Industry insider: Bernard J. Mullin.
Apostolopoulou, Artemisia
Title: Chairman and CEO, The Aspire Group Inc. (2008-present)
Education: PhD in business, University of Kansas
MBA and MS in marketing, University of Kansas
BA in business studies, Coventry University, UK
Career: President/CEO, Atlanta Hawks (NBA), Atlanta Thrashers
(NHL), and Philips Arena (2004-2008)
SVP-Marketing and Team Business Operations, National Basketball
Association (2000-2004)
Vice Chancellor of Athletics, University of Denver (1995-1999)
President/General Manager, Denver Grizzlies (International Hockey
League) (1993-1995)
SVP-Business, Colorado Rockies (MLB) (1991-1993)
SVP-Business Operations, Pittsburgh Pirates (MLB) (1986-1990)
Professor of sport management and marketing, University of
Massachusetts, Amherst (1977-1986)
Q: In December 1994, Sport Marketing Quarterly published the
profile of Bernard J. Mullin, President/COO of the Denver Grizzlies.
What were your expectations for the sport industry at that time? Has the
current state of the industry surprised you and, if so, in what way(s)?
Mullin: Wow! That's such a long time ago, I am not sure that I
remember my expectations. I knew for me personally, for my career
growth, that if I was going to be a major league team president/CEO I
needed to gain experience overseeing the team side as well as the
business side, and that's clearly what I gained the most from those
two wonderful years in the IHL.
The current state of the industry has surprised me mainly with how
much the size of teams' "front office" staff has grown
and, of course, how much we rely on technology today for everything we
do. Probably the biggest area is in performance analytics on both the
sports side and the business side.
Q: Of all the positions you have held throughout your career, which
one was your favorite and why?
Mullin: The Denver Grizzlies was by far and away the most
enjoyable. That's because of the wonderful owners--David Elmore and
Donna Tuttle, the inclusiveness of our head coach, Butch Goring, and the
fact that we were truly one small and happy family with no wall
separating the team from the staff. Of course going 72-20-6 and winning
every trophy the league had to offer didn't hurt either!
Q: How have sport consumers evolved over the years that you have
been involved in the sport industry? What do you think is the key to the
heart of sport consumers?
Mullin: I believe that sports consumers are much more sophisticated
and much more demanding than ever before, and no longer willing to
accept "one-size" fits all. Today, we must
"mass-customize" our product and our content. Handling this
"oxymoron" is probably the key to sport marketing's
future--produce content and experiences on and off the field/ice or
court en masse but at the same time provide bespoke solutions to
everyone's sport entertainment needs and demands. But in this
latter respect, nothing has changed--we need to really, really listen to
our fans/partners or customers (guests as we call them in the Disney
parlance), and then give them exactly what they want ... within reason
obviously!
Today's fan base is more fragmented than ever before, as is
society as a whole, and you have to have niche products delivered on so
many different platforms (digital, electronic, social, and mass media).
The way to the guest's heart is the "Two Cs." Give them a
connection to the players/coaches and the team brand and provide a sense
of community or belonging. In my opinion, MLS is probably doing this
right now better than anyone else in North America and probably
including all of the rest of the world as well.
Q: Your career has been filled with numerous examples of financial
turnarounds and record breaking sales performances. What is your
favorite success story? What were some common themes in all those
success stories?
Mullin: Oh gosh, I have been very blessed in my career--all of my
assignments were fun and even though this might come across as a
"cop-out," they were all my favorites. The Pittsburgh Pirates
(MLB), because it was my first work experience after being a professor
for almost 10 years was very special--taking the worst team in sports
that was only drawing 7,000 fans per game, losing $10M per annum, and
had seven players indicted on federal drug trafficking charges was
really a huge challenge and we completely turned it around in just three
years.
Starting up the Colorado Rockies (MLB) as an expansion franchise
and breaking MLB's all-time attendance record with 4,483,350 fans
in our first season--a record that will never be broken--was amazing.
Being in charge of the design and initial construction of Coors Field
was a great learning experience for me. I've already talked about
the Grizzlies' "family experience."
Developing the NBA's Team Marketing and Business Operations
(TMBO) function as an in-house consulting function was without doubt the
greatest learning experience and overall success story in which I have
been involved. In four very quick years, we turned around a three-year
attendance decline and facilitated league-wide revenue growth by over
$200M per annum.
The Hawks/Thrashers and Philips Arena "gig" was an
amazingly exciting challenge, but it was sadly ruined for me when I was
placed in the middle of nine distinct owners who were in court battling
each other, within two months of me taking over as CEO.
But if I had to pick one, then starting my own company from scratch
(The Aspire Group LLC), and basically creating the outsourced Ticket
Marketing, Sales and Service phenomenon for US Intercollegiate Athletics
is my most rewarding experience. We have now grown our little start-up
company into a multimillion dollar business with almost 150 full-time
employees in just three and a half years. And the really fun part is
that we are beating our main competitor in this area, which is the giant
in sport marketing globally.
Q: What is the "24:48:48 Intelligent Marketing Strategy"?
How can this approach be relevant for sport properties with limited
resources?
Mullin: "24:48:48" is The Aspire Group's proprietary
software and intelligent marketing system, which is both a disciplined
approach to cutting-edge ticket marketing as well as a Data Base
Management (DBM) and Sales Force Automation (SFA) solution. It combines
sophisticated technology with a personal touch, which is the optimum
balance in today's world, regardless of whether the fan is a
digital native or a digital immigrant like me. It stands for 24 hours,
48 hours and 48 hours, which of course equals five days.
The system is a rapid-response marketing discipline, encompassing
three distinct functions--24 hours: CAPTURE fan contact data, clean and
de-duplicate it. 48 hours: COMMUNICATE INTELLIGENTLY--analyze the data
and append it and develop a "propensity score" to determine
target segments, then match those target segments to the most relevant
product offer that is likely to resonate the best. That's the
intelligent part--scoring the target segment and matching it to the
right product selected from a full-menu of products. Then communicating
that offer using the most appropriate channel/platform (from the
customer's perspective)--digital, electronic, social media, etc.
Essentially using very targeted messaging and offers via email, mobile,
text, tweet, social network site postings/blogs, etc. on the PDA of the
fan's choice. 48 hours: CLOSE--a sales representative calls the
prospect within 48 hours of them receiving the e-marketing message.
The beauty of the 24:48:48 system is that the fan can do three
things with these communications, and two of them are positive for the
sport marketer. They can purchase, they can open and click-through, or
they can fail to open the message. In the first two cases, they receive
a customer-service call. If they have purchased, the sales consultant
thanks them for buying and then segues into an "Up-Sell" or
"Add-On" attempt. In the second case, the sales consultant
views this prospect as a qualified lead and calls to build a
relationship and gather more information and attempt to close the sell.
In both of these cases, the follow-up calls produce extremely valuable
market research and typically double the sales ROI when compared to
straight electronic marketing.
Q: Tell us about the Fan Relationship Management Centers[TM].
Mullin: Fan Relationship Management Centers[TM] or FRMCs as we call
them at Aspire are our proprietary customer sales and service centers
that handle inbound and outbound ticket sales and service for our 14
client partners worldwide. The centers are fueled by 24:48:48, and
essentially execute the CLOSE function. We hire recent college graduates
who have a passion for both sports and sales and train them intensively
using our "Raise Your Game [TM]" program that helps us in
recruiting the best and the brightest professionals who want to become a
CEO/general manager or athletic director. As we closely manage, develop
and motivate our consultants, the sales revenue results are outstanding.
Q: Compared to other (non-sport) industries, are there areas in
which the sport industry is a leader and are there areas in which the
sport industry falls behind?
Mullin: I don't think that there are too many areas where the
sport industry is a leader in industry, except in game
experience/entertainment and some areas of branding. Companies such as
Nike do a superb job with their branding and how they position their
product with a total "lifestyle" association. Sport marketing
practice is generally far behind the Amazons of the world in e-marketing
and re-targeting, etc. And we are all far behind Harley-Davidson in
developing the community for our "love-marks" given the sport
brand affinity we enjoy, and way behind the casinos and the airlines in
their data capture and loyalty programs that are driving repeat
purchases.
Q: Over the course of your career, you have interacted with sport
professionals at multiple levels and in a wide variety of fields. What
characteristics do successful sport managers have in common?
Mullin: At Aspire, we look for WHOPPPP in our candidates and all of
our managers and staff. WHOPPPP stands for WORK ETHIC;
HONESTY/Integrity; OPENNESS to learning; POSITIVE attitude; PASSIONATE;
PROFESSIONALISM; and Leadership POTENTIAL.
Additionally, successful sport marketers must know how to really
listen, how to analyze data and trends, and how to shape the appropriate
strategy. This latter skill involves accurately interpolating these data
to build a vision and compelling content. Decision-makers must also know
how to meet the needs of multiple segments within the same venue, which
is an aspect unique to sport marketing. Finally, they must know how to
creatively communicate and sell the experience--and that encapsulates
both the art and science of sport marketing.
Q: Undeniably, advances in technology (including the Internet) and
the popularity of social media are revolutionizing the field of
marketing. What do you consider to be their impact on marketing and
sales operations of sport organizations as well as on the relationship
between sport properties and sport consumers/stakeholders?
Mullin: Yes, the impact of technology is massive, but it's
both good and bad, in my opinion. We can receive instantaneous sales
response and feedback on customers' reaction to our product, our
offers, and our communications, etc. That reaction sometimes can be the
opinion of just a very small group of people who may or may not be
paying fans. There is also the chance that the message of this group
will be fanned out of proportion using mobile and social media.
Consequently, we have to constantly monitor these channels/platforms in
order to protect our brands and shape opinion.
In essence today, every individual on the planet has their own
global broadcast network provided that they are connected to an
electronic communication device. This is simultaneously an extremely
exciting and very terrifying fact. Each person is their own TV network
using YouTube and their own radio/print media outlet, using
texts/blogs/Facebook postings, etc. Our ability to instantly access and
reach the world is empowering, but as the recent riots in England
demonstrated, a small group's ability to mobilize people in violent
acts, create misinformation, or inappropriately shape mass perception
are problems we will increasingly have to deal with. Most notably with
respect to player texts and tweets, etc.
Not surprisingly, given the amount of time some people spend on
these electronic channels in isolation with their electronic devices, in
my experience a high proportion of the visitors to such sites and high
frequency posters/bloggers and tweeters are not ticket buyers. We
therefore must be very careful not to think these voices represent our
mainstream consumer.
Q: What do you see as the biggest opportunities and the biggest
challenges facing sport managers today?
Mullin: I think the challenge is the same as it has always
been--stay focused on what is important, and that's what the
consumer, the fan, wants. The way to do this is constantly interact with
your fans and listen to what they are saying. We can do this
electronically because sport is an in-person experience. So get your
"daily dose of reality" by sitting in the cheap seats not just
the suites and stand at the ticket windows and the gates and see who
your customer is, and how it changes from game to game.
Q: Please indulge me: If you were MLS commissioner for a day, what
are the three things you would do to create a greater interest in and
love for the sport of football/soccer in the United States?
Mullin: I think MLS Commissioner Don Garber and his staff are
already doing it. Slowly but surely they are gaining an increasing
foothold, particularly in the younger demographics in North America. The
technical quality of the product on the pitch (field) needs to continue
to increase without player payrolls ruining the economics of the sport.
I would never begin to second-guess one of the best sports commissioners
there is in the world, particularly as he took his NFL training and took
it to an even higher level with MLS.
Q: In your opinion, how can a journal such as Sport Marketing
Quarterly best serve sport industry professionals?
Mullin: It is simple, in my opinion. SMQ must be relevant and it
must be very applied and practical. Namely, add real value for the
practitioner and don't include the esoteric research that does not
generate revenue or make the sport marketer a better or more informed
decision-maker. I believe your contributors should ask the practitioners
what our biggest challenges are today, go away and conduct relevant
research and then come back with cost-effective solutions.
Q: And, finally, I would like to ask; what do you see yourself
doing in the next 10 years?
Mullin: I will probably never retire. My guess is that 10 years
from now I will be doing a lot less traveling (I am currently logging
almost 200,000 air miles per year). I would like to still be the
Chairman of The Aspire Group but probably not the CEO. I would like to
be doing more book-writing and lecturing, and, who knows, maybe going
back to being a professor at a university. Developing young minds has
always been the most fun and rewarding part of my career. As an example,
watching two of my former students Dennis Mannion, President of Palace
Sports and Entertainment and the NBA's Detroit Pistons, and Peter
Luukko, President of the vast Comcast-Spectacor empire, is very
gratifying. The thought of continuing to play a small part in growing
the professionalism of this industry and developing what we call
"next practices" (future best practices) would be very
gratifying. Without doubt the greatest satisfaction for me looking back,
and the source of my energy and drive every day, has been sowing the
seeds of greatness in so many students and staff and watching them grow
into giants in our industry.
Interview conducted by Artemisia Apostolopoulou, associate editor
of Sport Marketing Quarterly and an associate professor of sport
management in the School of Business at Robert Morris University.