On Aug. 14, the Buffalo Bills come to Toronto to play an exhibition game against the Pittsburgh Steelers. In December, they’ll be back to play the Miami Dolphins in a regular season contest. It’s part of an NFL plan for the Bills to play eight “home” games-three exhibition, five regular season-in Toronto over five seasons. The deal, combined with the fact that Ted Rogers and Maple Leaf Sports and Entertainment chair Larry Tanenbaum want to bring an NFL franchise to Canada, has the sports community wondering whether the Bills might become a permanent fixture in Toronto. But what effect would such a move have on marketers? Here’s a few points to consider:
SPONSORSHIP-FOR THOSE WHO CAN AFFORD IT
The NFL’s broad appeal is based more on the league itself than individual teams. So a Toronto franchise would attract companies looking to expand their marketing beyond Canada’s border. “You might have companies looking to do a North American deal,” says Kim Smither, managing director at Toronto sports marketing agency Octagon. That means brands with big bucks, like beer companies and banks such as BMO and RBC. Toronto’s other sports teams might not find the “Toronto Bills” such a treat, however. They’ll have to compete harder for advertiser investment, says Ken Wong, professor of marketing at Queen’s University. “Companies aren’t going to free up more money just because there’s a new sports team. The dollars that are there would just get divided a little more finely.”
SEE YA LATER, CFL?
Not so fast. Sure, CFL commissioner Mark Cohon said that if the Toronto Argonauts were to fold, “the CFL as we know it would cease to exist.” But others aren’t so fatalistic. “I don’t think the NFL coming to Toronto is going to destroy the CFL, but certainly the Argos have more to lose because it’s a big market that likes big major-league franchises,” says Fred Forster, president of PHD Canada. It’s true the minor-league Toronto Marlies have struggled to stay afloat while the Maple Leafs draw capacity crowds, and the Raptors have established a basketball footprint where semi-pro teams like the Toronto Tornados of the Continental Basketball League failed to get fans. Yet Forster, Smither and Wong believe the Canadian league can survive the NFL juggernaut by focusing on local marketing, community involvement and overall entertainment value. “The CFL can’t let itself be defined by the football game if it wants to succeed,” says Wong.
PREMIUM AD PRICES (BUT THEY’LL BE WORTH IT)
Rogers Sportsnet currently charges $5,000 for a 30-second ad on its 4 p.m. Sunday regular season NFL broadcast, but prices would increase with a Canadian team in the mix. Don’t expect advertisers to complain, though. “It’s going to be less cost-efficient overall, but it’s going to be seen as more of a premium property because it’s got a bigger audience and it’s Canadian,” says Forster, who likens the scenario to Olympic advertising. “The Olympics aren’t cost-effective at all, but you pay because you want to be there.” In other words, advertisers who already do business with the NFL, such as McCain, Nissan Canada and Home Depot, aren’t likely to be turned off by higher prices.
BROADCASTERS CASH IN
As Canadian rights-holders for the NFL’s 1 p.m. Sunday, 4 p.m. Sunday, and Monday night broadcasts respectively, CTV, Rogers Sportsnet and TSN would have much to gain from the Toronto Bills. Sportsnet averaged 313,000 viewers for last season’s contests. Vice-president of content Dave Akande can’t pinpoint a figure, but he expects more fans would tune in to watch a Canadian team, which the network would convert into more ad dollars. Those dollars and viewers might well come at the expense of TSN’s CFL broadcasts, which drew an average of 362,000 viewers in the first four weeks of the 2008 season (including an average of 426,000 for the four Argos games).
ATHLETES WITH STAR POWER
Vince Carter led the NBA in all-star fan balloting for several years as a Toronto Raptor, but he was an anomaly. Athletes playing for Canadian teams tend not to be their league’s biggest stars and so don’t get the endorsement deals. That could change with an NFL team here. Smither thinks top football talent will have little difficulty attracting sponsorship. “If they’re a league-wide star, it doesn’t really matter where they’re playing. They’re a franchise unto themselves,” she says, adding that even lesser players would likely be able to scoop up contracts.
