Corporate- The Sports Dilemma

Disney has had a sad history with sports, but it could be so much better. The businesses dealing with sports are not linked well and as such do not support one another as they could. Disney knows that sports are the best method to reach the coveted target demographic of males (both young and old). The main sports business Disney controls is ESPN, which is simply a money making machine, but Disney still needs to know that they can do more with sports.

ESPN- This is one of Disney's best decisions. ESPN is not simply Sports Center or Monday Night Football, but is a brand. ESPN will continue to make more money and give Disney the access it needs to the male demographic consistently. Additionally, ESPN gives Disney an entry into reality events which is always a good defense against the old "Disney is Fake" argument. Where Disney can improve with this is that they only own 80% of it; Hearst corporation owns the other 20%. Though 80% represents the controlling interest, Disney should acquire the remaining 20% from Hearst, making Disney the full owner of the worldwide leader in sports.

World class Golf courses- Walt Disney World's golf courses set the standard for courses and are frequently used by PGA tournaments. Disney has done very well with these courses and should treat ALL of their sport facilities the same as these.

Wide World of Sports- The creation of this area in Walt Disney World was an inspired idea that fell flat fairly quickly. Sports facilities of all kinds made Walt Disney World the "it" destination to play sports in Florida. Recently, Disney merged the Wide World of Sports with the ESPN name. Additionally, Disney struck a deal with the Atlanta Braves to play a few spring training games there. Unfortunately, that's about it for entertainment unless you're a parent of a high school soccer player and you've come to watch your child. Put simply, Wide World of Sports doesn't have much (if anything) to offer on a daily basis because there isn't much to watch and you can't go on and play. Wide World of Sports needs a few changes making it either more accessible to the guests or more professional sports teams to watch.

Many people may have forgotten that Disney owned majority interest in two sports teams- The Anaheim Angels and the Anaheim Ducks. The purchase and management of these was to help make Anaheim a resort destination similar to that of Orlando. Though Disney divested itself of these businesses and did not view them as profitable in the long run. This was a gross misconception. The businesses are profitable, but Disney had simply never run a professional sports team. If given time, resources, and opportunity Disney can make these businesses profitable and enduring. Some possible solutions are given:

  - Attempt to purchase (or re-purchase) local sports teams in Anaheim and Orlando. Disney must be careful to avoid a conflict of interest (by owning ESPN and a team), but can achieve this successfully if the teams are kept under the Disney name and do not report to ESPN. Potential teams in California include the Los Angeles Angels of Anaheim (MLB), The Anaheim Ducks (NHL), and The Los Angeles Clippers (NBA). These teams will likely be expensive, very expensive at this point. In contrast, Florida may present the best opportunities. The Orlando Magic (NBA) began playing in its new AMWAY center arena in 2010, but Disney could likely negotiate several games to be played at Wide World of Sports. The most promising prospect is that of acquiring the NFL's Jacksonville Jaguars franchise. The Jaguars are a struggling franchise and the only professional sports franchise in Jacksonville. They play in Everbank Field and rarely sell out more than half of the field's tickets. The owner, Wayne Weaver, has been quoted as saying that the current attendance levels are unsustainable to keeping a professional sports franchise. So what should they do? Disney should buy the Jacksonville Jaguars or at least make a long term deal to make Wide World of Sports the regular home of the team. They should rename them, rebrand them, and have them play out of Wide World of Sports. The local tourism figures would skyrocket for evenings at Walt Disney World. Imagine the revenue, cross-sales, and attendance that Downtown Disney and all the Disney hotels would accommodate. Disney could also look into purchasing the Tampa Bay Rays, an organization that has publicly stated they are looking for a new home and that has not been drawing forecasted attendance numbers.
- Disney should make Wide World of Sports publicly available for any professional sports team if their local city has undergone a natural disaster.

If Disney is really serious about reaching males and increasing non-park attendance then it needs to re-enter the sports businesses. A professional sports franchise will truly give Disney the resort destination concept it was searching for by attracting both local and distant guests to their resorts. Disney needs to realize what it has: ESPN- the worldwide leader in sports, one of the largest sport facility complexes in the world, and a loyal fan base.