Thursday, March 12, 2009

WPS: Surviving the Recession

Talk about bad timing.

After so many years were spent reworking the business model of the women's pro league, it looked as though Tonya Antonucci and team might have got it right. Realizing that they will never be able to fill NFL stadiums and that they must be conservative when it comes to spending (duh!), the WPS model was a massive improvement from that of its predescessor, the WUSA.

But who would've expected that they'd be launching the league right in the middle of one of the worst economies this country has ever seen?

There have been plenty of warning signs in the last few months begging the WPS to tread lighlty and be very thoughtful in its business decisions moving forward. Already, the Arena Football League has suspened its 2009 season. The NFL and MLB have both made significant layoffs. And, minor league hockey teams across the country are closing up shop. Will this be the fate for WPS?

Let's look at the facts.

What WPS has done right:

  • Recently WPS signed a 3-year $10 million contract with PUMA. Excellent decision. (Despite the fact PUMA is trying to put our girls in skorts. Not cool PUMA, not cool.)
  • For the bargain price of $1.5 million you can purchase a WPS franchise. It's MLS counterparts cost $40 million per team.
  • Low player salaries (average salary is est. $32,000). That's right. You won't hear these players screaming, "Show me the money." They actually play because they love the sport.
  • Most WPS markets are piggybacking on local MLS team initiatives, something WUSA opposed. (Hey, I'm not big on asking for help, but sometimes you've gotta suck it up for the greater good.)
Where WPS needs some help:

  • They need more sponsors. Period. Do me a favor - Go to the website and look on the Official Partner/Sponsor page. I'm no math whiz, but I only counted 3. That's a problem. And a big one at that.
  • Fact: The majority of spectator sport fans are men. And let's face it, unless you're a dad bringing your daughter to the game, you aren't coming. (Sad, but true)
  • Where are the big names? The WUSA had players like Mia Hamm and '99 World Cup superstars. Only 2 of those stars are coming back and neither are Hamm. Sponsors need a face to get behind and the WPS needs to do a better job of marketing its standout players.

According to an article this month published by the Washington Post, the Washington Freedom has been having problems finding sponsors and ticket sale expectations are far from being met. Additionally, sponsors that the WPS thought they had in their pocket have pushed back their decisions until later this month. And playing devil's advocate, though the WPS prides itself on making significant strides in increasing its partnerships with youth soccer, just because the kids want to go doesn't mean mom and dad have the money to purchase the tickets.

Don't get me wrong, there is no one in this country who wants to see the league succeed more than me. However, desperate times call for desperate measures. I think the WPS needs to think outside of the box in it's marketing initiatives. Though it's social media component is strong, it can't stand alone. Also, corporations need to dive into its budgets and find some extra cash. The WPS does offer a unique market and for some companies, a couple thousand dollars could pay off in very big ways.

Over the next few months, we will keep our eyes on the business of WPS. Until then the question remains, "If you build it, will they come?"

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