When I started business school I promised myself that I would enter at least one case competition. I am proud of our work, proposing a digital marketing strategy for the Detroit Pistons at the MIT Sloan Sports Analytics Conference. Incredible learning experience.

1. 2017 MIT Sloan Sports Analytics Conference
First Pitch Case Competition
Emily Hutchison
Matthew Bey
David Gasparovich
#SSAC17

2. Executive Summary
The MIT Group should develop creative digital media content for the Detroit Pistons. Relative to other
media companies, MIT Group’s content will generate the most revenue by leveraging strategic emerging
technology, Detroit’s "comeback” story, and the Pistons' new, downtown arena.
Partnering with existing broadcasting rights holders to stream content on
YouTube will result in increased ad revenue, greater reach among adults 18-49,
and exposure to international markets.
In-stadium beacons can be used in multiple ways to generate revenue,
taking advantage of the state-of-the-art Little Caesars Arena campus. Beacons
would also generate monetizable data for the franchise about attendee behavior.
Wearable technologies can attract additional sponsorship revenue,
streaming players’ health and performance statistics to the fan’s second screen,
whether at home or at the game.
Virtual reality kiosks will create a new revenue stream. For the 2017
season, ad revenue can be generated from original, creative content, recorded
by the team and sold to sponsors at a premium cost per impression.
A #DontCallItAComeback social media campaign including fan contests and
Detroit social impact initiatives will provide an additional vehicle for sponsorship
revenue and brand exposure.

3. • Participation is critical to market exposure:
• Basketball is the most popular youth sport
in the United States.
• Low cost to participate; No expensive
equipment; Find a ball and a hoop.
• Non-seasonal; Any geography;
Indoor/Outdoor
• 1,230 regular season games per season.
• Growing, international fan base.
• “The NBA is the most tech-savvy sports league
in the world, and it’s not even close.”1
• NBA franchise values have tripled over the past 4
years.2
Business Potential: NBA
• The NBA has the youngest viewers, with 45 percent of its
viewers under the age of 35.3

4. Detroit: A Comeback Story
The Pistons: A Coming Home Story
• After two decades of national infamy for declining industry, declining population, political corruption, increased crime,
and increased poverty, the city of Detroit is making a real comeback.
• Detroit’s automotive industry is healthy again, with exciting prospects on the horizon for autonomous vehicles.
• Billions of dollars in new commercial real estate investments, fueled in large part by Dan Gilbert, are bringing business
back downtown.
• Growing innovation and entrepreneurial movements draw parallels to the growth and energy of Brooklyn, NY in the ‘90s.
• MIT Group’s media strategy can include social impact elements and play a role in Detroit’s comeback story. Social
impact is not only good for the world, but currently very attractive in business.
• Since 1978, the Pistons’ home arena has been in the suburbs of
Detroit. In 2017, the Pistons are playing their first season
downtown at the newly-constructed Little Caesars Arena.
• This state-of-the art facility will contribute greatly to Detroit’s
comeback, but also afford the Pistons tremendous potential for
digital technology utilization.
• The multi-building property will include a pedestrian area covered
by a glass rooftop. It will house multiple shops, restaurants, and a
hotel, in addition to the arena.4,5
• Games and events in the building will be projected on the
aluminum outer shell of the arena.5
• The arena will also be home to Detroit Red Wings hockey.

5. The graphic illustrates the percentage contribution of the core revenue streams
of an average U.S. professional sports franchise.6 Digital technology is at the
core of MIT Group's proposal to increase revenue across these existing
business units and will be critical in developing new sources of revenue.
In 2016, the Pistons were presented with the first ever NBA Team
Marketing Campaign of the Year Award.7 The campaign centered
around the team's core values: playing hard, smart and together.
It also highlighted pride and togetherness of the Detroit
community. It is a wise strategy for MIT Group to choose a
cutting-edge marketing franchise like the Pistons.
Only 36% of the Pistons’ value is generated from their own fan
base.8 The most valuable teams in the NBA generate most of
their revenue from their own fan base. This means the Pistons
have significant potential to increase revenue dollars from the
Detroit market.
Only 17% of the Pistons’ value is generated from it’s arena (tickets, non-
NBA events, etc.).8 The move from the Palace of Auburn Hills to the
new Little Caesars Arena, in concert with the digital proposals herein,
should increase the arena’s contribution to the Pistons’ team value.
The Business of the Pistons

6. Renegotiating Broadcasting Rights
● The Pistons should partner with existing rights holders to stream
games on YouTube; an outlet which reaches more adults ages 18-49
than any TV network.
● Monetize online streaming and playback of games with an advertising
revenue model by extending existing sponsorships and selling
inventory to new sponsors.
● The franchise can sell online content with bespoke sponsorship
packages, in partnership with YouTube, to current sponsors at a
premium CPM (cost per 1,000 impressions) of $30.
source: Mashable.com
Business Impact
● Diversify revenue by monetizing content online
and continuing to broadcast games on linear
television (i.e. Fox Sports Detroit).
● Develop and grow the younger audience to sell
these highly sought after impressions to the
advertisers.
● Cultivate the next generation of fans on a
platform where they are engaged and leaned into
Pistons content.

7. Proximity Marketing
● Beacons (proximity marketing devices) should be used to maximize
revenue generated from fans in attendance. Opportunities include seat
upgrades, loyalty campaigns, merchandise, season tickets, concessions,
and indoor navigation.
● As of Q2 2016, only 53% of NBA teams have implemented beacons9,
allowing for tremendous market potential.
● Little Caesars Arena is a unique, multi-building campus, including
external bars, restaurants, and a hotel. Beacons can also be used at
these adjoining properties.
Business Impact
● The Pistons should recoup the cost of beacon
installation within the first season, as did the
2014-15 Golden State Warriors.9
● Ads can be retargeted to fans after leaving the
game for maximum exposure.
● Valuable psychographic data can be collected
about the fan base, building a CRM database for
future email and digital marketing campaigns.

8. Wearable Smart Technology
● Pair smart wearable technology with fans’ second screen via a mobile
app and social media pages.
● Wearables will produce real-time data such as player acceleration, heart-
rate, and vertical jump height. Data will be streamed to fans on the team
app and social media pages.
● The Pistons can extend the current sponsorship and advertising
contracts to reach the fan’s second screen.
● Enhances the fan experience by allowing them to feel more connected to
the athlete during competition.
Business Impact
● Develop and monetize highly engaging in-app
content to sell to advertisers at a premium CPM.
● Add app users to the team‘s CRM database for
future sponsorship pitches and ticket sales
campaigns.
● Estimate only 500K app downloads required to
break even on cost to implement.
HEART RATE: 165 BPM
VERTICAL: 25 IN.
SPEED: 3.4 MPH
ANDRE DRUMMOND - CENTER - #0
POINTS: 12
ASSISTS: 3
REBOUNDS: 4
FOULS: 1

9. Virtual Reality
● Use virtual reality technology to provide fans access to 90/180/360 degree views
of team practice sessions and pre-game shoot-arounds.
● Install 2 virtual reality kiosks in the Little Caesars Arena concourse and the
surrounding complex to allow fans to watch highlights, replays, and select
Pistons footage.
● The technology should gradually be expanded around the arena over the course
of subsequent seasons as it improves in performance.
● In five years, assuming technology has matured, negotiate with the NBA, Turner
Broadcasting, and Disney10 to allow live Piston broadcasts for every game.
Business Impact
● Charge $10 per session to the fan and extend
current sponsorship agreements to include 1 ad
placement per virtual reality session.
● Be a first mover in selling VR ad inventory and
create an association between the Pistons brand
and premium content.
● Investment in content creation and kiosks should
be recouped within the 1st season.

10. #DontCallItAComeback
● Create a social media campaign celebrating the team’s return to downtown, and
the city’s return to glory. Promote the hashtag #DontCallItAComeback on every
major social media outlet. Inspire the city and the team to rally around one
another, and inspire the country to rally around Detroit.
● At the game and around town, fans can upload photos displaying their love for the
team and the city with #DontCallItAComeback for a chance to win tickets or prizes.
Winning photos can be shared on social media sites and broadcast on Fox Sports.
● Suggest social impact partnerships with community groups like the Detroit
Pistons Foundation and the Detroit Urban Innovation Exchange.
Business Impact
● The campaign will continue to fuel increased
ticket sales and season ticket renewals.
● Social impact will increase brand equity and
endear the Pistons to the community.
● The team and its sponsors can retarget
consumers with future ads for increased
exposure.
#DontCallItAComeback

11. 2017 Season 2-5 Years 5+ Years
In Arena and
Surrounding Complex
#DontCallItAComeback
Limited Number
of Kiosks;
Recorded Content
Citywide Sports Bars,
Rec Centers, and
Sporting Goods Stores
Expanded Stations
Around Arena
Full Immersion
Live Game Streaming
Technology Timeline

12. Cost and Return on Investment
Stream on YouTube - The team’s cost per year of opting out of a TV contract with Fox Sports Detroit would be $25M.11 The
team would need to negotiate to have YouTube pay $20/CPM (YouTube keeps $10 out of the $30/CPM charged to
advertisers) and then need to sell 1.25B impressions across 82 games and additional content uploaded. If the Pistons upload
1 additional piece of monetized content per day then they only need to sell ~2.8M pre-roll and mid-roll impressions per piece
of content to break even.
Beacons - The 2014-15 Golden State Warriors installed proximity marketing devices and recouped their costs halfway
through the season from seat upgrades alone.9 Considering the fact that the Pistons share Little Caesars Arena with the
Detroit Red Wings hockey team, their return on this investment should be well within the first season.
Smart Wearables - Outfitting the team with smart wearable technology to track stats for fans would cost ~$200/player. Cost
would include additional wages to developers ($100,000), and the cost for outfitting players (15 players = $3,000). To recoup
$103,000 the team would need to sell 5.15M impressions. Assuming 1 ad is sold, visible on the mobile app, and assuming an
average frequency of usage of 10 times, then the team would only need to 500K downloads to break even.
Virtual Reality - The market for virtual reality is expected to reach $30B by 2020.12 The team will purchase 2 virtual reality
cameras at $60,000 each ($120,000) and 10 headsets at $1,500 each ($15,000). Costs would be recouped by charging a
$10 fee per use and expected ad revenue with an ad load of 1. Assuming a $30/CPM and a cost of $10, 32 people need to
try each headset each home game and costs would be recouped within the first season.
Social Media Campaign - The team will need to deploy some resources to promotional events, photo competitions, etc.
They will also need to absorb the costs of any tickets or prizes awarded. These costs are minimal compared to the
subsequent value the team should realize. The 2015 #DetroitBasketball campaign resulted in 21% boost in full season ticket
sales, and renewal rates at 92%.7

13. It may be difficult to negotiate a custom deal with YouTube and existing rights holders. Existing (national
and local) Pistons sponsors will want priority for ads against Pistons streaming content. The Pistons,
current rights holders and YouTube will need to work out the allocation of revenues.
NBA fans are drawn by superstars. The Pistons do not have any all-stars on their roster this season.
Detroit is not a major market. There is little to no fandom outside of Detroit.
The Pistons will need to get buy-in from players to wear smart technology devices.
A virtual reality headset powered by a cell phone is difficult. Internet speeds are a few years away from
being able to deliver the desired experience.
Today, virtual reality is costly for personal use. Moore’s Law will need to bring the technology cost down
to a mainstream user level.
Challenges and Limitations
We believe the benefits from our recommendations outweigh these challenges, and we are confident in our success.

14. Sources
CITED
1 http://www.forbes.com/sites/bensin/2016/06/02/the-nba-is-the-most-tech-savvy-sports-league-in-the-world-and-its-not-even-close/#5212be0c3882
2 http://www.forbes.com/nba-valuations/
3 https://www.theatlantic.com/business/archive/2014/02/which-sports-have-the-whitest-richest-oldest-fans/283626/
4 http://www.freep.com/story/money/business/2016/07/14/big-new-arena-plans-posh-hotel-medical-center-retail/87083910/
5 http://www.mlive.com/redwings/index.ssf/2016/09/little_caesars_arena.html#0
6 Petrillo, Nick. "IBISWorld Industry Report 71121a: Sports Franchises in the US." IBISWorld. Feb. 2016.
7 http://www.nba.com/pistons/news/detroit-pistons-receive-first-ever-nba-team-marketing-campaign-year-award/
8 http://www.forbes.com/teams/detroit-pistons/
9 "Proximity Marketing in Sports and Events: Q2 2016." Proxbook. Unacast, 2016. Web.
10 http://www.nba.com/2014/news/10/06/nba-media-deal-disney-turner-sports/
11 http://www.freep.com/story/money/business/michigan/2016/11/22/could-a-pistons-move-lead-to-merged-media-rights/94268498/
12 http://promoovertime.com/virtual-reality-sports-sports-marketing/
OTHER SOURCES
http://www.forbes.com/sites/baileybrautigan/2016/03/21/where-all-that-money-comes-from-nba-team-valuations-visualized/#432965663c01
http://www.sporttechie.com/2016/08/05/sports-tech-wire/7-emerging-tech-trends-changing-sports-marketing-game/
https://techcrunch.com/2016/09/15/how-virtual-reality-is-transforming-the-sports-industry/
http://www.sporttechie.com/2016/12/23/virtual-reality/virtual-reality-soccer-games-allow-soccer-fans-to-play-without-real-knocks-to-the-head/
http://www.nba.com/vr
http://www.nba.com/article/2016/10/20/nba-virtual-reality-stream-league-pass
http://sportsworld.nbcsports.com/virtual-reality-sports-arkansas-kentucky/
https://www.forbes.com/pictures/mlh45emmj/detroit-pistons/#6c7efc8a2abc
http://www.pocket-lint.com/news/137301-360-degree-cameras-the-best-vr-cams-no-matter-your-budget
http://www.digitaltrends.com/virtual-reality/nba-virtual-reality-tv-lebron-james/
http://www.sportsbusinessdaily.com/Journal/Issues/2012/01/23/Leagues-and-Governing-Bodies/NBA-revenue.aspx
http://www.mlive.com/pistons/index.ssf/2015/08/fox_sports_detroit_to_televise_1.html
Ebling, Maria R. "IoT: From Sports to Fashion and Everything In-Between." IEEE Pervasive Computing 15.4 (2016): 2-4. Web.