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Published in: Journal of the Academy of Marketing Science 4/2018

25-04-2018 | Original Empirical Research

Building and leveraging sports brands: evidence from 50 years of German professional soccer

Authors: Hauke A. Wetzel, Stefan Hattula, Maik Hammerschmidt, Harald J. van Heerde

Published in: Journal of the Academy of Marketing Science | Issue 4/2018

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Abstract

Although professional sports are a major interest for consumers and a soaring contributor to economic growth, very little is known about how sports brands are built over time and what makes some sports clubs’ market performance so much stronger than others. Based on a unique dataset of 40 German professional soccer brands tracked from 1963 through 2014, this research studies how the value drivers recruitment, winning, and publicity feed sales-based brand equity (SBBE) and attendance. One of the novel findings is that not only do strong brands benefit from higher levels of SBBE, but they are also able to leverage SBBE more effectively the longer they are on the market, which widens the gap between strong and weak brands across time. We also find that the effect of the value drivers on attendance evolves from direct to indirect via SBBE. Overall, the increasing brand leverage effect yields important implications for marketing theory and for sports brand management.

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Appendix
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Footnotes
1
Please note that this criterion only leads to an exclusion of 10% of observations, mostly from the early years of professional soccer where data availability is poorer than for more recent years. We further exclude the few club-season observations where stadium size was a constraint because every game was sold out (17 observations, or less than 1% of all observations). Note that excluding these observations does not substantially alter the correlations reported in Table 2 nor the results provided in Tables 3 and 4.
 
2
As Web Appendix A shows, 15 (25) brands entered the market in 1963/1964 (later than 1963/1964), and 8 brands dropped out of professional soccer before the 2013/2014 season but continued to exist in a minor league. We leave these clubs in the sample until the last observation season to avoid left- or right-censoring issues and to prevent including only surviving brands (Bowman and Gatignon 1996).
 
3
We purposely choose to not regress the brand premium on winning percentage (e.g., Yang et al. 2009) because winning percentage is conceptualized as a driver of SBBE.
 
4
We cross-validate the information gained from FAZ with information from the web archive of the weekly German newspaper Die Zeit. Overall, the correlation between the appearance in both newspapers is .43 (p < .01, N = 1289). The correlation is lowest for the club Eintracht Frankfurt (r = .14, p > .10), which reflects headquarter location bias in the Frankfurter (F)AZ. Indeed, the ratio of media appearances in FAZ and Die Zeit is significantly higher (3.6 times higher, t = 13.31, p < .01) for Eintracht Frankfurt than for all other clubs. We correct for this bias by dividing the media coverage of Eintracht Frankfurt by this factor.
 
5
Note that in German professional soccer, the number of seasonal tickets sold is never higher than the demand for a single match. Clubs intentionally restrict the number of seasonal tickets holders to a particular share of stadium capacity to offer access for new fans and to avoid potentially empty seats. Therefore, the observed demand at a match day is a true reflection of the market interest in the respective match and so is the attendance aggregate that we use. Please note that capturing attendance annually means that match-level factors such as timing of wins or weather will average out.
 
6
Some clubs share the same city. We calculate the cross-team correlations of clubs from the same city (using the residuals from the attendance model) to test whether observations can still be treated as well-separated. Indeed, we find no significant correlation (r = .11, p > .10). Thus, no specific account for covariances in error terms is required.
 
7
The empirical distribution function represents the probability that a random variable takes on a value less than the respective value of recruitment spend.
 
8
We test the impact of number of signed youth players on SBBE for lags up to five seasons. However, we find no significant effect of any coefficient.
 
9
We also test the impact of number of signed youth players on attendance for lags up to five seasons. Again, none of the respective estimates appears significant.
 
10
We use the rounded values reported in Table 3 for exemplification. The actual values reported in Table 4 differ slightly due to consideration of all decimal places.
 
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Metadata
Title
Building and leveraging sports brands: evidence from 50 years of German professional soccer
Authors
Hauke A. Wetzel
Stefan Hattula
Maik Hammerschmidt
Harald J. van Heerde
Publication date
25-04-2018
Publisher
Springer US
Published in
Journal of the Academy of Marketing Science / Issue 4/2018
Print ISSN: 0092-0703
Electronic ISSN: 1552-7824
DOI
https://doi.org/10.1007/s11747-018-0580-y

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