Marketing > Background and History of the NFL and NBA

History of the NFL

It was in 1869 when the first soccer game took place between the college teams of Rutgers and Princeton. The game’s rules originated, but were modified form the London Football Association. In the following seven years rugby started to gain popularity over soccer and football began to develop from ruby.

In 1876 the first rules of American football were written. In the same year, Walter Camp, who we know as the father of modern football, came into contact with the game.

In 1892 William Heffelfinger became the first professional football player receiving a payment of $500 for every game he played for his team, the Allegheny Athletic Association.

1893 was the year when the AAA’s biggest opponent, Pittsburg Athletic Club signed one of its players for a whole season, creating the first known professional football contract.

In 1897 the Latrobe Athletic Association football team went entirely professional, becoming the first team in football history to play a full season with professional players only.

In 1900 William C. Temple took over the Duquesne Country and Athletic Club, becoming the first known individual club owner.

By the 1920s there were serious problems in the league. Salaries were dramatically increasing; players were jumping to teams that offered the highest pay for them, and the use of college players still enrolled in school. So these problems are now entirely new to football. At a meeting in Ohio, on August 20, the American Professional Football Conference was formed. A month later this name was changed to American Professional Football Association (APFA).

By 1921, the association’s membership increased to 22 teams. The APFA was reorganized with Joe Carr named as the president, and Carl Storck as the treasury-secretary. Carr moved the Association’s headquarter to Columbus, Ohio, drafted a league constitution, gave teams territorial rights, restricted player movements, developed membership criteria, and issued standings for the first time, so that the AFPA would have a clear champion.

On June 24 in 1922 the association changed its name to National Football League, and fielded 18 teams.¹

History of the NBA

In 1946 the league’s first basketball game was played between the Toronto Huskies and the New York Knickerbockers at Toronto’s Maple Leaf Garden. The contest had an audience of 7,090, and was won by the Knicks 68-66. This game barely resembles today’s high-scoring, fast-speed basketball games. Players did not routinely double-pump or slam-dunk, as a matter of fact they couldn’t even jump very high. There was no 24 second clock; teams could take as long as they wanted to shoot. Sounds ridiculous today, but many coaches thought that leaving the ground for a jump shoot, could only bring about problems, and was very undesirable.

On June 6, 1949 a group of sports arena owners met at the Hotel Commodore in New York City, to talk about a league what they later named the Basketball Association of America. They were composed primarily of members of the Arena Association of America, men who controlled the major arenas in the country. Their experience was with hockey, ice shows, circuses and rodeos. Except for Madison Square Garden’s Ned Irish, they had little feeling for the game of basketball. They were nonetheless aware of the money making possibilities the game could mean for them. They looked at the success of the college basketball in cities such as New York, Philadelphia and Buffalo, and thought that a professional league has all the chances to succeed.

Soon after, 11 franchises were formed to compete in two divisions. In the East division were the Boston Celtics, the Philadelphia Warriors, Providence Steamrollers, Washington Capitals, New York, and Toronto. In the West were the Pittsburg Ironmen, Chicago Stags, Detroit Falcons, St. Luis Bombers, and Cleveland Rebels.

Maurice Podoloff, former President of the American Hockey League, became the first president of the league. Three seasons later, in a merger with the Midwest-based National Basketball League, the NBA was formed.

In the first regular season, the Washington Capitals won the Eastern Division’s championship, but it was the Philadelphia Warriors who won the first championship by beating Chicago. Joe Fulks of Philadelphia was the first scoring champion with a 23.2 average, while the most accurate shooter was Bob Feerick. ²

Top 4 or 5 Companies in the Sector

In the world of professional sports the NFL and the NBA are in the elite company in their respected genre. They are the upper echelon of professional basketball and professional football. In the sector of professional sport you have other companies that are up there with the NFL and NBA, there is the MLB, NHL, and on the rise is the WNBA. These are the top four or five companies in the sector of professional sports, but in regards to the top companies within basketball and football, the NFL and NBA stands alone. There are other professional companies within the two sports but they don’t generate as much revenue, audiences, and fan base as the NFL and NBA.

In the sector of professional sports the leading companies are the MLB, NHL, NBA, NFL, and WNBA. All with there own fan based that they market to. I don’t think they are in direct competition with each other because I think they share the same desired target audience, each catering to their respective fan base.

But in the genre of football there are some companies that are within the same sector of the NFL. But no where near the capacity that the NFL has to its audience. There is the CFL, AFL, NFL Europe and NCAA Division 1A football. The CFL is the Canadian Football League, played the same season as the NFL. Football has been played in Canada for over a hundred years but the year the CFL started was in 1958. The CFL hardly gets any coverage here in the states but it has a huge fan base out in Canada. With recently setting an attendance record in 2003 with 60,000 spectators on hand.

AFL is the Arena Football League, is like a miniature faster paced version of the NFL. It is played in arena half the size of a regular football field. The season is played right after the NFL season, so it can create its own fan base with football junkies and not compete with the NFL. The AFL has recently been getting bigger with the TV contract is made with NBC to broadcast its games. Also with celebrity owners of Jon Bon Jovi and John Elway the AFL is stirring up some buzz. The AFL is sought to be the next best thing to the NFL.

NFL Europe is like a developmental league for NFL players. It is usually played in the off-season of the NFL so that players can get an opportunity to develop there skill and make a name for themselves. In a soccer crazed country, (American) football doesn’t get as much attention as here in the states but it doesn’t have a following. Many of the fans come dressed in team colors and the stadiums are usually packed. NFL Europe is a sub sector of the NFL so much support comes from the NFL.

NCAA Football, even though it is not a professional league, the impact it has on fans is tremendous. TV ratings are as high as NFL games. Fans watch the college football to see who are going to be the next stars in the NFL. The championship is a nationally televised game with very high ratings. The fan bases of the NFL are the same as college football. It doesn’t directly compete with the NFL because the games are played on Saturday instead of Sundays but I would consider this one of the top sectors in football.

To professional basketball, the place to do it is the NBA. The NBA is the leading company in the sector of professional basketball. There is no other professional league to compete with the NBA. The NBA is huge, over the last few years the impact it has made internationally is unbelievable. The NBA is watched all over the world, the person with the most vote in this years all star game was Yao Ming; he was the leading voter because this year was the first year they let China have a say in the voting process. This show how big the NBA is outside the U.S. Other pro leagues that are in the same sector as the NBA are the CBA, NBDL, and USBL. All of these are developmental leagues, when players go undrafted by the NBA. They are like semi professional leagues.

Top Executives

Paul John Tagliabue took office on November 5, 1989, succeeding Pete Rozelle, who served as NFL Commissioner from 1960 to 1989. Tagliabue first became associated with the NFL when he was hired by Covington & Burling, a Washington D. C. law firm, the NFL's principal outside counsel at the time. While working for Covington & Burling represented the NFL as an attorney in important areas, including television, expansion, legislative affairs, franchise moves, labor and antitrust cases. By 1986 Paul Tagliabue was a full partner with powerful law firm and was representing the NFL in the $1.6 billion antitrust lawsuit brought by the USFL. The NFL would lose the case, but thanks to the shrewd case presented by Tagliabue the USFL was only awarded $3. When the NFL needed to find a replacement for outgoing Commissioner Pete Rozelle, Tagliabue was a logical choice being he was already familiar with all league affairs. Taglibue's first work began in building developmental leagues for the NFL. Establishing a spring league known as the World League of American Football the league acted as a training ground for players trying to make NFL rosters. In addition Tagliabue would put expansion on the table. The first major issue for Tagliabue came up in 1992 when a court ruled the NFL's Collective Barging Agreement with players invalid because of their anti free agency rules. The ruling gave the players free agency, and had the NFL in a panic that the WLAF was put on hiatus ad expansion was delayed. However, it would only be a temporary road block as Tagliabue was able to get a new agreement with both Free Agency that made the players, while establishing a salary cap that kept competitive balance.

The WLAF resumed operations, and was renamed NFL Europe, and expansion went on with Charlotte and Jacksonville both receiving teams and grand new stadium deals.

As Paul Taglibue enters his 14th year as Commissioner the NFL sits as the gold standard of sports leagues. Although Paul Taglibue has not done nearly as much for the league as Pete Rozelle, he has not hurt any of what Rozelle has done, and that may be his biggest accomplishment.

The Canadian Football League (CFL) operates in nine leading cities across Canada . Refereeing and the recruitment and development of new officials will be top priorities for the CFL over the next few years, the league commissioner Tom Wright said. CFL will conduct a "major overhaul" of its present officiating system over the next four years. CFL officials came under fire this season for missing several key calls, including two that directly impacted the outcome of games. Tom Wright is also the chairman of the Special Olympics Canada.

David Baker became the Arena Football League Commissioner in 1997. His current contract takes him through 2007. The 18-year-old league has never seen more growth than under Baker's leadership. Attendance has risen 31 percent since 2001. The expansion team in 1995 that cost $477,000 now is worth more than $16 million. Ownership has grown with NFL Hall of Famer John Elway and rock star Jon Bon Jovi involved to add to national exposure and credibility. NBC just extended its broadcast rights for two more years. There also is af2, a farm league for the AFL. Baker is a former college basketball player and mayor of Irvine, Calif., he is 6-foot-9 and more than 300 pounds.

Created in 1997, NCAA Football is a promotional vehicle created for the betterment of college football. NCAA Football represents a coalition between NACDA (National Association of Collegiate Directors of Athletics), AFCA (American Football Coaches Association), CCA (Collegiate Commissioners Association), and NCAA (National Collegiate Athletic Association). Its mission is to improve, promote and protect the game of college football for those who play the game, for those who coach the game and for those who support the game. In the NCAA Football Division, there is not one commissioner who runs the entire league. There are chairmen for each section of the country. In Division I, there is the Atlantic Coast Conference, the Big East Conference, and the Big Ten Conference. John Swofford is the Chair of the ACC, Jake Crouthamel is the chair of Big East, and Bill Byrne is the chair for Big 10.

The impact of Marketing

Over the past twenty years, both the NBA and the NFL have been changed by the marketing world. Marketing has changed both the NBA and NFL in many different ways. First, let’s look at how marketing has impacted the athletes from these sports.

Ever since the rise of sports, the top faces of the league would be seen doing commercials for various companies. However, over the last twenty years companies using athletes to advertise their product has really ballooned. Today, popular athletes make an astonishingly large amount of money from very lucrative endorsement deals with many companies. For example, NBA star Lebron James recently signed a $90 million deal with Nike. As a result of signing this contract, Lebron James can be seen in television commercials, magazine and newspaper ads all advertising Nike products. James also must wear Nike, and only Nike products during his NBA games. This means that when people watch his games he is wearing Nike sneakers, headbands, armbands, etc. Fortunately for Lebron, Nike isn’t the only company to do this for him as he also has deals with Gatorade and Bubblicious.

This type of situation is not unusual in the NBA as their players are by far the most coveted in the world of advertising. Almost every player in the NBA has their own sneaker contract, meaning that during their game they must wear only one specific brand of sneaker. Top players like Kevin Garnett, Tim Duncan and Tracy McGrady get paid massive amounts of money to do ads for Adidas. Dwayne Wade can be seen on billboards all around town advertising for Converse. Let’s also not forget of course the man who paved the way for all of this, Michael Jordan. Jordan endorsed such products as Nike, Gatorade, watches and even investment firms. Michael Jordan by far is the most recognizable face in the sports world, and advertising is a major reason why. Even today while he is retired from basketball, he still has endorsement deals. Jordan even has his own line of separate products in Nike that pays other players such as Carmelo Anthony and Jason Kidd to endorse the Jordan name.

The players of the NFL are no strangers to this either. Star Quarterback Peyton Manning can be seen in commercials for Gatorade, Visa and Nike. Michael Vick also is seen in Nike and Gatorade ads. Vick also has his own sneaker for Nike.

Although players make large amounts of money from endorsements, both the NBA and the NFL earn much more through their deals. Companies are willing to spend a large amount of money to air commercials during NBA and NFL games. The NFL charges more money to air commercials during their games because every week they are nationally televised and their ratings are the highest. In fact, if companies want to air commercials during the Superbowl they are going to have to give the NFL millions of dollars for jus 30 seconds of air time.

Commercials aren’t the only way companies get their name seen during NFL and NBA games. As mentioned before, companies such as Nike, Adidas and Reebok pay NBA players to wear their products (sneakers, headbands, wristbands) during their games. One very popular way of advertising sneakers is for having players wear a sneaker that has not yet been released for sale to the public. This is most commonly done at All-star games and the NBA finals. Players such as Tracy McGrady are paid to where the newest pair of Adidas sneakers that comes out next month today, to get people to see the new product. Also, as you watch an NBA game you will see billboards all around the stadium for certain products. The main billboard however is at the scorer’s table, right between the two benches. The reason why this is so coveted is because it is constantly on television the whole game. Many companies pay large amounts of money to put their ads there. The NBA even rotates different ads on it through out the entire game. The NBA even has a deal with Reebok to make all of their team jerseys, as well as all of their replica jerseys available for sale to the fans.

The NFL is no stranger to these techniques as well. Reebok also has a contract to make all NFL jerseys. Players are also paid to wear the products on the field (cleats) as well as in practice as well. If a player such as Michael Vick is endorsed by Nike, then the t-shirt he wears during his workouts must be Nike. Anybody that sees Michael Vick must know he only uses Nike. Advertisers also spend money to get their name said during pregame, half time or the post game. This is why you will see things such as “The Prudential Half Time Show” or “The Fed Ex Post Game Show”.

The final way marketing has impacted the NBA and NFL is that they themselves now advertise their own product. For example, before the start of the 2004-2005 NBA season, the NBA for the first time developed a massive marketing strategy. Star players such as Kevin Garnett and Yao Ming go to the NBA store and sign autographs. They also made appearances on talk shows to let everyone know that “the NBA season is about to begin, so everyone should come and watch because it is going to be an exciting year”. They also air several commercials once playoff time arrives, showing all the exciting moments of past playoffs to let people know how exciting playoff time is. They even have their own slogan; “I Love This Game”. In fact, they even have commercials where they get famous celebrities such as Jack Nicholson and Penny Marshall to let us know that they “Love This Game”.

The NFL, although it does not market its regular season as much as the NBA does, also is pretty well known for their techniques, especially once the playoffs start. Everyone has seen their playoff ads where they show famous moments from years past. The Super Bowl itself is one of the most exploited events in the world. Ads for the “big game” start before the season even begins. There are also millions of different types of super bowl special leading up to the game that gives the NFL big money. Big money; that’s what marketing has given to both the NBA and NFL.

Impact of Technology on the Sports Sector: NBA and NFL

Twenty-five years ago, highlights on the late local news weren't a given and many games ended too late to be covered by daily newspapers. Fans’ exposure to teams and players outside their home market was even more limited. Today, fans can watch every game live, as a highlight package or even play their own NBA game through video and fantasy games. With the advent of technology, sports became a huge entertainment arena where millions of dollars are in play.

Beginning with the way coaches can access information about their teams and players as well as those they are matched against. They don’t need to depend on the drawing board or the 16mm camera at practice. Through computer software, at a click of a mouse they can access any game and any play. For one, allowing them a better chance at winning with their opponents, but also making the games more interesting for the devoted fan.

The devoted fan has the ability to access information about their favorite NBA or NFL teams through the internet. Such websites as ESPN.com, NBA.com and NFL.com provide a variety of up to date news articles, statistics, player profiles and such. Also people from around the world can enjoy this by logging onto international websites in their native languages. The internet made global access possible. Take Google for example. They launched “Google Video” where people can search the content of television programs such as the NBA. Talk about having the access to what you like.

In addition, knowing well that the fans are what make NBA and NFL be as lucrative as it is, the players themselves had taken the steps to improve their fans experiences. Thus, because of such high popularity of the internet, the players set up their own personal websites. Setting a path in which they can chat with their fans in real- time.

One can’t forget or omit that sports wouldn’t be what they are without the ability for whole masses of fans to enjoy them at the same time. Through broadcast television fans can watch their favorite sports of NBA or NFL in the comfort of their own home. See, the owners of big networks realized that. You can always get your game fix on ESPN, ABC, CBS and FOX.

They also realized that people were willing to pay a little extra just to do so. That’s how ESPN earns its living. The network provides loads of games, studio shows geared toward the sports in general, NFL and NBA enthusiasts.

But just watching a game wasn’t enough. Fans wanted to interact with the TV, more so than just yelling at it when a play went wrong or someone’s commentary seemed to the contrary of what you believed. DirectTV jumped on this bandwagon. Those enamored NFL fans can enjoy the “Sunday Ticket” package on DirectTV, where they can select their own camera angles, do their own replays during broadcasts and view several games in progress on one screen.

If one would think that this would end, they’re mistaken. To further their brands, the National Football League is preparing to launch, just as the National Basketball Association had done with the “NBA TV,” their own “NFL Network.” These specialized channels show round-the- clock coverage of games and all that is to this sport, from around the world. Talk about mass reach.

Who can forget radio? You’re at work, or a dreaded family picnic and your game is on. You sure wouldn’t drag your TV set with you. But what could you do? Listen to sports talk radio. Carry a small portable piece of equipment and finally enjoy what you love: a live game or just sports chit chat.

Well, besides the national or local radio stations, satellite radio providers such as Sirius and XM saw an opportunity. They believed that the higher- tech radio will be in demand. Thus they decided to air stations strictly dedicated to non- stop sports. And so Sirius now carries all NHL games.

When mentioning portable devices, one can’t neglect the power these little cell phones hold. Wireless is in. The NBA realized that. They launched a “NBA Unwired.” Allowing fans to play video games and fantasy hoops, watch sports news on their phones, and use the voices of NBA stars as their ringtones. Also ESPN found this to be a good opportunity to spread the wealth of sports. They plan on launching “ESPN Mobile,” where owners of a special line of ESPN mobile phones will be able to read and possibly watch customized sports news.

Moving off the topic of portable devices and onto video gaming. This $1.2 billion business allows fans to duke it out as the masters of their favorite players in NBA and NFL game matches. “Madden NFL” and “NBA Street” allows gamers to not only compete but also identify with their favorite teams and players. For those that create these games, this love means repeat business. I mean would one really want to play with members of last year’s roster?

Over the years, technology improved the way in which fans access information about their favorite sports. Through cable, satellite, wireless, the internet, licensed apparel, video games and fantasy games fans can interact with sports leagues, teams and players. Furthermore marketers can get through to them better.

Executive Summary and Future Trends

The National Football League and National Basketball Association are two sports leagues that rank among the top in professional sports around the world. The N.F.L plays 16 games, mostly on Sundays but sometimes on Mondays. The N.B.A has 82 games in a season and is played almost every night of the week. The N.F.L’s commissioner is Paul Tagliabue and the N.B.A’s commissioner is David Stern. Both of these executives have made different attempts to market the game to consumers. There have been many trends that have arisen as the two leagues evolve. The N.F.L has enforced their age rule in court and Monday night football has a new home. The N.B.A enjoys their no-age rule and European players invade the game.

Monday Night football was a featured game that started at 9:15p.m. on ABC during the regular football season. On April 19, 2005 it was announced that ESPN bought the rights to the Monday night games. This is big time news because Monday Night Football has been airing on ABC since 1970. ESPN will the air the games at 8:40 p.m. to gather more viewer ship thus creating more advertising revenues.

In the N.F.L and N.B.A, the major stories or controversies around the league lately have been the drafting of younger players. The N.F.L has a strict age rule in place for players that want to enter the draft. A player must be 21 years old in order to enter the draft. Maurice Clarett and Mike Williams are two players that attempted to enter the draft under age and the N.F.L denied them. Williams was all right with the decision but Clarett decided to take the matter to court. In court, the judge sided with the N.F.L and he had to wait one more year. This rule is in place because the N.F.L is a violent game and should not be played by inexperienced young players. The opposite is happening in the N.B.A.

The N.B.A has no age rule for players entering the draft. This has made it both exciting to watch and controversial at the same time. Kobe Bryant is one of many young players that came into the league without going to college, fresh out of high school at 19 years old. He has gone on to excel in the N.B.A to heights reached only by a few great players. What kind of an effect will this have on owners and teams? Well, teams and owners are now starting to look for basketball talent down in the high school level bypassing college altogether. LeBron James is a great example of a basketball player that has recently been drafted by the Cleveland Cavaliers and has created a lot of media attention. James has created so much attention that the viewership of N.B.A basketball games doubled in his area and when nationally broadcasted. The interest in watching a young teenager play a man’s game has brought great revenues to the league. Players are leaving college earlier because contracts are getting bigger and offers are very lucrative. If the fans want to see younger players, then the teams will bring them in because fans equal revenues.

The N.B.A has found a new market with great potential. European players have been entering slowly but steadily into the N.B.A and making their presence be known. This, in turn, opens up the chance for the N.B.A to do what many other U.S. sports leagues cannot do, and that is to market to European countries to create towering revenues. Also, European players play basketball differently than in the United States. The concentration is on discipline with shooting fundamentals, passing, defense and most importantly team playing. This is great for the N.B.A because in the past ten years, the league has lacked most of the preceding characteristics at the same time losing many fans because of it.

Citations

Background of NFL and NBA:

1 NFL History

<http://www.nfl.com/history/chronology/1869-1910>

2 Goldaper, Sam. Nov. 1. 1946: New York Vs. Toronto. The First Game.

http://www.nba.com/history/firstgame_feature.html\

Impact of Technology:

1. http://sports.espn.go.com/espn/page2/story?page=espn25/innovations/25

2. Swett, Clint. “Video gaming is on a roll, as NBA, NFL lend reality a look.” LEXIS-NEXIS Academic Universe. 2 Apr. 2005.

3. Ryan, Thomas. “Sports leagues find innovative ways to appeal to a diverse fan base.” LEXIS-NEXIS Academic Universe. 1 Nov. 2004.

4. Lamb, Gregory. “Will technology ruin sports?” LEXIS-NEXIS Academic Universe. 16 Dec. 2004.

5. “Google Tunes into TV; Google video enables Users to Search TV Content from PBA, the NBA, Fox News, C-Span and Others.” LEXIS-NEXIS Academic Universe. 25 Jan. 2005.

6. Saunders, Dusty. “TV PREPARING TO PUT STARS IN THE EYES OF BILLIONS.” LEXIS-NEXIS Academic Universe. 17 Feb. 2005.

7. Hinckley, David. “A revolution via satellite: Two radio outfits alter landscape.” LEXIS-NEXIS Academic Universe. 8 Dec. 2004.

8. Griffith, Bill. “INTERACTION CUTTING EDGE NFL, DIRECTV SET TO RAISE BAR.” LEXIS-NEXIS Academic Universe. 14 Nov. 2004.

9. Nickel, Lori. “Packers, others in NFL, ever more tied to technology.” LEXIS-NEXIS Academic Universe. 2 Nov. 2004.

10. Dunn, Julie. “High tech turns NBA into globetrotter. From Interactive games to cellphone highlights, pro basketball is teaming with innovation to draft fans from around the world.” LEXIS-NEXIS Academic Universe. 17 Feb. 2005.

11. Fabrikant, Geraldine, et al. “A Cable Network of Their Own.” LEXIS-NEXIS Academic Universe. 2 Nov. 2003.

12. Raissman, Bob. “HOW MUCH IS TOO MUCH NFL AND NBA?” LEXIS-NEXIS Academic Universe. 9 Nov. 2003.

 

 

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