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Building a Brand
Lessons for a Major League Soccer
Franchise
Michael Courtney
Coventry University
ii
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
iii
iv
Acknowledgements
Firstly,Iwouldlike tothankall of my familyforprovidingtheirlove andsupportthroughoutmytime
at University,especiallymyMumand mybrothers.
To my girlfriendEmilie,thankyouforbeingthere everystepof the wayandshowingme unwavering
supportthrougheverychallenge Iface.
To my housematesAdamandDan,thankyou forbeinglegends.
Thanksto CoventryUniversityandinparticular#TeamSEMfor providingme withanexcellent
platformtoproduce thisstudy.
And,finally,toSamanthaRoberts.Thankyouforabsolutelyeverythingyou’ve done toguide me
throughthisprocess.Your supporthas beenoutstandingthroughout andyouhave constantlydriven
me to pushmyself andachieve more.Once again,thankyou.
v
Abstract
The purpose of thisdissertationistoevaluate the brandbuildingstrategiesusedbyMajorLeague
Soccer Franchises.Usingsecondarydata,the resultsof thisstudy will provide new franchiseswith
the guidelinesforbrandsuccessinan increasinglycompetitive USsportingmarket.The branding
strategiesof NewYorkCityFC,Seattle SoundersFCandLA GalaxyFC have beenanalysedthrough
the use of a newlyproposedBrandStrengthIndex in ordertoprovide these recommendations.
vi
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 SoccerFranchises 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
vii
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 YorkCity 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
viii
List of Tables
Table2.1: Defining a Brand/Branding 7
ix
List of Figures
Figure4.1. Brand Strength Index 28
1
One
Introduction
1.1 ChapterOverview
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 objectivesof 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 MajorLeagueSoccer,TheEmergingBrute
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, whoexpresses the thriving thirst forexpansion
that all stakeholders possess:
“Thereisno shortageofdemandforMLS expansionteams,andwebelievetheopportunity
existsto growbeyondourcurrentplans.We will evaluatethe possibilityofgrowingthe
leagueto 28teams and establishaprocess andtimeline.”
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. Withthe huge probability of another
8 teams being added to the current total of 20 over the next few years, branding willbe
of key importance in providing competitive advantage to these new additions.
This study willanswer the fundamental research question: What strategies should an
emerging MLS franchiseusetoestablish and develop a brand? Withtheuse of
literature, this study examines the significance of branding in the sport industry,
focusing on branding as an essential focalpoint 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 workson 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 localand global scale comes
down to high fan loyalty,which has direct correlation withstrong 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 factorin 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, whichin 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 (Zack1999).
1.3 ResearchAims& Objectives
In order to answer the principal research question - Whatstrategies should an
emerging MLS franchiseusetoestablish and develop a brand? – twovery clearaims
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, willbe analysed.
Secondly, a critical evaluation of how a new franchise could exploit these strategies in
order to establish a successful brand of their ownwill be carried out. To assist the
analysis and criticalevaluation of said brand strategies, numerous objectives have been
recognised. The research objectivesof 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 OverviewofResearchMethodology
This study adopts a single embedded case study design, using US sport franchises and
soccerteams 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 Structureof the Dissertation
There are fiveintegral chapters to this research that willcontribute 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 forthis exploration; and display and inspect the findings
of this research.
Chapter Twodeliberates the theoretical foundation of this study, stressing key notions
that will impact the research. Branding willbe defined and critically reviewed through
the use of appropriate literature, providing vision and focusfor the analysis of data. In
Chapter Three, methodological reasoning for this study is provided; including the
philosophical perspective of the researcher and the purpose forthe layoutof 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 objectivesof 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 viewingcompetitive advantage as an
essential catalystin the successful emergence of a franchise, this research provides
major contributions to both academic theory and real worldapplication 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 fromthe outcomes.
This chapter has aimed tointroduce the contextual background of the study and provide
a justification for its emphasis. The aims and objectivesof the research have been clearly
represented and the methodological design has been underlined. The followingchapter
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. ChapterOverview
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 fromthis, Chapter Twowill develop a theoretical body of appropriate
literature that will support the research, underlining key facets and evaluating their
importance to the research. The fourareas of literature this study focuses on are
branding, branding in sport, branding in team sport and branding in US soccer
franchises. A criticalanalysis of these areas willprovide a wide scope of justified
theoretical background to the study.
2.2. Branding asan AreaofResearch
There is a long history of brands identifying the derivation of a product and in
distinguishing one product fromanother. 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 fortheir
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” wouldmark their cowsby 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 toevolve 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 facilitatethe
development of the relationship between the consumer and the product, whichshould
be built on trust. Tothis 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 Meffertand Burmann (1996), Aaker (1996)
and Kapferer (1992). This approach is a development of the strictly image-based
methodology in that it accounts forthe 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 towarda coherent brand that is clearly and concisely understood by
consumers (De Chernatony & Harris 2000); which,when viewedfrom the perception of
the consumer, is brand image.
2.2.1 Defining aBrand/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 whichcow
belongs to whichowner (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 “aseriesof functionaland emotionalvalues thatpromiseacertain experienceto
its stakeholders (DeChernatony, 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 fora
business is overrated and that the ideology should have remained as just an act
of marking cattle. With cynicism surrounding the powerof branding, the need
for convincingevidence of brand based equity has led to the development of a
vast array of brand-equity models (Burmann, Jost-Benz& Riley 2008). Over300
models including differentdefinitions and contrasting perspectives on brand
equity have been published (Amirkhizi 2005), contributing to confusionas 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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Table2.1: Defining a Brand/Branding
Definition Author(s)(Year)
“Thedistinguishingnameorsymbol(suchas
logo,trademarkorpackaging design) intended
to identifythe goodsorservicesof eitherone
selleror a groupofsellersand to differentiate
thosegoods andservicesfromthoseof
competitors”
Aaker (1996: 7)
“Abrandis a distinct product,service, or
business,andbrandingisthe act of impressinga
product,service,or businessona consumer,or
set of consumers.”
Vaid & Campbell (2003: 2)
‘‘Brand is aname givento a product or service
from a specific source.Usedin this sense
‘’brand’’ issimilar to the current meaningof the
word’trademark’.’’
McLaughlin (2011: 1)
“Abrandis a name,term, sign,symbol,or
design,ora combinationofthese,that identifies
the makeror sellerof a productor service”
Armstrong & Kotler (2010: 255)
“Abrandcan bedefinedas a seriesoffunctional
andemotionalvaluesthatpromisea certain
experienceto its stakeholders”
De Chernatony, Drury & Segal-Horn (2004: 1)
“consumers’perception oftheoffering – howit
performs,howit looks,howit makes onefeel,
whatmessageit sends”
Rayport & Jaworksi(2001: 5)
“Abrandis a customerexperiencerepresented
by a collectionof imagesandideas;often,it
refersto a symbolsuchas a name,logo,slogan,
anddesignscheme.Brandrecognitionand
otherreactionsare createdby the accumulation
of experienceswiththe specific productor
service,bothdirectly relatingto its use,and
throughthe influenceof advertising,design,and
mediacommentary”
American Marketing Association (2015)
“Brandingiswhenthat ideaor imageis Brick Marketing (2015)
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marketedso that it isrecognizablebymoreand
morepeople,andidentifiedwith a certain
serviceor productwhen thereare manyother
companiesofferingthe sameserviceorproduct”
“Brandingisaboutunderstandingthebrand
valuesandpositioning,anddevelopingan
expressionacrossthevariousmedia”
Baldwin, J & Davis, M. (2006: 8)
“Abrandis mainlya differentiationdevice:the
livingmemory andthe 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
focussolely on the differentiation that possessing a brand can provide. Later
definitions fromRayport & 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 practicaland emotional values that
propose a certain experience to its stakeholders.
The objectives set as a basis forbranding strategy include building
differentiation from other brands; Muncy (1996: 411) states that “differentiation
is regardedasthe lifebloodofsuccessful brandmarketingand advertising.” Aswell
as that, a brand strategy also helps create awareness, reputation and
prominence in the marketplace (Weitz& Wensley 2002). Identifying these
objectivesis 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 “brandstrengthmayreflect macro brand
considerationssuchasmarket leadershipormarketshareposition,as wellas more
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micro brand considerationssuchas consumerfamiliarity,knowledge,preferences,
or loyalty.” Thisopinion contrasts in complexity in comparison to Chuah (2008:
11) who believes a successful brand is one that “meets anadditionalemotional
need.” This study will interpret success by understanding a combination of these
twointerpretations, in that a successful soccer team utilizes the high level of
emotion of soccerfans in order to gain on macro and micro brand
considerations.
2.3. BrandinginSport
According to Petrović,Milovanović and Desbordes (2015), today’s global sports industry
is worthbetween $350 Billion and $450 Billion. Soccerremains the king of all sports;
global revenues equal $20 Billion yearly.In Europe alone, soccer is a $16 Billion
business, withthe fivebiggest leagues accounting forhalf 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 connectionwith
their audience. This connectionis achieved by brands that reflectcustomers’ 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), whostate that the ‘attractive appearance’ and ‘marketable lifestyle’ of an athlete
will contribute towards strong brand equity. Auto racing driver Danica Patrickand
Tennis player Roger Federer, famed fortheir ‘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 (Yahoo2009; SAB
2007). The twofactorsmentioned 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 tworeasons; firstly, brand loyalty ensures a
more stable followingeven 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 productto 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 witha brand. Donavanet al. (2005) also foundthat individuals’
personality traits influence their identification and loyalty witha sports entity. Whilst
many researchers argue that competitivebalance is a key factor forthe attractiveness of
a certain athlete, team or league, as it guarantees an uncertainty of the outcomeof
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 (Tajfeland 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 effecton 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 wellas consumers associating the brand with themselves, brand
association withanother company is also recognized to boost consumer engagement
and brand equity;this is commonly knownas sponsorship and the results are a
consequence of brand image transfer between the companies (Gwinner & Eaton 1999).
According to Schwarzand 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) whodefines sponsorship
as “(1) buyingand(2),exploitinganAssociationwithanevent,the team,a group,etc, for
specific marketing(communications) purpose”andJavalgi et al (1994: 48), whostate that
it is “Theunderwritingofa specialeventto supportcorporateobjectives byenhancing
corporateimage,increasingawareness ofbrands,ordirectlystimulatingsales of products
andservices.” As research and knowledge of the subject has grown, these traditional,
transactional viewson sponsorship have been evolvedto realise the benefit of an
agreement forboth parties (Meenaghan 2002), such as Farrelly and Quester (2005: 211)
whodescribe sponsorship as “a formof exchangebetweensponsorandtheentityit
investsin, with bothpartiesseekingto achieve theirown strategicgoals.” Thisstudy
adopts this definition of sponsorship as it coincides withthe 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 witheach other’s image (Gwinner& Eaton
1999).
Keller (1993: 3) defined image as “perceptionsabouta brandas reflected by the brand
associationsheldinmemory”,“andthetransferof it is acknowledgedinacademic
literatureto be oneof theprimary reasonsfororganisationsto considersponsorshipas
part of anymarketingcommunicationsstrategy (Gorse2013: 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 werea 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. “Thegoals thatmight bepursuedby thefootballclub by meansof
this partnershiparethetypical goals of a commercialsponsor:reachingaworldwide
audienceto enhancebrandawareness andbuildingbrandimagethroughtransferof
associationssuchasexcitement,passionfor performance,oruniqueheritage (Gross 2015:
26).” This evidence shows that the “typicalsponsor” and “typicalsponsee” 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. BrandinginTeamSport
Branding within team sport is distinct fromgeneral branding in sport due toa 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)
“Successfulsportsteam cultivate a distinct brandimageandseek to capitalizeonthe
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oftentimesextremeemotion-ladenresponseoftheirfans.” Sports fans attain strength and
a sense of identity from their affiliationwith a team (Wann & Branscombe 1993). This
point is agreed upon by Ashford and Mael (1989) whodescribe 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 involvedwith 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) whichmay 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
playersalaries, franchiserelocation,andplayermobility,however,threatenthespecial
relationshipbetweenfansandsports teams bycreating psychological(orreal) distance.
(Milne & McDonald1999: 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 wouldbe 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”,whichbrings a certain
sense of community to sports teams (Underwood,Bond, & Baer 2001). Social
psychologicalresearch focused on sport has documented the effectsof such strong
group identity (Simons & Taylor1992). This development of community creates strong
brand-building opportunities within a brand strategy; Schwarz and Hunter (2008: 211)
suggest that “themain goalof communityrelationsis to fostergoodwillinthe community
anddevelopa long-termrelationshipwithindividuals andthecommunityas 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 followingthe 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
conceptualizationofcommunitymaynot becongruentwith moderntechnological
advancesthatrender geographicalboundaries meaningless andfindthatsufficient
evidenceexiststo supportthe notionthat consumptioncommunities arenotboundby
13
spatialconstraints.Communities maybeconceivedandnurturedin the physicalworldas
wellas the virtualworld.”
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 twoclear points; “First,thoseteams that have
morecontroloverthe stadium,its ancillaryactivities andrevenuesources arelikely to
generatemorerevenuesfromthe stadium-relatedextensions.Suchenhancedcontrolalso
allowsforincreasedmarketingactivity and consequentlyincreasedbrandawareness.
Second,the stadiumtraditionanddesignmay playan importantpartin the development
of brandequity.Certain stadiumspossess significanthistories,whereas others aremore
generic.A sportconsumer’sbrandassociationsmay beenhancedwhenthestadiumitself
playsa part in theattendingor viewingexperience.” Thesesentiments 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. BrandinginUS SoccerFranchises
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 reflectthe core
values and beliefs of the consumers (see section 2.4) (Berry 2000), withmany referring
to the history and tradition of the localmarket and consumers, due to the effectthat has
on fan loyalty,continuity and growth (Passikoff 1997). However,although many teams
have taken measures to enable growth, “Itis no secret that soccerin 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).” Partof the reason for this, Jensen and Sosa (2008) claim,
is that although strategies have been implemented to try and gain more loyalty from
14
established fans; many potentially rewarding audiences, such as Mexican-Americans,
Hispanics and Chicanos have not yetbeen engaged by marketing activity.
The failure to engage new consumer audiences may be rectifiedby 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 DavidVilla move to the MLS; with clubs’ aims being to benefit from these players’
marketable profiles, whichcontribute 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 factorsin assisting the league’s growth (Lopez2006).
Although this strategy has its benefits, Scott(2011) and Francis (2011) suggest that this
strategy couldbe a bad case of history of repeating itself. In 1975, Brazilian soccer
player Pele signed for the New YorkCosmos in the North American SoccerLeague
(NASL), and whilst the league saw tremendous success during his playing career, the
league folded in 1984, just 6 years after he’d retired. “ManyEuropeansequateMLSto its
U.S. predecessor,theNASL,and it is oftenreferred to as a “retirementleague”,knownfor
attracting famousforeignplayers whosebestplayingdays havepassedbyofferingeasy
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 fromEurope’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
“thesigningof SebastianGiovinco was oneof themost importantand successfulsigningsin
the historyof theleague.It’s veryimportantfor us to have everyoneunderstandthatthisis
not a retirementleague.Whilethereare a handfulof guys – DidierDrogbaandSteven
GerrardandFrank LampardandAndreaPirlo -who are towardthe endof their careers,
Sebastianmadethisdecisionin the primeof his career.He madeToronto FChis club of
choice whenhe hadmanyother options (TorontoSun 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 soccerfranchises in
an effortto synthesise the literature in order to construct a conceptual background, and
subsequently deliver direction for the data collectionphases 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 conceptthat 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 factorsand 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-revisedbrand
strategy can improve the macro factorsof a US soccer franchise such as market
leadership and market share position, as well as improving micro factorssuch as
consumer familiarity,knowledge, preference and loyalty.This study is designed to
evaluate if this is indeed the case, and subsequently provides a criticalanalysis of each
contributing factor. The findings of this study are presented in Chapter Four.
The followingchapter 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 criticalanalysis of branding, branding in sport, branding in team sport
and branding in US soccerfranchises 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 collectionand analysis methods
used, whilst underlining the philosophical standpoint of the researcher. Ethical
reflections forthis research are discussed and key initial findings from preliminary
phases of the research process are given.
3.2. PrimaryData
Defined as original data that is collected by the researcher fora particular purpose (Hox
& Boeije 2005). Primary data can be collectedthrough 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.
Table3.1: Advantages and Disadvantages of Primary Data
Advantages Disadvantages
Data is collectedfirst hand by the
researcher, ensuring more controlover
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 collectedmust be appropriate and
necessary for the study.
Further data can be collectedthroughout
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
(Kowalczyk2014).
Primary data can expend many resources
of the researcher, due toprimary data
usually requiring high investment in both
time and money. This is often the main
reason forprimary 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. SecondaryData
This is defined as data that has been collectedby others, originally attained fora
different purpose (Frankfort-Nachmias& Nachmias 1992). The secondary data sources
that will be utilised in this study willbe previous historical data, officialstatistics,
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 forthis study.
Table3.2: Advantages and Disadvantages of Secondary Data
Advantages Disadvantages
Providescomparative and relative data for
the study (Saunders et al 1997).
Lackof controlover the data, whichmeans
it must be checkedthoroughly 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 (Denscombe2007).
Will have been collectedfora particular
purpose, whichmay 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 collectionmethod for this study.
3.4. CaseStudyDesign
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 factthat 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 focusedon factors of brand equity in Major
League Soccerfranchises, whilst drawing from the strategies employed by LA Galaxy,
Seattle Sounders and New YorkCity FC (NYCFC).
Although Hird (2003) was critical of case studies fortheir paucity of rigor,
representatives and generalisability, Yin(2009: 53) suggests that “theevidencefrom
multiplecasesis often consideredmorecompelling,andtheoverallstudyis therefore
consideredmorerobust.” Ritchieand Lewis (2003) agree, and state that case studies
provide a flexible background fornumerous data collectionmethods. 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 classificationof 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
(Pannucciet al 2011). This research will principally use qualitative data, whilst
integrating elements of quantitative data in order toprovide 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. ChapterOverview
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 conceptualmodel that explains the
relationship between brand strategies and key brand factors.
4.2. MajorLeagueSoccer inaCompetitiveNorthAmericanMarket
The birth of MLS relates backto 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 wouldset up a
professional soccerleague. In 1996, the league was inaugurated with just 10 teams,
whichwere 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 Officerof MLS announced a revamped brand
identity for the league, stating “In thelast 18 months,wehaveintroducednewteams,new
soccer-specificstadiums,an eightyear,multi-milliondollarmediarights partnership,and
ourownershavemadesignificant investments to signworld-class athletes.Together,these
elementshaveledto the realizationthatourcurrent brandis no longeraproper
representationoftheleaguewe areand wantto become. Our new brandandcrest are the
resultof an iterativeprocessthat has helpedus betterunderstandtheworldin which we
operatein. Theoutcomeisnot an evolution,buta revolution. (LAGalaxy 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 colourspay tribute to the nations MLS
represents: the US and Canada. While the design is intended to say “soccer” withoutthe
literal ball and boot of its predecessor, the flexible nature of the brand willalso allow
clubs to adopt the league crest in their own unique colourschemes, reinforcing a
20
focused commitment to put clubs, country and community first (MLS Soccer 2014). See
Appendix A2 forevolution 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 corporateentity. There aren’t many
organic, legacy soccerclubs 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 controlover all participating teams. In
essence, a franchise in North American sports is comparable to a franchise in retail or
the fast foodindustry. 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 corporateowner are put in place to
ensure a uniform brand.
Sports franchises, like fasts foodfranchises, are movable. There are many reasons this
may occur,such as issues withfinances, lackof 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 withpowerful connotations and
one that provides a meaningful connectionbetween the franchise and their new city
(See Appendix A3 for evolutionof logo). This meant the team was able to substantially
grow their fan base and have enormous support in twomajor 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 overallbrand equity. These key factors should therefore underpin brand
marketing strategies forMLS franchises in the highly competitive North American
environment in whichthey operate.
21
4.3. LA GalaxyFC: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 fivetimes. 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'renotjust tryingto win
the MLSCup. We'redrivento set a newa tone,a new levelanda new platformfor this
brandand thisteam worldwideandinternationally (ESPN2012).”
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 forchart 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 forhis recruitment, with brand image transfer playing
a huge role. As aforementioned in Chapter 2.6, the New YorkCosmos employed this
strategy withthe signing of Pele. Toavoid the mistake made by the doomed NASL, LA
Galaxy tookmeasures 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 fromgold and green to an optic white with navy blue accents on the sides. This
colourscheme 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 colourgold,
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,
“AQuasar isthe heart of a galaxyandgenerates incrediblelightandenergy”,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 focalpoint
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 wellas 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 witha long term vision. At the time, Donovan was a young, all-American
forwardwith 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
soccerplayer of all time (Guardian 2015). Whilst LA Galaxy couldnot have predicted the
success Donovan wouldgo 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 Donovansigning. The hometown connectionthat 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 Soccer2016).
In 2015, LA Galaxy signed GiovaniDos Santos, a former member of Barcelona’s youth
system withexperience at various teams around Europe and over 90 caps forMexico. 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’spopulation (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
Soccer2015). 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 localcommunity. 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 clubhas
also hired a design and branding company to rebrand the stadium, aiming to better
23
communicate their heritage and reinforcethe StubHub Center as the home of the Galaxy
(Soccerex2015). 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. SeattleSoundersFC: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 Soccer2015), over11,000 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 Microsoftand 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 twodistinct 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 colourscheme 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 withthat of Allen’s Seahawks, suggesting the two
brands are synonymous withone another. As well as colours,the twoteams 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 withan 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 votewent 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 footballand
soccermatches; “asthe referendumdrewnear,supportfor the stadiumgrew.On Election
Day,morethan 1.6million peoplecastballots in avote so closethe resultwasn’t known
until the nextmorning.Eventuallywordcame:thestadiumhadpassedbya mere 36,780
votes,a marginof 51%to 49% (The Guardian 2015).” Fred Mendoza, an attorney
24
working on the referendum, claims “Thereis no questionthe soccervotewas 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
whichthey 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 fiercecontest 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 (ESPN2015). Though soccerclubs of both cities have ferociously
competed for over45 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. “Manyof
the city'sresidents,restaurantsandbars areawareof the rivalry,especiallyaroundmatch
day,and it risesto the levelof a "bigevent"in that eventhe peoplewho aren'tnormally
tunedin to the sportknow what's goingon.It's thatbig-gamebuzzthata city gets
sometimes,andit'subiquitousevenifyou'renotlookingfor it or payingattention(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’ newfoundconflictwithLA Galaxy, whichhas 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 quickto
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 conferenceand our league (LA Galaxy 2015).”
Evenwith an average ticket price of $129.46, whichis $34.72 more than second highest
Houston Dynamo at $94.74 (Forbes 2015), Seattle’s attendance figures express the
extent of their connectionwith their fans. A big factorsurrounding 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 withthe localpeople, thus increasing loyalty (as mentioned in
Chapter 2.5). As well as engaging the localcommunity, the Sounders have identified the
potency of the Hispanic market, collaborating withformer midfielder Gonzalo Pineda
25
and Street SoccerMexico 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 effectof growing the Sounders brand
globally (ESPN2010). This point was reiterated by LA Galaxy’s Alexi Lalas, who
incredulously commented on the signing, stating “EddieVedderofPearlJam wouldhave
a betterchance of making an impactat Seattle Sounders thanFreddieLjungberg (Tribal
2012)."
In 2013, the Sounders signed Clint Dempsey. With what was marked as “thebiggestMLS
signingsince DavidBeckham (Sounder at Heart 2016)” by fans; his move back to the US
signalled the return of a USMNThero, 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 catalystin developing brand affinity between the club and
fans. Shirts with ‘Dempsey’ on the backsold 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 fulllist). Jordan Morris is a signing that has had a
similar impact to that of Dempsey’s; with headlines such as “JordanMorris:hometown
hero,Seattle star,symbolforthe future of MLS (Score2016)” 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 YorkCityFC: 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 YorkYankees (20%). CFG are owners of 3 other clubs around the world; they bring
a vast amount of experience in footballstrategy 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
tremendouslysuccessful Baseball teamwithahuge international brand(2nd
mostvaluable
sportsteam onearth) and an impeccable understandingof the local market(Forbes2015).
The club’s logo is “inspiredbythe oldNew York City SubwayToken,createdbythe Transit
Authorityin 1953and usedfor 50years as the standardfarefor a ride.The lastversionof
the tokenhad a cut out pentagoninthe centre representingthefive boroughs,similarto
whatappearsoneither sideof the monogram,to reinforcethe Club’s connectionto the
entire city. Thecircle is also a symbolofunity, wholeness andinfinity,andis often
associatedwithpotentialandthe numberone. Thecolours navyblue,white andorange
are drawnfromthe New York City flag (NYCFC 2014).” The final decision on the club’s
crest was made by over100,000 supporters in a voteimplemented in order to give the
fans a voicein the franchise, enabling the foundations of a connectionto be built from
the very beginning.
In further efforts to connectand 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 clubto bond with the local community,
they have come under mass scrutiny fortrying 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 forbeing too forceful,their attempts at
antagonising a rivalry have deemed successful. The ‘Hudson Derby’ between NYCFC and
the New YorkRed 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’ (ESPN2015).
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. “Thearrivalof NewYork City FC this seasonledmany
to think the Hudsonderbywouldneedamanufacturedsenseof drama.Thinkagain (BBC
2015).”
NYCFC play their home games at the Yankee Stadium. An arena owned and played in by
the New YorkYankees. 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 ownsoccer specific stadium in one of New York’s fiveboroughs, 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 DavidVilla. All three of these players have played
their wholecareers 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, withVilla in fifthand Lampard in seventh (MLS Soccer2015). 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. Lessonsfora MajorLeagueSoccerFranchise
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 accordanceto six key brand factors.As
established throughout this report, brand identity and differentiation provide an
emotional connection,leading to brand loyalty and overallbrand equity (See Appendix
E4 forBrand Equity Hierarchy). The factorshighlighted in the graph below are key
components that make up brand both identityand differentiation,thus supporting brand
equity.
28
Figure4.1. Brand Strength Index
BrandImage –Theextent to whichthe brand’s total personality is recognised.
BrandOwnership – Clarity of the brand’s message and what it stands for; the
expression of an independent brand possessing its ownidentity.
BrandCulture – The ideas, values, ethos and social behaviours of a brand.
Heritage– The story and history behind a brand.
Societal Role– Thebrand’s involvement and integration with the community and
society it operates in.
Engagement– Both tangible and intangible; the levelof involvement between the brand
and its consumers.
These factorsare 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 toolfor wider brand
considerations(as aforementioned in Chapter 2.4). Sounders, forexample, 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
focusinto a design that aids internationalisation and attracting a global fan base.
0
2
4
6
8
10
Brand 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 withthe fans and get real-time
feedbackon the fans desired brand identity.
Due to the stature of soccer in the US, tacticalplayer acquisition is a very integral brand
building strategy; with experienced ‘big name stars’ that have played in Europea
common, prosperous choiceamongst 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 withthe
unengaged Hispanic community of the city,whilst the acquisition of ‘US hero’ Donovan
and the development of ‘home townhero’ 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, withthe
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
Donovanand Dempsey have fortheir 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 fortheir ownstadium.
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
effortsin this conceptare minimal, whichis expressed in the lack of engagement
between the club and their localcommunity, 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 connectionsin 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 profitpotential.
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 overcomea wholecity and engage even the most unaware of publics. Seattle’s
rivalry with Portland Timbers has been embedded into the clubs’ heritage and culture,
whichhas enabled the clubto 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, whohave managed to nurture
their rivalry with NYRBand develop their bond with the fans.
The overall brand strength ratings for each team (LAGalaxy: 46, Seattle Sounders: 45,
NYCFC: 38) provides an insight into the impact of each company’s strategic planning. LA
Galaxy’s sole focuson internationalisation has provided them with high brand image,
but their failure to realise the importance of a strong connectionwith 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 withstrong 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 ChapterOverview
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 RecommendationsforanEmergingMajorLeagueSoccerFranchise
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 fromthe 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.
PlayerAcquisition
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. DavidBeckham)
 ‘American Legend’ (e.g. Clint Dempsey)
 Home Town Hero (e.g. Jordan Morris)
32
Learnings fromthe case studies suggest a player that matches these credentials will
enable a team to create a strong basis forestablishing recognition and prestige, whilst
nurturing the emotional connection between the club and the fans.
StadiumUtilisation
A key recommendation fora new franchise wouldbe to ‘link’ with an existing sports
team in the area. As the examples of Sounders and NYCFCshow, this strategy enables a
franchise to gain from positive image transfer and provides a footholdon an already
established, highly engaged fan base.
If a franchise is opened in a city withoutan established sports team, the alternative
strategy wouldbe 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 ResearchConclusions andFutureDirection
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, focusedbrand strategies are as important as ever in
enabling a team to gain a footholdon 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 effortto understand the factors that contribute towards a franchise
gaining an emotional connectionwith 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
Whatstrategies should anemerging MLS franchiseusetoestablish and develop a
brand? Thisanalysis 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 factorsin 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 conductprimary research was a great
limitation to this study. Further research wouldprovide the chance to conductextensive
surveys that could gain stakeholder’s opinions of each club’s ratings in accordancewith
the factors in the BSI. This data would provide fans’ opinions of each brand’s strength
and the average wouldprovide 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 wouldbe increased.
The BSI utilised in this study has been specifically tailored fora sporting franchise in the
North American market, the factorswithin the BSI can be weighted differently in
accordancewith 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 foodindustry; therefore the Societal Role could be weighted to have a certain
percentage more of an impact.
xxxiv
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Toronto Sun (2015) MLS commissionersays MVPSebastianGiovinco oneof'mostimportant'
signingsinhistory [online] available from< http://www.torontosun.com/2015/12/03/atomic-
power-giovinco-is-mvp>[4 January 2016]
Tribal (2012) Lalasslams Seattledeal forLjungberg [online] available from <
http://www.tribalfootball.com/articles/lalas-slams-seattle-deal-ljungberg-222421> [8 April
2016]
Underwood,R. Bond, E. & Baer, R. (2001) ‘Building Service Brands via Social Identity: Lessons
from the Sports Marketplace’, Jounrnal of MarketingTheoryandPractice (9), 1-2
Vaid, H. & Campbell, A. (2003) Branding.New York:Watson-Guptill Publications
Van Riel, C. & Balmer, J.(1997) Corporateidentity:TheConcept,its Measurementand
Management.EuropeanJournal of Marketing 31 (5)
Wakefield, K. L. & Blodgett, J. G. (1995) ‘The effectsof customer service on consumer
complaining behaviour’, Journal ofServices Marketing 9 (4), 31-42
Wann, D. L. & Branscombe, N. R. (1993) ‘Sports Fans: Measuring degree of identification with
the team’, InternationalJournalof SportPsychology 24, 1-17
Wann, D. L. & Wilson, A. M. (1999) ‘VARIABLES ASSOCIATED WITHSPORTFANS' ENJOYMENT
OF ATHLETICEVENTS’,Perceptualand MotorSkills 89, 419-422
Weitz, B. & Wensley, R. (2002) The HandbookofMarketing. New York:Sage Publications
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SeriesVolume5), 4th edition, Thousand Oaks, CA: SAGE.
Zack,M. (1999) KnowledgeandStrategy.Boston:Butterworth Heinemann
xli
Appendices
A. Major League Soccer
A.1. Maps of MLS teams
(Duke2015)
A.2. Evolutionof MLS logo
(Blade 2014)
xlii
A.3. Evolutionof Dallas Stars Logo
(SportsLogos 2013)
A.4. Average Attendance Table
(MLS Soccer2015)
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
SeattleSounders
OrlandoCity
NewYorkCityFC
TorontoFC
LAGalaxy
PortlandTimbers
SanJoseEarthquakes
HoustonDynamo
VancouverWhitecapsFC
RealSaltLake
SportingKansasCity
NewYorkRedBulls
NewEnglandRevolution
MontrealImpact
PhiladelphiaUnion
ColumbusCrewSC
D.C.United
FCDallas
ChicagoFire
ColoradoRapids
xliii
A.5. Most Sold Player Shirts 2015
1. ClintDempsey
2. StevenGerrard
3. Kaká
4. Andrea Pirlo
5. David Villa
6. Obafemi Martins
7. Frank Lampard
8. Bradley Wright-Phillips
9. Brek Shea
10. MixDiskerud
11. Robbie Keane
12. SebastianGiovinco
13. Graham Zusi
14. Dom Dwyer
15. Gyasi Zardes
16. DidierDrogba
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 withSeattle 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
10
Brand Image
Brand
Ownership
Brand Culture
Heritage
Societal Role
Engagement
LA Galaxy
LA Galaxy
0
2
4
6
8
10
Brand Image
Brand
Ownership
Brand Culture
Heritage
Societal Role
Engagement
Seattle Sounders
Seattle Sounders
xlix
E.3. New YorkCity BSI
E.4. Brand Equity Hierarchy
0
2
4
6
8
Brand 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

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Building a Brand - Lessons for an MLS Franchise

  • 1. 1 Building a Brand Lessons for a Major League Soccer Franchise Michael Courtney Coventry University
  • 2. ii 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
  • 3. iii
  • 4. iv Acknowledgements Firstly,Iwouldlike tothankall of my familyforprovidingtheirlove andsupportthroughoutmytime at University,especiallymyMumand mybrothers. To my girlfriendEmilie,thankyouforbeingthere everystepof the wayandshowingme unwavering supportthrougheverychallenge Iface. To my housematesAdamandDan,thankyou forbeinglegends. Thanksto CoventryUniversityandinparticular#TeamSEMfor providingme withanexcellent platformtoproduce thisstudy. And,finally,toSamanthaRoberts.Thankyouforabsolutelyeverythingyou’ve done toguide me throughthisprocess.Your supporthas beenoutstandingthroughout andyouhave constantlydriven me to pushmyself andachieve more.Once again,thankyou.
  • 5. v Abstract The purpose of thisdissertationistoevaluate the brandbuildingstrategiesusedbyMajorLeague Soccer Franchises.Usingsecondarydata,the resultsof thisstudy will provide new franchiseswith the guidelinesforbrandsuccessinan increasinglycompetitive USsportingmarket.The branding strategiesof NewYorkCityFC,Seattle SoundersFCandLA GalaxyFC have beenanalysedthrough the use of a newlyproposedBrandStrengthIndex in ordertoprovide these recommendations.
  • 6. vi 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 SoccerFranchises 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
  • 7. vii 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 YorkCity 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
  • 8. viii List of Tables Table2.1: Defining a Brand/Branding 7
  • 9. ix List of Figures Figure4.1. Brand Strength Index 28
  • 10. 1 One Introduction 1.1 ChapterOverview 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 objectivesof 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 MajorLeagueSoccer,TheEmergingBrute 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, whoexpresses the thriving thirst forexpansion that all stakeholders possess: “Thereisno shortageofdemandforMLS expansionteams,andwebelievetheopportunity existsto growbeyondourcurrentplans.We will evaluatethe possibilityofgrowingthe leagueto 28teams and establishaprocess andtimeline.” 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. Withthe huge probability of another 8 teams being added to the current total of 20 over the next few years, branding willbe of key importance in providing competitive advantage to these new additions. This study willanswer the fundamental research question: What strategies should an emerging MLS franchiseusetoestablish and develop a brand? Withtheuse of literature, this study examines the significance of branding in the sport industry, focusing on branding as an essential focalpoint in attempts to communicate ever
  • 11. 2 complex and intangible messages (Davis, 2000; Goodchild and Callow, 2001) rather than the idea that branding ‘only workson 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 localand global scale comes down to high fan loyalty,which has direct correlation withstrong 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 factorin 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, whichin 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 (Zack1999). 1.3 ResearchAims& Objectives In order to answer the principal research question - Whatstrategies should an emerging MLS franchiseusetoestablish and develop a brand? – twovery clearaims 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, willbe analysed. Secondly, a critical evaluation of how a new franchise could exploit these strategies in order to establish a successful brand of their ownwill be carried out. To assist the analysis and criticalevaluation of said brand strategies, numerous objectives have been recognised. The research objectivesof 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
  • 12. 3  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 OverviewofResearchMethodology This study adopts a single embedded case study design, using US sport franchises and soccerteams 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 Structureof the Dissertation There are fiveintegral chapters to this research that willcontribute 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 forthis exploration; and display and inspect the findings of this research. Chapter Twodeliberates the theoretical foundation of this study, stressing key notions that will impact the research. Branding willbe defined and critically reviewed through the use of appropriate literature, providing vision and focusfor the analysis of data. In Chapter Three, methodological reasoning for this study is provided; including the philosophical perspective of the researcher and the purpose forthe layoutof 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 objectivesof 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
  • 13. 4 franchises. 1.6 Conclusion Embracing a modern approach to branding and viewingcompetitive advantage as an essential catalystin the successful emergence of a franchise, this research provides major contributions to both academic theory and real worldapplication 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 fromthe outcomes. This chapter has aimed tointroduce the contextual background of the study and provide a justification for its emphasis. The aims and objectivesof the research have been clearly represented and the methodological design has been underlined. The followingchapter showcases the theoretical foundation of which this research is made up by critically reviewing and analysing literature surrounding branding.
  • 14. 5 Two Literature Review 2.1. ChapterOverview 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 fromthis, Chapter Twowill develop a theoretical body of appropriate literature that will support the research, underlining key facets and evaluating their importance to the research. The fourareas of literature this study focuses on are branding, branding in sport, branding in team sport and branding in US soccer franchises. A criticalanalysis of these areas willprovide a wide scope of justified theoretical background to the study. 2.2. Branding asan AreaofResearch There is a long history of brands identifying the derivation of a product and in distinguishing one product fromanother. 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 fortheir 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” wouldmark their cowsby 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 toevolve 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 facilitatethe development of the relationship between the consumer and the product, whichshould be built on trust. Tothis day researchers have built on from previous two-dimensional approaches based around image; and an identity-based brand management standpoint
  • 15. 6 has been developed by academics such as Meffertand Burmann (1996), Aaker (1996) and Kapferer (1992). This approach is a development of the strictly image-based methodology in that it accounts forthe 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 towarda coherent brand that is clearly and concisely understood by consumers (De Chernatony & Harris 2000); which,when viewedfrom the perception of the consumer, is brand image. 2.2.1 Defining aBrand/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 whichcow belongs to whichowner (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 “aseriesof functionaland emotionalvalues thatpromiseacertain experienceto its stakeholders (DeChernatony, 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 fora business is overrated and that the ideology should have remained as just an act of marking cattle. With cynicism surrounding the powerof branding, the need for convincingevidence of brand based equity has led to the development of a vast array of brand-equity models (Burmann, Jost-Benz& Riley 2008). Over300 models including differentdefinitions and contrasting perspectives on brand equity have been published (Amirkhizi 2005), contributing to confusionas 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.
  • 16. 7 Table2.1: Defining a Brand/Branding Definition Author(s)(Year) “Thedistinguishingnameorsymbol(suchas logo,trademarkorpackaging design) intended to identifythe goodsorservicesof eitherone selleror a groupofsellersand to differentiate thosegoods andservicesfromthoseof competitors” Aaker (1996: 7) “Abrandis a distinct product,service, or business,andbrandingisthe act of impressinga product,service,or businessona consumer,or set of consumers.” Vaid & Campbell (2003: 2) ‘‘Brand is aname givento a product or service from a specific source.Usedin this sense ‘’brand’’ issimilar to the current meaningof the word’trademark’.’’ McLaughlin (2011: 1) “Abrandis a name,term, sign,symbol,or design,ora combinationofthese,that identifies the makeror sellerof a productor service” Armstrong & Kotler (2010: 255) “Abrandcan bedefinedas a seriesoffunctional andemotionalvaluesthatpromisea certain experienceto its stakeholders” De Chernatony, Drury & Segal-Horn (2004: 1) “consumers’perception oftheoffering – howit performs,howit looks,howit makes onefeel, whatmessageit sends” Rayport & Jaworksi(2001: 5) “Abrandis a customerexperiencerepresented by a collectionof imagesandideas;often,it refersto a symbolsuchas a name,logo,slogan, anddesignscheme.Brandrecognitionand otherreactionsare createdby the accumulation of experienceswiththe specific productor service,bothdirectly relatingto its use,and throughthe influenceof advertising,design,and mediacommentary” American Marketing Association (2015) “Brandingiswhenthat ideaor imageis Brick Marketing (2015)
  • 17. 8 marketedso that it isrecognizablebymoreand morepeople,andidentifiedwith a certain serviceor productwhen thereare manyother companiesofferingthe sameserviceorproduct” “Brandingisaboutunderstandingthebrand valuesandpositioning,anddevelopingan expressionacrossthevariousmedia” Baldwin, J & Davis, M. (2006: 8) “Abrandis mainlya differentiationdevice:the livingmemory andthe 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 focussolely on the differentiation that possessing a brand can provide. Later definitions fromRayport & 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 practicaland emotional values that propose a certain experience to its stakeholders. The objectives set as a basis forbranding strategy include building differentiation from other brands; Muncy (1996: 411) states that “differentiation is regardedasthe lifebloodofsuccessful brandmarketingand advertising.” Aswell as that, a brand strategy also helps create awareness, reputation and prominence in the marketplace (Weitz& Wensley 2002). Identifying these objectivesis 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 “brandstrengthmayreflect macro brand considerationssuchasmarket leadershipormarketshareposition,as wellas more
  • 18. 9 micro brand considerationssuchas consumerfamiliarity,knowledge,preferences, or loyalty.” Thisopinion contrasts in complexity in comparison to Chuah (2008: 11) who believes a successful brand is one that “meets anadditionalemotional need.” This study will interpret success by understanding a combination of these twointerpretations, in that a successful soccer team utilizes the high level of emotion of soccerfans in order to gain on macro and micro brand considerations. 2.3. BrandinginSport According to Petrović,Milovanović and Desbordes (2015), today’s global sports industry is worthbetween $350 Billion and $450 Billion. Soccerremains the king of all sports; global revenues equal $20 Billion yearly.In Europe alone, soccer is a $16 Billion business, withthe fivebiggest leagues accounting forhalf 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 connectionwith their audience. This connectionis achieved by brands that reflectcustomers’ 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), whostate that the ‘attractive appearance’ and ‘marketable lifestyle’ of an athlete will contribute towards strong brand equity. Auto racing driver Danica Patrickand Tennis player Roger Federer, famed fortheir ‘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 (Yahoo2009; SAB 2007). The twofactorsmentioned 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 tworeasons; firstly, brand loyalty ensures a more stable followingeven 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 productto be introduced. New products such as athlete or team related merchandising can be used to create additional revenue streams, even across geographical boundaries.
  • 19. 10 As aforementioned, Aaker (1997) suggests that brand personality can increase the consumers’ connection witha brand. Donavanet al. (2005) also foundthat individuals’ personality traits influence their identification and loyalty witha sports entity. Whilst many researchers argue that competitivebalance is a key factor forthe attractiveness of a certain athlete, team or league, as it guarantees an uncertainty of the outcomeof 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 (Tajfeland 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 effecton 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 wellas consumers associating the brand with themselves, brand association withanother company is also recognized to boost consumer engagement and brand equity;this is commonly knownas sponsorship and the results are a consequence of brand image transfer between the companies (Gwinner & Eaton 1999). According to Schwarzand 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) whodefines sponsorship as “(1) buyingand(2),exploitinganAssociationwithanevent,the team,a group,etc, for specific marketing(communications) purpose”andJavalgi et al (1994: 48), whostate that it is “Theunderwritingofa specialeventto supportcorporateobjectives byenhancing corporateimage,increasingawareness ofbrands,ordirectlystimulatingsales of products andservices.” As research and knowledge of the subject has grown, these traditional, transactional viewson sponsorship have been evolvedto realise the benefit of an agreement forboth parties (Meenaghan 2002), such as Farrelly and Quester (2005: 211) whodescribe sponsorship as “a formof exchangebetweensponsorandtheentityit investsin, with bothpartiesseekingto achieve theirown strategicgoals.” Thisstudy adopts this definition of sponsorship as it coincides withthe ideologies aforementioned about the relationship between sponsorship and branding and how both the sponsee
  • 20. 11 and sponsor can benefit from an association witheach other’s image (Gwinner& Eaton 1999). Keller (1993: 3) defined image as “perceptionsabouta brandas reflected by the brand associationsheldinmemory”,“andthetransferof it is acknowledgedinacademic literatureto be oneof theprimary reasonsfororganisationsto considersponsorshipas part of anymarketingcommunicationsstrategy (Gorse2013: 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 werea 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. “Thegoals thatmight bepursuedby thefootballclub by meansof this partnershiparethetypical goals of a commercialsponsor:reachingaworldwide audienceto enhancebrandawareness andbuildingbrandimagethroughtransferof associationssuchasexcitement,passionfor performance,oruniqueheritage (Gross 2015: 26).” This evidence shows that the “typicalsponsor” and “typicalsponsee” 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. BrandinginTeamSport Branding within team sport is distinct fromgeneral branding in sport due toa 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) “Successfulsportsteam cultivate a distinct brandimageandseek to capitalizeonthe
  • 21. 12 oftentimesextremeemotion-ladenresponseoftheirfans.” Sports fans attain strength and a sense of identity from their affiliationwith a team (Wann & Branscombe 1993). This point is agreed upon by Ashford and Mael (1989) whodescribe 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 involvedwith 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) whichmay 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 playersalaries, franchiserelocation,andplayermobility,however,threatenthespecial relationshipbetweenfansandsports teams bycreating psychological(orreal) distance. (Milne & McDonald1999: 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 wouldbe 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”,whichbrings a certain sense of community to sports teams (Underwood,Bond, & Baer 2001). Social psychologicalresearch focused on sport has documented the effectsof such strong group identity (Simons & Taylor1992). This development of community creates strong brand-building opportunities within a brand strategy; Schwarz and Hunter (2008: 211) suggest that “themain goalof communityrelationsis to fostergoodwillinthe community anddevelopa long-termrelationshipwithindividuals andthecommunityas 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 followingthe 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 conceptualizationofcommunitymaynot becongruentwith moderntechnological advancesthatrender geographicalboundaries meaningless andfindthatsufficient evidenceexiststo supportthe notionthat consumptioncommunities arenotboundby
  • 22. 13 spatialconstraints.Communities maybeconceivedandnurturedin the physicalworldas wellas the virtualworld.” 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 twoclear points; “First,thoseteams that have morecontroloverthe stadium,its ancillaryactivities andrevenuesources arelikely to generatemorerevenuesfromthe stadium-relatedextensions.Suchenhancedcontrolalso allowsforincreasedmarketingactivity and consequentlyincreasedbrandawareness. Second,the stadiumtraditionanddesignmay playan importantpartin the development of brandequity.Certain stadiumspossess significanthistories,whereas others aremore generic.A sportconsumer’sbrandassociationsmay beenhancedwhenthestadiumitself playsa part in theattendingor viewingexperience.” Thesesentiments 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. BrandinginUS SoccerFranchises 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 reflectthe core values and beliefs of the consumers (see section 2.4) (Berry 2000), withmany referring to the history and tradition of the localmarket and consumers, due to the effectthat has on fan loyalty,continuity and growth (Passikoff 1997). However,although many teams have taken measures to enable growth, “Itis no secret that soccerin 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).” Partof the reason for this, Jensen and Sosa (2008) claim, is that although strategies have been implemented to try and gain more loyalty from
  • 23. 14 established fans; many potentially rewarding audiences, such as Mexican-Americans, Hispanics and Chicanos have not yetbeen engaged by marketing activity. The failure to engage new consumer audiences may be rectifiedby 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 DavidVilla move to the MLS; with clubs’ aims being to benefit from these players’ marketable profiles, whichcontribute 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 factorsin assisting the league’s growth (Lopez2006). Although this strategy has its benefits, Scott(2011) and Francis (2011) suggest that this strategy couldbe a bad case of history of repeating itself. In 1975, Brazilian soccer player Pele signed for the New YorkCosmos in the North American SoccerLeague (NASL), and whilst the league saw tremendous success during his playing career, the league folded in 1984, just 6 years after he’d retired. “ManyEuropeansequateMLSto its U.S. predecessor,theNASL,and it is oftenreferred to as a “retirementleague”,knownfor attracting famousforeignplayers whosebestplayingdays havepassedbyofferingeasy 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 fromEurope’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 “thesigningof SebastianGiovinco was oneof themost importantand successfulsigningsin the historyof theleague.It’s veryimportantfor us to have everyoneunderstandthatthisis not a retirementleague.Whilethereare a handfulof guys – DidierDrogbaandSteven GerrardandFrank LampardandAndreaPirlo -who are towardthe endof their careers, Sebastianmadethisdecisionin the primeof his career.He madeToronto FChis club of choice whenhe hadmanyother options (TorontoSun 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 soccerfranchises in an effortto synthesise the literature in order to construct a conceptual background, and subsequently deliver direction for the data collectionphases of this study. This critical review has acknowledged key gaps in understanding that this study aims to address.
  • 24. 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 conceptthat 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 factorsand 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-revisedbrand strategy can improve the macro factorsof a US soccer franchise such as market leadership and market share position, as well as improving micro factorssuch as consumer familiarity,knowledge, preference and loyalty.This study is designed to evaluate if this is indeed the case, and subsequently provides a criticalanalysis of each contributing factor. The findings of this study are presented in Chapter Four. The followingchapter presents the philosophical and methodological contemplations of this study and key findings from the initial stages of the research process are discussed.
  • 25. 16 Three Methodology 3.1. Chapter Overview In Chapter Two,a criticalanalysis of branding, branding in sport, branding in team sport and branding in US soccerfranchises 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 collectionand analysis methods used, whilst underlining the philosophical standpoint of the researcher. Ethical reflections forthis research are discussed and key initial findings from preliminary phases of the research process are given. 3.2. PrimaryData Defined as original data that is collected by the researcher fora particular purpose (Hox & Boeije 2005). Primary data can be collectedthrough 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. Table3.1: Advantages and Disadvantages of Primary Data Advantages Disadvantages Data is collectedfirst hand by the researcher, ensuring more controlover 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 collectedmust be appropriate and necessary for the study. Further data can be collectedthroughout 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 (Kowalczyk2014). Primary data can expend many resources of the researcher, due toprimary data usually requiring high investment in both time and money. This is often the main reason forprimary data not being utilised in studies (Ghauri et al 2005).
  • 26. 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. SecondaryData This is defined as data that has been collectedby others, originally attained fora different purpose (Frankfort-Nachmias& Nachmias 1992). The secondary data sources that will be utilised in this study willbe previous historical data, officialstatistics, 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 forthis study. Table3.2: Advantages and Disadvantages of Secondary Data Advantages Disadvantages Providescomparative and relative data for the study (Saunders et al 1997). Lackof controlover the data, whichmeans it must be checkedthoroughly 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 (Denscombe2007). Will have been collectedfora particular purpose, whichmay 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 collectionmethod for this study. 3.4. CaseStudyDesign
  • 27. 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 factthat 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 focusedon factors of brand equity in Major League Soccerfranchises, whilst drawing from the strategies employed by LA Galaxy, Seattle Sounders and New YorkCity FC (NYCFC). Although Hird (2003) was critical of case studies fortheir paucity of rigor, representatives and generalisability, Yin(2009: 53) suggests that “theevidencefrom multiplecasesis often consideredmorecompelling,andtheoverallstudyis therefore consideredmorerobust.” Ritchieand Lewis (2003) agree, and state that case studies provide a flexible background fornumerous data collectionmethods. 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 classificationof 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 (Pannucciet al 2011). This research will principally use qualitative data, whilst integrating elements of quantitative data in order toprovide 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.
  • 28. 19 Four Discussion 4.1. ChapterOverview 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 conceptualmodel that explains the relationship between brand strategies and key brand factors. 4.2. MajorLeagueSoccer inaCompetitiveNorthAmericanMarket The birth of MLS relates backto 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 wouldset up a professional soccerleague. In 1996, the league was inaugurated with just 10 teams, whichwere 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 Officerof MLS announced a revamped brand identity for the league, stating “In thelast 18 months,wehaveintroducednewteams,new soccer-specificstadiums,an eightyear,multi-milliondollarmediarights partnership,and ourownershavemadesignificant investments to signworld-class athletes.Together,these elementshaveledto the realizationthatourcurrent brandis no longeraproper representationoftheleaguewe areand wantto become. Our new brandandcrest are the resultof an iterativeprocessthat has helpedus betterunderstandtheworldin which we operatein. Theoutcomeisnot an evolution,buta revolution. (LAGalaxy 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 colourspay tribute to the nations MLS represents: the US and Canada. While the design is intended to say “soccer” withoutthe literal ball and boot of its predecessor, the flexible nature of the brand willalso allow clubs to adopt the league crest in their own unique colourschemes, reinforcing a
  • 29. 20 focused commitment to put clubs, country and community first (MLS Soccer 2014). See Appendix A2 forevolution 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 corporateentity. There aren’t many organic, legacy soccerclubs 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 controlover all participating teams. In essence, a franchise in North American sports is comparable to a franchise in retail or the fast foodindustry. 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 corporateowner are put in place to ensure a uniform brand. Sports franchises, like fasts foodfranchises, are movable. There are many reasons this may occur,such as issues withfinances, lackof 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 withpowerful connotations and one that provides a meaningful connectionbetween the franchise and their new city (See Appendix A3 for evolutionof logo). This meant the team was able to substantially grow their fan base and have enormous support in twomajor 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 overallbrand equity. These key factors should therefore underpin brand marketing strategies forMLS franchises in the highly competitive North American environment in whichthey operate.
  • 30. 21 4.3. LA GalaxyFC: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 fivetimes. 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'renotjust tryingto win the MLSCup. We'redrivento set a newa tone,a new levelanda new platformfor this brandand thisteam worldwideandinternationally (ESPN2012).” 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 forchart 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 forhis recruitment, with brand image transfer playing a huge role. As aforementioned in Chapter 2.6, the New YorkCosmos employed this strategy withthe signing of Pele. Toavoid the mistake made by the doomed NASL, LA Galaxy tookmeasures 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 fromgold and green to an optic white with navy blue accents on the sides. This colourscheme 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 colourgold, 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, “AQuasar isthe heart of a galaxyandgenerates incrediblelightandenergy”,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 focalpoint 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’.
  • 31. 22 As wellas 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 witha long term vision. At the time, Donovan was a young, all-American forwardwith 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 soccerplayer of all time (Guardian 2015). Whilst LA Galaxy couldnot have predicted the success Donovan wouldgo 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 Donovansigning. The hometown connectionthat 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 Soccer2016). In 2015, LA Galaxy signed GiovaniDos Santos, a former member of Barcelona’s youth system withexperience at various teams around Europe and over 90 caps forMexico. 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’spopulation (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 Soccer2015). 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 localcommunity. 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 clubhas also hired a design and branding company to rebrand the stadium, aiming to better
  • 32. 23 communicate their heritage and reinforcethe StubHub Center as the home of the Galaxy (Soccerex2015). 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. SeattleSoundersFC: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 Soccer2015), over11,000 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 Microsoftand 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 twodistinct 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 colourscheme 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 withthat of Allen’s Seahawks, suggesting the two brands are synonymous withone another. As well as colours,the twoteams 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 withan 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 votewent 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 footballand soccermatches; “asthe referendumdrewnear,supportfor the stadiumgrew.On Election Day,morethan 1.6million peoplecastballots in avote so closethe resultwasn’t known until the nextmorning.Eventuallywordcame:thestadiumhadpassedbya mere 36,780 votes,a marginof 51%to 49% (The Guardian 2015).” Fred Mendoza, an attorney
  • 33. 24 working on the referendum, claims “Thereis no questionthe soccervotewas 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 whichthey 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 fiercecontest 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 (ESPN2015). Though soccerclubs of both cities have ferociously competed for over45 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. “Manyof the city'sresidents,restaurantsandbars areawareof the rivalry,especiallyaroundmatch day,and it risesto the levelof a "bigevent"in that eventhe peoplewho aren'tnormally tunedin to the sportknow what's goingon.It's thatbig-gamebuzzthata city gets sometimes,andit'subiquitousevenifyou'renotlookingfor it or payingattention(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’ newfoundconflictwithLA Galaxy, whichhas 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 quickto 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 conferenceand our league (LA Galaxy 2015).” Evenwith an average ticket price of $129.46, whichis $34.72 more than second highest Houston Dynamo at $94.74 (Forbes 2015), Seattle’s attendance figures express the extent of their connectionwith their fans. A big factorsurrounding 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 withthe localpeople, thus increasing loyalty (as mentioned in Chapter 2.5). As well as engaging the localcommunity, the Sounders have identified the potency of the Hispanic market, collaborating withformer midfielder Gonzalo Pineda
  • 34. 25 and Street SoccerMexico 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 effectof growing the Sounders brand globally (ESPN2010). This point was reiterated by LA Galaxy’s Alexi Lalas, who incredulously commented on the signing, stating “EddieVedderofPearlJam wouldhave a betterchance of making an impactat Seattle Sounders thanFreddieLjungberg (Tribal 2012)." In 2013, the Sounders signed Clint Dempsey. With what was marked as “thebiggestMLS signingsince DavidBeckham (Sounder at Heart 2016)” by fans; his move back to the US signalled the return of a USMNThero, 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 catalystin developing brand affinity between the club and fans. Shirts with ‘Dempsey’ on the backsold 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 fulllist). Jordan Morris is a signing that has had a similar impact to that of Dempsey’s; with headlines such as “JordanMorris:hometown hero,Seattle star,symbolforthe future of MLS (Score2016)” 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 YorkCityFC: 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 YorkYankees (20%). CFG are owners of 3 other clubs around the world; they bring a vast amount of experience in footballstrategy and branding to NYCFC; with expertise that have seen their core team, Manchester City, turn from an infamously mid table
  • 35. 26 Premier League club into two time champions in just seven years. The Yankees are a tremendouslysuccessful Baseball teamwithahuge international brand(2nd mostvaluable sportsteam onearth) and an impeccable understandingof the local market(Forbes2015). The club’s logo is “inspiredbythe oldNew York City SubwayToken,createdbythe Transit Authorityin 1953and usedfor 50years as the standardfarefor a ride.The lastversionof the tokenhad a cut out pentagoninthe centre representingthefive boroughs,similarto whatappearsoneither sideof the monogram,to reinforcethe Club’s connectionto the entire city. Thecircle is also a symbolofunity, wholeness andinfinity,andis often associatedwithpotentialandthe numberone. Thecolours navyblue,white andorange are drawnfromthe New York City flag (NYCFC 2014).” The final decision on the club’s crest was made by over100,000 supporters in a voteimplemented in order to give the fans a voicein the franchise, enabling the foundations of a connectionto be built from the very beginning. In further efforts to connectand 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 clubto bond with the local community, they have come under mass scrutiny fortrying 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 forbeing too forceful,their attempts at antagonising a rivalry have deemed successful. The ‘Hudson Derby’ between NYCFC and the New YorkRed 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’ (ESPN2015). 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. “Thearrivalof NewYork City FC this seasonledmany to think the Hudsonderbywouldneedamanufacturedsenseof drama.Thinkagain (BBC 2015).” NYCFC play their home games at the Yankee Stadium. An arena owned and played in by the New YorkYankees. The capabilities of this stadium have played a part in NYCFC’s
  • 36. 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 ownsoccer specific stadium in one of New York’s fiveboroughs, 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 DavidVilla. All three of these players have played their wholecareers 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, withVilla in fifthand Lampard in seventh (MLS Soccer2015). 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. Lessonsfora MajorLeagueSoccerFranchise 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 accordanceto six key brand factors.As established throughout this report, brand identity and differentiation provide an emotional connection,leading to brand loyalty and overallbrand equity (See Appendix E4 forBrand Equity Hierarchy). The factorshighlighted in the graph below are key components that make up brand both identityand differentiation,thus supporting brand equity.
  • 37. 28 Figure4.1. Brand Strength Index BrandImage –Theextent to whichthe brand’s total personality is recognised. BrandOwnership – Clarity of the brand’s message and what it stands for; the expression of an independent brand possessing its ownidentity. BrandCulture – The ideas, values, ethos and social behaviours of a brand. Heritage– The story and history behind a brand. Societal Role– Thebrand’s involvement and integration with the community and society it operates in. Engagement– Both tangible and intangible; the levelof involvement between the brand and its consumers. These factorsare 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 toolfor wider brand considerations(as aforementioned in Chapter 2.4). Sounders, forexample, 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 focusinto a design that aids internationalisation and attracting a global fan base. 0 2 4 6 8 10 Brand Image Brand Ownership Brand Culture Heritage Societal Role Engagement LA Galaxy Seattle Sounders NYCFC
  • 38. 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 withthe fans and get real-time feedbackon the fans desired brand identity. Due to the stature of soccer in the US, tacticalplayer acquisition is a very integral brand building strategy; with experienced ‘big name stars’ that have played in Europea common, prosperous choiceamongst 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 withthe unengaged Hispanic community of the city,whilst the acquisition of ‘US hero’ Donovan and the development of ‘home townhero’ 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, withthe 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 Donovanand Dempsey have fortheir 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 fortheir ownstadium. 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 effortsin this conceptare minimal, whichis expressed in the lack of engagement between the club and their localcommunity, which also has negative connotations for
  • 39. 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 connectionsin 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 profitpotential. 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 overcomea wholecity and engage even the most unaware of publics. Seattle’s rivalry with Portland Timbers has been embedded into the clubs’ heritage and culture, whichhas enabled the clubto 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, whohave managed to nurture their rivalry with NYRBand develop their bond with the fans. The overall brand strength ratings for each team (LAGalaxy: 46, Seattle Sounders: 45, NYCFC: 38) provides an insight into the impact of each company’s strategic planning. LA Galaxy’s sole focuson internationalisation has provided them with high brand image, but their failure to realise the importance of a strong connectionwith 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 withstrong 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’.
  • 40. 31 Five Conclusion & Recommendations 5.1 ChapterOverview 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 RecommendationsforanEmergingMajorLeagueSoccerFranchise 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 fromthe 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. PlayerAcquisition 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. DavidBeckham)  ‘American Legend’ (e.g. Clint Dempsey)  Home Town Hero (e.g. Jordan Morris)
  • 41. 32 Learnings fromthe case studies suggest a player that matches these credentials will enable a team to create a strong basis forestablishing recognition and prestige, whilst nurturing the emotional connection between the club and the fans. StadiumUtilisation A key recommendation fora new franchise wouldbe to ‘link’ with an existing sports team in the area. As the examples of Sounders and NYCFCshow, this strategy enables a franchise to gain from positive image transfer and provides a footholdon an already established, highly engaged fan base. If a franchise is opened in a city withoutan established sports team, the alternative strategy wouldbe 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 ResearchConclusions andFutureDirection 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, focusedbrand strategies are as important as ever in enabling a team to gain a footholdon 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 effortto understand the factors that contribute towards a franchise gaining an emotional connectionwith 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:
  • 42. 33 Whatstrategies should anemerging MLS franchiseusetoestablish and develop a brand? Thisanalysis 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 factorsin 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 conductprimary research was a great limitation to this study. Further research wouldprovide the chance to conductextensive surveys that could gain stakeholder’s opinions of each club’s ratings in accordancewith the factors in the BSI. This data would provide fans’ opinions of each brand’s strength and the average wouldprovide 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 wouldbe increased. The BSI utilised in this study has been specifically tailored fora sporting franchise in the North American market, the factorswithin the BSI can be weighted differently in accordancewith 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 foodindustry; therefore the Societal Role could be weighted to have a certain percentage more of an impact.
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  • 50. xli Appendices A. Major League Soccer A.1. Maps of MLS teams (Duke2015) A.2. Evolutionof MLS logo (Blade 2014)
  • 51. xlii A.3. Evolutionof Dallas Stars Logo (SportsLogos 2013) A.4. Average Attendance Table (MLS Soccer2015) 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 SeattleSounders OrlandoCity NewYorkCityFC TorontoFC LAGalaxy PortlandTimbers SanJoseEarthquakes HoustonDynamo VancouverWhitecapsFC RealSaltLake SportingKansasCity NewYorkRedBulls NewEnglandRevolution MontrealImpact PhiladelphiaUnion ColumbusCrewSC D.C.United FCDallas ChicagoFire ColoradoRapids
  • 52. xliii A.5. Most Sold Player Shirts 2015 1. ClintDempsey 2. StevenGerrard 3. Kaká 4. Andrea Pirlo 5. David Villa 6. Obafemi Martins 7. Frank Lampard 8. Bradley Wright-Phillips 9. Brek Shea 10. MixDiskerud 11. Robbie Keane 12. SebastianGiovinco 13. Graham Zusi 14. Dom Dwyer 15. Gyasi Zardes 16. DidierDrogba 17. Giovani Dos Santos 18. Lee Nguyen 19. Wil Trapp 20. Sacha Kljestan (MLS Soccer 2015)
  • 53. xliv B. LA Galaxy B.1. MLS Support Map (FOX 2015) B.2. Player Acquisition Chart
  • 55. xlvi C. Seattle Sounders C.1. Crest & Kit Comparison withSeattle Seahawks
  • 56. xlvii D. New York City FC D.1. Crest D.2. City Football Group Teams
  • 57. xlviii E. Frameworks E.1. LA Galaxy BSI E.2. Seattle Sounders BSI 0 2 4 6 8 10 Brand Image Brand Ownership Brand Culture Heritage Societal Role Engagement LA Galaxy LA Galaxy 0 2 4 6 8 10 Brand Image Brand Ownership Brand Culture Heritage Societal Role Engagement Seattle Sounders Seattle Sounders
  • 58. xlix E.3. New YorkCity BSI E.4. Brand Equity Hierarchy 0 2 4 6 8 Brand 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