overview of Research Methodology
This study adopts a single embedded case study design, using US sport franchises and
soccer teams within MLS as its primary focus. A cross case comparison of different
franchises is conducted in order to make clear recommendations for MLS teams trying
to achieve a high level of brand equity. A single embedded case study, defined by Yin
(2003) as a case study containing more than one sub-unit of analysis.
1.5 Structure of the Dissertation
There are five integral chapters to this research that will contribute towards the
answering of the research question; Introduction, Literature Review, Methodology,
Discussion and Conclusion. Succeeding the introduction to this research, the residual
chapters of this study will define, analyse and evaluate a specific area of literature;
discuss methodological decrees for this exploration; and display and inspect the findings
of this research.
Chapter Two deliberates the theoretical foundation of this study, stressing key notions
that will impact the research. Branding will be defined and critically reviewed through
the use of appropriate literature, providing vision and focus for the analysis of data. In
Chapter Three, methodological reasoning for this study is provided; including the
philosophical perspective of the researcher and the purpose for the layout of each stage
of the process concerning collecting relevant data is cited. Significant discoveries found
in the preliminary stages of the study are shown and their importance in aiding the aims
and objectives of the research are assessed. Chapter Four provides the findings of this
research; structured in a single-embedded case study designed to analyse the successful
strategies deployed by US sports franchises. Significant factors and similarities between
these franchises, which play a role in success, are analysed through the use of an in-
depth cross-case analysis. Succeeding this, Chapter Five concludes the findings of the
study and provides recommendations for the brand strategies of emerging MLS
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franchises.
1.6 Conclusion
Embracing a modern approach to branding and viewing competitive advantage as an
essential catalyst in the successful emergence of a franchise, this research provides
major contributions to both academic theory and real world application by determining
the factors that contribute towards high brand equity and discussing the amalgamation
of these factors into a strategy that produces prosperous results. The emphasis of this
research provides the opportunity to contribute toward sport marketing literature as
well as the broader academic field of branding, due to the findings being applicable to
not just MLS franchises or general sports teams; a wide range of companies in a vast
array of industries are also able to learn from the outcomes.
This chapter has aimed to introduce the contextual background of the study and provide
a justification for its emphasis. The aims and objectives of the research have been clearly
represented and the methodological design has been underlined. The following chapter
showcases the theoretical foundation of which this research is made up by critically
reviewing and analysing literature surrounding branding.
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Two
Literature Review
2.1. Chapter Overview
Chapter One of this study has highlighted and discussed the research question,
presenting a contextual background and reinforcing the need for this research.
Following on from this, Chapter Two will develop a theoretical body of appropriate
literature that will support the research, underlining key facets and evaluating their
importance to the research. The four areas of literature this study focuses on are
branding, branding in sport, branding in team sport and branding in US soccer
franchises. A critical analysis of these areas will provide a wide scope of justified
theoretical background to the study.
2.2. Branding as an Area of Research
There is a long history of brands identifying the derivation of a product and in
distinguishing one product from another. For example, in Ancient Egypt, brick-makers
would imprint their bricks using unique symbols and members of trade societies in
Europe would use a “trademark” on their products in order to ensure quality for their
customers, and to claim legal protection (Gross 2015). Although these methods had
been around for a long time, the idea of “brand/ing” didn’t come to prominence until the
16th century. Farmers in the “Wild West” would mark their cows by branding the sign
(or logo) of the owner onto the animals’ fur (Keller 2008). Also, Whiskey Distilleries had
the habit of burning the name of the producer onto each barrel in order to identify who
made the produce and avoid it being swapped with cheaper alternatives (Farquhar
1990). Branding as we know it today, a marketing tool, began to evolve in the 20th
century when manufacturers moved on from simply selling commodities to marketing
branded products and reaping the benefits of the reputation the brands were building
(Aaker 1991).
The importance of brand management highlighted within literature dates back to 1939,
when Domizlaff (1939) suggested that branding techniques should facilitate the
development of the relationship between the consumer and the product, which should
be built on trust. To this day researchers have built on from previous two-dimensional
approaches based around image; and an identity-based brand management standpoint
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has been developed by academics such as Meffert and Burmann (1996), Aaker (1996)
and Kapferer (1992). This approach is a development of the strictly image-based
methodology in that it accounts for the internal view point of a business, as the beholder
of the brand, as well as the external viewpoint of the consumers who possess an image
of that brand in their minds. This means the internal stakeholders’ (employees, etc.)
views are taken into account, as they are the brand identity; as well as the perceptions of
external stakeholders’ (suppliers, consumers, etc.), as this is the brand image (De
Chernatony 2006). Brand identity echoes the characteristic qualities and persona of a
brand and is actively created by internal assets of a company, such as staff and
managers. The shared ethics, values, morals, objectives, behaviour and ethos all
contribute towards a company’s brand identity (Van Riel & Balmer 1997) . By
exemplifying what the brand does and does not represent, the identity-based approach
leads companies toward a coherent brand that is clearly and concisely understood by
consumers (De Chernatony & Harris 2000); which, when viewed from the perception of
the consumer, is brand image.
2.2.1 Defining a Brand/Branding
Throughout the ages, as the ideology and uses of a brand has evolved, so has the
complexity of definitions. What started off as a way of marking which cow
belongs to which owner (Keller 2008), has gone on to evolve through time from
being a symbol of a specific entity (Aaker 1991) to now being widely recognised
as “a series of functional and emotional values that promise a certain experience to
its stakeholders (De Chernatony, Drury & Segal-Horn 2004: 1).” Although such
advancements in the ideology and power of a brand have been widely accepted,
there is still skepticism; Baskin (2008) suggests the importance of branding for a
business is overrated and that the ideology should have remained as just an act
of marking cattle. With cynicism surrounding the power of branding, the need
for convincing evidence of brand based equity has led to the development of a
vast array of brand-equity models (Burmann, Jost-Benz & Riley 2008). Over 300
models including different definitions and contrasting perspectives on brand
equity have been published (Amirkhizi 2005), contributing to confusion as to a
clear definition of branding. A number of branding definitions (See Table 2.1)
have been gathered to demonstrate the wide scope of classification used by
academics.
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Table 2.1: Defining a Brand/Branding
Definition Author(s) (Year)
“The distinguishing name or symbol (such as
logo, trademark or packaging design) intended
to identify the goods or services of either one
seller or a group of sellers and to differentiate
those goods and services from those of
competitors”
Aaker (1996: 7)
“A brand is a distinct product, service, or
business, and branding is the act of impressing a
product, service, or business on a consumer, or
set of consumers.”
Vaid & Campbell (2003: 2)
‘‘Brand is a name given to a product or service
from a specific source. Used in this sense
‘’brand’’ is similar to the current meaning of the
word ’trademark’.’’
McLaughlin (2011: 1)
“A brand is a name, term, sign, symbol, or
design, or a combination of these, that identifies
the maker or seller of a product or service”
Armstrong & Kotler (2010: 255)
“A brand can be defined as a series of functional
and emotional values that promise a certain
experience to its stakeholders”
De Chernatony, Drury & Segal-Horn (2004: 1)
“consumers’ perception of the offering – how it
performs, how it looks, how it makes one feel,
what message it sends”
Rayport & Jaworksi (2001: 5)
“A brand is a customer experience represented
by a collection of images and ideas; often, it
refers to a symbol such as a name, logo, slogan,
and design scheme. Brand recognition and
other reactions are created by the accumulation
of experiences with the specific product or
service, both directly relating to its use, and
through the influence of advertising, design, and
media commentary”
American Marketing Association (2015)
“Branding is when that idea or image is Brick Marketing (2015)
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marketed so that it is recognizable by more and
more people, and identified with a certain
service or product when there are many other
companies offering the same service or product”
“Branding is about understanding the brand
values and positioning, and developing an
expression across the various media”
Baldwin, J & Davis, M. (2006: 8)
“A brand is mainly a differentiation device: the
living memory and the future of its products.”
Kapferer (1997)
An evident theme throughout the table shows that a brand has the power of
providing an entity with uniqueness; a distinct attribute that provides
differentiation within a market or industry.
A clear observation drawn from these classifications shows that earlier
definitions of branding, such as Aaker (1996) and Kapferer (1997), seem to
focus solely on the differentiation that possessing a brand can provide. Later
definitions from Rayport & Jaworksi (2001: 5) and Vaid & Campbell (2003: 2)
have advanced on the traditional understanding and have taken external
stakeholders’ views and emotions into account. The definitions are based around
the idea of how a brand is perceived by its consumers and how it makes them
feel.
This research adopts the definition of branding provided by De Chernatony,
Drury and Segal-Horn (2004: 1) in that soccer teams, more so than the average
corporate business, consist of an array of practical and emotional values that
propose a certain experience to its stakeholders.
The objectives set as a basis for branding strategy include building
differentiation from other brands; Muncy (1996: 411) states that “differentiation
is regarded as the lifeblood of successful brand marketing and advertising.” As well
as that, a brand strategy also helps create awareness, reputation and
prominence in the marketplace (Weitz & Wensley 2002). Identifying these
objectives is important to the study as the consideration of a successful brand
must be made clear in order to provide a valid answer to the research question.
Keller (2002: 152) suggests that “brand strength may reflect macro brand
considerations such as market leadership or market share position, as well as more
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micro brand considerations such as consumer familiarity, knowledge, preferences,
or loyalty.” This opinion contrasts in complexity in comparison to Chuah (2008:
11) who believes a successful brand is one that “meets an additional emotional
need.” This study will interpret success by understanding a combination of these
two interpretations, in that a successful soccer team utilizes the high level of
emotion of soccer fans in order to gain on macro and micro brand
considerations.
2.3. Branding in Sport
According to Petrović, Milovanović and Desbordes (2015), today’s global sports industry
is worth between $350 Billion and $450 Billion. Soccer remains the king of all sports;
global revenues equal $20 Billion yearly. In Europe alone, soccer is a $16 Billion
business, with the five biggest leagues accounting for half of the market and the top 20
teams comprising roughly one-quarter of the market; this figure highlights the power
that top brands possess in sport. Much of this success is down to that fact that strong
service brands, namely sports brands, are built by making an emotional connection with
their audience. This connection is achieved by brands that reflect customers’ core
values; that capture and communicate values that customers’ hold dear (Berry 2000:
134). This perception is reiterated in a similar sense by Arai, Jae Ko and Kaplanidou
(2013), who state that the ‘attractive appearance’ and ‘marketable lifestyle’ of an athlete
will contribute towards strong brand equity. Auto racing driver Danica Patrick and
Tennis player Roger Federer, famed for their ‘sexy’ brand image, both signed for
marketing agency IMG in order to further develop their brands and gain a more
wholesome image through improved communication of their lifestyle (Yahoo 2009; SAB
2007). The two factors mentioned are built on perception, and the latter is linked to
personality, a feature that consumers can relate to emotionally (Aaker 1997).
Sports are typically categorized by high levels of consumer commitment and the
aforementioned emotional involvement (Sutton et al. 1997). This commitment is
generally referred to as brand or fan loyalty. Gladden and Funk (2004) state that brand
loyalty is important to sports entities for two reasons; firstly, brand loyalty ensures a
more stable following even when the core product’s performance falters (e.g. a Formula
One driver loses their race). Secondly, brand loyalty creates opportunity for product
extensions beyond the core product to be introduced. New products such as athlete or
team related merchandising can be used to create additional revenue streams, even
across geographical boundaries.
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As aforementioned, Aaker (1997) suggests that brand personality can increase the
consumers’ connection with a brand. Donavan et al. (2005) also found that individuals’
personality traits influence their identification and loyalty with a sports entity. Whilst
many researchers argue that competitive balance is a key factor for the attractiveness of
a certain athlete, team or league, as it guarantees an uncertainty of the outcome of
results (Knowles, Sherony & Haupert 1992; Marques 2002; Rottenberg 1956); other
researchers have found that matching the characteristics of a brand with those of its
endorsers and consumers tend to be the most common influence (Kamins 1990; Lynch
& Schuler 1994). From a social identity theory perspective (Tajfel and Turner, 1985),
individuals may associate brand characteristics with positive aspirational goals that
they can relate to themselves; Carlson, Donavan and Cumiskey (2009) state that
personality types that are wholesome, imaginative, successful, charming and tough will
have a positive effect on the prestige and distinctiveness of a brand. The significance of
certain brand associations is also specified by Aaker (1996), who states that strong
brand equity can be developed through positive brand associations that consumers
attribute to a brand. As well as consumers associating the brand with themselves, brand
association with another company is also recognized to boost consumer engagement
and brand equity; this is commonly known as sponsorship and the results are a
consequence of brand image transfer between the companies (Gwinner & Eaton 1999).
According to Schwarz and Hunter (2008), sponsorship has been an important part of
sport promotion since it was first recorded in the period of Antiquity, over 2700 years
ago.
Earlier classifications seem to only recognise the benefits of a sponsorship agreement
from the point of view of the sponsor, such as Otker (1988: 77) who defines sponsorship
as “(1) buying and (2), exploiting an Association with an event, the team, a group, etc, for
specific marketing (communications) purpose” and Javalgi et al (1994: 48), who state that
it is “The underwriting of a special event to support corporate objectives by enhancing
corporate image, increasing awareness of brands, or directly stimulating sales of products
and services.” As research and knowledge of the subject has grown, these traditional,
transactional views on sponsorship have been evolved to realise the benefit of an
agreement for both parties (Meenaghan 2002), such as Farrelly and Quester (2005: 211)
who describe sponsorship as “a form of exchange between sponsor and the entity it
invests in, with both parties seeking to achieve their own strategic goals .” This study
adopts this definition of sponsorship as it coincides with the ideologies aforementioned
about the relationship between sponsorship and branding and how both the sponsee
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and sponsor can benefit from an association with each other’s image (Gwinner & Eaton
1999).
Keller (1993: 3) defined image as “perceptions about a brand as reflected by the brand
associations held in memory” , “and the transfer of it is acknowledged in academic
literature to be one of the primary reasons for organisations to consider sponsorship as
part of any marketing communications strategy (Gorse 2013: 24).” Although the benefits
of brand association have been highlighted within this study, Buhler and Nufer (2010)
state that while positive image transfer is an integral part of sponsorship, negative
image can be transferred in an identical manner; damaging the sponsor’s image as a
result. Nonetheless, this study focuses on the positives of brand image toward a
successful branding strategy, whilst taking the possible negative connotations in to
consideration.
Image transferral within sponsorship, and particularly within sport, can be twofold; an
example of this would be Formula One team Sauber linking up with Chelsea Football
Club (Autosport 2012). The partnership allowed both cohorts to use the others’
branding in marketing communications, with both entities aiming to capitalise on the
correlation between the two companies’ brand images. In this case, Chelsea paid
sponsorship fees to Sauber as if it were a company aiming at promoting its corporate
brand; of course, a corporate brand is most likely what the management of Chelsea FC
believes their club to be. “The goals that might be pursued by the football club by means of
this partnership are the typical goals of a commercial sponsor: reaching a worldwide
audience to enhance brand awareness and building brand image through transfer of
associations such as excitement, passion for performance, or unique heritage (Gross 2015:
26).” This evidence shows that the “typical sponsor” and “typical sponsee” might not
exist anymore, as the universality of branding progresses (Keller 2008); highlighting the
prominence of branding In sport, and in particular team sport.
2.5. Branding in Team Sport
Branding within team sport is distinct from general branding in sport due to a number
of factors: heightened loyalty from consumers (Sutton et al 1997), a sense of community
amongst fans (Underwood, Bond, & Baer 2001) and the opportunities surrounding
having a home stadium (Rosner & Shropshire 2004).
As aforementioned, and here reiterated by Underwood, Bond & Bear (2001: 2)
“Successful sports team cultivate a distinct brand image and seek to capitalize on the
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oftentimes extreme emotion-laden response of their fans.” Sports fans attain strength and
a sense of identity from their affiliation with a team (Wann & Branscombe 1993). This
point is agreed upon by Ashford and Mael (1989) who describe it as ‘Team
identification’ and define it as the spectators’ perceived connectedness to a team and the
experience of the team’s failings and achievements as one’s own. These fans that are
highly involved with a team can be extremely loyal; their loyalty is long-term,
unwavering, and is supported by time and financial commitments (Sutton et al 1997). As
a result of this, many sports teams have implemented strategies such as heightened
communications through a variety of methods (email, mail, and special ‘limited access’
events) which may enhance and reinforce the degree to which committed consumers
feel more affiliated with the brand and truly part of the team (Rosner & Shropshire
2004). Although these measures are taken in order to increase brand loyalty, “Escalating
player salaries, franchise relocation, and player mobility, however, threaten the special
relationship between fans and sports teams by creating psychological (or real) distance.
(Milne & McDonald 1999: 3).”
This loyalty and emotion towards sports teams unifies otherwise disparate fans; it
makes people volunteer in communities and commit to a team and be as intimate
towards the club as they would be in a romantic relationship (Fisher & Wakefield 1998).
This heightened group identification marks in-group/out-group boundaries, facilitating
the grouping of people into “us” vs. “them” and “we” vs. “they”, which brings a certain
sense of community to sports teams (Underwood, Bond, & Baer 2001). Social
psychological research focused on sport has documented the effects of such strong
group identity (Simons & Taylor 1992). This development of community creates strong
brand-building opportunities within a brand strategy; Schwarz and Hunter (2008: 211)
suggest that “the main goal of community relations is to foster goodwill in the community
and develop a long-term relationship with individuals and the community as a whole”,
whilst Winn and Branscombe (1993) found that these fans being more involved and
invested in the team resulted in an increased probability of higher attendance, a greater
enthusiasm to spend money following the team and a more encouraging, sympathetic
set of expectations from the team. Whilst the benefits of a local, physical community
have been highlighted, Devasagayam and Buff (2008: 2) propose that such a “limited
conceptualization of community may not be congruent with modern technological
advances that render geographical boundaries meaningless and find that sufficient
evidence exists to support the notion that consumption communities are not bound by
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spatial constraints. Communities may be conceived and nurtured in the physical world as
well as the virtual world.”
In this day in age, stadiums are not only part of the physical, local community; with
technological advances, they now attain the capabilities to become part of the virtual
community, engaging consumers worldwide and becoming an ever more fruitful asset to
brand equity (Donnelly 2012). Rosner and Shropshire (2004:189) reiterate the impact a
stadium can have on brand equity with two clear points; “First, those teams that have
more control over the stadium, its ancillary activities and revenue sources are likely to
generate more revenues from the stadium-related extensions. Such enhanced control also
allows for increased marketing activity and consequently increased brand awareness.
Second, the stadium tradition and design may play an important part in the development
of brand equity. Certain stadiums possess significant histories, whereas others are more
generic. A sport consumer’s brand associations may be enhanced when the stadium itself
plays a part in the attending or viewing experience.” These sentiments are agreed upon
by numerous studies that have shown that an appealing stadium atmosphere, heritage
and status are some of the most important motives for spectators to attend an event,
and therefore must be utilised as an indispensable asset within a sports team’s brand
strategy (Bauer, Sauer & Exler 2005; Holt 1995; Wakefield & Blodgett 1999; Wann &
Wilson 1999).
2.6. Branding in US Soccer Franchises
As highlighted by Aaker (1996) and Armstrong and Kotler (2010) in section 2.2.1., logos
are essential for brand recognition. Extensive research put in towards the creation or
development of a brand logo and brand nickname has been a common tactic in both
major and minor US franchises (Rosner & Shropshire 2004). This point stands true in
the case of nearly every MLS franchise, as the young league attempted to establish a
brand (Jensen & Sosa 2008). These logos have been designed in order to reflect the core
values and beliefs of the consumers (see section 2.4) (Berry 2000), with many referring
to the history and tradition of the local market and consumers, due to the effect that has
on fan loyalty, continuity and growth (Passikoff 1997). However, although many teams
have taken measures to enable growth, “It is no secret that soccer in the United States is
an afterthought amongst most sports fans. In terms of viewership and revenue, it is well
behind the traditional ‘Big Three’ of the American sports pantheon of football, baseball
and basketball (Brown 2005).” Part of the reason for this, Jensen and Sosa (2008) claim,
is that although strategies have been implemented to try and gain more loyalty from
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established fans; many potentially rewarding audiences, such as Mexican-Americans,
Hispanics and Chicanos have not yet been engaged by marketing activity.
The failure to engage new consumer audiences may be rectified by a strategy that
involves recruiting star players from big European leagues. This strategy has seen
names like David Beckham, Steven Gerrard, Frank Lampard, Didier Drogba, Andrea Pirlo
and David Villa move to the MLS; with clubs’ aims being to benefit from these players’
marketable profiles, which contribute greatly to merchandise sales, brand image
transfer and increased media interest (Desbordes 2007); with the latter being of huge
interest to the MLS and all of the teams involved, as media attention and particularly
television coverage are major factors in assisting the league’s growth (Lopez 2006).
Although this strategy has its benefits, Scott (2011) and Francis (2011) suggest that this
strategy could be a bad case of history of repeating itself. In 1975, Brazilian soccer
player Pele signed for the New York Cosmos in the North American Soccer League
(NASL), and whilst the league saw tremendous success during his playing career, the
league folded in 1984, just 6 years after he’d retired. “Many Europeans equate MLS to its
U.S. predecessor, the NASL, and it is often referred to as a “retirement league”, known for
attracting famous foreign players whose best playing days have passed by offering easy
money (Strutner, Parrish & Nauright 2014).” This negative image of the league may in
due course have an effect, but the acquisition of youthful, talented players from Europe’s
top leagues has helped combat that image; thrusting the growth and reputation of the
league’s brand: The aforementioned MLS Commissioner, Dan Garber has claimed that
“the signing of Sebastian Giovinco was one of the most important and successful signings in
the history of the league. It’s very important for us to have everyone understand that this is
not a retirement league. While there are a handful of guys – Didier Drogba and Steven
Gerrard and Frank Lampard and Andrea Pirlo - who are toward the end of their careers,
Sebastian made this decision in the prime of his career. He made Toronto FC his club of
choice when he had many other options (Toronto Sun 2015).”
2.7. Conclusion
The purpose of this chapter has been to critically review existing research in the field of
branding, delving deeper and transcending through relevant literature involving
branding in sport, branding in team sport and finally branding in US soccer franchises in
an effort to synthesise the literature in order to construct a conceptual background, and
subsequently deliver direction for the data collection phases of this study. This critical
review has acknowledged key gaps in understanding that this study aims to address.
15
The understanding of branding as an integral asset to a company is a well-documented
research area, and this chapter has sought to identify branding in sport as a highly
emotion driven concept that is very much focused around personality and loyalty. In
doing so, this study is built around the definition of branding provided by De
Chernatony, Drury and Segal-Horn (2004: 1) “A brand can be defined as a series of
functional and emotional values that promise a certain experience to its stakeholders.”
In developing a better understanding of branding in US Soccer franchises and, in
particular, the factors and tactics that contribute towards a successful strategy, this
study represents an important contribution to the fields of both brand management and
sport marketing.
This research is based on the argument that a strong, thorough and well-revised brand
strategy can improve the macro factors of a US soccer franchise such as market
leadership and market share position, as well as improving micro factors such as
consumer familiarity, knowledge, preference and loyalty. This study is designed to
evaluate if this is indeed the case, and subsequently provides a critical analysis of each
contributing factor. The findings of this study are presented in Chapter Four.
The following chapter presents the philosophical and methodological contemplations of
this study and key findings from the initial stages of the research process are discussed.
16
Three
Methodology
3.1. Chapter Overview
In Chapter Two, a critical analysis of branding, branding in sport, branding in team sport
and branding in US soccer franchises provided a wide range of justified theoretical
background to the study. Chapter Three highlights the methodological approaches
applied in this study, delivering a rationale for data collection and analysis methods
used, whilst underlining the philosophical standpoint of the researcher. Ethical
reflections for this research are discussed and key initial findings from preliminary
phases of the research process are given.
3.2. Primary Data
Defined as original data that is collected by the researcher for a particular purpose (Hox
& Boeije 2005). Primary data can be collected through the method of either conducting a
survey, an interview or by observing test subjects (Currie 2005). Table 3.1 below
demonstrates the advantages and disadvantages of using primary data.
Table 3.1: Advantages and Disadvantages of Primary Data
Advantages Disadvantages
Data is collected first hand by the
researcher, ensuring more control over
how the information is collected. This
means issues such as the sizing and time
frame of a project can be decided upon
and better planned for.
All data collected must be appropriate and
necessary for the study.
Further data can be collected throughout
the research process.
Not always feasible. Some projects, whilst
potentially offering valuable information, are not within reach for the researcher.
Generally more specific to the research
issue in comparison to secondary data, as
the researcher can create surveys and hold
interviews that are specific to the study
(Kowalczyk 2014).
Primary data can expend many resources
of the researcher, due to primary data
usually requiring high investment in both
time and money. This is often the main
reason for primary data not being utilised
in studies (Ghauri et al 2005).
17
Although the positives of conducting primary research are evident, it will not be utilised
in this study. Primary data is well documented to require great investment from the
researcher and due to time and money constraints, secondary data is the collection
method being implemented.
3.3. Secondary Data
This is defined as data that has been collected by others, originally attained for a
different purpose (Frankfort-Nachmias & Nachmias 1992). The secondary data sources
that will be utilised in this study will be previous historical data, official statistics,
government reports, officially recognised statistics and previous research. The
advantages and disadvantages of using this data collection method have been discussed
in the table below, to emphasise why secondary data is best suited for this study.
Table 3.2: Advantages and Disadvantages of Secondary Data
Advantages Disadvantages
Provides comparative and relative data for
the study (Saunders et al 1997).
Lack of control over the data, which means
it must be checked thoroughly in order to
make sure of the quality, reliability and
validity. (Saunders et al 1997).
Delivers data that is longer lasting and
attainable in many forms that can be found
easily by others (Denscombe 2007).
Will have been collected for a particular
purpose, which may differ from the
researcher’s research question or
objectives, which may subtract from
relevance (Denscombe 2007).
Requires fewer resources, in particular
time and money (Cowton 1998). A
Considerably less expensive and time
consuming method compared to collecting
primary data.
The aforementioned time and money constraints of this study, along with the other
benefits mentioned by Saunders et al (1997), Denscombe (2007) and Cowton (1998)
reinforce the notion that Secondary data is the ideal data collection method for this study.
3.4. Case Study Design
18
As mentioned in Chapter 1.4, this study adopts a single-embedded case study design.
Merriam (1998) proposes that utilising multiple cases in a study makes the findings and
understandings more compelling. The reasoning behind selecting a single-embedded
case study rather than a single case study was down to the fact that studying multiple
cases of parallel entities can validate, qualify, or extend the findings that may arise were
there to be only one case. This study is focused on factors of brand equity in Major
League Soccer franchises, whilst drawing from the strategies employed by LA Galaxy,
Seattle Sounders and New York City FC (NYCFC).
Although Hird (2003) was critical of case studies for their paucity of rigor,
representatives and generalisability, Yin (2009: 53) suggests that “the evidence from
multiple cases is often considered more compelling, and the overall study is therefore
considered more robust.” Ritchie and Lewis (2003) agree, and state that case studies
provide a flexible background for numerous data collection methods. In consideration of
this, each team has been chosen due to the stages they are at in the brand life cycle. LA
Galaxy are classed as Adulthood, Seattle Sounders are Adolescence and NYCFC are
infancy. This classification of the teams enables results to be gathered from different age
ranges, perspectives and markets, aiding the robustness, reliability and validity of the
study, whilst eradicating bias due to the cross referencing of multiple unique cases
(Pannucci et al 2011). This research will principally use qualitative data, whilst
integrating elements of quantitative data in order to provide statistical evidence for
findings. The result of incorporating both types of data in this research results in
triangulating the findings, providing more generalisability (Gorse 2013).
3.5. Conclusion
The purpose of this Chapter was to deliver a detailed outline of the methodological
process utilised throughout this research, whilst underlining the philosophical
considerations. It has been established that the primary reason for secondary data being
utilised in this study is largely due to the time and money constraints of the project. The
validity, reliability, generalisability and bias of the study have been discussed, whilst the
decision to utilise both qualitative and quantitative data was established. Chapter Four
presents the main findings and outcomes of the research.
19
Four
Discussion
4.1. Chapter Overview
In Chapter Two, the methodological considerations of this study were identified and
explored. This Chapter provides a cross-case analysis of LA Galaxy, Seattle Sounders and
NYCFC, exploring the strategies these teams have utilised in order to build and grow
their brands, leading to the development of a conceptual model that explains the
relationship between brand strategies and key brand factors.
4.2. Major League Soccer in a Competitive North American Market
The birth of MLS relates back to the 1994 World Cup and started with a promise to The
Fédération Internationale de Football Association (FIFA). The United States Soccer
Federation (USSF) agreed that if they were to host the World Cup, they would set up a
professional soccer league. In 1996, the league was inaugurated with just 10 teams,
which were split into Eastern and Western conferences to avoid long travel times. Since
then, the league has added 10 more teams and grown exponentially (See Appendix A1
for map of MLS teams).
In 2014, Howard Handler, Chief Marketing Officer of MLS announced a revamped brand
identity for the league, stating “In the last 18 months, we have introduced new teams, new
soccer-specific stadiums, an eight year, multi-million dollar media rights partnership, and
our owners have made significant investments to sign world-class athletes. Together, these
elements have led to the realization that our current brand is no longer a proper
representation of the league we are and want to become. Our new brand and crest are the
result of an iterative process that has helped us better understand the world in which we
operate in. The outcome is not an evolution, but a revolution. (LA Galaxy 2014).” A
statement that expresses the reactive innovation being applied by MLS, enabling the
brand to grow as the league does whilst providing differentiation from the highly
competitive US sport market. The new logo’s colours pay tribute to the nations MLS
represents: the US and Canada. While the design is intended to say “soccer” without the
literal ball and boot of its predecessor, the flexible nature of the brand will also allow
clubs to adopt the league crest in their own unique colour schemes, reinforcing a
20
focused commitment to put clubs, country and community first (MLS Soccer 2014). See
Appendix A2 for evolution of MLS logo.
MLS uses a playoff system similar to that of the National Basketball Association (NBA);
the top six teams from each division play each other in elimination rounds that
subsequently lead to a final between two teams. As well as using this playoff system
used by other American sports, MLS also adopted their franchising system. This means
MLS and it’s individual teams exist as one single corporate entity. There aren’t many
organic, legacy soccer clubs in the US that possess structural and financial stability, so
MLS had to create a viable infrastructure of teams. In order to maintain the league and
ensure uniform policies, MLS maintains central control over all participating teams. In
essence, a franchise in North American sports is comparable to a franchise in retail or
the fast food industry. For example, there are many KFCs, McDonalds and Subways
around the world that have been purchased with the right to operate as a private owner,
whilst the policies, rules and regulations of the corporate owner are put in place to
ensure a uniform brand.
Sports franchises, like fasts food franchises, are movable. There are many reasons this
may occur, such as issues with finances, lack of support, problems with unsatisfactory
facilities or even just the wishes of the owners. When a franchise relocates, brand
considerations are very important. An example of this would be the National Hockey
League (NHL) team, Minnesota North Stars. In 1993, after two years of poor attendance
and profitability, the team were moved to Dallas and renamed the ‘Dallas Stars’. The
change in name for the team, although very subtle, was very effective. Many Minnesota
fans had always referred to the North Stars as simply ‘the Stars’, so this change in name
and relocation of the team would not alienate them; instead the intention was to retain
the emotional connection between the team and the fans. As well as this, Dallas is a city
located in ‘The Lone Star State’ of Texas; a nickname with powerful connotations and
one that provides a meaningful connection between the franchise and their new city
(See Appendix A3 for evolution of logo). This meant the team was able to substantially
grow their fan base and have enormous support in two major US cities.
It has been established throughout this study that brand identity and differentiation are
key factors in establishing an emotional connection, competitive advantage, brand
loyalty and overall brand equity. These key factors should therefore underpin brand
marketing strategies for MLS franchises in the highly competitive North American
environment in which they operate.
21
4.3. LA Galaxy FC: Adulthood
One of the 10 teams to be inaugurated in the first MLS season in 1996, LA Galaxy have
gone on to become the most successful team in the league’s history; winning the MLS
Cup a record five times. This success has seen the club grow to become the most
supported in the US (See Appendix B1 for map). These achievements have come as part
of a huge rebranding overhaul aimed at international brand growth; and the team’s
global goals were echoed by Tim Leiweke, CEO, who stated “We're not just trying to win
the MLS Cup. We're driven to set a new a tone, a new level and a new platform for this
brand and this team worldwide and internationally (ESPN 2012).”
LA Galaxy have specified the acquisition of international star players as the driving force
behind building their brand. It is through these acquisitions that the club has established
itself as a worldwide brand while winning a record number of MLS championships (See
Appendix B2 for chart expressing La Galaxy’s vision). The re-brand started in 2007 with
the signing of David Beckham. By recruiting the world’s most famous sports star, the
profile of the team was immediately raised. The improvement of their performance on
the pitch was just a minor reason for his recruitment, with brand image transfer playing
a huge role. As aforementioned in Chapter 2.6, the New York Cosmos employed this
strategy with the signing of Pele. To avoid the mistake made by the doomed NASL, LA
Galaxy took measures to closer align their brand with Beckham’s and rebuild a fresh
brand on the foundations of his. In partnership with Adidas (sponsor of both LA Galaxy
and Beckham), the team’s colours and logo were completely revamped. The team’s kit
changed from gold and green to an optic white with navy blue accents on the sides. This
colour scheme was decided upon in a move to emulate Real Madrid (Beckham’s former
team) and their glamourous look, something that reflects the lifestyle and brand of Los
Angeles as a city. The navy blue reflects the ‘space’ theme; assisting the ‘Galaxy’ name
and the new emblem (See Appendix B3 for brand evolution). The revamped crest shows
a quasar shining brightly in a deep blue California sky, with edgings of the colour gold,
honouring the Galaxy’s proud history and tradition in the Golden State. The addition of
the quasar was seminal in the rebranding process, claimed General Manager Alexi Lalas,
“A Quasar is the heart of a galaxy and generates incredible light and energy”, highlighting
the connection between the symbol and the Galaxy; a name originally selected as a
reference to the parlance of LA celebrity, “stars” (Inside SoCal 2007) .This is a focal point
of the brand, attempting to use their heritage in order to build a stronger connection
with the local community, as well as the international market through association with
the world renowned ‘Hollywood’.
22
As well as Beckham, LA Galaxy have made several other signings that have played a role
in the building of their brand, in particular Landon Donovan, Gyasi Zardes and Giovani
Dos Santos. Although the signing of Donovan was in 2005, the strategy behind bringing
him in was one with a long term vision. At the time, Donovan was a young, all-American
forward with experience in Europe and a strong international record. By the time of his
retirement in 2014, Donovan dominated the stats and went on to become 7-time MLS
Most Valuable Player (MVP), leading MLS scorer of all time, leading MLS assister of all
time, leading United States Men’s National Team (USMNT) scorer of all time and leading
USMNT assister of all time, leading to him being regarded as the greatest American
soccer player of all time (Guardian 2015). Whilst LA Galaxy could not have predicted the
success Donovan would go on to have, the initial strategy of signing him to attract the
notoriously patriotic US market, which provided the team with greater emotional equity
and differentiation (Adeyinka 2011) was only aided by his subsequent achievements. In
2012, Galaxy signed Gyasi Zardes as a ‘Home Grown’ player, a move that was driven by
the same motives as the Donovan signing. The hometown connection that Zardes shares
with the club enabled fans to get excited about ‘one of their own’ turning into a star
player for both LA Galaxy and the USMNT (MLS Soccer 2016).
In 2015, LA Galaxy signed Giovani Dos Santos, a former member of Barcelona’s youth
system with experience at various teams around Europe and over 90 caps for Mexico. At
just 26, he is a near perfect representation of the ‘ideal’ signing portrayed in Chapter 2.6,
due to his youth, experience and nationality. The arrival of the Mexican caused
extraordinary excitement around the city (Guardian 2015). As the ethnic majority of Los
Angeles with 49% of the city’s population (Census 2014), and their famed love for
soccer, Latinos are a massive target market for the club. The signing of Dos Santos’ has
opened the door for a new dimension of connection between the club and the fans.
The franchise play their home games at the StubHub Center and in 2015 averaged an
attendance of 23, 392, filling 86.64%of the 27,000 capacity soccer specific stadium (MLS
Soccer 2015). For a team of LA Galaxy’s calibre, these figures do not seem to correlate
with their global brand strength and fan base statistics; leaving them fifth in total
average attendance(See Appendix A4 for full table). The reasoning for this may be due to
the club’s failure to fully engage fans in the local community. Although their past
strategies have been implemented with these aims, they have been more successful at
growing the brand internationally rather than within the city. The aforementioned
signing of Dos Santos was completed in order to aid these efforts, whilst the club has
also hired a design and branding company to rebrand the stadium, aiming to better
23
communicate their heritage and reinforce the StubHub Center as the home of the Galaxy
(Soccerex 2015). As well as this, Galaxy have announced a drop in the price of tickets is
$69.77, marking a price drop of 34.8% below 2014’s average of $107.13 (Forbes 2015).
4.4. Seattle Sounders FC: Adolescence
Established in 2007, the franchise was the 15th to be added to MLS. In the past eight
years, the team has gone on to become one of the most successful in the league and had
an average attendance of 44, 247 in 2015 (MLS Soccer 2015), over 11,000 more than
second placed Orlando City. The Sounders were bought to MLS by a team of highly
experienced individuals; with the most influential of these being Paul Allen. A co-
founder of Microsoft and owner of National Football League (NFL) team Seattle
Seahawks, Allen has been an integral part of building the Sounders’ brand. In the initial
creation of the logo, Allen’s knowledge of the local market allowed the team to design a
crest that was developed with two distinct layers to represent the partnership between
the ownership, the community, the players and the fans (Sounders FC 2008). The crest
consists of a heraldic shield surrounding the internationally recognised ‘Space Needle’,
in a colour scheme of ‘Sounder Blue’ and ‘Rave Green’, representing the contrasting
colours of the surrounding landscapes, namely the Pacific Northwest (See Appendix C1).
This colour scheme is nearly identical with that of Allen’s Seahawks, suggesting the two
brands are synonymous with one another. As well as colours, the two teams also share
the CentruryLink Field, a 67,000 capacity stadium in the heart of the city.
It is evident that in the preliminary stages of brand building, the Sounders have utilised
the foundations and facilities already put in place by the Seahawks; feeding off of their
credibility, status and fan base, enabling them to engage with an existing and established
community (similar in essence to the Chelsea – Sauber arrangement mentioned in
Chapter 2.4). This ‘partnership’ has built an inextricable link between the brands;
resulting in positive image transfer. However, this relationship is not just a case of the
Seahawks helping out the Sounders, as without the sounders, there would be no
Seahawks. In the development stages of the CenturyLink field, a vote went ahead for
planning permission; the city was opposed to the idea of a new football specific stadium.
After much deliberation, Allen suggested the stadium built should host both football and
soccer matches; “as the referendum drew near, support for the stadium grew. On Election
Day, more than 1.6 million people cast ballots in a vote so close the result wasn’t known
until the next morning. Eventually word came: the stadium had passed by a mere 36,780
votes, a margin of 51% to 49% (The Guardian 2015).” Fred Mendoza, an attorney
24
working on the referendum, claims “There is no question the soccer vote was the
difference (The Guardian 2015).” These findings express the reasoning for the affinity
the two brands share, and how these foundations have provided them the platform on
which they have excelled, together.
Rivalry is something that has driven the passion of the fan base. Voted as the best rivalry
in the MLS (MLS Soccer 2015), Seattle vs Portland is a fierce contest that attracts
attention and brings the fans closer together. According to the Aaron Reed, co-president
of the Emerald City Supporters group, the history and proximity between the cities is
what fuels the fire (ESPN 2015). Though soccer clubs of both cities have ferociously
competed for over 45 years, Sounders’ admission to the MLS has provided a platform
that sees the best team from each city face each other on a much larger scale. “Many of
the city's residents, restaurants and bars are aware of the rivalry, especially around match
day, and it rises to the level of a "big event" in that even the people who aren't normally
tuned in to the sport know what's going on. It's that big-game buzz that a city gets
sometimes, and it's ubiquitous even if you're not looking for it or paying attention (ESPN
2015).” As aforementioned in Chapter 2.5, the grouping of people into “us” vs. “them”
and “we” vs. “they” brings a sense of community around a club. This rivalry, along with
Sounders’ newfound conflict with LA Galaxy, which has been intensified due to both
teams’ success on the pitch, have captivated fans and delivered a heightened level of
passion, emotion and engagement; though LA Galaxy’s Coach, Bruce Arena, was quick to
dismiss this rivalry, proclaiming “Is it a rivalry? We don’t have any rivals. Maybe the
team that was in our building (former MLS side Chivas) was a rival, but the other teams
are just games in our conference and our league (LA Galaxy 2015).”
Even with an average ticket price of $129.46, which is $34.72 more than second highest
Houston Dynamo at $94.74 (Forbes 2015), Seattle’s attendance figures express the
extent of their connection with their fans. A big factor surrounding this relationship
between the club and the fans comes down to the Sounders’ community relationship
programmes and Corporate Social Responsibility (CSR) work. The ‘United in Green’
campaign consists of programmes such as MLS W.O.R.K.S, Goals for Success, Saves for
Youth, United We Serve and Sounders in Schools. These programmes have enabled the
club to integrate themselves within different communities in the city, building an
identity and rapport with the local people, thus increasing loyalty (as mentioned in
Chapter 2.5). As well as engaging the local community, the Sounders have identified the
potency of the Hispanic market, collaborating with former midfielder Gonzalo Pineda
25
and Street Soccer Mexico in order to engage the young demographic in Mexico City
(Sounders FC 2016).
Another brand building strategy employed by the Sounders is player acquisition.
Notable signings include Freddy Ljungberg, Clint Dempsey and Jordan Morris. The
Sounders signed Ljungberg in 2009 as the star player in their inaugural team. The
signing was one of similar calibre to others seen in MLS; a veteran player with
experience in Europe and a very marketable profile. His performances on the pitch
earned him a place in the MLS All-Star team and his brand certainly helped launch the
club domestically, but didn’t have the desired effect of growing the Sounders brand
globally (ESPN 2010). This point was reiterated by LA Galaxy’s Alexi Lalas, who
incredulously commented on the signing, stating “Eddie Vedder of Pearl Jam would have
a better chance of making an impact at Seattle Sounders than Freddie Ljungberg (Tribal
2012)."
In 2013, the Sounders signed Clint Dempsey. With what was marked as “the biggest MLS
signing since David Beckham (Sounder at Heart 2016)” by fans; his move back to the US
signalled the return of a USMNT hero, second in the top scoring ranks to only Landon
Donovan (Guardian 2015). Dempsey’s traits as a player and personality matched those
of the Sounders fans. Tenacious, passionate and patriotic; his presence at the club has
proven to be an instrumental catalyst in developing brand affinity between the club and
fans. Shirts with ‘Dempsey’ on the back sold more than any other MLS player in 2015;
more than world renowned stars Steven Gerrard (2nd), Kaka (3rd), Andrea Pirlo (4th) and
David Villa (5th) (See Appendix A5 for full list). Jordan Morris is a signing that has had a
similar impact to that of Dempsey’s; with headlines such as “Jordan Morris: hometown
hero, Seattle star, symbol for the future of MLS (Score 2016)” providing a scope of the
immense reception given to the player. These statistics and headlines express the
monumental impact these singings have had on the team and provide an insight into the
fan behaviours of the North American market. Eight members of the USMNT appear in
the top 20, a representation of the nation’s partisanship.
4.5. New York City FC: Infancy
This team was inaugurated at the beginning of the 2015 season and became the 20th
member of MLS. The franchise is owned by the City Football Group (CFG) (80%) and the
New York Yankees (20%). CFG are owners of 3 other clubs around the world; they bring
a vast amount of experience in football strategy and branding to NYCFC; with expertise
that have seen their core team, Manchester City, turn from an infamously mid table
26
Premier League club into two time champions in just seven years. The Yankees are a
tremendously successful Baseball team with a huge international brand (2nd most valuable
sports team on earth) and an impeccable understanding of the local market (Forbes 2015).
The club’s logo is “inspired by the old New York City Subway Token, created by the Transit
Authority in 1953 and used for 50 years as the standard fare for a ride. The last version of
the token had a cut out pentagon in the centre representing the five boroughs, similar to
what appears on either side of the monogram, to reinforce the Club’s connection to the
entire city. The circle is also a symbol of unity, wholeness and infinity, and is often
associated with potential and the number one. The colours navy blue, white and orange
are drawn from the New York City flag (NYCFC 2014).” The final decision on the club’s
crest was made by over 100,000 supporters in a vote implemented in order to give the
fans a voice in the franchise, enabling the foundations of a connection to be built from
the very beginning.
In further efforts to connect and integrate with the community, NYCFC have
implemented CSR programmes such as Safe Places to Play, Soccer + Fitness + Nutrition
Education and Saturday Night Lights, helping tackle local social issues such as obesity
and crime. Whilst this strategy has enabled the club to bond with the local community,
they have come under mass scrutiny for trying to force a relationship with the fans. In
May 2015, before a home match against the Seattle Sounders, NYCFC issued a song
sheet, featuring many infamous chants tailored to the club (Independent 2015) in an
attempt to manufacture an atmosphere.
Although the team have been criticised for being too forceful, their attempts at
antagonising a rivalry have deemed successful. The ‘Hudson Derby’ between NYCFC and
the New York Red Bulls (NYRB) has been played up by both teams, in an attempt to
benefit from the equity a rivalry can provide. In the run up to the clubs’ first meeting,
taunts and jibes were thrown between the teams in the media, and the teams were very
openly trying to promote a rivalry, at the risk of coming across as ‘pushy’ (ESPN 2015).
Nevertheless, on game day, both sets of fans arrived at NYRB’s Red Bull Arena in full
voice; creating a positively ‘hostile’ atmosphere, expressing their passion and emotion in
homage to their respective teams. “The arrival of New York City FC this season led many
to think the Hudson derby would need a manufactured sense of drama. Think again (BBC
2015).”
NYCFC play their home games at the Yankee Stadium. An arena owned and played in by
the New York Yankees. The capabilities of this stadium have played a part in NYCFC’s
27
success in averaging 29,016 fans throughout their inaugural 2015 campaign; third
highest of all MLS teams (MLS Soccer 2015). In sharing the stadium with the Yankees,
NYCFC have managed to benefit from positive image transfer and engagement with a set
of heavily engaged fans that fit their target market. Irrespective of this, NYCFC plan on
building their own soccer specific stadium in one of New York’s five boroughs, in order
to attain ‘prestige’ within the city and benefit from distinctive marketability (Forbes
2015).
The player recruitment strategy employed by NYCFC is similar to that of the
aforementioned franchises. In time for their inaugural season, the team had bought in
Frank Lampard, Andrea Pirlo and David Villa. All three of these players have played
their whole careers at top teams across Europe’s best leagues, bringing a wealth of
experience and brand equity to the club. As aforementioned, Pirlo ranked fourth in
overall shirt sales, with Villa in fifth and Lampard in seventh (MLS Soccer 2015). These
statistics express the magnitude of support the players have provided the club; the fans
are not only wearing a ‘Pirlo’, ‘Villa’ or ‘Lampard’ shirt, they are signifying support for
NYCFC.
4.6. Lessons for a Major League Soccer Franchise
Through the use of extensive research and a Brand Strengths Index (BSI), LA Galaxy,
Seattle Sounders and NYCFC have been cross analysed. The radar chart below shows
each team positioned and rated out of 10 in accordance to six key brand factors. As
established throughout this report, brand identity and differentiation provide an
emotional connection, leading to brand loyalty and overall brand equity (See Appendix
E4 for Brand Equity Hierarchy). The factors highlighted in the graph below are key
components that make up brand both identity and differentiation, thus supporting brand
equity.
28
Figure 4.1. Brand Strength Index
Brand Image –The extent to which the brand’s total personality is recognised.
Brand Ownership – Clarity of the brand’s message and what it stands for; the
expression of an independent brand possessing its own identity.
Brand Culture – The ideas, values, ethos and social behaviours of a brand.
Heritage – The story and history behind a brand.
Societal Role – The brand’s involvement and integration with the community and
society it operates in.
Engagement – Both tangible and intangible; the level of involvement between the brand
and its consumers.
These factors are manipulated and tailored through specific brand strategies. Analysis of
the three franchises shows an evident pattern of approaches employed by the teams in
order to build on brand equity; these methods consist of expressive logo design, player
acquisition, stadium utilisation, CSR and exploiting a rivalry.
As an integral element of developing heritage, brand culture and engagement, it is clear
that all three teams have made extensive efforts to produce a logo that embraces the
identity of the local community whilst being a marketing tool for wider brand
considerations(as aforementioned in Chapter 2.4). Sounders, for example, created their
emblem with distinctive layers built into the design to be a literal representation of the
relationship between the owners and the community; whereas LA Galaxy have put more
focus into a design that aids internationalisation and attracting a global fan base.
0
2
4
6
8
10Brand Image
Brand Ownership
Brand Culture
Heritage
Societal Role
Engagement
LA Galaxy
Seattle Sounders
NYCFC
29
NYCFC’s approach allowed fans to have an input in the logo and vote on the winning
choice; a decision that enabled the club to heavily engage with the fans and get real-time
feedback on the fans desired brand identity.
Due to the stature of soccer in the US, tactical player acquisition is a very integral brand
building strategy; with experienced ‘big name stars’ that have played in Europe a
common, prosperous choice amongst MLS teams being utilised as a differentiation tool.
LA Galaxy, the first team to operate such a scheme as their main brand building strategy,
have been very considered in the players they have signed. Bringing in Beckham was a
huge success for the club, instantly boosting their brand image on a global scale. The
signing of Dos Santos was a judgement made in order to better connect with the
unengaged Hispanic community of the city, whilst the acquisition of ‘US hero’ Donovan
and the development of ‘home town hero’ Zardes have had a positive impact. The
patriotic publics have relished the success of these American players. This latter
strategy has also been employed in a very similar fashion by the Sounders, with the
signings of Dempsey and Morris. Shirt sales figures for Dempsey and the sheer
excitement caused by the new signing of Morris express the impact on the clubs brand
image and engagement. NYCFC’s signing of three star European players has aided
international brand awareness, but hasn’t engaged the US public like the signings of
Donovan and Dempsey have for their clubs.
Stadium utilisation plays a key role in all six brand strength components. LA Galaxy are
the only team of the three to have exclusivity of their stadium; this provides them with
more brand ownership and thus more opportunity to construct a purer connection with
their fans. Aforementioned statistics, such as stadium attendance, show that LA Galaxy
have not utilised this opportunity available to them. Although the Sounders and NYCFC
share their stadiums with other sports teams and therefore lose a certain sense of
ownership over their brand, their strategies of borrowing credibility, brand image and
fan base from these teams has enabled them to build on brand culture and engagement.
This has caused these brands to significantly grow and integrate into the cities within a
short time period. Due to their current shortcomings, brand ownership is a major force
behind NYCFC’s future plans for their own stadium.
By implementing a CSR strategy, clubs are able to increase long-term profitability and
brand equity through high ethical standards and positive public relations. LA Galaxy’s
efforts in this concept are minimal, which is expressed in the lack of engagement
between the club and their local community, which also has negative connotations for
30
the brand’s image, culture and societal role. On the other hand, NYCFC and in particular
the Sounders have strengthened their brand culture due to their deep lying
commitments in this area; ultimately contributing toward their brand identity.
Sounders’ use of former player Gonzalo Pineda to build connections in Mexico is a
resourceful strategy that has also been utilised in the Premier League; using ‘legends’ of
the club to not only implement CSR strategies in their local community, but to build fan
bases in foreign countries with high profit potential.
In a North American market that breathes patriotism, rivalries have evidently become
an important component of building brand equity, with an influence so significant they
can overcome a whole city and engage even the most unaware of publics. Seattle’s
rivalry with Portland Timbers has been embedded into the clubs’ heritage and culture,
which has enabled the club to reach an even greater level of emotional connection with
their fans. Due to LA Galaxy’s geographic location, there is no ‘natural’ rival; Coach
Arena’s recent dismissal of a rivalry between Galaxy and the Sounders could prove to be
costly, as the capitalisation of a rivalry would be beneficial for the club’s poor
engagement results. Lessons can be taken from NYCFC, who have managed to nurture
their rivalry with NYRB and develop their bond with the fans.
The overall brand strength ratings for each team (LA Galaxy: 46, Seattle Sounders: 45,
NYCFC: 38) provides an insight into the impact of each company’s strategic planning. LA
Galaxy’s sole focus on internationalisation has provided them with high brand image,
but their failure to realise the importance of a strong connection with their local
community is evident in their low engagement levels. This is in stark contrast to the
Sounders, who have heavily engaged their local community with strong brand culture
and societal role, but have so far been unsuccessful in launching their brand on a global
scale. As a very new expansion team, NYCFC have the lowest score of the three by a
significant margin; nevertheless, their well-rounded brand building attempts have
certainly ‘put the team on the map’.
31
Five
Conclusion & Recommendations
5.1 Chapter Overview
This chapter presents the conclusions of this research, underlining both the professional
and theoretical contributions of the study. The appropriateness of the research
outcomes is highlighted and the significance of further research is discussed, whilst
recommendations for both emerging MLS franchises and wider academia are also
provided.
5.2 Recommendations for an Emerging Major League Soccer Franchise
As a highly influential and ever-present feature of this study, the five brand building
strategies of logo design, player acquisition, stadium utilisation, CSR and exploitation of
a rivalry have naturally been selected as recommendations for a newly established
franchise.
Logo Design
Marketability
Community
Heritage
A logo should incorporate all three of these factors. Learnings from the case studies
suggest that a combination of these components will provide a wholesome logo that
shapes the foundations for strong brand identity to be built.
Player Acquisition
When considering new integral signings, a franchise should recruit players with
credentials that match one or more of the bullet points highlighted below.
European Experience (e.g. David Beckham)
‘American Legend’ (e.g. Clint Dempsey)
Home Town Hero (e.g. Jordan Morris)
32
Learnings from the case studies suggest a player that matches these credentials will
enable a team to create a strong basis for establishing recognition and prestige, whilst
nurturing the emotional connection between the club and the fans.
Stadium Utilisation
A key recommendation for a new franchise would be to ‘link’ with an existing sports
team in the area. As the examples of Sounders and NYCFC show, this strategy enables a
franchise to gain from positive image transfer and provides a foothold on an already
established, highly engaged fan base.
If a franchise is opened in a city without an established sports team, the alternative
strategy would be to bring in a globally recognised individual as an endorser of the
brand. Beckham’s role in the new Miami franchise and Will Ferrell’s role in Los Angeles
FC (Guardian 2016) show that involvements and endorsements from respected figures
can be beneficial towards brand equity before a franchise is even fully inaugurated.
CSR
A key tool used in order to build a connection with the community. In order to fully
engage fans both near and far, a franchise should initiate community programmes both
locally and globally.
Rivalry
A new franchise should try and antagonise a rivalry. The benefits of a rivalry have
widely been discussed, and in the highly patriotic North American market they are a
very influential tool at stifling fan engagement.
5.3 Research Conclusions and Future Direction
As the North American sport industry becomes ever more saturated, brand equity is
becoming increasingly invaluable for teams trying to build a fan base. With more and
more franchises becoming existent, focused brand strategies are as important as ever in
enabling a team to gain a foothold on a market. In this context, this research begins to
address the implications of six key brand factors that feed into differentiation and brand
identity, in an effort to understand the factors that contribute towards a franchise
gaining an emotional connection with its fans. Based on the newly proposed Brand
Equity Hierarchy (BEH) and BSI, this study has attempted to explore the impact of brand
strategies on the factors within the BEH and answer the principal research question:
33
What strategies should an emerging MLS franchise use to establish and develop a
brand? This analysis provides a new understanding and perception of how a franchise
can literally ‘build’ a brand. The findings suggest that by applying a brand strategy that
influences the six bottom line brand factors in the hierarchy, the higher placed
components will be impacted and increased or decreased accordingly.
To further develop this study and eradicate the limitations experienced throughout,
modifications can be applied. The inability to conduct primary research was a great
limitation to this study. Further research would provide the chance to conduct extensive
surveys that could gain stakeholder’s opinions of each club’s ratings in accordance with
the factors in the BSI. This data would provide fans’ opinions of each brand’s strength
and the average would provide a numerical figure on true brand strength, something
notoriously hard to quantitatively measure. With the analysis of more MLS franchises, a
database of BSIs could be built and reliability would be increased.
The BSI utilised in this study has been specifically tailored for a sporting franchise in the
North American market, the factors within the BSI can be weighted differently in
accordance with the brand they’re measuring. This means that the BSI can be applied to
any franchise within any industry. For example, if the BSI were to be used to analyse
McDonald’s brand strength, factors such as Societal Role will player a bigger role in the
fast food industry; therefore the Societal Role could be weighted to have a certain
percentage more of an impact.
xxxiv
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xli
Appendices
A. Major League Soccer
A.1. Maps of MLS teams
(Duke 2015)
A.2. Evolution of MLS logo
(Blade 2014)
xlii
A.3. Evolution of Dallas Stars Logo
(SportsLogos 2013)
A.4. Average Attendance Table
(MLS Soccer 2015)
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
Seat
tle
So
un
de
rs
Orl
and
o C
ity
New
Yo
rk C
ity
FC
To
ron
to F
C
LA G
ala
xy
Po
rtla
nd
Tim
ber
s
San
Jo
se E
art
hq
uak
es
Ho
ust
on
Dyn
am
o
Van
cou
ver
Wh
ite
cap
s FC
Re
al S
alt
Lak
e
Spo
rtin
g K
ansa
s C
ity
New
Yo
rk R
ed
Bu
lls
New
En
gla
nd
Re
volu
tio
n
Mo
ntr
eal I
mp
act
Ph
ilad
elp
hia
Un
ion
Co
lum
bu
s C
rew
SC
D.C
. Un
ite
d
FC D
alla
s
Ch
icag
o F
ire
Co
lora
do
Rap
ids
xliii
A.5. Most Sold Player Shirts 2015
1. Clint Dempsey
2. Steven Gerrard
3. Kaká
4. Andrea Pirlo
5. David Villa
6. Obafemi Martins
7. Frank Lampard
8. Bradley Wright-Phillips
9. Brek Shea
10. Mix Diskerud
11. Robbie Keane
12. Sebastian Giovinco
13. Graham Zusi
14. Dom Dwyer
15. Gyasi Zardes
16. Didier Drogba
17. Giovani Dos Santos
18. Lee Nguyen
19. Wil Trapp
20. Sacha Kljestan
(MLS Soccer 2015)
xliv
B. LA Galaxy
B.1. MLS Support Map
(FOX 2015)
B.2. Player Acquisition Chart
xlv
B.3. Brand Evolution
Old New
Old New
xlvi
C. Seattle Sounders
C.1. Crest & Kit Comparison with Seattle Seahawks
xlvii
D. New York City FC
D.1. Crest
D.2. City Football Group Teams
xlviii
E. Frameworks
E.1. LA Galaxy BSI
E.2. Seattle Sounders BSI
0
2
4
6
8
10Brand Image
Brand
Ownership
Brand Culture
Heritage
Societal Role
Engagement
LA Galaxy
LA Galaxy
02468
10Brand Image
Brand
Ownership
Brand Culture
Heritage
Societal Role
Engagement
Seattle Sounders
Seattle Sounders
xlix
E.3. New York City BSI
E.4. Brand Equity Hierarchy
0
2
4
6
8Brand Image
Brand Ownership
Brand Culture
Heritage
Societal Role
Engagement
NYCFC
NYCFC
Brand Equity
Brand Loyalty
Emotional Connection
Brand Identity
Brand Image Brand Ownership Brand Culture
Differentiation
Heritage Societal Role Engagement