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DIPLOMA IN CLUB MANAGEMENT

Real ’s Sustainable Economic- Model

Steven G. Mandis PhD

1 DIPLOMA IN CLUB MANAGEMENT 01 The Industry

THE GLOBAL ESPORTS ECOSYSTEM AUDIENCE GROWTH, RELEVANCE AND APPEAL

2 TODAY’S AGENDA 01 02 03 The eSports FIFA eSports The FIFAe Industry Ecosystem

• The global eSports • Introduction to FIFA eSports • FIFAe tournaments ecosystem • Our Vision and Mission for • Stakeholder benefits • Audience growth, relevance FIFA eSports and appeal

3 DIPLOMA IN CLUB Why Did Real Madrid Care About What Happened at MANAGEMENT GS? The Global eSports Ecosystem Culture Can Change (“Drift”) - Outsiders See It, Insiders Don’t

1970’s

2000’s

5 How I Met Real Madrid

• By chance, I met a Real Madrid Board Member, who introduced me to Senior Real Madrid Executives • He said they were very focused on culture and would find my work interesting • He didn’t know they had read my book • When I met Real Madrid management, I was shocked that they knew about me and my book

• I didn’t know much about the sport of soccer, Real Madrid or European competition • A few of my embarrassing questions: “was Emilio, the vulture, a good player?” and “who is Raúl?”

• After learning about how Real Madrid managed their club, I felt compelled to write a book about their approach • Especially after the books Moneyball and Soccernomics

• I asked for unprecedented access to write the book and to be granted full transparency • I was surprised they accepted – an outsider who doesn’t speak Spanish and doesn’t follow soccer

• At the end of the presentation, I will explain why they accepted

6 6 Before Starting, A Few Things

• People are very passionate about soccer and their favorite clubs • One’s club and one’s identity can be intertwined (I will speak more about this later)

• If I say something nice about Real Madrid, please do not take it as implying anything (absolute or relative) about your club • This discussion is not a comparison of what or who is better or worse • Some clubs share similar traits (so some things I say about Real Madrid may apply to your club too)

• My research focus is on facts, data and analysis to develop a big picture and “probabilities” • I consider exceptions (there are always exceptions), but look at the big picture • Also, when I say “Higher Likelihood” doesn’t mean “Guaranteed”

• When I use the phrase “Real Madrid’s values”, recognize “values” mean different things to different people • Don’t think of values as better or worse – think unique and authentic 7 7 Just A Few Last Things

• Everything in this presentation is my own opinion • This has not been approved or authorized by Real Madrid in any way • I believe Real Madrid management recognize they are not always perfect • Some of my research focuses on pressures that cause management to “drift” from their values or culture • Like most successful management teams they are always seeking to learn and evolve • With that background and those caveats, we can begin

8 8 DIPLOMA IN CLUB MANAGEMENT The Real Madrid Way or La Formula Real Madrid

9 DIPLOMA IN CLUB MANAGEMENT Received Feedback on Drafts of My Book from Experts DIPLOMA IN CLUB MANAGEMENT The Question on Every Sports Executive’s Mind is…

Who won the pickup game (and trash talking) between Michael Jordan and me?

BTW – I am terrible at basketball…and trash talking DIPLOMA IN CLUB MANAGEMENT The Real Question What is the Secret to Building a Successful Sports Team?

• Until Moneyball there were two common beliefs • Money • Talent

• Moneyball added a third • Data Analytics

Anything else? DIPLOMA IN CLUB MANAGEMENT What I Discovered About Money, Talent and Data Analytics

Money and Talent don’t Guarantee Success

Last Champions League Trophy

2008, Since 2015 4x DNQ

SF 2016, otherwise mostly R16/QFs

RU 2020, otherwise mostly R16/QFs

Mostly R16 DIPLOMA IN CLUB MANAGEMENT What I Discovered About Money, Talent and Data Analytics

Money and Talent don’t Guarantee Success

Neither Does Data Analytics

Have not won a World Series with Moneyball

2016 John Henry says Red Sox will rely less on analytics: “I spent at least two months looking under the hood, and came to the conclusion that we needed to make changes.. One of the things that we’ve done — and I’m fully accountable for this — is we have perhaps overly relied on numbers, and there were a whole host of things… …the shift is toward using analytics as just a tool rather than the be-all-end-all. Baseball is a complex, dynamic, living thing that has to really be nurtured on a daily basis, 12 months of the year. I think we were reliant too heavily on analytics.” DIPLOMA IN CLUB MANAGEMENT Why Not Ask One of The Most Successful Sports Teams on the Planet

Which Sports Team Would You Ask?

How Do You Define Success? • On the Pitch – Trophies? • Off the Pitch – Revenues? or Profits? Valuation? Fans? • Both – Sustainable Economic-Sport Model? DIPLOMA IN CLUB MANAGEMENT Most Successful on the Pitch: Real Madrid

On the pitch

13 European Cups / Champions League Trophies Next highest is Milan (7) DIPLOMA IN CLUB MANAGEMENT Most Successful Off the Pitch: Real Madrid

Off the pitch Note the difference between Top 3 and #10-15 #1-3 in Valuation #1-3 in Revenues DIPLOMA IN CLUB MANAGEMENT Most Successful Off the Pitch: Real Madrid

Off the pitch Note the difference between Top 3 and #10-15 #1 Social Media Followers 450+ Million Fans DIPLOMA IN CLUB MANAGEMENT So I Asked Real Madrid (Successful On, Off and Both)

If you don’t have time to read the book, then do what some of my students do, listen to the 26 minute BBC World Service documentary and pretend you read the book DIPLOMA IN CLUB MANAGEMENT What is the Secret to Building a Successful Sports Team?

• Real Madrid told me: You need money, talent and data analytics to compete on the pitch… and off the pitch to increase your probability of success, but culture is the glue that holds everything/everyone together

• Culture is the invisible but powerful force that influences behavior of the members of a group

• To RM, culture means everyone working around a common mission

• Need a culture to get the players on the pitch (and management / operations off the pitch) to work together and sacrifice for greater good

20 DIPLOMA IN CLUB MANAGEMENT Is this surprising? Let’s Ask “Pop”

Gregg Popovich won 5 NBA Titles with the “Small Market” San Antonio Spurs San Antonio is #31 media market in the U.S. (#26 of 30 teams in NBA)

21 What Did Gregg Popovich Say? Culture, Talent and Luck

“Good fortune has something to do with it . . .

It didn’t take a whole lot of genius to draft Tim Duncan . . .

Like any successful franchise whether sports or business, it’s about the people you bring in and their character…

The principles you live by and stick by in good times and in bad times…

I think our culture, that corporate knowledge, is something that sustains us year after year

New people that come in get indoctrinated in the way we do things, our culture, and the leaders pass it on”

22 DIPLOMA IN CLUB McKinsey & Co. Study on the Impact of CultureMANAGEMENT

• Companies with defined and distinguishable cultures provided:

300% HIGHER returns to shareholders than companies without defined or distinguished cultures

• Also concluded, every winning culture has its own authentic personality and soul that can’t be copied

23 DIPLOMA IN CLUB MANAGEMENT What Was Real Madrid Management’s Genius?

• Most often the values of the founder or the owner or a legendary executive is the basis of the culture

• Real Madrid is unique because the community dictates the culture

• The entire strategy both on and off the field is based on the adherence of the values and expectations of their community members

• When culture is drawn from the shared values of the community it can forge extraordinary loyalty, inspiration, strength, passion and identity

24 DIPLOMA IN CLUB MANAGEMENT

When Culture is Drawn from the Shared Values of the Community, The Results can be Extraordinary…

• Loyalty • Inspiration • Strength • Passion • Identity

25 DIPLOMA IN CLUB The Genius…Florentino Surveyed the Socios MANAGEMENT

Ø What values do we want to serve as the foundation for our club?

Ø What attitudes and beliefs about competition and team do you hold?

Ø What are the goals that you want to pursue and why?

Ø What do you expect from the management, the coach and the players?

Ø How do you want to be treated and communicated with?

Ø What kind of atmosphere and experience do you want when you attend or watch the games?

Ø What players (former or current) represent your values and ideals?

Ø What player do you most want to join Real Madrid that is not already on the team?

26 DIPLOMA IN CLUB Survey Results MANAGEMENT

Ø Wanted to go back to 1955 to 1960

Ø Wanted the best players from around the world

Ø Open and multicultural club – social inclusion

Ø Players with their values

Ø Gentlemen and champions

Ø Never give up, will to win

Ø Play beautiful, imaginative and attacking soccer

Ø Respected on and off the pitch

Ø Social responsibility (Foundation)

Ø Economic Responsibility

Ø Transparency 27 DIPLOMA IN CLUB Survey Takeaways MANAGEMENT

Ø Wanted to win with players with values that represent them, playing in a style and attitude they like, and the club managed in a professional and responsible matter

Ø Most of all they wanted to be respected

Ø Ohh…and the player they most wanted was Luís Figo

28 Real Madrid Wrote Down Their Mission Statement

Real Madrid wrote a Mission Statement (codified it for the future)… In business this was starting to become more common by 2000, in sports it was revolutionary

1996 article in Harvard Business Review

29 DIPLOMA IN CLUB Real Madrid Mission Statement MANAGEMENT

Real Madrid Mission Statement “To be an open and multicultural club that is both appreciated and respected throughout the world both for its sporting successes and for the values it disseminates, which, based on the search for excellence both on and off the field of play, contribute toward fulfilling the expectations of its members and followers.”

Does it state “win trophies”?

30 DIPLOMA IN CLUB MANAGEMENT What Is the Stated Mission of Most Sports Clubs? Most people say “to win”

31 The Problem: Winning Is a Goal or a Desired Result, NOT a Mission

Goal Mission Statement • Desired result (not inspirational) • Outlines Why the organization exists • Doesn’t tell the organization Why or How (the inspiration) • For example: “Our Goal is to win the trophy”...but why? • Explains How the organization achieves its vision (values, beliefs) • Player Asks: “Why should I sacrifice myself for the organization?”

• Fan Asks: “Why should I root for this club?”

Writing a Mission Statement isn’t necessary, but it helps 32 DIPLOMA IN CLUB MANAGEMENT A Mission Statement Is Similar to a Playbook For the Entire Organization

Do you draw the play in the dirt? Do you have a written Mission Statement?

33 DIPLOMA IN CLUB Seriously? Isn’t Winning Enough? MANAGEMENT

• Real Madrid won Champions League Trophies on May 20, 1998 and May 24, 2000 • The last time Real Madrid won the European Cup was 1966 • The President was Lorenzo Sanz • One would suspect the President is loved and the seats in the stadium are full

34 DIPLOMA IN CLUB Maybe Winning Isn’t Enough? MANAGEMENT

• BUT the number of Socios DECLINED from 1995 to 2000

Year Socios 1995 66,744 1998 66,483 2000 61,450 2015 91,846

• Only sold out games are El Clásicos

Why?

35 DIPLOMA IN CLUB MANAGEMENT What Was Wrong?

The Problems The Result

• The fans didn’t relate to the values of the players • They elect a new president - Florentino Pérez

• The fans were concerned about economic responsibility and • Pérez signs Figo and starts “Galacticos 2.0” transparency The club was near bankruptcy

• The fans didn’t like nepotism / cronyism (son-in-law, two sons played for Real Madrid) DIPLOMA IN CLUB MANAGEMENT Seriously? Isn’t Winning Enough? (2nd Case)

• Florentino was not the President from 2006-2009 • New President Ramón Calderón won two successive league titles, over 50 years since last back-to-back • Real Madrid won 2 championships and more games in 2006-2008 under Calderón • More than Florentino’s first years in 2001-2003…

• Calderón resigned in 2008-09 under pressure from community members Why? 37 DIPLOMA IN CLUB MANAGEMENT Maybe Winning Isn’t Enough? What Was Wrong?

• The style of play was viewed as pragmatic and no new global superstars were signed • There were questions about suspiciously high transfer fees / commissions and transparency • Real Madrid were even referred to as a “Banana Republic” in the press DIPLOMA IN CLUB MANAGEMENT Seriously? Isn’t Winning Enough? (3rd Case)

• From 2013-17, Juventus and Atlético Madrid were in the Champions League Final 2x Ø 13-14, Real Madrid beat Atlético Madrid Ø 14-15, beat Juventus (who beat Real Madrid in Semis) Ø 15-16, Real Madrid beat Atlético Madrid Ø 16-17, Real Madrid beat Juventus

• But they did not crack the top 10 in revenues during this time…why?

39 DIPLOMA IN CLUB MANAGEMENT Maybe Winning Isn’t Enough? What Was Wrong?

• Atlético Madrid and Juventus play tough, disciplined, defensive, results-oriented style

At the time neither had imaginative, prolific goal scorers

• While Real Madrid and Barcelona regularly scored over 100 goals per , Atlético Madrid and Juventus rarely scored over 70 and 80, respectively

• The style helped them win on the pitch, but what about off the pitch…. DIPLOMA IN CLUB MANAGEMENT Winning And Revenues

Winning doesn’t necessarily lead to revenues

• Actually, academic research shows it’s more likely revenues lead to winning (can afford more talent)

To generate Revenues a club needs a brand, an identity, that attracts fans

• Winning helps provide a platform to showcase the mission, culture, brand, and identity DIPLOMA IN CLUB MANAGEMENT Real Madrid’s Sustainable Economic-Sport Model 1.0

1. 2. 3.

Santiago Bernabéu vision Build biggest stadium to make money With money get best players from around world

4. 5. 6.

Play beautiful attacking soccer. Tour in off-season Support identity / sense of belonging Create tournament to highlight to make money / build brand style, players and identity 42 DIPLOMA IN CLUB MANAGEMENT Sustainable Economic-Sport Model 2.0

We talked about values and culture They are at the center

Let’s move to Identity Which lead to Revenues DIPLOMA IN CLUB MANAGEMENT Aligning Strategy, Values and Identity

• Real Madrid’s community’s values, expectations, and desires ALIGN strategy, culture and identity middle • Bring together a passionate global community by creating shared values felt so deeply that they are synonymous with one’s identity • Impossible to tell where the fan’s identity and as Madridista and the club’s identity and purpose start and stop

44 DIPLOMA IN CLUB MANAGEMENT Real Madrid Is My Life

The history, feelings, moments, emotions are intertwined

Celebrate goal together Celebrate trophies together Celebrate greatness together “Si” 2005 standing ovation for **values

45 DIPLOMA IN CLUB MANAGEMENT Why A Fan Wants to be a Madridista

Sense of belonging, recognition, self-esteem and Identity (”I am a Madridista”)

Game Changer - The and digital technology allows for global membership and active community engagement DIPLOMA IN CLUB MANAGEMENT Aligning Strategy, Values and Identity

What does Harley Davidson make?

Motorcycles?

47 DIPLOMA IN CLUB MANAGEMENT Harley Davidson Creates Feelings, a Lifestyle, an Identity and Belonging They also make motorcycles DIPLOMA IN CLUB MANAGEMENT Harley Davidson Identity Leads to Merchandise

Revenues: Motorcycles & Parts: $4.6 Billion Merchandise/Apparel: $242 Million Est. 30% margins = $73M

Operating Income: $291 Million Est. 25% of total Real Madrid Revenue Breakdown

Most of Real Madrid’s Revenues (47%) come from Commercial

More than Broadcasting (34%) More than Matchday (19%)

Highest 5- year growth is from Commercial (44%)

Broadcast (29%) Matchday (12%)

50 DIPLOMA IN CLUB Yeah…But Real Madrid Wins! MANAGEMENT

What about the Cubs? Before 2016, the Cubs last won the World Series in 1908. But the Stadium sold out every year. The experience and iconic stadium was a driver of identity. Actually, losing and being cursed were part of the identity.

51 51 DIPLOMA IN CLUB The Power of Identity MANAGEMENT

Who Sells The Most Jerseys in the NFL?

• Population? Ø New York (8.5 million) Ø New England (14.4 million)

• “America’s Team?”

• Recent Champions?

52 DIPLOMA IN CLUB The Top 3 Selling NFL Jerseys (2015) MANAGEMENT

1. Green Bay Packers • population 105,139 • Last Super Bowl 2011 2. • 303,625 • 2009 3. Oakland Raiders • 420,005 • Transcend their location / population • 1994 • Appeal to a wider fan base • May not be a fan’s first team, but their second team

53 Green Bay Packers Mission Statement

The Green Bay Packers’ mission is to be a dominating force in professional ’s competitive arenas. On the field, the Packers will continually strive to present their fans with the highest of performance quality available. In their operating activities and relations with the NFL, the Packers will also continually strive for excellence. On-the-field and operating personnel will, at all times, maintain the highest ethical and moral standards in their actions, recognizing that they are all representatives of the Packers franchise and traditions. Overall, the Packers will commit themselves to doing their part in representing the State of Wisconsin with competitiveness, respect, and dignity.

54 DIPLOMA IN CLUB MANAGEMENT When You See This Jersey What Do You Think? DIPLOMA IN CLUB MANAGEMENT When You See This Jersey What Do You Think?

Ritual with Players – Shared Experience with First Super Bowl Lambeau Leap Celebrate together Others – Tailgating Bart Star & Vince Lombardi

Dressing up (name) – Ritual with Players – Singing & Dancing Beer Barrel Polka “Cheese Heads” Ride kids bikes to practice

** again “nick name” / membership / belonging DIPLOMA IN CLUB MANAGEMENT Organizational Structure Can Support Identity

Green Bay Packer Shareholder Real Madrid Socios Ownership Ownership

Sense of “ownership” or “membership” “ours” / “we”

57 DIPLOMA IN CLUB The Steelers Support Identity MANAGEMENT

Team identity of hard work, blue collar, tough Hard hats, blue collar, Shared Experience with Others Personified by players hard work, tough – Terrible Towel

Nickname of player: “Bus” "Mean Joe” Green “Men of Steel” / Tunnel What do blue collar people take to work? Gives kid his jersey in commercial 58 DIPLOMA IN CLUB The Raiders Support Identity MANAGEMENT

Dressing up (name) Style of play Associated with lifestyle Rebel owner – “Raider Nation” Jack “The Assassin” Tatum – Rebels - Fighting Counter-culture Establishment

Other player nicknames Dr. Death The Mad Bomber The Snake The Molester

Rappers identified with brand 59 5 9 Identity is a Way of Life

% of Women Living in NFL home local market that identify themselves as fans Pittsburg 34% Green Bay 30% No other market is above 25%

60 DIPLOMA IN CLUB MANAGEMENT When You See This Jersey What Do You Think? Do you know which team’s jersey this is?

Team Identity? Name one tradition? Style of play? Iconic player/coach?

In last 20 years, they have been in the playoffs 2005, 2007, 2017

As comparison, Oakland Raiders 2001, 2002, 2016

Dallas Cowboys 7x Pittsburg Steelers 12x Green Bay 15x

61 DIPLOMA IN CLUB Lack Clear Identity MANAGEMENT

You must be from Jacksonville The Jersey doesn’t transcend the city

62 DIPLOMA IN CLUB MANAGEMENT When You See This Jersey What Do You Think?

Trophies? Team Identity? Power? Values? Leader / the Best? Name one tradition? Establishment? Style of play? Iconic player/coach? Homegrown player?

Ballon d’Or winners

Hala Madrid?

White Jerseys Never give up? Los Blancos? 63 DIPLOMA IN CLUB Sustainable Economic-Sport Model 2.0 MANAGEMENT

64 DIPLOMA IN CLUB MANAGEMENT Many ways to reinforce an Identity and Values

P Style Rivalries l of a Play y e r s 65 Players solidify identity (reinforce values)

Why Dallas Cowboys are “America’s Team”

Captain America – Roger Staubach Naval Academy graduate, winner Service to country – 4 years before NFL Star on Helmet (best) – even though Cowboys

66 DIPLOMA IN CLUB MANAGEMENT “What About Them Cowboys?” Pressure to Win Can Cause Drift – Last Super Bowl Appearance 1996 (which they won) DIPLOMA IN CLUB Players solidify identity (reinforce values) MANAGEMENT Social Responsibility

68 DIPLOMA IN CLUB Players solidify identity (reinforce values) MANAGEMENT Señorío – Respected, Gentlemen and Champions DIPLOMA IN CLUB MANAGEMENT Academy Grown Players Reinforce Identity We Are From the Same…(share family values)

Lucas Vazquez what values? identity? – not Galácticos (ideal) Attainable: Hard work, sacrifice, teamwork, love for RM 70 Rubber Meets the Road Who Do You Choose? What Was Real Madrid Mission Statement?

This not an actual case. Illustrative example for discussion. These are my opinions only.

• 0.36 GPG • 0.69 GPG • FB followers 33m • FB followers 18m • Colombian Expats in USA 2m • Uruguayans Expats in USA 77k

71 Style of Play – Let’s Play a Game: Match the Style of Play with a Club

Who plays what style?

A. Attacking, improvised soccer with global super stars

B. Counter-attack with tough defense and grit

C. Possession-Based Tiki-Taka

Each style attracts different fans for different reasons

72 DIPLOMA IN CLUB Style of Play – Real Madrid’s Art MANAGEMENT

To not keep scoring was disrespectful to the art, an unfinished painting.

Ball is the Paint Pitch is the Canvas Players are the artists Stadium is the museum – 4km

73 DIPLOMA IN CLUB Style of Play MANAGEMENT

Want to see superstars (you admire and want to be like) do exceptional things, score lots of goals and win trophies?

Then you are attracted to Real Madrid 74 DIPLOMA IN CLUB MANAGEMENT Style of Play Is Your Brand / Identity

Imagine if you liked McDonald’s, went to get a Big Mac and they only served Kentucky Fried Chicken Sandwiches because It was popular or the New Chef or Management preferred Chicken Sandwiches? (e.g. Real Madrid start playing Tiki Taka or Barcelona started to play like Real Madrid) Aren’t they both just sandwiches? (e.g. Isn’t a club just trying to win?) You think “Maybe it’s better to just go to Burger King” (e.g. start watching PSG for stars or Man City for Tiki Taka) This is why need to hire a coach (e.g. Chef) that fits an established identity / style of play

All great and successful but different All great and successful but different

75 DIPLOMA IN CLUB MANAGEMENT Go Back to: Seriously? Isn’t Winning Enough? Importance of Style of Play

Question: Post Péle (1958, 1962 and 1970), which team/era is the most revered, remembered and associated with the brand of soccer in Brazil?

Which did they win?

1994 or 2002?

If not winners, which Final?

1998?

76 1982 and 1986 (Falcãco & Zico) Over 1994 and 1998 (Dunga)

1994 (Winner) and 1998 (Final) 1982 and 1986 (Quarterfinals)

“Ugly” “History” “Heroes” and “Legends”

77 DIPLOMA IN CLUB MANAGEMENT Warning to Brazil: Change in Style, Less Passion

Pelé’s question: “What happened to Brazil’s ginga?” Answer: “It was “Europeanized”

78 DIPLOMA IN CLUB Tell Me Your Rival – Identity & Reason to Care MANAGEMENT

79 DIPLOMA IN CLUB Rivalries Beyond Same City Derbies MANAGEMENT

Illustrative examples for discussion. These are my opinions only.

• Joe Frazier vs. Muhammad Ali (“Uncle Tom” vs. Black, Muslim) • Real Madrid vs. Barcelona (Ronaldo vs. Messi) (Spain vs. Catalonia) • Montreal Canadians vs. (French vs. English) • LA Lakers vs. Celtics ( vs. Bird) (Showtime vs. Non) • Notre Dame Football vs. U of Miami (Catholics vs. Convicts) • Dallas Cowboys vs. Pittsburg Steelers (White Collar vs. Blue Collar) • 1980 USA Hockey vs. USSR (Capitalism vs. Communism) • 1992 Michigan Basketball vs. Duke (Urban vs. Suburban) (Youth/New vs. Experience/Establishment) • NY Yankees vs. (two different ways of life / values)

80 Every Great Brand Has a Rival

Apple Mac vs PC Harley vs Japanese

Even your computer says something about you

81 DIPLOMA IN CLUB Identity & Passion Increases Revenue MANAGEMENT

82 DIPLOMA IN CLUB MANAGEMENT Ohh.. Real Madrid Doesn’t Apply to My Club

83 DIPLOMA IN CLUB MANAGEMENT SD Eibar Promoted up to La Liga from Segunda Division in 2013-14, for first time ever

Ø Eibar has 27,000 inhabitants in remote Basque Country

Ø 6,000 person stadium, €3.9 million budget, market value of players at €6.9 million

Ø Had to crowdfund to raise €1.7m to meet minimum capital requirements, thousands from 50 countries participated

84 DIPLOMA IN CLUB Why Do People Care About Eibar? MANAGEMENT People Love to Root for the Underdog

In a study, 88% of people root for the team expected to lose

85 The Players Understand the Mission and Identity

Ø“For a small city and a small club to receive such support from across the world is something that makes me very proud -- it feels like we're part of a family”

Ø“Our spirit is the most important thing that will help us overcome all the challenges we will have this year”

Ø“We're going to have the lowest budget with no big names in our team but we will make it with the players and all of us pushing in the same direction -- this is in our culture and spirit.”

86 DIPLOMA IN CLUB How Has Eibar Done On the Pitch? MANAGEMENT

87 DIPLOMA IN CLUB Eibar – They Transcend the Basque Region MANAGEMENT Their rivals are Big Clubs (not even other Basque clubs), and they even found a way to connect with others

On 18 July 2015, Eibar played its 75th Anniversary game against Scotland’s Celtic. This included an inaugural ceremony on the pitch with a parade of 19th-century-clothed Basque soldiers playing bagpipes with officials from both clubs shooting 19th century cannons.

Eibar stated that they invited Celtic as their opponent for the game due to the strong connection between the Basque Country and Scotland

The main supporter group is named "Eskozia la Brava", meaning "Scotland the Brave" l

88 Eibar “set their sights on becoming the Indian fan's second favorite football club”

89 Eibar Are Also Popular in

90 DIPLOMA IN CLUB MANAGEMENT Off The Pitch Results

91 How Does Real Madrid Support This Culture On the Pitch

Culture needs to get from the community >>>

to the board >>>

to the management >>>

to the organization /operations >>>

to the coach >>>

to the players

92 DIPLOMA IN CLUB How Does Real Madrid Support This Culture MANAGEMENT On the Pitch

• Defined Mission and Values Statement • Select Players with Values • Style of Play • Embracing Rivalries to Reinforce Identity • Equal Treatment • Pillars of Leadership • Captains Appointed By Seniority • Homegrown Academy Players • Coach • President

93 DIPLOMA IN CLUB Equal Treatment MANAGEMENT

94 DIPLOMA IN CLUB The Cardinal Way MANAGEMENT

St Louis is the 21st media market in the U.S.

On the field, the Cardinals have won: 2 World Series titles (only the Red Sox and Giants have won more, each with three) 4 pennants (which ties for the most with the Yankees and Giants) 12x qualified for the postseason (only the Yankees have more)

#13 Payroll the MLB

#2 attendance in MLB, behind the Dodgers but ahead of the Giants and .

3 million fans attended games for ten straight years

Highest local TV ratings in baseball

95 The Cardinal Way Written Handbook

The Handbook

When the Cardinals draft a player, they provide him with an 86 page handbook that outlines the team’s expectations in the manner in which the player is expected to conduct himself on and off the field

Coaches and managers receive the unabridged version, which is 117 pages

These “organizational manuals” are the result of several years of work to collect the lessons from former players and coaches .

The Players Benefit

Over the last 10 years, 40 players have had at least 500 plate appearances or pitched at least 100 innings before leaving, and the performance levels dropped for two-thirds of those players after they left

96 DIPLOMA IN CLUB Pillars of Leadership to Support Culture MANAGEMENT

Captains Academy graduates • Elected by seniority • ~25% of total • Know the culture • Know the culture • Most are “local” boys • The community roots for them • Willing to sacrifice

97 Remember What Gregg Popovich Said

“Like any successful franchise whether sports or business, it’s about the people you bring in and their character…

The principles you live by and stick by in good times and in bad times…

I think our culture, that corporate knowledge, is something that sustains us year after year

New people that come in get indoctrinated in the way we do things, our culture, and the leaders pass it on”

98 DIPLOMA IN CLUB Pillars of Leadership to Support Culture MANAGEMENT

• First Among Equals (has to be the • Coach (former elite player with hardest working example) credibility, champion, and calm)

*Every team is different and needs a different coach

99 DIPLOMA IN CLUB Pillars of Leadership to Support Culture MANAGEMENT President Driving the Values with Bold and Brave Actions

100 How Does Culture / Identity / Purpose Impact On the Pitch?

101 DIPLOMA IN CLUB “We Want As Much Talent As We Can Afford” MANAGEMENT

Almost every owner tells me this

Who here doesn’t want this?

People believe there is a linear and nearly monotonic relationship between talent and performance: participants expected that more talent increases performance and that this relationship would never turn negative

102 DIPLOMA IN CLUB Too Much Talent Effect MANAGEMENT Swaab, R. I., Schaerer, M., Anicich, E. M., Ronay, R., & Galinsky, A. D. (Psychological Science, 2014) "The too-much-talent effect: Team interdependence determines when more talent is too much versus not enough." .

Limited Interdependence Interdependence

In Baseball you don’t need a teammate to score If a soccer or basketball team has too many talented You can hit a homerun players, there are too many who want to score Get as much talent as you can…NY Yankees They need to work together, sacrifice

103 DIPLOMA IN CLUB How Many Minutes? MANAGEMENT

How many minutes do you think possesses the ball in a 90 minute game?

Most people guess 5-10 minutes

104 DIPLOMA IN CLUB Culture Offsets the Too Much Talent Effect MANAGEMENT

60 seconds >> 20 touches >> averaging 3 seconds each leads to 4 shots >> 2 of those 4 shots on goal >> 1 of those 2 on goal goes in

• He needs the ball at the right time, at the right place from a teammate willing to pass the ball (driven by culture) • Every organization needs academy players who carry the culture, star players to score and everyone in between (Social Inclusion. Everyone can Contribute)

105 Well…We Don’t Have Real Madrid’s Problem Of Having Too Much Talent

Why should I care about this?

106 DIPLOMA IN CLUB How Many Minutes Part 2 MANAGEMENT

• 1932 Olympic Men’s Marathon Ø Winning time of 2:31 Ø #20 finished with a 39 minute difference

• 2016 Olympic Men’s Marathon Ø What was the winning time 00:00? Ø #20 finished with a what XX minute difference?

107 Mission and Culture Becomes More Important

• 2016 Olympic Men’s Marathon in Rio Ø The winning time was 2:08 (23 minutes faster) Ø #20 finished with a 6 minutes difference (vs. 39 minutes)

ØAbsolute skill has never been higher, but relative skill has never been lower ØPlayers are grinding to a physiological limit and performance is getting clustered ØIdentification, coaching, training methods, and training facilities more widely available ØBig teams are paying a lot of money for players who are only slightly better than most players ØRelative talent is smaller, so the difference between winning and losing is smaller ØMission and culture becomes more important (and so will luck)

108 DIPLOMA IN CLUB Circular Sustainable Economic-Sport Model MANAGEMENT

109 DIPLOMA IN CLUB MANAGEMENT What Can You Learn From The Real Madrid Way

• Find your own unique and authentic mission (why and how), values and culture (consider writing them down) • Look to your history and community for inspiration and direction • Make community values and culture at the center of your strategy and align it with other initiatives (player selection) • Understand and harness the power of identity (find ways to reinforce it) • Find ways to reinforce and support your culture (on and off the pitch) • This will help you develop a Sustainable Economic-Sport Model

110 Why Would Real Madrid Let Me Write the Book?

• Transparency = Trust

• Trust is a value of every great global brand

• Real Madrid’s community wants transparency (Survey Result)

• You can copy a lot of things (e.g. marketing strategies, data analytics strategies, etc.)

• You can’t copy culture

111 DIPLOMA IN CLUB MANAGEMENT

The eSports Industry The global eSports ecosystem

112 DIPLOMA IN CLUB MANAGEMENT GAMING VS ESPORTS REVENUE The Global eSports Ecosystem Gaming Revenue 2020 VS eSports Revenue 2020 $ 159.3B (11% CAGR 17-22) $ 1.1B (30% CAGR 17-22

176.2M 45.2B 614.9M 16% 28% 120.2M 77.2B 11% 48% 56% 10% 23% 106.5M 36.9B 21.5M / 19.9M

Mobile PC Console Media Rights Publisher Fees Merchandise & Ticket Digital Entertainment and media revenue: Streaming Sponsorship 2.126T (4.4% CAGR 17-22) Source: Newzoo, Global Games/eSports market report, 2020 DIPLOMA IN CLUB MANAGEMENT

The eSports Industry Audience growth, relevance and appeal

114 DIPLOMA IN CLUB MANAGEMENT AUDIENCE GROWTH The Global eSports Ecosystem

TOTAL GLOBAL ESPORTS AUDIENCE GROWTH:

+10.4% The global eSports audience is YOY quickly outgrowing that of some 646M traditional Sports*. 495M

351M

It is expected that the audience will 272M grow by over 150M individuals 222M 295M globally by 2023.

ESPORTS ENTHUSIASTS OCCASIONAL VIEWERS

*Source: TwitchRPG, Newzoo, MLB, CNBC, BHF, Statista & Nielsen (*Survey was A18+) DIPLOMA IN CLUB MANAGEMENT AUDIENCE SEGMENT The Global eSports Ecosystem

ESPORTS FAN AGE DISTRIBUTION: eSports fans also represent the AV AGE*: AVERAGE AGE OF youngest audience of any major 27Y TRADITIONAL 10% SPORTS* professional sport.

MLB 57Y 51% 34% eSports is a great way to reach NBA 42Y 34% the audience segment and EPL 41Y engage with your future customers. 18-24 25-34 35-40 40+

Source: TwitchRPG, Newzoo, MLB, CNBC, BHF, Statista & Nielsen (*Survey was A18+ Source: Sports Business Journal Source: The Football Supporters' Association DIPLOMA IN CLUB MANAGEMENT COMMERCIAL APPEAL The Global eSports Ecosystem

$790M in revenues is generated through media rights and sponsorship.

Global eSports revenues will grow from $1.1B in 2020 to $1.6B in 2023 Streaming

Digital

Merchandise & Tickets

Publisher Fees

China is the largest market by Media Rights revenues ($385.1m), followed Sponsorship by ($252.8m).

Source: Newzoo Report 2021, Graph: Newzoo, Global Games/eSports market report, 2020 ESPORTS ON THE RISE The Global eSports Ecosystem

45.95M concurrent viewers The set a new viewership record in 2020

30B live hours watched* Double-digit growth for , & YouTube Gaming in 2020

$1.1B disclosed investments Well-known sports stars like & ventured into eSports *excluding Chinese video platforms; Source: PWC Digital Report

Building a professional ecosystem creating value for eSports players, spectators and brands. 118 DIPLOMA IN CLUB MANAGEMENT 02 FIFA eSports

INTRODUCTION TO FIFA ESPORTS

OUR VISION AND MISSION FOR FIFA ESPORTS

119 DIPLOMA IN CLUB MANAGEMENT

FIFA eSports Introduction to FIFA eSports

120 DIPLOMA IN CLUB MANAGEMENT ONE OF THE BIGGEST COMMUNITY IN FOOTBALL The EA Sports FIFA franchise

250m+ Casual EA FIFA

20m+ Competitive FIFA Gamers Source: *Businesswire, EA DIPLOMA IN CLUB MANAGEMENT ALREADY PRE-COVID GAMING WAS THE NO 1 ACTIVITY FIFA eSports AVERAGE HOURS PER WEEK SPENT ON ACTIVITIES: Age group 10-35, aggregation of selected countries

12.8 11.6 12.0 11.2 12.9 10.2 Already today, football 6.9 6.4 6.6 enthusiasts spend more 5.6 5.7 5.9 time gaming than on any other activity.

TV Listening Gaming Social to music (mobile, console media & PC)

ONLINE SPORTS FOOTBALL POPULATION ENTHUSIASTS ENTHUSIASTS

Source: TwitchRPG, Newzoo, MLB, CNBC, BHF, Statista & Nielsen (*Survey was A18+) FOOTBALL & eFOOTBALL FIFA eSports

Football eFootball

Relevance

Credibility

123 ONE UNIFIED FAN ECOSYSTEM FIFA eSports

Football and Gaming cultures no longer exist in silos. For fans, it is just Football.

The EA FIFA game franchise is the foundation for FIFA eSports, with +325m copies sold by 2020.

Source: Businesswire)

124 PILLARS OF FIFA eSPORTS FIFA eSports

PROFESSIONAL LEGITIMATE UNIFYING

By guaranteeing fair play and As the global governing body, rewarding and recognising only FIFA offers the legitimacy eFootball is the sports gaming players, gamers are and authority of crowning the genre where traditional sports transformed into credible true world champions of meet eSports. professionals. eFootball.

125 DIPLOMA IN CLUB MANAGEMENT MAKING FOOTBALL TRULY GLOBAL FIFA eSports

FIFA eSport Vision FIFA eSport Mission

We build the institutional, We create the most sustainable, emotional and commercial professional and entertaining framework for the best eSports global eSports stage, where ecosystem of them all. anyone can make a name for themselves and reach their full potential. DIPLOMA IN CLUB MANAGEMENT

FIFA eSports Our vision and mission for FIFA eSports

127 ONE OF THE BIGGEST COMMUNITY IN FOOTBALL The EA Sports FIFA franchise

250m+ Casual EA FIFA Gamers

20m+ Competitive FIFA Gamers

Source: *Businesswire, EA 128 ALREADY PRE-COVID GAMING WAS THE NO 1 ACTIVITY FIFA eSports

AVERAGE HOURS PER WEEK SPENT ON ACTIVITIES: Age group 10-35, aggregation of selected countries

12.8 12.0 12.9 11.6 11.2 10.2

6.6 6.9 5.7 5.9 6.4 Already today, football enthusiasts 5.6 spend more time gaming than on any other activity.

Listening Gaming Social TV to music (mobile, console & PC) media

ONLINE POPULATION SPORTS ENTHUSIASTS FOOTBALL ENTHUSIASTS

Source: TwitchRPG, Newzoo, MLB, CNBC, BHF, Statista & Nielsen (*Survey was A18+)

129 FOOTBALL & eFOOTBALL FIFA eSports

Football eFootball

Relevance

Credibility

130 ONE UNIFIED FAN ECOSYSTEM FIFA eSports

Football and Gaming cultures no longer exist in silos. For fans, it is just Football.

The EA FIFA game franchise is the foundation for FIFA eSports, with +325m copies sold by 2020.

Source: Businesswire)

131 PILLARS OF FIFA eSPORTS FIFA eSports

PROFESSIONAL LEGITIMATE UNIFYING

By guaranteeing fair play and As the global governing body, eFootball is the sports gaming rewarding and recognising only FIFA offers the legitimacy and genre where traditional sports players, gamers are transformed authority of crowning the true meet eSports. into credible professionals. world champions of eFootball.

132 MAKING FOOTBALL TRULY GLOBAL FIFA eSports

FIFA eSport Vision FIFA eSport Mission

We create the most sustainable, We build the professional and institutional, entertaining global emotional and eSports stage, where commercial framework anyone can make a name for the best eSports for themselves and reach ecosystem of them all. their full potential.

133 DIPLOMA IN CLUB MANAGEMENT 03 The FIFAe Ecosystem

FIFAE TOURNAMENTS STAKEHOLDER BENEFITS

134 FIFA eSports ○Introduction to Competitive Gaming ○Our Vision and Mission

135 ONE OF THE BIGGEST COMMUNITY IN FOOTBALL The EA Sports FIFA franchise

250m+ Casual EA FIFA Gamers

20m+ Competitive FIFA Gamers

Source: *Businesswire, EA 136 ALREADY PRE-COVID GAMING WAS THE NO 1 ACTIVITY FIFA eSports

AVERAGE HOURS PER WEEK SPENT ON ACTIVITIES: Age group 10-35, aggregation of selected countries

12.8 12.0 12.9 11.6 11.2 10.2

6.6 6.9 5.7 5.9 6.4 Already today, football enthusiasts 5.6 spend more time gaming than on any other activity.

Listening Gaming Social TV to music (mobile, console & PC) media

ONLINE POPULATION SPORTS ENTHUSIASTS FOOTBALL ENTHUSIASTS

Source: TwitchRPG, Newzoo, MLB, CNBC, BHF, Statista & Nielsen (*Survey was A18+)

137 FOOTBALL & eFOOTBALL FIFA eSports

Football eFootball

Relevance

Credibility

138 ONE UNIFIED FAN ECOSYSTEM FIFA eSports

Football and Gaming cultures no longer exist in silos. For fans, it is just Football.

The EA FIFA game franchise is the foundation for FIFA eSports, with +325m copies sold by 2020.

Source: Businesswire)

139 PILLARS OF FIFA eSPORTS FIFA eSports

PROFESSIONAL LEGITIMATE UNIFYING

By guaranteeing fair play and As the global governing body, eFootball is the sports gaming rewarding and recognising only FIFA offers the legitimacy and genre where traditional sports players, gamers are transformed authority of crowning the true meet eSports. into credible professionals. world champions of eFootball.

140 MAKING FOOTBALL TRULY GLOBAL FIFA eSports

FIFA eSport Vision FIFA eSport Mission

We create the most sustainable, We build the professional and institutional, entertaining global emotional and eSports stage, where commercial framework anyone can make a name for the best eSports for themselves and reach ecosystem of them all. their full potential.

141 The FIFAe Narratives ○New positioning of FIFAe tournaments ○Stakeholder benefits

142 NEW POSITIONING OF TOURNAMENTS The FIFAe tournament narratives

FIFAe

As of the 2020/2021 season, FIFA re-launched its eFootball ecosystem under a dedicated and new kitemark “FIFAe”

FIFAe aims at creating the most emotional and unifying eFootball platform.

FIFA is driving 3 distinct narratives to build a sustainable ecosystem.

143 FAME YOUR GAME The FIFAe tournament narratives

Individual Teams Nations

Played in a 1v1 format, Played as a team, players Proudly representing their competitors battle it out to defend their colours country, players compete be crowned the best player against the best clubs in the to bring glory to their in the world. world. country.

144 FIFAe WORLD CUP The FIFAe Tournament Narratives

Individual Narrative Player Participation 20M+ 20M

- Individual players take part in the EA Sports FIFA21 [...] Global Series x714 - The best 32 players qualify for the pinnacle event 28K each year. 30k 20k

10k 2021 Prize pool for Final: USD 500,000.- 2008 2021

145 FIFAe CLUB WORLD CUP The FIFAe Tournament Narratives

Club Narrative Club Participation

Season-long qualifying competitions culminating at 500 - 482 the pinnacle event. [...] - Includes both endemic eSports and traditional x20 football clubs competing with each other. 100

75

- 2021 Prize pool: 50 24 25 - Qualifying phase: USD 100,000.- - Final stage: USD 245,000.- 2017 2021

146 FIFAe NATIONS CUP The FIFAe Tournament Narratives

Nations Narrative: MA eNational Teams Participation

80

70 - FIFA’s Member Associations select their best ≈60 60 representatives through national programs. 50 x60 - Qualified nations compete for international glory at 40 the pinnacle event. 30 01

20

10 2021 Prize pool: USD 500,000.- 2017 2021

147 A DRIVER FOR FAN ENGAGEMENT Reasons To Get Involved

Capture the interest of your fan base. PSG eSports launched a weekly insights vlog Through FIFA eSports, clubs can build up direct on their FIFA legacy, relationships with Gen-Z and add the next generation to using a relevant their fan base. format and hosted by Clubs can also appeal to people that have not previously a popular french been part of the football community. Youtuber.

148 A DRIVER FOR BUILDING BRAND EQUITY Reasons To Get Involved

Red Bull Leipzig New Brand Mindset launched the dedicated RBLZ Over the past years, several football clubs have showcased Gaming brand and how to successfully build brand equity through FIFA earned massive global eSports in the mind of the modern consumers reaching a brand exposure with a new generation of players. new audience through a record-breaking winning streak.

149 A DRIVER FOR INNOVATION Reasons To Get Involved

While competitions Digitalization of event portfolio were on hold due to the global pandemic, FIFA eSports has proven its potential as a complement to FIFA organised an traditional sporting competitions. Specific knowledge of international eSports is not required to appreciate FIFA’s competitions (e)friendly competition which can be a great complement/stand-in to physical events. where nations faced each other on the virtual pitch.

150 A DRIVER FOR COMMERCIAL REVENUE Reasons To Get Involved

Creation of new revenue streams Manchester City eSports signed a FIFA eSport allows clubs to engage with a highly sought after partnership with consumer segment; in turn unlocking commercial eSport endemic brand opportunities across the entire business (incl. but no limited Turtle Beach, reaching to sponsorship & merchandizing opportunities) traditionally irrelevant sponsors.

151 A DRIVER FOR FOOTBALL DEVELOPMENT Reasons To Get Involved

In 2020, FC Basel 1893 Tactical understanding of football created an eSports academy. Professional The use of a simulated football game enables players to eSports players train build a concrete, graphical understanding of tactical young fans in the behaviours and is a natural extension to football activities aspects of fitness, motivating players to spend time in the club. mental training, nutrition and regeneration.

152 Thank you.

www.FIFA.gg

153 DIPLOMA IN CLUB MANAGEMENT About Me

Chris Hayden

• American Coach / Director of youth football teams since 1988 • USSF A License, Technical Dir. License, Nat. Youth License, FFF EFCL License • FC Dallas Vice President of Youth Soccer since 2005 • FC Dallas Academy Coach 2008-2019, Academy Director since 2019

• Creation of the FC Dallas Way – Curriculum, Methodology, Coaching Development • Responsible for Vertical and Horizontal Integration of Programming • Overseeing all technical and budgetary aspects of the FC Dallas Youth Departments • Managing the elite player pathway for top-talents DIPLOMA IN CLUB MANAGEMENT FC Dallas Academy Culture

MLS is Young – Formed only in 1996 The FC Dallas Academy Formed in 2008

Academy Culture is a Unique Aspect of any club • Observe and Learn from others • Find what works for you DIPLOMA IN CLUB MANAGEMENT Academy Culture, The FC Dallas Way Our Process

What is Culture?

Why is Culture important?

Where is Culture derived from?

How do we reinforce Culture?

What Steps did we take? DIPLOMA IN CLUB MANAGEMENT

What is Culture?

A Culture is the expression of a club’s values, attitudes, and beliefs. It gives purpose and meaning to our work and connects and drives all of us with a clear mission and shared goals. It is the why behind everything we do so that we can continually move forward in a common direction. DIPLOMA IN CLUB MANAGEMENT Where is Culture Derived From?

Top-Down Approach Bottom-Up Approach Do your Pre-formation, Set by First Team Coach Set by Formation Dept. Formation, and Post-Formation Departments connect with a • Pros: Connected with Head • Pros: Long Term / Consistency of common plan? Coach Ideology Methodology Is there separation and where • Cons: Prone to change as • Cons: Potential ideology differences; staff changes occur acceptance from first team/staff does that philosophical separation occur?

FC Dallas Perspective: A Bottom-Up Approach allows for a better chance for long-term success at developing top level players for promotion or transfer DIPLOMA IN CLUB MANAGEMENT How do we reinforce Culture? Academy Mission / Vision Goals and Purpose clearly defined

Analyze / Re-Analyze Program

Always

Eliminate / Revise Prioritize Elements that Elements that don’t Align/Support Mission Align with Mission

This is a Circular / Continual Process DIPLOMA IN CLUB MANAGEMENT Academy Mission Statement Stay true to your mission

Does the Academy Mission align with and support the overall Club Mission? Does it align with the Pro Mission (Post Formation Plan) This can be a challenge for an academy

How often does the plan/mission change and why? Is the plan/mission achievable? If not, why? DIPLOMA IN CLUB MANAGEMENT Academy Culture : Deliberate Development Expressing Club Values requires planning

Step 1 Step 2 Step 3 Step 4 Step 5 Establish Game Determine Define Create Analyze Club Model Principles of Play Methodology Periodization Structure

Start with the Big Picture in Mind

Begin with broad concepts, next layering in details, and only then work on the resources (staffing, facilities, technology) needed to achieve success. DIPLOMA IN CLUB MANAGEMENT 01 Game Model

HOW WE PLAY? DIPLOMA IN CLUB MANAGEMENT Establishing a Game Model

A Game Model is the Big Picture Blueprint that How we want to play in different zones of we work from which everything we do is derived the field:

• With Ball • Without Ball • Flexible Vertically aligned In Transition Moments • Might change based • Aligns with Scouting Can be influenced by: on global football Department (player evolution/league id) trends (can be • Climate influenced by first • LTPD Plan (Multi-year • Culture team coach). player dev. plan) • Available Player Pool • League Trends • Global Trends DIPLOMA IN CLUB MANAGEMENT 02 Principles of Play

DEFINING THE ELEMENTS THAT WILL ALLOW US TO PLAY OUR STYLE OF FOOTBALL DIPLOMA IN CLUB MANAGEMENT Determining Principles of Play

Examples of Attacking Principles of Play

Creation and Use of Space Principles of Play are the Building Block Play in the Gaps / Between Lines Combinations with Mobility Concepts that allow us to implement our Switch Play with Circulation game model / style of play

Switch Play after Fixing Opponent We want players to read cues, consider Play Ball in Depth to a Runner at Pace possible solutions, and take action based on Combinations of 2 or 3 Players what they perceive Get Open to Isolate / Dribble 1v1 Principles allow us to teach individual and collective habits based on situations that Get Unmarked to Pass/Finish vs Organized Defense occur in a match and in specific areas of the Draw / Fix / Eliminate to Shoot field Get Unmarked to Pass/Finish vs Disorganized Defense Adjust / Readjust to Finish DIPLOMA IN CLUB MANAGEMENT 03 Methodology

HOW WE TEACH IN ORDER TO MAXIMIZE LEARNING AND RETENTION DIPLOMA IN CLUB MANAGEMENT Define Methodology

A Methodology is a way of teaching that will connect a group of teams into one style and accelerate player learning and retention Divide trainings into Various Exercise types. (ie. Exercises, situations, games, special, etc.) Utilize varied pedagogical approaches depending on the exercise category.

Exercises Situations Technical Focus Technical/Tactical Repetitive, unopposed Should be Realistic to game. (Direct, Demanding) Opposed (Questioning between reps)

Games Special Technical/Tactical Technical/Tactical Small numbers to full field Objectives based, little coaching Opposed (Questioning during play) DIPLOMA IN CLUB MANAGEMENT 04 Periodization

SYSTEMATICALLY PLANNING WHAT WE DO AND WHEN WE DO IT IN ORDER TO ACHIEVE DEVELOPMENTAL AND COMPETITIVE GOALS DIPLOMA IN CLUB MANAGEMENT Create Periodization

Annual Periodization Plan Periodization allows us to divide a yearly training plan into phases which apply to the principles of training

Define Micro, Macro, and Mesocycles

FC Dallas Periodization : has a physical, technical, and tactical focus

Rigid, Semi-Flexible, Flexible – Depending on Age

allows for player health, player short and long-term performance gains, physical load control, tactical adaptation, and preparation for competitive periods DIPLOMA IN CLUB MANAGEMENT 05 Club Structure

STAFFING, FACILITIES, AND TECHNOLOGY UTILIZED TO MAXIMIZE SUCCESS DIPLOMA IN CLUB MANAGEMENT Analyze Club Structure

Assess resources available to achieve success The FC Dallas Development Pyramid Staffing The right people in the right roles MLS 31 Players

Facilities USL 26 Players, 12 Contracted

Training Fields, Performance Areas, Match Keys Fields, Video Areas, Locker Rooms, etc. 144 Players U11-U19 160 Players U9 – U19 Technology Player Health, Video, GPS, Statistical Analysis, 3000 Players U7 – U19 Coaching Education, etc. Vertical Integration Keys Horizontal Integration Partners Community Outreach and Education, Funding Opportunity, Trade Partners, etc. How to best implement your plan DIPLOMA IN CLUB MANAGEMENT Ownership Vision Strengthens Culture

Dan Hunt “It is imperative that FC Dallas Develops and Signs Young Talents. We hope to have a roster comprised primarily of Homegrown Players in the future. They are the lifeblood of the club.”

September 2016 Dan Hunt, FC Dallas President / Owner DIPLOMA IN CLUB MANAGEMENT The Main Difference - Belief

Owner / First Team Staff, Second Team Staff Culture of Young Player development and advancement is self-sustaining. When a club promotes young players often, it becomes easier

Academy Coaching Staff Belief Message is more credible and compelling if the messenger believes, work becomes purposeful

Parent Belief Parents trust the system, are more patient in the long-term process

Player Belief Players are motivated when they see a path DIPLOMA IN CLUB MANAGEMENT Coaching Development Strengthens Culture Culture is vital in achieving success

Current Staff 2019 - Previous Staff 2014 - 2019

Promotion of Coaches

Evolution of Coaches through experience

Head Coach Head Coach Oscar Pareja Mentorship / Collaboration

Asst. Coaches Peter Luccin, Mikey Varas Asst. Coaches Marco Ferruzzi, Josema Bazan DIPLOMA IN CLUB MANAGEMENT FC Dallas Academy Key Culture Traits for Player Success

Staff Promotion from Within Players need Challenge Dual Roles Top Talents Play/Train Up Adaptability Competition Proximity / Schedule

Versatile Players Stress Competition in Training Connection Positional Rotation –U14/Below International Competition U10+ Specialization U15/Above U17+ Need to Learn to Win DIPLOMA IN CLUB MANAGEMENT FC Dallas Academy Overview

“Busca La Forma” – Find a way DIPLOMA IN CLUB MANAGEMENT FC Dallas Academy Categories

U19 U17 U15 2004, 2003, 2002 2004, 2005, 2006 2006, 2007 24 players 20 players 18 players

U12 U14 U13 2009, 2010, 2011 2007, 2008 2008, 2009 48 players (24 1st year/ 24 18 players 22 players 2nd year) DIPLOMA IN CLUB MANAGEMENT FC Dallas Academy Training Frequency

FC Dallas entered a partnership in 2010 with the local school district, Frisco Independent School District, creating a public-school education partner

• 70 High School Athletes, 30 Middle School Athletes attend 2 separate FISD Campuses (we provide transportation for players in need • 40 Athletes attend their own schools and commute individually

School Program through FISD Evening Training

U19, U17 U15, U14 U13, U12, U11

5-6 sessions per week 5-6 sessions per week 3-4 sessions per week 600+ training hours per year 600+ training hours per year 425+ training hours per year 45-50 matches per year 45 matches per year 35-40 matches per year 8-10am daily +1 session 3-5pm daily +1 session 5-7pm 4x per week DIPLOMA IN CLUB MANAGEMENT Player ID - Scouting

Local Regional National International Develop from Within Find Top Talents with High Find Players for Pro 2nd team ready, First team Projection Ceiling Contract, 2nd team with projection with transfer 1st team profile value

Kellyn Acosta 14 Weston McKinnie 11 Paxton Pomykal 14 Chris Richards 17 Jesus Ferreira 8 Tanner Tessmann 14 Bryan Reynolds 11 Reggie Cannon 15 Gabriel Funes Mori 17 17 ? Justin Che 6 Ricardo Pepi 14 Brandon Servania 14 DIPLOMA IN CLUB MANAGEMENT Homegrown Territories

MLS Teams have protected player territories The FC Dallas territory is the Northern half of Texas

th th 18 most 6 most About 100,000 9 million people registered youth male Population size players Player Pool DIPLOMA IN CLUB MANAGEMENT FC Dallas Homegrown Players

From Dallas 20 Players 70% Dallas 4 Alabama Outside of Dallas 30%

1Virginia Since 2009: 1 Arkansas 30 Academy Players signed – Most in MLS 3 El Paso

Regularly lead MLS in Homegrown minutes played 1 Waco DIPLOMA IN CLUB MANAGEMENT Academy Competition Platform

US Soccer Federation managed the USSDA from 2007 through March, 2020, when it was dissolved.

In the absence of any sustainable pro pathway

MLS Launched MLS NEXT, a national youth competition, in order to strengthen the US Youth Soccer Development Landscape.

Current membership includes 113 clubs, 489 teams, 9,000+ players across the U.S. and Canada and features over 90% of the current youth national team player pools DIPLOMA IN CLUB MANAGEMENT FC Dallas 2nd Team / North Texas Soccer Club

Launched in 2019

Competes in USL League One (Division III) • Won the Championship in 2019, 3rd in 2020 • Youngest Roster in League One • Allows Pro and Amateur Players to play • Young MLS rostered players additional minutes • Sign more players for retention at earlier age • Contract Decisions Easier DIPLOMA IN CLUB MANAGEMENT FC Dallas / Bayern Partnership

Youth Development Partnership Formed in February 2018

Not a branding exercise – Real Relationship – Mutually Beneficial

• Methodology / Best Practices Sharing • Team Competition Opportunities • Player Training Opportunities • Player Pathway Opportunities DIPLOMA IN CLUB MANAGEMENT

Promotion and Sale of Top Talents The Results DIPLOMA IN CLUB MANAGEMENT FC Dallas Academy Products Abroad

Weston McKinnie Chris Richards Ramiro Funes Mori

FC Dallas Academy FC Dallas Academy FC Dallas Academy 2011-2017 2017, 2018 2008 Juventus Bayern Munich, on loan to Villareal Hoffenheim DIPLOMA IN CLUB MANAGEMENT FC Dallas Academy Products Abroad

Bryan Reynolds Reggie Cannon

FC Dallas Academy FC Dallas Academy FC Dallas Academy 2012-2016 2015-2016 2008 AC Roma Boavista FC Monterrey Rayados DIPLOMA IN CLUB MANAGEMENT FC Dallas Academy Domestic Players

Kellyn Acosta Victor Ulloa Emerson Hyndman

FC Dallas Academy FC Dallas Academy FC Dallas Academy 2009-2013 2008-2009 2010-2011 Colorado Rapids Inter Miami United DIPLOMA IN CLUB MANAGEMENT FC Dallas Academy Notable First Team Players 30-40% of our MLS Roster are Home Grown Players

Paxton Pomykal Jesus Ferreira Tanner Tessmann

FC Dallas Academy FC Dallas Academy FC Dallas Academy 2014-2016 2009-2016 2016-2019 21 Years Old 20 Years Old 19 Years Old 150 Minutes in 2020 *inj. 979 Minutes in 2020 1001 Minutes in 2020 1876 Minutes in 2019 DIPLOMA IN CLUB MANAGEMENT FC Dallas Academy Notable First Team Players 30-40% of our MLS Roster are Home Grown Players

Ricardo Pepi Dante Sealy

FC Dallas Academy FC Dallas Academy 2016-2019 2012-2019 18 Years Old 17 Years Old 458 Minutes in 2020 DIPLOMA IN CLUB MANAGEMENT Where Do We Go From Here

3 Primary Initiatives

• Strengthen Zone 1 Programming (U7-U12) Particularly in Athletic Development

• Data Capture and Analysis for Scouting / Player Selection Decisions (U13-U15)

• Strengthening Relationships with European Clubs to enhance player transfer / loan opportunities (U16-U20) DIPLOMA IN CLUB MANAGEMENT

Thank You!