Re Seahawks/Mercata/Go2Net
seattlep-i.com
Sports Business: Allen links Seahawks to e-commerce world
Monday, September 20, 1999
By ANGELO BRUSCAS
SEATTLE POST-INTELLIGENCER REPORTER
Paul Allen's wired world has hooked up more than a new head coach for the Seahawks.
In what is being forecast as an innovative connection between Allen's NFL team and his ever-expanding multimedia network, online cooperative buying service Mercata.com has signed to sponsor the Seahawks' e-commerce site.
The idea behind Mercata, in which Allen is a prime investor, is to gather like-minded buyers to drive down prices on products, such as official Seahawks merchandise. Under the new venture, each item in Mercata's Seahawks line can be purchased by fans who can save through cooperative buying: as much as $11.71 off the $45 retail price of a Puma replica No. 12 fan jersey, or $10.69 off a Shawn Springs jersey.
But the Mercata link also offers Seahawk fans opportunities to purchase minidisc players and boomboxes, as well as sports merchandise.
The link between the two businesses is intended to capitalize on fans who regularly turn to the Internet for information about their teams.
"We continue to see the number of visits and impressions grow every year on our site, and that's consistent with the leaguewide average as well," said Scott Patrick, Seahawks vice president for marketing.
Now when users enter the wired world of the Seahawks, a Mercata icon appears at the top of the Seahawks home page, inviting fans to pool their collective resources to purchase products not only from the Seahawks store but also items from Mercata's catalog that might interest football fans in general.
The company is backed by Allen's Vulcan Ventures. A report from the Boston Consulting Group estimates that sales of goods online will increase 145 percent this year over 1998, making e-commerce a $36.6 billion business. Sports business will be a big part of those numbers.
Using what Mercata calls a PowerBuy, the more people who bid on an item, the lower the price goes.
"Their whole thing with us is that shopping is now a team sport," Patrick said of Mercata's relationship with the team. "When you think about that, it's really true. The more Seahawks fans get online and participate in a PowerBuy, shopping does become a team sport."
The next move probably will be to link the Seahawks with Go2Net Inc., another Allen venture. In March, Allen paid a reported $750 million to buy a controlling interest in the Internet portal.
"Comprehensive portal services such as Go2Net delivered directly to set-top boxes will be a critical component in the future of cable," Allen said at the time of the Go2Net purchase.
Football fans who want to customize their TV programming on game day might find a link with Go2Net in the future. So linking the business with the Seahawks and the Allen-owned Portland Trail Blazers is only a matter of formality.
"It's in the formative stages of discussion, but I think you will see Go2Net have an emerging presence with the Seahawks in the future," Patrick said.
Patrick, who held a similar position with the Sonics before being hired by the Seahawks after Allen purchased the team, sees the Internet as a new mass market that sports teams are just starting to explore. Having an owner whose companies are looking for ways to cross that territory gives the Seahawks a huge advantage over other organizations.
"It's a little bit of an uncharted frontier out there," he said. "It's a great opportunity (working for Allen) and we look for ways to assist each other and cross-promote. I found it to be a real productive environment." |
