De Grandpre discusses
November 23, 2006

Red Bull New York Managing Director Marc de Grandpre recently took part in a Q&A session with MetroFanatic, SoccerNet's Kristian Dyer, and NyNjSoccer's Jason Endres.

MF: Do you think that a big-name addition (Figo, Beckham, etc) will make a difference as far as attendance concerned? Short-term or long-term?
MDG: I think a general overall improvement of the play on the field is needed to make a difference in attendance, not merely bringing in a star big name player. This league and our club in particular has a very educated fan base and they do not want to spend their hard earned dollars on an inferior product. Obviously if we bring in a big name player, we expect him to raise the quality of play on the field, which will then help boost our attendance. We believe that a good product plus winning will grow our fan base slowly but surely.

MF: The history of corporations owning franchises in American sports has not been successful, from CBS/Yankees, FOX/Dodgers, to Disney/Angels and Mighty Ducks. Many of these corporations sell off their teams citing financial losses, Disney doing so even after winning a championship with the Angels. Why would Red Bull succeed where all these corporations with more American experience seemingly failed?
MDG: I cannot speak on behalf of the other corporations, their internal policies and their reasons for selling their teams. I can only attest to the mentality and commitment that we at Red Bull bring to all of our properties. We feel we have made a good investment in this club and this league. And we feel we have the business acumen and experience needed to succeed in this marketplace. The approach we take to all aspects of our businesses is truly unique -- as is our vision -- and are probably much different than the companies you mentioned. Failure is not an option for us.

MF: The presence of the team in the local media has been non-existent. For example, in previous years, Star-Ledger always had a game summary, often with a large photo, would appear early in the paper's sport section. This year, RBNY has been relegated to the back pages. The New York Times doesn't even bother sending a reporter to home games. What can be done to rectify that?
MDG: I do not think your assessment is fully accurate. From my perspective, I think the media coverage over the last half of the season has increased considerably when compared to earlier this season, especially after Bruce Arena arrived. Moreover, the New York Times did in fact send a reporter to several of our home games this year, including the playoff games at home and down in DC. I think this summer was particularly difficult with most of the soccer space in the newspapers being devoted to the World Cup. Having said all that, we are not even remotely satisfied with the amount of coverage in the local media we garner and know that it needs to improve. Winning will certainly help generate more interest in the media.

MF: What comes first, winning or selling more Red Bull?
MDG: Winning.

KD: There is a lot of buzz around Harrison, but there seems to be some skepticism that the new stadium might be priced out of the average fan's wallet. What type of price range are we talking about in Harrison?
MDG: At this time, the price points have not been finalized. However, I do know that they will remain one of the most affordable tickets when compared to our peers in the pro sports marketplace here in the tri-state area.

KD: The Empire Supporters Club has stood behind the team, literally, since 1996. Having seen very little success over eleven years but plenty of gimmicks, the group has suffered and decreased in size. What is RBNY doing to work to improve the group? Is the group a priority for RBNY? Does RBNY wish to sponsor the organization and seek to grow the club into a similar level of support as seen in Chicago and DC?
MDG: The ESC is certainly a priority for us -- as are all of our supporters groups. We are making strides to increase the communication and collaboration between our front office and the supporters groups. We want to get involved and make every effort to assist the organizations in any way we can. While we empathize with the unfortunate lack of success you have experienced, we are focused on the future of this club and know that the years ahead of us are going to be a lot brighter than the ones behind. And of course, we want the ESC and all of our supporters groups along for the ride. It's been a long time coming for you guys.

KD: Keeping on topic of the ESC, there is a concern that once in Harrison, the group will be relegated to the upper reaches of the stadium, far from the field, where they would have less of an impact and presence. What is the plan for accommodating the ESC?
MDG: This concern is unfounded. We expect the ESC and our supporters groups to be the pulse of Red Bull Park. We want you as close to the field as possible making as much noise as possible, thus creating an atmosphere that is unmatched in MLS. We have already begun reaching out to the supporters groups to find out where they want to sit and will do our best to accommodate those requests. But I guarantee the ESC will not be in the upper reaches of the stadium, nor will any of our ardent supporters groups.

KD: What do you think when you see fans still wearing MetroStars gear, cheering or referring to the team as "Metro", etc.? Why hasn't the name Red Bull been embraced? Do you think the transfer to the new name happened too quickly? What can RBNY do to win over the jaded fans?
MDG: That does not bother me. It was a dramatic change to undertake and we are still in the very early stages of the transition. This is going to be a slow process and we understood that coming in. We are building something special here and we know that in time, we are going to construct a team and an organization that our front office and our fans are proud to call our own.

KD: Shifting gears, Marc, 2006 was your first year in charge of a professional sports organization. Was this an assignment you initially desired? What have you learned? What has surprised you about the market?
MDG: Being an avid sports fan my entire life, running a professional sports organization is something that always piqued my interest, as it combines my love for sports with my love of business. However, this particular position did come unexpectedly and was not something I had planned for. As we know, the ownership change happened quickly and I was thrust right into the middle of it all. I have learned an enormous amount over the last nine months -- everything from the true passion that exists for the game here to the particulars of the game itself. I continue to learn new things every day and I really enjoy that part about my job.

KD: Red Bull talked boldly after the ownership change about turning the franchise into a juggernaut in MLS. Did RBNY underestimate the logistics and limitations of the league and the ability to really turn into a force a team that is held to a strict cap, with cumbersome allocation processes?
MDG: I do not think we underestimated the limitations of the league. Our company had done an extensive amount of research before the purchase was made and were well aware of the strict salary cap and the conservative business model of the League. We understood that some of the changes we desired were not going to happen overnight and that it would be a slow process. However, we were confident that some of the new, forward-looking ideas we possess will help speed the growth of this league up. And you can see some the league-wide change we have already helped enact from this past weekend, with the designated player rule being passed, an increase in the salary cap and the new youth development system regulations. Those are all positives for both our organization and the league.

KD: RBNY started with a bang -- a sponsored bus trip down to DC, giant banners announcing the team's arrival and then an opening day extravaganza that drew some disappointing numbers. Since then, the media presence has been next to zero. Did RBNY overspend on opening day and decide to draw back the purse strings? What type of cross-promotions can we expect with the sister company? Give us a hint Marc, what is 2007 going to hold in store off and on the field?
MDG: We wanted to make a big impact upon our arrival and we feel we accomplished that with our opening day and home opener festivities. We are now focused on the long term success of this business, from a financial standpoint and a team standpoint. We are not going to undergo a massive marketing campaign until our product meets our internal standards. Again, we respect the knowledge of our fans too much to insult them like that. But this does not mean we will just sit on our hands until our product does meet our standards though. We are working on unique off-the-field initiatives to be in place for '07, but would prefer not to discuss them until they are ready to launch. 'Talk' only gets you so far, we prefer to just 'do,' and let our events and initiatives speak for themselves.

JE: How successful would you regard the average attendance for the club for the 2006 season? Are there any lessons you learned this season that will help the club in 2007?
MDG: Our attendance improved over last year so that is a positive, however we are still a long ways away from our long-term attendance goals. But we know that the seats aren't magically going to fill up. It will take a lot of effort on our part to build an organization and club that fans are excited to be a part of. Our front office and our technical staff are in the process of making that a reality.

JE: The Harrison/Kearny/Newark triad is one of the most soccer rich communities in the United States. In addition to the stadium in Harrison, how else can Red Bull New York get involved in this community?
MDG: You are absolutely right, the Harrison/Kearny/Newark area is one of the most soccer rich areas here in the States. Red Bull Park is obviously a huge part of our plans, but we are also beginning to take an active leadership role in those communities. Our outreach program has already commenced and we will provide more details of specific programs in the coming months.

JE: A sense of community is an important aspect in the world of soccer. Around the world, at the World Cup, a sense of atmosphere and excitement can be seen throughout an entire match. Even in MLS, clubs such as DC United and the Chicago Fire have a larger and more significant fan atmosphere than at Giants Stadium. What can Red Bull do to help rev this engine and build a better atmosphere at Red Bulls' home matches?
MDG: To reiterate an earlier point, I think it is important to build a team on the field and a front office staff off the field that our fans are excited to support and excited to be a part of. To accomplish this, we need to improve the product on the field. Our fans and our supporters groups are not going to blindly support soccer in the tri-state area just for the sake of supporting soccer. They are smarter that. They demand quality. And it is our job to provide them with quality soccer.

JE: What demographic do you believe has the most potential in being attracted to becoming fans of the club; passionate local soccer fans who follow foreign clubs, youth soccer players, or young adults who attracted to the Red Bull brand?
MDG: Frankly, our goal is to build a product on the field that will attract all of those groups. I understand that in the past a specific emphasis has been placed on youth soccer players, which is a certainly an important demographic for us and the league. However, I want to see more of the passionate local soccer fans at our games and I want to see more young adults at our games. Those are the ones who are responsible for the atmosphere and excitement you speak of around the world. Those are the ones that are going to make Red Bull Park the most exciting venue to watch a soccer match here in the States.

JE: Now that the stadium has broken ground and a practice facility is well in the works, what is the next step Red Bull needs to take to further develop Red Bull New York?
MDG: There are numerous next steps. We need to fill the infrastructure we are putting in place with a successful team. We as an organization need to help grow our fan base. And we need to gradually raise the level of awareness of our team and our brand in the tri-state marketplace.
MDG: Let me close by saying that these were all very thoughtful and very extensive questions. I appreciate you taking the time to send them along and I hope that my responses provided some insight as to what we at RBNY are all about. Know that we are different than any other owner you have had and we are going to do things that our fans haven't seen or experienced before. We are committed to building a successful organization here and one that our supporters are excited to be a part of. But enough of all this talk... you'll see.

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