Why fan engagement is a critical factor in sports value creation

In an era of media fragmentation and algorithmic personalisation, sport brings people together like no other form of entertainment. This was one of the assertions made repeatedly by speakers at the inaugural Deutsche Bank Sports Investment Conference.

It’s one of “the only things left in the world that people watch live,” argued Avie Glazer, Co-Chairman of Manchester United and owner of the NFL’s Tampa Bay Buccaneers, in a panel debate on how owners can create enterprise value. “It’s very powerful.”

When fans gather to follow a shared narrative at stadiums and around screens, it’s with a passion for the drama and unpredictability of whatever they are watching, as well as the unique personalities of the players. So it makes sense for those investing in a sports brand to pay attention to how fans engage with that brand, and how this engagement can be grown and deepened over time.  

Why the business of sport depends on converting fan awareness into long-term loyalty

Opportunities for building committed sports fan groups through online content and in-person experiences are potentially greater than ever, our speakers argued. Throughout the event, it was highlighted how digital platforms increasingly allow for direct interaction between fans worldwide, creating possible new revenue opportunities through avenues such as memberships, merchandise and streaming services¹.

While sport is already a major segment of the “attention economy”², continued growth demands that new fans progress from initial awareness to ongoing affiliation. Creating long-term loyalty to a sport, league or team may require a range of rewarding touchpoints to develop a deep-rooted bond, speakers suggested in a panel on women’s sport.

Another session explored how brands can use sport strategically to seek success beyond the field. Brands should avoid signing a sponsorship deal only for fans to remain in the top-of-funnel marketing stage, which may not provide a tangible return, they agreed. 

Corporate executives emphasised the value of closely tracking engagement to help ensure sports fans become more invested in partner brands over time and more willing to recommend them. Data analytics is crucial in enabling more personalised content and outreach, they concurred.

How sports brands are growing their commercial potential by winning new audiences

Derek Chang, President and CEO of Liberty Media Corporation, reflected on Formula 1’s commercial and audience growth since Liberty Media completed its acquisition³ in 2017. 

Fans can now enjoy content that is accessible round-the-clock, including the Netflix series “Formula 1: Drive to Survive” and lifestyle content created by sponsors. At racetracks, the focus has shifted to the “entire weekend experience”. 

These changes – and the variety of ways to engage with the sport, including on social media – have seen significant growth in a younger fan base while three in four new fans are female⁴. Commenting on the personal element the enterprise can instil, Chang said: “It’s not just a sport. There are characters, there are stories and these drivers have lives.”

A later panel session featured discussion of the power of women’s football to attract a more diverse and family-oriented audience than the men’s game. Creating a “celebratory atmosphere” on match days – for example, through face painting and players signing autographs – helps to serve this demographic, the audience heard.

How sports brand management helps build loyalty through good times and bad

Globally recognised club and franchise brands can maintain significant commercial appeal irrespective of annual on-field results. Panellists agreed that commercial success is not wholly dependent on sporting results, especially with a strong communications strategy.

“We all want to win,” said Thomas Riedel, CEO and Founder of Riedel Group, and Co-Founder and Co-Owner of the Germany SailGP Team, a partner of Deutsche Bank. “But with the right attitude and communications, you can turn losing into something positive.” 

Claiming 1.1 billion fans and followers⁵, Manchester United is one of the world’s most popular sports teams. “You have a responsibility to 1.1 billion people,” said Glazer, who described fans as “the lifeblood of the team”. 

What endures commercially in sport is the depth of engagement that keeps fans connected to a club or franchise through every cycle. One panellist summed up the emotional impact of fandom that makes sports an industry like no other. As Avie Glazer put it: “We’re in the business of memories.”