We've been doing some brainstorming in my "equine marketing" and "current equine issues" courses, and we've come up with some pretty good ideas for marketing horse racing.
Some of these may not be new, some of them might be unrealistic, but we need more positive idea creation in this industry, and since we are eager, unjaded Equine Business students, this is what we do in class. So here goes:
Get on Sportscenter: I try to catch the Top 10 Plays just about every day, and with the exception of the Kentucky Derby or Zenyatta in the Breeders' Cup, horse racing is never on it. They show plenty of soccer. There's lots of hockey. Hell, there's quite a bit of high school basketball. But no horse racing. Dialed In comes from a hopeless 15 lengths back to win the Holy Bull. That's visually impressive, even to a racing novice. Two other Derby hopefuls, Anthony's Cross and Riveting Reason, battle neck-and-neck to the wire as they fight for a spot in the big event in Louisville. That's exciting to watch, and it'll get the masses interested in the Derby before the first Saturday in May. Getting on Sportscenter more often would be huge for the sport.
ESPN Ads: While we're on the subject of Sportscenter, how about getting ESPN to do one of its This Is Sportscenter ads with a horse? The logistics might be a bit tricky, but there's a way to do it. How about: Sportscenter anchor Kenny Mayne pulls into the ESPN offices, and on his parking space sign, his name is scratched out and instead, it says Uncle Mo (or whoever wins the Derby). The horse is standing in his space. They have a stare-down. Mayne mutters, "Think he's own the place now," and drives off in a huff.
Why not? I mean, they have ducks on, for crying out loud:
All-Star Weekend: I happened to catch some of the NBA all-star stuff, and they do a great job of creating a fun event with lots of celebrities involved. It just so happens that quite a few celebrities enjoy horse racing, and some of them actually own Thoroughbreds. Let's have a weekend of all-star racing that includes celebrity handicapping contests, musical performances and other fun events involving celebrities.
Racing during other sporting events: Since NBC has the Triple Crown deal this year, I'll use them as an example. The Triple Crown coincides with the NHL playoffs, which will also be on NBC. NHL games have pretty lengthy intermissions between periods. On Derby, Preakness and Belmont Days, NBC could air some of the undercard races between periods, as a way of building up to the main event. That kind of thing could also work with other sports - say, during college football games on Breeders' Cup day.
More Reality TV: I thought Jockeys on Animal Planet was pretty good. Too bad it only lasted a couple of seasons. With a gazillion cable channels thirsty for more reality TV content, horse racing should step up with some new productions. Racing is such an emotional roller coaster of a game with so many vivid characters - jockeys, owners, trainers, horseplayers. It's tailor-made for reality TV. Here's a clip from one of the Jockeys episodes:
Focus on the owners: There are so many Thoroughbred owners who are highly successful business people. Jess Jackson of Kendall Jackson winery. Jenny Craig. Record producer Jerry Moss. Mike Repole of Vitaminwater fame. A guy like Repole is an energetic character, too. Get these people out in front of the sport. How about a CNBC show or special that profiles the economics of racing through the lens of some of these highly successful business people?
Racing + Entertainment: We've talked a lot in class about how racing markets itself going forward. Are we trying to sell the sport? Are we selling betting on horses? Or it increasingly about gaming, with racing being a part of a larger package? Woodbine Racecourse in Toronto is planning an entertainment complex to go along with its racing and its casino. It'll include shopping, movie theaters, restaurants, etc. Gulfstream in South Florida already has a similar concept going. The future may well be in packaging other forms of entertainment along with the racing product, and there's nothing wrong with that if it brings the crowds.
Move the Breeders' Cup: Racing is like the endless summer, except that half the time, it's the endless winter. Every other sport has a season. Racing just keeps going and going and going. Create a season around the Derby trail, the Triple Crown, the major summer races and the Breeders' Cup. How about February to Labor Day? The Breeders' Cup could be moved to early September. There's no reason why it has to be so late in the year, competing with pro and college football, not to mention the baseball playoffs. Late summer is down time in the sports world and could be a ripe opportunity for racing. Packaging it as a season with a definite culmination would be more TV-friendly as well.
Match Races: For all of racing's history, match races have been some of the most-watched events. 60,000 people turned out to watch a North-South matchup between Eclipse and Sir Henry - in 1823! The stands were filled for 20th century match races, too - Man O' War vs Sir Barton, Nashua vs Swaps and of course, Seabiscuit vs War Admiral:
Unfortunately, the last prominent, nationally-televised match race, between the colt Foolish Pleasure and the great filly Ruffian in 1975, ended in tragedy as Ruffian broke down and had to be euthanized. That obviously soured many people on the idea of match races, and it was tough to get over. But there were dozens of match races before and since that went fine. It was just a horrible combination of events that day. These days, some graded stakes races only have four horses in them. Might as well just make it two. It'd be more interesting.
My fellow students and I care about the sport, and the people and the horses in it. Our discussions are lively and passionate, and our goal, upon graduation, is to turn some of these ideas or others like them into reality. I'd love to hear your thoughts and your own ideas...
Hi Scott-
ReplyDeleteI'm not sure you want to focus too much on the economics of a sport where 90%+ of owners lose money.
In the US at a training/vet rate of $50k a year with an average of only 6 starts, if your last name isn't Repole or Moss you are losing big time dollars - and even those two owners have dozens of money losers for every Mo or Zenyatta.
But you are on the right track, horseracing does best when viewed as a sport and not a business.
For instance, in Australia for the Melbourne Cup, on a weekday no less, the entire country shuts down like we do for Super Bowl Sunday.
Problem is, even if Uncle Mo turns out to be the greatest ever - he will likely get hurt or retired before the end of 2011. Although Mr. Repole does seem like one to buck this trend.
Thanks for the thoughts, Bill. Good points. Yeah, on the ownership thing, despite the odds against making money, people still want to own horses. They derive "psychic income" from participating. I still think it makes for an interesting "business" world to delve into.
ReplyDeleteScott,
ReplyDeleteThe industry needs to find a way to get people to the track, then treat them well so they'll keep coming back! Creating tangible memories is how fans are won over. The wagering comes, in varying amounts after the action wins people over. Look at Japan, where the races are a spectacle. They handle crazy money, taking bets on the big race of the weekend all week long at kiosks.
Horse racing, despite my passion for basketball, is the sporting event I attend multiple times a month. It's cost effective regarding entrance fee and parking. The total outlay is completely under my control (I don't have to wager if I don't like anything and I can even bring in my own snacks, although I usually treat myself and mine to something and make at least minor wagers), and the product is relatively accessible (media, jocks, trainers, owners walk next to me regularly and most will talk a little/take pics) from the paddock, walking ring to the frontside.
The industry needs to centralize. A commissioner is needed. Uniformity of the product is paramount so any fan, national or international, can recognize which tracks/athletes are in the "major leagues" or "minor leagues". Slot/gaming revenue is a band-aid that's turning into a prosthetic and could become a crutch...worse yet, a life-support system.
Right now, the industry "insiders" want to keep the game under their control. They want wagering/gaming dollars to support them, but the industry could care less about the fans as fans. Ex. Opening Day @ Santa Anita...Frontrunner restaurant...I called to reserve during the week but was told they weren't taking any due to an industry party...translation: we're saving tables for our own/regulars....there were many people on a waiting list told to come back after the first race to see if reservations weren't kept...they waited, and waited, and waited as the management held tables for the industry/regulars while potential fans grumbled at the process and left. Instead of rattling off names for the many empty tables, there were some 8-10 "suits" at the reservation desk looking over the list and whispering about what will be done...one name was called every 3-5 minutes...one gentleman was the first to leave his name after the gates opened (or, so he thought) but he became vocal when some 10 names were called ahead of him...he was the first name, on page #3! Wasn't I told there weren't any reservations during the week? What a joke!!!
ESPN and Sportscenter don't matter...they don't cover the sport. Focus on NBC and their affiliates. I love the sprinkling of races during other sports telecasts!
The idea of moving the Breeders' Cup has merit, but that would virtually eliminate any foreign involvement. The way it is, there are two distinct seasons. Derby/Triple Crown and Oaks/Triple Tiara Winter to Spring. Then comes the Breeders' Cup season Summer to Fall. No way horsemen nowadays can keep horses going from February to September. It's a different game than it was pre-Breeders' Cup.
Back to my earlier point...if 10% of new/beginner attendees fall in love with the sport during each major weekend (like the three G.I's at Santa Anita tomorrow headlined by the Big 'Cap), the fan base will increase exponentially over the years. The wagering will be regular and enough to view gaming as an adjunct, not the focus.
Now that's a keyboard full for you to discuss w/ your friends @ UK ;-D!!!
Thanks, Amateurcapper, for the thoughtful response. We've talked in class about a lot of the issues you mention - what slots mean to the industry, the need for a commissioner, etc. Centralizing sounds like a good idea in theory, but it shouldn't be looked upon as a panacea. Britain has centralized control of racing, and it has plenty of problems. There is, at least movement toward some kind of national cohesion with the national racing compact.
ReplyDeleteBut it's just so difficult to find consensus when there are 38 racing jurisdictions, each with their own rules. A fractured system wasn't the intent, but it developed that way because states wanted the revenues from racing, and they wanted to get rid of bookies. So, they each created their own commissions and rules.
But some of these ideas depend on having someone with a big picture mandate - an entity that can market racing nationally. The NTRA was supposed to take up that role but hasn't done enough in that respect. Not sure what the next step might be.