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The controversial nature of fantasy football
- 1. THE CONTROVERSIAL NATURE OF FANTASY FOOTBALL THROUGH THELENS OF MASS COMMUNICATION BY DAVID PAULSSON
- 2. THREE ASPECTS OF FANTASYFOOTBALL • Growth • How much has fantasy football grown over the years? • Advertising • How do companies advertise and how much do they advertise? • Business/Legal • What are the business and legal issues with fantasy football?
- 3. FIRST, WHAT IS FANTASYFOOTBALL? • Fantasy Football definition • Fantasy football is a football competition with imaginary teams which the participants own, manage, and coach and with the games based on statistics generated by actual players or teams of a professional sport. • Fantasy football is played on websites • ESPN • Yahoo • NFL.com
- 4. SEASON-LONG VS. DAILY • Thereare two major types of fantasy football • Season-long leagues • Draft at the beginning of the season • You can make trades and pick up free agents • Play against friends or strangers • Lasts the whole season • Daily leagues • Start with a budget • Each player has a different price based on their value • There is a new “draft” every week where you can pick different players
- 5. MY FANTASY FOOTBALL EXPERIENCE •Season-long leagues • Three years • ESPN • 8 total teams • 1 league championship • Daily • Played for three weeks • DraftKings • Won $0 • Stopped playing
- 6. BEGINNINGS OF FANTASY FOOTBALL •Fantasy football started in a hotel room in 1962 • Wilfred "Bill" Winkenbach • First public league in 1969 • Oakland • Andy Mousalimas • Only for a specific few • “All-male sports enthusiasts”
- 7. GROWTH STATISTICS • Asof 2013, over 35 million individuals participate in fantasy football • Every one in five adult males over 12 play a fantasy sport • Estimated to have a $3.5 billion impact on the economy • On average, players spend $110 a year on fantasy sports
- 8. REASONS FOR GROWTH • Fantasyfootball participation has increased with the growth of daily fantasy sports • DraftKings • FanDuel • Both valued at $1.2 billion • Ability to make money • Payouts ranging from $1 to millions • Effective Advertising • Commercials • Web advertisements
- 9. FANTASY BUSINESSES • Growth inpopularity has led to business opportunities • Unique businesses • Websites devoted just to fantasy • DraftKings • FanDuel • Fantasy columns on ESPN, Yahoo • Podcasts • Books • Gambling (which we’ll get into later)
- 10. GROWTH AND THE INTERNET •The Internet is the core reason behind the growth • Websites devoted to fantasy • Websites compile statistics, projections • Keeps users from doing it themselves • Just like everything else, makes it easy for the user • Websites make money through web traffic • Advertising
- 11. COMPETITION AND TRADITION • Season-longfantasy leagues • You can have a league whose members remain intact every year • Families • Co-workers • Friends • Church groups • These groups foster fierce competition and tradition • Examples • The loser has to wear a clown costume • Picking the order of the draft through the Kentucky Derby
- 12. FANTASY FOOTBALL AT WORK •Many employees engage in fantasy football leagues • Out of 1500 surveyed, 16.59% participated in a fantasy football league at work • Fosters participation at work • Employees participating in fantasy football leagues with co-workers were more engaged than employees who didn’t participate • Higher levels of teamwork • Felt more valued
- 13. ADVERTISING • Advertising infantasy football • Commercials • Online advertisements • Partnerships with the NFL and individual teams • Social media • Growth of daily fantasy football has greatly increased advertising efforts
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- 16. FANTASY FOOTBALL ON TV •Fantasy football has drawn more viewers to NFL games than there were before • The number of NFL games watched per fantasy football player has increased as well. • Fantasy football players’ fandom towards their fantasy teams is similar to that of their fandom for their favorite NFL team
- 17. ADVERTISING THROUGH ATHLETES ANDWRITERS • When Floyd Mayweather fought Manny Pacquiao in May, he had a FanDuel logo on his shorts • When American Pharaoh won the Triple Crown, he had DraftKings gear on his back. • Popular ESPN fantasy columnist Matthew Berry is a spokesman for DraftKings
- 18. FUNDING FROM MEDIA COMPANIES •Media companies are investing in fantasy websites • Fantasy sites creating revenue and growing quickly • Competition is fierce between DraftKings and FanDuel • DraftKings • Signed a $250 million advertising deal with ESPN • $300 million deal with Fox Networks Group • FanDuel • $275 million with Time Warner and Comcast
- 19. ADVERTISING STATISTICS • Together, DraftKingsand FanDuel spent more than $27 million for about 8,000 television spots during the first week of the 2015 NFL season. • FanDuel says that is pays out $75 million a week and $2 billion a year • 57 million people across the United States and Canada are participating in fantasy sports this year
- 20. THE COVETED AUDIENCE • Thetypical fantasy football player • College-educated professional • 30s or 40s • Average household income over $90,000 • Why are they coveted? • Disposable income • Of the 49% of fantasy football players who pay to play, most spend an average of $468 a year • Once they start playing, they can get hooked and come back year after year
- 21. HOW MUCH ISTOO MUCH? • Consumer backlash from the torrent of fantasy football advertising • DraftKings and FanDuel are flooding the airwaves with commercials • Consumers are irritated with the amount of advertisements • Online conversation between consumers • During the first week of the NFL season, around 75% of comments made about DraftKings and FanDuel commercials were negative
- 22. LEGAL ISSUES • Asdaily fantasy leagues have increased in popularity, the ethics and legality of daily fantasy sports have come into question • The “daily” aspect is concerning • Mimics gambling habits • The argument for daily fantasy sports is that there is skill involved
- 23. ADVERTISING CONCERNS • Advertising methodsof DraftKings and FanDuel questioned • “They make it sound like it’s as simple as can be,” says lawyer John Fernandes. “Go online, sign up, place your bet, pick your team. Well, where’s the skill in that?” • DraftKings and FanDuel commercials • Some believe that because of the nature of their advertising, they are similar to a gambling institution
- 24. EFFECT ON CASINOS ANDBOOKMAKERS • With the growth of fantasy football, casinos and bookmakers are worried that their business will be taken over by websites similar to DraftKings and FanDuel • As of right now, the federal government does not view fantasy sports as gambling. • This new booming industry, if determined to be legal, may lead to the decline of casinos and bookmakers
- 25. JOHN OLIVER’S TAKE •Comedian and TV show host John Oliver has his own take on daily fantasy sports • https://www.youtube.com/watch?v=Mq785nJ0FXQ
- 26. THE UK ISAHEAD OF THE GAME • Blatant sports gambling is prevalent in the United Kingdom • A legal sports book in Wembley Stadium in Britain • Soccer stadiums have gambling kiosks • Thousands of sports betting shops • How has it helped the UK government? • 100,000 jobs created by the sports gambling industry • In total, it generates $9.6 billion in revenue
- 27. NEW YORK PUTSITS FOOT DOWN • The New York City attorney general, Eric T. Schneiderman, ordered DraftKings and FanDuel to stop accepting bets from New York residents • Determined to violate state gambling law • More than 500,000 daily fantasy football players in New York • Schneiderman: • “It is clear that DraftKings and FanDuel are the leaders of a massive, multibillion-dollar scheme intended to evade the law and fleece sports fans across the country. Today we have sent a clear message: not in New York, and not on my watch.”
- 28. PROFESSIONAL SPORTS LEAGUES • Allfour professional sports leagues, along with individual professional sports teams, have a strong stance against gambling. • However, they continue to maintain their partnerships with daily fantasy websites. • Two of the most powerful NFL owners, Jerry Jones of the Cowboys and Robert Kraft of the Patriots, own equity stakes in DraftKings
- 29. THE FUTURE OF FANTASYFOOTBALL • Fantasy football has grown dramatically over the past decade • Daily fantasy has exponentially grown over the past year • Because of legal questions, the growth in daily fantasy may not last • Season-long leagues will most likely continue to grow, especially if daily fantasy is ruled to be illegal
- 30. THE FUTURE OF FANTASYFOOTBALL • Fantasy football has slowly begun to dominate social media, advertisements, trending topics, and sports conversations, and will continue to do so in the future • As for me, I won’t say whether I think it’s legal or not. All I am saying is that at the end of the day, fantasy football is all up to chance. You can look at statistics and pore over every article ever written about fantasy football, but you have no control over what happens on the football field. • Sure, it’s skill. Yeah right.
Editor's Notes
- #4 fantasy-football. (n.d.). Dictionary.com's 21st Century Lexicon. Retrieved December 10, 2015 from Dictionary.com website
- #7 Hunt, M. (2005, December 11). How Fantasy Football Works. Retrieved December 10, 2015, from http://entertainment.howstuffworks.com/fantasy-football3.htm
- #8 DWYER, B., DRAYER, J., GREENHALGH, G., & LECROM, C. W. (2013). SUBSTITUTE OR COMPLEMENT? FANTASY FOOTBALL AND NFL FANDOM. Marketing Management Journal, 23(2), 71. Carlson, C. (2013). The Reality of Fantasy Sports: A Metaphysical and Ethical Analysis. Journal Of The Philosophy Of Sport, 40(2), 187-204. Hunt, M. (2005, December 11). How Fantasy Football Works. Retrieved December 10, 2015, from http://entertainment.howstuffworks.com/fantasy-football3.htm
- #9 Gouker, D. (2015, December 3). DraftKings or FanDuel? In-Depth Comparison Of DFS Leaders. Retrieved December 10, 2015, from http://www.legalsportsreport.com/3832/fanduel-or-draftkings/
- #10 Miner, C. (2014). FANTASY SPORTS AND THE RIGHT OF PUBLICITY ARE UNDER FURTHER REVIEW. Touro Law Review, 30(3), 789-821
- #11 Miner, C. (2014). FANTASY SPORTS AND THE RIGHT OF PUBLICITY ARE UNDER FURTHER REVIEW. Touro Law Review, 30(3), 789-821
- #12 Davis, S. (2015, September 10). I went to the most insane fantasy-football draft in New Jersey - here's how it went down. Retrieved December 11, 2015, from http://www.businessinsider.com/insane-fantasy-football-draft-2015-9
- #13 Lauritsen, J. (2015, September 4). Why fantasy football at work is good for business. Retrieved December 11, 2015, from http://www.bizjournals.com/denver/how-to/human-resources/2015/09/why-fantasy-football-at-work-is-good-for-business.html
- #17 Nesbit, T. M., & King, K. A. (2010). The Impact of Fantasy Sports on Television Viewership. Journal Of Media Economics, 23(1), 24-41. doi:10.1080/08997761003590721 Dwyer, B. (2011). The Impact of Fantasy Football Involvement on Intentions to Watch National Football League Games on Television. International Journal Of Sport Communication, 4(3), 375-396.
- #18 Flood, B. (2015, July 6). How Daily Fantasy Sports Became a Heavyweight in the Advertising World. Retrieved December 11, 2015, from http://www.adweek.com/news/advertising-branding/how-daily-fantasy-sports-became-heavyweight-advertising-world-165704
- #19 Perlberg, S. (2015, August 28). DraftKings Starts Fantasy Football Ad Binge. Retrieved December 11, 2015, from http://blogs.wsj.com/cmo/2015/08/28/draftkings-starts-fantasy-football-ad-binge/
- #20 Drape, J., & Belson, K. (2015, September 16). An Ad Blitz for Fantasy Sports Games, but Some See Plain Old Gambling. Retrieved December 11, 2015, from http://www.nytimes.com/2015/09/17/sports/football/draftkings-fanduel-fantasy-sports-games.html
- #21 Chudgar, S. (2013, August 12). Fantasy Football Players Are Dream Demographic -- If You Can Get Their Attention. Retrieved December 11, 2015, from http://adage.com/article/media/fantasy-football-players-a-dream-demographic/243585/
- #22 The Consumer Backlash To Fantasy Football Ads | PYMNTS.com. (2015, October 1). Retrieved December 11, 2015, from http://www.pymnts.com/in-depth/2015/the-fantasy-football-advertising-nightmare/
- #23 Comeau, Z. (2015, September 29). DraftKings and FanDuel on 'blurry' legal ground with skill argument. Retrieved December 11, 2015, from http://www.metrowestdailynews.com/article/20150926/NEWS/150926530/?Start=3
- #24 Comeau, Z. (2015, September 29). DraftKings and FanDuel on 'blurry' legal ground with skill argument. Retrieved December 11, 2015, from http://www.metrowestdailynews.com/article/20150926/NEWS/150926530/?Start=3
- #25 Heitner, D. (2015, September 16). The Hyper Growth of Daily Fantasy Sports. Retrieved December 11, 2015, from http://www.forbes.com/sites/darrenheitner/2015/09/16/the-hyper-growth-of-daily-fantasy-sports-is-going-to-change-our-culture-and-our-laws/
- #28 Bogdanich, W., Drape, J., & Williams, J. (2015, November 10). Attorney General Tells DraftKings and FanDuel to Stop Taking Entries in New York. Retrieved December 11, 2015, from http://www.nytimes.com/2015/11/11/sports/football/draftkings-fanduel-new-york-attorney-general-tells-fantasy-sites-to-stop-taking-bets-in-new-york.html
- #29 Bogdanich, W., Drape, J., & Williams, J. (2015, November 10). Attorney General Tells DraftKings and FanDuel to Stop Taking Entries in New York. Retrieved December 11, 2015, from http://www.nytimes.com/2015/11/11/sports/football/draftkings-fanduel-new-york-attorney-general-tells-fantasy-sites-to-stop-taking-bets-in-new-york.html