Fan Equity in Sports

Over the past several months three major legal events have affected fan equity in sports. A class action lawsuit involving the New England Patriots and coach Bill Belichick for customer deception, a former NBA referee Tim Donaghy plead guilty in federal court to charges that he bet on games he officiated, and quarterback Michael Vick was indicted by a federal grand jury in connection with the alleged dog fighting ring, all of which contributed to the degradation of fan equity in sports through racketeering or organized crime.

Before I continue, what is fan equity? How is it incorporated in sports? When and where is it an issue today? And most importantly, why is it being affected and diminished? A sports fan, or aficionado, or supporter is someone who has developed an intense, liking and appreciation for a sporting club, person, group of persons, company, product, artistry, idea, or trend (Wikipedia). Sports fans of a particular discipline constitute its fan base. These people in turn invest devoted time, energy and resources to the following of this entity. Equity, in this case, is the financial value of someone's property, investment, and asset allocation to sports. Combining these concepts, and fan equity is simply the price of individual, tangible and intangible possessions, committed to a particular sports entity.

From owners to the average reasonable person, everyone involved in sports has an interest in individual athletes and team performance. Sports enthusiasts track the standings of teams, the performance of superstar athletes, and the decisions of team administrators much as traders track markets, stocks, and companies. The role of publics, in terms of fan equity is critical because it affects and is affected by performance, competitive balance, and earnings. Leagues must monitor these factors because they are central to their profits and the publicity generated from sports fans. But can we begin to put a price on fan equity? I can't even begin to recall the countless number of games, media interaction, and hours of support and I have devoted to the Detroit Pistons and Tottenham Hotspurs. The time, money and energy fans put towards teams are incredible. Not to mention the pain and suffering from the agony of defeat or the feelings of love, joy and passion that were invoked from winning a championship. The number of total hours fans consume with regards to sports, including fantasy drafts, news reports and regular season games, including their value in terms of time, energy and money spent is invaluable. There isn't a dollar figure that can be placed on that loyalty or fan equity. This is why fan equity is so important to sports.

Fan equity is an issue we need to address because it is being affected across all sports. We need to look at the modern era of technology as well as the cognitive and identity diversity. Today and in the future both leagues and publics are organized, not to follow a local team, but to follow competition. This means that a game attracts a much larger, more diverse audience as opposed to merely the local, partisan followings. As this audience develops internationally, diverse fans will combine into an enormous herd of fan equity and revenue sponge, providing unlimited new market potential. Fan equity is driven by expectations, passions and desires to celebrate winners. People want to see the best combination of the most entertaining, electrifying and dazzling players compete and win. However, with the incidents involving the Patriots, Vick, and Donaghy, and even the Italian soccer scandal of last year, fan equity is being tarnished, thus threatening the status quo. Cheating by teams, betting on games, and tainting of team and individual identities are all significant reasons damaging fan equity. It is undermining to fans because it destroys their love, devotion and hard work put forth into sponsoring teams and athletes. I am sick to my stomach that I possibly won't get to see the talented, mesmerizing Michael Vick in professional football again after being glued to his every move in year past. Yes, my equity in the sport dropped because of his poor judgment and consequently by not being able to see him play. I can't even imagine how a tried and true Atlanta Falcons fan feels.

Take the Racketeer Influenced And Corrupt Organizations Act (RICO), 18 U.S.C. § 1961 et seq., which is a general law against bribery and racketeering, and normally involving organized crime); conspiracy to commit sports bribery (under 18 U.S.C. § 224); and interstate travel with the intent to commit bribery (under 18 U.S.C. § 1952) and apply it to fan equity. Here, an individual, Michael Vick, a team, the New England Patriots, and an official, Tim Donoghy engaged in unlawful activities that leave fans less interested, heartbroken, and sour tongued. The language of RICO makes it a crime for those with a significant role in operating any business, government office, labor union, social or political organization, or informal grouping to commit a series of crimes in furtherance of that organization's goals or by using the organization's resources. And conversely, fans are subjected to unconscionable commercial practice, deception, fraud, false pretense, false promise and misrepresentation. Who is going to want to attend a game if the outcome is rigged or if the value of fair competition is stained? Fan equity in sports is harmed more and more by each one of these blemishes.

Caveat emptor means "let the buyer beware." The average sports consumer, customer, or fan in these instances pays the ultimate price. We are deceived, lied to, provided false promises of fair competition, misled, and cheated. This misrepresentation by to league to its customers is the greatest sin. We buy jerseys, pay for tickets, provide stadium rents, and most importantly provide fan equity to sports. It is a slap in the face that fans' obligations are manipulated in this way. Leagues must do whatever is necessary to prevent this type of behavior for the public good or maintaining the strong bonds shared between fans and sports.