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EBM Assignment Three

L.A. Galaxy

(Student Name)

(Date)

Carol Wonsavage, Entertainment Business Models

Why I chose this company:

Being from Los Angeles, I am a fan of the L.A. Galaxy and support its mission of establishing a higher profile for soccer in America. It has among its players one of the biggest names in the franchise. I am also interested in sports marketing as a possible career choice.

Background Information

The L.A. Galaxy is a professional soccer team owned by AEG based in Los Angeles, California. Competing in the MLS league, the highest level in both the United States and Canada, L.A. Galaxy are one of the league’s most-decorated clubs as well as reigning MLS Cup Champions ("Lagalaxy.com review," 2013). The team was founded in 1995 and became part of the ten members of MLS. The Galaxy also reached a 10-year $55million contract with Time Warner Cable in 2011 (Baxter). It is one of the earliest successful U.S. soccer franchises, a pioneer before soccer caught on more broadly after 2010, and pioneered the tradition of building a team around one or more successful stars from abroad.

Bruce Arena, a former US national team coach, is the head coach for the L.A. Galaxy. Originally, The Galaxy played their home games at the Rose Bowl in Pasadena, California but in 2003 moved to the StubHub Center in Carson. The Galaxy is the most popular MLS team around the world including some of the best players such as Robbie Keane, Landon Donovan and David Beckham. Landon Donovan signed a four-year, $10M (Baxter, 2013). David Beckham’s $250M for 5 year deal move to The Galaxy is what sparked their popularity (Davis, 2007).

The Galaxy has won numerous Cups and Awards. They have won the MLS Cup four times, the MLS supporters’ Shield four times, the Lamar Hunt U.S. Open Cup twice, and the CONCACAF Champions’ Cup which they are just one of two MLS teams to win the award.

Customer Segments

· Men 18-34: The main target customer for the L.A. Galaxy games are men ages 18-34 who enjoy watching sporting events. Based on a chart found on Sports Business Daily fans ages 18-34 make up 37.8% of the attendees. On average 60.5% of the fans attending MLS games are males (Scarborough Sports Marketing). Many of the fans are also soccer players themselves and enjoy watching a high intensity game with friends or family.

· Sponsors: Another customer segment includes sponsors and potential sponsors for live games, the arena and game telecasts. Sponsors can be the brands with exclusive rights to provide team jerseys or shoes; exclusive venders of beer or soft drinks, airlines providing team travel, and more.

Value Proposition

· Famous Athletes: L.A. Galaxy has numerous famous athletes on their team including David Beckham, Robbie Keane, and Landon Donovan. All three of these athletes are on the top paid athletes: Robbie Keane earning $4,333,333, Landon Donovan earning $2,600000 and David Beckham on top with $6,500,000 (Kenney, 2013).

· MLS Soccer Franchise: With some of the top athletes in MLS every L.A. Galaxy game is a highly competitive game that will keep fans at the edge of their seats. Being one of the most popular MLS teams worldwide many people who visit California and enjoy soccer always make it out to a game. Other fans are simply locals who are huge fans and enjoy rooting for their favorite team.

· Championship Team: Fans attending the L.A. Galaxy get to attend a match with a championship winning team. The Galaxy have been the 2013 MLS National Cup champions.

· StubHub Center: this iconic arena, located in the heart of Los Angels, is part of the fan appeal. The team shares it with other LA athletic teams.

Channels of Distribution

· The Live Game: Their biggest channel of distribution is live games played both at home and on the road. An average of 22,283 attend every home game. By bringing the fans to the live event that opens several opportunities for L.A. Galaxy to sell their merchandise, promote new merchandise and events, and advertise many things.

· Cable and network outlets. As part of FIFA, the team is seen on US and international TV outlets, such as ESPN. The individual stations or cable outlet depends on the negotiation with the MLS league and specific outlets.

· Live Stream: L.A. Galaxy brings in fans from all over the world. On their website where they give fans a link to international broadcasts (due to the international FIFA association). Soccer comes in 2nd after NHL with fans spending 20 or more hours on the Internet with a percentage of 13.8% (Scarborsough Sports Marketing).

Customer Relationships

· Social Media/website: The Galaxy does a fantastic job at keeping up to date with their fans online, they have an account on Facebook, Twitter, YouTube, Instragram, Google+, Pinterest, and FourSquare . The Galaxy has a total of 152,846 followers on twitter and a total of 700k likes on Facebook.

· Charity Youth Camps: This is a great way that L.A. Galaxy keeps in touch with their younger fans is community service initiatives and charities in the LA area. . An example, the team presents camps for all ages for simply one day or weeks at a time. Many of these camps are for under-priviledged youth. ("Camps & clinics,”). They also provide grants to local youth non-profits.

· MLS Pubs: L.A. Galaxy has numerous pubs for fans to go watch the game. The pubs are located close to the field such as Buffalo Wild Wings, or far from the field like Gallaghers Pub and Grill in Long Beach or Ye Olde Kings Head in Santa Monica.

· Merchandise: in the online store and at the games is also an important revenue stream.

· Viewing parties: L.A. Galaxy holds “Galaxy Viewing Parties” at the Buffalo Wild Wings near the stadium for the fans, which other Galaxy legends will join.

Assignment 1 Canvas Outline:

L.A . Galaxy (Student Name)

References