Living in the UK right now feels a lot like supporting a struggling sports team - you want to be optimistic but keep being slapped in the face, the arrival of new managers and players seems to make no difference and there is no end in sight, unless Rob McElhenney and Dead Pool turn up with their multi-millions to save the day - watch “Welcome to Wrexham” if you have no idea what I’m talking about.
So, rather than dwell on the state of the UK Government, Politics or the Economy, let’s pick apart Welcome to Wrexham with a business model hat on. Note, as per usual, I have no insider knowledge and so some of my assumptions may be off base but it’s Just for Fun.
I often talk about big brands innovating “around the box”. What do I mean by that? Using a strength they already have to enable them to create something new. And it’s the power of combining the personal brands of Ryan Reynolds and Rob McElhenney plus Reynolds’s business brands that creates the strength here.
The USP (Unique Selling Proposition):
Every year teams are promoted/ relegated between each of the divisions. So a team from the bottom can, with the right investment and luck, be promoted and make it from the National League up to the Premiership. As I understand it, that isn’t the way that the sports leagues in the USA work. Added to that, there’s a considerable amount of luck involved in football - the best team does not always win. All of this makes for a great premise for a TV Show and what I guess is the ‘pitch’ that McElhenny made to Reynolds.
Due Diligence:
Behind the scenes, due diligence happened before they bid for Wrexham. We can speculate on the ingredients but they must have included elements like sponsorship upside, the ground - big enough for several promotions up the league, and Wrexham’s backstory of the town and the club has great material.
New Sources of Revenue:
The TV show (streaming on FX in USA, Disney+ in UK)
Sponsors - TikTok, Expedia and Aviation Gin are amongst their sponsors - unheard of in the National League
Streaming revenue for live matches in USA
Increased merchandise sales and ticket sales
And if they are promoted then the club’s earning potential increases.
There are endless marketing opportunities: Featuring in FIFA 22/23 video game, increase in social media coverage, using the football club in marketing for Reynolds’ other ventures.
There are also a whole load of purpose-led inclusion initiatives at the club which support the community mission of the co-chairmen - a business cost but purpose-led organisations in action do these things.
And a second TV series has been commissioned, so the value proposition is working, even if the scores aren’t always where they might be.
It’s an ecosystem. Want to see another great ecosystem - look at Oprah Winfrey and her business ventures.
So, rather than innovating around the box, businesses should take note of how their strengths can play in new spaces. It’s working for Rob and Ryan.
The Round-Up
What we’ve been watching listening to?
ThePitch Guy, Danny Fontaine’s podcast interviewing the “Pitch Masters” about sales and the psychology of winning business.
What we’ve been reading?
My friend Tony McNicol (We Do Japan) translated this article from Japanese on cloud-connected period pants.
What we’ve been enjoying?
Check out this reel from the National Trust showing early twentieth-century innovations. I won’t give you spoilers.
This week’s homework (!)
I am starting a podcast, interviewing leaders from different industries about their innovation challenges. Comment or message me with any interesting guests and topics!