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Two years ago Nation Hahn created the Web site UFLaccess.com (the site is not officially affiliated with the league). He created a forum for UFL fans to voice their opinions about the league. Two weeks ago, Nation and I argued about whether or not the league would survive or fail on Twitter. We decided to expand the argument for all to see here at Biz of Football, here it is:
Matthew Coller: First question I have about the UFL is, what, in your opinion, makes it different -in terms of chances for success- from other failed leagues such as the World Football League and XFL?
Nation Hahn: I believe a number of variables exist that make the UFL different.
One, it is starting small. No startup league in history has launched with a four team, six game season and then only expanded to six teams in year two. This strategy has generated a number of positive factors. One, it limits the losses for each owner and the league overall - the XFL lost $60-70 million in year one, the USFL lost well over $100 million a year, the UFL lost $30 million which was spread among owners. Starting small also allowed them to have a high level of talent in year one and to start with a smaller buzz and less of a microscope on them. I know it sounds odd but the lack of attention, in some ways, was perfect for the league in that it allowed them to work out the kinks while not turning people off. Take the XFL, people tuned in during week one - saw awful football - and never returned.
Another variable is that the owners have participated in past leagues and saw what hurt those efforts. They also seem to understand the patience required. William Hambrecht, the founder of the league and owner of the Las Vegas team, has worked on this league for 10-plus years.
Third, they know that it will take a while to make money. Their plan calls for breaking even in year three at the earliest - a marked difference from some past efforts where they expected to make money quickly.
Oh, and more difference with the XFL, they are going to have a second year.
MC: Well, one thing's for sure, they will have a second season. The UFL signed a two-year deal with Versus, so they'll be here until next year at least. Versus is the perfect network for an upstart league because the network doesn't expect high ratings. But, the league scheduled games on different days of the week, making it almost impossible for a potential casual fan to find out when games are on. This was harmful to viewership and if it isn't fixed (let's say, every Thursday) then you could see Versus giving up.
Yes, other leagues had crazy losses and failed quickly, but $30 million is a pretty gaping wound, even if the big wigs of the league say they expected it. Which, from UFL COO Frank Vuono's statements, makes you wonder if they really expected it. He said "I gotta tell you, I never bought into 20,000 (fans) a game. I am telling you that point blank."
So, TV and immediate losses aside, merchandise sales and name recognition are incredibly important factors in starting a new league, the UFL is already planning to move teams (and presumably take on new names...or at least city names) and, those jerseys...well, let's just say they aren't on my Christmas list. Any change in sight to those hideous things?
NH: One of the things that the league will do in year two is work to have more consistent scheduling. Long term, I believe, they see the future of the league on Thursday and Friday nights. In year two they will work to play as many of their thirty regular season games on those two nights as possible.
Vuono was saying that he never expected them to average 20,000 fans in year two, the $30,000,000 loss was expected.
The Premiere Season jerseys were designed to be changed and we will see an evolution of each for next year. Vuono told me during an interview at the UFL's Media Day that they are already working on altering them, as well as expanding the branding package in a way that they could not last year.
Moving teams will be minimal. The Redwoods were always intended to be a Northern California team so a move to Sacramento is in keeping with that tradition. If New York moves, however, it will be due to a lack of proper venues in New York City. The Commissioner was very clear that even if those moves happen, franchise relocation will not an annual hobby as it has been for past efforts.
Select Read More to see the rest of the conversation between Matthew Coller of the Business of Sports Network and Nation Hahn of UFLAccess.com
MC: I'm sensing a bit of an inconsistency here with Vuono's quote. If the league expected 20,000 fans per game and got less than 10,000, then they didn't expect $30 million in losses. Do the math. Twenty-six games, 10,000 fan difference, at an average ticket price of $30 equals $7.8 million that the league expected but didn't get, and that's without mentioning concessions. I'm sure the UFL expected losses, but less is my guess.
Moving on...I'm glad to hear they plan on revamping the uniforms, they look way too ‘80s.
In my article about the UFL losing $30 million, I threw out some things I thought would help the league, I'd love to hear what you think. I said the league needs a better Web site, I made better in my college HTML class. And, you'll have to tell me where the two new franchises are supposed to end up, but I suggested putting them in
smaller markets in hopes that the city embraces its local product. It would be similar to Triple-A baseball or the AHL in hockey. That is how the UFL is branding itself, right? As a minor league for the NFL? Makes sense to me.
What are your thoughts on my suggestions and if you were commissioner of this league, what's the biggest change you would make heading into next year?
NH: The league said in various news reports that they expected to lose between $25 and 30 million I believe. Paul Pelosi, one of their investors, told me prior to the Championship Game that they factored in very minimal revenue from ticket sales in to their revenue spreadsheet.
The website, among other things, will be greatly upgraded in year two.
As for markets, they are considering Salt Lake City, Portland, San Antonio, Austin, Hartford, Omaha and other smaller markets that are still large enough to justify television and sponsorship revenue. As much as is possible they want to be the "main" football game in town. Their aim is to complement the league and to be a solid second tier, for now, and then see how they grow. Their intent is not to necessarily be strictly a minor league forever.
MC: So, if you were commissioner, what changes would you make?
NH: Many of the changes I would make they are already doing. For one, making sure each team has a presence in the local market. For another, expanding marketing and advertising and the website. The league is already working on all of that.
Beyond those changes I would work to produce more behind the scenes and original written and video content to bring the fans behind the scenes. I would also work really hard on consistent scheduling which the league is planning on attempting to do as well.
MC: Well, your pitch is a good one. And, it’s obvious the league has a plan to keep expanding. However, I still say the league either fails after two years or stays alive on Versus for awhile, but never really brings in a significant audience. Let me say Id like to see it succeed, but just don't think anyone can reinvent the oblong ball. I will give you the final word: In short (maybe one paragraph or so), tell me why I should watch the UFL next year?
NH: I would argue that anyone who is a football fan should tune in for at least one game. The product was great last year and it will be better next year. For fans in UFL markets I would say that they should at least attend one game because the ticket prices are cheap and it is a chance to see high level, professional football in your own backyard. The key is that this offers people an opportunity to get in on the ground floor of something that could be big - but for now something that is fun. The games were like college games in terms of intensity and players having fun - as well as players playing with passion because they have something to prove. If you tune in you will see an innovative, fun product and that is all you could ask for.
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Matthew Coller is a staff member of the Business of Sports Network, and is a freelance writer. He can be followed on Twitter
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