Sunday, February 6, 2011

Fantasy Football & Sports Biz

Fantasy Football has arguably been the most significant sports business development over the past decade.  At the end of the day, there is not sports business without the fans.  The fans attend the games, watch on television, and buy merchandise.  The fans are the reason companies place advertisements in stadiums or have players pitch their products in commercials.  Without the fans there are no profits, and without profits there is no business.

Fantasy Football has gotten more fans involved at a deeper level than ever before.  There are now 30 million fantasy players in the United States and Canada alone, a 54% increases over the past two years (Spitznagel, 2010).  More fantasy owners means more people intensely watching games.  As stated in the video below, “Fantasy Football is the reason a fan watches a meaningless game on DirecTV.” DirecTV recently renewed their contract with the NFL to pay $1 Billion annually through the 2014 season (NFLplayers.com, 2011).  In terms of television ratings, the 2010 season was the most watched in NFL history (2011). Before fantasy football, the only interest most fans had was in how their own team performed, but now a fantasy owner has more reason to be interested in all games each Sunday. 

It is not just about the TV ratings, it is also about the affinity created between the fans and players.  Not only do fans now have a reason to watch other teams and players, but also they have more reason to like other players (for helping win their fantasy league).  Apparel companies and other third party sponsors are interested in how far a player’s brand and reach will extend.  With more notoriety for players, business opportunities can also increase.  The average American fantasy owner makes $92,750 (Spitznagel, 2010). This is a decent salary, in which disposable income can be spent on merchandise and products endorsed by players.  Is it really a stretch to imagine a fantasy owner buying the jersey of the player who helped him win his league, or that a player’s face is that much more recognizable in a TV ad because of his fantasy presence? I don’t think so!

Fantasy football has not only created a deeper interest in the game overall, but has also raised player affinity amongst fans.  Both have had a tremendous impact on the business of the game, unsurpassed by any other story from the past decade. 

NFLpalyers.com. (2011). The State of the Game: A Current Look at the Success of the League. NFL Players Association. Retrieved from http://www.nflplayers.com/Articles/CBA-News/The-State-of-the-Game-A-Current-Look-at-the-Success-of-the-League

Spitznagel, Eric. (2010). Fantasy Football: The New Internet Porn. Businessweek. Retrieved from   http://www.businessweek.com/magazine/content/10_38/b4195081511463.htm