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VIDEOPlayoffs Keep Economy in the Game
Tickets, ad sales provide boost to struggling markets.
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With National Hockey League revenue flat for the year despite a declining Canadian dollar, many of the country’s largest markets -- including Boston, New York and Anaheim -- are looking at playoff runs; Chicago is in the playoffs for the first time in 7 years.
Detroit, of course, is experiencing sagging ticket sales, but the Columbus Blue Jackets' first-ever playoff appearance drew a record crowd of 19,219. In sports-loving Pittsburgh, the Penguins have built a Jumbotron outside their arena to bring out the locals, while every Vancouver home playoff game reportedly brings $1 million to area businesses.
The league itself has spent close to $15 million on marketing, forging partnerships with advertisers like Bud Light (BUD), Honda (HMC), Lowe’s (LOW), Ford (F) and General Motors (GM). And with national television ratings up, Cablevision (CVC)-owned regional sports channel MSG Network has been superimposing in-game advertising for Subway and New York Life (NYL), altering how TV sponsors reach fans.
The NBA has also seen large markets competing in their playoffs, including Los Angeles, Philadelphia, Miami and Boston. Not to be outdone, Cleveland has been wrapped up in superstar and Nike (NKE) posterboy Lebron James’ Cavaliers, who reportedly brought in $11 million to the local economy during each of their 2007 NBA Finals home games. With James expected to meet Los Angeles Lakers superstar Kobe Bryant in the playoffs, national TV advertisers spent $125 million through February alone, despite the frigid economy.
Meanwhile, NBA broadcaster TNT (TWX) has launched an all-encompassing marketing campaign integrating YouTube, Facebook, and Twitter marketing, broadening the reach of the NBA playoffs.
Next season is still expected to be a tough one for both leagues - but until the playoffs end, advertisers probably won’t be thinking about it too much.
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