The Results of a Successful Financial Boycott, Part II

[BLeonard]

I posted this on March 25th: http://www.billszone.com/fanzone/showthread.php/217838-The-Results-of-a-Successful-Financial-Boycott

Now, looks like things are getting worse for the Marlins: http://www.cbssports.com/mlb/blog/eye-on-baseball/22217974/businesses-back-out-of-deals-following-marlins-dismantling



The Marlins are already closing off portions of the upper deck at 14-month-old Marlins Park due to poor attendance, and now local businesses are backing out of deals in the surrounding areas. Charles Rabin of the Miami Herald reports three restaurants opted out of their deals to open in the nearby parking garages following the team's recent dismantling.




The two national chains -- Firefly and Tilted Kilt -- and a pizza shop called Marco's Pizza backed out of their deals over the winter. Broker Nathan A. Werner called the team's moves the "final nail in the coffin" regarding the decisions to walk away from the letters of intent.

There is the 8,500 square feet of retail space available in three of the four garages fronting the ballpark, but there is not a single business operating in the space. Leases are owned by Subway, Cafe Rubio and 100 Fire Cigars, but no stores have been opened yet. 100 Fire Cigars started paying rent in April, the other two businesses will start paying this summer.




The Clevelander bar inside Marlins Park has always done well, but it rents its space from the team, not the city. Other than that, the expected economic shot in the arm for the community has yet to materialize, and the club's decision to tear things down is a big reason why.


The Bills being mis-managed for the past 13 years (and, let's be honest, a good majority of their existence) could very well be a reason why businesses are reluctant to partner with the Bills.

Now, or the most part, I liked what the Bills did in the Draft... Hopefully, it works out and translates to wins on the football field.

-Bill

[Typ0]

on what information are you making the statement "businesses are reluctant to partner with the Bills"?

[BLeonard]

on what information are you making the statement "businesses are reluctant to partner with the Bills"?

Well, lack of ability to sell suites is a good start...

On top of that, wasn't a big selling point of the Bills Toronto Series to lure businesses to partner with the Bills at RWS?

"Regionalizing the fanbase" is just bull. Hell, I know a bunch of Bills fans that I get together with every Sunday during football season and I live in Indiana... I don't see them trying to play a "home" game here anytime soon.

Bills fans are Bills fans, period. Moving games up to Toronto (or anywhere else) isn't going to further convince Bills fans to go to RWS to go to games. The "regionalization" is for attracting businesses.

Another interesting note: I haven't seen anything regarding how much the Bills are being paid for renewing the Series... When it started, the $78 m illion figure was everywhere... This time around, nothing... Wonder why that is...?

-Bill

[Typ0]

I just don't see how that is related to the Marlin's situation though. In Florida they have all kinds of revenue generating things going on that are going into the toilet due to the status of the team. In Buffalo, you are talking about suite sales which is totally different.

In terms of the other issues you bring about ... well I guess that is part of the deal overall. However, economically most if not all of the compatible businesses have been seriously hurting for the past five or six years. We are talking spending freeze hurting in this economy for a business....


Well, lack of ability to sell suites is a good start...

On top of that, wasn't a big selling point of the Bills Toronto Series to lure businesses to partner with the Bills at RWS?

"Regionalizing the fanbase" is just bull. Hell, I know a bunch of Bills fans that I get together with every Sunday during football season and I live in Indiana... I don't see them trying to play a "home" game here anytime soon.

Bills fans are Bills fans, period. Moving games up to Toronto (or anywhere else) isn't going to further convince Bills fans to go to RWS to go to games. The "regionalization" is for attracting businesses.

Another interesting note: I haven't seen anything regarding how much the Bills are being paid for renewing the Series... When it started, the $78 m illion figure was everywhere... This time around, nothing... Wonder why that is...?

-Bill

[BLeonard]

I just don't see how that is related to the Marlin's situation though. In Florida they have all kinds of revenue generating things going on that are going into the toilet due to the status of the team. In Buffalo, you are talking about suite sales which is totally different.

So, you honestly don't see how a 13 year playoff drought can effect a business' decision on whether or not to buy a suite at a stadium? Or, be willing to sponsor the team in some way?

If you owned a business, would you rather advertise with the Bills or the Packers...? Keep in mind, Green Bay is a smaller market than Buffalo, yet most smart business people would rather associate their brand with the Packers, as opposed to the team who has the NFL's longest current playoff drought.



In terms of the other issues you bring about ... well I guess that is part of the deal overall. However, economically most if not all of the compatible businesses have been seriously hurting for the past five or six years. We are talking spending freeze hurting in this economy for a business....

Yet, they manage to find the money, if it's worth their while... In "Broke-as-hell" California, the 49ers and Levi's just agreed on a deal to name the new stadium for 20 years, $220 million... That's $11 million a year. http://espn.go.com/nfl/story/_/id/9255090/san-francisco-49ers-reach-stadium-naming-rights-deal-levis

Hell, M&T Bank was founded in WNY and has their headquarters in Buffalo... Yet, they chose to pay the Baltimore Ravens $75 million for the naming rights to their stadium for 15 years...

New Era, another Buffalo headquarted company, has sponsored the Pinstripe Bowl every year... Yet, just today, a story came out about how they are partnering with the New York Giants, to find a fan as the "Face of the Giants." http://www.giants101.com/2013/05/08/new-era-looking-for-a-fan-to-become-the-face-of-the-new-york-giants/

So, why isn't "Marketing Whiz Extrodinnaire," Russ Brandon making deals with corporations who obviously are willing to invest in the NFL product that are in his own backyard?

The simple answer is: The businesses are very likely more interested in partner with winning franchises, as opposed to those that haven't made the playoffs since the Clinton Administration.

Back to the Marlins story, ask yourself this: Isf the Marlins were selling out every game and winning, do you think Firefly, Tilted Kilt and Marco's Pizza would have backed out of the deal? My bet is, no, they would not have. The team and it's FO decisions cost the Marlins in the form of corporate sponsorship.

Likewise, the Bills team and FO over the past 13 years could very well be costing themselves corporate sponsors now, as well.

-Bill

[better days]

I just don't see how that is related to the Marlin's situation though. In Florida they have all kinds of revenue generating things going on that are going into the toilet due to the status of the team. In Buffalo, you are talking about suite sales which is totally different.

In terms of the other issues you bring about ... well I guess that is part of the deal overall. However, economically most if not all of the compatible businesses have been seriously hurting for the past five or six years. We are talking spending freeze hurting in this economy for a business....
Resturants are a business that should do WELL in FLA. Even when the Economy went into the crapper, a few Resturants closed their doors, but the doors were reopened within a year by new businesses.

[Skooby]

Our marketing team is perfect to selling stuff to suckers like us, not in the corporate world.

[delectrolux]

Again, I'm not seeing how this is successful. Exactly what, for the fans, has been accomplished?

[Typ0]

I don't see how suite sales equates to associating your brand with the team though. I have no idea who owns those suites I know that...

[BLeonard]

Again, I'm not seeing how this is successful. Exactly what, for the fans, has been accomplished?

Well, with the new stadium, the team can't be moved... But, if the owner is losing money, chances are, he'll either make changes so that he doesn't lose money, or will end up seling to someone that gives a damn about the team's success on the field.

In short, it's hitting the owner (Loria) in the pocketbook... The one place that businessmen hate to be hit.

-Bill

[BLeonard]

I don't see how suite sales equates to associating your brand with the team though. I have no idea who owns those suites I know that...

Suites are usally bought by buisness groups... If the suites aren't selling, that tells me that no businesses deem it worth the cost of renting out the suite for their clientele.

Suites are also the primary source of unshared revenue in the NFL... The more you sell, the more money you get that you don't have to share with the other 31 teams. why do you think all of the new stadiums have a bazillion suites in them? Why do you think part of the Bills renovation consists of moving the pressbox, while converting the current press box (that's at midfield) into a "50 yard line club"?

http://www.scribd.com/doc/117632321/Bills-lease-Memorandum-of-understanding

The new lease also gives NYS Officials access to a 16 person suite for every home game: http://www.sportsbusinessdaily.com/Daily/Issues/2013/03/22/Facilities/Bills.aspx

So, if the suites were selling out, why would the Bills agree to give one away...? The answer is obvious: They're not selling them, because there is little to no interest in them.

-Bill

[sukie]

I don't see any real effect of any boycott. The Marlins failed to draw big crowds last season. The location of the ballpark is the problem as much as Miami residents might argue. There are 3 major counties heavily populated and they build it in a crappy neighborhood far to south for many Palm Beach county or northern Broward county residents to travel to.

Now if the team was a winning product then perhaps the "The drive is rtoo long" excuse woses out and they all make the trip but with the stinker last season the crowds would still be ridiculously smallish.

Does anyone here think Jeffery might have been a genius baseball guy with what the Blue Jays are putting up?

[Typ0]

Those are good points....but you still haven't addressed the branding issue at all!


Suites are usally bought by buisness groups... If the suites aren't selling, that tells me that no businesses deem it worth the cost of renting out the suite for their clientele.

Suites are also the primary source of unshared revenue in the NFL... The more you sell, the more money you get that you don't have to share with the other 31 teams. why do you think all of the new stadiums have a bazillion suites in them? Why do you think part of the Bills renovation consists of moving the pressbox, while converting the current press box (that's at midfield) into a "50 yard line club"?

http://www.scribd.com/doc/117632321/Bills-lease-Memorandum-of-understanding

The new lease also gives NYS Officials access to a 16 person suite for every home game: http://www.sportsbusinessdaily.com/Daily/Issues/2013/03/22/Facilities/Bills.aspx

So, if the suites were selling out, why would the Bills agree to give one away...? The answer is obvious: They're not selling them, because there is little to no interest in them.

-Bill