Introducing brand extension strategy in sporting teams: opportunities and challenges

Tickets sale is only a part of the amount of revenues that a sporting teams can create. In this regard, they can obtain additional revenue streams through the implementation of brand strategies that shape the positive emotional attachment existing between supporters and the team. Brand strategy suppose a high brand equity, that is the value added to a product by virtue of its name that is deep-rooted in the minds of consumers. A high brand equity allows increasing both direct and indirect (selling advertisements or making new sponsorship deals) revenues; enhancing fans' emotional connectedness with the team; enabling to offer additional products and services, i.e. a brand extension strategy. The aim of this work is to investigate opportunities and challenges of brand extension strategy in sporting teams, a profitable strategy used by sport organizations to achieve acceptable levels of profitability for their shareholders. Specifically, we focused on line and brand extension adopted by Italian Professional Sporting Teams, referred respectively to decision to offer new product/services in the same product category as the one already served (match/event) while brand extension allows to sporting teams to offer new products and services beyond the organizations' core product.