The New England Patriots The New England Patriots: Crisis and Controversies Lauren Chesley, Annie Intrabartola, Leah Jacobs and Molly Robb
Executive Summary On January 18, 2015, the star quarterback of the New England Patriots, Tom Brady, celebrated a huge win over the Indianapolis Colts in the AFC Championship game with his fellow teammates and coaches. Little did the Patriots organization know, all of their success was about to come into question. One short day later, on January 19, 2015, the National Football League launched an investigation examining whether the Patriots, specifically Tom Brady, intentionally deflated footballs that were used during the AFC Championship game against the Colts. In the following months, the New England Patriots did everything in their power to ensure that Brady and the rest of the organization were found not guilty in a crisis that has now coined the term Deflategate. Throughout the controversy, Patriots head coach Bill Belichick issued multiple press releases, reassuring the public that his organization had nothing to do with deflating any of the footballs, and educating the public about the various factors and atmosphere surrounding the footballs during that game. Additionally, Tom Brady updated his personal social media accounts regularly with statements to his fans and followers ensuring his innocence. This case study reveals the New England Patriots use of press conferences and social media to address the public, and the impact this controversy has had on the Patriots organization. 2
Table of Contents Situation Analysis...4 I. Organizational Background...4 II. Organization s Communication Structure...4 III.Industry Analysis...5 IV. Market Analysis...6 V. Description of Issues and Problems...8 VI. Case Analysis...9 References...14 3
Situation Analysis I. Organizational Background The New England Patriots are a privately-held professional sports franchise in the National Football League. They are considered one of the greatest professional sports franchises of all time, due to their unparalleled success in free agency and consistent player turnover. The New England Patriots were established in 1960, led by former Public Relations executive William H. Sullivan, Jr. Today, the New England Patriots are now under the ownership of Robert Kraft. The New England Patriots have played home games and operated their business at Gillette Stadium in Foxborough, Massachusetts since 2002; Gillette Stadium is a $350-million facility that is privately financed by Robert Kraft. Gillette Stadium houses all administrative offices for the Patriots and its owning entity, the Kraft Group. Corporate sponsors include Bank of America, American Airlines, McDonald s, Toyota Motor, Anheuser-Busch, PepsiCo, Verizon Communications, EMC, and Gillette. Since the hiring of head coach, Bill Belichick, in 2000, the Patriots have become one of the most successful teams in the National Football League history. They are tied with the Pittsburgh Steelers and Dallas Cowboys as the teams with the most Super Bowl appearances overall and they have also had the most Super Bowl appearances in the last 25 years out of any other NFL team. Although the New England Patriots have surpassed many NFL teams in great lengths, they have also experienced many controversies and scandals. In September 2007, the Patriots were caught illegally filming a New York Jets practice; this event is notoriously known as spygate. As a result, the NFL fined Belichick $500,000 and the Patriots $250,000. In this previous season, Tom Brady (Patriots Quarterback) was accused of tampering with footballs in the championship game against the Indianapolis Colts. These are just two of the several controversies involving the Patriots. Regardless of their mistakes, they are still recognized as one of the most prestigious NFL teams in the entire league. II. Organization s Communication Structure The New England Patriots have an in-house communications department. The organization s communication department is a part of their media relations. There are several media and communications related executive positions. These positions include Vice President of Media 4
Relations, Director of Media Relations, Asst. Director of Media Relations, Social Media Manager, Corporate Communications Coordinator, and Media Relations Coordinator. Their media relations department is a part of New England Patriots associates. The New England Patriots use many different communication channels and tools. Their main website includes a link to a separate media site. Their media site contains all media related material including the media staff contacts, The Patriots official media guide, game releases, game summaries, game notes, injury reports, feature clips, flip cards, stats packs, and NFL stats, transcripts, roster, and depth chart. All of these sources supply the site s visitors with all basic information regarding the team s stats and records. There, one can also find the team s press conferences and press releases, two essential communication channels for the team. III. Industry Analysis As the most current Super Bowl winners and one of the most successful teams of the National Football League, the New England Patriots are often viewed as a leading team in their conference as well as within the entire league. While 32 football teams all over the United States make up and support the National Football League, the NFL corporate office is located in New York City. The 32 football teams that make up the NFL are equally divided into different conferences. The New York Patriots, located in Boston, Massachusetts, are a part of the AFC East Conference along with the Buffalo Bills, the Miami Dolphins, and the New York Jets. The Patriots face many different kinds of competition within their conference, within the entire NFL, and with surrounding sports teams in the Boston area. Being a football team in the NFL, the Patriots compete with all other NFL teams to win games, national titles, the Super Bowl, etc Specifically within their conference, the Patriots biggest competitor is the New York Jets, because both teams are located in relatively the same area. Boston is also home to many other professional sports teams that the Patriots compete with for support and sales, such as: The Red Sox, the Bruins, and the Celtics. The National Football League as an industry is consistently one of the most profitable organizations in the United States, and therefore maintains stability throughout the years. The New England Patriots have been performing increasingly well over the past decade under the leadership of players like Tom Brady and Rob Gronkowski. Most recently, the team took home the XLIX Super Bowl title. The National Football League has recently faced 5
many crises from different NFL teams. Most recently, one of the biggest crises that both the NFL and the New England Patriots had to deal with was the deflategate controversy. This controversy is centered around the accusations that the New England patriots, specifically Tom Brady, tampered with footballs that were used in the championship football game against the Indianapolis Colts. After extensive investigation, the National Football League decided to suspend Brady for four games beginning at the start of the 2015 season. However, the decision was later overturned and Brady s suspension was lifted. Another recent crisis that the NFL had to deal with was the domestic violence case of Baltimore Ravens football player Ray Rice and his wife. After the full video of the altercation was released, the NFL suspended Rice indefinitely and and the Ravens released him as a player. The NFL also came under scrutiny following the 2013 release of the PBS documentary League of Denial, which featured revelations that the NFL had been covering up the league s own medical reports regarding brain damage and diseases of players from the league. In April of 2013 the league denied withholding data. However, in August of 2013, the league announced new rule changes in an effort to reduce high impact hits to the head. That same month, the NFL agreed to pay a $765 million settlement in a lawsuit regarding retired NFL players. Although they payed this large settlement, the league did not admit to any wrongdoing on their behalf. One of the biggest crises the NFL and the New England Patriots has recently faced is the murder trial of Patriots tight end Aaron Hernandez. Hernandez was convicted of three counts of murder and is serving life in prison. New England Patriots head coach Bill Belichick held a press conference addressing Hernandez s 2013 conviction and apologizing on behalf of the Patriot s organization. It s no secret that the NFL has dealt with it s fair share of crises over the years and each individual situation has been dealt with differently and accordingly. IV. Market Analysis Market Indicators: According to privco.com, as a member of the National Football League, the company follows the revenue sharing system enacted by the league. The revenue sharing system forces teams to contribute about 40 percent of all ticket sales to the league, therefore allowing teams to keep 60 percent of ticket sales. In addition, all broadcasting revenue flows directly to the league. Sales of 6
league merchandise, such as jerseys and posters, also flow directly to the league. At the end of the season, the league divides up all of its accumulated revenue evenly. The New England Patriots generate revenue in 3 primary ways: TV/Media: Approximately 60 to 66 percent of annual revenue is derived from television and radio broadcasting contracts. In addition to national broadcasting from NBC, CBS, Fox, ESPN and DirecTV, local broadcasting by the regional CBS station allows viewers in the New England area to access all games. Ticket/Gate Sales: Approximately 25 to 30 percent of annual revenue is derived from ticket sales. This includes revenue obtained from the 60 percent of home ticket sales, as well as a portion of the 40 percent of total ticket sales kept by the league. Additional: Approximately 5 to 10 percent of annual revenue is derived from additional sales. This includes sales of merchandise, both league licensed and private, as well as additional revenue obtained from events using the team s stadium. 7
V. Description of Issues and Problems Suspicions arise after the Patriots beat the Colts in the 2015 AFC Championship game 45-7. Although this can be credited to the Patriots talents, many individuals had their own concerns because after the second-half kickoff, officials replaced the 12 balls that were used in the first half with 12 backup balls that had been approved before the game. Colts equipment manager Sean Sullivan stated, It is well known around the league that after the Patriots game balls are checked by the officials and brought out for game usage, the ball boys for the Patriots will let out some air with a ball needle, because their quarterback likes a smaller football so he can grip it better. This ultimately led the NFL into beginning an investigation, spearheaded by Ted Wells, into the Patriots and Tom Brady. Following his four month investigation, Wells concluded that it is more probable that not that Jim McNally (the officials locker-room attendant) and John Jastremski (an equipment assistant) participated in a deliberate effort to release air from Patriots game balls after the balls were examined by the referee. Based on the evidence that Wells found, he viewed it more probable than not that Tom Brady was at least somewhat aware of the inappropriate activities involving the release of air from game balls. It was also especially suspicious that Tom Brady destroyed his cellphone just before he met with investigators, which ultimately lead to his four-game suspension. This did not sit well with Brady. The NFLPA filed an appeal for Brady s suspension, and they were successful. Upon filing the appeal, the NFLPA released the following statement: Given the NFL s inconsistency and arbitrary decisions in disciplinary matters, it is only fair that a neutral arbitrator hear this appeal. If Ted Wells and the NFL believe, as their public comments stated, that the evidence in their report is direct and inculpatory, then they should be confident enough to present their case before someone who is truly independent. U.S. District Judge Richard M. Berman professed that NFL commissioner, Roger Goodell, went too far in affirming punishment of Tom Brady. Therefore, Berman erased Brady s four-game suspension. One of Berman s key points is that Brady did not receive the proper notice in advance to be disciplined by the NFL and he also did not receive information on the kind of penalties he could potentially receive. 8
Timeline of Events: January 18, 2015: The New England Patriots celebrate their 45-7 victory over the Colts in the AFC Championship game. January 19, 2015: It is reported that the NFL is investigating whether the Patriots intentionally deflated footballs used in the AFC Championship game. January 20, 2015: The NFL found that 11 of the 12 balls used by the Patriots were significantly underinflated. January 22, 2015: Patriots coach Bill Belichick denied knowledge of deflated footballs in a news conference. Brady, in an appearance a few hours later, says, I didn t alter the ball in any way. He says he had yet to talk to the NFL. January 23, 2015: NFL announced Ted Wells has been appointed to investigate the deflated footballs. May 6, 2015: The Wells report is released, and it states the NFL found it more probable than not that Patriots personnel deliberately deflated footballs during the AFC Championship Game, and that Brady was probably at least generally aware of the rules violations. May 11, 2015: The NFL announced that Tom Brady has been suspended without pay for four games for violating the NFL policy on the integrity of the game. The team was also fined $1 million and will forfeit a 2016 first-rounder and 2017 fourth-round selection in the NFL Draft. May 14, 2015: The NFLPA filed an appeal on behalf of Tom Brady and his four-game suspension. June 23, 2015: Brady s appeal takes place in New York. July 28, 2015: The NFL announces Tom Brady s four-game suspension will not be reduced. September 3, 2015: U.S. District Judge Richard M. Berman erases Tom Brady s four-game suspension VI. Case Analysis 1) Two days after Bill Belichick s initial no further comment declaration following the allegations against the New England Patriots, the organization looked into the situation and presented their facts and findings in a 23 minute long press conference. He began by informing the public that he 9
spent an extensive amount of time learning about all aspects surrounding the matter including bladders, air gauges, stitching, pressure, game day football preparation, rubdowns, and more. Bilicheck wanted to make it clear that he had done his research and was confident that they followed protocol. Other research done was through the gathering of information from members of staff, those familiar with this subject in other organizations, and performed an internal study of the preparation process of footballs. Bilicheck discussed the feel of the football and the differences between texture and pressure. He gave the exact PSI (pounds per square inch) the officials were asked to inflate the footballs. He also presented the research the organization had collected on how the climatic conditions and rubbing process affect the footballs. He continued to go into detail about information regarding the measurement of footballs, air pressure, and gauges. The research done guided the press conference, and supported the New England Patriot s statement that they were innocent and followed all the rules of the game. 2) Bill Belichick initially pleaded ignorance about the deflation of footballs during their AFC Championship game against The Ravens. He also stated, Tom s personal preferences on his footballs are something that he can talk about in much better detail and information than I could possibly provide (source). This statement did not go over well with the NFL, media, or public. The organization then came up with a more effective communication strategy to refute Belichick s initial fumble. After extensive research, the New England Patriots conducted a surprise press conference, where Belichick presented all of their findings regarding the situation. His arguments were structured in a more plausible way and supported with factual evidence. 3) Key publics in this situation included the NFL organization, the New England Patriots, the New England Patriots fan base, as well as other NFL teams and fans. Major players include the Patriots Head coach, Bill Belichick, Patriots chairman and CEO, Robert Kraft, and Quarterback, Tom Brady. 4) From the beginning, the Patriots organization maintained a not guilty strategy when accusations about the use of under-inflated footballs during the AFC Championship game arose. After initial accusations surfaced, New England Patriots head coach Bill Belichick issued a press release. In this press release, aired on television and posted online on YouTube and multiple sports and NFL websites, Belichick maintained ignorance on the issue, basically pleading a no comment declaration. 10
After this initial press release, Belichick and the Patriots organization somewhat altered their strategy. While still maintaining a not guilty stance, Belichick issued another lengthy press release, in which he went into great detail regarding atmospheric pressures, temperature impacts on pigskin footballs, and rubbing processes. In doing this, Belichick was hoping to explain that if, indeed, one of the footballs had been deflated, it was due to outside conditions and not due to human tampering. Throughout the whole process, the Patriots organization updated all social media accounts (Twitter, Facebook, their website, etc ) with new details and information about the investigation. 5) To back up the Patriots not guilty strategy, the organization took many different measures to ensure that the public also viewed them as not guilty. The very first public accusation arose when Tom Brady was a guest on a morning radio show. The host asked Brady about deliberately deflating a football that was used in the AFC Championship game against the Indianapolis Colts. Brady nonchalantly laughed it off, saying it was ridiculous and he thinks he s heard it all by this point. Additionally, Tom Brady took to his own personal Facebook account multiple times throughout the investigation, posting his thoughts on the issue and maintaining that he had nothing to do with under-inflated footballs. He apologized to anyone whose feelings he may have hurt during the process, and thanks his fans, friends, teammates, and family for the continuous love and support. In an attempt to make sure he was found not guilty, Tom Brady destroyed his personal cell phone that could have revealed text messages proving that Brady did, in fact, deflate footballs. During Belichick s second press release, his use of educational facts about the factors surrounding the football was an attempt to prove that they had nothing to do with the footballs being deflated. In addition to all of this, Patriot s team members put on a light-hearted front to the public. Patriots tight end Rob Gronkowski took to his twitter account to post a meme of him forcefully throwing a football on the ground with the words WARNING: Gronking may cause deflation with his own personal caption woops lol. The Patriots organization made sure that they continuously cooperated with officials during the investigation to prove that they had nothing to hide. After the official deflategate investigation concluded, the NFL sentenced Brady to a four game suspension, fined the Patriots organization $1 million, and stripped the Patriots of two draft picks. While the 4 game suspension was later overturned, Patriots general manager Robert Kraft issued a press release after the ruling came through. Kraft maintained that his organization was not at fault, and the investigation was incomplete and incorrect. He rebutted the 11
accusations and explained that the investigation lacked context and facts in many different areas. 6) Throughout the accusations and the official investigation, all press releases and statements made by Belichick, Brady, and the rest of the organization were approved by the Patriots general manager, Robert Kraft, the organization as a whole, and New England Patriots corporate executives. 7) The New England Patriots response to the Deflategate allegations was to be cooperative with investigations, but also defending their reputation. Head coach, Bill Belichick and Quarterback Tom Brady were the faces of the program. Belichick initially gave public statements denying the allegations. They held multiple press conferences early on, without having all the facts figured out and later blamed it on temperature conditions. The Patriots over-communicated. Meanwhile, owner, Robert Kraft, also issued a succinct and professional statement saying that the organization is welcoming and cooperative to the investigations. The Patriots employed multiple official press conferences for the press, while Tom Brady and many other players used their social media to communicate with their fans. The official Patriots twitter was also used throughout the program. 8) There was a quick turnaround between the allegations and the impromptu press conferences. The Patriots adjusted their program by altering their story from denying that anything had happened, to the temperature conditions causing the change in PSI. The message first sent by the Patriots was adjusted midway through the crisis, as the initial statement was made prior to the completion of the investigation. While the coach was moving very quickly trying to backlash the allegations, the team owner, Kraft, had stated very simply and solemnly that they were not hiding anything and were okay with the investigation. 9) The Patriots rebutted the punishment issued to them. They appealed Brady s four game suspension, which was then overturned. While he was initially open to the investigation, Kraft also spoke out that the punishment was not fair because the investigation was incomplete. Because of this, the communication department was not pleased with the program they had implemented. The publics involved in the crisis were also displeased. Because the organization responded quickly with little evidence to back up their statement, there was a loss in trust by the fans, investors, and other NFL teams. The fact that the Patriots also altered their message midway through the program was not looked upon favorably as it appeared that they were attempting to quickly cover it up. The NFL changed regulations on how footballs are to be handled prior to games, and attempted to 12
keep the media out of the issue until the investigation had concluded. The media covered every aspect of the program, but were mainly on the side of the fans, emphasizing that the Patriots were to blame. ESPN later apologized to the Patriots for false reporting on the case. Overall, the program lost the trust of many publics, despite the accusations being false and later dropped. 13
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