The Uk Football Industry

CHAPTER 1 The essence of this dissertation is to consider the role of corporate image within the football industry. A positive image is vital to the success of English professional clubs, in the face of ever increasing competition, since the roots of amateurism, is to be analysed. Off the field professionalism is as important as those, on the field with an all-round business approach/acumen required. Many clubs have found additional revenue methods, which are now far more important than the traditional money earner -the 'Gate Receipts'. Businessmen (for example Alan Sugar, Tottenham Hotspur and Martin Edwards, Manchester United) now run many top clubs like businesses, with many having full stock market status (Manchester United total share value is £1billion). However, corporate image extends the awareness of the 'brand' (the club). Football as a brand is now stronger than the 'Nike' sportswear brand. Corporate Image extends the image of that made on the field and for this reason the ultimate English football 'brand' is linked decisively to on the field success (Liverpool in the 1980's, Manchester United in the 1990's).

Although commercial activity in football clubs has gained pace during the last 20 years, often the major reason for the overhauling image change of English football, came in the aftermath of the April 15 1989 tragedy at Sheffield Wednesday's Hillsborough home. The events on that afternoon during the FA Cup (the most watched competition in the world of football) tie between Liverpool and Nottingham Forest (in which 96 people lost their life) acted as the major catalyst for the much-needed change. The report into the tragedy the 'Taylor Report' has completely changed the football ruling body's thinking, the football product and modernised the wonderful game. Following this report, it is fair to say that at least something positive came out of the suffering that April afternoon. From 'single-use' grounds with poor facilities and a purpose of simply considering on the field matters, to an image where the customer (the supporter) is central to the success of the club. Stadiums are now 'multi-purpose', all-seater, and high quality venues, to rival any other leisure activity centre. Gone are the days when you stood in the rain uncovered, eating unimaginative catering, wearing a replica shirt if you were lucky. That has now been progressed by covered seating, an expanded catering offering and a vast merchandise product range. But the wonder of the 'modern-game' is that the traditional aspect of the game, the working man on the terraces, the pie at half time and the primal interest of the supporter still survives, despite this modernised feel. Football is a respectable tool as a corporate offering, a suitable topic at a dinner event, a suitable place to 'entertain' that important client or to be taken over by some wealthy businessman (such as Huddersfield Town, with Barry Rubery). Crumbling stadiums have been rejuvenated or replaced by many clubs, the transformation as radical as the growth of the game of football. Football used to be the sole enjoyment of the working classes, football has progressed to a 'classmixed' sport, played and watched by people of every conceivable background. Since the formation of football in 1880, there as always been high demand for football, watched by the masses. Football's male domain is been reduced and been replaced by the family orientated spirit in which females now make up a third of all 'users' of the football product (Mintel survey). The hypothesis "A positive Corporate Image is vital to the success of English Football Clubs" is going to be tested by this study and examine, if corporate image linked to the corporate goals of the club adds value to the 'core product

offering'. This study and the strength of the hypothesis can be analysed through the following: "...I can say we would not under any circumstances put the ability of individual footballers ahead of the right corporate image of this club" (Peter Ridsdale, a Premier League Chairman, 23/01/2000) 1:1 The aims and the objective The aims of this dissertation, through an up-to-date body of knowledge are: 1. to test the role corporate image plays in the world of a fast moving and fast changing industry, 2. to provide primary research, through use of questionnaires and interviews with both the football clubs and gurus of the corporate identity/image industry, 3. to test whether a positive image, one that is linked to the corporate goals of the club emulates success. Clubs can now realistically make a profit and such a strategy is needed. Following the 1990 'Bosman' ruling, clubs cannot rely as heavily on making profits on selling players (which is one of the major income of smaller clubs) and with players wages also increasing alarmingly as a percentage of overall income (71% in the First division), other income strategies need to be sought and for this reason an integrated image strategy is needed. The aims are designed in order to achieve the following objective: * To fully comprehend the notion of corporate imaging and how it affects the football industry. The objective of determining corporate image within football will be assessed through the use of primary source data and secondary sources. Football clubs will be contacted in order to gain as many club uses of this tool. The overall objective is to fully understand how a corporate image, one which is correctly defined and integrated, will ultimately help the football club's, short-term and strategic objectives. 1:2 Hypothesis development The hypothesis was designed in order to best meet the investigative needs of this study and allow a feasible statement in which to conduct primary research methods. It is felt that corporate image is important to football clubs and to asses this, it (corporate image) had to be tested against the notion of 'success' in order to generate a conclusion to the role corporate image plays within the football industry. Football, does not act independently in its own market arena, it is placed ultimately in the leisure industry. This is a saturated market place with many different modes of activity (cinema, sports centre, fitness' clubs) all battling for the same disposable income of the 'customer' and the same Saturday afternoon and thus how the image of football counteracts the image portrayed by other offerings. Being interested in marketing and football the development of the study was simple. I wanted to produce an interesting title in which to form the hypothesis (the 'testable statement'), whilst putting a different swing on the marketing aspect, rather than simply just concentrating on it as an entity.

1:3 Corporate image defined Philip Kotler defined the marketing mix as the 4p's (product, place, price, promotion) which the 'Promotion' 'P' includes the communication mix which engulfs the notion of Corporate Identity -the parent of the study 'Corporate Image'. P. R. Smith refers to corporate image as:

"A result of everything a company does...and is formed in four areas...A symbolic uniform that acts as a flag expressing everything about the organisation" ("Marketing Communication", 1993) (see appendix 1 & appendix 2)

1:4 Corporate image and the football industry The Corporate Image of an English professional club encompasses everything that has a tangible point of public contact. Since football is an intangible product, the players, logo, slogans, nickname (for example 'Foxes' [Leicester City]) and the stadium are vastly important. The stadium is so important for football identity, as it is a place which is worshipped and as many other things in football change, the stadium "is a permanent temple" (Lawrence, 1996), the 'home' of the supporter and so central to an image strategy. Corporate Image helps to put 'flesh' onto the 'core' product offering creating supporting 'tangible offerings' (see appendix 3). Services (Football core) Goods (Football augmented) Intangible Tangible Less standardised More standardised Not storable Storable Production & consumption simultaneous ('one of the same') Production followed by consumption ('two very different things')

(Gummesson, E. 1999, page 234 [adapted])

With many clubs running themselves more like a business -a theory suggested through the rising number of clubs becoming plc in status -in a capitalist environment the ultimate 'success' is the making of profits and satisfaction of the stakeholders. But for football there are many more factors than simple profitability. For example the way a football club succeeds with it's core competence (the success on the field) and the current playing staff, the level of gate receipts (helping both profits and supporter base, the public image), media representation, morale throughout the club and supporters and the ability to attract new players to the club (see appendix 4). There are many advantages of a good corporate image, which can help to create competitive advantage, particularly when there is very little difference in the product offering. Although every football club offers the 'same game on the field', in England, football supporters (the 'fan') have a primal interest over one certain football club, and in some cases an ideology, a religion. Every club, no matter how successful, has its loyal band of 'season ticket' holders, the 'life-blood' of the club. To the extent that some commentators believe some football clubs could sell literally "anything" to their loyal/faithful followers, who rarely change even if another 'brand' is performing better (although that is not to say corporate support and sponsors will remain if times are hard. For example Crystal Palace is currently in receivership and does not have a main club sponsor) (see appendix 5). 1:5 Premier League is dream-land The Premier League is 'dream-land' both on and off the field, with television to the other three divisions (the Nationwide League), amounting to just 36% of that of the Premier League. Incidentally the Nationwide Building Society paid £1.75million to have the Football League named after it; Carling paid £9million for the Premier League title. Phenomenal growth has engulfed football in the last 20 years and the core product (success on the playing field and thus winning trophies) is given an tangible offering (for example merchandise) through the corporate image strategies developed by the football club. Football clubs are seen as 'dream-makers', which create dreams, passion, glory and unique loyalty without a specific tangible product. Rolf Jansen believes the 'dream' is now more important than the product offering, essentially when in football for many supporters the 'dream' is not realised by the product: "Most companies are founded on dreams...Many companies don't even have a product. Look at Manchester United which now operates in a global arena with no product. If ever there was an example of a company selling dreams, a story, this must be" (Rolf Jansen, interview with amazon.co.uk, talking about his new book "The Dream Society", 1999) 1:6 The 'Customer' The 'customer' within the football industry is unique and different to any other industry. The 'customer' is a crude way to define the supporter of a football club, but it offers the club a unique audience to target. The supporter is part of the image of a football club, unlike any other industry to the extent that the relationship may be described as symbiotic. Corporate image relates to (among

other things) the social responsibility of the organisation; the supporter (the customer) is central to this. However it is often the negative aspects attached to the football customer and the psychology of the customer (one which stands in the rain, wind or shine), which offer the club a unique audience/market. The customer's loyalty to a certain brand is often 'passed-down' through the genealogy of the supporter. It is perhaps surprising that the new generation of football supporter is a third female, with 31% of respondents stating "More women are interested in football nowadays" (Mintel, 1998). The Mintel report also announces that "Almost a quarter of all men claim that they used to go to matches a lot more, suggesting that the combination of higher gate prices and wide television coverage has influenced some consumers". Thus revealing that economics and the media play a significant part in the participant of the target audience. An analysis of current theory is going to be applied in the next chapter to ascertain just 'what' corporate image is, the football industry and how the two are linked together. CHAPTER 2 2:1 The origins of marketing The origin of the discipline marketing (corporate image has its roots in marketing), is difficult to establish, but the exchange of goods has existed for many centuries in the crudest of forms. Marketing has developed over the years to become a well-respected business process, which holds its development roots in the division of trade, creating the need for goods and product exchange. Some commentators (including Stanton, 1971), believe that marketing 'really started' with the Industrial Revolution, and grew pace in the 1920's, the Chartered Institute of Marketing defines marketing as: "Marketing is the management process which identifies, anticipates and supplies customer requirements efficiently and profitably" (as found in Lancaster and Massingham, 1998, page 2) 2:2 Corporate Image As previously stated the study of corporate image holds its roots in marketing in the Promotion P, as identified by Professor Phillip Kotler. Organisations are spending increasing amounts on identity and is a source of valuable business resources. The development of the corporate image (linked to corporate identity), is discussed by Wally Olins in his book "Corporate Identity" (1991): "In order to be effective every organisation needs a clear sense of purpose that people within it understand. They also need a strong sense of belonging. Purpose and belonging are two facets of identity...identity must spring from the organisation's own roots...must be clear that it becomes the yardstick against which its products and actions are measured" (Olins, W. "Corporate Identity", 1991, page 7) Olins has identified that although an organisation may have a better product or service if the image is not perceived positively or the image is not integrated into the product/service, consumers will not entertain the brand. Although this is not linked to the football 'terrace' customer (the supporter) it can negatively effect sponsorship and corporate customers. An example of a perceived negative image could be Millwall Football Club, which has traditionally struggled with a negative/violent image, to the extent that it is addressing the problem through

its corporate image strategy: "Our club (Millwall FC) is trying to create, through a corporate image strategy, an identity of not being so aggressive" (Millwall Football Club, Supporters Club Administrator, 1999) Dr Lynne Millward (organisational scientist) devised a two-stage three component conceptual viewpoint model offering another perspective. Millward felt that corporate image/identity should be discussed at the conceptual-philosophical level rather than determining the tedious definition of corporate image (see appendix 6). Corporate Identity is a visual means of identifying everything an organisation is about and can be used as a strategic asset to achieve long-term goals and limiting confusion with competitors. It uses all means of everything available to the public and as P. R. Smith (1993) says: "it is more than just a logo" (page 440), and the image should reveal the essence of the organisation. For this reason the football club's overall image/identity is important as it displays the external and internal image of the organisation. Sunderland Football Club changed its nickname when it redeveloped its badge, but due to pressure from supporters (again revealing the symbiotic relationship) and a redefinition of its image, is returning to the nick-name it changed (the 'Blackcats'). The management of the image is important (see appendix 7), whether the organisation recognise the fact or not, every organisation has a unique image, based around perception. Therefore what one thinks maybe different to another. That is why football clubs are in a unique industry. It will have loyal fans (despite the market share of the club in terms of financial capability, see appendix 8), who will maintain the positive nature of their club throughout their life, and hold perception about other teams. Often the image portrayed towards 'competitors' is often based on primal interests and local rivalry: "For non Leeds United supporters in West Yorkshire the perception is simple. You love your own team and hate that lot" (A West Yorkshire football fan [as found in the Bradford City fanzine: City Gent, January 2000])

Corporate image relates to everything, which embraces everything of tangible points of public contact and includes items such as (for a detailed list refer to appendix 9): o o o o

Buildings (the stadium) uniforms (or the playing kit in football) all communications all visual impressions (such as the club badge)

Thus corporate image/identity is about good communication, about building lasting relations (see later section on relationship marketing) with stakeholders -employees, suppliers and customers. If designed correctly it will deliver messages about the organisation/club to the target audience and if successful will be perceived positively (for corporate image success refer to appendix 9 and appendix 10 for advantages) and playing an increased part in the football industry:

"Today, all top clubs pay great attention to corporate image...the badge is a powerful image...and an important part of corporate image" (Leicester City Football Club, "Information Brochure" 1998/1999)

2:2:1 The stadium as a valuable corporate image tool The stadium for football clubs is one of the major image sources available. The stadium is the home, and discussing in primal terms is the 'castle' of the fan a place to be worshipped. Amy Lawrence (1996) discusses the strength of the stadium towards football fans:

"The stadium is the integral part of any fan's football identity. Players managers may be worshipped, but they come and go; the stadium, the club's a permanent temple. If football is the Nineties opium of the masses, then stadiums are the places for the masses to come and get their fix. The hit never be so vivid from the comfort of your own cosy armchair.

and home, is these will

At Old Trafford, they tell you it's the 'Theatre of Dreams'...the walk up Sir Matt Busby Way takes you to a place more dreamlike and romantic than Disneyland...Thirty miles away in Liverpool, three words say it all --'This is Anfield'. The phrase is part of the Reds' heritage, as intimidating as the Kop in full voice" (Taken from "Uncertain future for soccer temples", The Observer, 1996) The identity is so strong, they (stadiums) are now becoming an integral money earner for many clubs. Stadiums are now not just used on matchdays, but for every other conceivable activity (such as pop music concerts). In fact in some locations the stadium has become a part of the community. For example Huddersfield Town's McAlpine Stadium and Northampton Town's Sixfields Stadium are partly owned by the local council which helps the community nature of the image strategy. Many stadiums are becoming 'joint' stadiums for both the Town's Association football club and Rugby football club (such as the JJB Stadium in Wigan home of Wigan Athletic football club and Wigan Warriors RFL club): "Huddersfield Town, tightly interlinked with the council, which owns the splendid McAlpine Stadium...the football club woven into the town, one participant in a major civic venue" (Conn, D. 1997, page 241) There is an increasing belief that the stadia are becoming self-sufficient. The sponsorship of the customer's temple in the English game is increasing dramatically. The sponsorship of stadiums grew in the United States where 46 stadiums from a total of 89 in NBA (basketball), NFL (American football) and Major League Baseball, are sponsored these include: RCA Dome (Indianapolis), Cinergy Field (Cincinnati), American Airlines Arena (Miami), Tropicana Field (St. Petersburg) and Bank One Ballpark (Phoenix). Although English football grounds are following this American model of stadium it is not on the same grand scale but there are an increasing number of the 92 league clubs, whose home is sponsored: o McAlpine Stadium (Huddersfield Town)

o o o o

BT Cellent Riverside (Middlesborough) JJB Stadium (Wigan) Bradford and Bingley Stadium (Bradford City) Reebok Stadium (Bolton Wanderers)

From the clubs identified, there is a clear consensus that stadium naming has become an increasing force following the redevelopment of the game. Only Bradford City's home is not a new one, clearly showing that the Bradford commercial department has identified the benefits obtainable from having a sponsored stadium Consulting again the American sports image, Darrell Fry states: "It is hard to find just about any aspect of American sports that corporations and sponsors haven't touched, everything seems to have a sponsors name attached to it...College sport is being raided by sponsors -just about every college football bowl game carrying a corporate name" (Fry, D. "Commerce pushes US sport tradition aside", FT.com, 2000) Therefore if a football club holds a positive corporate image, it can help gain much needed revenue from stadium sponsorship, but it is only possible if the club holds an image sponsors like, as no corporation will want to be associated with a negative image. 2:2:2 The advantages of corporate image Corporate image is a result of everything the organisation does and there are advantages (see appendix 10) to be gained through having a successful image (see appendix 9). In the football industry there is little difference in the products/services offered, each club needs each other to survive and thus the individual clubs require a successful image to create differentiation from the other offerings available. Football is a unique industry in that it's customers are very loyal to a particular brand and so the image (in terms of attraction) will be billed mainly to non-affiliated customers, corporate sponsorship and customers and attracting better players to help strengthen the image. The success of football clubs is not like any other organisation (see appendix 4) and a positive image, which is perceived by all stakeholders, is necessary. What a club does is under great scrutiny and the way its 'internal customers' (supporters) is linked to the image is unlike any other industry. The relationship between customer and club is symbiotic, what the customer does and how it behaves affects the so-called supplier (the football club) and so the image of the supporter is critical to the football club (as Millwall have found to their detriment). 2:3 The corporate image view of Jack Yan Jack Yan (see appendices 11 & 12) believes the role of corporate image is unique to all organisations and thus there is no "typical method". However Yan does create a model of corporate image (see appendix 11), which can be applied to any organisation in any industry. Image is important, as it is part of a chain that leads to "business performance", whatever the definition of performance is. The strength of the portrayed image affects the brand equity (see later 'Football as a brand'), but can help to reinforce and introduce brand associations. Yan identifies image, as being what is perceived and thus there can be multiple images for one organisation. This is typical for a football club, take the ultimate English model Manchester United. The following will hold a perception over Manchester United: o customers/supporters,

o o o o o o o

the players and backroom staff, shareholders media community other brand customers and suppliers (domestic and foreign) the industry as an whole City investors

The Manchester United brand (model) is so strong, that every other brand supplier in the world of football wants to emulate it's success (first £1 billion club) and its brand is available throughout the globe: "Manchester United...launched a chain of stores in the Middle East to take account of the fanatical support there" (unknown, "Dreams extend to Middle East, FT.com, 1999) Jack Yan also identifies the notion that a positive image encourages improved performance as audiences are prepared to deal with an organisation it deems to hold a positive image. The profitability of the club and community goodwill will increase and the overall respectability of the club will be strengthened. The unique position offered by the organisation will offer either a positive or negative perception, with image often being bound by what the audience wants. A football club must be clear who or what its audience is (i.e. supporters in the stands, corporate supporters, sponsorship) and offer a sustainable product aimed at these different segments, who will essentially require the same product/service, the success of the football club. It is often believed that although football clubs market to different segments, it needs "a corporate vision that encompass the entire organisation" (Yan, J. 2000). Football clubs usually portray one overall image, to the different markets, much like the Virgin Company. Clubs will have an overall strategy linked to the corporate goals of the club, with the difference in the football product been deemed along democratic and psycographic ratings rather than along divisional product lines. Jack Yan displays the overall essence of a corporate image: "It (organisation) has to know its vision so the direct desired result of that is for the vision to be understood by external audiences...its has to create brand equity...and it has to make money" (Yan, J. Answers to e-mail questions, 2000) (For further information regarding Jack Yan, refer to appendix 12 and chronology) 2:4 The Football Industry The football industry is unique, its customer (the supporter) is a central part to the development of the individual brands and the customer often adds value and strength to the organisation. It is a risky industry one which is subject to on the field success and thus related to the fitness of those who partake with the on the field activities. All other products/services offered by the industry help to augment the core product. Currently football is under a revolution, from the 1980's image to the now more respectable 'modern' image. As discussed earlier, Hillsborough created a substantial change in football, especially its temples (the stadiums), and the football restructure came in 1992, following the formation of the Premier League. The fabrication helped the Sky satellite company to survive (and it too to became a catalyst to the image change), following the television deal with the Premier League. The Satellite Company has become so strong it now owns shares in various clubs and was on the verge of buying the whole of

Manchester United: "The BSkyB deal was a catalyst to change in the English football image" (Manchester City, e-mail interview, 2000) Football was the saviour of Sky; it is now becoming the owner and controller of football with share issue stakes in five clubs. Despite the strength of Sky in the football industry, if it had not been for the activities of Alan Sugar (owner of Tottenham Hotspur), Sky would never have got its clutch on the wonderful game. To coin the Sky catch phrase it certainly is "A whole new ball game". The former head of Sky (Sam Chisholm) announced in 1997, that football was the turning point for Sky. Revealing that the telephone call from Sugar (who was to make millions out of producing the equipment to receive Sky transmissions following a deal in 1988) was an important element to take football into the new Millennium. Sky is credited with helping the image of football, Chris Akers says: "The whole marketing exercise was sold to the clubs as Sky supporting football, giving it a new, sexy image, dressing it up for the super century" The head of merchant bank 'Singer and Friedlander' reveals the turning point and transformation of English football and reveals the nature of commercialisation: "What has happened in football in general came out of a disaster -Hillsborough. It led to a complete rethink about football and gave us the all-seater stadiums. Because there was a cost involved that cost had to be recouped somewhere. Hillsborough led to a drop-off in hooliganism and a rise in middle-class attendance. There was a change in demographics and they changed quite dramatically. People with more money who were willing to spend it, and not just on attending but on buying other goods, started to come back. If they were married, they were bringing their wives and kids so it was becoming more family orientated, which was a massive change. There was no more standing in the rain or worrying about water down the back of your neck off the guttering on a stand -although you were lucky if it was water. The clubs just never saw themselves as businesses with a brand that had value" (Tony Fraher as found in Dempsey, P. & Reilly, K. 1998, page 32-33) The change of the football industry following the Hillsborough tragedy is credited to the Taylor report. Lord Justice Taylor commented: "Football is our national game. We gave it to the world. But its image in our country has been much tarnished...The picture revealed is of a general malaise or blight over the game due to a number if factors. Principally these are: old grounds, poor facilities, hooliganism, excessive drinking and poor leadership" The Sports Minister Tony Banks (who has now been replaced), commented on the reformation of the football game in England, ranking amongst the best and most comfortable in the world, with the generation of "new modern all-seater facilities". 2:5 The owners of football The transformation of football has been great in the area of who owns football clubs. Clubs are now owned, controlled and developed by businessmen with business acumen, who clearly understand that the image of the club is vital to the success of the football club:

"Football's a business and it's not going to be run by the blazer brigade anymore. It needs to be run as a business by businessmen" (Sir John Hall, Former Newcastle United Chairman, 1995) (as found in Dempsey, P. & Reilly, K. 1998, page 171) Football is a rich and thriving industry (Manchester United is now worth £1 billion), and it is the owners who are carrying on the Taylor transformation of football. The 'new owners' of the game, are the ones behind the increase in television deals. As one First Division Chairman said: "Television is important to the image of clubs, it is through this medium that the product is displayed and is often a source to gain top-flight football. Without it, football would lose a valuable revenue source. Football is big, big business so communication is essential" (Ayre, I. Chairman, Huddersfield Town, 2000) Many clubs are now on the stock market, and so will have investors to keep happy, whilst keeping happy those who invest in the club via their entrance through the turnstile (both who mutually exist and benefit). Some believe football has made businessmen very rich. An example of this is David Dein (Arsenal). In 1983, Dein paid £290,250 for a stake in Arsenal, he is now worth an estimated £35 million. There are many examples of this throughout the industry. None more so than Manchester United. Sky were ready to offer around £500 million for the club, they are worth double that, and in the 1989 the Manchester United Chairman Martin Edwards nearly sold his interest to Michael Knighton for £10 million. This revealing just how far the image of football in the City has come in just a short space of time. The income of football clubs can be broken down: o o o o o o o

gate receipts television money merchandising and branding sponsorship asset utilisation (the transfer of playing staff) stadium development/activities financial institutions (i.e. City investment)

The football industry in England has never been stronger than it is now. The image and finances are in a strong position and attendance's are generally on the increase. It is believed that the latest television deal could be sanctioned in a deal worth around £1 billion (over five years). Television money, increasing gate receipts, merchandising sales and the Internet boom will all ensure that club finances (especially in the Premier League) remain healthy. 2:6 The football customer The customer in football is unique and special. The relationship between the customer and the club is a special case. The customer internally supports the club (without them there would be no club), but the strength of the affiliation is stronger than any other industry, the customer actually regards the organisation as its own. The Tony Fraher quote on page 19 reveals that the football customer has been transformed and that the support is much more family-orientated. One Chelsea supporter reveals the passion of football fans: "If I don't like the product on offer at Chelsea, I can't ditch that and go down to West Ham instead. Football doesn't work like that. As I keep saying, it's more

like a drug. You end up with an addiction to a particular team" (as found in Dempsey, P. & Reilly, K. 1997 page 35) The supporter's revelation, shows that football customers are unique and that they stick with one brand often created by genealogy. Attendance at football stadiums has risen dramatically over the past decade. Football owners can charge whatever they want for admission to the stadium, as they know the customer will pay it (unlike in other industries therefore not bound by traditional economic rhetoric), as there is no substitute or alternative product, other than not going. The reason behind this is discussed: "This suggests that as a leisure activity, the spectator is prepared to pay a premium price. Newer stadiums with better facilities and, more recently the influx of high-profile foreign stars, have made rising entrance fees easier to pass on to the spectator" (Middleton, G. "Football Business" What Investment, April 1997) In the same article a study into the customer enthusiasm for the industry, revealed: o o o o o o

family influences locality style of play and exciting players team uniform/kit child enthusiasm seen on television

...are all issues which the customer revealed for their 'preference of a particular club' and so can be the basis of revenue for the modern football club. Football is predominately engulfed by young people. 80% of Leicester City supporters are between 15-49, with 30% of all season ticket holders earning £30,000+, revealing again that the image of the football club is big business and if the image is consistent, there are considerable financial rewards to be obtained. Alan Sugar regards business-to-supporter relationship: "Sees no serious problem in marrying the needs of shareholders for revenue with the demands of the fans for silverware. A very fine balance has to be trod between keeping the fans happy and at the same time running a financial business" (as found in Cowe, R. "Soccer in the city: Perilous game of Footsie" The Guardian February 1997) Abdul Rashid (Commercial Manager: Aston Villa) sums up the overall essence of the customer-club relationship, which if successful can help the image of the club tremendously: "The club-fans relationship is the start of business. The more passionate the fan is, the more likely he is to commit to buying a season ticket and to spending in the ground and the club shop. That passion is something the club has to nurture, it is something that it can be taken for granted. The facilities have to be good, the ticket prices have to stretch across the right range and the products you sell have to be of high quality. But, most of all, the team on the pitch has to be something that the fan can believe in. That's the hierarchy. That's the business. Yet, maybe some clubs do take fans for granted, they do not invest in the team right away, the prices are too high and the products are crap. So the fans go

away, they stop coming and what a lot of people have not yet woken up to is the reality that once they have gone, it is nearly impossible to get them back. Whatever the passion was, whatever the commitment was, you can only very, very rarely recreate it. For the fan, they feel as though they have been spurned by a lover" (as found in Dempsey, P. & Reilly, K. 1998, page 25) The television deal discussed in the previous section will also effect the customer. Although it is predicted Sky will maintain the hold on the majority of the live games, more will be back onto terrestrial television. 2:7 'Relationship' Football Corporate image is all about creating long-term relationships, the success of football clubs is concerned with creating relationships (i.e. with supporters/customers who will purchase season tickets if satisfied by the service/product). Analysing the notion that marketing as progressed from Kotler's 4p's approach, is clearly shown through the football product which aims for longterm relationships, rather than the often-suggested transactional-base of the 4p's. The entire organisation/club must be subjected to the needs of the customer: "It's not just us, the commercial staff who look after the customer indeed all the staff have to do it" (Gilliver, A. Bradford City Commercial manager, 1998) If the customer-club relationship is handled correctly, it will add value to all stages of the value chain, with the key to customer satisfaction shown across the value-chain model. There are many advantages of a relationship approach: Traditional approach Relationship approach -Single sale -Customer retention -Service features -Service benefits -Short-time scale -Long-time scale -Little emphasis on customer service -High emphasis on cust'r service -Moderate customer contact -High customer contact -Limited customer commitment -High customer commitment -Quality is production concern -Quality concern throughout (Source: McDonald et al. 1996 page 25) Wally Olins discusses the relationship aspect of corporate image: "In order to be effective every organisation needs a clear sense of purpose that people within it understand. They also need a strong sense of belonging" ("Corporate Identity" 1991 page 7) Thus by creating a sense of club togetherness the club can prosper mutually through relationship retention. Evert Gummesson, who identified the shift from the

4p's to the 30r's, discusses relationship marketing in depth. The essence of the shift to relationship thinking in the football industry is shown through: "...the name of the game is to keep people who have shown faith in the club entertained. The PR exercise is on the field" (Barry Rubery, owner, Huddersfield Town) Rubery identifying that everyone in the club (like Gilliver) has a part to play in creating and satisfying the needs of all stakeholders. Gummesson (1999) identified 30 relationships (30r's), of which the eleventh such 'R' (The customer as 'member') sums up the football relationship coherently. The customer is central to the success of the football club so what better way to describe them (supporters) but as 'members'. Football relationships are a complex web of interaction (see appendix 13), with the season ticket holder being the ultimate 'member' throughout the season -who will also purchase tangible products (i.e. replica shirt) to supplement the intangible core product of the football game on the field. The season ticket holder also offers the club a specific database of target market, all that have the same interest, the success of the football club. Gummesson identified three purposes membership serves for the supplier (the club): o it helps increase retention and share of customer, o it provides more information about customers, and IT makes it possible to build a database of any number of customers, thus replacing blunt mass marketing with targeted communication and customised offerings, o if the competition offers membership, an individual supplier may have to join in order to stay in the market (Gummesson (1999) "Total Relationship Marketing" page 83) By following such a method, the provider (the club) and the customer (the supporter) become co-producers of value to the club and create what Gummesson believes is a "win-win relationship": Value-added chain (adapted) (Glazer, R. 1991 "Marketing is an information intensive environment: Startegic implications of knowledge as an asset" page 4) 2:8 Football as a brand Corporate image is a tool to reinforce associations and create "brand equity" (Aaker, 1991), helping to create brand associations, perceived quality, brand awareness, brand loyalty. It as been found (by research by Jack Yan) that positive corporate image leads to and encourages consumers to "deal positively with the organisation" (Jack Yan, 2000). Brands have become icons and symbols of quality and value (see appendices 14 & 15), and brand helps to distinguish the product. In football the product is the same, the brand (the club) is the differentiation factor to create a Unique Selling Proposition (USP). However, brand value and customer value must be similar, if not problems can occur and the brand management discipline is now deeply rooted in the football industry, creating a "one-man-onebrand" club, much like the Proctor & Gamble Company. The football brand has now become an augmented product, football clubs have added value and strength beyond the core product/service (the physical playing of the game) and as such this area of thinking as become a critical matter for increased turnover. Simon Knox and Stan Maklan discuss the essence of the value of brands (see appendix 16):

"Brand marketing is constantly looking for ways to add real value to the basic service or product in order to create brand preference and loyalty." (1998 page 17) Football as a brand is strong and as an entity it is stronger than the likes of the Nike brand is discussed: "We don't pay Umbro or Nike to put their names on our shirts. They pay us. Clubs like Man United are far bigger and far more powerful brands than they will ever be." (Ed Freedman, merchandising consultant, Financial Times, March 1998 [as found in Dempsey & Reilly, 1998] The strength of the associations with football clubs is unlike any other industry, the loyalty is demand inelastic, therefore the club has support through bad times, as well as the good times and the loyalty is unsurpassed. The football brand loyalty is built out of tradition, passed down through the family and thus the club will have brand loyalty to rely on in later years. Supporters/customers are prepared to buy literally anything with the club crest on it. Everton owner Peter Johnson commented: "We have a brand Marks and Spencer and Burton's would die for. People will buy things with the club badge on. When we have an Everton fan young, we have him for life. Because if you keep selling an idea you might buy it, fans allegiances do not change they support the same club all their life regardless of success." (as found in Conn, D. 1997 page 96-97) Football clubs are finding outgoing expenses increasing and as such will require a strong brand and a strong image to achieve success. The Manchester United brand is being controlled by Gary Mackenzie a leading marketer responsible for many top companies, revealing how football as progressed in the business world: "The powerful global appeal of the Manchester United brand was underlined on Friday when the champions of European soccer signed a record-breaking £30 m fouryear sponsorship deal with Vodafone AirTouch..." (Harverson, P "Man Utd confirms Vodafone deal" FT.com 13/02/2000) Following the assessment of the current literature available, the paper will now look at primary research (chapter 4) and the methods (chapter 3) used to obtain this data. Chapter 3 Through my secondary reading I devised the following testable statement "A positive corporate image is vital to the success of English football clubs", this was based on my knowledge of the football industry and from reading the works of Smith, Olins, Yan and Kotler. This clearly reflects that an image for a business is important as it display's the brand to the external audience. With football club's competing in an ever increasing violate market arena, corporate image is a major way for the club to ascertain a unique position over the competition and create differentiation. There were two research methods used: questionnaires and interviews.

I devised the questionnaire in order to gain information of a quantitative nature; an interview was then developed to obtain qualitative data. * Quantitative data is "data about how many people hold similar views...enables generalisations..." * Qualitative data is "data about how people think and feel" (McCormack and Hill (1997), page 4) 3:1 Methods used Questionnaire: This was used in the hope of collating information on a vast scale throughout the industry. I sent the questionnaires through the post and obtained results back that way. Arsenal asked me to telephone them and they 'filled-in' their questionnaire over the telephone. The questionnaire was a two-sided 10 question format, with the objective of finding information on corporate image, if it was needed, the reasons behind an image strategy, financial implications, the response of the supporters and the overall implementation. It is hoped that by using this method the hypothesis can be proved on a large scale and using this method is linked to: "...a cost effective method for finding out about large populations...is a vehicle for the collection of data." (McCormack and Hill (1997) pages 26 & 28) Interview: This was used to obtain more in-depth information. It linked to my reading through asking details about the catalyst of change, target audience, importance and customer characteristics. This created two sources (Manchester City (see appendix 19) and Leicester City (see appendix 20)) of personal responses. To also add depth to chapter 2, I also contacted Jack Yan (a corporate image consultant) (see appendix 21), with an in-depth list of five questions and through him I collated some qualitative data on the corporate image mechanism. During the creation of the interview to the football clubs I tried not to include too much jargon concerning corporate image and to Jack Yan I included very little about the industry (football) I was researching in a hope form Yan I would obtain general data on corporate image. To save on cost and time the interviews were sent out via electronic mail. I constructed the interview in-line with: "Qualitative data are often collected by means of interviews which are designed to probe beneath the surface of responses to questions" (McCormack and Hill (1997) page 5) 3:2 Sampling Who should receive the questionnaire was important to me. I was aware of the emotion related to the football industry and so wanted to random sample the 92 clubs. I wanted to gain a mix of clubs by geographic and divisional status and this I am happy to say happened. I achieved via the questionnaires, representatives throughout the Football League and the Premier League and from throughout England. I obtained a list of all football clubs and their addresses and although I sent out 35 questionnaires, I was disappointed with a response rate of 43%. Therefore I issue caution over the questionnaire results, as it displays only a 16% view of the population available. To supplement this I sent detailed interviews to two clubs who said they would be willing to help me. 3:3 Problems

Thanks to Leicester City and Manchester City problems with the interview side of my research were kept minimal. Although I did have to redesign the interview as Leicester (who received the interview first) felt that there were too many indepth questions in it to answer due to time constraints. However as with Manchester City, Leicester filled in the redesigned one. The questionnaire proved to be more problematic. Although the design of it was fine (I tested it on 4 people to see if it could be navigated without problems), finding the addresses of the clubs were elementary, I found that football clubs were not very helpful in returning the questionnaire. I even sent six out with stamped addressed envelopes in an hope that they would be returned, but only two sent these back. In total I sent out 35 questionnaires and received just 15 responses. I also sent out e-mails to 10 clubs and received just two responses back. Although the response rate was low, it is clearly not possible to generalise but an indication can be made concerning the issue of corporate image within the football industry. The problems were addressed by contacting Jack Yan, to obtain further details of the corporate image debate and also by reading various sources linked to football clubs, such as the Bradford City Fanzine, the Huddersfield Town match-day programme, information from 'inside' Arsenal, Leicester City and Tottenham Hotspur. 3:4 Conclusion Through the participation of the football clubs and Jack Yan I was able to collate a substantial amount of primary data to supplement my knowledge obtained from secondary sources. Although problems were incurred during the primary research stage, at all times I tried to lessen the effect by consulting other sources of information. I used a sample random method to test the hypothesis and generally I was pleased with the way the research methodology progressed. The problems furthered my education of how to overcome external barriers the researcher has no control over. Such was applied in order to obtain the results, which follow in the next chapter. Chapter 4 4:1 Interpretation of questionnaires (also refer to appendices 17 & 18) The results of this questionnaire will hopefully indicate that corporate image is important within the football industry and is needed to help the industry prosper. At each question, the result is given with a percentage and graphical indication. Although the questions are in a numerical order, no indication should be given in terms of weighting to any particular question. Audience total: 92 (total number of football clubs) Sent out to: 35 (38.04% of total available audience) Sample method: Simple random, picked out a selection of clubs based on geographical location and divisional status

Received: 15 responses (43% of total questionnaires sent out or 16% of the total number of football clubs)

Questions and analysis

1. Do you believe your club has a corporate strategy/image? Yes, 86.6% [13] No, 6.7% [1] Unsure, 6.7% [1] This reveals that the majority of football clubs believe that they have a current strategy towards the image of the club. It is therefore feasible to state that corporate image is important to football clubs and is now a serious issue for clubs to think about. This result reveals the whole essence of the dissertation, and there is a clear indication that corporate image has a role to play in football. 2. Has your club currently developed a new 'Corporate Image' strategy? Yes, 53.4% [8] No, 33.4% [5] Unsure, 13.2% [2] Although not quite as emphatic as the result to question 1, over half of all clubs have developed a new corporate image strategy. However there is much more ambiguity in the responses with a third stating that they have not developed a new strategy and 13% felt unsure about the question or whether they had developed a new strategy. 3. If yes what was this development or if no why was this? Yes, Slogan, 16% [4] Logo, 28% [7] Colour change, 12% [3] Mascot, 16% [4] Other, 8% [2] No, Not required, 8% [2] Already have, 12% [3]

Other, 0% [0] This result supplements the findings for question one, with 80% of answers answering yes to the development. Only 20% or five responses reveal that a development had not been done, although 12% of these showed that they already had a strategy they were clearly happy with. There was no major outstanding mechanism/tool of corporate image, although logo development offered the most responses with 28%. This is perhaps, because the logo, is seen as the main method of branding a means to offer the clubs identity to the external audiences. Mascot offers a high response rate, this perhaps in relation to the increase in the family nature of football and a way of attracting children back to football: "There is an increasing emphasis on the family within football...more are visiting matches these days" (Mintel, 1998) 4. Do you feel a successful corporate strategy/image will complement 'on-thefield' activities? Yes, 93.3% [14] No, 1 (6.7%) Unsure, 0 (0%) An empathic result which not only reveals that football complements the core product (on the field activities) of football, but also that corporate image is in football and thus once again establishing the fact that corporate image is vital to the football club. It is also ascertained that football clubs have found additional methods of making money, other than the gate receipt income. Therefore using this question in consonance with question 1, it is clear to establish that corporate image has a role to play in the football industry: "Corporate image is vital to football clubs in order to promote our club (the brand) to the external audience" (Leicester City, e-mail interview, 05/04/2000) 5. What are the reasons your club has for creating a 'new' corporate identity? Attract more supporters, 23.3% [10] Attract players, 4.7% [2] Attract sponsorship, 25.6% [11] Media Attention, 14% [6] Corporate/commercial support, 20.9% [9] Community activities, 11.6% [5] Other, 0% [0] The result of this question reveals that there are various reasons behind why corporate image exists within a football club strategy. Nearly half of all responses came in two sections (attract sponsorship and attract supporters), but

with another 20% (these three acquiring nearly 70% of all answers) stating corporate and commercial support attraction as the means behind corporate image. Revealing that football club image strategies are fuelled by the means to attract 'support' be that on the terraces, sponsorship or corporate base. Therefore corporate image for football clubs is with the aim of attracting 'supporting' audiences to the football club. 6. On a scale of 1 (badly) to 5 (excellent), rate how you feel your supporters have responded to your 'development' 1 Badly, 0% [0] 2 Poor, 0% [0] 3 No change, 7.14% [1] 4 Very well, 78.57% [11] 5 Excellently, 14.29% [2] This reveals that the football clubs believe that their supporters have generally responded very well or better to the corporate image changes implemented. However care must be taken over this result, as it is from the angle of the clubs and the supporters may not feel the same. Only 7% have responded with no change and there are no negative vibes offered by the clubs concerning the implementation of an image strategy. It appears that through developing a corporate image, supporters are kept happy by the clubs product offering and helps to give the sense of "togetherness" and builds relationships. 7. How have you implemented this strategy? (tick all that apply) Merchandise, 32.25% [11] Advertisements/Media, 29.41% [10] Communications, 35.29% [12] Other, 2.95% [1] As with question 5, there is no one major strategy of corporate image implementation. The result suggests that clubs use a combination of tools to create a corporate image strategy. The major one responded to is 'club communications' but with the spread of results between the three major options being just 5.88% or 2 responses reveal again the integrated nature of a corporate image strategy. Linking to question 6, whatever strategy is employed by the club needs to add value to the core offering and be accepted by the supporter. 8. Does the club believe this strategy will reap financial rewards? Yes, 92.86% [13] No, 0 [0] Unsure, 7.14% [1] Without a shadow of doubt, football clubs believe that through an image strategy extra revenue can be made. Football clubs do not rely as heavily on gate

receipts and are seeking alternative ways of making income. So by having a corporate image, clubs are looking at ways to increase their bank balances and the response here reveals this to be true. With no responses as 'no' reveal the significance clubs place on corporate image to produce money. "Some clubs have been so successful at this gate receipts now only represent around a third of their turnover, with other areas...forming a significant part of their business" (Mintel report 1998, page 1) 9. Has your club's logo/badge been adapted at all, in the last 25 years? (i..e since 1975) Yes, 80% [12] No, 20% [3] Unsure, 0% [0] Image is often portrayed through a symbol and this result confirms the strength football clubs place on their badge. It is shown that clubs often adapt their badge to meet their image change. Sunderland did this and as this result reveals clubs in general have adapted their badge during the last 25 years. Chelsea said that although they had not adapted their club badge, Chelsea Village (the holding company of Chelsea FC) had introduced a badge: "...the current Leicester City badge was adopted in 1991 with the launch of a new corporate identity...the badge was designed with a more powerful image..." (Leicester City, Information Brochure 1998/1999, page 8) 10. Has your club (during the same period) introduced any 'supporting' logo/badge (of the main club badge) or any other strategies? Yes, 60% [9] No, 40% [6] Unsure, 0% [0] From the above there is a clear indication that some clubs have introduced a supporting strategy, external to that of the main club badge, as a means of corporate image. This could be so that the main club badge does not get damaged if the strategy fails. But there are 40% of clubs who feel that the main club badge is sufficient enough for their image strategy and so use that. Clubs like Huddersfield Town has introduced a supporting strategy/badge/logo ('HDONE') so that they can add further to their merchandise portfolio and help build the relationship with the supporter. 4:1:1 Questionnaire conclusions It can be announced that through the questionnaires and the interviews (see later section) that the primary research as proved the hypothesis. Corporate image is clearly a business tool clubs are thinking about, creating and implementing as a mechanism to further emphasise their product offerings to all their stakeholders. From the research found here it can be remarked that corporate image is vital to the success of football clubs and thus proving the hypothesis.

4:2 General synopsis of interviews (For the questions and answers in full refer to appendices 19 & 20) Manchester City: Manchester City clearly believes that an image strategy is required and is vital to a football club. They see it as a means of displaying their product to the wider community and supporting the activities of the supporters club network. City has diversified into merchandise areas not traditionally associated with football, but has maintained the traditional approach through their corporate image strategy to their unique customer. Leicester City: Believe that a corporate image strategy is the tool to "promote the club to the external audience". They say it must be an ongoing process and aim to attract anyone with an interest in the club. As with Manchester City, Leicester also believe that the image strategy will support other initiatives in order to meet the needs of their supporters. They hope to promote the right product to the right audience and so use this image strategy and the research entailed to enforce this need. Both clubs have successful shown that the hypothesis "A positive Corporate image is vital to the success of English football clubs" is proved. In the final chapter the conclusion to the hypothesis will be made, after evaluating all the data found in the pervious chapters. Chapter 5 The hypothesis was developed through an understanding of marketing, corporate identity/image and the football industry. It's aim to apply interests in these areas to answer the set hypothesis. Through a detailed analysis of available literature and the formulation of primary research helped to establish that the hypothesis could be stated true or proved. Marketing is the discipline, but often organisation's (football clubs) are developing methods to distinguish themselves from the alternative brands. Through having a distinguished and integrated corporate image, the author can clearly and confidently state that this will create a unique position for the organisation/club and thus help to be a vital link in the success of clubs. Of course, other factors exist in order to be successful, but the image strategy helps to display the brand to be offered to the external audiences. Through detailed primary research it was found that 86.6% of clubs believe that they have a corporate image strategy and with this 93.3% state that such a strategy will complement 'on-the field' activities and 23% believe that it will help to attract supporters to the club. These are some of the success variables football clubs have and so validate the claim that by having a positive corporate image is vital to the success of football clubs, adding value to the core product. It is certainly the clubs researched attitude that by holding a corporate image will boost financial capabilities (93%). The need for a corporate image strategy in football can be examined as such: * Helps to augment the core offering * Vision which encompasses the whole organisation * Displayed to the external audiences and as such can help create a Unique Selling Proposition * Satisfies the needs of all stakeholders * Reinforces the brand * Turns an intangible product into a tangible offering

Through the in-depth research conducted with Manchester City and Leicester City, it is clear that football clubs are putting the theory of corporate image into practice as a means of better satisfying their marketing needs. It is believed that marketing can be unilaterally applied throughout the football spectrum but corporate image is the means to differentiate the brand. Football is all about creating long-term/sustainable relationships, through relationship marketing theory this can be achieved. Through an integrated strategy, all the stakeholders of the football club can feel they are a part of the clubs success and so the dream -the idealisation -of the football industry can be felt by all stakeholders. Relationship in football is stronger than any other industry, with very few ever brand switching. Brand allegiances are created by genealogy, it is passed down throughout the family-tree. For this reason football clubs know they will have 'customers' in the future, the current fans' children will be fans of the club and their children and then their children will be fans. As the Bradford City saying goes "Once a Bantam, always a Bantam" and such can be extended to any football club, irrespective of size, glamour or success. Football is the ultimate brand, no other brand, no other industry can say they have a customer as loyal as that of football clubs. Through corporate image, brand associations can be reinforced to create "brand equity" (Aaker, 1991). The ultimate pinnacle for any football in England is the Premier League. The beauty of football is that any club can achieve that all on the same 'level' -success on the playing field. Unlike other sports, football clubs are unable to achieve 'topflight' status unless they are good enough on the field (core product). Of course the author points out that off the field successes will help on-the-field activities, through increased media representation, community representation and income. Phenomenal changes have engulfed English football since the Hillsborough tragedy, the BSkyB television deal and the attitudes of the owners of football have enabled the industry to have business rhetoric established within it. Marketing over the years has developed into a respected theorem and has become established in the 'beautiful game', which too as become more respected, with less negative connotations. However some believe that football could be approaching breaking point, and that it will be unable to grow at the rate it is going. Whatever happens to football in the future the game has never been as lucrative as it is now: "Big money now rules the beautiful game. 'New football' has changed enormously and all is down to money" (Dempsey, P. & Reilly, K. 1998, page 7) Generally the dissertation went well. Despite the fact that the author found football clubs difficult to respond to research, but indebted to those, that did. The whole concept of corporate image progressed via the help of Jack Yan and integrated well into the football industry. The author was surprised at the number of clubs who openly stated that they have a clear knowledge of corporate image and that it was important to them. It shows that football has become a business industry, shown by the fact that Manchester United is worth more than some of the FTSE-100 companies at the current market capitalisation. What was confirmed to the through this study that the English game is the strongest league in the world and the most affluent for companies to place investment. Therefore the hypothesis "A Positive corporate image is vital to the success of

English football clubs" was found to be true. Clubs must be aware of this business tool and how it can be applied to the club in relation to the needs of the club's stakeholders.