The most recent controversy had
mostly abated until the team posted an article titled
“We Are Very Proud To Be Called Redskins” on its site February 11th.
The team states, “Redskins.com found that there are almost as many schools
using the name Redskins as Cowboys, as only 75 schools use the name Cowboys,
and interestingly just 19 use the name Giants.” The team’s appears to justify keeping
its name by citing that more schools use the term Redskins than Giants has not been
received well by many different audiences. Deadspin’s Drew Magery summed up a
common response by critics when he wrote,
“they posted on their official team website a breathtakingly tone-deaf
excuse that basically amounts to, ‘Hey, high schools do it, too!’”
While the post on Redskins.com has seemingly increased the controversy
about its names, the Redskins are in a very difficult position. Most
definitions of the controversial term describe
it as originating “from the bounty-hunting days, when colonies and companies
would pay settlers for dead American Indians. Scalps, called ‘redskins,’ were
used as trophies and proof because it was too difficult to carry the entire
body.” Clearly, it’s easy to see what many people are offended that a sports
team would be named after such a horrifying practice.
Yet, that is not the only problem
for the team. According to the book Showdown
– JFK and the Integration of the Washington Redskins, the late George
Preston Marshall, the team’s first owner claimed he “chose the name because he had
always been an admirer of the American Indian and because one of the coaches,
‘Lone Star’ Dietz, was himself an American Indian.” Yet Marshall was infamous
for his racist views, particularly when it came to minority players. While
Marshall’s stated intention may have been to celebrate Native American culture,
naming the team after a barbaric practice seems like an odd (and inflammatory)
way to do it.
Despite the controversy, the
Redskins have never really considered changing the name. In fact, the team has
generally taken the opposite approach and has threatened lawsuits against
companies or people who use the name without the team’s permission. For
example, “The Redskins recently asked The
Washington Post to rename the newspaper’s video webcast and blog about
the team, which was called “Redskins Insider,” according to people who have
knowledge of the circumstances. The team had used the name ‘Redskins Insider’
first, and The Post agreed to switch
to ‘Football Insider.’”
There are two main reasons that the
Redskins have likely considered keeping the name. The first is the tradition
justification. For close to 80 years, the team has been called the Redskins.
Why change it now when most fans, media, sponsors, and employees have
associated (and many have loved) the team with that name for so long? The
second is an economic justification, which argues that the Redskins’ name and
brand is one of the most valuable brands in all of sports.
The tradition argument has been
discussed by multiple
sources so we will not comment on this element for this blog post. The
economic justification for the Redskins is more interesting from a B6A
perspective. Because the Redskins’ name is so pervasive, it is generally
accepted the team would stand to lose millions of dollars in revenue and brand
equity by changing it. Yet it is difficult to see analysis as being accurate.
The most common way for brands to generate value is in a commoditized market.
In this competitive situation, companies cannot compete on the quality of their
products because they are generally very similar. Therefore, many focus on
building brands and brand loyalty to command price premiums from consumers. The
most famous example of a brand generating value is Coca-Cola. Despite the lore
around keeping the recipe Coca-Cola a closely held secret, The company’s core
product, essentially flavored carbonated water, is something that can be easily
replicated. In fact, consumers can now buy machines that allow them to produce
their own soda at home for the fraction of the cost of buying a Coca-Cola
product. Yet, Coca-Cola will generate billions of dollars of revenue this year
because their consumers do not want soda – they want a Coke (or another Coke
product). This brand is what ultimately drives much of the company’s value.
The Redskins brand simply does not
create this type of value for the team, primarily because the Redskins do not
operate in a commoditized market. In fact, the NFL (along with most other major
professional leagues) has created almost the exact opposite competitive dynamic
by securing special anti-trust exemptions that has effectively granted the
league a monopoly over professional football in America. Therefore, the
Redskins have little to no competition in the Washington, D.C. market for
professional football.
The little competition the Redskins
may have comes from other NFL. Yet, “competition” here is a misnomer. While
fiercely competing with opponents on the field, the Redskins more often act as
friends with the other 31 NFL teams off the field, especially when it comes to
revenue sharing from television, merchandise, and league-wide sponsorship
revenue. It is unlikely that a name change would impact any of these revenue
channels. It is also difficult to envision the Redskins losing any money on its
individual revenue streams, such as ticket sales, parking, luxury suites,
concessions, and local media rights deals based on a name change. Essentially, the
Redskins are the only provider ofa product that is high demand (professional
football games) in the Washington D.C. metropolitan area. Therefore, it would
be unlikely for a fan to make a decision on whether to attend a professional
football game based on the name of the team.
In fact, the Redskins may actually
make more money by changing its name on two fronts. First, a name change would
allow the team to market new merchandise to its core audiences (although it
would share most of the revenue with other teams in the NFL). Second, there are
at least some sponsors who do not want to be associated with a team with a name
as controversial as the Redskins. Changing the name would allow the team to
target those companies that have been reluctant or unwilling to associate with
the Redskins.
The Washington Redskins are
rightfully considered one of the most valuable franchises in all of professional
sports. Yet the team’s value has little to do with its name and much more to do
with its competitive positioning. The team is set to receive $200
million in national television revenue starting in 2014, while owning one
of the largest stadiums in professional sports. In addition, it faces little
competition for professional football revenue in the Washington, D.C. market with
no other professional football organization in the area. It is difficult to see
how changing the team’s name would impact this advantageous competitive
environment in any meaningful way. This conclusion does not mean the team
should or should not change its name, but it provides little economic
justification for keeping it.
If you slapped another name on Coca-Cola, there would certainly be some consumers that would no longer buy it. Coke's brand recognition (like that of other famous CPG's) is so strong that any change could damage the brand's bottom line -- a problem no NFL franchise faces. This is a smart economic argument and rebuttal to the widely held belief that changing a team name can damage the monetary value of sports franchises, which operate under near monopolistic conditions and a competitive landscape that exists almost nowhere else in the business world.
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