A Yahoo! story reports today that Real Madrid is opening a resort in the United Arab Emirates.

I wanted to offer some analysis. Which is interesting, given that I know almost nothing about soccer, Real Madrid or the UAE.

But I do know something about Sports and Brand Extensions.

And so do you.

As sports fans and consumers, we experience brand extensions regularly.

From Raider Image Stores, to ESPN2, to, to the WNBA we have all encountered new product offerings that allow sports brands to leverage their place in fans’ hearts, minds and wallets.

My favorite academic framework for considering brand extensions is from Park, Milberg & Lawson who suggest the two elements to consider in predicting the success of a brand extension are Product Feature Similarity and Brand Concept Consistency.

Product Feature Similarity (PFS) refers to how close the brand extension is to the original product.  Gatorade and G2 are both flavored, colored sport drinks – thus, high on PFS.  ESPN and ESPNZone restaurants are a TV network and a restaurant chain – thus low on PFS.

Brand Concept Consistency (BCC) is more interpretive. If ESPN’s brand concept is defined as “the place to be for sports”, it is easy to see the BCC between ESPN (the network) and ESPNZone (the restaurant).

Returning to the Real Madrid/UAE resort brand extension effort, I have no idea if this brand extension will work.

Having briefly presented the PFS/BCC framework, I’d be interested to hear if my readers have any predictions based, on their knowledge of Real Madrid’s brand and whether it will translate easily to a resort property.