The NFL is a business that produces a product. Like any other business, no matter how loyal the consumers, once the quality of the product declines, so does the loyalty of the consumer and the value of the business. The NFL’s players, coaches and other celebrities derive substantial incomes from activities off the field. All of these business activities depend on reputations.
As CONSOR has discussed in the past, celebrity and athlete behaviors can affect their endorsement value. The inefficiency of the current replacement referees, last year’s lock-out and bad behavior by players or coaches all reflect negatively on the NFL and anyone who derives off-field income based on their NFL career. The result: a possible reduction of the NFL brand value, and a possible reduction in the value of players’ rights of publicity.
Rumbles of bad officiating are commonplace in every sport. However, consumers have an expectation of quality. When the consumer is fully aware they are not getting the value they expect, they may turn elsewhere. Serious fans, fantasy football nuts and non-sports fans have all commented that the NFL’s dispute with its referees could have “lost the integrity of the game.” Like an individual, a business does have its own persona, typically reflected by its brand. When that persona does something negative, there will be consequences to the value of the brand.
Don’t believe us? Take a look at what is trending on social media. The negative impact the bad officiating has on the NFL brand is spreading through the media. The laughable subtitles given to Facebook photo postings of replacement referees (“Just think, three months ago we were working at Foot Locker.”); and the amount of buzz in the Twitter world mocking the calls (look at #NFLofficials, #NFLreplacement) are an indication of the negative persona of the NFL. By Tuesday, as reported by AdWeek, social media firm NetBase published that there was an 88% negative sentiment surrounding the terms “NFL” and “refs.” Apparently, even NFL Commissioner Roger Goodell’s phone number was leaked to fan sites.
What are we saying? Businesses and celebrity athletes both need to protect their product’s image. Negative images equal reduced merchandising and endorsement opportunities, therefore less value. Here the consumer is serious about obtaining their desired product – the game of football. The serious consumer (target of advertisers) will continue to purchase the products/services (tickets, clothing, autos, liquor, restaurants, fantasy leagues) they affiliate with, as long as they feel they are still getting value from their football experiences. The question is, did the use of replacement referees create a lasting negative impact that will be felt by the NFL, its teams, the players and the brand?
It is not just the average fan/consumer getting involved. James Schmitt, Mayor of Green Bay, published an open letter to Roger Goodell pointing out that further negative impacts to the NFL brand will in turn have “the potential to negatively affect our local economy.” As with many industries in a downturn, we see a trickle-down effect, not only on the brand at the top of the pyramid, but also on the lower levels, such as some of the teams’ cities.
Again, as with negative actions of individuals, the NFL brand needs to do some damage control to halt the downward spiral of their image. How will they do this? Getting the replacement officials back on the field is a small first step. Business is not funny, unless you’re in the business of being funny, which football is serious business. Maybe NFL Films should venture into some brand extension products and produce some comedic films. Replacement referees as the new Three Stooges? Just a thought!