sign in sign up
<<
Home , 2017 Invictus Games, 2017 Overwatch World Cup, Aden Flint, Alex Hunter (character), BLAST Pro Series, Cloud9

PAGE 91 PAGE FRICTIONLESS STADIUM STADIUM FRICTIONLESS CREATING THE CREATING OF THE FUTURE [ PAGE 46] PAGE 58 PAGE RENEGOTIATES CSM’S CSM’S RENEGOTIATES $8BN CSL DEAL $8BN CSL ZHAO JUN ZHAO And the the And THE RESULTS ARE IN FOR THE THE ARE IN FOR THE RESULTS AND WHO WILL BE NUMBER 1? SPORTBUSINESS EXECUTIVE OF THE EXECUTIVE SPORTBUSINESS YEAR AWARD. WHO MAKES THE TOP 20 WHO MAKES THE TOP YEAR AWARD. winner is... DECEMBER 2017 NO.237 2017 DECEMBER PAGE 40 PAGE FINNISH FOOTBALL’S FINNISH FOOTBALL’S DATA-DRIVEN APPROACH TO GROWTH TO APPROACH PAGE 14 PAGE PRO-KABADDI: SUCCESS RADAR INDIA’S UNDER-THE- INDIA’S

SportBusiness International • Issue number 237 • December 2017 FEI.org N o . 237 : DECEMBER 2017 3 CONTRIBUTORS 58 FRANK DUNNE Chief sports writer Contents/1FEATURES Frank Dunne is a specialist in media rights having formerly edited sister publication TV Sports Markets. He also regularly covers the subject of sports sponsorship for stablemate Sports Sponsorship Insider. @frankdunneTVSM

14 KEVIN ROBERTS MARKET RAIDER Founding editor, SportBusiness International The breathless rise of India's Pro Kevin Roberts is the founding editor of Kabaddi League 14 SportBusiness International and has worked for the publication since its inception in 1996. Before working for the magazine, he was the communications director for the 20 -based CPMA agency. A WOMAN'S GAME @krobsportbiz Sport tries to build on a summer of success for female events 28 ROBIN JELLIS REALITY TV Editor, TV Sports Markets Behind-the-scenes sports shows Robin Jellis joined SportBusiness Group in February 2013 as a reporter for TV Sports proving a winner Markets and Sports Sponsorship Insider. He began writing solely for TV Sports Markets in December 2013 and became editor of the 30 publication in June 2015. @robinjellis DOWN TIME Is the NFL suff ering a blip or a more serious decline?

MATTHEW GLENDINNING 38 Editor, Sports Sponsorship Insider GOLDEN OPPORTUNITY Matthew Glendinning has been writing on the business of sport since 1996. He joined the The sporting ambitions of SportBusiness Group full-time in 2007 ecommerce giant Rakuten and now edits sister title Sports Sponsorship Insider. @mattglen 40 DRIVING FORWARD Finnish football's data-driven 20 approach to growth

RICHARD CLARKE Digital correspondent 80 Richard Clarke is a digital and social media 46 URBAN OUTFITTERS consultant. He has run the social media ALL HAIL THE RAINMAKERS accounts at major football clubs in the UK and UCI takes BMX and mountain bike Our SportBusiness Executives of USA having worked for EPL club Arsenal and event to Chinese city centre MLS club the . the year @MrRichardClarke 86 58 HEADLINER The rise and rise of "the most Sports Media chief important sports competition in MARK DREYER executive Zhao Jun on how the " China correspondent Mark Dreyer is a specialist in the growing agency will handle the cooling sports sector in China. He is based in Beijing Chinese sports media market and founded and edits China Sports Insider. 30 Before working for this publication, he worked as a football reporter for . @DreyerChina

12.17 : SportBusiness International 4 N o. 237 : DECEMBER 2017

Editor Ben Cronin [email protected]

Contents/2REGULARS Chief Sports Writer Frank Dunne

Founding Editor 34 Kevin Roberts Production Editor Richard Welbirg

Creative Director Andy Medley

66 Production and Design EVENT BIDDING NEWS Squires Media The latest news about Production and Distribution Manager cities and event bidding Craig Young

Media sales 74 [email protected] NEWS Robin Hume Gamer and influencer Liam Information sales [email protected] Thompson’s regular round-up Max Frew Laurence Burton Scott Longhurst 83 Patrick Odling CHINA NEWS Director of Sales Mark Dreyer’s update on the Tom McMullen emerging sports sector in China Head of Group Business Development Paul Santos

90 Head of SportBusiness Group VENUES & FACILITIES Ben Speight The latest news on sports stadia, www.sportbusiness.com/sportbusiness- venues & facilities international 80 Published by: SportBusiness, a division of SBG Companies 99 Ltd, 133 Whitechapel High St, London E1 7QA CONFERENCES & EVENTS T: +44 (0) 20 7265 4100 F: +44 (0) 20 7265 4220 8 Sports industry event calendar MEDIA NEWS AND ANALYSIS Registered address: 75 Park House, 116 Park Street, London, W1K 6AF The best of TV Sports Markets 100 Printed in the UK by Pensord Press SECRET FAN www.pensord.co.uk 25 Richard Mulligan visits an Orlando The paper used within this publication has COMMENT been sourced from a Chain-of-Custody Magic game in Florida certified manufacturer, operating within Kevin Roberts, founding editor, international environmental standards SportBusiness International such as ISO14001 and EMAS. This is to ensure 102 sustainable sourcing of the materials, BEING BRILLIANT sustainable production and to minimise our carbon footprint. 32 Our new columnist, behavioural DIGITAL COMMENT scientist Kevin Brilliant, on the SportBusiness International is published monthly © SBG psychology of queuing Companies Ltd 2017. All rights reserved. No part of this Richard Clarke on the latest publication may be reproduced or transmitted in any innovations in digital and form or by any means, or stored in any retrieval system social media of any nature without prior written permission, except for permitted fair dealing under the Copyright Designs and Patents Act 1988. Application for permission for use of copyright material including permission to reproduce 34 extracts in other published works shall be made to the publishers. Full acknowledgement of author, publisher and SPONSORSHIP & MARKETING source must be given. ISSN 1757-5346. The best of Sports Sponsorship Insider 57 PEOPLE 67 Industry moves

12.17 : SportBusiness International

6 SNAPSHOT

Snapshot Off -fi eld and left-fi eld stats, stories and soundbites from the world of sport

THE NETFLIX OF SPORT DISHONOURABLE DRAW NUMBER CRUNCHER In October and November Netflix resolved The EFL Carabao Cup is beginning to one of the industry’s more pressing questions: acquire a reputation for farce after a is the global streaming service interested 105-minute delay in announcing the in sport? The answer for now appears to quarter-final pairings at HQ was be yes, but not of the live variety. First, the blamed on a faulty encoder. In August the entertainment service struck a content organisers were criticised for staging the % partnership with Italian champion third-round draw in Beijing at the behest Juventus to produce a four-part documentary of their Thai energy drink sponsor. The The uplift in merchandise sales for the series about the Turin club, then it signed most recent fiasco appears relatively minor, a deal with Superliga outfit to however, when compared with the draw for 400Finnish Football Association after it produce a series of the same length about the the Next Gen ATP finals in in which took a data-driven approach to drive Argentinian team. When Amazon proceeded players were invited to choose a female participation in the sport and launched to strike a deal with City to create model to determine their group for the a segmented email marketing campaign. a behind-the scenes series about the English tournament. Female tennis players took to (Page 40) club for its Prime subscription Twitter to complain that the ceremony – in service, it seemed to point to a new arms race which the models decided the groupings between these on-demand platforms to secure by revealing letters hidden under their original, non-live, long-form sports content. Z clothing – was ‘trashy’ and ‘sexist’. Z GOOD MONTH:

In another boost for Formula E, Hugo TWEET OF THE MONTH Boss has ended its partnership with the Mercedes team in favour of Bristol City FC @bcfctweets the electric car-racing series. The German fashion house said it wanted to tap into a GOAL: #BristolCity 2-0 Bolton Wanderers, Flint 77. more ‘innovative and sustainable’ brand. #BRCvBOL Last issue (no.237) we reported how an 1:22 PM - 26 SEP 2017 838 12K 24K increasing number of car manufacturers, including Audi, were moving towards Formula E following the announcement of legislation to ban petrol and diesel cars in some countries by 2040. Z

BAD MONTH: MP & SILVA

MP & Silva has undergone a management shake-up after the agency was dislodged by rival IMG in October as the international rights distribution partner of Italian football’s Serie A. Jochen Lösch, who The social media manager at Bristol City is making a strong case for a pay rise after the EFL was appointed as chief executive of MP Championship side’s goal celebration GIFs started trending on Twitter. Each of the side’s & Silva a year ago, has stepped aside into goals this season has been celebrated on social media with individual player GIFs, but one a senior consultant role to make way for featuring defender Aden Flint generated so many engagements it was featured by Twitter as former Lagardère chairman and World one of its top moments. Demonstrating Flint’s talent for vaudeville, the GIF shows the player Sport Group founder Seamus O’Brien to throwing a blazer over his shoulder and casting a flirtatious glance at the camera as he walks become the new president and group chief out of shot. The GIFs have already spawned a series of imitators and sponsors are beginning executive. For more on the Serie A rights to take notice. Z tender, go to pages 12-13. Z

12.17/1.1812.17 : SportBusiness : SportBusiness International International SNAPSHOT 7

TOP PROPERTIES BY GLOBAL MEDIA AWARD RIGHTS VALUE 2017 ($M) SEASON Ben Cronin, Editor Sister title TV Sports Markets has just published its 2017 Global Report. The report has been compiled using data from the TVSM Rights Tracker intelligence tool to give an Tommy Lasorda, baseball Hall of Famer and overall picture of the international media rights market. The pie chart below shows that the manager of the Dodgers for football was by far the world’s largest generator of rights fees among sports in 2017, 20 years, once said there were three types of generating 40 per cent of the global market at $18.8bn. Z people in baseball and business: “those who make it happen, those who watch it happen and Top 10 sports – Share of global media rights market 2017 those who wonder what happened.” In compiling the list for the inaugural SportBusiness Executive of the Year Award, our Multi-sport events 2.5% 2.1% judging panellists (page 47) have taken a backwards Golf squint at the events of the last 12 months to 2.5% Others determine the 20 individuals from the industry 7.2% Ice hockey who most obviously match the first of Lasorda’s 2.9% classifications. For those who fear that they identify more 3.8% Global market = $47.0bn Football closely with the final part of the baseball coach’s US college sport 40.1% triptych, our supplement (pages 50-55) explains 6.5% what it was that made these 20 personalities so Baseball successful in 2017. 7.8% Long-term subscribers will notice that the awards represent a change from the Innovator American football 9.0% 15.5% of the Year Award which we have run for the last six years. In renaming our top 20, we wanted to place more of a premium on deal-making, strategy, Source: TV Sports Markets foresight, and the keystones of any successful career in our industry: the ability to turn a profit or grow engagement in a sport or team. 10.4% Source: TV Sports Markets TOP 10 SPORTS – The thinking was that innovation is not a MEDIA RIGHTS VALUE prerequisite for success in a sector that so often GROWTH RATE (CAGR) 8.2% repurposes business models that have proven successful in the past. 7.1% 2013-21 6.9% A good example is Bobby Kotick, Activision 6.5% Blizzard chief executive and founder of the Basketball is forecast to have the fastest- 5.6% , who has borrowed the growing media rights value among the top 4.8% franchising models developed in traditional sport 4.3% 10 between 2013 and 2021 at 10.4 per cent and applied them successfully to esports. CAGR, the only sport with double-digit Another is Ipsita Dasgupta, who has based the CAGR over the period. This is due almost rapid success of the Pro Kabaddi League on the entirely to growth in the NBA rights fees frequently imitated example of the Indian Premier – the property accounts for 93 per cent 1.9% League (IPL). 1.6% of the sport’s total media rights revenue. As a result of the change in our judging Football is the second fastest growing yardsticks, there is less year-to-year continuity sport among the top 10 between 2013 compared to previous lists. In fact, Simon Denyer and 2021 with 8.2 per cent CAGR. The Golf of the Perform Group bears the distinction of Football Cricket Baseball Basketball sport’s share of the global market is due MotorsportIce hockey being the only executive to appear in both lists, US college sport to increase to 43 per cent by 2021. Z American football Multi-sport events having pulled off the feat of meeting both sets of qualifying criteria. Inevitably, the list will draw almost as much QUOTES OF THE MONTH attention for the people who have been omitted as for those who have been included. To take some of the subjectivity out of the “It feels like it’s at the “If you want to brand process, this is the first time that companies have strongest and most consistent yourself as a tech city then been able to submit entries for the competition. We think the result is a top 20 which better reflects level than ever before.” esports is the way to go.” the diversity of talent in the industry. If you don’t agree with our rankings, or would LAURA GENTILE, ESPN’S SENIOR VICE- RONNIE HANSEN, TSE CONSULTING, ON PRESIDENT OF ESPNW & WOMEN’S HOW CITIES ARE USING ESPORTS EVENTS TO like to comment on this year’s list, please get INITIATIVES, ON WOMEN’S SPORT BOOST THEIR TECHNOLOGY SECTORS in touch. Z (PAGES 20–23) (PAGES 75–77) [email protected] @CroninBenjamin

12.17/1.1812.17 : SportBusiness International 8 IMG AND LEARFIELD

News analysis JUST THE TICKET | IMG COLLEGE AND LEARFIELD ARE COMBINING AT THE RIGHT TIME

F Potential merger is seen as a way of taking college sports to the same level as other major sports and entertainment properties F IMG College represents 90 colleges and universities, and Learfield around 130 F 2016’s top-earning school, Texas A&M, generated $194m in revenue, of which half was from rights fees and tickets

The IMG College-Learfield agreement is the latest evolution in college sports marketing (Getty Images)

BY KEVIN ROBERTS landscape, the timing of the deal – should it Learfield Ticket Solutions since 2012. Last receive regulatory approval - appears to be on year that organisation sold $1.3m (€1.1m) of he proposed merger of IMG College the money. basketball tickets, $10m of football tickets, and Learfield, the two powerhouses While regulatory scrutiny means neither 55,000 new football season tickets and, of US college sports marketing, party is discussing the deal on the record, critically, raised $15m in donations for its seems tailor-made to maximise sources say the merger is built around the college and university clients. Trevenues from college sports at what many idea it will take college sports to a new level, These are the only properties that include observers see as a time of unparalleled competing with other major sports and ‘donations’ on the balance sheet. But driving commercial opportunity. entertainment properties, from the NFL to alumni donations on the back of sports With media and marketing rights fees Live Nation, for marketing dollars. programmes is critical to funding university for the major schools and conferences And while the two parties may have sports. continuing to strengthen ahead of further competed for business on some levels, they According to highly-respected shake-ups anticipated in the sports media have already worked as partners in IMG international sports business academic and

12.17 : SportBusiness International NEWS ANALYSIS: IMG AND LEARFIELD 9

“College sports are deeply embedded in the overall US system of talent acquisition and development, as well as being the lifeblood of many fans’ sport consumption experience”

PROF SIMON CHADWICK, SALFORD UNIVERSITY

commentator Professor Simon Chadwick of a local radio operator, was sold to private Salford University, US college sports remain 220 equity company Atairos Group in 2016 for one of the sector’s best-kept secrets. Number of colleges linked to Learfield some $1.3bn, while IMG was acquired for “While there are rules pertaining to the and IMG College. The former is £2.4bn by WME and Silver Lake Partners in commercial development of US college partnered with around 130 of 2013, ushering in a new era for the sports sports, the size of the country’s universities, that total. marketing giant. the predisposition of Americans towards Ahead of IMG’s arrival, college sports sport and the fact that many top-class marketing was widely considered to be athletes attend US universities on sports somewhat sleepy and parochial, and certainly scholarships mean that significant numbers undervalued. But where IMG led, others of people are engaged with or attend college – including CAA, Fox Sports and Outfront sports events,” he explains. Number of 175Pac-12 sports events Media – have taken positions and the entire “For example, in the NCAA (National to be screened by Chinese digital sector has been transformed. Collegiate Athletics Association) it is giant Alibaba under a deal signed in At the time of IMG’s acquisition by WME, common that American football games its college business contributed about a third October. attract stadium crowds of 100,000 or of its total revenue and the belief is there more. Furthermore, retail outlets across US is far more where that came from. But, in a campuses are normally full of merchandise newly competitive and more professional produced by the likes of Nike and Champion. Top earning US schools in 2016 market, the merger creates many new “Unlike sport elsewhere in the world, opportunities, not simply to take advantage €194m where grassroots and amateur sports €187m of scale, but to make the new – and as yet structures feed professional leagues, in €170m €164m €163m unnamed – business yet more sophisticated the US it is college sport that underpins and competitive outside traditional areas of elite professional sport. The draft system business. employed by the likes of the NBA, NFL and so forth centres on the best college athletes Top level being ‘picked’ for US sports’ biggest teams. The scale of the merged operation is clear. To illustrate, it is worth remembering IMG College represents 90 colleges and that Michael was a North Carolina universities, and Learfield around 130. University student when he was drafted. Across the board, representation extends “As such, college sports are deeply from media rights to sponsorship and

Alabama Michigan embedded in the overall US system of Texas A&M Universityof Texas Ohio State ticketing, licensing and consumer products. talent acquisition and development, as well According to Forbes, their combined client as being the lifeblood of many fans’ sport roster accounts for 70 per cent of Division consumption experience. One Universities and 85 per cent of the “Most towns and cities have a local Five biggest US college stadiums schools comprising the Power 5 conferences: university, many are not close to an NBA or by capacity the ACC, Big 12, Big Ten, Pac-12 and SEC NFL franchise, hence college sport is the Conferences. These represent the top level of 107,600 most easily accessible form of sport and, 107,575 college football which, along with basketball, consequently, is where fans often spend most 104,950 102,500 102,450 delivers the biggest bucks of all. of their money.” For those who haven’t grown up in the US sporting environment, it is worth taking Latest evolution a moment to consider the sheer size of the The IMG College-Learfield agreement is the college sports business. According to a USA latest evolution in college sports marketing, Today report, the top-earning school in 2016 which has been shaped by a host of mergers was Texas A&M – a member of the SEC (South and acquisitions over the years. IMG itself Eastern Conference) – which generated $194m established its position in the market with in revenue, of which some $47m was from the acquisitions of the Collegiate Licensing rights fees and $45.8m from tickets.

Company and Host Communications back Penn State Ohio State State neighbours University of Texas, of in 2007, before adding ISP Sport three Univ of Michigan the Big 12, ranked second in the revenue (Ohio Stadium) Univ of Tennessee (Beaver Stadium) years later. Learfield, which started life as (Michigan Stadium) Texas A&M (Kyle Field)(Neyland Stadium) league with $187m, with Ohio State (Big Ten)

12.17 : SportBusiness International 10 NEWS ANALYSIS: IMG AND LEARFIELD

Continued from previous page...

in third with $170m, Alabama fourth with $164m and Michigan fifth with $163m. In each case, rights fees and ticketing accounted for over two thirds of revenue, with donations making a significant contribution to the total. To give these figures some context, for the year to the end of June 2016, Leicester City – then champions of soccer’s English Premier League – had a turnover of £129m, roughly equivalent to the third-ranked school. Leicester was the eighth highest earner in the Premier League and, like all of the 20 Premier League clubs, in the European top 30. So college sports is clearly big business and all indications are that it is about to get even bigger. In terms of TV rights, there is a keen sense that in the nation which gave us the cord-cutting generation, the emergence of major new digital media companies with massive war chests to spend on rights will see a new level of competition when the next rounds of college rights come up for grabs. US college football teams play in some of the biggest stadiums in the world (Getty Images)

New technologies In an interview with SportBusiness as the path to significant growth, but he But Chadwick doesn’t see things that way. He International earlier this year, Pac-12 also sounds a note of caution. “Digital and says: “In my opinion, the scope for international Commissioner Larry Scott summed up the social are inevitably important areas in which growth is limited. Not only do college sports mood in collegiate sports when he said: college sport can grow and develop,” he says. have to contend with the obstacles faced by “I’m really excited about the future. My “Building fan engagement is important too. the wider international development of, for view is that the cable TV model will still be “There are two big challenges facing example, the NFL, but they also face perceptions significant – although smaller than today college sports: resisting the challenges posed elsewhere in the world that are similar to the – but that new technologies and means of by other sports such as soccer, which has challenges faced by Nascar. distribution will also be important. grown in strength over the last decade; and “That is that they are somewhat parochial “We are seeing the emergence of massive building the appeal of US college sports and without relevance or meaning to new players like Amazon, Facebook and elsewhere in the world. overseas markets.” Google, which are from different eco- “The former implies the need for more So, against a background of growing systems and introducing technology which dynamic, strategic management; the latter rights values at home and some movement is disrupting the live video [market] where is much more of an issue, and one wonders internationally, how does Chadwick view the sport remain the killer app. whether the potential for growth will IMG College-Learfield merger? “Going forward, we will no longer be ultimately be constrained by the absence of “Competing with one another in sports limited by who is the provider of the cable or an overseas market for college sports.” characterised by a strange dynamic – massive satellite dish. Those in the college sports field don’t at home, but not overseas – is a zero-sum “As a content rights-owner, I think we are share the view that overseas markets are a game,” he says. seeing a world with more competition and closed door and as education becomes a truly “One senses that collaborating for the more ways to engage with our fans.” global industry, many US universities see greater good seems to be their chosen The merged Learfield-IMG College will be their sports teams as a tool for developing strategy; indeed, it is almost as though the positioned not simply to take advantage of their brands in new markets. And there is integration of competences is something of the anticipated upturn in the value of college some evidence to support their confidence a patriotic duty, intended to safeguard the sports rights and additional visibility from that the needle is moving in the right future of college sports.” new deals, but to add value in other areas. direction. In October the Chinese digital Patriotism is one thing, but given the ‘Significant investment’ is anticipated giant, Alibaba, signed a deal to screen 175 massive scale of recent investment in both in areas such as data, ticketing and retail Pac-12 sports events across its various IMG and Learfield, one thing is clear: while insight, all of which will not simply expand platforms, a move which comes after Pac-12 others focus on conquering new territories, customer bases, but maximise spend per fan basketball teams had played exhibition games this is about the recognition of significant by better understanding their wants, needs in the country. This relatively small step growth opportunities in a valuable sports and purchasing preferences. may be significant if it provides an overseas market neatly contained between sea and Unsurprisingly, Chadwick too sees digital springboard for college brands. shining sea. Z

12.17 : SportBusiness International

12 SERIE A TENDER

ITALIAN JOB | HISTORIC SHIFT FOR SERIE A AS AGGRESSIVE IMG OUSTS MP & SILVA

F IMG wins global media rights to Serie A with bid worth €367m per season F Agency looking for substantial growth in exposure in the US and China F MP & Silva founder Riccardo Silva says it was “understandable” the clubs wanted a change

Serie A has seen a glut of goals so far during 2017-18, with Napoli among the leading teams (Getty Images)

BY FRANK DUNNE 1958 that the four-times world champions national team – is the product that IMG will he loss in October of the have not been present. take to the market. The immediate benefit international rights to ’s Serie The country is still at stage one – shock for the league is financial. IMG’s deal is A, outside Italy, marked the end of and denial – of the seven stages of grief. Yet worth €367m ($430m) per season, up from an era for the MP & Silva agency. the elimination at the hands of , the €185.7m per season MP & Silva pays in TThe agency has been selling Serie A rights in which Italian FA president Carlo Tavecchio the current three-year cycle, from 2015-16 to some shape or form since 2004. The question labelled the “apocalypse”, comes at a time 2017-18. The fee is broken down as follows: now is whether the change in ownership when the Serie A championship is at its most €340m per season for Serie A; €12m per of the rights – with IMG taking over global vibrant and competitive for a decade. season for betting rights; €7m per season for distribution from next season – represents Napoli, Roma and Inter are challenging the the provision of the match signal; and €8m the start of a new era for Italian football. dominance of Juventus, and a new generation per season for promotion and marketing of IMG begins its work with storm clouds of Italian coaches are promoting attacking the competition. hovering over the Italian game, following football. Serie A’s 2.89 goals per game at the A package of international Italian-language Italy’s failure to qualify for next summer’s end of September was the highest average in rights aimed at overseas Italian communities Fifa Finals – the first time since Europe’s top five leagues. And this – not the was won by Italian state broadcaster Rai with

12.17 : SportBusiness International NEWS ANALYSIS: SERIE A TENDER 13

a bid of €4m per season. The €371m-per- football club, with Lösch becoming a season total exceeded the league’s target of HOW IMG’S €367M PER consultant to the agency. €300m per season. A big uplift in rights fees SEASON DEAL BREAKS The three founding members of the agency inevitably raises questions about how the DOWN – Riccardo Silva, Andrea Radrizzani and investment can be refinanced. From the IMG Carlo Pozzali – were asked by the agency’s presentation, details of which were published Chinese owners, Everbright Securities and in the Italian media, the agency appears to be m Baofeng Technology, to play a greater role targeting growth in two markets in particular: €340 in the strategic direction of the company. the US and China. Serie A However, with Radrizzani’s commitments to In China, IMG wants a minimum of two club Leeds United live games per matchday on state broadcaster and the Eleven Sports premium channel CCTV, with additional free-to-air coverage on m operator, it is not clear how this will work in regional channels and a deal for digital rights practice. with a streaming operator, such as Tencent €12betting rights The changes were said to have been or PPTV. based on the agency’s performance over the previous 12 to 15 months, when it had only Direct negotiations m agreed three significant rights deals. IMG Serie A’s adviser, the Infront Sports & Media had been more aggressive. In October 2016 agency, published an invitation to tender for promotion€8 and marketing it agreed to pay about $122m per season international rights in the next three-season for the global rights to the English FA Cup cycle, from 2018-19 to 2020-21, on August 7, over six seasons, from 2018-19 to 2023- requiring bids by September 15. In total, the 24. In September 2017, in a joint bid with league received 30 bids. m digital media company Perform, it agreed The biggest first-round bids, according match€7 signal to pay $350m per year for global media and to Italy’s main sports daily, Gazzetta dello marketing rights to the Sport, were: and , from 2019 to 2022. in a language all 20 club presidents could • MP & Silva, €333m per season for all understand. By contrast, some of the other Absorb the loss international rights; presentations were given in English or by MP & Silva has over 70 rights-holder • Mediapro, €260m per season for all people for whom Italian is a second language. clients, including the Premier League, the international rights; The league had decided that for reasons of , Formula One and the NFL – a • IMG, €250m per season for all transparency each club should cast an open large enough portfolio to be able to absorb international rights; vote at the end of the day and would do so the loss of Serie A. Silva told Italian media • Perform, €221m per season for all in alphabetical order, with Atalanta going it was “understandable” that the Serie A international rights excluding China; first. The club was considered to have been clubs should seek change after three cycles • beIN Media Group, €105m per season for supportive of MP & Silva, so when it cast its with the same agency and played down the rights in the Middle East and North . vote for IMG, there was, according to one importance of the property to the agency. well-placed source, a tangible sense that Rivals would no doubt see that as putting a Following direct negotiations with the something was afoot. brave face on an unpalatable outcome. bidders led by league director general Marco “When more clubs started to vote for The agency showed its first signs of Brunelli and Infront Italy chief executive IMG”, the source said, “the clubs further bouncing back by dislodging beIN in Luigi De Siervo, IMG and MP & Silva were down the sequence didn’t want to look as November to secure the global media rights almost neck and neck, on about €352m per though they were blocking change. It created for the International Handball Federation’s season, with Mediapro trailing at €315m per a psychological pressure and possibly a men’s and women’s World Championships season. domino effect. They may have voted the from 2019 to 2025. The second-round bids were delivered to same way anyway in a secret ballot, but we’ll Many industry observers believe that the league on October 6, but not opened. On never know.” O’Brien was brought in with at least one eye October 10 presentations were made to club MP & Silva has held Serie A international on a far more valuable property: the rights presidents by IMG, MP & Silva, Perform, rights for the last three cycles: 2010-11 to to the Asian Football Confederation events, beIN and Mediapro. The bid envelopes were 2011-12; 2012-13 to 2014-15; and 2015-16 to which are expected to come to the market opened after the presentations. The strength 2017-18. From 2004 to the centralisation of in the next few months. Win that – or even a of IMG’s presentation – led by Ioris Francini, the rights ahead of the 2010-11 season, the chunk of what will be a multi-billion-dollar co-president of IMG’s parent company, agency sold rights of multiple Serie A clubs contract – and the loss of Serie A will become Endeavor – is said to have been hugely through individual deals. a far less painful memory. The end of an era, important to the outcome. In the wake of the loss, MP & Silva but maybe the start of a new age. Z Insiders say that some banal factors replaced Lösch with Seamus O’Brien, former Note to readers: Riccardo Silva is majority owner of SportBusiness helped sway the outcome. For example, head of the World Sport Group agency and Acquisitions Limited, the parent company of SportBusiness Group, Francini, an Italian, gave the presentation former owner of the New York Cosmos which publishes SportBusiness International

12.17 : SportBusiness International 14 BUSINESS CASE STUDY : PRO KABADDI LEAGUE

Case study MARKET RAIDER | THE BREATHLESS RISE OF INDIA’S PRO KABADDI LEAGUE

F Kabaddi is thousands of years old, but has only exploded as a commercial proposition in the last four years F Of the franchise leagues launched in the slipstream of cricket’s Indian Premier League, the Pro Kabaddi League looks best placed for long-term success F Sponsors are now paying millions of dollars to reach the league’s huge supporter base

Celebrating a sport that has been played in India for hundreds of years, Pro Kabaddi League (PKL) has been a phenomenon since its launch in 2014 (Getty Images)

12.17 : SportBusiness International BUSINESS CASE STUDY : PRO KABADDI LEAGUE 15

“ has taken a principal position and thrown its weight behind it in the belief it can generate multiple income streams. It requires that sort of commitment to get the thing off the ground. It is doing a great job in bringing in multiple sponsors and partners and the league is now the clear No.2” RAVI KRISHNAN, CO-FOUNDER AND CHIEF EXECUTIVE, STEPATHLON

BY FRANK DUNNE Twenty20 team in the inaugural IPL season in 2008, set up a sports management his is the story of a sport which company, Mashal Sports. They secured a is several thousand years old and 10-year licence from the IKF to set up PKL in which is played by millions of 2014. But they needed teams and investors. people, but which has only taken off With Mahindra putting up the bulk of the Tas a commercial proposition in the last four seed money, it was left to Sharma to do most years. of the leg work. He trawled the continent It is the story of the Indian sport of kabaddi PRO KABADDI LEAGUE for “high net worth individuals with a good and of why, its backers believe, the Pro Kabaddi IN NUMBERS reputation and understanding of India” and League will be bigger than cricket’s Indian auctioned off eight franchises. Premier League within three years. There may be a strong element of hype in this claim. But Instant hit it is arguable that – outside of esports – the Pro After months of talking to media companies Kabaddi League (PKL) is currently the biggest – an experience he would later describe as growth phenomenon in sport. League founded,2014 with a 10-year “crushing” – he persuaded Rupert Murdoch’s It is not easy to delineate the chronology operating licence for PKL network Star India to take a punt. of the sport itself. According to Ashok Das, The league was an instant hit. About 145 the Punjab-born founder and president of million people are estimated to have watched the Kabaddi Association, its origins the first five-week season, putting it on a par can be traced to the time of the Hindu deity with other major sporting events in India. Krishna. As the devoted disagree about m Seeing its huge potential, Star took a 74 per exactly when Krishna lived, that probably Estimated145 cumultative audience in cent stake in Mashal Sports in April 2015. doesn’t help much. Das settles for the sport first season On a cumulative basis, audiences grew 51 being “about 5,000” years old. per cent in the four seasons played between Over the centuries the rules have been 2014 and 2016, two of which took place modified, but the essence of the sport within the 2016 calendar year. By May 2017, has changed little. Two teams of seven the league had found a title sponsor, Chinese players take turns to send a raider into their mobile phone manufacturer Vivo, which was opponent’s territory. The raider has to ‘’ prepared to invest just under $50m (€43m). Franchises in 2017,12 with a 13-week, an opponent and escape to his own territory The opening day of the most recent without being captured, all the while canting 138-game season season, which concluded in late October, (don’t, whatever you do, call it chanting) the alone drew a cumulative audience of 50 word ‘kabaddi’. million, a 59 per cent increase in the opening It is far easier to date the PKL, the day of season four. brainchild of cricket commentator Charu m With the league season now extended to Sharma and industrialist Anand Mahindra, $50 three months and the number of franchises whose family business interests range from Vivo fee for five-year title increased from eight to 12, the cumulative steel to aerospace. sponsorship, along with 68 league and audience for 2017 is set to substantially Sharma had always been baffled as to why franchise sponsors exceed that of the eight-week IPL. a sport that was part of India’s collective Ahead of the new season, the PKL said childhood memory had never been properly it was “gearing up to surpass other Indian commercialised or presented to fans as part sports leagues in terms of geographic of a modern entertainment culture. representation (teams from 11 states), During the in 2010 in number of matches (130-plus matches) and Guangzhou, China, he found support for a duration of the league (13 weeks) in season planned league in talks with the International five”. Kabaddi Federation (IKF) and Amateur The league draws from a deep well Kabaddi Federation. of passion for the sport in the Indian Mahindra and Sharma, who had been chief subcontinent. There are many reasons executive of the Royal Challengers Bangalore for this. For Das, a former player who

12.17 : SportBusiness International 16 BUSINESS CASE STUDY : PRO KABADDI LEAGUE

Continued from previous page...

has coached both the England men’s and “It has brought a homegrown the intensity of the raids; introducing women’s teams, the sport is both intrinsically monetary prizes for the best raid or tackle exciting and universal in its simplicity. sport into the spotlight by giving of the day to encourage more exciting “It requires quick thinking and decision- moves; increasing the points awarded when making; you achieve, you come back. When it an innovative premise, thus three or fewer defenders capture the raider you raid, you have to evaluate your opponent, capturing the imagination of (increasing viewer interest in defensive read their minds, attack them and then save strategies); filming the 13m x 10m rectangle yourself. everyone across the length and with 18 cameras; adding screen graphics on “Anyone – from the poorest person to the breadth of the country” player performance; mic’ing up the players richest – can play it, because you don’t need to pick up the kabaddi ‘cant’; mic’ing the to buy any equipment and you can play a ANIRUDDHA HALDAR, VICE-PRESIDENT OF mats to pick up all the other sounds of game anywhere – inside, outside, a room, a MARKETING, TVS MOTOR COMPANY the play; training expert commentators field.” to deliver coverage in English, Hindi, The rules and inherent characteristics of Kannada and Telugu; bringing expert the game are similar to those of games played commentators on screen close to the playing by children in every school playground Star’s investment in Mashal and the PKL area; improving the lighting; adding LED and courtyard the world over. But there was part of the broadcaster’s long-term boards for sponsors; introducing half-time are profound social, cultural and historical strategy of turning India from a cricket- entertainment with contests between reasons why the sport is so important in obsessed nation into a multi-sport culture. schoolchildren; and encouraging designs India. For the same reason, Star is also a backer of for team logos and mascots which appeal to “Kabaddi is an Indian game,” Das stresses. football’s Indian Super League. younger fans. “It was played when India was much bigger The broadcaster’s backing is an integral With over a billion eyeballs following each than it is today, when neighbouring countries part of the PKL’s success story, which in PKL season, it is no surprise that brands are like Iran, , Bangladesh and turn benefits Star through driving increased now flocking to the league. Pakistan were part of India. That’s why Iran advertising revenues. Star has invested The most eye-catching deal was the is the second biggest country for the number heavily to push the PKL, but expects to PKL’s five-year title sponsorship deal with of people playing the sport.” already break even by next year. Vivo, unveiled in May, which is worth just The relationship between broadcaster under $50m – the biggest non-cricket sports Indigenous sport and league is a symbiotic one. As Krishnan sponsorship deal in India, the league claims. Cricket is one of the myriad legacies of explains: “Star took it over, seeing an British colonial rule and Indians’ almost opportunity to take a sport which has been Young audience religious love of the sport is seen by some part of the social fabric for many generations. The league’s ability to hit a young audience as a form of Syndrome. But It’s something that Indians are familiar is said to have been the biggest reason for kabaddi is unmistakably Indian. Indigenous. with, but also something that can be made Vivo’s investment. Autochthonous. Local. contemporary in terms of look and format, In 2014 the PKL launched with no central It is a point taken up by Ravi Krishnan, with all the bells and whistles, to appeal to a sponsors. This season it has nine. In addition co-founder and chief executive of lifestyle new kind of advertiser. to Vivo, it has eight associate sponsors, company Stepathlon and former managing “It is principally a rural sport and because which include a mixture of Indian and global director of the IMG agency in South . of that has brought in a whole new bouquet brands. These are: Gillette, TVS Motors, “It’s an indigenous sport which has a of advertisers. Association of Mutual Funds of India, Bajaj world-class property,” he says. “People feel a “Star has done a great job in terms of Electricals, Indo Nissin, Lux Cozi, Castrol lot of pride in that. That is evidenced in the production and the delivery – they have made and USL. Each is reported to pay about $2m profile of the people buying the franchises. it very sexy. And the sport is good; it’s quality to $3m per season. The new owners are very prominent, blue- kabaddi with the world’s best players on the Aniruddha Haldar, vice-president of chip figures who see it as a great marketing court. Some of the other leagues which have marketing at TVS Motor Company, told vehicle.” tried to launch [in the wake of the IPL] have Indian media the league had captured India’s success in the 2016 Kabaddi World not had the same level of success.” the “sweet spot between the classes and Cup in Ahmedabad, where the country Working closely with the league and masses – it has brought a homegrown sport defeated Iran 38-29 in the final, has further the IKF, Star brought in its trademark into the spotlight by giving it an innovative fed that national pride. production standards and made some small premise, thus capturing the imagination of “Everyone in India has played it,” Krishnan but significant changes to help transform everyone across the length and breadth of the says, “even if it was just in the courtyard the sport from a rural courtyard game to a country”. when you were kids. It’s not an alien sport. cool TV property which appeals to a wide Given the small playing area, which limits Everyone has an affinity.” audience. Star’s president of strategy and the amount of in-venue signage and LED The real trick of the league and its backer, incubation, Ipsita Dasgupta, is generally time that can be sold, a lot of the value for Star, he adds, has been to pull in millions considered to have led the broadcaster’s the associate sponsors lies in the 75 seconds of the sport’s traditional rural followers at changes. of airtime-per-match they have across Star’s the same time as making it cool for a young, Star’s contribution includes: reducing the bouquet channels. This leaves Star with urban audience. raid time from 45 to 30 seconds to increase plenty of opportunity to sell spot adverts.

12.17 : SportBusiness International BUSINESS CASE STUDY : PRO KABADDI LEAGUE 17

There is a push for Kabaddi to be recognised by the International Olympic Committee as an Olympic sport (Getty Images)

Some individual team sponsor deals are connections. because there is such a competitive market said to be worth about $300,000 per season, Das is convinced that the next Kabbadi place. If you don’t have a competitive market, but local reports say the success of the World Cup, which is set to take place in early how do you create the kind of value that the franchises in attracting sponsorship has been 2019, will be transformational in taking the IPL has done? You need at least two horses mixed. sport to a wider audience. in the race.” The attraction of the PKL is not limited to Beyond that, there is the push for kabbadi Star and the PKL share 80 per cent of the Indian subcontinent and neighbouring to be recognised by the International centrally generated revenues with the countries of southeast Asia. Olympic Committee as an Olympic sport. competing teams, but unlike the IPL and the The league is now televised around the Audiences – both at home and abroad – are majority of other successful sports leagues, world and has been picked up by major growing, but for now the league’s revenues the Star-owned PKL does not sell media sports broadcasters. Not surprisingly, these lag a long way behind those of the IPL. For rights in its biggest market – the Indian include other Murdoch operations, such as Krishnan, one of the strengths of the league subcontinent. Sky in the UK and Fox Sports in the US. But – being owned and operated by a major In contrast, the Board of Control for they also include ESPN (Latin America), SBS broadcaster – is also one of its commercial Cricket in India in September sold the global Sports (), Super Sport (South limitations. rights to the IPL to Star for $2.55bn over five Africa), beIN Sports (Indonesia) and OSN “Star has taken a principal position and years, with the vast majority of the value Sports (Saudi Arabia). thrown its weight behind it in the belief it coming from the subcontinent. The sport is also finding life outside can generate multiple income streams,” he That kind of multi-billion-dollar deal its natural habit of the Indian diaspora. says. “It requires that sort of commitment remains outside the reach of the PKL, but as In countries like , and to get the thing off the ground. It is doing a season five drew to its climax, Das remained – among others – leagues have great job in bringing in multiple sponsors and bullish about the league’s long-term prospects: started up where virtually none of the players partners and the league is now the clear No.2. “I have just come from meetings with the have any Indian, Pakistani or Bangladeshi “But one reason why it will be hard to federation in India and this is the projection: origins. outstrip the IPL in revenues is that you have we are going to be bigger than Twenty20 Das said that only half the players England a broadcaster as an owner. cricket and the IPL,” he says. “That’s our next took to the 2016 World Cup had Indian “The IPL can get a phenomenal deal target. That’s what we want to achieve.” Z

12.17 : SportBusiness International 18 BUSINESS CASE STUDY : PRO KABADDI LEAGUE

THE STATISTICS THAT SHOW THE SUCCESS OF PRO-KABADDI

Joseph Eapen, senior vice-president at SMG India, looks at audience and viewing figures for the Pro Kabaddi League (PKL) in India

espite a huge increase in price, the Our data (see chart) shows that the cannot easily be replicated in other sports Pro Kabaddi League (PKL) has cumulative audience for the most recent where there can often be clashes between become the best-value sponsorship iteration of the PKL, represented an increase TV advertisers and title, team and venue property in Indian sport. of 94% on season 4 of the competition. sponsors. DSince the league’s fifth season began in The competition’s format of high-intensity PKL’s ability to offer sponsors July, Vivo’s five-year partnership with the 40-minute matches lends itself to a strong synchronicity across these mediums is sport is looking increasingly like the deal viewer proposition, so much so that the driving a return on investment that other of year. league has been extended to take in extra sports will struggle to match. The new season of Kabaddi is even giving matches and teams this season. Similarly, broadcaster Star, with its the national cricket team a run for its money. PKL can point to a growth in the length shareholding in soccer’s Indian Super By some audience analysis it earned three of time people are watching too. Viewing League (ISL), will be able to offer the same times as many viewers as the recent Indian/ duration is up 26% from 19 minutes per supercharged sponsorship opportunities in Sri Lanka series. match last season to 24 minutes per match. football as PKL provides to partners. Kabaddi’s audience growth has been For sponsors, including mobile phone That has seen 10-second advertising nothing short of phenomenal. In the opening manufacturer Vivo, the PKL is turning into slots increase in price to 160,000INR match of its 138-fixture season it attracted a a gold rush. (€2,100/$2,500) this season (compared to viewership which was a 10th of its audience Because broadcaster Star, owned by 21st 612,000 for IPL), a reflection of the fact that for the entire 2014 season. Century Fox, is also the league’s major despite its rustic roots, Kabaddi’s audience The Sri Lanka series may have ended, shareholder, sponsors are offered enviable is now split almost 50/50 between urban and but filling each of India’s top five sports opportunities to intertwine in-venue and in- rural areas. programme slots in a week, as PKL 5 has, broadcast spots. Star has now shown with PKL and ISL a is nevertheless impressive. That permits a level of impact that unique model can offer unique acceleration. Z

Average time spend: 26% increase over last season

24 minutes PKL Season 4 per match

19 minutes 178.9m PKL Season 5 per match

Pro Kabaddi audience: 46.5m 94% increase over last season

PKL Season 4 217m

PKL Season 5 423m

12.17 : SportBusiness International HOSTING WINNERS

Everyone’s a winner when hosting events in Denmark. Volunteers, spectators, businesses and politicians all come together to empower your world class event. Everyone plays on your team to take it to a higher level.

When you place your event in Denmark, you’re bringing it to a vibrant atmosphere served by a wealth of trust- worthy and experienced partners. Together we’ll make your event a winner.

GOLD PARTNER 2018 20 WOMEN’S SPORT

A WOMAN’S GAME | SPORT TRIES TO BUILD ON A SUMMER OF SUCCESS FOR FEMALE EVENTS

F The 2017 Women’s saw a 53:47 gender split in ITV audiences in the UK F Crowds of 50,000 attended the first few games of the new AFL Women’s Australian Rules tournament F Women’s sport still makes up only seven per cent of all sports media coverage in the UK

Kay Wilson of England moves past ’s Portia Woodman during the Women’s Rugby World Cup 2017 final (David Rogers/Getty Images)

12.17 : SportBusiness International TALKING POINT : WOMEN’S SPORT 21

“There has been this steady drumbeat of momentum. There have been big female accomplishments and quite a lot of discussion about women’s roles within sports media” LAURA GENTILE, SENIOR VICE-PRESIDENT OF ESPNW & WOMEN’S INITIATIVES, ESPN

BY JOHN REYNOLDS unless stakeholders build upon this momentum. he well-worn maxim that women’s Andy Kenny, managing director, CAA sport only has a 16-day window Sports Consulting, says: “It’s obviously great every four years to inspire momentum. But you need to put it in context generations of girls to play sport with where it’s at with men’s sport. Between Twas blown out of the window this summer, seven and 10 per cent of media coverage is when millions watched the Women’s Rugby on women’s sport. And at the end of the day, World Cup, ICC Women’s World Cup of brands are looking for profile and media cricket and Uefa Women’s Euro 2017 in coverage.” football. Securing a primetime UK broadcast slot The BBC, Eurosport, NBC, ARD and 2017 WOMEN’S RUGBY on ITV for the Women’s Rugby World Cup PTV Sports were among a multitude of WORLD CUP BY NUMBERS final – which attracted an average audience global broadcasters that showcased the of two million, double the ratings of many performances of stars such as England’s Premier League matches on pay-TV channels Anya Shrubsole, the ’ Anouk – may have been a coup, but for Katie Sadleir, Dekker and the US’s Naya Tapper, while World Rugby’s general manager for the new sponsors helped finance the summer women’s game it was just one of a number spectacles which enticed legions of new 3.2m of achievements. “There was a 53:47 split female and male fans. was the overall TV audience peak, for most of the games between men and These big global competitions may have which came during the semi-final women watching. So men are watching snatched the headlines this summer – a between and England women’s rugby.” period shorn of an Olympics or major men’s Such a near gender split, says Sadleir, football tournament – but observers believe would factor heavily into conversations there has been a steady ‘drumbeat’ powering World Rugby will have with new prospective women’s sport for many years, both on and sponsors for the women’s game. off the field. Australian rules football has launched Big appeal a professional women’s league, the NBA The big appeal for sponsors, like accountancy basketball championship and NFL American firm EY, which was lured in to sponsor the football competition have appointed female World Cup, is that women’s rugby gives coaches, female sports are brands a reach into a demographic who are becoming more prominent, while in the UK, The US, UK, France and Ireland all often a household’s key purchasers. and cricket’s ECB reported record viewing figures There has been a buzz around women’s have made bold statements about investing rugby for a numbers of years, helping it raise in women’s sport. the profile of sponsors for this year’s World Laura Gentile, ESPN’s senior vice- Cup, and now Sadleir believes it can up president of espnW & Women’s Initiatives, the ante. says: “It feels like there is one big tell-tale “Given the rise in talent and the number sign after another that we are getting there. of viewers, we believe we can sit down with of social media73% users were under We are not there; we are still quite a way corporates where there is a close alignment the age of 24 from being equal [to men]. But it feels like in brand values. We are definitely looking it’s at the strongest and most consistent level to stretch that commercial programme,” than ever before.” Sadleir says. The triumph of the World Cup, observers Broadcast hours say, has helped shift the perception of rugby Women’s sport is clearly on the up, but 63,000 as an elitist, male-dominated sport into one sponsorship spend, broadcast hours and uses of the #WRWC2017 which can be played by women and girls media coverage are still so heavily skewed hashtag were recorded, while across the world, aided by encouraging words towards male sport that a summer of 600,000 unique users visited from their male counterparts. Dylan Hartley, triumph could become a mere footnote www.rwcwomens.com England’s men’s rugby captain, paid tribute

12.17 : SportBusiness International 22 TALKING POINT : WOMEN’S SPORT

Continued from previous page...

as the women’s team prepared to face New “It’s been a fantastic summer momentum which she thinks harks back Zealand in the final in Belfast. He said: to the women’s 2011 football World Cup in “They’ve got their own story; we’re writing for women’s sport. There is a . ours. I’m envious that they get to play a general tailwind behind the sport This momentum is beyond the playing World Cup final. I will be watching because field, she says, pointing to Becky Hammon I won’t actually be playing.” which I would like to think we becoming the first full-time assistant coach The fervour around women’s rugby, says are very much part of” in the NBA and Jennifer Welter becoming the Sadleir, who represented New Zealand at the first female coach in the NFL. 1984 and won a medal at the MARK LICHTENHEIN, CHAIRMAN, Gentile says: “There has been this steady 1986 in synchronised LADIES EUROPEAN TOUR drumbeat of momentum. There have been swimming, is here to stay. big female accomplishments and quite a lot It’s not just the razzmatazz around the of discussion about women’s roles within World Cup, she says, but rugby training to the example of left-of-field sponsor sports media.” programmes taking place in non-traditional Estrella Damm, the beer brand, backing the She points to a flurry of women’s sports heartlands, including India, and recent Mediterranean Open. which are generating strong audience the , which indicate it’s in rude While less noted on a global stage, there numbers on ESPN. health. were record crowds in attendance this year “Women’s college softball, volleyball and “It’s been a fantastic summer for women’s for the first games of the inaugural AFL basketball have grown for us. International sport,” says Mark Lichtenhein, Ladies Women’s (AFLW) Australian Rules football soccer for women and our US national team European Tour (LET) chairman, who is in season. always rate strongly when there is a marquee the running for the CEO’s role as part of a The launch bought the game onto a event. And then the tennis grand slams are a restructure of the golf organisation. professional footing and elevated it to the winner,” she says. “There is a general tailwind behind the same level as soccer and cricket in . In recent years Gatorade, Nike, Procter sport which I would like to think we are very Crowds of 50,000 attended the first few & Gamble and have been among much part of.” games and Australians from all corners of the brands that have made significant the country were glued to their investments in backing women’s sports Blank canvas screens. teams or individuals, realising that they can Record crowds gathered at Des Moines Domestic broadcasters Foxtel and Seven reach new audiences. Golf and Country Club for this summer’s Network signed up as partners, while Solheim Cup, while star names competed National Australia Bank inked a naming Good fit in the Ladies , but women’s rights deal said to be worth between A$2m On a more local level, women’s cycling in golf is still reeling from the economic crash, and A$3m (€2.0m/$2.4m) a year. the UK may not be a sporting colossus, but with some reports suggesting it’s close to All the signs are pointing towards AFLW for the UK energy supplier Ovo Energy collapsing. being a success, but its boss is remaining it represents a good fit as part of a foray “We did lose a number of tournaments circumspect. into cycling sponsorship. The company, in the financial crisis. This is clearly the “I’d like to remind everyone this is year which focuses on sustainability and smart weakness we have at the moment,” says one [and] 176 women making their debut technology, is the sponsor of the 2017 Lichtenhein. this weekend carry an extraordinary amount Women’s Tour and the Tour of Britain. “We have rebuilt a little outside Europe on their shoulders,” said Gillon McLachlan, It comes at a time when cycling in the UK but we need to rebuild within Europe, CEO of the AFL. is growing, particularly among women, with particularly at the beginning part of the more than two million people across the schedule. This is our absolute No.1 priority.” Flagship programme country now cycling at least once a week, To bolster its position, the LET is For women’s sport to flourish, rights-holders according to British Cycling, the sport’s considering tie-ups with the men’s European and associations, sponsors and broadcasters governing body in the UK. Tour and the Ladies Professional Golf must be on the same page. Adam Rostom, chief marketing officer Associatio, the US golfing association. In 2014, ESPN faced embarrassment when at OVO Energy, says: “When you look at “It’s a blank canvas in terms of the best it was revealed that its flagship programme, cyclists, it’s clear that they are more likely to way to do it. It’s in everybody’s interests that SportsCenter, dedicated just two per cent of be early adopters: progressives with a green we have as competitive a European Tour as its airtime to women’s sport, part of a wider mindset. The fit between cyclists and our possible,” says Lichtenhein. “We will explore investigation into women’s sport which proposition is clear, so our sponsorship of the ways that can be done. If it means painted the network in a damning light. cycling makes great sense.” blooding more tournaments, that’s obviously ESPN might argue it was unfairly singled Furthermore, Rostom says that sponsoring what we need to do. That is our primary out and, in its defence, can point to its men’s and women’s cycling helps underscore objective in the short term.” dedicated women’s sport channel, espnW, the values of inclusivity and diversity that the Crucial for the LET’s future survival is and the screening of a raft of college and company likes to be associated with. Gauging luring in sponsors in a cluttered, male- professional women’s sport. Gentile believes the success of the sponsorship will reveal dominated sports market. It’s a “tough there is a significant sea change afoot and itself over time, but Rostom says the early market,” adds Lichtenhein, but he believes that women’s sport is a greater part of the indications are that it has been a success. there are reasons to be optimistic, pointing “sports conversation than ever before”, a Women’s sport, both for individuals and

12.17 : SportBusiness International TALKING POINT : WOMEN’S SPORT 23

Harmanpreet Kaur of India plays a shot during the ICC Women’s World Cup 2017 final at Lord’s (Shaun Botterill/Getty Images) teams, is at a crucial juncture. “What matters most is that on the wan as Lewis , consulting The highs enjoyed this summer have partner at digital consultancy Seven League, undoubtedly taken women’s sports such as organisations now have control points out. cricket, rugby and football to a new level, over their own messaging and He says: “What matters most is that but whether that momentum can continue organisations now have control over their remains to be seen. are able to broadcast directly to own messaging and are able to broadcast It needs buy-in from the sporting their own audiences and fans” directly to their own audiences and fans. ecosystem and observers believe it would be “They can do that via their own websites, helped by improved gender equality in the LEWIS WILTSHIRE, apps and social media accounts. If you are higher echelons of sporting bodies. CONSULTING PARTNER, SEVEN LEAGUE a fan of England Netball and interested in A spokesperson for Women In Sport, the tickets for the World Cup, you can have campaigning group, says: “Half of sport’s that conversation with England Netball governing bodies are failing to meet the startling fact remains it makes up only seven independently of traditional media.” target of 30 per cent women on their boards per cent of all sports media coverage in the Sporting organisations may be able to and nine have no female representation at UK. bypass the media, but they can’t bypass other all.” That said, the days of media coverage, be stakeholders, such as sponsors and governing Broadcasters are making inroads into it in the press or TV, driving audiences and bodies, whose support they will need to showcasing more women’s sport, but the dictating the fortunes of individual sports are ensure a buoyant future for women’s sport. Z

12.17 : SportBusiness International (population between 1.3mil - 3mil) SportBusiness Ultimate Sports Cities Awards 2016 COMMENT : KEVIN ROBERTS 25

TECHNOLOGY WITHOUT INTEGRITY IS A ZERO-SUM GAME Kevin Roberts believes that video technology is now a necessity in professional football, but argues that players must adapt their behaviour to ensure it is a success

ne of the problems with being final and hang the consequences but that’s replay system is infallible. If you don’t have what Australians might call a a view which gets more difficult to sustain a camera pointing in the right place at the ‘soccer tragic’ is the amount of every time a perfectly capable referee is right time you won’t get the pictures you time frittered away watching humiliated when a decision taken in good need and there have been occasions in rugby Onameless players in unpronounceable teams faith and on the evidence of his own eyes is – where the ball is sometimes obscured by competing in games which have little or no shown by 100 different camera angles to be a mass of bodies and flailing limbs – where context, or meaning, but which – and this wrong. even the video ref has been impotent. But is the hope that kills us – might just get It’s often said football is about opinions these instances are fairly rare, and it makes interesting. and that it’s the endless debate around every little sense to hold back progress on the basis And so it was that I recently stumbled issue which makes it so appealing. That of the occasional unavoidable failure of the across a Belgian league game one idle Sunday may be the romantic’s view, but if you’re system. afternoon as a tax return lay unattended at the owners of a club which has just been In recent years the culture among referees my elbow. What caught my eye was not so relegated and lost $100m of guaranteed themselves seems to have changed. Instead much the action – there wasn’t too much of being defensive and seemingly threatened of that – but the fact that, at the moment I by the technology, they have come to accept found the channel, the referee was standing “No matter how good video it helps them do a better job by significantly on the halfway line with what appeared to be technology becomes, no matter increasing their chances of making the right a black plastic bag over his head. call. Now I’ve heard it said that referees’ how swiftly the replays are On the face of it, there seems no barrier heads can be found in some odd anatomic delivered and no matter how slo to football entering a new era of sound nooks and crannies, but this was a novel and decision-making, ensuring fairness to all and bizarre sight. Time stood still as the camera the mo, players have the capacity a level playing field for investors, supporters, lingered on the torso of the referee before his to fool it” broadcasters, sponsors and all the other triumphal emergence blowing his whistle and stakeholders in the game. pointing to the penalty spot. There is just one fly in the ointment. What I’d just seen was my first European income because a referee has given a dodgy No matter how good video technology league experience of the video assistant penalty against you, it is likely you’ll take a becomes, no matter how swiftly the replays referee system in action and, inelegant different view. are delivered and no matter how slo the mo, though it may have looked, our man in There is far too much at stake in top-level players have the capacity to fool it. the middle was merely consulting a video football for referees to be left to get on with In particular, I refer to players who monitor (the black bag is a sort of hood to the job with only the help of their assistants dive to win penalties under the slightest provide the best viewing conditions) to help patrolling distant touchlines. This is not a of challenges. Week in, week out pundits him make the right call over a spotkick he criticism of referees but an acknowledgement are left to decide whether some or other may not otherwise have given. of the absurdity of millions of armchair challenge was worthy of a penalty or The Royal Belgian League is just one of the fans and studio pundits having a view the whether a player had “gone down too competitions in which video technology is technologically unarmed referee doesn’t easily”. That’s shorthand for cheated. Take being trialled right now. It has also been used enjoy. any trio of ex-pros and the chances are they in Germany, in last year’s Confederations We’ve heard all the arguments many times will split 2:1 on any given decision – that’s Cup and in Fifa age-group championships before. Video technology has improved to how tricky it is. with a view to deciding whether to use it at the extent you no longer have to wait ages for Let’s hope the current trials in the World Cup itself in next summer. replays, which means the flow of the game and elsewhere have proved successful While the use of goal-line technology is not significantly interrupted. It is used enough to encourage Fifa to introduce has become commonplace there are still successfully in other sports, including the video assistant referees for Russia 2018 – it rumblings about the wider use of video in NFL and both rugby codes. In tennis the use must be a step forward. But never forget decision-making elsewhere on the field. of Hawkeye on line calls has become part of that even the best technology on the There are those in football who still believe the event… and so on and so on. market counts for nothing if players don’t that the referee’s unaided decision should be It’s worth pointing out here that no video support it with integrity. Z

12.17 : SportBusiness International 26 NEWS ROUND-UP

Media THE MOST POPULAR NEWS STORIES ON TV SPORTS MARKETS

DEAL OF THE MONTH BY ROBIN JELLIS

Fifa, football’s global governing body, finalised a deal covering the 2018 and 2022 World Cups in China with state broadcaster CCTV.

Is this a good deal for Fifa? Yes. Compared to the CCTV deal for the 2010 and 2014 World Cups, this new deal represents a fee increase of at least 210 per cent. CCTV will have both free-to-air and digital rights – the acquisition of the digital rights is largely seen as a defensive move, designed to protect its free-to-air linear advertising revenues. Despite the uplift in fee, CCTV is still expected to make a substantial profit from advertising.

How were the rights sold? The rights were sold on Fifa’s behalf by the Infront 1. FORMULA ONE TO LAUNCH LIVE-STREAMING SERVICE Sports & Media agency. Infront sells Fifa’s World Cup rights across Asia, excluding , Malaysia The Formula One motor-racing series is planning on launching its own and South Korea. The agency’s negotiations with live-streaming service next year in a move designed to enhance its digital CCTV were painstaking, dragging on for almost 18 offering. Speaking to the Autosport website, F1’s head of commercial months. The final value of the CCTV deal is well operations, Sean Bratches, said the service would give fans access to content below Infront’s original asking price, but massively by “any means they want”. Autosport said the service would feature live above the broadcaster’s early offers for the rights. race coverage, as well as behind-the-scenes footage and extra content on non-race days. Why were the negotiations drawn out? 2. AMAZON SNAPS UP US OPEN TENNIS RIGHTS Guidelines issued in 2014 by China’s State Council effectively declared the World Cup to be a listed Internet company Amazon has acquired exclusive rights in the UK for the event, leaving only one possible buyer. Despite this, US Open tennis tournament, according to multiple reports. Amazon has Infront ran an auction for the digital rights in 2015, reportedly secured the rights in a five-year deal, from 2018 to 2022, for a fee receiving offers from all the major streaming players. of about $40m (€34m), or $8m per year. The rights were previously held by Infront was close to signing a deal with LeSports, the international sports broadcaster Eurosport, which sublicensed the rights on highest bidder, before the government intervened to pay-television broadcaster Sky in the UK. Eurosport has extended its pan- and insisted all rights had to be awarded to CCTV. European rights deal for the US Open, excluding the UK and Ireland. Although CCTV’s fee is lower than that offered by 3. JUVENTUS CLAIMS FIRST WITH NETFLIX PARTNERSHIP LeSports, the auction provided Infront with a clear idea of the market value of the rights – something it Italian Serie A champion Juventus has claimed a first for the football market was able to use in its negotiations with CCTV. by entering into a partnership with online streaming service Netflix. Under the deal, Netflix will produce a four-part documentary series on the Turin How are sales across Asia progressing? club. The series will consist of hour-long episodes and is scheduled to be well. Infront is close to finalising a deal with the released in early 2018. ISM agency in Indonesia, covering 2018 and 2022, and 4. NBC SPORTS ADDS SIX NATIONS TO RUGBY PORTFOLIO has struck a two-tournament deal in Myanmar with a pay-television operator. It has also agreed a lucrative The NBC Sports division of media group NBCUniversal has agreed a multi- deal for 2018 only in , with LeSports – which year deal to become the new US rights-holder of the Six Nations rugby is understood to be secure despite the fact LeSports union championship. The deal, which will commence with the 2018 Six has defaulted on other media-rights deals. Rights to Nations, sees NBC Sports replace pay-television broadcaster beIN Sports in the 2018 World Cup have already been sold to pay- the role. All matches from the annual national team tournament will stream television broadcaster Sony Pictures Networks India live on NBC Sports Gold. across the subcontinent as part of a deal covering 5. EUROSPORT ACCELERATES FORMULA E COVERAGE 2014 and 2018. However, the agency is struggling to sell in , and Vietnam. Z International sports broadcaster Eurosport has expanded a rights agreement with the Formula E electric car-racing series to cover 54 markets across To access more detailed analysis of CCTV’s World Europe. The deal will run for three years, from 2017-18 to 2019-20. The 2017-18 Cup deal in China, including old and new values, as campaign will get underway on December 2-3 with a double-header in Hong well as the value of World Cup media rights across Kong. Eurosport will show live coverage of all 14 races during the upcoming Asia, subscribe to TV Sports Markets. season on an exclusive basis across Europe, excluding the UK and Italy. Z

12.17 : SportBusiness International MEDIA : DATA 27

NATIONAL AND INTERNATIONAL FOOTBALL ASSOCIATION RIGHTS, POWERED BY RIGHTS TRACKER

Sister title TV Sports Markets (TVSM) has produced an Confederation of African Football (CAF) global interactive data report which analyses media deals across rights deals by rights cycle (€ per year) national and international football associations. Some of the graphs are reproduced here as a preview of the TVSM Rights Tracker Service. The full report covers deals for Uefa, CAF, Concacaf and Conmebol national team events, plus national 2001–08 2009–16 2017–28 football association events.

Lagardère Lagardère 6.3m 18.8m Uefa European national team deals from Lagardère 2018-19 to 2021-22 total value (€) 83.3m

CAF’s global rights deal with Lagardère Sports from 2017 to 2028 for €83.3m per year covers media and marketing rights to six Africa Cup of Nations (Afcon) tournaments in 2017, 2019, 2021, 2023, 2025 and 2027. The Afcon is by far the most valuable CAF property in the package, which also includes exclusive rights to Afcon 250.0m qualifier matches, the CAF Champions League and other second-tier properties. ITV: 178.9m

161.0m 140.0m Selected current deals in place for Concacaf Sky: 46.5m (Confederation of North, Central American and ESPN: 99.6m Caribbean ) events ($ per year)

Sky: 116.2m (Uefa Nations League) Univision: Regions Property Rights cycle 63.4m Latin America, Concacaf 2017–22 Fox Networks Group Mexico events (FNG) 20.0m UK Germany USA MENA France

Concacaf 2017–22 Univision Uefa’s change in format and centralisation of all national team rights from 2018-19 USA events 10.0m onward has helped European football’s governing body increase the value of those rights. The creation of the Nations League, a national team competition, has increased the amount of content that its internal agency, CAA Eleven, can Concacaf 2014–22 NBC Universal distribute. USA World Cup 5.0m Qualifying In the UK, commercial broadcaster ITV holds free-to-air rights to the England national team’s qualifier matches for the Uefa 2020 European Championships International Concacaf 2017–21 Lagardère and the Fifa World Cup in 2022 (€178.9m). Pay-TV broadcaster Sky has the rights rights events 1.3m to cover every Euro 2020 and Fifa 2022 qualifier played by , , Northern Ireland and the Republic of Ireland (€46.5m), and has exclusive rights to show all home nations matches (including England) during the new Uefa Nations League tournament (€116.2m). The latest deal completed by Concacaf was with Fox Networks Group in Latin In Germany, RTL has the rights to 20 European qualifiers and eight friendly American for its club competitions. Fox will retain exclusive pay-television and matches in total. In the US, ESPN holds English-language rights to Euro 2020, digital rights in (excluding ) and Central America. In Mexico, it European qualifiers from 2018-19 to 2021-22 and the Nations League friendly will have free-to-air and pay-television rights. In the US, Univision holds the Spanish tournament in 2018-19 to 2020-21, as well as other international matches and Portuguese-language rights, including Gold Cup, Champions League, men’s and (€99.6m). women’s U17 and U20 competitions, and the Championship. NBC Universal holds Univision holds the Spanish-language rights in the USA to Euro 2020, European the Spanish-language broadcast rights to all Concacaf World Cup qualifying matches qualifiers from 2018-19 to 2022-2021 and the Nations League friendly tournament played outside of the USA and Mexico in the 2018 and 2022 cycles. Lagardère holds in 2018-19 and 2020-21, as well as other international matches (€63.4m). the international rights to the 2017 and 2019 Gold Cups outside Concacaf nations. The In MENA, beIN Sports holds the rights to Uefa European qualifiers and friendlies, agency also holds rights to the Concacaf Champions League outside the from while M6 and TF1 share the rights in France. 2017-18 to 2020-21. The majority of the deal value is in the Gold Cup rights.

To subscribe to TV Sports Markets or Rights Tracker call Tom McMullen on +44 (0) 207 265 4223 or email: [email protected]

12.17 : SportBusiness International 28 MEDIA : REALITY TV

REALITY TV | BEHIND-THE-SCENES SPORTS SHOWS PROVING A WINNER

F Reality shows are relatively inexpensive to produce and often used as an incentive to view other programmes F HBO’s Hard Knocks has attracted an average of 3.9 million viewers per episode over the last three years F CBS, Fox, ABC and NBC have joined HBO and Showtime in broadcasting sports reality TV shows

‘Scouting Camp’ has proved a hit for USOC and NBC Sports, with viewers tuning in to follow the journey of a group of Olympic hopefuls (NBC Sports)

BY BARRY WILNER ‘Housewives of Wherever’ and the like, the question,” says Peter Nelson, executive sports reality shows do offer a relatively vice-president of HBO Sports. “Before HBO ports events are the ultimate in revealing behind-the-scenes look at their launched the 24/7 series in 2007, there reality television. So what does that subjects. Nowhere has this worked better than was exactly one non-heavyweight bout in make reality shows about sports in boxing, where the personalities tend to be boxing history that registered more than and the people who play, coach and outsized and, frankly, the inherent violence of one million buys, the true benchmark for a Sadministrate them? the sport sells. megafight.” Well, in the US, such programming has For both HBO and Showtime, the premium That was in 1999, Oscar De La Hoya versus become a staple of a variety of networks. And cable networks where the best in boxing is Felix Trinidad, which did 1.4 million buys on because it is relatively inexpensive to produce found – often through pay-per-view telecasts HBO pay-per-view. and is often used as an incentive to view other – reality series leading up to the actual bouts “Since HBO unveiled 24/7, which showed programmes, ‘the real stuff’ is successful. have become staple components in their fighters in a way never before seen by viewers, So much so that many TV outlets can’t get programming. But why? a wave of non-heavyweight fights have soared enough. While we’re not exactly talking the “There is one indisputable answer to that beyond the one million pay-per-view buy

12.17 : SportBusiness International MEDIA : REALITY TV 29

barrier and the all-time leaders in the entire “The content we create is “A feature of the show was having the PPV category are all lighter-weight bouts athletes train using the same facilities and involving prizefighters named Mayweather, designed to promote and provide expert staff as our elite athletes. It was an Pacquiao, Canelo and De La Hoya. These our fans with compelling content authentic window into the world of Team guys have been showcased on HBO’s 18-time USA Olympians and Paralympians.” Emmy Award-winning 24/7 franchise.” outside of the two weeks of the The list of USOC reality programming HBO provides approximately 32 that has been sponsored and appeared either million homes with its commercial-free Olympic and ” on the NBC networks or across Team USA programming. Showtime is just behind that platforms is growing. Series include ‘Next with about 30 million and also has found PETER NELSON, EXECUTIVE VICE-PRESIDENT, Olympic Hopeful’ (sponsored by 24 Hour major benefits from reality sports shows, HBO SPORTS Fitness); ‘Working Out With Team USA’ (KT especially in the sweet science. Tape); ‘Cooking with Team USA’ (Kellogg’s); Particularly intriguing is what the US ‘Hometown Stories’ (Hershey’s); and ‘Winter Must-see television Olympic Committee (USOC) has come up and Summer Champions Series’ (Comcast). The annual series that is considered the king with. The organisation invited 91 athletes “When we work with partners such as of reality sports programming is HBO’s Hard seeking Olympic berths to a made-for-TV KT Tape,” Gordon says, “and they have gold Knocks, an examination of the everyday rigors tryout camp at its base in Colorado Springs. medal winner Kerri Walsh Jennings on their of an NFL team’s training camp. Those athletes could be from any sport, but roster, it creates great synergy between all While the action and drama can range could wind up qualifying in another. parties. KT Tape is leveraging both their from inspiring to maudlin to banal, That number was reduced to eight, who personal sponsorship and USOC partnership Americans’ thirst for pro football, particularly qualified for national team camps for rugby, to create outstanding branded content.” a look inside the locker room and at the inner track cycling, bobsleigh and skeleton. workings of a franchise, has become must- Athletes making the final cut were revealed Compelling storylines see television for fans, and not just fans of at the end of a reality show aired in August What makes for interesting reality sports the team featured that year; in the summer on NBC Sports Network called ‘Scouting programmes? Gordon hits the mark with of 2017 it was the Tampa Bay Buccaneers, Camp: The Next Olympic Hopeful’. his description, knowing full well that if it but high-profile clubs such as the Dallas Another 23 athletes were invited to is boring or phony or, worse, schlock, not Cowboys, Miami Dolphins and New York Jets continue training in their sports. only will it not work commercially, it will have also been featured. “We’ve always believed in `talent transfer’ reflect negatively on those involved. That Launched in 2001, Hard Knocks has won 15 – high-level athletes who may not make it includes whichever outlet airs it; in the Emmy Awards and was so compelling in 2010 in one sport, but could try out in another,” case of premium cable channels, by sending with the New York Jets – coach Rex Ryan’s Alan Ashley, the USOC’s director of sport potential subscribers elsewhere. verbose (often curse-filled) and over-the-top performance, told the Associated Press. “Must-haves also include compelling personality a highlight – that HBO invited “When you think about all the college storylines and we are lucky to have a lot of them back for 2011. The Jets declined, no athletes, this could be a stepping stone for those in the Olympic Movement,” Nelson other team stepped up and the series was people to think about this in a different way.” says. “We have created a marketing campaign scrapped for that season. Thanks to the series, America gets to called ‘every moment matters’ that highlights It came back in 2013 with the Miami watch the athletes’ trials and tribulations the road these athletes take to the Olympics. Dolphins, after the NFL strongly suggested it as they attempt to progress to the national “The content we create is designed would assign a team to do the programme if team, and maybe even the medals podium. to promote and provide our fans with no one volunteered. “It was interesting is the best way to put compelling content outside of the two weeks “Series such as Hard Knocks and `24/7’ it,” says Josh Williamson, a former lacrosse of the Olympic and Paralympic Games, and were well-thought-out ideas that since their player who wound up being invited to the to show what it takes for the athletes to respective debut have been reinvigorated to US training camp for bobsleigh. “Sometimes prepare for a single event and the biggest ensure the appeal does not diminish,” HBO’s they’d have to do a bunch of takes to make sporting moment of their lives. Nelson says. “The average audience the past it look good on TV. The difference is in “Whether an athlete is an established star three seasons of Hard Knocks has been 3.9 athletics you only get one shot at it.” or an up-and-coming hopeful, they have a million viewers per episode. That viewership Hopefully, with most sports reality TV, compelling story to tell. The totality of our number, coupled with the national press there is an air of veracity. Sure, the athletes platforms allows us a year-round opportunity acclaim and industry awards, gives us enough are aware of the cameras on hand and when to promote all aspects of the Olympic and evidence that this type of programming is they play to those cameras, it becomes almost Paralympic movements and Team USA. excelling on our platform.” rehearsed theatrics. But when the action is “From the competitions... through the Reality sports programming isn’t limited spontaneous, it can make for riveting theatre. training leading into those competitions, and in the US to the likes of HBO and Showtime. “The big takeaway from the recent including all the support the athletes receive It is becoming much more prevalent on broadcast is how our fans embraced the [from national governing bodies], families, the offshoot channels for major free-to-air athlete stories, the competition and reward communities, the USOC and sponsors away networks CBS, Fox, ABC and NBC. For those of working toward a spot on the Olympic from competition, there is a huge amount of stations, it is as much about filling airtime as team,” says Brian Gordon, senior vice content out there, and almost all if it hasn’t it is about attracting audiences. president of marketing and media for USOC. been seen by our fans before.” Z

12.17 : SportBusiness International 30 NFL ENGAGEMENT

Digital

DOWN TIME | IS THE NFL SUFFERING A BLIP OR A MORE SERIOUS DECLINE?

F TV ratings recover, but still well down F Restrictions on social media have made way for a more open-minded approach F NBA most likely property to overtake the NFL

Empty seats on display during the NFL game between the Los Angeles Chargers and the Miami Dolphins in September (Getty Images)

BY RICHARD CLARKE sports in Britain in the 1970s, but crowds somewhat to register a still worrying season- are poor these days. It gets minimal column on-season drop of eight per cent. There were here is one question that strikes inches and its TV coverage almost feels like significant dips on the major game days: pure panic into the heart of any filler content during the barren summer Monday (12%), Thursday (14%) and Sunday successful athlete. The very notion months. Ditto , which has slid some (10%). gnaws at the ego to such an extent way since its mid-80s high. An interesting if not entirely rigorous Tthat careers are shortened for fear of it, while study using geolocation app Foursquare legacies are irrevocably tarnished if one fails Questions over its future on smartphones even suggested that game to address it. These days the dominant global game is watching in sports bars was down 13 per cent. Is my faltering form just a blip or is it the called ‘football’. The round-ball version In the meantime, the NBA Finals series end? is king pretty much everywher, while it’s was the most watched since 1998, while The same applies to a sport, of course. the ‘pigskin’ that holds court in the US. Game 7 of the between the Boxing remains relevant despite perennial However, the gridiron game has endured Cubs and the Indians achieved its best rating post-mortems, but it has little of the intense such a chastening few years that questions in a quarter of a century. global popularity it enjoyed in the early to over its future are being asked. As the Wall Street Journal put it: mid-20th century. US TV ratings for the NFL fell alarmingly “The aura of invincibility had cracked.” Speedway was among the most watched at the start of last season before recovering Just like that insecure athlete might protest,

12.17 : SportBusiness International DIGITAL: NFL ENGAGEMENT 31

there were plausible responses put forward The NFL’s top five social media the NFL to chase its overseas markets too. for the NFL’s predicament – the ongoing Last season it became the first global sports concussion issues, the dominance of the properties in terms of Facebook league to stream content in China after Patriots, the lack of real heroes, the anthem and Twitter followers agreeing a deal with multi-faceted Chinese protest, even the presidential contest. social media platform Sina Weibo. Others just cited bad, unattractive games. Ahead of this season, NFL inked a three-year RANK PROPERTY FACEBOOK TWITTER TOTAL Most intriguing of all, it was even contract to make Tencent its destination for suggested that football fans have been quick 1 NFL 16.7m 24.2m 40.1m content in the world’s most populous country. to move from the traditional, well-measured 2 Dallas Cowboys 8.7m 3.5m 12.2m This includes streaming games on numerous forms of media consumption, such as 3 New England Patriots 6.6m 3.8m 10.4m platforms and content on WeChat, which television, to the less-measured digital forms 4 Pittsburgh Steelers 6.4m 2.8m 9.2m boasts 960 million active users on its own. (more of that later). The deal will support the long-held 5 Denver Broncos 4.4m 2.5m 6.9m But were they reasons or excuses? ambition to develop the game in China. Plans Is this just a minor realignment or, to take are being drawn up to play a competitive an overused buzzword, major disruption? game there in 2019 and the well-established Either way, the response from the NFL has The average number of viewers London games have always had the double been urgent and widespread, with a heavy benefit of providing a more favourable kick- bent on digital and social media. Its biggest during Week 7 of the NFL season off time in the than those in the US. TV deal, a $27.9bn (€24.0bn) agreement with over the last three years. The Fox, CBS and Comcast, runs to 2022, so the 2017 figure is down almost 19 per Most significant league has the luxury of a little time. If you stack up all the digital deals, it Nonetheless, the hints of feathers being cent on 2015 looks impressive and wide-reaching, but ruffled came almost three years ago, when the the Amazon agreement remains the most league clamped down on teams’ social media 20m significant. It is the company’s first foray output on game day. This came in the wake 18.4m with a major sporting league and they have of Floyd Mayweather v Manny Pacquiao, the the financial acumen to develop a portfolio ‘fight of the century’ that many saw free on 15.9m that may change the media landscape of live video-streaming platform Periscope, after 15m 15.1m sport if they deem it sufficiently successful. the pay-per-view mechanism faltered. But, according to Mark Burns of As ever, the rights-holders’ first concern SportsBusiness Chronicle, it is early days for was protecting its plum – the live game. both that deal and the notion that NFL’s No.1 Clubs reacted with a mixture of shock and 10m position is under threat. sarcasm. The league has rolled back its “The viewership numbers on Amazon approach since then, but live streaming is have been solid for having been behind a still not allowed from 15 minutes before paywall,” he says. “At the end of the day, this kick-off and, with some specific exceptions, 5m is a marketing and data deal. Amazon wants highlights are not available natively on a to drive Prime subscriptions and glean more club’s social channel. consumer data information. However, it is highly significant that “The overall concern about the NFL this season touchdown celebrations can 0 will be real when advertising dollars start 2017 2016 2015 be posted in-game on Twitter and other to decrease and/or sponsors — long-term platforms if the league publishes them first. or short-term — start to decrease their These are social media gold, exactly the fun, content pre-game via Periscope plus spending or allocate their monies elsewhere. visual and viral content that will attract a highlights and analysis. “If you’re talking viewership, the NFL young audience. The Amazon deal may have hogged still has a massive following. Just look at the Like most sporting bodies, the NFL has the headlines, but the greatest amount of Super Bowl; it’s still viewed by 115 million seen social media as crucial in their pursuit content is going on Facebook. Recaps of people across the globe. of the Millennial demographics who have every game – 256 regular-season fixtures, “Domestically, the NBA is incredibly been cutting their cords so easily. The playoffs and the Superbowl – will be available hot right now. With all of the star power one-season, $10m deal with Twitter for for a global audience. There are also three in the league and the constant flow of new 10 Thursday night games was deemed a shows on Facebook’s new Watch platform, storylines, if there was any league looking to qualified success last year. billed as a competitor to Netflix and Amazon ‘beat’ the NFL — however you define that — This year Amazon took that slot for five Prime. The most interesting is Sound FX, I’d suggest the NBA. With that said, I don’t times the money and the NFL will have which is based on the players’ utterances expect that happening anytime soon.” received a significant benefit from the while being mic’d up during games. That is almost certainly true; the time- marketing holler of the online retail behemoth. In addition, the NFL has a healthy frame we are analysing is just too short. Twitter still has some skin in the game. YouTube channel with 2.5m subscribers and, Empires rarely crumble overnight, especially #NFLBlitz is a 30-minute live show streamed in the past, has had deals with Snapchat for when the actions of the NFL suggest they are five-days-a-week, year-round on the social prime real estate on the Discover platform. not blind to their problems and have opened media platform. It features live pitchside Digital has been the preferred method for up avenues of change. Z

12.17 : SportBusiness International 32 COMMENT : RICHARD CLARKE

COKE DEAL PROVES FIFA GAME IS NOW THE REAL THING

The world’s biggest console title is now a star in its own right, says Richard Clarke

yrrell Hatton may be one of the up- EA Sports has 9,000 data reviewers Sports titles reportedly hit $800m (€680m). and-coming names in British golf, creating 5.4m data points and ratings for It gets better. Fifa 17 saw the introduction but it appears he is also a typical 18,000 players in 700 teams. These days your of ‘The Journey’ with Alex Hunter, a fictional 26-year-old. Fifa rating IS your ability, hence Meyler’s player you guide through his career, both on TAt the end of September, the European chagrin. and off the field. In ‘The Journey’ the way Tour star was leading the likes of Rory EA Sports was quick to secure licensing the player reacts to new contract offers, the McIlroy, Lee Westwood, Ian Poulter and agreements with major clubs, leaving press and sponsorship deals affects progress Danny Willett at the halfway stage of the PES fans playing with ‘Merseyside Reds’ as much as gameplay. Fifa 17 was the biggest British , however he had only one and ‘Tyneside’ rather than Liverpool and selling console game in the world in 2016, thing on his mind. Newcastle United. Stadiums, chants and kits with 21 million copies and 75% of players “I’m absolutely devastated I can’t play Fifa have been replicated in detail. interacted with Hunter at some point. 18,” Hatton told The Guardian after a second Therefore, it is no surprise that he has just round containing six birdies. “It’s just as well ‘signed’ a real-life deal with Coke. Hunter will I’m away for another few weeks. Otherwise “Let me make a bold prediction – be part of the drinks manufacturer’s push I’d probably waste 12 hours a day on it. I’m towards the 2018 Fifa World Cup and feature looking forward to getting home and playing.” in eight to 10 years’ time we in an advertisement in Times Square. For all we know, Hatton’s tongue may will know the name of Fifa’s The new version of ‘The Journey’ sees have been pressed to his cheek. However, it Hunter struggle in the Premier League and is no joke to suggest the launch of each new world champion” join up with LA Galaxy in MLS. US soccer has version of EA Sports’ genre-defining football long seen Fifa as a strategic tool for unlocking video game is now a phenomenon. a larger audience and an ESPN poll in 2014 It is marketed expertly for the modern It is all part of the software giant’s found 34% of American fans discovered the age. The major component is a drip-feed of intention to make the game as lifelike as sport as a result of playing the video game. real-life footballers pictured with the gold- possible in comparison with the slightly Arguably, Fifa has not successfully entered and-black Fifa Ultimate Team (FUT) cards cartoonish gameplay of PES, created by the esports space, but let me make a bold displaying their statistics. There are even… Konami of Japan. prediction – in eight to 10 years’ time we ahem… ‘leaks’ of the major stars’ numbers. The policy has clearly worked. Once neck will know the name of the world champion. A crucial factor is that the players and neck, Fifa reportedly outsold PES by a They will have a significant profile and stand genuinely care about their ratings. Perhaps factor of 40 in the week of release last year. alongside traditional sports stars in their the most telling ‘reveal’ of this year’s Small yet significant iterations bring buyers ability to make headlines. campaign came live on Sky’s Soccer AM back year after year. Meanwhile, an army of Who knows, they might even be competing show and concerned Hull City YouTube channels have grown up around with Tyrrell Hatton if his upward trajectory David Meyler, an ardent Fifa fan with his the game, thereby reinforcing its cultural continues. Unfortunately, the Englishman own YouTube channel upon which he significance to its target market. carded a 71 and 69 to finish eight strokes off commentates on his virtual games. Disgusted Copa90, the most influential football the eventual winner at the British Masters. at the reduction in his pace and shooting channel on that platform, has been rolling But the Liverpool fan stormed back to win stats, he whined: “How can I go home and out “Fifa and Chill” for years. Essentially, this the Dunhill Masters Links and Italian Open look at my daughter?” is just a celebrity interview over a game or in successive weeks. Elsewhere, ’s first concern two (think “Around with Alliss” minus the Presumably, after that he got back to the after a Carabao Cup hat-trick was to ask EA knitwear) but it works. serious business of thumping home a few Sports to boost his ratings, while Juventus’ Elsewhere, EA Sports has shown real goals at a virtual . Z tweeted his concern that his innovation in recent versions of Fifa by Fifa 18 depiction sported a two-year-old opening up avenues of significant extra Richard Clarke is a digital and social media hairstyle. revenue. consultant. He holds the distinction of having All joking aside, statistics and authenticity FUT, a fantasy/trading game hybrid, was run the social media accounts at major football have been at the heart of Fifa’s dominance in introduced in 1999, six years after the first clubs in the Premier League and MLS, having the market after outstripping Pro Evolution iteration of the game hit the shelves. In 2016 worked for Arsenal and the Colorado Rapids. Soccer (PES), its main rival. microtransactions in this section across EA @MrRichardClarke

12.17 : SportBusiness International

34 NEWS ROUND-UP

Sponsorship & marketing THE MOST POPULAR NEWS STORIES ON SPORTS SPONSORSHIP INSIDER

DEAL OF THE MONTH MATTHEW GLENDINNING

RBS banking subsidiary NatWest will take over from its parent brand as title sponsor of the 2018 Six Nations Rugby Championship, which will be named the NatWest Six Nations. The one-year deal is understood to be worth significantly less than the £12m-plus per year offer tabled by RBS last year, which was turned down by Six Nations Rugby Limited, the tournament’s commercial rights-holder.

Why did the Six Nations reject the initial offer? It is understood that RBS made roughly the 1. LAGARDÈRE LAUNCHES NEW BRAND SPONSORSHIP AGENCY same offer as under the previous four-year deal from 2014 to 2017, citing an unchanged Lagardère Sports and Entertainment has launched a new global agency which broadcast and digital audience for the flat fee. it says is designed to enhance the value of traditional brand sponsorships. The Six Nations judged there was a far bigger Lagardère Plus will incorporate Lagardère Sports and Entertainment’s existing deal to be made, potentially worth £100m over global consulting businesses, including agencies akzio! and Zaechel Int. in six years, with banking rival HSBC. When that Germany, and Sponsorship 360 in France, all of which will be rebranded as deal fell through, the Six Nations returned to Lagardère Plus. RBS, which was by then unwilling to sign on the 2. MANCHESTER CITY SETS FIRST WITH CAMBODIAN PARTNERSHIP same terms. English Premier League football club Manchester City has signed a multi-year Is the Six Nations a difficult sell? partnership with Khmer Beverages’ Cambodia Beer brand. The deal names the brand as the club’s official beer partner in Southeast Asia. City said that The Six Nations has a unique market the deal marks the first major sports partnership of its kind to take place footprint across the UK, France, Italy and in Cambodia. The agreement also names Khmer Beverages as City’s official Ireland. These territories are particularly water partner, official soft drinks partner and official energy drink partner in well-suited to RBS’s banking profile, but far Cambodia. less so with other brands in the banking sector. A challenger in the financial services 3. MANCHESTER UNITED, LALIGA LINK WITH SAUDI sector would also have to contend in the The General Sports Authority of Saudi Arabia has signed strategic short-term with the alignment of RBS-owned partnerships with LaLiga, which operates the top two divisions of Spanish brands with the home unions: NatWest is the football, and English Premier League club Manchester United. The GSA has Rugby Football Union’s banking partner, RBS agreed a Memorandum of Understanding with United, through which the club is an Official Sponsor of Scottish Rugby and will help the organisation develop Saudi Arabia’s football industry as part of Ulster Bank is a sponsor of the Irish Rugby its 2030 Vision. The Saudi Vision 2030 was announced last year by Crown Football Union. Prince Mohammad bin Salman and is designed to diversify the Saudi economy and develop the country’s public sectors. How good a fit is the Six Nations for the NatWest brand? 4. PITCH INTERNATIONAL COMMERCIAL EXTENDS WINNING STREAK Better than you might think. In June RBS- Pitch International claims it has sold over £100m (€108.6m/$129.4m) worth branded branches based in western Europe of sponsorships over the past 18 months, with the agency now focusing on began operating under the NatWest banner, marketing opportunities across a host of premium sports properties. The which became the main customer-facing recently-announced sleeve sponsorship deal between Finnish mobile gaming brand for the region. NatWest has offices in company Rovio Entertainment and English Premier League football club eight countries on the continent, including Everton is the latest in a string of deals introduced by Pitch International France and Italy, that support the international Commercial. business of large corporate customers. David Wheldon, chief marketing officer at NatWest, 5. RAKUTEN BUILDS NBA PRESENCE WITH LEAGUE PARTNERSHIP said that the tournament “will provide us with Japanese e-commerce firm Rakuten has furthered its ties to the NBA by a platform to engage and build affinity with agreeing a multi-year media and marketing partnership with the basketball our customers [in the UK] and… has a strong league. Rakuten becomes the league’s exclusive distribution partner in Japan European reach where we also serve our for all live NBA games and a global marketing partner of the NBA, with reports customers through our NatWest brand.” Z suggesting the deal is worth more than $225m. Z

12.17 : SportBusiness International SPONSORSHIP : DATA 35

EUROPEAN FOOTBALL SPONSORSHIP DATA FROM SPORTS SPONSORSHIP INSIDER

Sister title Sports Sponsorship Top club shirt and kit deals combined, 2017-2018 Insider has produced an interactive €159.4m report into the sponsorship market in European football. Some of the graphs are reproduced here €132.0m as a preview of its Deals Tracker €121.4m €110.0m Service. The full report includes sponsorship deals across 285 properties and 3,390 different €85.0m brands across the top leagues and €70.3m competitions in European football.

Clubs: total shirt and kit revenue per league per annum, 2017-18 v 2016-17

Manchester United’s €65.2m per-year shirt deal with carmaker Chevrolet and €94.2m €634.3m Premier League per-year kit deal with sporting goods company remain the biggest in their +23.8% €512.3m respective categories in the Premier League, and keeps United ahead of its European rivals in combined revenue from the two key sponsorship sources. Second-placed €303.7m Bundesliga Real ’s kit deal with adidas, worth €100m per year, comprising €70m in rights +5.7% €287.3m fees and €30m in royalties from branded merchandise, was announced in 2017, but had begun in 2015-16. Real Madrid will increase its main shirt revenue next year, when €273.0m LaLiga airline Emirates ups its price to €70m per year. +16.1% €235.2m

Serie A €191.3m +8.3% €176.6m Top brands by number of deals, 2017-18

Ligue 1 €106.1m adidas 64 +6.5% €99.6m 2017–18 2016–17 Coca-Cola 60 Nike 58 Macron 22 Sports Sponsorship Insider research for the 2017 European Football EA Sports 21 Sponsorship Report has revealed that clubs from the top fi ve leagues bring 21 in around €1.51bn ($1.78bn) from their combined shirt and kit deals, up from Ladbrokes 19 €1.31bn in the 2016-17 season. Orange 17 Of the top fi ve leagues, Premier League clubs have increased their Prozis 15 combined shirt and kit sponsorship income by the greatest proportion, up Sportoto 15 23.8 per cent from €512.3m in 2016-17 to €634.3m in 2017-18. Utilita 14 Bundesliga shirt and kit income is up by a relatively modest 5.7 per Carlsberg 13 cent for 2017-18 with the big clubs tied to long-term deals with their main Jupiler 13 partners. However, this masks an annual increase of around €41.4m in Heineken 12 Bundesliga club income from the fi rst season of shirt sleeve sponsorship Joma sales (not recorded in this table). 12 Sky Bet 12 LaLiga shirt and kit income is up by 16.1 per cent thanks, in part, to ’s €20m uptick on its main shirt deal from Japanese ecommerce 12 brand Rakuten, which is paying €55m per year from 2017-18 to 2020-21. Sabseg Seguros 10 Serie A shirt and kit income is up by 8.3 per cent, due in part to a Volkswagen 10 reduction in the number of clubs without a main sponsor from fi ve to two. AS Roma is still trying to sell its main shirt deal, which is on the market at Analysis of European club sponsorship deals covered the top fi ve leagues, plus the €10m per season, as is Sampdoria. top leagues in Belgium, the Netherlands, , Scotland and , as well as Ligue 1 shirt and kit revenue is up 6.5 per cent this year, starting from a the English Championship and clubs in Uefa competitions not covered by previous relatively low base of around €100m last season. The extra €6.5m across leagues. From this sample, the two sporting goods giants, adidas and Nike, were the league can be attributed to value increases among the league’s mid-tier divided by Coca-Cola in terms of the number of deals. Although Coca-Cola holds no clubs. main shirt properties in European club football, it is an offi cial partner of 60 clubs.

To subscribe to Sports Sponsorship Insider or Deals Tracker call Tom McMullen on +44 (0) 20 7265 4223 or email [email protected]

12.17 : SportBusiness International 36 COMMENT : TIM CROW

WHY THE UK SPORTS SPONSORSHIP MARKET IS SO SOFT NatWest’s short-term sponsorship of the Six Nations tournament is symptomatic of the age, says Tim Crow

hen the UK sports deal. That’s a tough sell in Brexit Britain – to execute them. And they could deliver sponsorship market started particularly when business as usual for your multiple campaigns within his ideal timeline: going soft after London 2012, major media competitors is selling annual one year. many thought it was just an and seasonal products, with harder metrics. In his own words: “The sponsorships I WOlympic virus – and with good reason: the One and two-year deals are going to looked at were all about awareness, but not Olympics always creates a bubble of Games- become a new normal, rather than a stop-gap. much else. And especially not about how they related host country sponsorship, which were going to meaningfully connect me with rapidly bursts when the show flies out. 2. ABC my audience at scale. I don’t want people to And so it proved – just ask most of Team Another staple of the traditional sponsorship consider my brand. I want people to buy my GB’s medallists or the numerous Olympic model is VIP hospitality – entertaining key brand.” and Paralympic sports still struggling to find customers and prospects to grow or win Sponsorship has always had competition new sponsors. their business. For many sports, in particular for brand budgets, but has managed to adapt But it wasn’t just an Olympic virus and it Formula One, it was their flagship asset. And and survive. Never before has it had such wasn’t temporary. The softness spread way for many brands, in particular those targeting fearsome competition. And it’s playing catch- beyond the Games ecosystem, into UK sport’s the C Suite, it was key to the sponsorship up. mainstream, and is now endemic. business case. There is a historic glut of major UK 4. ‘Your logo here’ sponsorships looking for buyers, and scarcely “The 50-year-old model of bundled In an increasingly fragmented world, sport a week goes by without evidence of just how inspires and unites people like little else. soft the market is. The latest example is the traditional sponsorship rights, Done well, sports sponsorship continues Six Nations’ one-year stop-gap extension with on which the sales side of the to produce spectacular brand and business RBS – under which its NatWest bank will be results for a wide range of old and new brands the title sponsor – after a fruitless search for a industry is still so reliant, is being and categories. But it needs to get much, replacement, only months after a similar deal much better at selling itself. by the English Rugby Premiership with Aviva. disrupted to death” It’s striking how many sponsorship sales It’s not just about rugby. Even the mighty pitches are selling the same things in the Premier League is still looking for a tech But Anti Bribery and Corruption (ABC) same way that they were five, 10 or even sponsor, well into the second season of its Legislation has changed everything. What was 15 years ago – as was the case with the Six latest commercial cycle. once a major selling point for sponsorship is Nations. But 90 per cent of them don’t even This is not a temporary collision of now a huge and complex area of risk for its make it past first base for one simple reason: unfortunate events. Something fundamental potential buyers. And there’s no going back. they talk all about the sports, and the rights, is happening, and the red thread is that the and the data, but not about what brands care 50-year-old model of bundled traditional 3. Facebook and Google about. sponsorship rights, on which the sales side This may surprise some people, but it Most are still of the ‘your logo here’ variety, of the industry is still so reliant, is being shouldn’t. The duopoly’s dominance of the not about solving business problems, the disrupted to death. digital era ad economy is well known. If opportunities created by deep audience Here are the four reasons why: there’s a budget out there to be had, it wants insights, how to drive productivity and it. This includes sponsorship. innovation, and how to create tangible brand 1. Brexit To illustrate, I had dinner not long ago with and business value. These, and more, are all Yes, let’s get it out there. Brexit didn’t start an old friend who is the CMO of a major UK things that great sponsorship can do. But it the softness in the UK sponsorship market, business. His target audience aligned closely continues to under-sell itself. but it has massively accelerated it. Political with one of the major sports, so he’d looked The Facebook example I mentioned volatility and economic uncertainty are at various sponsorships. At the same time, above shouldn’t intimidate you; it should forcing businesses in the UK into increasingly naturally, he looked at other options. inspire you. That’s the new benchmark. If short-term planning cycles. CMOs are under He eventually went with Facebook. Why? we innovate how sport and sponsorship is pressure like never before to produce faster Facebook gave him much better, more presented, packaged and sold, sponsorship results and hit quarterly numbers, and their detailed data and insights into the audience. can do all of that and more. And survive and tenures are shortening. They gave him bigger, more targeted reach, thrive. But it’s time to get radical. Z But despite this, the staple of the and case studies of previous campaigns with traditional sponsorship model remains hard results. They suggested what creative Tim Crow is the former CEO of Synergy. Follow the long-term ‘three, four or more year’ and distribution routes to take, and offered him on Twitter @shaymantim

12.17 : SportBusiness International DEALS TRACKER A new business intelligence tool for sports sponsorship executives

For more information on Deals Tracker contact Tom McMullen on +44 (0) 20 7265 4223 or [email protected]

Sports Sponsorship Insider, part of SportBusiness Group 38 SPONSORSHIP & MARKETING : RAKUTEN

GOLDEN OPPORTUNITY | RAKUTEN’S AMBITIONS

Japanese e-commerce giant Rakuten is making waves in sport having signed sponsorship deals with the NBA, FC Barcelona and the Golden State Warriors. Ben Cronin spoke to the company’s global marketing director, Rahul Kadavakolu

Lionel Messi (centre) celebrates with FC Barcelona team-mates (Getty Images)

SBI: What is included in the NBA deal? official platform for the NBA and its teams, Through our partnerships with Barcelona, Rahul Kadavakolu: The partnership sees providing Viber’s more than 900 million the Warriors and now the NBA, we are Rakuten become the NBA’s exclusive users with access to league content. aiming to raise global awareness of our brand distribution partner in Japan for all live and increase engagement in Japan. NBA games. Approximately 250 games per SBI: Are the objectives behind this deal year will be available through a subscription different from those behind the Barcelona SBI: What was the context for the service on Rakuten TV, Rakuten’s video-on- and Golden State Warriors deals? sponsorship of FC Barcelona and the demand service. RK: Rakuten has long had a special affinity Golden State Warriors? Rakuten will also offer NBA League Pass with professional sports. We believe that RK: Rakuten is a global brand. We’re a fairly exclusively to Rakuten members in Japan. sport has the ability to transcend language large brand in Japan, a household name. Our There are also plans to sublicense rights to and cultural barriers, and truly inspire us. international expansion over the last five broadcasters in Japan. We are very excited to be partnering years has largely been acquisition-driven. Rakuten has also become a global with the NBA to promote the growth and There have been a few businesses which were marketing partner of the NBA, which allows development of basketball in Japan, and also organic, but largely [we have expanded] Rakuten to create NBA and team zones, to to engage with NBA fans around the world through acquisitions. So really by design sell select NBA and team merchandise on through our e-commerce platforms (Rakuten and by strategy we let these brands run its e-commerce channels globally, including Ichiba and Ebates) and social media platform independently with their own brand name, Rakuten Ichiba in Japan and Ebates, a leading (Rakuten Viber). After the establishment of and we were in no hurry to integrate them. membership-based online cash-back site in the Tohoku Rakuten Golden Eagles and our Starting this year, as part of our business the US. Rakuten Viber, Rakuten’s instant entry into professional baseball, awareness of strategy for global markets, we decided messaging platform, will also become an the Rakuten brand increased dramatically. to bring all the brands under the Rakuten

12.17 : SportBusiness International SPONSORSHIP & MARKETING : RAKUTEN 39

portfolio so [we adopted] an approach where the fan engagement space. How can you all our businesses will carry the Rakuten encourage fans to use your platforms? name in front of them. So, Viber becomes RK: Messaging is just one aspect of a Rakuten Viber, Ebates will become Rakuten messaging and calling app. Through bots Ebates and so on and so forth. there could be a payment integration to it, depending on our roadmap, and actually the SBI: What role will your sports option to make transactions through the app. sponsorship deals play in this strategy? We have sticker packs [a type of team- RK: In order to support this whole brand branded emoji], which is something new to transformation, we needed a very strong the western world, but huge in the APAC partnership that supports us right through region. You send them to people, so you the journey. In bringing 70 brands together, make it a part of your conversation. The we’re talking about consumers of all 70 beauty of the stickers is that it’s a way of brands, merchants and partners we work expressing yourself. The sticker by itself will with, as well as all of the employees and not make too much value; it’s about what CEOs coming together. To bring the Rakuten “Telling a story without doing message goes with that sticker. brand to life, it’s about connecting the dots anything doesn’t give you Being the official communications between these 70 businesses. channel of the club is much larger than We have a very successful ecosystem maximum value” stickers and bots. It’s to build functionality, model in Japan where all businesses are which gives users such a unique experience connected, which is when a consumer gets RAHUL KADAVAKOLU, that eventually will make Viber the single the benefit of all brands and all services, so GLOBAL MARKETING DIRECTOR, RAKUTEN interface point for the club. we’re trying to replicate the same success in international markets. SBI: Exactly what are you looking for when launched the Barca bot on our public you sponsor a sports team or property? SBI: What other aspects were important in account, which gives the consumer, or the fan RK: I think the most important thing choosing two global teams like the Golden rather, an opportunity to participate a whole when we evaluate and when we look for State Warriors and Barcelona? lot more than they have been in tracking partnerships is to see how close and how RK: It’s a tripod strategy. Brand awareness the club in the past. It could be quizzes and connected the philosophies are. is a no-brainer, but the second part of the contests in real time. This community-driven approach is strategy is to convert some of the traffic that We’ve launched ‘most-valuable player’, critical. How different are they from other we get from the partnerships into members which is a user-driven choice of who they teams? Are they united when they play? You who use our services. The third piece is think the most valuable player should be may have great players in a team but getting looking at new business models, new revenue per game. Seventy brands are included in them to play together is an art. How does streams, new markets that we can go to this [sponsorship deal] and it covers four management run the team? How are the jointly with some of these partnerships. categories: e-commerce, digital contents, coaches involved with the team? media & communications and Fintech. It’s a They should stand for some of the core SBI: How important was the social media fairly broad set of categories and brands. values of the brand, so those are things we following of Barcelona and the Warriors in would definitely look for. And it doesn’t have your decision to partner with them? SBI: An increasing number of B2B to be a huge jersey deal every time. RK: We could use the fan base to activations seem to be about ‘story-doing’ communicate the portfolio, but the most rather than story-telling, the Alibaba and SBI: If it doesn’t have to be a huge jersey important thing is that we need to seamlessly IOC partnership being a case in point. Do deal, what other types of deals are you integrate our services – I think that’s the your partnerships with the Warriors and looking for? important, operative word. We wanted to Barcelona fall into this category? RK: It could be anything that supports our partner with brands which had a similar RK: I think every brand wants that. Telling business goals. It could be something we philosophy, a community-driven approach to a story without doing anything doesn’t give could do where we partner for specific goals, running the team or the club, and innovation you the maximum value. It’s about how it could be just in the e-commerce area, it and entertainment are core to our brand. Our you seamlessly embed services into the could be just in the content area, it could be vision is to be a global innovation company. fan engagement journey. That’s the beauty how we can help the club or the team to go to of sport and entertainment: it gives you global markets. SBI: How will the Barcelona partnership the opportunity to express yourself at an A lot of the American sports are wanting encourage fans to use your services? emotional level as a brand and it also has the to go global. Viber is huge in Russia. And RK: Rakuten Viber is a good example. interactivity angle. You can let fans interact partnerships like this, what they do is they Rakuten Viber has become the official with some of your services. Traditional give your brand so much recognition. communications channel of the club. platforms will not give you that advantage. These companies who would put you as The question is how do we create unique one of the partners to talk to now put you features that create excitement in terms SBI: Fan forums and social media right at the top of the list and say we want to of how fans engage with the club? We’ve platforms already control large parts of look at partnerships with you. Z

12.17 : SportBusiness International 40 FINNISH FOOTBALL

Data DRIVING FORWARD | FINNISH FOOTBALL’S DATA-DRIVEN APPROACH TO GROWTH

F Football Association of adopted a data-driven approach to increase player numbers and commercial revenue F Initiative was part of the association’s participation in Uefa’s GROW development programme F Campaign exceeded its targets for increasing player numbers and enabled merchandise sales to beat target expectations by 400 per cent

The Football Association of Finland has boosted player development and merchandise sales (Getty Images)

BY DAVID WALMSLEY (Suomen Palloliitto or FAF) has been to Finland around climate and facilities. Kalle concerned about participation rates since Seire, the FAF’s head of sales and marketing, f you take a glance at a Finnish , the late 1990s and has only sporadically says of the background situation: “As with all website or TV sports bulletin, the chances met an annual target of 5 per cent growth sports, we compete with the broad range of are it will be an image of ice hockey or in grassroots playing numbers ever since. opportunities people now have to spend their motorsport – not football – that jumps out, The FAF added an impressive net 42,000 time and money – this includes the ever- Iwith Formula One stars Valtteri Bottas, Kimi registrations between 2002 and 2004 but then growing use of technology, from [internet] Räikkönen and the habitual medal contenders saw the player population stagnate for almost surfing and posting, to playing simulation of the national hockey team dominating a decade – even during a period in which the sports such as EA Sports’ Fifa and esports. ratings, clicks and column inches. sport enjoyed a comparative golden age at “Also, due to the harsh climate, pitches The playing picture, however, is very elite level as a national team containing the in Finland must be able to handle snowy different, with football the nation’s likes of Jari Litmanen and Sami Hyppia rose conditions, as well as the days becoming most popular sport, played by more than to 36th in the world rankings. shorter earlier in the year. As a result, there 140,000 adults and children. At first sight, Throughout this time, the FAF was aware is a need for all-weather pitches, 4G turf, participation numbers are strong. But, as ever, of the generalised threats to participation facilities with floodlighting and indoor pitches. the headlines do not tell the full story. most sports faced from changes in leisure Nationwide, there still is a lack of such The Football Association of Finland habits and understood some issues specific facilities, although there has been a significant

12.17 : SportBusiness International DATA : FINNISH FOOTBALL 41

“By analysing our participation data we were able to identify overall churn in registered players, understand the cause, and implement a digital solution” KALLE SEIRE, HEAD OF SALES AND MARKETING, FA OF FINLAND

improvement over the last decade.” Participation in football in the datasets the FAF was able to construct Over the 15 years to 2017, the number and interrogate, and determine which of of artificial-surface football facilities built Finland, by age, 2016 these would produce the most relevant in Finland each year jumped from two information to take forward into the analysis to 33, taking the total to 343 in 2017, yet 7% and insight phase. The analytics business that expansion alone did not trigger any more widely typically draws on four principal significant participation growth. In 2014, types of customer data: demographic, however, the FAF was given an opportunity 17% behavioural, transactional and lifestyle. to take a fresh, and data-driven, look at the Demographic data is the basic information issue of playing numbers through Finland’s analysts and marketers routinely seek 56% participation in the Uefa GROW programme. about target audiences – typically starting b Under 12 Uefa GROW is an initiative to support 20% with their age, gender, place of residence, member associations in developing four b 13–17 household income and marital, family and key areas of the off-field game: the image b 18–34 employment status. of football; digital engagement; grassroots b 35+ Behavioural data tracks these consumers’ participation and commercial revenues. interactions with the rights-holder both As part of the programme, Uefa works with online and off – in everything from how a number of specialist agencies to give smaller Registered player numbers, often they visit their website and how long nations in particular access to international 2002-16 they stay for to whether they respond to expertise that can help them identify email marketing, use mobile apps, attend challenges and opportunities within each of 2002 87,859 matches or volunteer at grassroots level. the four pillars and develop new strategies to 2003 96,843 Transactional data monitors their spending progress their agenda around them. 2004 106,578 patterns across tickets, merchandise, For the FAF, a workshop with CRM and 2005 108,659 corporate hospitality, sponsor offers, etc. business intelligence agency Winners FDD 2006 111,034 Lifestyle data comprises a broader set set up by Uefa in November 2014 proved the 2007 112,951 of information typically provided by third launchpad for a mission to use data-driven 2008 113,775 parties such as credit agencies and provides digital engagement as a means firstly of 2009 112,731 a rounder picture of the customer’s non- raising participation numbers and then of 2010 112,755 sporting interests and habits, such as the generating increased commercial revenue 2011 113,714 car they drive, the credit cards they use, from this expanded player base. 2012 116,642 whether they holiday abroad etc. Seire explains: “As a national governing 2013 119,572 For its initial steps into the world of body, one of our key roles is to grow the 2014 124,844 data-driven strategy, the FAF focused on number of participants – from players to 2015 130,949 the first three types of data, which it was coaches, referees and other volunteers – and 2016 140,377 able to accumulate through its own systems this additional support from Uefa enabled and databases. It began by making an initial us to put an increased level of focus on assessment of which data points would be increasing our registered players. Number of artifi cial-turf football most useful in identifying the issues behind “We were also interested to learn of the lack of growth in playing numbers, and Winners’ research that quantified the facilities built annually in Finland, the best means of engaging current, lapsed value of the relationship between playing 2001-17 and potential players during the digital and spending on football: they identified communication phase of the strategy. that current players spend 6.3 times more 35 Seire says: “How did we identify the sort money on tickets than non-players, and 2.2 30 of data that would be of most value to us? times more than former players. From this 25 That’s a really good question. At a time when you can immediately see that if we can get 20 everyone is obsessed with ‘big data’, we more people playing our sport, we will be 15 focused on just the data that’s important for supporting our future – not just for the FAF our objective. So, in the case of registered and our teams, but also for our local clubs.” 10 players, we focused mainly on behavioural 5 data. How many years has a player been Data acquisition o registered for? When did they stop playing?

The first stage of the project was to identify 200120022003200420052006200720082009 2010 2011 2012 2013 2014 2015 2016 2017 Has a player re-registered this year? What

12.17 : SportBusiness International 42 DATA : FINNISH FOOTBALL

Continued from previous page...

club, league and district is the player in? In our participation and competition system we retain all sorts of information about our players’ performance and discipline, and we also retain information about our coaches and referees, specifically the courses they attend, appearances etc. These factors played a big part in understanding how we communicated with them in terms of what we said and when we said it. “We take the same approach with ticket and merchandise sales – we look at a fan’s past-purchase behaviour, what have they bought, when did they buy it etc. And then on top of behavioural and transactional data, we look at their demographics – age, gender, where they live etc. We haven’t done a lot in the lifestyle area, but that’s where the third-party enhancements might come in. So at some point in the future we’ll enhance our existing data with third-party data from suppliers such as Acxiom, Experian or CallCredit, but for now we’re focusing on organic data growth.”

Data analysis and insight In the same way that data sources were ranked and drawn upon for their relevance to the strategic objective of influencing Women’s football is on the increase in Finland (Getty Images) grassroots participation and registration decisions, the analysis processes then applied were also selected for their ability to movement. Statistics Finland, the office for the total of those coming into it. So in 2011, draw out relevant types of insight. Finland population stats, provides a great for example, the FAF recorded an increase Key goals at this stage included identifying service where you can download information in player numbers of 1,018 overall. However, trends in behaviours within different target about our population in regions and based on the reality was that the association actually groups, assessing responsiveness to the sort age group and gender. When we overlay that registered 32,059 new players, but also saw of communications that could potentially be type of data with our participation numbers, 31,041 hang up their boots. used in the final campaign, and clarifying the we can see the scale of impact our sport has Matching demographic data with these sorts of impact factors that could measure on our country. gains and losses also highlighted some key overall success. “This type of mapping – actually putting age and gender groups to target. Seire cites Seire explains: “We always made sure to our fans, players and volunteers onto a map post-18 participation as one such example, start with the objective that is set in our so we can see their geographic distribution – explaining: “At around age 18, participation strategy – what are we trying to achieve? is a relatively simple but under-used process. drops as young adults move to university, Then we look at the data available and When you take this visual approach to data typically because either their lifestyle the tools we have at our disposal. A lot of analysis, you get greater buy-in from your changes, the university doesn’t have a facility analysis can be done in [Microsoft] Excel – colleagues – it’s easy for them to see things or the right environment to encourage people under-estimate what a great platform on a map that aren’t evident when looking continued play, or the individual is not aware it is – but for more complex processes, through several spreadsheets.” of the opportunities around them. This is such as predictive or propensity modelling, These processes yielded some valuable where targeted email marketing was the regression and correlation analysis, we’ll use insights that both identified the problems most useful – keeping that age group engaged dedicated software. the engagement campaign needed to address as they transitioned from an at-home school “Email plays a major role in our marketing and suggested some testable options for environment to independent living.” strategy and the broadcast platform we overcoming them. In other groups, however, patterns of use – Campaign Monitor – provides various The first of these emerged from analysis churn were markedly different, with factors reports. We also use Google Analytics to of player registration data, which revealed specific to female players raising some more track web behaviour and of course we use that participation numbers were not so complex challenges that the FAF is having to the native social media analytics. The other much static as in a constant state of churn take a longer-term approach to meeting. Seire common tactic we use is to look at external that was being masked by the number of says: “Further work is taking place to address forces such as population and population people leaving the sport being matched by the issue in female players – we know that

12.17 : SportBusiness International DATA : FINNISH FOOTBALL 43

12-14 tends to be the drop-off for them, but in Geographic distribution of numbers and have been developed further their case email isn’t the best channel, hence registered football players, 2016 across the two years since to take in more the need for a data management platform: we sophisticated analytics techniques and set an need to be able to use other communication increasingly ambitious range of objectives. channels with them.” Seire explains: “It was quite fortunate Further analysis of the same data also that when we started working with Winners identified an urgent need to target de- to use our participation data to generate registered players as soon as possible after closer engagement with our players that their participation lapses, as the likelihood of it was November and our first few email their returning to the game falls dramatically campaigns promoted our range of Christmas after just one year of absence. gifts for football fans. Through just three Moving beyond the behavioural data emails we exceeded our annual online store provided by the association’s player sales target, so we immediately saw the information sets, analysis of transactional benefit in expanding our marketing plans data provided some more useful insights into when thinking about the different groups of the willingness of particular customer groups stakeholders we have. to spend with the FAF. In particular, the “We achieved 400 per cent of our annual research found that fans who had previously sales targets for our online store in the first bought official merchandise were more full year we used email marketing and today likely to purchase again in future, giving the our merchandise sales also include football- association a strong target group for the related products for a grassroots player as campaign’s revenue generation aims. well as for a fan of the national team. That has These kinds of audience segmentation – happened because we immediately understood by behaviour, demographics and transaction that a closer collaboration between the history – enabled the FAF to test a range development and marketing departments of communications designed to stimulate – which quite commonly work individually player registration and promote commercial within governing bodies of all sports – would interaction to identify which ones had the be of greater benefit to both: our players can greatest impact and reach. New and lapsed player buy tickets and merchandise, and our fans can Seire says: “We tested the principles the become players, referees or coaches. analysis gave us through email marketing, registration numbers, 2002-15 He adds: “I often hear people talk about the sending campaigns in segments – for cultural challenges [of data strategy adoption] example, we might split our sales list into 2002 – getting different departments to come groups of fans who recently bought tickets, 2003 together for one single aim. We have managed who had never bought tickets, or who had 2004 to achieve this in the Finnish FA. From the bought tickets several years ago. Messages 2005 start we were clear what we wanted to achieve about summer camps might be split between 2006 and what we had to do to achieve it, and we a segment of parents of young children and 2007 had support from everyone involved.” another in which emails are sent directly to 2008 On the playing side, the campaign was older children, and further segmented into 2009 set an objective of achieving a 5-per-cent those children who are registered to play with 2010 increase in registered player numbers in 2016 one of our clubs and those who used to play.” 2011 and ultimately delivered a 7.2-per-cent uplift As well as steering its approach to email 2012 as its email targeting became increasingly marketing strategy, these insights were also 2013 segmented. used to support the work of the association’s 2014 Seire says: “As the national governing body football development department, 2015 of football for Finland, our focus is on the identifying which geographic areas were 0 whole country, but we also do segmentation over- and under-performing, and then -40,000 -30,000 -20,000 -10,000 10,000 20,000 30,000 40,000 50,000 on a regional basis, for all age groups and enabling knowledge sharing between the two both genders, and across multiple football groups and pinpointing the regions on which b Lapsed registrations b New registrations formats too. We believe in personalised additional resources should be targeted. content and segmenting, and we are now able to segment our fans and participants so Actions and outcomes Growth in player registrations, that we can work with specific user groups The initial analysis processes the FAF applied depending on objectives in hand.” enabled them to create a range of targeted 2014-16 The next stages in the programme are digital communications programmes that threefold: to expand the revenue focus achieved some extremely quick wins around 2014 4.4% from merchandise into ticket sales; add merchandising sales, had some strongly 2015 5.9% more complex metrics such as sentiment positive impacts on grassroots playing 2016 7.2% and intent to the data mix; move quickly

12.17 : SportBusiness International 44 DATA : FINNISH FOOTBALL

Continued from previous page...

Net gain/loss of registered Return to participation rates, 2003-16 players, 2002-15

2002 Last year of Returning year registration 14 2003 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2004 2001 5,728 233 17 74 56 42 36 25 20 18 9 12 13 7 2005 2002 3,831 1,376 661 440 305 207 189 138 141 125 89 77 73 2006 2003 3,407 1,338 659 476 281 241 215 151 148 123 109 77 2007 2004 3,730 1,318 770 487 320 249 209 183 141 118 107 2008 2005 3,585 1,440 843 487 359 321 240 199 172 116 2009 2006 3,837 1,429 847 576 438 331 228 183 142 2010 2007 3,772 1,434 937 565 395 296 257 181 2011 2008 4,088 1,681 966 618 438 415 248 2012 2009 4,276 1,729 1,025 736 579 354 2013 2010 4,313 1,750 1,079 879 514 2014 2011 3,991 1,830 1,239 672 2015 2012 4,166 2,044 1,048 4,811 1,826 0 2013 5,000 4,854 -5,000 10,000 15,000 20,000 25,000 2014

to building a 360-degree view of fans Seire explains: “Unknown data can be the process, improving and advancing and players that matches new ‘unknown’ useful in its own right – for example, cookie continuously.” data with existing information from FAF retargeting or providing general insight into And he adds: “It all begins with having the databases. customers’ interests and behaviour – but right people doing the right things – things Seire says: “Player registrations and when an unknown customer becomes known, that are different from a few years ago. As merchandise sales are easy to measure, but maybe through registering to use a website, we have resourced our analytics further, the when it comes to things like sentiment and purchasing something, signing up for a biggest challenge for us has been getting intent, we still have some work to do. That is newsletter etc, they become more valuable, hold of our data sets held in different part of the longer-term road map for us, but as you can then add email, SMS or mobile app systems across the organisation, to provide a there are a number of social analysis products push messages to your targeted marketing.” 360-degree view of our customer base. This out there that provide this measurement, so is always a challenge when implementing we will be looking into these in 2018. We’re Key learning points CRM – securing the data, cleaning it up, also yet to see an impact on ticket sales, but The FAF’s experience as a newcomer to and then maintaining that data hygiene. we’re still at the early stages of using data data-driven marketing communications But we’ve got a great team here and with in this way – watch this space, we’re moving offers three key lessons for other sports support from Uefa GROW, have continued to quickly as we see the tremendous benefits.” organisations with similar challenges progress our approach to using data.” And he adds: “In our immediate and goals: personalised messaging based The overall outcome of the process development stage, Winners will be on customer segmentation gets results; has been to make the FAF a data-driven supporting us as we look to leapfrog the meaningful segmentation requires the right organisation that takes an evidence-based traditional next step of a single customer data, not the most data; adopting the right approach to setting its strategic priorities view to combine a 360-degree view of the processes creates a virtuous circle in which and identifying the tactics best suited to fans and participants in our databases with successful outcomes unlock new investment achieving its prioritised goals. previously ‘unknown’ data, specifically from to enable more advanced segmentation that Seire says of the journey: “By analysing our anonymous website visitors.” yields better results again. our participation data, we were able to To do this, the analytics process will look to Seire sums up: “The key lesson we’d identify overall churn in registered players, identify ‘unknown’ website visitors by finding a like to share is that by engaging with your understand the cause, and implement a matching record for them within the customer stakeholders in the right manner with digital solution to encourage current players or Facebook profiles of people who are already personalised content, based on what to re-register at the appropriate time, with known to the organisation. Once the two we know about them, you can increase triggered reminders set as an automated profiles have been matched (for example, participation, revenue and engagement. follow-up. through the IP address of an unknown user However, you have to know your objectives, “We now use data analysis as a regular being used by a known user), they can be you must have a quantity of data, and you part of our process – we’re currently using merged into a single record that is far richer need to follow processes. Power BI by Microsoft – and with the new and more detailed in the historic information “There’s no short cut – but when you get it data management platform we’re designing, it holds, and which can be used to create more right, you can see results. This then enables envisage business intelligence playing a greater targeted communications again. you to secure more investment to continue role in our processes in future again.” Z

12.17 : SportBusiness International Take Your World Cup Coverage to the Next Level Unlock the power of World Cup data and content to drive fan engagement

POWER UP THE DIGITAL FAN EXPERIENCE Sportradar’s suite of World Cup products allow you to bring the action directly to your platforms. Presented in a responsive design, our digital products provide an optimal user experience across all devices.

Fully customisable, and with a variety of advertising options and odds integrations, you can choose a package to suit your individual needs, creating an unforgettable World Cup experience for soccer fans.

To find out more, visit worldcup.sportradar.com

WC_2018_210x265_EN.indd 1 24.11.17 11:53 46 SPORTBUSINESS EXECUTIVE OF THE YEAR

ALL HAIL THE RAINMAKERS | THE SPORTBUSINESS EXECUTIVES OF THE YEAR The judges have convened and the votes are in for the 2017 SportBusiness Executive of the Year Awards. Ben Cronin and Robin Jellis report on the 20 executives who have taken the industry by storm in 2017

12.17 : SportBusiness International SPORTBUSINESS EXECUTIVE OF THE YEAR 47

JUDGING PANEL

BEN CRONIN holder, sponsor and sportbiz space. Prior to SOPHIE MORRIS Ben Cronin is the founding Activative, Jeremy was consultancy Sophie Morris is a editor of SportBusiness director at the Xtreme Information media/ strategic marketing International and marketing agency and before that worked & sponsorship the chair of the for media consultancy Human Capital. consultant with SportBusiness Previous to working in marketing, sport Millharbour Executive of the and sponsorship, Jeremy was a Marketing. She is Year judging in the media, financial, legal and political a board director panel. He joined arenas. He holds master’s degrees in of the European the SportBusiness Group in 2016, having journalism (from Northwestern University, Sponsorship Association (ESA), a business previously edited a number of B2B publishing USA) and in philosophy (from Emmanuel ambassador (partnerships management) titles. Since joining the SportBusiness College, Cambridge University). for the School of Hard Knocks charity, a Group, he has overseen a redesign of the www.activative.co.uk member of the Rugby Football Union (RFU) SportBusiness International print publication Rugby Growth Committee, and is a judge and interviewed leading figures from the at the ESA Excellence Awards and the UK industry, including IAAF president Sebastian MARK DREYER Sponsorship Awards. She is also a guest Coe, Formula 1 commercial chief Sean Mark Dreyer is a lecturer at Loughborough University London Bratches and Wada president Sir Craig specialist in the and a speaker at international marketing and Reedie. growing sports sector sponsorship conferences. Sophie is a fellow in China and writes of the Chartered Institute of Marketing the weekly China (CIM) and has been a chartered marketer ROBIN JELLIS Digest newsletter since 2007. Robin Jellis is the for SportBusiness www.millharbourmarketing.com editor of TV Sports International. He is Markets, the leading based in Beijing from where he founded and publication on the edits China Sports Insider. Before founding RICHARD CLARKE TV sports rights the publication, he worked as a football Richard Clarke industry. TV Sports reporter for Sky Sports. is a digital sport Markets provides http://chinasportsinsider.com/ consultant, journalist analysis and hard- and blogger with to-get information on media-rights deals unique experience around the world. Robin began writing WILLIAM FIELD in football all for TV Sports Markets as a reporter in William Field is a over the world. February 2013, where he was responsible partner at Prospero, He ran editorial for coverage of media-rights markets in a sports and media strategy across digital, social media, TV Europe, while also reporting on sponsorship strategic advisory and print for English Premier League side deals for Sports Sponsorship Insider – the firm, which he Arsenal from 2002 to 2015 before moving SportBusiness Group publication focused on founded in 2009. to Colorado Rapids of MLS to run their the sponsorship industry. He was promoted He has over 25 content and communications departments. to senior reporter for TV Sports Markets in years’ experience in Since returning to England, he has acted December 2014, before being promoted to strategic management consulting, and was as a consultant for the Premier League and editor in June 2015. previously MD, Europe at Spectrum Strategy Uefa among others. He has been content Consultants. director for the Indonesia Football League William is an internationally-recognised throughout the 2017 season. He blogs on JEREMY EDWARDS expert in sports media and has advised digital content strategy at MrRichardClarke. Jeremy is a co- many of the world’s biggest rights-holders, com and hosts a podcast called “Sport – founder of sports broadcasters, service providers and Digital and Social” and “Football Indonesia”. and entertainment intermediaries. Across a wide range of sports www.mrrichardclarke.com marketing internationally he has advised on issues as intelligence and diverse as broadcast rights, digital strategies, This is the first year that companies have been insight provider sponsorship, technology, organisation, able to submit entries for the SportBusiness Activative, where he governance, public policy, fan-engagement, Executive of the Year Awards. The judges were is director of content and mergers & acquisitions. also invited to make their own suggestions for and consulting, and works across the rights- www.prosperostrategy.com the shortlist.

12.17 : SportBusiness International 48 SPORTBUSINESS EXECUTIVE OF THE YEAR

Continued from previous page...

LEWIS HANCOCK the team’s player signing announcements on JOANNA ADAMS Digital media editor, social media. Hancock was the social media Chief executive, Yeovil Town David putting some of the more generously England Netball 20 resourced Goliaths of other teams to shame 17 Growing your when his creativity earned the club 9.7 million Joanna Adams social media impressions during the summer period. helped England following might The sports journalism graduate first Netball to punch be relatively easy grabbed the attention when Yeovil announced above its weight in when you have the the transfer of midfielder Jake Gray through 2017 and overcome financial resources Snapchat’s new geolocation tool in June. the setback of of an English Another post, in which the club signed a 34-per-cent Premier League new centre forward Olufela Olomola through reduction in side but what if the Fifa 17 computer game, earned 1.1m funding. your media division impressions, 210,000 engagements and a Adult weekly numbers two 20.1-per-cent engagement rate. participation grew people and your budget is tiny? As player signing announcements became from 164,100 to 180,200 and the number of Lewis Hancock, digital media editor for the digital trend of the summer, Yeovil were new participants in the sport increased by League Two football club Yeovil Town, earns mentioned in the same breath as clubs like AS 44 per cent to 27,774. The growth was driven an entry on this year’s list for the ingenuity of Roma, Manchester United and Liverpool. by the Back to Netball campaign, which encourages people to return to the sport, and the Walking Netball programme, which is HEIDI BROWNING league. She joined from music-streaming designed to appeal to older or less fit players. Executive vice-president, company Pandora, which uses data on In a year when women’s sport started to NHL customer’s musical tastes to personalise their make a genuine impact across the board, 19 services and offer them invitations to events England Netball partnered with the England When Heidi that match their listening habits. and Wales Cricket Board (ECB) and England Browning joined Browning has placed a particular focus on Hockey to seize on the fact that the country the NHL in reaching out to female audiences, casual fans will host three consecutive women’s world October last year, and Millennials. The 100-year anniversary of cups in each respective sport between 2017 she was trumpeted the league provided her with the opportunity and 2019. The TeamUp project received a as the Silicon Valley to ramp up its social media output and boost when the Wembley National Stadium specialist brought drive engagement through the NHL app. Trust committed over £500,000 to promoting in to transform the The momentum was all heading in the right team sports to young girls in London. digital fortunes of direction in 2017 with Stanley Cup final Sophie Morris, director of Millharbour the 100-year-old ratings jumping 23 per cent year-on-year. Marketing, says: “Considering the cut in funding and that netball is not played in the Olympics, I think they have done an JAMES DELORENZO James DeLorenzo, who was brought into the incredible job with the sponsors and the TV Head of sports, company to head up its new sports division coverage they have secured, and the increased Amazon Video after the retail giant lost out in the race to participation numbers.” 18 acquire TNF rights in 2016. A new bogeyman On that earlier occasion, Amazon found came along to that its deep pockets weren’t enough to shake up the sports secure the most desirable sports content, rights market and having actually bid more than the eventual traditional TV winner, Twitter. The NFL opted to choose models in 2017. the social media site’s lower $14m bid In one of the because the platform would provide greater more significant reach. In landing the ATP and NFL deals developments of this year, DeLorenzo has clearly done a good the year, Amazon job in persuading both rights-holders that started to use its Amazon is a viable home for their content. great wealth to acquire sports content. The internet company fired another First, the ecommerce giant wrestled shot across the bows of the traditional TV the rights to stream NFL Thursday Night companies when it started to offer live Football (TNF) from Twitter. Then it outbid television channels – including Eurosport Sky for the exclusive rights to the ATP – through its Prime Video subscriptions World Tour in a five-year deal starting from service, allowing customers to subscribe to 2019. Both deals were feathers in the cap for channels without paying for a bundle.

12.17 : SportBusiness International SPORTBUSINESS EXECUTIVE OF THE YEAR 49

CHATRI SITYODTONG PETER HUTTON Chief executive/chairman, Chief executive, 16 ONE Championship 14 Eurosport 2017 was another landmark year in the Eurosport bucked relentless expansion of ONE Championship, the overall trend the pan-Asian promotion, in linear TV over and the incredible story of its founder, the course of chairman and CEO Chatri Sityodtong. 2017, increasing The entrepreneur with the rags-to-riches its viewership by backstory once again played a prominent role over 20 per cent as ONE launched its first event in and delivering and built up the profiles of fighters from similar increases countries like Myanmar and the to in advertising and expand the popularity of the MMA series. affiliate revenue. The distribution footprint for ONE CEO Peter Hutton was at the heart of Championship broadcast grew from 75 to efforts to invest in premium, local and 128 countries year-on-year and ratings in exclusive content to grow the channel’s key broadcast markets were up by 36 per subscriber base. cent. ONE Championship estimates that it An investment in free, short-form content registered 6.3 billion social media impressions – including the broadcaster’s memorable and one billion video views in 2017. ‘explainer’ series of videos – drove audiences This was also the year when ONE signed on social media. multi-market brand partnerships with As the sports channel rebranded as ‘The Havoline and GoDaddy, and attracted fresh home of the Olympics’ in preparation for investment from Sequoia India and Mission the Pyeongchang 2018 winter Games, it Holdings. Sityodtong said the Series C continued to secure deals to sub-licence its investments mean that the series has raised Olympic rights across Europe. The most more than $100m (€87m) in funding since its notable success was in Germany, where launch six years ago. Hutton managed to secure a monster deal with state broadcaster ARD/ZDF estimated to be worth around €230m ($262m) – after the parties had initially failed to agree a deal. ALEJANDRO AGAG “It’s not just one deal, it’s just the steady Chief executive, Since then, German manufacturers BMW, accumulation of deals that are very sensible,” Formula E Audi, Porsche and Mercedes have also says William Field of Prospero Strategy. “Just 15 announced plans to join the sport. for keeping the momentum going, especially Formula E might Agag says 2017 was the first year that for a complicated organisation, Hutton be only four years sponsors began to call Formula E rather deserves a lot of credit.” old, and yet to turn than the other way round – as was the case Further revenue streams were exploited a profit, but 2017 when clothing brand Hugo Boss decided to when Eurosport struck an agreement with was undoubtedly end its 30-year involvement in Formula One the Snap platform and became the first a watershed year and become the first apparel partner for the sports channel to appear on Amazon’s Prime for the electric electric series. Agag was personally involved Video subscription service. racing series and in negotiating the deal, flying out to meet The agreement with Amazon has its charismatic representatives from the brand. contributed to the growth of the Eurosport founder and The sport might still be making a loss, Player, which is now Europe’s largest sports chief executive, but revenues of roughly €100m for 2016-17 OTT service. Alejandro Agag. represent year-on-year growth of 30 per cent. A new long-term agreement with the The sport resoundingly proved its relevance At a recent event Agag said: “We would now Tour de France gave Eurosport exclusive to the as a series of car be comfortably in the black, but we have rights in 38 territories, after Hutton led the manufacturers announced that they were taken a decision to invest. If you ask if we are successful campaign to show every minute of leaving rival motor racing events to run teams breaking even in the championship, we are. the race live, replacing the previous limited in seasons five and six of Formula E. We have more money coming from sponsors coverage of the final hours. Audiences for In March, Agag announced that Formula than the cost of the championship. But then the 2017 Tour de France were up 10 per E had far surpassed its expectations by we are going to be throwing in 20, 30, 40 cent compared to 2016 and for the first time securing nine manufacturers for the 2018-19 million euros a year on marketing. We believe Eurosport won the Best Live Event gong season, having initially set a target of three now is the time to grow Formula E, not to for its coverage of the race at the TV Sports competing companies by its fifth campaign. take profit out of it.” Awards.

12.17 : SportBusiness International 50 SPORTBUSINESS EXECUTIVE OF THE YEAR

Continued from previous page...

YAO MING a path to reform. The former player was deal which looked decidedly more favourable President, Chinese Basketball arguably not the preferred choice of the to the agency than it did to the CBA. Where Association government, which meant he was exactly the the Chinese national team was concerned, 13 right person to shake the organisation out of Yao also effected immediate reform, splitting When the Chinese its bureaucratic torpor. the team into two parallel sides for the next Basketball In his first press conference Yao gave a two years to increase competition and give Association (CBA) sense of the scale of the challenge in Chinese more opportunities to younger players. voted to appoint basketball when he said: “There’s no ‘biggest Not all of the reforms will necessarily pay Houston Rockets problem’, because there are problems off, but Yao could hardly stand accused of legend Yao Ming everywhere.” letting the grass grow under his feet. The fact as its president Within two months of Yao’s appointment, that he has been supported in his actions by in February this the federation chose not to renew its NBA commissioner Adam Silver and David year, it set the comprehensive media-rights and marketing Shoemaker, CEO of NBA China, suggests he organisation on relationship with Infront Sports & Media – a is on the right track.

SIMON DENYER became fully operational in January and Chief executive, since then the company has struck long- Perform Group term broadcast deals in over 70 of the 80 12 competing countries in Fiba competitions. It’s been another In April, Perform agreed a deal with the standout year for NFL to market the American football league’s perennial award rights in over 100 territories around the winner Simon world, and to market the NFL’s premium Denyer and the digital subscription product, NFL Game Pass, Perform Group. outside the US and Europe. The iconoclastic “The way Perform’s DAZN service is fitting company kicked off into the broadcast landscape in a mature way its 10th anniversary is creditable,” says William Field, founder by starting work of Prospero Strategy. “They have struck on its $525m deal broadcaster deals and shared rights.” to manage the media output of the WTA In September the company also entered Tour and has produced and delivered over into a consortium with IMG that won 2,000 matches to the Tour’s broadcast the contract to advise Conmebol on the partners across 47 tournaments in 2017. The commercial rights for its club competitions company’s media partnership with Fiba also for the four-year cycle from 2019 to 2022.

RALPH STRAUS The strategy included the creation of unique Commercial director, brands for each horse-riding discipline FEI and the bringing of the federation’s sales 11 operation in-house. Ralph Straus, Straus’ efforts have been rewarded with commercial new partnerships with software company director at the SAP, pharmaceutical company Boehringer FEI – the world Ingelheim and, more recently, with riding governing body for arena design firm OTTO Sport. A renewal of horse sports – kick- the FEI’s global deal with Longines secured started a brand the future of the flagship FEI Nations Cup. In association with: new commercial Jeremy Edwards, director of content, strategy in 2017 Activative, says: “If you make changes and which has helped you bring in new commercial partners on the to secure four back of it, plus you retain existing partners, financially significant, sponsorship deals. that’s a positive sign.” The success in tying down these sponsors Additionally, the FEI’s digital engagement can be attributed to Straus’ reorganisation witnessed a 400-per-cent increase and the of FEI inventory, which was the upshot of federation now tops the Alexa Global Traffic extensive research into the audiences for Rankings for IF websites thanks to a 50-per- each of the federation’s different events. cent increase in traffic to the site.

12.17 : SportBusiness International SPORTBUSINESS EXECUTIVE OF THE YEAR 51

JOE TSAI You might have thought 2017 was the year Tsai reportedly bought the Nets with Alibaba when the Chinese government had put a his own money and it was not the only Vice-chairman, Alibaba brake on lavish overseas investments, but investment he made this year. A collegiate 10 having originally been born in , Tsai is lacrosse player at Yale, he also purchased the Alibaba vice- exempt from these restrictions. In fact, he is San Diego Seals, an expansion team in the chairman Joe Tsai closer to being a Westerner having attended National Lacrosse League (NLL), for $5m. came to prominence boarding school in the US and studied at Yale SportBusiness International’s China in October when before later taking on Canadian citizenship. correspondent, Mark Dreyer, says: “I think he acquired a Tsai’s fortune is estimated to be $9bn he’s the perfect sports team owner from a 49-per-cent stake in and much of it is reckoned to sit outside of fan’s point of view. He is very smart, he is the Brooklyn Nets China since Alibaba is listed in the US. The genuinely passionate about sport and he’s in a deal valuing wealth is largely built on his role in turning obviously stinking rich. He’s still new when the team at around the Alibaba into one of the most significant it comes to being a sports executive, but he’s $2.3bn. players in e-commerce. got a pretty good pedigree.”

TOM HARRISON Chief executive, England & Wales 8 Cricket Board (ECB) Tom Harrison was appointed as the new CEO of the England & Wales Cricket Board (ECB) in October 2014, but 2017 has been the year of reckoning for the former IMG media- rights salesman. This year he pushed through reform to introduce a new T20 competition from 2020 onward; finalised a significantly more valuable domestic TV rights deal with pay-television broadcaster Sky, which includes free-to-air coverage on public- service broadcaster the BBC; agreed several FERRAN SORIANO club announced a glut of new local, global significant sponsorship deals; and continued Chief executive, and regional partnerships. to push ahead with the ECB’s marketing and City Football Group The financial windfall can in part be grassroots campaigns. 9 attributed to a more data-led sponsorship Although the media reception to As the highest-ranking football executive in approach, both in terms of pitching to the addition of a new, city-based T20 our list, Ferran Soriano, chief executive of brands and also in creating highly engaging, competition has been mixed, ECB members English Premier League club Manchester targeted activation pieces with existing voted overwhelmingly in favour, with 38 of 41 City (City Football Group), wins the partners. But it also owes a lot to the club’s members voting for the change. Many cricket SportBusiness Football Executive of the Year increasingly global footprint. experts regarded the change as necessary Award. He will be presented with the award The club has also taken an innovative given the increasing popularity, and by the publication’s founding editor, Kevin approach across digital media striking a commercial success of Australia’s Big Bash Roberts, at the Globe Soccer conference in £10m partnership with Amazon to create League and the Indian Premier League. Dubai from December 27-28. a four-part documentary about the team. The new media-rights deals with Sky The award is recognition for a year in This year it also became the first EPL team and the BBC, worth a combined £1.1bn over which the City Football Group began to to reach one million followers on YouTube. five years from 2020 to 2024, represent an reap the benefits of the work that Soriano A 21-per-cent hike in revenue to £473.4m, increase of almost 180 per cent on the ECB’s has done in franchising the club’s brand. and a ranking of No.5 on the Forbes list of previous domestic TV deals and safeguard Success on the pitch delivered by fellow FC the most valuable football teams shows the future of the sport in the country. In May, Barcelona graduate has been that the club is forging a reputation as a Harrison told local media the ECB had “no met with success in the boardroom as the truly global sports property. ambition to be the richest, most irrelevant sport in this country”.

12.17 : SportBusiness International 52 SPORTBUSINESS EXECUTIVE OF THE YEAR

Continued from previous page...

BOBBY KOTICK JAMIE GRAHAM Chief executive, driving esports growth and fan engagement Chief executive, both locally and globally. Team Marketing 7 The judges were impressed with the 5 As CEO of way Kotick has elevated esports industry It’s been a busy 12 Activision standards by creating player-friendly league- months for Team Blizzard, Bobby wide mandates that require Overwatch Marketing and Kotick has built players to earn a minimum $50,000 salary, Jamie Graham, who and will oversee minimum one-year guaranteed contract, has led the agency the company’s health and retirement benefits, and other in its sales of media newly created benefits that are common in traditional and marketing Overwatch League, sports leagues. rights for the Uefa the first major “That part of esports desperately needs a Champions League global professional professional angle to it,” says SportBusiness and Europa League. esports league with International’s digital correspondent, Richard Team began city-based teams. After a slow start in which Clarke. “At the lower levels, there are huge selling rights for the next three-season it looked like it would struggle to persuade gambles that players will have to take and cycle, running from 2018-19 to 2020-21, last investors to stump up the $20m needed there are going to be some sad stories if December. The process was delayed as top to buy a team under the league’s franchise players aren’t looked after properly.” clubs threatened to launch a European Super model, Kotick has surpassed expectations In recent weeks global tech giants HP and League, meaning Team has a smaller window with the launch of the 12-team competition. Intel signed deals to be the first league-wide than usual in which to sell its rights. The league’s major investors read like a sponsors of Overwatch League. In the last The agency is targeting revenue of €3.2bn Who’s Who of the world of traditional sports, year Kotick has also overseen development per season from these rights, and its early including such luminaries as Robert Kraft, of Blizzard Arena Los Angeles, a dedicated deals indicate it will comfortably surpass and Stan Kroenke, as well as endemic gaming esports facility and global broadcast studio that mark. Team has struck TV deals in each powerhouses such as , OpTic Gaming, in Burbank, California, that will host the of the big five European markets, including , NRG and Immortals. inaugural season of Overwatch League, as a 100-per-cent increase in France, where The Overwatch League owners now hope well as other major the rights were secured by telco Altice, and to unlock untapped local revenue streams in esports initiatives, from game franchises almost trebled its media-rights earnings advertising, merchandising, sponsorships, including , StarCraft II, Heroes in the Middle East and North Africa in a concessions, ticket sales and amateur events, of the Storm, and . renewal with beIN Media Group. Research from TV Sports Markets indicates that Team has already secured at least LISA BORDERS and advertising campaigns around the men’s €2.25bn per season from media-rights deals President, league have delivered tangible results. alone. And despite the trend of switching WNBA Yet there are some respects in which more of its content exclusively to pay- 6 the women’s league is also acting as a television, it has guaranteed revenue of about Lisa Borders pathfinder for the more established men’s €160m per season in the new cycle from two has had a equivalent. WNBA teams, for instance, have sponsorship deals, with beer brand Heineken transformative been allowed to feature a sponsor logo on and carmaker Nissan. effect on the jerseys since 2009 – eight years before the fortunes of the men’s league – and in November the league WNBA since made a new patch available to sponsors and she became the sanctioned on-court sponsor logos for all league’s president games not televised by ESPN. Borders was in February 2016. also heavily involved in the relocation of the Attendances for San Antonio Stars franchise to Las Vegas, the 2016-17 season marking the first time that the city would were at their highest level for five years, have a professional basketball team. TV viewership on ESPN recorded double- Other firsts under Border’s stewardship digit growth and the league achieved record in 2017 included a deal with Twitter to show growth in audiences across social media. 20 games a season exclusively – the first When the league tipped off again in May this women’s sport to be live-streamed on the year, it was announced that 31 per cent more social media platform. So far, the games are games would feature on television this season registering an average of around one million versus the last, with 222 local broadcasts. unique viewers per game. Similarly, a deal Borders has been clever to partner with with FanDuel was the first time a women’s the NBA, the league’s “Big Brother” as she professional sports league had partnered with calls it, to grow the popularity of the WNBA, the fantasy sports gaming company.

12.17 : SportBusiness International THE TOP 10 SPORTS THE TOP 20 PROPERTIES THE TOP 20 PROPERTIES

the Uefa Champions League – in the top 11, worth 20 in 2018 with start of the Indian Premier League’s pack, in particular the English Premier League, CAGR, 1 percentage point more than the second The top 10 sports a combined $12.3bn. In addition the Uefa European new $510m-per-year, five-year global rights deal which has become the second-most valuable fastest growing property, ’s LaLiga (16.2 per Championship is a new entry as the twentieth with Star India. property and is worth 62 per cent of the NFL’s value cent). largest property. The NFL’s lead as the world’s most valuable in 2017. Five other properties have double-digit CAGR Overview Outside American sports and football, property is so great – it’s worth 15.5 per cent of the Three other properties each account for 7 per in the period: the German Bundesliga 1 (16.1 per The top 10 sports will generate a combined With the exception of football, US sports the properties that make the top 20 are from global value of sports media rights in 2017 – that cent or more of the global total – the Premier cent), the Premier League (14.0 per cent), the Uefa $43.6bn from media rights revenue in 2017, a dominate the top 10, with the country’s four big motorsport, golf and the multi-sport Olympic it won’t be threatened soon. However, the lead League, the NBA and the MLB. The top 10 are Champions League (11.9 per cent), the NFL (10.9 per 7.6-per-cent increase on 2016, and are forecast to professional sports and US college sport providing Games. Cricket is due to make its debut in the top has been diminished by growth among the chasing worth over four times the value of the 11th-20th cent) and MLB (10.6 per cent). top $50bn by 2021. five of the next seven positions. properties, which in turn are worth more than In the following section the top 10 properties are Nine of the 10 sports will generate over $1bn In addition, the most valuable property in sixth- Share of global market 2017 double the 21st-30th properties. looked at in more detail. The number in brackets in 2017, with cricket rising to that mark in 2018. ranked motorsport is the US car series Nascar, The NBA will be the fastest-growing in the 2013- next to each property headline indicates its position

Only six sports topped $1bn at the beginning of the which provides 46 per cent of the sport’s value. The Others NFL 18 period examined in this report, with 17.4 per cent in TVSM Global Report 2016. decade. top property in the ninth most valuable sport – golf 39.9% 15.5% The top 10 sports accounted for 93 per cent of – is the US-based PGA Tour, accounting for 54 per Top 20 properties CAGR 2013-18 global sports rights value in 2017, the same level cent of the sport’s total. In total, the US provides the as 2016. The total value of the top 10 is forecast leading property in seven of the top 10 sports. NBA 17.4% Bundesliga 1 to grow by an average of 7.1 per cent (compound Third-largest sport basketball grew by 32 per LaLiga 16.2% annual growth rate – CAGR) between 2013 to 2021. cent in 2017, due to the start of the current NBA 2.4% Global English Premier League 9.7% Bundesliga 1 16.1% Football is by far the most valuable sport, rights cycle in the 2016-17 season. Basketball is Olympics total = English Premier League 14.0% generating $18.8bn in 2017, a 9.9-per-cent increase forecast to be the fastest-growing among the top 10 2.5% $47.0bn Uefa Champions League 11.9% on 2016, the second fastest growing sport in the between 2013 and 2021 at 10.4 per cent CAGR, the NHL NBA top 10. Football generates 40 per cent of the global only sport with double-digit CAGR over the period. 2.5% 8.4% NFL 10.9% total and 158 per cent more than the second-largest This is due almost entirely to growth in the NBA Serie A MLB 10.6% sport, American football. rights fees – the property accounts for 93 per cent 3.3% MLB Nascar 7.5% Football is forecast to exceed $23.4bn in 2021 of the sport’s total. 7.3% Formula One 7.4% and will be worth more than treble the value of At the other end of the scale, ‘multi-sport events’ LaLiga 3.9% Uefa Champions League American football by that point. This reflects that – which covers the Olympic Games, Asian Games, 4.7% NHL 7.0% the value of American football is due to remain Commonwealth Games and other such events – is Source: TV Sports Markets Uefa European Championship 6.1% relatively similar as its leading broadcast contracts the slowest-growing among the top 10 sports at 1.6 Turkish Super Lig 5.7% run until 2021 and 2022. per cent CAGR between 2013 and 2021. Share of global market value 2017 – property groupings TVSM Serie A 5.5% GLOBAL REPORT Fifa World Cup 4.6% Top 10 sports by global media rights value 2017 ($m) Other properties 12.2% Ligue 1 3.7% Properties 41-50 20,000 18,823 Brazilian Série A 3.0% 2.9% 18,000 PGA Tour 0.6% 16,000

14,000 Properties 31-40 Olympics 0.6% 4.2% 12,000 2017 Global NCAA 0.0% 10,000 Properties 21-30 total = Source: TV Sports Markets 8,000 7,302 6.3% Properties 1-10 $47.0bn 60.1% 6,000 4,248 4,000 3,681 3,038 1,789 1,385 2,000 1,179 1,174 981 Properties 11-20

0 14.2% Football American Basketball Baseball US college Motorsport Ice hockey Golf Multi-sport Cricket football sport events

Source: TV Sports Markets Source: TV Sports Markets

TVSM GLOBAL REPORT 2017 4 TVSM GLOBAL REPORT 2017 17 TVSM GLOBAL REPORT 2017 18 TV Sports Markets GLOBAL REPORT 2017

Providing you with an unrivalled insight into sports media rights, this report uses data from TVSM Rights Tracker, the world’s most extensive and accurate database of sports media rights deals.

The report focuses on the top 10 sports, top 20 properties and the top 10 markets in the sports industry, giving you insight into current trends and what to look out for in 2018.

To find out more about the numbers that make these the biggest media rights deals of the year contact Tom McMullen, sales director, at:

[email protected] or +44 (0)207 265 4223

TVSM_Global_report_Ad.indd 1 29/11/2017 14:28 54 SPORTBUSINESS EXECUTIVE OF THE YEAR

Continued from previous page...

RAHUL JOHRI body in a cricket-mad country. IPSITA DASGUPTA Chief executive, Board of Control Rahul Johri was appointed as CEO of President, strategy & incubation, for Cricket in India (BCCI) the Board of Control for Cricket in India Star India 4 (BCCI) in April 2016, beginning the role 2 You might think selling Indian cricket rights, on June 1. His first task was to organise a The Pro Kabaddi especially in India, is not a difficult job. But tender for Indian Premier League media League (PKL), that would be to underestimate the political rights that guaranteed a transparent brainchild of pitfalls and the enormous pressure that process, rather than awarding rights to former cricket comes with leading the sport’s pre-eminent Sony Pictures Networks India in the pay- commentator television broadcaster’s window of exclusive Charu Sharma renegotiation. and industrialist Despite a legal challenge from the Anand Mahindra, Supreme Court into the governance of the has been the BCCI causing the postponement of the under-the-radar original tender process, global IPL media success story of rights were awarded to Star in September 2017, managing to appeal to both rural and in a $2.55bn deal from 2018 to 2022. This urban audiences in India in equal measure. represented an increase of more than 550 per Although the league was an instant success cent on the value of the previous deal with in its first season, drawing an estimated Sony, from 2008 to 2017. cumulative audience of 145 million, this The transparent process coaxed an year’s figures have been even more eye- enormous $600m bid from social media catching. Data from SMG Insight (see page platform Facebook for digital rights in the 18) indicates that cumulative audience grew Indian subcontinent – its biggest offer so far from 217 million in season four, to 423 million for media rights. in season five, the most recent instalment of The Star media-rights deal was preceded the competition. This represents a 94-per- by two sizeable sponsorship deals. In June, cent growth in reach. Chinese mobile manufacturer Vivo paid The larger audiences are the fruit of about $340m – a 554-per-cent increase – format changes and a new set of production for IPL title sponsorship rights, while the standards instigated since broadcaster Star BCCI in March agreed a lucrative deal with India bought a 76-per-cent stake in the PKL the Indian division of Chinese smartphone management company, Mashal Sports, in manufacturer Oppo to act as the main 2015. These included extending the season sponsor of India’s national team. to three months and increasing the number of franchises from eight to 12. Ipsita Dasgupta, president, strategy & TIM ZULAWSKI for sponsors – including a giant ‘ incubation, Star India, has been the engine Senior vice-president and chief Board’ circular LED video screen and 101- room from a profit-and-loss perspective commercial officer, AMBSE Group foot LED ‘Mega Column’ roof supports since founder Sharma began taking a less 3 – Zulawski deserves credit for getting such active role. By the time the an astonishing number of sponsorship deals The changes she has led and the increase cutting-edge over the line. in viewership for PKL were rewarded in May, Mercedes-Benz As AMBSE Group’s senior vice-president when Chinese mobile phone manufacturer Stadium, home of and chief commercial officer, Zulawski Vivo spent $50m (€43m) to become a title the Atlanta Falcons helped to strike partnerships with SunTrust, sponsor of the competition. According to (NFL) and Atlanta IBM, Equifax, Coca-Cola, NCR, Novelis, The Star India, the deal was the biggest title United (MLS) Home Depot, American Family Insurance, sponsorship deal for a non-cricket sport in opened in August SCANA Energy, AT&T, and Power. India. of this year, Tim He also helped negotiate the naming rights Another Star India executive told Zulawski and the deal for the Mercedes-Benz Stadium, which the Indian Live Mint news service that AMB Sport and runs for 27 years, the Children’s Healthcare sponsorship revenue for the Pro Kabaddi Entertainment team had secured nearly of Atlanta Training Ground, Atlanta United’s League had “risen 320 per cent and the $1bn in contractually obligated revenue practice facility and the ATLUTD kit. number of advertisers has jumped three-fold from sponsors. The figure was a new record Falcons executive vice-president and in its fifth year.” for a US stadium and far exceeds revenue chief financial officer Greg Beadles has said Star Sports India’s head of advertising commitments for any other new sports venue that some of the contractually obligated sales & executive VP, Anil Jayaraj said anywhere in the world. revenue streams from naming rights, other that the consideration of purchases for Although the design of the stadium sponsorship deals and suite sales have been sponsorships increased from 59 per cent to provides a rare digital storytelling canvas pledged toward re-paying the stadium debt. 71 per cent after season four.

12.17 : SportBusiness International SPORTBUSINESS EXECUTIVE OF THE YEAR 55

SPORTBUSINESS EXECUTIVE OF THE YEAR WME-IMG co-president Ioris Francini wins the award for a storming year in which he played a pivotal role in securing a three-year deal for the exclusive media rights for Serie A and a four-year contract to market the commercial rights for South American football federation Conmebol

Mayweather/Conor McGregor fight in Las “On the media-rights side of Vegas. With just three and half weeks to sell the fight, the agency smashed through every the business they were far and one of its higher-end targets to agree 63 deals away the outstanding large and arrangements, distributing across every single market on the planet. As the fight agency this year ” then introduced boxing fans and neophytes

to McGregor and the UFC, the agency was WILLIAM FIELD, a major beneficiary, having purchased the PROSPERO STRATEGY mixed martial arts property in 2016. 2017 was also the year the agency took the decision to rebrand its sports archive business to IMG Replay to reflect the FIVB to launch the new Volleyball Nations broadening scope of its services. The new League. The latter undertaking leverages IORIS FRANCINI platform includes the addition of daily sports the model of IMG’s successful reformatting Co-president, clips from sports news video agency SNTV of Euroleague basketball, which has seen WME-IMG and mixed martial arts content from the larger attendances and more competitive 1 UFC, with plans to expand with content from games. The wide-ranging optimisations and Ioris Francini was the undisputed driving entertainment and fashion properties from enhancements have resulted in larger TV force behind a storming year for IMG. the wider WME-IMG portfolio. audiences, better deals with sponsors and a Following his appointment to the position of Most recently, IMG partnered with the number of improved media-rights contracts. co-president WME-IMG in late 2016, he was personally involved in a number of headline- grabbing deals in 2017, especially for the media division of the global agency. “On the media-rights side of the business, they were far and away the outstanding large agency this year,” says William Field of Prospero Strategy. Among the most notable developments for IMG Media in 2017 were two landmark football deals: winning a four-year contract to market the commercial rights for South American football federation Conmebol in a joint venture with Perform, and securing a three-year deal for the exclusive global media rights for Italy’s Serie A. Francini was reportedly instrumental in the latter deal having delivered a powerful presentation to the heads of the Serie A clubs in his native Italian (see page 12-13). “Serie A was a huge deal for them,” says Robin Jellis, editor of sister title TV Sports Markets. “Ioris has personally lobbied the clubs for years and was the driving force behind them getting that contract.” Under Francini’s guidance, IMG also broke the sales world record for the international market for a boxing fight with the Floyd

12.17 : SportBusiness International

ROUND-UP 57

People THIS MONTH’S INDUSTRY MOVES

Seamus O’Brien is to become MP & Silva’s new president and group chief executive from January 1, with Jochen Lösch stepping aside into a senior consultant role. A management MOVE OF THE MONTH shake-up had been anticipated after the agency was dislodged earlier this year by rival IMG as the international rights-distribution partner of Italian football’s Serie A. O’Brien Ari Emanuel, established the World Sport Group agency and in 2014 was appointed to the role of deputy chief executive, chairman of the executive committee of Lagardère’s Sports and Entertainment division. Endeavor ITN Productions has appointed Sam Leadsom as head of host broadcasting and Mark Fulton as executive producer, athletics. Leadsom joins the company from Fox Sports Asia, the regional subsidiary of 21st Century Fox’s broadcast arm, Fox Networks Group, where he led production in Asia for four years. Fulton has 30 years’ experience as a producer and director, and has worked across a number of major sports events. Ari Emanuel and Patrick Whitesell are to serve as chief executive and executive The Formula One motor-racing championship has hired sports media industry veteran chairman of Endeavor, the new holding David Hill to advise on an overhaul of how the series is presented on television. Hill, formerly a senior executive at US media company 21st Century Fox, will look at F1’s company that will assume the full portfolio on-screen package, with changes reportedly to include the introduction of virtual of brands and services operated by the WME- advertisements from brands local to where the races are held. Hill previously worked with IMG agency. Formula One chief executive Chase Carey at Fox. The pair previously served as co-chief executives of WME-IMG. They formerly led Tennis Australia has appointed Jayne Hrdlicka, the chief executive of the Endeavor agency that merged with WMA the Jetstar Group airline, as its first female president and chair. Hrdlicka in 2009 to form William Morris Endeavor. was elected by the Tennis Australia board to succeed the retiring Chris WME-IMG was established following the Freeman and will serve until 2020. Hrdlicka, who was appointed to the merger of the William Morris Endeavor talent governing body’s board in January 2016, has served as the chief executive of agency and IMG, one of the sports industry’s Melbourne-based Jetstar, a subsidiary of Qantas, since 2012. most influential companies, in 2014. “WME-IMG represented a pivotal The Octagon sports marketing agency has appointed William Mao to its new Octagon moment in our company’s history, but it Media Rights Consulting business. Mao was previously head of college sports at video- does not accurately reflect the extent of our sharing website YouTube and also spent time as vice-president of digital for the MP & Silva diversity or indicate where we’re headed,” agency. Octagon launched the new venture in August, stating it would provide strategic Emanuel said. “In creating Endeavor, we now consultation to major domestic and international rights-holders, broadcasters, emerging have a that represents the distribution platforms and investors in the professional sports market. very definition of the word itself, constantly Online sports apparel and merchandise retailer Fanatics has appointed striving to push boundaries on behalf of our Steve Davis as the president of its international division in a move clients and owned properties.” designed to further the company’s global reach. Davis will report directly to The talent agency portion of Endeavor will Fanatics chief executive Doug Mack and will be tasked with leading Fanatics continue to operate as WME with no changes International’s growth. Davis and his team will begin building out worldwide in operation, while sports, events and media manufacturing and distribution infrastructure. platform will continue to operate as IMG. In August the agency confirmed Tim Crow is departing his role as chief executive of Synergy after 18 years with the that it had received a cash injection of sponsorship agency. Crow – who has steered the development of the agency, including its approximately $1bn (€850m) as part of an launch in the US two years ago – will “pursue new ventures” following his departure. “It has investment move led by the Pension been an immense privilege to lead Synergy and to have been part of Engine for the last 10 Plan Investment Board and the Government years,” Crow said. of Singapore Investment Fund. Ben Sutton Jr., the former president and chairman of the IMG College division of the IMG According to reports, the agency plans agency, has formed a new private equity company, Teall Investments. Sutton, who founded to use the funds to buy out a number of the ISP Sports agency in 1992, has formed the company with several ex-ISP Sports and IMG minority partners in the UFC, which WME- College executives. Teall has already acquired a significant stake in Alabama-based Tailgate IMG acquired for $4bn in July 2016. Guys and anticipates further growth through additional investments in the sports, media, Whitesell added: “Our business at its marketing and entertainment industries. core remains rooted in access, service and creativity. The one substantial difference Leaders has appointed David Cushnan to lead the content arm of its is that unlike 20 years ago, we’re now expanding international summit division. As head of content, Cushnan will sitting at the centre of an incredible global lead the content strategy for Leaders’ Sport Business Summit Series, which network. includes events in London, New York and Beijing. He will also play a role in “We have the relationships and the the development of programming and insight for the Leaders Performance platforms to help our clients and partners Institute. Cushnan joined Leaders from Nielsen Entertainment, where he extend their reach, and bring their creative served as editorial director, overseeing content across the company’s verticals. initiatives to life.” Z

12.17 : SportBusiness International 58 PEOPLE : HEADLINER

12.17 : SportBusiness International PEOPLE : HEADLINER 59

“Now is the beginning of healthy, stable and good development” ZHAO JUN, CEO, CHINA SPORTS MEDIA (CSM)

F CSM wants to renegotiate RMB8bn deal for Chinese Super League rights F Restrictions on star signings have damaged value of product F Company needs pay-TV market to grow to make the rights more profitable

BY BEN CRONIN number of foreign players and marquee from the market value we ask for more space signings in the CSL has damaged CSM’s and we ask for a longer term.” There are plenty of clues about the cooling ability to make a return on its investment The player restrictions are not the only of the Chinese sports media market at this and confirms that the company has withheld matter to have damaged CSM’s ability to year’s Sportel conference in Monaco. a 600 million-yuan payment to the league make a margin on its investment. The For a start, there is no exhibitor stand this while it tries to renegotiate the deal. problems faced by digital sports channel time around for LeSports – perhaps the most “It’s a really tough negotiation with the LeSports have contributed, amongst other obvious casualty of the once-burgeoning federation,” says Zhao. “Some of the new things, to a much less competitive sports sector’s overreaching of itself. Beyond that, policies from the federation related to rights market in China. only one company from the country, China the CSL – about the young players, about “I remember last year – really, time Sports Media (CSM), has decided to take out foreign players – we think will limit the CSL’s seems to go by very quickly,” she says, “we space at the show. development. had a very exciting deal with LeTV for two The overriding sense is of a market “In the short term, it could impact the years – RMB2.7bn [yuan] for two seasons – recalibrating itself after the excesses of the value and make the audiences and fans think but after one season the financial problems last two years and Zhao Jun, chief executive that the CSL maybe is not so popular and occurred.” of CSM, is in no mood to talk it back up in an attractive as before.” Zhao is reluctant to criticise LeSports interview that takes place at the company’s and blames cash flow problems at solitary stall. Raise the standard parent company LeEco for having a Zhao knows all about inflation and CSM’s acquisition of the CSL rights came at disproportionately large impact on its sports hype, having once been dubbed China’s a time when the Chinese government was division. She holds out the hope that a ‘eight-billion-dollar sister’. The soubriquet trying to kick-start sport in the country, and restructuring of the firm and a recent cash was a consequence of the RMB8bn to raise the standard of the national football injection will help it to continue as a going (€950m/$1.18bn) her agency paid for the team and leagues. concern, because CSM needs a healthy digital worldwide rights to the Chinese Super Although the overt top-level support has and pay-TV market to make its CSL rights League (CSL) from 2016 to 2020 at perhaps made way for more prohibitive restrictions profitable. the peak of the Chinese sports media market these days, Zhao is careful to couch her After the firm encountered problems, the in 2015. But she says she is uncomfortable criticisms in constructive terms. She says CSM agency looks increasingly dependent on with the nickname these days. does not want to take money back from the digital-streaming service PPTV, which owns The sense of modesty is consistent with CFA, but rather lengthen the term of the deal. the lion’s share of digital football rights in an acknowledgement that the company “The value we thought we could achieve the country. overpaid the Chinese Football Association in three or five years, we have to achieve it “What I want is for PPTV to be successful (CFA) for the rights to the competition, in a longer [timeframe] – maybe eight years in the pay-per-view [market] because PPTV although she argues that the fault lies with or 10 years,” she says. “The [transfer] policy has already collected almost all the key the rights-holder for having changed the can help football in China to improve young sports content: all of the Chinese football, all value proposition since the deal was signed. players, give chances to more young players, the major European football,” she says. “Now She thinks new directives limiting the so we agreed to that. The problem is that what we have to do is to help PPTV to be

12.17 : SportBusiness International 60 PEOPLE : HEADLINER

ZHAO JUN continued...

you can almost ignore,” Zhao says. “The most media-rights value comes from the internet platforms, so now what we have to do is to have the internet platforms create a new business model, to limit free TV, to have a balance.” The greatest obstacle to this is the CFA’s desire to generate as much exposure as possible for the CSL and the game of football in China – not to mention audiences who are accustomed to watching domestic football for free. “The problem for the CSL is that it is domestic – a domestic event – but for the local fans it’s a little bit difficult for them to accept that they have to pay to watch their local team,” she says. “[They] have already watched them for free for more than 20 years, 30 years, so that will also need time.”

Rampant piracy Another obstacle is the rampant piracy in the country, although Zhao suggests that some progress is being made. “It’s really a major headache,” she says. “We have already put five companies in court this season and maybe next month we will put another five companies in court. To be frank, it’s difficult.” The NBA’s partnership with digital broadcaster Tencent was said to herald a new confidence in the ability of the market to resist illegal streaming and to be indicative of a new mindset at central government level to protect intellectual property rights. Zhao agrees with the sentiment and thinks Tencent has carved out a sufficient degree of exclusivity from free-to-air broadcasters in the deal to begin to make the pay-TV CSM’s acquisition of the CSL rights came at a time when the Chinese government was trying to kick-start sport in the country (Getty Images) proposition work. In those cases where there is less exclusivity, she proposes differentiating digital content to improve the value for successful because even if we are a different for the reasons that I mentioned: if PPTV is subscribers to digital channels like PPTV. She company, if they can’t be successful, our successful, our business will be successful. says CSM is in a strong position to do this company cannot be successful either.” They don’t need to pay them a salary, so why given the investment it has made in on-site [should] they own us?” production capabilities and a 1,000 square- Clearer focus She says that making the pay-TV model metre production base from which it puts out The synergies between PPTV and CSM work for companies like PPTV in China the world feed for the CSL. were brought into even clearer focus earlier will be difficult given the number of games “We have to produce all of the league this year, when CSM chairman Li Yidong CSM is committed to make available across matches on site and deliver them to the suggested that PPTV’s parent company, the free-to-air national TV channel CCTV and 10 platforms,” she says. “We need to give new, retail giant Suning Holdings, was interested regional TV stations. different content to the internet platforms in acquiring up to a 56-per-cent stake in the One of the of attempts to with data, VR maybe and things like star-cam firm. renegotiate the deal with the CFA will be to [player-cam] content.” Zhao admits that talks took place between try to persuade the league to carve out some The production centre delivers content to the two companies, but that nothing came exclusivity for digital and pay-TV platforms 96 overseas platforms including Sky Sports of the deal. She says: “All of our team to keep rights fees high. and Fox Sports, in addition to pushing short- effectively work for PPTV, work for Suning, “The value that comes back from free TV form clips to different social media channels.

12.17 : SportBusiness International PEOPLE : HEADLINER 61

It also services an in-house app called Kball, which provides match clips and data analysis. Zhao explains that CSM is the official data partner to the CSL and the Kball product would really come into its own if the Chinese government decided to loosen restrictions around betting on the CSL. “CSL matches are not in the national lottery system. If this was open to the CSL, the fans could play money on the CSL and they [would] have to use our data analysis,” she says. When she explains that the agency also provides marketing services to pair sponsors with the league, teams and the various platforms it works with, it adds to the impression that CSM is striving to deliver an integrated end-to-end service. She holds out the hope that sponsorship revenue can help to compensate if there is a shortfall in pay-per-view revenues.

Improve the quality For the time being, it appears the focus at CSM is to reverse-engineer the CSL deal to make it more profitable and to improve the quality of the television product rather than to acquire more rights. “The most important thing for us is to make the CSL as perfect as possible,” she says. “Now we only supply 214 matches and some clips – to be frank, we’re not satisfied Chinese audiences are accustomed to watching domestic football for free on television (Getty Images) [with] the result now; we still have some space to make some more programmes and some self-made content. CURRICULUM VITAE “Secondly, we have to help PPTV to find the new business model, help them earn money and help our business [to] continue. Zhao Jun, CEO of China Sports Media (CSM) Considering these two points, I don’t think Zhao Jun became the CEO of China Sports Media (CSM) in 2011. Prior to that, she buying some new property is important.” worked for Beijing TV. Zhao points to the disappointing results Under her leadership, CSM has become one of the leading companies in the Chinese sports of the recent auction for Serie A rights in industry covering media rights, sports marketing and world feed production. Staff numbers have China as another example of the cooling of risen at CSM from no more than 30 in 2016 to over 80 this year. the market in the country and stresses that CSM has successively won media-rights tenders for the Chinese Super League (CSL), Team China, overseas rights-holders will have to adjust Chinese Football Association (CFA) Cup and CFA . In February this year CSM also secured their expectations accordingly. the exclusive rights for Asian Football Confederation (AFC) competitions. These include the AFC “If they want to continue to earn money Champions League, Fifa World Cup Qualifiers and AFC Asian Cup. CSM is also the long-term partner from the China market, I hope they can give of international competitions like the Bundesliga, J-League and A-League. more patience, more sincerity to the Chinese In addition to this, CSM is the official data partner of the Chinese Super League. Zhao Jun founded market,” she says. “Don’t think the Chinese a subsidiary at the end of 2016 to develop data-related products, one of which, the Kball app, are stupid, but with a lot of money. I think provides data analysis and match clips to fans. this period has already passed. The company’s sports marketing division aims to provide integrated, multi-platform “As an agency – as a 15-year-old agency – I communications and marketing services to clients. really experienced the beginning of the China Media Capital (CMC) became the majority shareholder of CSM in 2015. In April this year, China market and the summit of [it] and CMC acquired a minority shareholding in the Creative Artists Agency (CAA) and struck a tie-up the bubble going down. But what I can say is with the firm to create a new company called CAA China, which may facilitate more Sino-US co- that now is the beginning of healthy, stable productions and marketing. CMC was also part of the consortium that snapped up a 13-per-cent and good development, and long-term stake in the City Football Group, the owners of English Premier League club Manchester City. Z development.” Z

12.17 : SportBusiness International attracting more fansthanever before. ofeventingisrecruitingThe tripleequestriansport more and participants THE MAINEVENT|GLOBAL BOOST FOR EVENTING 12.17 International : SportBusiness 62

HEADLINER :JEROMEINASSOCIATION CHAMPAGNE WITHFEI

HEADLINERIN ASSOCIATION : JEROME CHAMPAGNE WITH FEI 63 63

ichael Jung is one of the dressage and cross-country, with the scores THE GROWTH OF EVENTING toughest competitors you’ll find from each counting towards an overall total. COMPETITION in any sport. Back in 2015, at a For the uninitiated, this is how most major eventing competition, eventing competitions work: first off, rider Mthis champion equestrian broke his ankle and horse compete in dressage – a series falling off his first horse but told no one of of prescribed balletic movements in an his injury before going on to win on a second arena, scored by a panel of judges. Then eventing647 events horse. A few days later he triumphed in the they negotiate the cross-country course, (55% increase since 2007) FEI European Championships. an outdoor rural circuit several miles long, This 35-year-old from Germany is the featuring around 30 fixed obstacles which perfect poster boy for the equestrian sport must all be jumped at speed. Finally there known as eventing. Combining brilliant is the jumping discipline, where horse and technique, meticulous attention to detail, an rider take on multiple fences within a ringed eventing5,696 riders registered with almost devil-may-care courage and, perhaps stadium. One particularly challenging aspect the FEI (19% increase since 2009) most importantly, a seemingly telepathic of eventing is that the same horse must relationship with the horses he rides, he is compete in all three disciplines. one of the most successful eventers of all time. In both team and individual eventing Global reach he has won gold medals in six European Overseen by equestrian sport’s international eventing9,000 horses registered Championships competitions, at two FEI governing body, the Fédération Équestre with the FEI World Equestrian Games™, and in three Internationale (FEI), eventing takes place Olympic Games competitions. at almost 650 venues around the world, His chosen sport is arguably the most with well established events in the US, adrenalin-fuelled, courageous and diverse Australia, the UK, France and Ireland. The equestrian event there is. Often compared to FEI counts nearly 5,700 eventing riders of the world’s14% 37 million active triathlon, it sees riders and horses competing among its registered members, and 9,000 riders participate in eventing (either as individuals or in national teams) horses – mainly thoroughbreds or part- across the three disciplines of jumping, thoroughbreds.

of all equestrian54% fans have an interest in eventing

97

75 72

46 39

UK USA France Ireland Australia

The top five nations organising eventing competitions by number of events

12.17 : SportBusiness International 64 HEADLINERIN ASSOCIATION : JEROME WITH CHAMPAGNE FEI

THE DEMOGRAPHICS OF As spectators watch the EVENTING FANS competitors zip by at top speed, they experience the sport m with all of their senses. fans407 across 15 key markets The course set-up often allows them to view both horse and

45% rider from very close quarters... This is equestrian sport at its 55% most intense

The highest-profile stage for the sport is of course the Olympic Games. Outside of this there is eventing at the FEI World Equestrian • Male • Female Games™ (the ultimate equestrian held every four years and alternating with the Olympic Games), plus many other FEI events, including the European Championships and other regional of eventing55% fans are female championships. A team series of eventing that has made huge strides in recent years is the FEI Nations Cup™ Eventing. Comprising nine events, staged across Europe and USA of fans72% travel in groups of between March and October every year, it four or more started in 2012. The most recent champions were Germany. Of the three eventing disciplines, it is often the cross-country that fans love the most. Not surprising, really, when you travel to events64% in family groups consider the non-stop action on offer. In fact you really ought to call it an adrenalin sport. At the elite level, each rider-and-horse team must face 30 fences or more, as well as other obstacles such as ponds, streams, banks and the horses sweat as they exert themselves. ditches, during their timed gallop around the This is equestrian sport at its most intense. of all equestrian fans have an 54% course. Both team members must be skilful, One of eventing’s rising stars is 28-year- interest in eventing athletic and fearlessly brave, with penalties old Alex Hua Tian, a British-born and British- added for missing or refusing any obstacle. educated rider who competes for China by As spectators watch the competitors zip dint of his Chinese father. In 2008, at the past at top speed, they experience the sport age of 18, he became the youngest eventer to with all of their senses. The course set-up compete at the Oympics, and China’s first of eventing70% fans have often allows them to view both horse and ever equestrian Olympian. “middle to high incomes” rider from very close quarters, even as the “For me, it’s the adrenalin of going fast, athletes launch themselves over the fences. the danger, the pressure, the intimidation Get too close and they risk being spattered of the cross-country course. That, for me, by mud flicked up by the horses’ hooves. is why I love the sport,” he explained in Meanwhile the drumming of those same an excellent documentary by Tenzinsedon average2-3 number of cars per hooves and the cheering of other fans fills (vimeo.com/101856366). household of eventing fans the air. Fans are even close enough to smell Hua Tian stresses how much of a team

12.17 : SportBusiness International HEADLINERIN ASSOCIATION : JEROME CHAMPAGNE WITH FEI 65 65

sponsors. “The sport is a unique challenge, demanding skill, courage and versatility across a range of disciplines,” says Ralph Straus, FEI Commercial Director. “Large, passionate crowds are drawn to the sport’s beautiful, outdoor, natural settings where the drama is played out at close quarters between elite athletes. The promise of a fun, family day out guarantees a vibrant, friendly atmosphere.”

Versatility The federation points out how versatile eventing is, with its eclectic mix of dressage, cross-county and jumping offering “changes of pace from serene to dramatic”. Then there are the brave athletes,” they add, “adrenalin- fuelled, courageous and versatile. Plus the diverse crowds – a rich mix of personalities of all ages.” These crowds have been growing in size in recent years. FEI research shows that there are 407 million eventing fans globally. It’s a very popular sport for families, with 64 per cent of fans travelling to events in family groups. 70 per cent of spectators describe themselves as “middle- to high-income” earners. And, unusually for an adrenalin sport, more fans (55 per cent) are women than men. One reason for this is the fact that FEI disciplines, including eventing, are some of the very few sports where both genders compete alongside each other on the same stage. There are no single-sex categories in this sport. To understand just how much adrenalin is involved, spectators really must attend an eventing competition. The next best thing sport eventing is, with communication horse, he doesn’t learn how to jump these big is to hear about it from a top rider. In the between the human athlete and the equine fences in one day. It takes many, many many Tenzinsedon documentary, Hua Tian is very athlete absolutely crucial. “When you’re years to build up to the Olympic level.” articulate when he describes the excitement talking with people, scientifically, something Given the dramatic nature of the sport, the of his sport, especially the cross-country like 70 per cent of the conversation is body FEI has taken great pains in recent years to discipline. language. With a horse it’s 100 per cent body ensure the safety of both riders and horses. “In cross-country you’re always on the language. But you can still communicate by Some fences feature what is known as edge of control,” he says. “It’s up to you as body language.” frangible pins which allow them to collapse the rider to make the decision on how fast “Horses have their own brains and they in a controlled way if struck by the horses’ you’re going to go. It’s always a judgement can think for themselves,” he continues. legs or body. Horses wear leg protection and that’s where the adrenalin comes in. “They can do things against you or they can while riders wear safety vests and helmets. That’s why it’s so exciting. That’s why, when misunderstand what you’re asking them to Some riders even use air-bag vests which you’ve finished the cross-country, you always do. They have emotions, they get nervous, automatically inflate in the case of a fall. have this massive buzz and big smile on your they get tense, they get frightened. All these The FEI are aware of the enormous face because you’ve made the right decisions, things human athletes have, equine athletes popularity of all three disciplines of eventing, you’ve taken some risks, and those risks have have as well. It’s all about partnership. The and the opportunities this gives to potential paid off.” Z

12.17 : SportBusiness International 66 NEWS ROUND-UP

Event bidding

1. FRANCE TRIUMPHS OVER TO LAND 2023 RUGBY WORLD CUP France is set to host major sporting events in consecutive years after it landed the rights to the 2023 Rugby World Cup, despite World Rugby having earlier recommended South Africa’s bid. The 2023 World Cup will precede ’ staging of the 2024 summer Olympic and Paralympic Games. Rugby union’s world governing body, World Rugby, made the announcement in London with the decision going against the recommendation made by the Rugby World Cup Limited Board in October. World Rugby chairman Bill Beaumont said: “They (France) presented a very strong and comprehensive bid, which clearly resonated with the Council. There was very little to choose between the candidates and this was reflected in the independently-audited evaluation report.”

2. FOUR CITIES LODGE BIDS FOR WTA FINALS Cities in England, the Czech Republic, Russia and China have submitted bids to replace Singapore as host of the Women’s Tennis Association’s season-ending Finals event. WTA chief executive Steve Simon said that the body has received bids from Manchester, Prague, St Petersburg and Shenzhen for hosting rights to the tournament, adding is to host an event next October (Ezra Shaw/Getty Images) that two other cities have declared an interest in staging the event but have not The Canadian cities of Edmonton, 5. DEADLINE EXTENDED FOR 2022 submitted bids. Montreal, and Vancouver are in COMMONWEALTH GAMES Singapore’s five-year hosting rights contention, while Mexico’s Guadalajara, The Commonwealth Games Federation has deal with the WTA expires after the 2018 Monterrey and Mexico City are also on the extended the bidding deadline for the 2022 tournament. A decision on the host city from list. Commonwealth Games after the sole bid, 2019 onward is expected to be made in April “As we move to the next stage of the bid from , by the original deadline next year, with Singapore in contention to process, we’re even more confident we have of the end of September was deemed to be retain the rights. everything needed to deliver the largest, “not fully compliant.” “We have said all along that we’d be very most compelling Fifa World Cup in history,” Kuala Lumpur in Malaysia, Victoria in interested in discussing an extension,” Simon United Bid Committee chairman Sunil Canada and a possible Australian bid were said, according to Singaporean newspaper Gulati said. rumoured to be in the running before the The Straits Times. initial deadline expired. However, although 4. X GAMES TO LAND IN SYDNEY the CGF did not elaborate on what the 3. UNITED 2026 WORLD CUP The X Games will stage an event in Australia problem or problems may be surrounding BID CUTS FURTHER CITIES for the first time next year after Seven West Birmingham’s bid, the door was left ajar The committee behind the joint bid from Media struck an agreement to bring the for late entrants to the race ahead of the , Canada and Mexico for action sports series to Sydney. November 30. the 2026 edition of football’s Fifa World Cup Seven reached the deal with international CGF president Louise Martin said: has narrowed down the list of potential host sports broadcaster ESPN, which operates “We have carefully reviewed the bids and cities as it moves to the next stage of the the X Games, to line up the event at Sydney updates received as part of the ongoing 2022 application process. Olympic Park from October 19-21, 2018. candidate city process and have agreed – Some 25 US cities remain, but Birmingham, The event, which will feature skateboard, noting the challenging timescales and no Cleveland, Indianapolis, Jacksonville, New BMX and Moto X competitions, will be fully compliant bid – that further time should Orleans, Pittsburgh and San Antonio have produced by Seven and supported by a music be given to all interested parties to enable the been cut, as have Canada’s Ottawa and Regina. and arts festival. submission of fully compliant proposals.” Z

12.17 : SportBusiness International EVENT BIDDING : WINTER OLYMPICS 67

WINTER OF DISCONTENT | IOC HOPES CANDIDATURE PROCESS REBOOT WILL ATTRACT MORE 2026 GAMES BIDS

F Some argue winter Games is still paying price for expensive legacy of Sochi Olympics F IOC says it is having “healthy conversations” with prospective hosts F New bidding framework extends invitation phase and shortens formal candidature process

The IOC has altered its candidature procedure for the winter Olympics in an effort to slash costs and encourage more entries (Getty Images)

BY MARK BISSON on the horizon, the winter Games brand is possibility of bidding for the Games.” facing its biggest test. Poor ticket sales and the When Innsbruck’s bid to stage the 2026 risis, what crisis? So goes the question of Russia’s participation are casting winter Olympics was rejected in a referendum refrain in the world of sports a shadow over February’s South Korean in October, it served as another warning sign administration when serious showpiece. In the wake of a lacklustre bidding of what the IOC is up against – selling the problems escalate or a scandal race for the 2022 Games, when Beijing beat Games to a population concerned about the Cdestroys credibility. Disgraced former Fifa Almaty to the hosting rights after a handful of return on investment. Innsbruck’s defeat president was often heard cities quit the contest, the IOC has rebooted came before the IOC’s revamped bidding issuing such denials during the scandal- its candidature procedure in an effort to slash plans were fully formed. tarred final years of his reign. costs and encourage more entries. “Undoubtedly, it is disappointing to see The International Olympic Committee “It is alarmist and headline-grabbing some cities and regions have a negative (IOC) has faced different pressures recently. to say there is a crisis with the winter outcome in referendums, especially in places The image of the Olympics has taken a knock Olympics,” Sarah Lewis, secretary general of where there are strong traditions for winter from state-sponsored Russian doping, the Rio the International Ski Federation (FIS), tells sports, with major events carried out there 2016 vote-buying scandal and the failure of its SportBusiness International. “There is strong regularly,” Lewis says. “A large number of bidding model to deliver competitive races for interest from a number of cities, regions and successful Olympic Games didn’t carry out the 2022 and 2024 Games. nations interested in the 2026 Games, from referendums, including London.” Now, with the Pyeongchang 2018 Olympics three continents that are looking into the But it’s a long road ahead for Calgary, Sion,

12.17 : SportBusiness International 68 EVENT BIDDING : WINTER OLYMPICS

Continued from previous page...

“It is alarmist and headline-grabbing to say there is a crisis with the winter Olympics. There is strong interest from a number of cities, regions and nations”

SARAH LEWIS, SECRETARY GENERAL, INTERNATIONAL SKI FEDERATION (FIS)

Stockholm, Sapporo, the Norwegian county of Telemark and the US, all of whom are considering 2026 bids. The IOC is still “paying the price of the Sochi legacy”, according to Michael Payne, the IOC’s former marketing director. “The big mistake with Sochi was that the IOC at the time didn’t immediately step in and aggressively correct the media communications coming from Sochi relative to the cost of these Games,” he says of the $51bn (€44bn) price tag associated with the 2014 Olympics. The figure combines investments in building the Games from scratch and in the wider regeneration of the region. While the Sochi Olympics was a success on many fronts, he believes the image of a Games built at huge expense has endured, deterring potential bid cities across Europe. “Combine that with the new social media dynamic [fuelling opposition] and the IOC The cost of the Sochi Games in 2014 is thought to have deterred potential bids from other European cities (Getty Images) is scrambling to get the message properly understood and any acknowledgement that it’s not one size fits all,” Payne adds. and we have to help them make the case September 2019. Amid increasing public Never short of optimism, Christophe Dubi, to the public and the authorities that the and media scrutiny of the retooled bidding the IOC’s Olympic Games executive director, Games are worth investing in,” she says. process, Dubi promises a procedure that says the shake-up of the 2026 Olympic is “lighter, more compact, with additional bid model will pay dividends, claiming the Bidding changes added value from the IOC”. collapse of the Innsbruck campaign has not The IOC approved a new candidature process “We learn from the past by adapting damaged the winter Games brand. for the 2026 Olympics at its congress in Lima ourselves. We bring a lot of expertise now “I’m confident. We are having very healthy in September, under efforts to address what into the first stages of the project in order conversations,” he says, adding that 2026 IOC president Thomas Bach labelled “a new to co-construct venue propositions from the contenders “have started to do some heavy political dynamic and the IOC’s failure to cities,” he says, underscoring the potential to groundwork. Now it is a matter of engaging adequately respond to them” – a nod to the save hundreds of millions of dollars in Games with them and experts in the next weeks and public’s increasing scepticism about the cost hosting. Using existing venues “in or outside months.” of the Olympics and a bidding model that had a region” and cutting capital investment on Dubi notes the cities’ collective depth of “become too expensive and too onerous”. venues “without a clear legacy” are part of experience in staging major The IOC and its team of experts are taking the conversation with bid cities. events, such as World Cups or World a more proactive role in collaborating with Asked if it is the actual cost of Olympic Championships. cities considering bids to assist in bringing hosting that is triggering referendums and He points out that the IOC’s changes to more sustainable and cost-efficient projects. deterring bid cities, he says that the reduction the 2026 bidding procedure could not be The invitation phase is extended to a full of investments and the balancing of organising blamed for Innsbruck’s downfall. However, year to give NOCs and cities more time to committee budgets “is what you need if you he admits that the blow to the city’s Olympic develop proposals. The formal candidature want to submit a project to your population”. ambitions “shows that we have to continue phase has been cut from two years to one, He adds: “The candidature process is the our efforts… to take the right measures to to reduce costs. The aim is to weed out the first step, then they have to demonstrate that facilitate organisation of the Games and weaker cities early and avoid a repeat of the the Games organisation and delivery will to continue to work on communicating drop-outs that blemished the 2022 winter represent a plus for the city and region.” these measures, so that they are widely Games contest. When the dialogue stage understood.” ends in October 2018, the IOC will select New life cycle World Curling president Kate Caithness the cities for the next phase, with only one Dubi says the IOC intends to “look into agrees. “There are cities interested in hosting bid dossier necessary and a vote due in every single line of the organising committee

12.17 : SportBusiness International EVENT BIDDING : WINTER OLYMPICS 69

budget”. Changes to the life cycle of an THAT’S ENTERTAINMENT Olympic organising committee are also Extra: coming – a clear separation between the first three years, when some venues are built and commercial and engagement programmes For all the concerns surrounding the sporting action” lies in wait. “You will see sports get underway, and the next four, when key Pyeongchang Olympics, one thing is for sure – presented in a way they have never been presented staff are employed to plan test events and its innovative sports programme, featuring six before,” he says. “It will look stunning and for the Games delivery. He adds that delaying some new events, is set to thrill crowds and TV viewers. pure Olympic brand it will deliver, no question.” appointments at this stage will save on Making their debut are snowboard big air (men’s Lewis says that the FIS pushed for the IOC workforce costs. and women’s), speed skating mass start (men’s to embrace its events that “resonate with the Payne says that the Olympic bidding and women’s), curling mixed doubles and the younger generation”. She claims that “snowboard process “has got to be an ongoing evolving Alpine team event. big air and the Alpine team event demonstrate process” to keep step with changing political It’s all part of the IOC’s plan to grow and this perfectly, as both are innovative and fan realities and the role and influence of engage with younger winter sport audiences favourites that bring our sport to a much wider traditional and social media in shaping in Asia and globally. “We have to have the best audience”. perceptions of the Olympics. possible product mix. I think we definitely do. Curling’s profile will also get a boost, says “People haven’t out of love with the You have formats that are really exciting and will Caithness, thanks to the mixed doubles, which Olympics. Look at Rio – the actual global appeal,” says Dubi, adding that he is confident the is “a faster-paced version of curling, where the audience numbers set new records. That’s TV rights-holders and sponsors will do a great score can change hands often and results can be why broadcasters are continuing to pay top job presenting the sports. less predictable”. She adds: “This takes the drama dollar,” he says. Despite criticism of Pyeongchang 2018’s in curling to another level, which we think fans “But the journey to the Games is ever preparations, Payne says an “incredible visual new to curling will enjoy.” Z under a bigger magnifying glass. Issues that 10 or 15 years ago were non-consequential are now at the forefront. And the IOC is having of selling the advantages of the Games,” successful in completely redefining the image to come to terms with how to deal with it.” she says. “From a curling point of view, the and brand of Korea.” He says the IOC requires “far more venues in Torino, Vancouver and Sochi have Dubi dismisses talk of an ailing winter aggressive, agile communications provided a great legacy for the sport. We Games brand, but he agrees that Pyeongchang management” and is making major steps in need to be clear on what is ‘required’ to host 2018 chiefs have plenty of work ahead to that direction. the Games and what is ‘nice to have’. We will deliver a successful Games, starting with “It’s not a question of just addressing the encourage the Olympic Games organising shifting tickets. “We trust them – they know technicalities of bidding. The other part is committees to seek early help and support their market,” he says. “They have made winning the hearts and minds of the public from the IFs, which could lead to savings in convincing arguments based on previous as to properly understanding what this both time and resources.” event organisation that Koreans buy late.” adventure is about. In the current social The IOC will partly measure the success of media environment, it’s exceedingly easy for Political tensions the 2018 Olympics by the size of crowds. “We that debate to be hijacked by one or another Rising political tensions with North Korea need to have full stadia. This is incredibly cause, for example Brexit or Catalonia. All and slow ticket sales are dominating the important,” Dubi says. “From a sports governments are on the back foot,” he adds. build-up to the 2018 Games. On October 24 standpoint, there is no doubt we have a Certainly, the international winter sports Games organisers revealed that just 31.9 per superb value proposition.” federations appear to be satisfied with the cent of the 1.1 million tickets had been sold So what can Pyeongchang 2018 do for the 2026 bidding plans. and only 9,401 (4.3 per cent) of Paralympics winter Olympic brand? Lewis says that the FIS and all the winter tickets had been snapped up. The Olympic “The vision of New Horizons [the IFs contributed to the reforms, and the IOC torch’s journey around Korea will inevitably Pyeongchang organising committee’s is continuing to harness their major event lift sales, but the winter Olympics brand is blueprint for winter sports in the region] is expertise to help bidding committees and taking a hit again as the IOC seeks to unlock very important,” Dubi says. “We are opening a encourage flexibility in all areas of planning winter sports fever in Asia ahead of the new region to winter sport, developing sports in order to trim costs. Beijing 2022 edition. for Korea and Asia in general. What we expect “Managing costs in an increasingly Payne is baffled at what he claims is South is that this really materialises, because it competitive calendar is impacting the entire Korea’s “failure to embrace the opportunity means the Games has this power to generate sports world. Working to ensure that bidding that they went flat out to win”. At times, a passion, inspiration for people to practise and hosting costs be kept to a minimum is a he says, the government has shown a total winter sport – youngsters in particular. win-win for all parties,” she says, adding that lack of interest and has reneged on key “If that works, it’s incredibly powerful for savings can be invested instead into sports bid promises, such as transport and hotel the winter sports and the Olympic brand,” and their wider development. commitments. “The biggest loser on this is he says, noting already that the first flush of Caithness believes there is still room for going to be ‘brand Korea’,” says Payne, who sponsors for Beijing 2022 demonstrates that improvement in communicating the right lived in the country in the early 1980s to “there is a huge appetite in China for the message to potential bid cities and their work on the Seoul Olympics project. “It’s winter Games and we are incredibly satisfied populations. “We all need to do a better job surprising, because the ‘88 Olympics was so with that”. Z

12.17 : SportBusiness International 6070 HEADLINERIN ASSOCIATION : JEROME WITH CHAMPAGNE SPORT IN ABU DHABI

FOOTBALL FIRST | WELCOME TO SOCCER CENTRAL Abu Dhabi will take centre stage as two of the world’s top football competitions, the FIFA Club World Cup UAE 2017-2018 and AFC Asian Cup UAE 2019, come to town. Alexis Dijksterhuis of Abu Dhabi-based ticketing and events company FLASH Entertainment is relishing the prospect.

Q: How did Abu Dhabi secure the FIFA Club Our infrastructure and our experience as a to touchdown back in your home country – World Cup for the second time? host city are now best practice for the region unforgettable. AD: Abu Dhabi first hosted the FIFA Club and amongst the best in the world, and that There is no doubt in my mind that the World Cup from 2009-2010. We’re almost a certainly went a long way to securing the bid. FIFA Club World Cup UAE 2017-2018 will be decade on from that and a lot has changed. The perception of the region from the truly world-class. FLASH itself only began operating in 2008, international community has also shifted when the events industry in the UAE was dramatically since 2009, with the UAE now Q: What does hosting the competition mean very much unexplored territory. At that firmly established as a tourism hub. The idea to Abu Dhabi economically and socially? time so many of the basic foundations for of travelling to Abu Dhabi for leisure is no AD: In the next three years, we are bringing live events weren’t established. Security, longer a foreign concept, and part of what two of the world’s most significant football F+B, ticketing systems, an understanding makes it such a strong candidate for a host events to the UAE in the FIFA Club World of sponsorship, health and safety codes – city is its hospitality. At FLASH, we know the Cup UAE 2017-2018 and the AFC Asian Cup all of this had to be built from the ground value of this and we work very closely with UAE 2019. The eyes of the sporting world up and FLASH has played a central role the local hotel, travel and leisure sectors to will be on Abu Dhabi and naturally, this in that. Abu Dhabi’s offering is far more make the whole Abu Dhabi experience – from will have a substantial economic impact. sophisticated than it was eight years ago. the moment you book your seat on the plane The world’s fans will travel with their clubs

12.17 : SportBusiness International IN ASSOCIATIONHEADLINER WITH SPORT: JEROME IN CHAMPAGNEABU DHABI 61 71

to support them in our stadiums, and we Q: What was learned from hosting in 2009? expect a significant amount of inbound AD: That was a first for Abu Dhabi – and tourism across the tournaments. This has for our own team in 2010 – hosting an a direct impact on our airlines, our hotels, international football event of that scale. It our hospitality industry. Matches will be was new territory for the stadiums, with a broadcast across all continents of the world, lot of things to take into consideration and, with significant revenues from broadcasting of course, everything had to meet FIFA’s rights expected. exacting standards. Hosting major global sporting events is The event industry was in its infancy in a key component of Abu Dhabi’s vision of 2009 and hosting such an important global establishing the Emirate as a world-class leisure football tournament was a steep learning and entertainment hub. But for your average curve, even in the single year between the football fan in Abu Dhabi, it’s a chance to see 2009 and 2010 tournaments, which really ’s famous left foot, or Cristiano pushed the industry forward and laid the Ronaldo putting the ball in the back of the net. foundations for many of the events that Those are memories that will last a lifetime. came after. We’re always looking forward and each new event allows us to build upon Q: How does hosting FIFA Club World Cup our expertise and continue to grow our UAE fit into Abu Dhabi’s strategy for sport international portfolio. and tourism? AD: For Abu Dhabi, sport and tourism go Q: What are your expectations for the hand in hand. Earlier this year, Abu Dhabi impact of the tournament? Sports Council (ADSC) unveiled a new AD: Hosting the FIFA Club World Cup UAE initiative, Sport in Abu Dhabi, to encourage is another chance for Abu Dhabi to showcase more visitors to train, watch and compete in its credentials as a host city, welcome visitors the Emirate. FLASH has a central role to play and so it allows us to strengthen our reach from all over the world to experience our in this and we are working in partnership into markets around the world both from a world-class hospitality, and encourage more with ADSC to deliver the FIFA Club World sporting and tourism perspective. visitors to train, watch and compete in the Cup UAE 2017-2018. Emirate. With the AFC Asian Cup following Successful sporting events like the Abu Q: What facilities will be used ? in 2019, the eyes of the sporting world will Dhabi Tour cycling race and the Abu Dhabi AD: The tournament will be played in Hazza remain on Abu Dhabi as the tournaments HSBC Championship already make up a Bin Zayed Stadium, a newly constructed state play out in our stadiums and fans celebrate strong portfolio that bring international of art football stadium in Al Ain, and the around our cities. talent to the region and attract visitors 40,000+ capacity Zayed Sports City Stadium, each year from around the world. FLASH’s in Abu Dhabi. Fans will remember Zayed Q: How does FIFA Club World Cup hosting flagship events like the Mubadala World Sports City Stadium as a venue of the FIFA link to the Asian Cup in terms of learning and Tennis Championship, the Abu Dhabi World Club World Cup 2009, and this year it will preparation? Professional Jiu-Jitsu Championship and play host to spectacular Opening and Closing AD: Even for seasoned events teams, every Yasalam, the city-wide festival celebrating ceremonies. big event is an opportunity to grow and build the Formula 1 Etihad Airways Abu Dhabi We’ve been working hard to ensure the on your skillset. The AFC Asian Cup UAE Grand Prix, not only contribute to a thriving stadiums are ready for a tournament of this 2019 kicks off in January 2019 and will see 51 calendar of year-round sport, but also deliver calibre. Our operations team are upgrading matches played across the UAE over almost grassroots programmes that leave a lasting the venues to ensure all FIFA competition a month. The finals will be the biggest in legacy in the community. standards are met, and creating a look and the tournament’s history with eight more The FIFA Club World Cup is one of feel that will reflect the unique energy of a teams taking part than in 2015 – 24 of Asia’s the most significant tournaments on the live football match. Our broadcast and media best sides will battle it out to be crowned football calendar. Hosting it will give Abu set-ups will be state-of-the-art to ensure that champions of Asia. The matches will be played Dhabi another opportunity to showcase anyone around the world can tune in and feel in eight stadiums across the UAE. In scale, it our credentials as a host city to millions of like they’re right there in the stadium with us. is certainly a bigger operation and naturally people around the world, and to some of the As we get closer to kick-off, we’ll be we will use the FIFA Club World Cup UAE most important governing bodies in sport. expanding our team by more than 300 2017-2018 – as we do every event we stage – as The FIFA Club World Cup is one of the only volunteers and 400 security personnel per an opportunity to test our operations and take major tournaments where you are guaranteed game to make sure every fan has a great learnings forward so that we can continue to to get clubs from every continent taking part experience. create truly world-class experiences. Z

12.17 : SportBusiness International 6272 HEADLINERIN ASSOCIATION : JEROME WITH CHAMPAGNE SPORT IN ABU DHABI

ABU DHABI – AT THE CENTRE OF THE SPORTING WORLD FROM THE WORLD TO ABU DHABI

6 13 hours 6 hours hours Europe Asia

North America

7 15 hours hours

Africa 11 Estimated Flight Times from South America hours Sports Capitals to Abu Dhabi Australia

UNDER 7 HOURS UNDER 8 HOURS UNDER 4 HOURS UNDER 10 HOURS UNDER 6 HOURS Bangkok UNDER 14 HOURS Cairo Athens Frankfurt Beijing Melbourne Delhi Geneva Kuala Lumpur Seoul New York Karachi Shanghai Milan London Sydney Mumbai Madrid Paris Singapore

EXTRAORDINARY ACTION RECENT AND UPCOMING INTERNATIONAL EVENTS IN ABU DHABI ABU DHABI GRAND SLAM JUDO 2017 ABU DHABI HSBC CHAMPIONSHIP 2018 20 October - 1 November 2017 18-21 January 2018 FATIMA BINT MUBARAK LADIES OPEN 2017 GARY PLAYER INVITATIONAL 2018 1-4 November 2017 28-29 January 2018 INTERNATIONAL CONFERENCE OF SPORTS FOR AIR RACE WORLD CHAMPIONSHIP ABU DHABI WOMEN 2017 2018 6-7 November 2017 9-10 February 2018 FORUMLA 1 ETIHAD AIRWAYS ABU DHABI GRAND PRIX THE PRESIDENT OF UAE SHOWJUMPING CUP 24-26 November 2017 14-17 February 2018 FIFA CLUB WORLD CUP UAE 2017 ABU DHABI TOUR 2018 6-16 December 2017 21-25 February 2018 MUBADALA WORLD TENNIS CHAMPIONSHIP 2017 ITU WORLD TRIATHLON ABU DHABI 2018 28-30 December 2017 2-3 March 2018 ABU DHABI INVITATIONAL 2018 REGIONAL 2018 12-13 January 2018 14-23 March 2018

12.17 : SportBusiness International IN ASSOCIATIONHEADLINER WITH SPORT: JEROME IN CHAMPAGNEABU DHABI 63 73

10 10 3

12 12 1 1 13 13 8 8 6 6

3 3 2 142 14 11 511 5 4

7 7 9

4 8

EXTRAORDINARY VENUES Experience Sport in Abu Dhabi at some of the world’s most breathtaking stadia and events: 10

1 Abu Dhabi Corniche 8 Emirates Palace

2 Abu Dhabi Exhibition Centre 9

11 3 Abu Dhabi Golf Club 10 Saadiyat Beach Golf Club

Al Ain Equestrian, 4 Shooting and Golf Club 11 Zayed Cricket Stadium

Al Forsan International 5 Sports Resort 12 Yas Links 14

6 Al Nahyan Stadium 13 Yas Marina Circuit

7 Al Wathba Cycle Track 14 Zayed Sports City

12.17 : SportBusiness International 74 NEWS ROUND-UP

Esports

Liam Thompson, gaming and influencer executive with brand agency Cake, picks out the most interesting recent stories from the esports sector

FERNANDO ALONSO LAUNCHES ESPORTS TEAM Two-time Formula One world champion Fernando Alonso has partnered with renowned professional gaming team to create his own esports racing team. Alonso announced the start of ‘FA Racing G2’ on his social media, saying that he wants to bridge the gap between Formula 1 and gaming, giving fans the opportunity to join his team if they have the talent required. It follows F1 manufacturer McLaren’s announcement that they would be signing their own esports player after they held a competition to find the ‘world’s fastest gamer’. Racing games haven’t been big in esports, but this year has seen some noticeable competitions created to help drive forward competitive racing games, with McLaren and Formula One itself launching their own esports competitions. The winner of Formula One’s Esports Fernando Alonso has joined with G2 Esports to create a racing team (Getty Images) Series was crowned during the finals event in Abu Dhabi on November 25. Over 63,000 players competed in the qualifiers for the VIDEO GAME ‘LOOT BOXES’ or not. It has since been reported that event, with millions of impressions across CONSIDERED GAMBLING authorities in Australia and the US are also social media around the competition. Many video games include crate/boxes/ looking into the matter. With a global superstar like Alonso now cases – ‘loot boxes’ – which players can buy making a movement within racing esports, with real money in order to receive a random MAJOR GLOBAL BRANDS this could be the start of more to come over in-game item. Major esports titles Counter SPONSOR ESL EVENT the next few years. Strike, Overwatch, and PlayerUnknown’s Pringles, the globally recognised snack brand, Battlegrounds all use loot boxes. In Counter recently announced a new sponsorship with SIGNS NEW SHIRT Strike: Global Offensive players pay around $2 the $1m ESL One Hamburg Major SPONSORSHIP DEAL WITH AUDI for an in-game case and key, which they unlock event that took place in late October. Professional Counter Strike team Astralis to receive a random weapon skin which could Pringles set up its own gaming area at has signed a shirt sponsorship deal with be worth anything from five cents to $100. the event and had a presence at the team car manufacturer Audi. It isn’t the first Several countries are now asking that hotel, where participating players received agreement between the two parties as in these are banned or be officially labelled as personalised Pringles cans. January this year Astralis announced Audi gambling. Mercedes-Benz also sponsored ESL Denmark had signed a three-month deal The issue has come to light after the newly One Hamburg, as part of a longer deal that to badge the team’s jersey. This initial released Star Wars Battlefront II received a will see the vehicle manufacturer sponsor sponsorship was formed just weeks before huge negative backlash over their loot-box tournaments across multiple markets. Astralis won the first major event of the year, system. Players could pay for the chance to Mercedes-Benz provided a fleet of custom- which pulled in over a million live viewers for unlock items that boosted their characters’ skinned cars covered with each of the team’s the grand final. in-game abilities, which many saw as unfair and branding and offered a brand new $50,000 The new deal will see Audi become the a ‘pay to win’ system. has since (€43,000) car to the player who fans voted as team’s official sponsor on an on-going basis. removed loot boxes from the game completely. MVP of the tournament. Audi Denmark’s digital manager, Jacob It was reported that Belgium’s Justice It is certainly significant that two globally Thiesen, said the initial partnership proved Minister called for these kinds of loot boxes recognised but very different brands have the value in their brand moving into esports to be banned in Europe, but the Belgium decided to enter the esports space and that and the “impressive numbers and effects” left Gaming Commission is currently deciding they are both activating around the same them extremely pleased. whether these boxes count as gambling Dota 2 major. Z

12.17 : SportBusiness International ESPORTS : GAMING & CITIES 75

IT’S A BATTLEFIELD | WHY CITIES ARE RACING TO BENEFIT FROM ESPORTS BOOM

F Almost half the cities polled by TSE earlier this year said they would host an esports event within 12 months F Six in 10 North American cities say they’ve been in contact with the industry, but just one in four in Asia F Cities can use esports events to boost their skilled technology industries

A loyal and growing fanbase, predominantly comprised of young people, makes esports an intriguing prospect for hosts (Getty Images)

12.17 : SportBusiness International 76 ESPORTS : GAMING & CITIES

Continued from previous page...

“We found that a lot of cities want to look into esports in the future – but the biggest barrier is not understanding the business structure. They can see how big it is, but they have no clue how to go about it”

RONNIE HANSEN, PARTNER IN SPORTS STRATEGY, TSE CONSULTING SCANDINAVIA

BY GREG PITCHER

t’s a “party” crowd, according to Ronnie Hansen, partner in sports strategy specialists TSE Consulting Scandinavia. “It’s a cool gang, like the snowboarders of I10 years ago. Cities are after these people – but they don’t know they can use esports to connect to them.” That’s right. Forget the image of vitamin D deficient teenagers bashing their buttons with the curtains drawn; professional video gaming is drawing economically desirable, tech-savvy adults to an arena near you. The Games, held in the Danish city over three days earlier this year, saw more than 1,000 players from around the world battle it out in front of 6,000 fans for prize money worth thousands of pounds on games including shoot-‘em-up Counter- Strike and football simulation Fifa. So successful has the annual event become that the city will host an entirely new tournament later this year in its recently- opened 10,000-capacity Royal Arena. It has tournament through a branded recruitment “We found that a lot of cities want to look been estimated that this Blast Pro Series campaign on the event organiser’s website. into esports in the future – but the biggest event will bring in a minimum of $2m “You can’t find another means of barrier is not understanding the business (€1.7m) in tourist spend. And that’s just the marketing to that amount of those people structure,” says Hansen. “They can see how beginning of the attraction. worldwide,” says Hansen. “There will be big it is, but they have no clue how to go “The main benefits to Copenhagen are specific jobs advertised, but also a general about it.” tourism and media attention, but there’s also message to people about jobs in the city.” talent attraction because esports builds up It’s an innovative move that comes with Swell of interest interest in our gaming industry,” says Lars cities clamouring to make their mark in a Blast Pro Series backer RFRSH Vallentin Christensen, head of events at fast-growing sector that is rapidly moving Entertainment is talking to several cities as it Wonderful Copenhagen. from fledgling to mainstream. works to convert a swell of interest in esports TSE Consulting has estimated the global into contracts to host events. Skilled technology workforce esports market could be worth almost $5bn RFRSH vice-president of brand Steen About 150km west, the Danish city of Odense by the end of this decade. In a poll of cities Laursen says up to 20 potential future host is using esports even more directly to boost earlier this year, more than four in five said cities will be represented in Copenhagen, its skilled technology workforce, through a they believed hosting esports events could where the new tournament has been crafted deal to host the ESL Pro League Counter- help them connect with young people. to appeal to the growing fanbase. Strike tournament for the next three years. More than half of respondents said esports “As the tournament circuit goes global “There is a huge tech university in Odense, tournaments could provide a shortcut to over 2018 the audience will grow further,” he and the biggest cluster of businesses in the boosting a city’s profile in the sports event says. “The aim is to have fixed stops on the city is robotics and tech,” explains Hansen. market. circuit, which will be a very strong signal for “Their biggest challenge is recruitment, Six in 10 North American cities surveyed the host cities, as they will have a permanent because they don’t have enough attention said they had already been in contact with position in all content and material around and there is sometimes a perception that the the industry, as did a similar proportion in the Blast Pro Series. city is boring.” Europe. But perhaps the Asian market is “We’ve been working on the format for These tech employers, desperate for clued- the biggest untapped resource for esport almost a year, talking to players of all the up 16-30-year-olds, will offer job interviews organisers, with only one in four respondents top teams, some of the best producers in the in conjunction with tickets to the esport from the region saying they had made contact. business, casters, experts, fans and other

12.17 : SportBusiness International ESPORTS : GAMING & CITIES 77

stakeholders to create a format where the ESPORTS IS ‘LIKE BASKETBALL, fans can be sure to see their favourite team Extra: BOXING AND F1’ on stage in the arena without having to consume 25-30 hours of esports over one weekend.” At workshops, Ronnie Hansen, partner in sports Live esports events are not just attracting One city that has recently hosted an strategy specialists TSE Consulting Scandanavia greater numbers, but also an increasingly esports event is Orlando, Florida, which held tells interested parties to think of the esports diverse audience. Think of thousands of video the World Championship in the industry in terms of three sports they know well. game fanatics in your city and you may conjure 20,000-capacity in August. “It’s like the NBA, where team owners are key; up images more reminiscent of zombie movie Orlando Venues chief venue officer Allen boxing, where there are lots of federations; and Shaun of the Dead than party films such as The Johnson says it was approached by producer Formula 1, where you have commercial teams Hangover. You may also be wrong. Activision for the “wonderful opportunity” to who travel around to events worldwide and fans “Forget the stereotype,” says Christensen. host the event. who travel with them,” he says. “There’s no pizza and Coca-Cola, just people very “In just the last 18 months we’ve Hansen expects the partial disconnect serious about their sport. successfully hosted several high-profile between teams, organisers and potential hosts “It’s very active people who support their sporting events including WrestleMania 33, to be resolved quickly as the sport reaches its teams like football fans and create a great the NFL Pro Bowl, NCAA March Madness tipping point. There is even talk of it competing atmosphere, but can sit next to opposition fans and Copa America Centenario matches,” for Olympic status. without any trouble. says Johnson. “We’re proud to add the Call “The sport is growing every day,” says Hansen. “We have people in their 30s coming, maybe of Duty World Championship – and esports “It will become more organised, so within three a couple of guys together. They spend as much in general – to our diverse programming years, esports tournaments will have the same if not more than football fans and they show milestones.” bidding systems as other sports. That will make different behaviour in the city. There is less risk. it easier, but also harder to bid for, as more cities They spend on merchandise, food and drink. It’s a Commercial opportunities will compete.” very interesting group for us.” Z Laursen says there are various commercial opportunities related to hosting esport events. esports, however, the media most certainly “We want to create the ultimate esports He says: “It’s a global phenomenon and is not the message. Millennials are used event and, as such, we do require fairly millions are already watching. For the post- to being bombarded with online content modern facilities, a solid net connection, VIP millennials, esports are actually preferred as and will rapidly tune out unless they are lounges and so on. But if it is not there, we competitive entertainment over traditional connected to it. bring a lot of experience to bring or create sports, and through hours and hours of highly “You need to be sure what your message what is necessary,” he adds. fan-engaging live and on-demand content is,” warns Hansen. “You have to be specific: Hansen says hosts are maybe not always we offer a direct pathway to access to an this generation will only watch for two getting the most from the fans they attract audience which is traditionally hard to get.” seconds before moving on.” into their arenas for esports events. Hansen says the very nature of video “The matches are very long, so people game tournaments makes them especially Within the arena are there all day, but these fans need to be appealing to advertisers. Unlike at football or Understanding the young, tech-savvy fan connected with and understood,” he says. basketball, all eyes are already on a screen. base is also important for making a success of “If you’re 18 years old and have never been “One of the most interesting things about the event within the arena itself. to football you don’t understand that standing esports is the contact you have with the Johnson notes that the amount of IT in a queue chatting to your mates is part of audience,” he says. “When you’re talking infrastructure required for the Call of the experience. It’s easy to sell fans more if about something that’s truly digital, you Duty tournament was “considerably more you understand what they want. You need to can talk to whoever you want – sending a intensive than typical events” and adds that consider apps and smart stadium devices.” message about colleges to all the 18-year-old the “load-in process took a little longer”. The potential rewards are huge. For a start, viewers from neighbouring countries, for Christensen says the technological the travel required by fans means they’re very example.” requirements are way above those for other likely to stay in hotels in the city and spend Armchair fans become anywhere fans, sports. on food and drink outside the venue. watching the action on their phones, tablets “Esports is the most developed area in “These are young people; they don’t sit or laptops through feeds often hosted on the terms of networking and cabling but also around watching TV at the hotel,” says organiser’s own website. the big screens,” he says. “You can’t have Hansen. “You would generally have broadcast and technology failures.” Tournaments are also far easier to host deals separately for most sports, but He adds that the young sport benefits from schedule than, say, a key NFL or football for Odense we’ve made an integrated deal,” a fresh approach. game, which is likely to have a fixed slot in Hansen says. “With just one rights-owner it’s “With a new event you have to give the the calendar. easier. With people watching the ESL event audience a new feel; we have a new format and “Esports is like boxing, as you can put it through the ESL website, we can put up in- a new stage built in a triangular shape,” he says. on when you want to – you can use it to fill a game messages.” Laursen says RFRSH aims for at least free weekend or boost your winter schedule,” When it comes to advertising during 10,000 fans at each esport event. says Hansen. Z

12.17 : SportBusiness International FIFA Master ranked Europe’s No.1 course in 2017 for a record 5th time by SportBusiness

CAS/DAS in Sports Law

- 200 120

- - - - th 7 3300 Apply now for the 19 edition! One of a kind in Switzerland Launched in 2017 www.cies-fifamaster-application.ch

www.cies.ch Matt Davidson, Senior Director, Global Brand Communications Football, ADVERTISING FEATURE adidas and FIFA Master Alumnus

British-Canadian, born and raised in Toronto, father of a baby girl and a football-lover. In this interview, Matt Davidson talks more about That’s Matt Davidson, Senior Director of Global Brand Communications Football at his career in the sport business and his life as a adidas - arguably the biggest soccer brand in the world. Matt has been working FIFA Master student – and as alumnus. in sports for a long time. “I began my career in sport working in marketing and operations at Tennis Canada before I moved over to BMW Group Canada, where What is it that you love about your job? I worked in event marketing, activating BMW and Mini event sponsorship in golf, Adidas, as a brand and organisation, believes that through sport we have the power to change lives. , skiing and the arts”, he recalls. In 2006 he joined the 7th edition of the I feel fortunate to work for an organisation which International Master in Management, Law and Humanities of Sport – a.k.a. the FIFA is driven by that because it means I can work on Master. After graduation, in July 2007, he was selected to enter adidas’s Traineeship initiatives, projects and programmes that may Programme, and at the end of that joined the Global Brand Marketing division. serve a meaningful purpose in people’s lives - and He’s been with the brand of the “three stripes” ever since – and have escalated a I get to do that through football! I also appreciate that I have the opportunity to number of positions at a very fast pace. He comments: “After completing the FIFA work with people who all share a passion for sport from all across the world. It’s also Master I joined adidas where I have been working in Global Brand Marketing, being pretty cool working on campaigns with the likes of Messi, Pogba and Zidane. responsible for developing global campaigns and activations for football across products and sports marketing partnerships“. What would you say was your biggest achievement so far? Defi nitely the birth of my daughter! Professionally, I would say it is a draw between When asked what led him to apply to a course like the FIFA Master, Matt explains developing the “#therewillbehaters” campaign in 2015 and creating our grass roots that he wanted to develop further as sports business professional, and had ambitions football activation program called #TangoLeague, which offers young footballers of an international career. “The experiences from the FIFA Master prepared me for the chance to become football infl uencers through the power of our brand. working in an international organisation and I can see similarities between the nature of studying the Master and working in a company like adidas”, he says. How important was the FIFA Master for your career? It was important because it opened my mind and broadened my horizons, personally and professionally, so I was better prepared for working in a challenging and diverse Matt says that his fondest memories of the FIFA Master are the barbeques by lake international sports organisation. The Curriculum is important, but what sets the Neuchatel, going to see matches at the stadium, in Milan, and the football FIFA Master apart is the personal and social development realised through the matches his class played against other schools and sports companies during the people you meet and engage with. year. “Our team remained undefeated the whole year”, he claims. Are you still in touch with classmates or other alumni? He is also a co-founder of the Canadian Pulmonary Fibrosis Foundation (CPFF). Defi nitely! The alumni network is important because the people are important to “My Dad was diagnosed with Pulmonary Fibrosis and we found there was no me. Furthermore, we are all part of the sports business and will always cross paths organisation dedicated to fi nding a cure or providing support for sufferers, so we in our professional lives, and this is apparent both inside adidas and with partners chose to take action and founded the CPFF. We established events such an annual - from clubs to FIFA and UEFA - where I meet and work with classmates and fellow golf tournament, marathons and an annual spring gala as fundraisers”. alumni regularly.

CIES - Centre International d’Etude du Sport, avenue DuPeyrou 1, 2000 Neuchâtel, Switzerland - Phone +41 (0) 32 718 39 00 - Email fi [email protected]

FIFA Master ranked Europe’s No.1 course in 2017 for a record 5th time by SportBusiness

CAS/DAS in Sports Law

- 200 120

- - - - th 7 3300 Apply now for the 19 edition! One of a kind in Switzerland Launched in 2017 www.cies-fifamaster-application.ch

www.cies.ch 80 UCI URBAN CYCLING

Events URBAN OUTFITTERS | UCI TAKES BMX AND MOUNTAIN BIKE EVENT TO A CHINESE CITY CENTRE

F Inaugural event held in Chengdu to tap into growing Chinese cycling market F City-centre events designed to use existing architecture as obstacles F Setting maximises economic impact

The inaugural UCI Urban Cycling World Championships took place in Chengdu in November (Leo Zukhov/UCI)

BY ROBERT RIDLEY the inaugural Urban Cycling World UCI sports director Piers Jones tells Championships took place from November SportBusiness International. “Obstacles he concept of ‘sportainment’ has 8-12, bringing together Mountain Bike presented by inner-city architecture are used become a buzz word for sports Eliminator (XCE), Trials and BMX Freestyle in many different ways by people on bikes, event organisers seeking to create Park. on skateboards or simply using their physical competitions that appeal to a The UCI believes it can tap into a growing strength to run, swim, jump and climb. Tmodern-day audience. interest for city-centre events, with the “Bicycles play a key role in this new trend In November the International Cycling new championships representing a fresh and have become a central part of the urban Union (UCI) debuted a new annual event in concept for cycling’s world governing body culture. As a result, cities have expressed China that it believes can serve as a flagship through the development of a template that a growing desire to organise city-centre for fusing together sport and entertainment, is designed to minimise the strain put on events which do not involve major logistical while also acting as a showcase for three of host cities. constraints – i.e. minimal road closures. This its developing disciplines. “Over recent years city centres have is also to maximise the economic impact, as Hosted by the city of Chengdu, become major and popular fields of play,” shops, restaurants, museums and tourism

12.17 : SportBusiness International EVENT FOCUS : UCI URBAN CYCLING 81

“The aim is to reduce the workload and the complexity of the overall infrastructure for the organising city. It’s the DNA of the Urban Cycling World Championships – an event designed for the host city in all regards” PIERS JONES, SPORTS DIRECTOR, UCI

locations mainly tend to be located in city “The UCI wants to remain fair and to centres. offer the same possibilities to all regions “The UCI has responded to this trend with to develop those disciplines. That is why the Urban Cycling World Championships. our target is to have a rotation between the We are bringing the sport to the heart of the different continents, whereas for this event city.” we believe it is more relevant to have the Chengdu has a population of some same host across two or three years to create 14.5 million people and is the capital of initial traction.” southwestern China’s Sichuan province. The inaugural championships saw The assignment of hosting rights to the the world’s best specialists in the three city is part of a wide-ranging commercial disciplines compete for the iconic rainbow partnership between the UCI and the Wanda jersey and the title of UCI world champion. Sports division of Chinese conglomerate CHINA’S CYCLING MARKET The trials competition opened the five-day . IN NUMBERS show, running from Wednesday, November 8 Signed in December, the pact seeks until Saturday, November 11. to develop men’s and women’s elite and BMX Freestyle Park took place over the grassroots cycling across various disciplines weekend, from Friday to Sunday, while in China. Mountain Bike Eliminator concluded the event on Sunday. Growth rate The size$1.5bn of the Chinese cycling As well as the Urban Cycling World sports market Sustainable Championships, the Tour of Guangxi, a Jones says the unique nature of the new men’s WorldTour road race, ran from championships necessitated that the UCI October 19-24, culminating with the UCI designs a hosting model which aims to Cycling Gala in the mountain city of Guilin, address one of the key concerns for sports venue of the tour’s final stage finish. federations at present – ensuring that events The UCI says bike ownership in China has 600mBicycles owned are sustainable and present real value for reached 600 million, with the country having host cities. 10 million active cycling fans, 20,000 cycling “The UCI Urban World Championships are clubs, 100 cycling events and 15,000 bike a unique format with three disciplines held in stores. one single event or location,” Jones says. Additionally, the size of the Chinese “Taking place in city centres, it is cycling sports market is said to have grown to Active10m cycling fans the perfect platform to stage a cultural $1.5bn (€1.27bn) with the industry expected programme alongside the competition to reach a growth rate of 20 per cent by 2023. schedule – such as street arts, dancing, China has been guaranteed hosting rights concerts, city life etc. to the first three editions of the Urban “The UCI has developed a specific Cycling World Championships under the business model for this event – it is a full Wanda Sports partnership, but Jones says the turnkey solution. The UCI will supply the 20,000Cycling clubs UCI has plans to take the event elsewhere TV production, the timing service, the prize from 2020. money, but also the sporting facilities - i.e. “We are currently in discussions with a the BMX park. wide range of cities from three different “The aim is to reduce the workload and the continents and there is no question that complexity of the overall infrastructure for the integration of BMX Freestyle Park to 15,000 the organising city. It’s the DNA of the Urban the Olympic programme has increased the Bike stores Cycling World Championships – an event interest for the event,” he adds. designed for the host city in all regards.” “The first edition available is for A total prize fund of €187,050 was on 2020, which will be part of the Olympic offer for participants at the championships, qualification system, making it even more an unprecedented amount for the three attractive. disciplines represented. From a commercial

12.17 : SportBusiness International 82 EVENT FOCUS : UCI URBAN CYCLING

“The integration of BMX A UNIQUE SPECTATOR EXPERIENCE Freestyle Park in the Olympic Extra:

programme will also bring The UCI believes BMX Freestyle Park, Mountain says: “Mountain Bike Eliminator was first created increased media coverage Bike Eliminator (XCE) and Trials are a natural in 2011 as part of the UCI Mountain Bike World combination of sports that can be concentrated Cup and became a UCI World Championship around this discipline, which together in a single venue, such as a city park or event from 2012 to provide a short, compact and is already very popular among square, providing a unique spectator experience tactical action-packed spectacle. in a city centre. “Likewise, it favours sprinters rather than just youngsters” UCI sports director Piers Jones says the pure endurance riders so gives opportunities to growth of the disciplines demonstrate they athletes, teams and sponsors who have this ability. PIERS JONES, are ready for an event of the level of the Urban Interest in Mountain Bike Eliminator has grown SPORTS DIRECTOR, UCI World Championships. to such an extent that a World Cup series held separately to the more traditional cross-country BMX Freestyle Park and downhill events was first formed this season.” perspective, the UCI sought to reach out to BMX Freestyle Park is practised in skateparks, the younger audience associated with the where freestylers are awarded points based on Trials three disciplines by harnessing digital media tricks and their respective difficulties, but are also Trials revolves around riders getting over platforms. judged on originality, style and execution. obstacles grouped into sections, without setting “Our plan is to utilise all the UCI’s digital The discipline received a boost in June, when foot on the ground. Any part of the bicycle, aside assets to showcase the event to the world,” the International Olympic Committee agreed to from the wheels, is also prohibited from touching Jones says. add both it and track cycling’s Madison to the the ground. “Competition was available through programme for the 2020 . Jones says: “A new race format will be applied highlights packages and live streaming on our Jones says: “In the case of BMX Freestyle on this first Urban Cycling World Championships YouTube channel and Facebook pages. Park, this discipline has experienced significant in which the goal is to collect the maximum “Like for any other UCI World growth recently. For example, it was added to the number of points in the allowed time across the Championships, social media through programme for the Olympic Games and will make five sections. Trials is one of the oldest UCI World Facebook, Twitter and Instagram are at the its first appearance during the Buenos Aires 2018 Championships in the off-road disciplines, with heart of our promotion effort. We are also in , before its main Olympic the first edition taking place in 1986. advanced discussions with partners to help appearance during Tokyo 2020. Prior to this, the “For many years, Trials has featured a us build China-based social media assets, UCI created the BMX Freestyle Park World Cup standalone World Cup series, with several events such as Sina Weibo, WeChat and Youku.” series, which kicked off in 2016.” placed in full view of the public in city centres. Jones adds that the UCI has a “fully Historically, since 2000, Trials has been linked dedicated” sponsorship strategy for the XCE to the Mountain Bike World Championships. championships. Raced over short and technical courses in heats However, with the growing popularity of “Several agencies are working on the of four riders at a time, XCE is a mixture of cross- city centre World Cups in the discipline, it sales process with a strong focus on country Olympic mountain biking, for the type was obviously time to move its UCI World Chinese brands and we will be announcing of course, and four-cross, for the format. Jones Championships to the city as well.” Z partnership agreements,” he says.

Looking to the future, the UCI sports Leo Zukhov/UCI director is confident the governing body has developed a winning concept in the Urban Cycling World Championships, stating it will “set the bar” in the sports events market. He adds: “It is an event which can truly activate the city centre and create a cluster between sport, urban culture and arts. It will become a flagship of ‘sportainment’. “The integration of BMX Freestyle Park in the Olympic programme will also bring increased media coverage around this discipline, which is already very popular among youngsters. “There are very few events which can bring so much to the image of a city and we are confident it will be the event host cities are looking forward to offering to their local community, as well as to foreign visitors.” Z

12.17 : SportBusiness International ROUND-UP 83

China : News

Mark Dreyer, editor of China Sports Insider, takes a look at the most significant stories from the Chinese sports sector

NEW QUESTIONS POSED OVER AC MILAN OWNERSHIP An explosive New York Times investigation into the finances behind AC Milan’s Chinese owner that found missing hard drives, shuttered rooms and maggots squirming inside the premises of one of the firms purported to be involved has heaped more pressure on Li Yonghong and his Rossoneri Sport Investment group. The piece laid bare the public records available on Li, severely undermining claims made by Li to the club, including the assertation that “the mining empire he described to Italian soccer officials was hardly known even in mining circles.” Rumours have swirled that, in a worst-case scenario, Li may be forced by the Chinese government to sell the club and bring any proceeds back to China, but with the ownership structure technically offshore, it is UCLA’s LiAngelo Ball, with Cody Riley, speaks to the media after returning to the US (Getty Images) unclear how that might happen. Li is known to have a sizeable loan perhaps – by saying that China plans to bid to Given that the match was being televised coming due next year to vulture fund Elliott host the 2030 Fifa World Cup. back in China and that the flag typically Management, and having spent a huge amount Lippi made the comments in an interview supports a separate Tibetan state – one on players this summer, it’s also unclear how with Chinese media, according to the of China’s hot-button issues – the players Li hopes to raise the necessary funds. Chengdu Business Daily. refused to continue until the flags were However, the Chinese Football Association removed. TRUMP COMMENTS EXTEND (CFA) rejected this, saying that they had Despite the high-level backing of the UCLA 3 SAGA not yet announced which World Cup China football initiative, with German Chancellor President Trump escalated the UCLA 3 saga would bid for and denying that Lippi had Angel Merkel signing a five-year agreement on social media following the return of the even given the interview in question. with China’s Vice Premier Liu Yandong, trio to American soil. It’s widely known that China is interested three of the teams in the league had already LiAngelo Ball – younger brother of LA in hosting the World Cup as soon as possible, refused to play the Chinese side, protesting Lakers’ Lonzo and son of attention-seeking but the subject of a bid for 2030 is sensitive, the fact that the remaining 16 teams are each LaVar – along with teammates Cody Riley because, under current rules, nations from being paid €15,000 for their troubles. and Jalen Hill were finally released from Asia would not be able to submit a bid effective house arrest in Hangzhou in until 2034, since AFC representative NHL PUTS 2022 OLYMPICS November after they were caught shoplifting hosts the 2022 tournament. However, Fifa PLANS ON ICE from a high-end mall near their hotel. guidelines would allow an Asian bid if none NHL commissioner Gary Bettman says On their arrival back in Los Angeles, Trump of the other bids were considered strong it’s “hard to envision” the league’s players first encouraged them via Twitter to thank enough and, while that’s unlikely, you can be returning to China for the Olympics, despite him for securing their release – which they sure that China is exploring every possible the organisation venturing into China for the did – then called on the players to also thank avenue for submitting a bid for 2030. first time this year in the long run-up to the Chinese President Xi Jinping, before finally 2022 Beijing Olympics. calling LaVar ungrateful for not crediting him GERMAN FOOTBALL TOUR DISRUPTED Previously, it had been assumed that with negotiating the return of the players, BY TIBET PROTEST Bettman would allow the players to return to adding that he “should have left them in jail”. The start of China’s under-20 national the Olympics in a little over four years’ time, football team’s schedule of friendlies against after sitting out next February’s Olympic NATIONAL BOSS LIPPI IN 2030 fourth-tier league sides in Germany was tournament in South Korea. But, in an WORLD CUP BID GAFFE disrupted by half a dozen protestors, who interview with Sweden’s SVT Sport, Bettman China’s national team football coach, hung a handful of Tibet flags on the sparsely- raised the possibility that NHL players may , has let the cat out of the bag – populated terraces. have left the Olympics for good. Z

12.17 : SportBusiness International 84 INTELLECTUAL PROPERTY

FAKE NEWS | MAJOR BRANDS TAKE ON CHINA’S COUNTERFEITERS

F New Balance has been awarded close to $2m in damages in China following action against ‘parasite brands’ F Liverpool has launched an unbranded shirt in China for $30 F Improvements in manufacturing mean that fake sportswear is now of a reasonable quality

With counterfeit sporting goods rife in China, companies and teams have been forced to consider how best to prevent IP infringement (Getty Images)

BY MARK DREYER that closely resemble well-known lines – away with. The laws are not there to protect doesn’t distinguish based on geography. The brands or clubs. They’re just not a strong he recent launch of a probe by the problem has dogged European brands such as enough deterrent.” US against what it says is the theft Adidas and Puma just as much as American Matthew Dresden, an attorney and China of intellectual property (IP) by sportswear giants like Nike and Under IP specialist at Harris Bricken, cautions that China – something that Washington Armour. Piracy is not particular, it seems, but context is important. “China’s current IP Tclaims has cost the US as much as $600m it is rampant. system really only took effect with China’s (€515m) – has shone the spotlight once again “Counterfeits are rife,” says Shaun accession to the WTO in 2001 and so on a perpetually thorny issue. Kastelijn, who has worked in teamwear everyone – judges, lawyers and the public – But this is no bilateral problem. manufacturing for the past decade, most has had to get used to the rules,” he says. “By Infringement – which covers everything recently in China. “The IP laws in China are those standards, China is doing pretty well.” from counterfeit goods and the use of just not up to the same standard as they are But for westerners, Dresden says, China’s copyrighted material or technology without elsewhere, so manufacturers are pushing IP system appears highly unpredictable and permission to the so-called ‘parasite brands’ the boundaries to see what they can get often unprofessional, with a disconnect

12.17 : SportBusiness International CHINA : INTELLECTUAL PROPERTY 85

between law and practice. “China’s first- “The upside is worth the risk. Part of the reason why official shirts are to-file regime requires companies to be marked as they are – $87 in Liverpool’s case extremely aggressive and proactive,” he It is a big market with big – is that the prices are designed to recoup the says. “China does not require proof of use potential sales. In any event, huge outlays that the likes of Adidas, Nike to register or maintain a trademark. In other and others pay to the clubs in their kit deals. jurisdictions, prompt decisive action against counterfeits can still be But outside the big cities in China, that price infringement provides results. But in China, exported, so even if you are not tag is simply out of reach to the majority of it’s not so clear that it’s a disincentive, so the people, and with manufacturers able to shift best defence is a good offence.” in the market, you need to fight counterfeits by the bucket load, these fake shirts become extremely cheap to produce – Larger problem counterfeiting in China anyway” and to buy. Additionally, manufacturers are One company that has been taking the fight no longer scared to put the official kit brands DOUGLAS CLARK, to its opponents – with some success – is US on the fake shirts, something they would not CHINA-BASED IP LAWYER shoe and sportswear brand New Balance. have done in the past. Elsewhere, counterfeits remain the larger “You need to price products to match the problem, says Dan McKinnon, the firm’s wealth of customers,” says Clark, “as well as senior counsel for global brand protection, The environment is enough to put off selling in dedicated boutiques, which allows but, within China, parasite brands – in even the largest brands, but there is no point customers to know they are buying the real their case, domestic companies such as avoiding the market, according to Douglas thing.” New Bunren, New Barlen or New Boom, Clark, an IP lawyer who has practised in “It’s definitely worth Liverpool investing whose shoes are largely indistinguishable China for 25 years. in that option,” adds Kastelijn. “If they’re from the ‘host brand’ New Balance – are the “The upside is worth the risk,” Clark successful, you might see the top five or bigger problem, essentially because the two says. “It is a big market with big potential six clubs across Europe following suit. government agencies assigned to tackle the sales. In any event, counterfeits can still Manchester City, Manchester United, counterfeit issue will not make a call as to be exported, so even if you are not in the Chelsea, Real Madrid, Barcelona and PSG are whether there has been an infringement. market, you need to fight counterfeiting in the shirts you see everywhere, but, outside That forces the brands to enter China’s China anyway.” of that group, there’s probably not enough formal judicial system, which can be Fake football shirts take up a lot of the demand in China to merit it.” expensive and painstakingly slow. counterfeit headlines – and for good reason. Earlier this year, however, New Balance At a preseason game between Manchester Different demographic was awarded close to $500,000 in a case United and last year The jury is still out on whether Liverpool’s against New Bunren, which McKinnon in Shanghai, Kastelijn says he saw fake $30 shirt will start to make its way out of describes as “a very substantial victory” Manchester United shirts being offered China. “I tip my hat to Liverpool FC for for the firm. outside the ground for 60 RMB ($7.50). After at least trying something different,” says “It began to set the tone, in many ways, for the game, that had dropped to just 10 RMB. Dresden. “But I think we can also expect to future decisions like the one we received in One problem, Kastelijn says, is that see these shirts turn up on the grey market in the New Boom case,” he says. improvements in manufacturing mean that the US and Europe pretty soon.” That decision was handed down in August, the fakes are now of a reasonable quality. But Kastelijn disagrees, arguing that awarding New Balance an unprecedented “Some fans will definitely still want the real European clubs already offer a range of 10m RMB, or about $1.5m (€1.3m). version, but there are others who don’t see official gear, such as polo shirts and training Perhaps the most famous example of the point in paying full price, because they’re kits, priced at a cheaper level to cater to a a parasite brand in China is ‘Qiaodan’, getting a similar product for much less,” he different demographic. pronounced as per the transliteration of says. One of the keys to success when it ’s name. Qiaodan’s logo In an intriguing move earlier this year, comes to catering to China’s demographic, is closely modelled on Jordan’s famous Liverpool FC sought to address this problem according to New Balance’s McKinnon, is ‘Jumpman’ silhouette and the company by releasing a cut-price – yet still official that brands have to adapt their western has become so well established that many – club shirt specifically for the Chinese mindset to an eastern one. “You must be Chinese consumers don’t realise the shoes market. The shirt is not made by usual kit willing to see the issues as they see them, not on sale in Qiaodan stores are not actually real manufacturer New Balance, but the main just legally, but culturally,” he says. Nike Air . difference is the price, with the unbranded But with Chinese companies increasingly The NBA legend has waged a lengthy battle shirt selling for $30, or roughly one third of having to defend their own IP in China, the in the courts, earning a ruling in December the New Balance version. thought is that – eventually – the courts there last year which granted him the rights to his While music labels, food and beverage will need to protect those rights. “Things are Chinese name in China. But with Qiaodan companies and cosmetic firms have all tried certainly improving,” says McKinnon, so well established in China and now being lower pricing in the Chinese market, this “But to what degree remains uncertain. legitimised outside the country through is a new experiment for the major football The increased damages awards of late still are sponsorship deals, such as the one it signed clubs, although Leicester City offer a cheaper not sufficient to act as a deterrent to future with Fisu, that ruling remains something of a version of their shirt – without the Puma counterfeit action, but I am optimistic one hollow victory. brand – in Thailand. day we will get there.” Z

12.17 : SportBusiness International 86 EVENT FOCUS : INVICTUS GAMES

INVICTUS GAMES | THE RISE AND RISE OF “THE MOST IMPORTANT SPORTS COMPETITION IN THE WORLD”

F The third staging of the Invictus Games took place in Toronto from September 23-30 F This year’s event featured 550 athletes drawn from 17 nations, compared to 400 competitors from 13 countries in 2014 FToronto’s edition was backed by significant government cash and around 60 corporate sponsors

Prince Harry shakes hands with US flag bearer Christy Wise during the closing ceremony of the Invictus Games 2017 in Toronto (Getty Images)

12.17 : SportBusiness International EVENT FOCUS : INVICTUS GAMES 87

“By bringing these international games with the support and endorsement of Prince Harry for this cause – I don’t know how you beat it. What we saw across the country, with ticket sales and interest and our followers online, was a massive demand that we didn’t even manufacture”

MICHAEL BURNS, ORGANISING COMMITTEE DIRECTOR, TORONTO 2017

BY MARK BISSON There was a moral imperative to provide Games, Reid knows the scale of the task hen Prince Harry launched opportunities for the ill, injured and sick,” facing organising committees charged with the Invictus Games in London he says. “We didn’t know whether or not staging the event at short notice. in 2014, the foundation he the sport would be compelling. Some of Orlando and Toronto were put on a fast helped set up could not have the races and matches have been absolutely track, piling the pressure on organisers. Wenvisaged the huge impact of the sporting extraordinary. Australia might have waited longer, but the event for wounded, injured and sick service “We didn’t know what the public reaction foundation embraced the country’s huge personnel around the world. was going to be. We thought there would enthusiasm and plan for the Games, and Fast forward three years and the Games probably be an audience, perhaps the Help decided not to stall. – harnessing the power of adaptive sport to for Heroes supporters and people who “We realised that what these guys and inspire recovery, support rehabilitation and already knew the story. girls needed was opportunity now, not create more understanding and respect for “But what was amazing was it involved opportunity deferred. What people needed military personnel and veterans – is going a whole lot more people; it didn’t seem to was something to train for, not something from strength to strength. differentiate between people who had a which would lose its cadence and then Riding on the coat-tails of London’s military background or particular link with reappear later on,” he says. successfully-staged 2012 Olympic Games, the military and anyone else.” While critics of the Olympics frequently Prince Harry, who served for 10 years in fire accusations of gigantism, the Invictus the armed forces, was inspired to develop Altered perceptions foundation seems to understand it cannot the Invictus concept after a trip to the 2013 The effect of the inaugural Games in 2014 maintain the event’s rapid evolution, not in the US. was to “recalibrate the relationship between least because “it is an expensive thing to do”. In London more than 400 competitors the public and the military”, altering So will the Invictus Games reach its peak from 13 nations took part in nine adaptive perceptions of the commitments and size in Toronto and Sydney? sports. The third edition in Toronto, from challenges servicemen and women and their Different factors are at play that don’t September 23-30, followed the event in families have faced. apply to the Olympics, Paralympics or a Orlando last year and featured 550 athletes Internationally, he says it has had a continental multisport Games, Reid says, drawn from 17 nations who participated in profound impact in some countries “we notably there being “no pipeline of people” 12 sports over eight days of competition. didn’t even know we were reaching”. developing themselves to participate in the and made their debuts. It has sent an inspirational message to event. There are instead “fresh people rising The adaptive sports were archery, athletics, rehabilitating military personnel, changed to the challenge” among battle casualties indoor rowing, , road cycling, attitudes to disability sport and altered the who have served their country. , swimming, wheelchair way countries integrate people into society. Increasing the number of athletes and basketball, wheelchair tennis and wheelchair Reid admits the foundation sports, and lengthening the programme are rugby. Golf was new to the Games. Canada’s “underestimated the power and impact the also not on the radar. Many athletes will love of ice hockey led organisers to introduce [London] Games would have on individuals”, participate in multiple sports at the Games para ice hockey as a demonstration sport. referring to the applications to take part in anyway. Reid says the approximate 500 Despite the short timeframe to organise the 2017 Invictus Games – 56% of people who participants mark for Toronto 2017 is “about recent Games, the appetite from host cities is applied to the Great Britain team are new to what’s affordable”. undimmed. In October 2018, Sydney will host the Games. Sydney 2018 will likely have another nation the fourth Invictus Games with 10 adaptive With Sydney on the horizon and another and a different mix of sports. “I don’t think sports to be staged in venues including host city coming for 2020, the Games is it’s going to become multiples of the number Sydney Olympic Park and Sydney Harbour. nestling comfortably into the cluttered of competitors. We won’t see it [sports Dominic Reid, managing director of the international sporting event calendar. programme] continuing to grow,” he says, Invictus Games Foundation, which delivers “What we have done is lit a beacon for a lot adding that future host cities may bring in the Paralympic-style multisport event, tells of people and we have a moral responsibility sports of national appeal to replace events SportBusiness International that the Games to keep that lit,” Reid says. “I don’t know already on the programme. has “exceeded our expectations”, with many quite what the future looks like. It’s difficult Reid won’t reveal financial figures, people now registering “more than a flicker to see us sustaining an annual event on the but describes the foundation as “budget- of recognition” about the Invictus brand. scale we have at the moment.” conscious”. Inevitably, Toronto 2017 cost “When we started, we knew we could put Having been responsible for the more to deliver than London 2014, but the on the Games; we knew it was a great idea. operational delivery of the London Invictus organisation worked to “engineer the budget

12.17 : SportBusiness International 88 EVENT FOCUS : INVICTUS GAMES

down” and is wary of ballooning costs associated with staging mega-events. “It’s not appropriate for it to carry on growing,” Reid says. While sponsors flock to partner with the Olympics, the commercial imperatives for the Invictus Games are different given that it is a charity event. Nonetheless, Reid emphasises the importance of bringing them on board. “We are reliant on commercial sponsorship. We always were,” he says, underscoring the significant role played by the event’s presenting partner, Jaguar Land Rover, since 2014. London’s Games benefited from a small roster of sponsors and raising funds from other partners, such as BT and PwC.

Healthy portfolio Toronto’s edition was backed by significant government cash – the federal and provincial governments each committed C$10m (€6.8m/$8.1m) – and a healthy portfolio of around 60 Canadian corporate sponsors, with presenting partner Jaguar Land Rover contributing C$10m. “Those relationships are very important A record number of countries participated in this year’s Invictus Games in Canada (Getty Images) to us and other organisations too. It’s an expensive business putting on the Invictus Games,” Reid says. “What we have done is lit a home, according to Burns, thanks to more He suggests there is plenty of value for preparation time than previous editions and sponsors attaching their name to Invictus. beacon for a lot of people and a different approach. He adds: “It’s a very visible and very relevant we have a moral responsibility Over almost two years, organisers spent thing. It addresses broader issues around time activating around the Games. “We were disability and mental health. It opens them to keep that lit. I don’t know able to do a lot of things to promote, excite up and other people up to the extraordinary quite what the future looks like. and inspire a nation rather than just the city nature of the men and women involved in as well as build out events or activities that Invictus.” It’s difficult to see us sustaining are central to our military and their families,” Reid claims the language and the story Burns says. around veteran employment have changed an annual event on the scale we “Like a great start-up company, it starts during the last few years, and event partners have at the moment” to evolve. It gets more sophisticated can learn lessons and shine a spotlight on and more mature. For us, we have been “the single-minded determination not to give DOMINIC REID, MANAGING DIRECTOR, the beneficiaries of two Games and two in… and I think that is really, really valuable”. INVICTUS GAMES FOUNDATION organising committees to learn from and use He cites the interface between Jaguar Land as mentors.” Rover’s investment in technology for good “Dramatically different” from London and supporting the lives of Games athletes as The first-ever Invictus Games national 2014 and Orlando 2016 is how the Toronto “a really fertile space”. flag tour, spanning 37 days, generated a buzz Games was built and programmed, he says. Sponsorship and marketing the 2017 for the event across all 32 Canadian military Augmenting the team hired to deliver the Games proved no problem for organisers, bases, neighbouring communities and further Games with almost 2,000 volunteers with according to organising committee director afield. “great skills and Games experience” drawn Michael Burns. The Invictus Games Foundation’s from Canada and internationally allowed the He says the Games in Canada tapped broadcast partnerships with Canada’s Bell project to widen its ambitions. into a “latent empathy” for the soldiers, Media telco and the BBC1 channel in Britain Toronto’s sports leaders have benefited veterans and their families, recognition of also stoked interest in the 2017 Games across from the city’s 2015 , the sacrifices these men and women made time zones and cultures. recruiting some of the top talent who made serving their country and their indefatigable Under the slogan ‘Transforming empathy them happen. drive to overcome adversity. into empowerment’, the Games message hit Burns says an Olympic-style modelling

12.17 : SportBusiness International EVENT FOCUS : INVICTUS GAMES 89

process in three phases was adopted – strategic objectives, planning and execution: Extra: INVICTUS GAMES IN NUMBERS “That changes how you position the Games, how you organise yourselves and allocate resources, and ultimately how you deliver.” The flag tour and a “massive focus on LONDON 2014 ORLANDO 2016 TORONTO 2017 youth”, a drive to engage millions of young people through education about the Invictus Athletes: Athletes: Athletes: Games in over 10,000 schools, set a new • Over 400 • 550 • Over 400 benchmark for the event. 13 Nations: 15 Nations: 17 Nations: Strong support • Afghanistan • Afghanistan • Afghanistan Burns believes the Invictus Games occupied • Australia • Australia • Australia a unique niche that found strong support in • Canada • Canada • Canada Canada and at future editions. • Denmark • Denmark • Denmark He says: “We didn’t have to build a demand • • Estonia • Estonia for these Games; there was latent empathy • France • France • France across this country to want to help and • Georgia • Georgia • Georgia support our military families especially those • Germany • Germany • Germany who, as a result of their service, have come • Italy • • Iraq back ill or injured. • Netherlands • Italy • Italy “Canadians have demonstrated time • New Zealand • Jordan • Jordan and time again when you give them an • UK • Netherlands • Netherlands opportunity to show their support, they • USA • New Zealand • New Zealand are all in. • UK • UK “By bringing these international Games • USA • USA with the support and endorsement of Prince • Ukraine A record number of countries participated in this year’s Invictus Games in Canada (Getty Images) Harry for this cause – I don’t know how you • Romania beat it. What we saw across the country, with ticket sales and interest and our followers Sports: Sports: Sports: online was a massive demand that we didn’t • athletics • athletics • athletics even manufacture.” • archery • archery • archery He adds: “We were not delivering an • powerlifting • powerlifting • powerlifting adaptive sports programme. We were • indoor rowing • indoor rowing • indoor rowing delivering way more than that. I would say • sitting volleyball • sitting volleyball • sitting volleyball we were delivering therapy. And it didn’t • • wheelchair rugby • wheelchair rugby start on September 23; it started months ago • • wheelchair basketball • wheelchair basketball when the athletes were selected to represent • swimming • swimming • swimming their country.” • cycling • cycling • cycling Both Reid and Burns say the Invictus • wheelchair tennis • wheelchair tennis Games journey offers life-changing moments • golf for participants. “These Games give them • para ice hockey a purpose and a mission that they often have lost as a result of their illness or injury Sponsors: Sponsors: Sponsors: or when they left the service,” Burns says. • Jaguar Land Rover • Jaguar Land Rover Around 60 sponsors including “That’s what makes these Games so much with Ottobock • Walt Disney Company presenting partner bigger and so much more important than • BT • Fisher House Foundation • Jaguar Land Rover any other event or sports competition in the • YESSS Electrical • Wounded Warriors Project world.” • Fisher House Foundation • Fisher Brothers premier partners The Games sold out, Burns says with pride. • PwC (official supporters) • Sage • Fisher House Foundation And with Mike Myers and Bruce Springsteen • Coca-Cola • President’s Choice lending their support at the opening and • Deloitte • Sage closing ceremonies, Toronto 2017 benefited • Experience Kissimmee from high-profile global exposure. • Capital One 12 signature sponsors “This isn’t a Games. This is a movement. • Invacare including: What we are seeing is the tipping point for • Ottobock • Air Canada them. The Invictus Games has really now • Dow Chemical Company • Molson Canadian got its legs,” Burns says, adding that Toronto 2017 took it “to a whole new stratosphere”. Z

12.17 : SportBusiness International 90 NEWS ROUND-UP

Venues & facilities

1. RFU OPEN TO TWICKENHAM NAMING-RIGHTS SPONSOR England’s Rugby Football Union is considering the possibility of signing a naming-rights sponsor for Twickenham, the sport’s national stadium. The RFU’s recently-appointed chief executive, Stephen Brown, said the body is “open-minded” on the subject. The RFU is investing £54m (€61m/$71.7m) on the renovation of Twickenham’s East Stand and Brown said a stadium-wide sponsorship deal could be an option in order to drive further commercial revenues. “We wouldn’t rule out any appropriate commercial opportunity for the venue, the fan base and the stakeholders,” Brown told UK newspaper The Telegraph.

2. LALIGA’S VALENCIA TO RESTART DELAYED STADIUM PROJECT Spanish LaLiga football club Valencia says it is to resume work on its Nuevo Mestalla stadium project. The club halted work on the proposed 61,500-capacity stadium in February 2009, two years after breaking ground on the project, due to financial issues. Valencia said in a statement that it would meet with the local council to discuss plans for the resumption of the project. “The club will start proceedings with Valencia Council for the process of obtaining the licences England’s Rugby Football Union is considering the possibility of signing a naming-rights sponsor for Twickenham (Getty Images) required … to complete the works on their new stadium,” the statement read. “(The) renewed project will be based on optimising 4. SAUDI ARABIA OPENS UP SPORTS 5. WIMBLEDON REVAMPS HOSPITALITY the experience for fans.” STADIUMS TO WOMEN WITH KEITH PROWSE PARTNERSHIP Saudi Arabia has announced that it will The All England Lawn Tennis Club 3. NEW PERTH STADIUM TO HOST permit women to attend sports events for the (AELTC) has appointed Keith Prowse AFL PAIR FROM 2018 first time in the country’s history. as the exclusive official hospitality The AFL Aussie rules football league has Turki Al-Asheikh, chairman of the General provider for the Wimbledon grand slam reached an agreement with the West Sports Authority, made the announcement, tournament. Australian government for the West Coast which was one of a number of initiatives The five-year agreement, which comes Eagles and Fremantle Dockers to begin targeted at supporting and stimulating the into effect from 2019, marks a significant playing at the new Perth Stadium from 2018. sports sector in Saudi Arabia. change in the structure and presentation The 60,000-seat stadium is due to open on The authority “will start rehabilitating of corporate hospitality at the AELTC’s January 21 and the agreement between the the main stadiums in Riyadh, Dammam and showpiece Wimbledon event. AFL, the Labor government and the Western Jeddah to be ready to receive families starting The AELTC said the new arrangement Australian Football Commission (WAFC) in 2018,” Al-Asheikh said, according to the will “simplify and standardise” the route to brings to an end a protracted negotiation Arab News website. market with a single official brand offering, period between the parties. The news marks the latest move in which will be controlled by the AELTC and The delayed signing of the agreement ongoing efforts to ease the restrictions on delivered by Keith Prowse. was reportedly due to the state government women in Saudi society. Last month Saudi Andy Vinsen, managing director at Keith having rejected the AFL’s demand to have women were invited with their families to Prowse, added: “We already have an award- other sports subsidise any income shortfall a sports stadium for the first time to attend winning proposition and are excited at the following the move to the stadium. the annual National Day celebrations at King opportunity to take a holistic approach to The league had reportedly threatened to Fahad Stadium in Riyadh. hospitality spanning inside and outside of remain at Perth’s Domain Stadium next year Al-Asheikh recently appointed Princess the grounds, doing what we do best – define, in protest, although WAFC chairman Murray Reema bint Bandar as president of the Saudi build and deliver world-class hospitality McHenry has rejected this claim. Federation for Community Sports. experiences.” Z

12.17 : SportBusiness International VENUES & FACILITIES : FRICTIONLESS STADIA 91

FRICTIONLESS STADIA | PART 1: PRE-ORDERING DRINKS AND SNACKS AT BATH RUGBY

F Bath Rugby invests in software for fans to pre-order half-time refreshments F Solution required to minimise queuing at constricted ground F Club has decided not overmarket the service so as not to overstep capability

The Rec is the home of Aviva Premiership team Bath Rugby, and one of the English game’s most famous arenas (Getty Images)

BY BEN CRONIN not feeling quite so enthusiastic about the Preoday constricted setting. To deal with a situation in which fans were he Bath Recreation Ground – Although the team has been playing at the having to queue for 20 to 30 minutes to buy a affectionately referred to as the venue since 1896, he explains that the club beer or a pint of the local cider at one of the Rec – is perhaps the most iconic does not own the land it sits on, and that he small bars dotted around the arena, the club rugby stadium in the UK. Hemmed endures a constant struggle to create a ‘slick’ recently invested in a piece of white label Tin on one side by the River Avon and on experience for fans in a space that is barely software from mobile and online ordering another by the Palladian architecture of big enough to meet league regulations. firm Preoday. The software allows us to the World Heritage city, the home of Bath “The stadium is a pretty temporary, pre-order our half-time drinks and snacks Rugby makes for one of the more intimate cobbled-together affair,” he warns, the day on the Bath-Rugby-branded app the night and atmospheric experiences in the English before we visit to watch a league match before the game and then collect them from Premiership. between Bath Rugby and Worcester Warriors. a dedicated bar at half-time during the match However, while local and visiting fans “You are squashed in every direction in terms the following day. might get misty-eyed about making the of providing bar provision, for providing Once the user has entered their payment journey from the Georgian city centre queuing space, for making it a quality fan card details, the app has been designed to into the cosy venue, Alex Cohen, head of experience away from watching the actual allow for the pre-ordering of snacks and operations for the club, can be forgiven for rugby itself.” drinks in just four clicks. The removal of the

12.17 : SportBusiness International 92 VENUES & FACILITIES : FRICTIONLESS STADIA

Continued from previous page...

Preoday’s app allows fans to make purchases via their mobile (Preoday) The queue for fans who haven’t pre-ordered drinks (SportBusiness International) need for cash in the transaction and the fact He says that he chose the Preoday software “We’ve got a private network for the staff to that the app allows bar staff to pre-prepare over its competitors because of the product’s use, to make sure we’re resilient. drinks orders takes some of the friction out ‘minimal data requirement’ and the fact that “The app has been designed in such a way of the process. it would be simple for bar staff to use. that the data requirement of it is absolutely “It’s quick and easy,” says Bath fan Duncan “One of the things that was really miniscule, so you’ve got much more chance Ball, who joins us in a queue of just three important to me was the simplicity with of being successful with a very poor 3G/4G people at the pre-ordering collection point. which it can be operated by the staff, because signal than you would do with something a “Why wouldn’t you use it?” we have a turnover of staff,” he says. bit more data-hungry. But it does still have its Looking towards the much larger queue “There are two elements to the back-of- challenges. When the stadium is full, it’s a hell that snakes towards the regular bar next house software used: one is my use and my of a challenge to get a signal on anything.” In door, Duncan has shrewdly decided not to let catering events manager, which is all the detail an ideal world, however, he says fans would other fans in on the secret. and the analytics, and inputting codes and order drinks before they get to the ground. “The queues are quite long, but if you tell menus. Although there’s a lot to it and it’s very “That’s the great thing about the app. the people about the pre-ordering service, detailed, it’s also very simplistic to use. But That’s the thrust of it actually,” he says. “You the queues in here are going to be quite long, the experience for the member of staff who’s can order it days in advance or you can order so I don’t tell anybody,” he says. stood on the bar and providing the customers it as you’re walking down to the ground half with their beer is outstanding, because it an hour before as well, so that’s where the Balance really is as simple as looking for their name on drive is; to capture that market and get as Cohen admits there is a balance to be struck a list and clicking the checkbox to say you’ve much of that tucked away as possible.” between encouraging more fans to use the handed over their drinks.” Preoday argues that the hospitality sector app and ensuring it remains as pain-free as is 10 years behind the retail sector in using possible. For this reason, he says the club Connectivity pre-ordering software to better serve has deliberately decided not to overmarket Cohen says the only weak spot in the system customers, but thinks the technology is the service while he gets to grips with the is the quality of the connectivity in the slowly beginning to take off. The Aviva practicalities. stadium, which can make it difficult for fans Stadium in Dublin, the Epsom Downs and “We’ve just got to be cautious that we to order drinks while they’re at the ground Bath Racecourse are some of the other venues don’t overstep our capability,” he says. rather than the evening before. Owing to to have invested in the software recently. “The worst thing we could do is oversell the planned stadium redevelopment in “This is the direction the marketing is it, overmarket it and then get swamped on roughly two years’ time, he says that the going,” says Cohen. “I’m not sure it will matchday, and is actually no better. club is reluctant to invest in better Wi-Fi exclusively be this, but it will be a very “The supporters are all very vocal with infrastructure in the short term. significant part of the market over the next each other, so if it loses its credibility, we lose “That is the one drawback: the five, 10, 15 years and I want to be ahead of it for good.” connectivity for the customer,” he says. the game.” Z

12.17 : SportBusiness International VENUES & FACILITIES : FRICTIONLESS STADIA 93

FRICTIONLESS STADIA | PART 2: WIRELESS CHARGING

An increasing number of sports stadia are installing wireless charging in hospitality suites and communal areas to cater for the latest generation of mobile phones. Ben Cronin asks Dan Bladen, chief executive of wireless charging company Chargifi, about the technology.

September this year from Apple that wireless charging has been integrated in its latest phone models, we have seen increased consumer expectations for the technology. Seventy-three per cent of consumers we surveyed recently wanted the opportunity to use wireless charging away from home, immediately.”

SBI: Which sports venues have Chargifi worked with? DB: “Premium and VIP attendees at the recent Swiss Indoors ATP World Tour 500 in Basel had access to wireless charging facilities. Further afield, wireless charging has been installed in the new Loge suites at the Mercedes-Benz Stadium in Atlanta, the home of the Atlanta Falcons NFL team. “Inside the walls of the suites our wireless charging solution allows spectators to place phones on the counter and charge without ever having to plug it into an outlet. Twickenham Stadium, the home of England Rugby, also brought wireless charging technology to the NFL games it hosted.”

SBI: What sort of equipment needs to be installed and how expensive is set up in sports stadia? DB: “The technology requires a transmitter to sit under a surface that is then powered by Dan Bladen, CEO and co-founder, Chargifi, tells Ben Cronin about wireless charging batteries or DC cabling – there is no need to make expensive modifications. This means SportBusiness International: How does used for phones and laptops, and in the stadia no longer need to have unsightly wireless charging work? future the scale will increase so cars could be cables as well as having to provide and Dan Bladen: “Wireless charging, broadly wirelessly charged as well.” replace charging cables constantly. speaking, is the transfer of energy through “Software, in the form of a cloud- the air between a transmitter and a SBI: What would the experience be like connected management and monitoring receiver (in this instance a phone). Today for a fan visiting a stadium with wireless platform, can be accessed from a web this is possible over short distances using charging? browser. This ensures that stadia can technology called electromagnetic induction. DB: “Venues are typically installing their remotely monitor and maintain a charging Practically speaking, this is achieved by wireless charging facilities in hospitality network once it’s in place – from proactive embedding wireless power transmitters suites, for example the surface of a table or failure detection and response to automatic within or beneath table-top surfaces. bar. For fans, this means a better and more firmware updating – to keep infrastructure “The transmitter beneath the table is seamless experience all round, from using up and running 24-seven. connected to the venue’s mains power. If QR codes on smartphones as entry tickets, “The team could also use the Chargifi a user places a wireless-charging-enabled to taking photos and posting on social media software development kit and build wireless device above the transmitter (such as the during an event. All of these activities would charging into their mobile apps so that they latest iPhones), it will draw power from the not be possible without a charged phone. can engage with fans while they are on the transmitter and recharge. Today this is being “Following the announcement in wireless charging network.”

12.17 : SportBusiness International 94 VENUES & FACILITIES : FRICTIONLESS STADIA

Continued from previous page...

SBI: Does the technology work across all the user as they charge. This translates to SBI: Are there any other commercial of the latest generation of phones? businesses being able to combine hyper-local benefits to installing the technology? DB: “Wireless charging was first built into location data and blend that with their Wi-Fi DB: “For venues, the opportunity that exists smartphones in 2009. Today many Nokias, data. with wireless charging and the impact it Samsungs, Google phones and the latest “The process carries a number of could have is far-reaching. On one level it Apple iPhones come with wireless charging advantages, as businesses can subsequently meets the consumer’s demand for power and, built in. Since Apple’s announcement of understand more about their customers, secondly, it provides a simple way for them to wireless charging inclusion in the iPhone analysing their behaviour from one particular deliver an impactful value-add, both in terms X, over 30 companies have joined wireless store location and contextually engaging of customer experience and as a competitive charging standards. with consumers whilst they charge. An differentiator. “If a device does not support wireless example of this might be in-seat ordering “Further to the customer experience, charging, users can connect a universal via wireless charging. This is due to the fact venues that provide wireless charging also charging dongle to their charge port to enable that Chargifi is able to pinpoint the exact attract greater footfall, drive repeat visits and wireless charging – a bit like the USB Wi-Fi seating location of any user in relation to can increase user dwell time, with people dongles that were used before Wi-Fi was the venue’s network, in a way that Wi-Fi sitting down to charge for 45 minutes on embedded directly into laptops. These won’t and beacons cannot due to accuracy average.” Z be around for long now that manufacturers limitations.” are all rushing to put wireless charging into Dan Bladen is a 28-year-old entrepreneur. their latest handsets.” SBI: Are there any health concerns about He says he came up with the idea for Chargifi the technology? while travelling across India and South America SBI: Can the system be used to gather DB: “Electromagnetic induction is very safe with his wife in 2011. Finding power for their data about event attendees and crowd to use. To reassure you, it is already used in phones and devices was their biggest problem, dynamics? many of your household items, such as your he realised that they made very strategic DB: “The latest technology enables brands electric toothbrush and medical devices. decisions about coffee shops and restaurants to monetise their investment in wireless In many ways, it is safer than plugging into they went into because of the availability of charging by providing a connection between a wall socket and less likely to give you an power so they could connect with family and the business providing wireless power and electric shock.” friends back home.

FRICTIONLESS STADIA | PART 3: PUTTING THE FANS IN CONTROL

F Merchants at Levi’s Stadium complete 10 per cent more transactions thanks to Visa upgrade F Microsoft tablets allow users to control the environment in hospitality suites F Jets Rewards programme encourages loyalty and cashless transactions

BY BARRY WILNER as in-seat ordering in club sections through smartphones and tablets (6.1 billion) by 2021. Visa Checkout, ultimately speeding up the “We are really keen on figuring out the hat’s the worst part about average transaction time. Owing to these most seamless and frictionless set of payment going to a sporting event, after upgrades, merchants at Levi’s Stadium can experiences that fans can have across the your team losing? Next in line now complete an average of 10 per cent more country,” says Chris Curtin, Visa’s chief brand might be, well, standing in line transactions per game. and innovation marketing officer. W– for food or a beverage or a souvenir. “Most fans want to get back to their With that in mind, Visa and Microsoft have Transaction time seat and watch the true action on the field. both entered the marketplace with initiatives While the queues will never completely We want you to go there with a sense of designed to reduce waiting times, enhancing disappear, the transaction time has improved security and trust and expectation, make the the experience for attendees. so that fans can get back to their seats more experience as seamless as we possibly can and Visa partnered with Levi’s Stadium in quickly to enjoy the action on the field. return you to what you came for, watching the Santa Clara, California, home of the NFL’s And consider that of the 2.6 billion game, as quickly and efficiently as possible.” San Francisco 49ers and site of the 2016 smartphones and tablets worldwide, 68 per With many fans preferring to take in Super Bowl, to help upgrade their payment cent were capable of completing mobile NFL games on TV and other devices, or in systems through the addition of more than payments in 2016, according to the Cisco restaurants and bars, competition is intense. 550 PoS (Point of Sale) terminals with Quick Visual Networking Index. Cisco forecasts Finding ways to make a trip to the stadium a Chip for EMV contactless technology, as well these numbers to increase to 93 per cent of special occurrence is crucial for teams.

12.17 : SportBusiness International VENUES & FACILITIES : FRICTIONLESS STADIA 95

Levi’s Stadium, the 68,500-capacity home of the NFL’s San Francisco 49ers (Getty Images)

“The San Francisco 49ers franchise is the Surface tablets at Levi’s Stadium. to make purchases at games with Jets Cash. dedicated to providing fans at Levi’s Stadium “We have seen best-in-class adoption and Fans can load money on to their Jets Rewards state-of-the-art experiences extending beyond usage of our Microsoft Surface tablets in our card via a portal using a credit or debit card, the field,” says Brent Schoeb, the 49ers’ suites,” notes Moon Javaid, the 49ers’ vice- then use Jets Cash to make payments at vice-president, corporate partnerships (sales president, strategy and analytics. “The fans MetLife Stadium easier. To incentivise fans to and service). “From the moment they walk who purchase our premium offerings really use Jets Cash, they earn 10-per-cent cashback through our gates, the priority is to provide enjoy the experience and flexibility the tablet in Bonus Bucks when making purchases fans with the ultimate game-day experience. provides. From ordering food and wine to through the app. In short, they don’t need to We value our relationship with Visa, as we changing the TV channel or the temperature bring cash to the stadium. continue to implement the latest payment of the suite, we have put the ability to control innovations throughout the stadium.” the experience back in the hands of our fans.” Loyalty benefits Microsoft is already heavily involved in Where the New York Jets are concerned, The general trend of experiences in stadia is NFL matches, because its Surface tablet the emphasis is also on making sure the to encourage fans to stay for longer than the is used by officials to examine replays and fans watch the team at MetLife Stadium three-to-four-hour event. by players to look at in-game photos. Most rather than stay at home. The Jets’ Rewards “Yes, it’s about spectatorship and recently, again at Levi’s Stadium, the franchise Programme leverages data and consumer viewership, but it is also about an has installed Microsoft Surface devices in insights to reward fans for their loyalty. With experience,” Curtin says. “It should be one all of its suites. The tablets run a custom Jets Rewards, fans earn points for attending you walk away with thinking: ‘Wow, a totally application co-developed with Microsoft, games and off-season events. These points different way to buy… isn’t that incredible?’ allowing users to control the environment can then be redeemed for exclusive VIP “We want to be an element that defines of their suite, order food and beverages, and experiences and memorabilia. your Sunday experience while following your purchase 49ers merchandise more easily. Through the Jets Rewards app and mobile favourite team. We can reach new generations The upshot is those fans never have to leave tickets, the team is able to determine who of fans and have the Visa brand mean the their seats. In reality, they never have to take is actually attending games against who is same to those fans as when I was growing their eyes off the field during action and can purchasing tickets for resale value. On the up as a fan of the Washington Redskins. We use breaks in play to handle such business. back of this, the Jets can provide custom can help define tomorrow’s shopping and rewards to fans for their loyalty. browsing experience in a way a lot of different Microsoft Surface The programme works particularly well for companies are at the forefront of doing, such The app for the suites is built directly into season ticket-holders who can use their card as Uber and Airbnb. These are experiences.” Z

12.17 : SportBusiness International 96 LEADERS WEEK

Out of Office LEADERS WEEK | FIVE THINGS WE LEARNED

Matthew Glendinning reports on some of the highlights from the recent Leaders Week conference which took place at Chelsea FC’s Stamford Bridge stadium in London

Fiona Taag, DHL’s head of global sponsorship, discusses the sector in a Leaders Week session (Getty Images)

1. Asics revamps sports strategy and fitness brand” focusing less on individual 2. Where next for private equity? The business challenges facing sports shoes sports and elite sports stars, but embracing A light was shone into the world of private and apparel manufacturers in the US market ‘activity’ at all levels. equity by sports investment specialist where the population is becoming less The impact on sponsorship has already Gerry Cardinale, who at Goldman Sachs active was put in historical context by Gene been seen, with Asics dropping its title deals backed landmark deals with the Yankees McCarthy, president and chief executive of for the Los Angeles and New York Marathons Entertainment & Sports Network and sporting goods brand ASICS America. in the US in favour of events like the Virgin ticketing and merchandising services From the running boom of the 1970s, to Sports Festivals, which promote road running company Legends Hospitality. the surge in sales of athlete-branded as part of a wider health and fitness concept. Cardinale said that private equity’s role in for the ESPN and MTV generation McCarthy told SportBusiness International sports media rights and sports infrastructure in the 1980s, and the blurring of sport and that, in the short term, Asics will have “a development has gone as far as it can, with celebrity endorsements in the 2000s, the great presence in elite sports at Tokyo 2020”, the baton being handed on to the ‘strategics’, industry now faces a decline in both sports but going forward, investment will switch to that is to say, entities with strategic reasons participation and consumption athletes who represent the spirit of the brand for buying sports-related business. of sport. rather than a specific sport. Cardinale did say that there was a final “If the ice is melting on the periphery, Existing kit deals with Australian rugby frontier of value generation in terms of where will we be in 10 years?” McCarthy union and cricket governing bodies are not the live event experience. “There has been asked. The answer for Asics is to change under threat, however. “The climate and an explosion in asset value of professional “from a footwear manufacturer to a health market is very different in Australia,” he said. sports. What has lagged behind is the

12.17 : SportBusiness International EVENT ROUND-UP : LEADERS WEEK 97

“There’s a paralysis of choice on esports: Overwatch, , Cloud 9 or Immortals, so many choices and brands don’t understand the difference”

NOAH WHINSTON, CHIEF EXECUTIVE, IMMORTALS

performance,” he said. “People have to take In terms of contract negotiation, Rakuten’s hours of practice and then go on to host their seriously that these are real businesses and global marketing head, Rahul Kadavakolu, own radio show for another three or four need sophisticated people and sophisticated advised sponsors to focus on a handful hours,” said Fiden. “The relationship with the capital, and use real [value] metrics… not just of contract pages and leave the rest, like fans is remarkable.” ‘build it and they will come’.” number of replica shirts or tickets, to the Cardinale could also envisage future lawyers. 5. Digital spurs renewals for Real Madrid investments in youth sports – colleges He told SportBusiness International The decision by adidas chief executive Kasper and high schools – in the US. “The fan that player time, exclusive content and Rorsted to switch the brand’s advertising attachment in the US is such that there are integration with new digital channels, such spend from traditional advertising media to very loyal fans to these teams; extend that as as messaging or social media platforms, were digital was “good news” for Real Madrid and a parent to a child and it’s very sticky – but key to the e-commerce company’s objectives. a “smart move” by adidas, according to Rafael how can you professionalise that?” de los Santos Navarro, global digital director Esports, he thought, was not a good bet 4. Confusion in the esports ecosytem for Real Madrid. for private equity. “It makes a tonne of sense There is a confidence, but confusion at the The Spanish giant currently has 33 for [traditional sports team] owners to use heart of the esports sponsorship proposition people working on an increasing number of esports to start transforming Millennials into – confidence because of its growth rate and digital channels – as opposed to just three fans, but, for private capital, people are trying position in the sweet spot of changes in in 2013-14. Real Madrid has 105m Facebook just a little too hard,” he said. media consumption, but confusion because likes, of which less than three per cent are brands and agencies are uncertain where to located in Spain. Indonesia has the biggest 3. Data, content and technology play in the sport’s ecosystem. Facebook presence with 10 to 11 per cent of Discussions around data, content and Noah Whinston, chief executive of the the total. technology will be key to the future of sports Immortals team, summed up the dilemma: The club’s digital platforms generate direct sponsorship, according to a panel featuring “There’s a paralysis of choice on esports: revenue from advertising, but also indirect leading sponsorship executives from DHL, Overwatch, Twitch, Cloud 9 or Immortals. So revenue from renewals by existing sponsors. PepsiCo and Rakuten. many choices and brands don’t understand “Because of all these communication On data, Fiona Taag, DHL’s head of global the difference. We have to present more in channels, adidas has seen a double-digit sponsorship, said that rights-holders need why teams add unique value where leagues increase in e-commerce sales per year and to research their fan bases more regularly to don’t and vice versa.” this is something that is put back on the table be credible partners at the negotiating table. Daniel Fiden, president of the Cloud 9 in renewal talks,” De los Santos Navarro told “What insights can you bring to the table? esports team franchise, argued that attempts SportBusiness International. Is it three-to-four-year-old data or has it by brands and agencies to mitigate risks by “People still watch games on television, been updated every year or six months?” she covering a number for esports properties but there’s a more engaged audience on asked. devalued the credibility of their association digital. For example, adidas used to run Mark Kirkham, PepsiCo’s head of with the sport. advertising campaigns with the same player marketing and innovation, pointed to But he said that the biggest challenge for and the same jersey. Now, because of digital, the customer data gathered by esports esports teams was how to value the number they can offer the shirt to people who like organisations as a model. Not only do esports of impressions they notched up on digital different players and know whether they are properties accumulate customer data directly platforms. “Teams are undervaluing our first-year or second-year buyers and so on.” from their digital consumption path, but the inventory across the board,” he said. “It’s De los Santos Navarro was speaking at data can be changed every 10 minutes. a bargain when you think about how much a product presentation for TOK TV, an Changes in media consumption habits value we’re generating.” app that allows fans to talk and text each are also driving demand for second-screen Cloud 9, he said, was over-delivering with other during games. The app is monetised viewing in venues. Taag said: “It’s surprising non-endemic brands to assist in longer term by sponsor messages and advertising, and how many venues are not connected… I want relationships. For example, he gave T-Mobile generates direct income for adidas through to see highlights and content packages during branding on Cloud 9 shirts during coverage timely product offerings. the 90 minutes of the game.” on ESPN, even though it wasn’t stipulated in The final whistle of last season’s Uefa Brands should also learn how to harness the initial contract. Champions League final, for example, data better. The data insights from DHL’s Both Whinston and Fiden highlighted coincided with peak engagement rates and an sponsorship of rugby sevens, Taag said, the unique relationship esports fans have invitation to buy the Real Madrid shirt. “Get could be applied to DHL’s Rugby World Cup with the players as another value driver for them while emotions are high,” said TOK TV partnership. sponsors. “Cloud 9 players will do eight chief executive Fabrizio Capobianco. Z

12.17 : SportBusiness International 98 HEADLINERIN ASSOCIATION : JEROME WITH CHAMPAGNE GLOBE SOCCER

GLOBE SOCCER | THE INTERNATIONAL FOOTBALL EVENT THAT LIGHTS UP DUBAI EVERY YEAR

and Best GCC Club. As we approach the coming edition of the Awards, the list of nominees for the main categories is taking shape. Over the last ten years, Ronaldo, Messi, Real Madrid and Barcelona have dominated. The 2017 race is still open and there are sure to be surprises. Ronaldo and Messi face competition from Jr, , , and Kylian Mbappé for Best Player, while coaches such as , Massimiliano Allegri, José Mourinho and are in the running for Best Coach. For Best Club, Monaco, Real Madrid and he Globe Soccer event will return to confederations (Uefa, Concacaf, the AFC) Manchester United have qualified by their the magnificent Madinat Jumeirah and presidents of clubs such as Real Madrid, major achievements during the last season. Hotel for its ninth edition on 27 and Barcelona, Atletico Madrid, Juventus, Benfica Best Agent will be decided between Jorge 28 December. and . Mendes, and Alessandro Lucci. TAgainst the backdrop of the Dubai In 2015, presented his International Sports Conference (promoted programme for the 2016 Fifa presidential Food for Champions by the Dubai Sports Council), Globe elections on the Dubai stage and subsequently On the evening of the Awards, Globe Soccer Soccer brings together the most important returned to the Emirates last year to affirm offers all guests a gala dinner prepared by protagonists of world football. what had been done during his first ten the greatest international chefs – a culinary It is the only event that allows months in office. experience known as Food for Champions. intercontinental dialogue between the highest Food for Champions promotes a balanced officials, clubs, leagues and federations, giving The Globe Soccer Awards cuisine as the players’ principal ally and not voice to top executives, footballers, coaches, At this year’s event, Globe Soccer will once only that: its message is that what is good referees and agents from all over the world. again honour the luminaries of the football for the player is good for those who aim to Over the years, the event has evolved world in the Globe Soccer Awards. pursue a healthy lifestyle. into one of the leading football conferences Awards will be issued for Best Player, Best worldwide, a singular meeting for those Coach and Best Club, as well as the Career Globe Soccer and Charity working in sports to share their experiences award previously won by football greats such Debuting this year thanks to the support of and grow together. as Del Piero, , Lampard, Zanetti, Pirlo, CharityStars, the fundraising specialist for Eto’o and Inzaghi. high-end galas, Globe Soccer is holding a A two–day Workshop in a dream location Also recognised are those whose work in special auction alongside the Gala Dinner. Globe Soccer and the Dubai International the football business is usually overlooked, The goal is to raise important funds for the sports conference takes place every year with awards for Best Agent, Best Referee and local philanthropic organization Dubai Cares, in one of Dubai’s most exclusive hotels – Best Director. launched in September 2007 by H. H. Sheikh The Madinat Jumeirah Hotel, an authentic In recent years new awards have Mohammed bin Rashid Al Maktoum, Vice recreation of ancient Arabia. been added to specifically recognise the President and Prime Minister of the United The current format consists of a two–day development of football outside of Europe, Arab Emirates and Ruler of Dubai, tirelessly workshop where important guests will discuss and to further affirm the continuous need to working to improve children’s access to the issues of great relevance to all those who internationalise the sport. quality primary education in developing operate in the world of football. With the collaboration of Kooora – the countries. Among the many illustrious visitors who, well–known online sports information Over the years, Globe Soccer has carried throughout the years, have participated in platform in the Arabic world – awards its message from Dubai – the city of the the event, Globe Soccer has had the honour exclusively dedicated to Arab football were future – to every part of the world. of hosting presidents of Fifa, its regional created: Best Arab Player, Best GCC Player It looks forward to welcoming you.

12.17 : SportBusiness International ROUND-UP 99

Conferences

SOCCEREX ASIA FORUM 2017

When: 4-5 December Where: Grand Hyatt, Doha What: A conference and exhibition bringing together buyers and suppliers in football across the Middle East region. Who: This year’s event features presentations by Hicham El Amrani, former secretary general of the Confederation of African Football (CAF); Ramon Calderon, former president, Real Madrid FC; Jerry Newman, sport partnership lead, EMEA, Facebook; and Gérard Houllier, global head of football, Red Bull. Tickets & more info: www.soccerex.com/events/asian-forum-2017

SVG SUMMIT SPOBIS SUMMIT When: 11-12 December When: 30-31 January, 2018 Where: New York Hilton Where: Düsseldorf, Germany What: A conference covering sports production for broadcast distribution, content What: Conference and exhibition covering creation, venue operations, asset management and digital. the sports business with a ‘special focus’ on ‘digital transformation and Who: Speakers include Kevin Callahan, director of technical operations, Fox Sports; John Skipper, ESPN president & Disney Media Networks co-chairman; and John Ward, AT&T internationalisation’. Entertainment Group, SVP, content operations. Who: The speaker line-up includes Karl- Heinz Rummenigge, chairman, FC Bayern Tickets & more info: www.thesvgsummit.com Munich; Chris Bate, vice-president, Under Armour; John Gleasure, CCO DAZN; and Jean Todt, president, FIA. GLOBE SOCCER 2017 Tickets & more info: www.spobis.de When: 27-28 December 2017 Where: Madinat Jumeirah Hotel, Dubai What: Two-day conference featuring leading executives, officials, coaches, players and referees from clubs, leagues and federations from the world of football (see opposite page). Who: Previous speakers at the event have included Fifa president Gianni Infantino, who presented his programme for the 2016 Fifa presidential elections on the Dubai stage in 2015. The Globe Soccer Awards will also honour the best player, best coach and best club, as well as the career award previously won by football greats such as , Xavi, , and Samuel Eto’o. Tickets & more info: www.globesoccer.com SPORTS PERFORMANCE DATA AND FAN ENGAGEMENT SUMMIT When: 30-31 January, 2018 CALENDAR DECEMBER 2017 – JANUARY 2018 Where: Westin St. Francis, San Francisco What: Data-focused conference featuring digital curators and coaches from global sport. Date Event Location Website Who: Confirmed speakers include www.soccerex.com/events/asian- 4-5 December Soccerex Asia Forum Doha forum-2017 Laura Froelich, global director of sports partnerships, Twitter; Graeme Harrison, 11-12 December SVG Summit New York www.thesvgsummit.com head of digital, America’s Cup; Ali Russell, 27-28 December Globe Soccer Dubai www.globesoccer.com chief marketing officer, Formula E; and Sam Li, head of content acquisition and strategic 30-31 January, 2018 SpoBis Düsseldorf www.spobis.de partnerships, Sina Sports. Sports Performance Data & www.sports-performance-fan- Tickets & more info: 30-31 January, 2018 Fan Engagement Summit San Francisco engagement.com www.sports-performance-fan-engagement.com

12.17 : SportBusiness International 100 FAN XP : , FLORIDA

The Secret Fan THE SECRET FAN | A NIGHT OF MAGIC IN FLORIDA Richard Mulligan swaps Disney’s Magic Kingdom for an evening of NBA wizardry in Orlando

F NBA team Orlando Magic, located just a few miles from Walt Disney World, are forging strong ties with the world-famous theme park F Gametime tickets partnership helps Magic reach Millennials and casual fans more effectively F Daktronics screen at the Amway Center offers mix of partner messages, instant replays, entertainment and match statistics

Orlando Magic’s Amway Center, opened in 2010, is one of the NBA’s most impressive venues (Getty Images)

BY RICHARD MULLIGAN sized mice and ducks for a week, the sports with last-minute tickets specialist Gametime connoisseur must begin to look at other meant we could leave it to the last moment hen you’re an entertainment options. before buying, taking into consideration the venue located just a few miles Florida’s most famous sports teams, the kids’ energy levels, prices and availability. from the world’s No.1 family NFL’s Miami Dolphins and NBA’s Miami Our schedule suggested a Wednesday tourist attraction, you better Heat, are located a good three-hour drive evening game against the New York Knicks Wbe sure that you can cater for mum, dad and from the Disney Resort just outside Orlando. might be a goer, and having downloaded the the little ones. The Magic, on the other hand, are just a $20 Gametime app, I spent the day monitoring Orlando Magic, of the NBA’s Eastern ride in a peak-time Uber away, and with NBA fluctuations in price. Conference Southeast Division, play at the games taking place every couple of evenings San Francisco-based Gametime is taking Amway Center, just 20 miles from the Disney during a packed season, attending a home US sports by storm, attracting Millennials World complex and the 17.5m tourists it match during our two weeks in Florida in their hordes – approximately 70 per cent attracts every year. looked a distinct possibility. of its users are from this demographic – and Time away with the family is fabulous, “But what if the kids are tired by the agreeing partnerships with more than a but after being led by the kids’ love of evening?” my wife asked. Fortunately, the dozen major sports teams. Business magazine rollercoasters, light entertainment and adult- Magic’s new direct distribution partnership Inc. named it the US’s fastest-growing

12.17 : SportBusiness International FAN XP : GFINITY ELITE SERIES 101

consumer brand in August and you can see “San Francisco-based the Craft Beer Bar and a range of reasonably- why. The app was certainly user-friendly and priced concession stands. With little wait there were great deals to be had. We plumped Gametime is taking US to place our order (two cheese burgers and for four Club Level seats. fries, two hot dogs and fries, plus a couple of With mobile tickets secured and added sports by storm, attracting beers and soft drinks for around $70), we ate to our Magic mobile app, we set off for the Millennials in their hordes at one of the numerous stylish bistro tables Amway. We wouldn’t be leaving Mickey and as the atmosphere began to build. Food Donald behind completely thanks to a series – approximately 70 per cent and drink can also be ordered via Express of partnerships between the entertainment of its users are from this Pickup and In-Seat Delivery options on the and tourism giant, and the Magic. The two Venue Next-designed Magic mobile app, an organisations recognised some years ago that demographic” invaluable tool that also allows fans to buy closer links could be mutually beneficial, with tickets and merchandise, and make dining the resort becoming the presenting sponsor reservations. The free Wi-Fi service was of the arena’s atrium when it opened in our mobile tickets in the blink of an eye as good as the food, with full service even 2010. In June 2017 it was announced Disney and then set about getting a few photos in outside the arena, meaning images and video would be the Magic’s first jersey sponsor in the foyer. An eagle-eyed and welcoming from the game could be quickly uploaded to a three-year deal that, according to George hype-crew member introduced himself social media. A. Kalogridis, Walt Disney World president, and offered to get a snap of the four of “symbolises our shared focus of solidifying us together. Reactive to the fact that we Central role Orlando as a world-class city for sports”. were tourists and NBA newbies, he then Entering the arena, we were directed to As well as the Walt Disney World Terrace, enthusiastically gave us a run-down of the our comfortable and spacious seats and the hospitality area that receives considerable Magic team and what to expect from a night were immediately struck by the Daktronics courtside prominence thanks to a neon sign, at our first basketball match. suspended scoreboard, one of the largest and shirt patch, Disney’s presence at the Having been furnished with a few ‘Go of its type in . Big enough Amway Center is substantial, with news of Magic’ signs, we were directed to the elevator to beam videos, social media updates, special offers and advertisements displayed and zoomed up to the Club Level, situated information and adverts simultaneously, on the video screen. Disney also hosted one on the fourth of eight floors. These provided the screen plays a central role in the night’s of the fast-paced timeout entertainment access to Club Level amenities, including entertainment, offering statistics and instant sections out on court, with fans able to win replays that were of particular benefit to prizes by solving a Mickey Mouse-themed the rookie fan. The screen also allowed the puzzle. Magic’s partners to interact creatively with Ratings spectators. Fast-food chain Chick-fil-A’s Modern blend special offer of a free chicken sandwich to The Amway Center itself is one of the most Value 8/10 all ticket-holders when the team grabbed advanced in the NBA, built just seven years Excellent pricing on food and beverages, with their fifth three-pointer of the night was ago for $380m (€320m) with the Magic a family able to eat well in nice surroundings particularly welcome. as developer and primary tenant. Owned for just $70. Match tickets cost as little as After a bombastic light show, the game and operated by the City of Orlando, its was fast and furious, and intervals were $20 on the day via Gametime, with high- exterior is a modern blend of metal and filled by an eclectic mix of entertainment, value terrace sideline seats at around $280. glass, along with ever-changing graphics via from human skittles to dancing and on-court a monumental LED screen wall. Its 180- interviews. Loud music was often played foot tall spire serves as a beacon amid the Ease 8/10 throughout the game, while the newbies’ downtown skyline, reminding international Ample parking at the venue as well as understanding of the action was aided by visitors that this is a sports town too. options via local public transport services. commentary that explained the referees’ The Amway seats 18,500 for basketball Good Wi-Fi outside the arena means decisions and scoring. games and 19,700 as a music venue. Ahead organising an Uber is simple. The Magic Enthused by the Magic’s 112-99 win, it of a game, the arena’s pedestrianised mobile app stores digital tickets and the was only right that we headed to the team exterior was taken over by Fan Fest, offering chance to pre-order food and merchandise. store to pick up a few souvenirs of a great music, food and activities. Basketball fans experience. We grabbed a ball, wallet, cap and and newbies could shoot hoops – aiming for girls’ sweater for around $60. Recommendation 8/10 static, conventional backboards on a stand US sport and its penchant for razzmatazz Orlando Magic may not be the hottest or mini rings attached to the foreheads may be open to mockery from those brought property in US sport, but they offer a great of brave ‘hype-crew’ official helpers. up on the grittier experience of attending The venue is close to Church Street, the night out and the opportunity to watch stars events in Europe, but our night of basketball hub of Orlando’s rebirth as a foodie and of the NBA at a good price. Located so close action in Orlando was wholly enjoyable. entertainment destination. Entering the to Disney World, any sports fans taking a Thanks to the app, we’ve been staying up Amway, the thorough security regime – family trip to Florida would be well advised to to date with the fortunes of our favourite including metal detectors and bag searches head down to the Amway Center. Z NBA team long after our return flight from – was unimposing and speedy. We scanned Florida; it’s a small world after all. Z

12.17 : SportBusiness International 102 COMMENT : KEVIN BRILLIANT

WHAT MYTHBUSTERS CAN TEACH SPORTS LEAGUES In his first column for SportBusiness International, Kevin Brilliant, the Bulls’ senior manager of business strategy & analytics and a behavioural scientist, explains the psychology of queuing

hink back to the last time you went case, it’s even more aggravating. We regret everything that seemed intuitive also to the supermarket. Now picture that we made the wrong choice; regret that if turned out to be true, however, then there choosing your checkout line... we had only made a different decision, things would be no meaning to the term ‘counter- You stare at each line, attempting would have turned out differently. I thought intuitive’. Clearly, we know that term has Tto factor all the relevant variables into this about choosing that other line. Why, oh why, meaning. very important equation: how many people didn’t I?! We have our friends from MythBusters to are in that line already? How many items This is known as a ‘counterfactual’ or the thank for debunking this myth. In addition to does each person have in their cart? Once psychological tendency to imagine how a concluding that pick-a-line is faster, the crew you’ve made your final determination, you situation could have played out differently. also found that... stroll triumphantly to your destination with Our minds naturally gravitate to this mode of the confidence and certainty that you’ve thinking, never more so than after something Fact #2: People overwhelmingly successfully gamed the system. Nobody fools negative occurs. prefer serpentine lines this guy! And therein, as they say, lies the rub. Then it happens. The moment you commit “Faster-equals-better is a Compounding the pain we experience to a line, the line next to you starts moving from regret over choices that didn’t work faster. People in that line are experiencing perfectly intuitive assumption – out is the principle of Loss Aversion: we pure bliss. You’re certain that you just saw one that many companies have disproportionally feel and remember losses one of them throw a smug look in your more than equivalent gains. It’s not a 1:1 direction: “You chose that line? Loser.” no doubt made” relationship; in fact, it’s more like a 2:1 You see people who got in line after you relationship. In waiting-in-line terms, this making their way to the check-out station, This is also the psychological basis for means that for every one time we pick the while the person at the front of your line is “armchair quarter-backing”: Seattle, why slower line, we’d have to make two correct counting out pennies. It’s 2017, who still pays didn’t you run it on third-and-goal in the selections just to break emotional-even. for groceries with pennies?! Get a credit card, Super Bowl instead of passing?! We can’t help Over time, this isn’t possible; luck balances you half-wit! You find yourself screaming at it; the possibility of what could have been out in the end. Just not in our minds. them in your head, cursing your misfortune at drives us crazy. People prefer serpentine from a having chosen a line that included the world’s satisfaction standpoint – even though it is most incompetent shopper. MythBusters slower – for one simple reason: there is no Now there’s a moment of truth… Do I In that spirit, popular Discovery Channel possibility of regret or loss; we literally can’t switch lines? I’ve already invested so much in this television show MythBusters took a turn at be wrong. line… But that line is moving so much faster! cracking the conundrum: “What line format “Our league just conducted this Screw it, I’m going for it... leads to greater satisfaction: serpentine lines study!” That’s the response I got from a You hurry to change lines before the (everyone gets in one long line) or pick-a-line friend – whose family owns a major North person with the 27-item shopping cart makes (you pick your line)?” American sports team – as I began to tell her it there. You don’t care; first come, first The ‘myth’ they were testing? Faster- about the MythBusters experiment. served! equals-better. She continued: “We did some analytics And then it happens...again. Your new line and found that pick-a-line is faster than grinds to a halt, while your original line now Fact #1: Pick-a-line is faster serpentine lines. Based on this, the league seems more like an Easy-Pass™ lane than the than serpentine recommended to all of our clubs that one you were just standing in. Are they even In a recreation of a grocery store, the whenever possible we should adopt the pick- paying?! How is this possible?! MythBusters crew determined that the a-line format, because it’s better for the fan You curse your luck. I can’t win, you think. pick-a-line format is faster than a serpentine experience!” For anyone who has experienced this line by about 15 per cent, not an insignificant I debated how best to break the news to feeling – and I’m assuming that’s everyone – margin when reducing the time spent by her about her league’s conclusion. there’s a fundamental behavioural principle people doing something they hate. “Yeah...” I said to her. “That’s going to be a at the heart of this seemingly irrationally Faster-equals-better is a perfectly intuitive problem.” Z frustration: regret. Not just regret that we had assumption – one that many companies have Kevin Brilliant spoke at the recent Leaders Sport to experience something unpleasant. In this no doubt made (more on this in a minute). If Business Summit

12.17 : SportBusiness International Christophe Simon 858687206, Alex Livesey 865964946, Justin Setterfield 870158384, Michael Steele 865504560

We cover 28,000 sports events every year bringing unrivalled, specialist coverage shot by the world’s best photographers. Our partner relationships with over 60 of the most prestigious brands in sport guarantees unique access.

Whether it’s for editorial or commercial use, get the best and partner with us.

gettyimages.com/sport @gettysport SIMONA HALEP WTA World No.1