From: Subject: Date: To: Reply-To: Marketing Focus <b2admin@TIMEINC.NET> Marketing Focus: No Hoops Nightmare November 30, 2004 5:22:11 PM GMT MARKETINGFOCUS@LS.TIMEINC.NET Marketing Focus <b2admin@TIMEINC.NET> No Hoops Nightmare What the Motor City riot really means for Brand NBA. By Thomas Mucha, November 30, 2004 Pummeled fans. Flying chairs. Crying children. An elderly woman sprawled on the floor. These are, of course, the disturbing television images much of the world has been viewing during the past several days as the National Basketball Association copes with one of the ugliest PR disasters in recent memory. But while shocking, does the debacle during the notorious game between the Indiana Pacers and the Detroit Pistons spell trouble for Brand NBA? Are most fans really turned off by this stuff ? Don't count on it. PR and marketing pros I've talked with all say the NBA will quickly ride out the incident. And thanks to our lizard brains -- and some superb crisis management -- the league may even boost ratings, merchandise sales, and box-office receipts. Like it or not, violence is titillating. And despite the hand-wringing by columnists, newspaper editorial boards, and other social commentators, the NBA is in the titillation business. "It's sad and unfortunate, but fans love violence," says crisis manager Jonathan Bernstein, who puts out PR fires for Fortune 500 firms. "They go to Nascar to see crashes and to hockey games to see fights. No sport is above this." Brand loyalty expert Robert Passikoff agrees. "Many fans are excited by this behavior," he says. "There's a little voice in the back of the brain that goes, 'Fight, fight, fight.' This brawl won't affect the NBA's brand equity." That's because player behavior isn't a key driver of NBA fan loyalty. According to Passikoff's research, it ranks far below elements such as the league's ability to provide fans with entertainment and good, competitive teams. "The NBA's consumer base has been extraordinarily understanding with regard to behavior -- depending on a player's ability to sink a free throw," Passikoff says. "That is far more important than how certain individuals act." Naturally, in the short term, the league must deal with these shocking images, as well as the larger issue of appropriate fan-player interaction. This is, after all, some pretty nasty stuff. But no worries there: The NBA is putting on a clinic of good crisis management. First, the league was obviously prepared for such an incident. "We have contingency plans for all kinds of things that could happen," confirms NBA spokesman Brian McIntyre. It shows: The response was immediate, forceful, and convincing. "[NBA commissioner David] Stern's proactive approach has been perfect," says sports marketer David Carter. "Had he not been so adamant and accessible, this crisis would have worsened." Moreover, the harsh suspensions send a signal that this kind of behavior by the players won't be tolerated in the future. (And to make sure players get the message, the league is communicating its stricter stance through internal channels.) The NBA also is cooperating fully with law-enforcement officials and has posted plenty of news and information about the incident on its website, including a video clip of Stern's entire 27-minute news conference regarding the brawl. "It's been Crisis Management 101," Bernstein says. Of course, even the best crisis management won't convince everyone. "For many this brawl reinforced the emerging image as a league out of control and straining to maintain the strong brand it has developed during Stern's tenure," Carter says. Nor does it help that the actions of other stars -- Kobe Bryant (sexual assault charges), Allen Iverson (gun charges), Latrell Sprewell (coach choking) -- reinforce the NBA's bad-boy image. "If doubt remains as to whether the league can continue with integrity and professionalism, then its long-term financial strength could be compromised," Carter says. But note that nothing was done to curb alcohol consumption in the field houses. The NBA commissioner didn't punish the owners by, say, restricting TV broadcasts. So TV networks aren't complaining. (The NBA is in the second year of a six-year, $4.6 billion broadcasting deal with ABC, ESPN, and TNT.) Corporate sponsorship heavyweights Coca-Cola (KO) and Anheuser-Busch (BUD) have openly declared their support for Stern's handling of the brawl. This brand will be fine. 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