The business of sports

¶ … Chief Executive of the Arsenal football team:

Re: Three key drivers of change and strengths and weaknesses

One key driver of change for the Arsenal football team is the sustained demand and interest in the sport of football. Interest in football has expanded given the increased media attention given to the sport, particularly after the recent World Cub. Interest in the game remains strong and sustained, and Arsenal's uniquely British character ensures a loyal fan base. But this sustained interest should not be taken for granted. Given the recent global recession and growing uncertainty about the future of Europe, many fans may be forced to cut back upon their expenditures for games and other forms of team paraphernalia.

Also, there are a growing array of diversions from football, as young people in the future may be drawn away from supporting football and instead focus their energies upon other pursuits, including non-sporting ones. Offering young members special opportunities, such as the Arsenal 'Young Gunners' soccer camp and league for junior fans, are examples of how Arsenal has attempted to sustain its brand for generations to come. But there are serious concerns about the limited ability of Arsenal to grow. Despite its strong showings in terms of the success of its record, it is currently at the extremities of its potential to expand, in terms of the costs of salaries and other inevitable operational costs of doing business (Pamphlet 5).

A second key change driver of great concern to Arsenal is the growing internationalism of interest in football, which hurts rather than advances its brand. Because Arsenal is a solely British-based team, its capacity to grow and expand is limited by the constraints of the UK market (Pamphlet 7). As Britain grows more diverse, potential Arsenal supporters may instead support international teams from their homelands.

However, this negative driver may be offset by a great potential positive change driver for Arsenal, namely the use of technology in growing its brand. The World Wide Web offers the opportunity to publicize Arsenal, and social media enables the team to touch base with its fans. Arsenal may even be able to reach outside of its British base, by cultivating an image of 'cool' amongst fans not from the United Kingdom, through selling its fashion online to individuals who wish to wear UK soccer gear. Such fans may live all over the world (Peel 2012:12). Football fans can watch games and listen to sports radio centered on UK football, which may help to break down formerly insurmountable geographical barriers that limited the fan base.

Arsenal possesses many considerable strengths as a business unit. First and foremost, and one which cannot be underestimated in sports marketing, is the fact that it is an extremely successful club. As the second largest football team in Britain and the fifth in the world, the fan base remains interested because of its sheer size and its impressive winnings -- for many, Arsenal 'is' football. It has shown swift, steady increase in its business segment since the 2004 (Pamphlet 5).