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J-League Management Cup 2015 Business Ranking for All Clubs in the J-League During 2015 to Assist in the Formulation of Business Strategy Measures Etc

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J-League Management Cup 2015 Business Ranking for All Clubs in the J-League During 2015 to Assist in the Formulation of Business Strategy Measures Etc Sports Business Group Contents Databook Foreword p03 Introduction The shifting Sports Business Landscape p04 Overview J-League Management Cup(JMC) 2015: Four Perspectives p06 Comparative Analysis Among Leagues 1st Stage: Marketing p08 2nd Stage: Management Efficiency p09 3rd Stage: Management Strategy p10 The Databook, which served as the basis for this analysis, is available for free download from the 4th Stage: Financial Condition p11 Deloitte sports business URL below. URL： www.deloitte.com/jp/en/j-league-m-cup2015 J1 Ranking p12 Management Cup J1 Analysis 1st Stage: Marketing p14 2nd Stage: Management Efficiency p16 3rd Stage: Management Strategy p18 4th Stage: Financial Condition p20 J1 Cup Winner Analysis: F.C. Tokyo p22 Column (1) Effects of the Introduction of the Two-Stage System p24 J2 Ranking p26 Management Cup J2 Analysis 1st Stage: Marketing p28 2nd Stage: Management Efficiency p30 Published by: 3rd Stage: Management Strategy p32 Deloitte Tohmatsu Financial Advisory LLC 4th Stage: Financial Condition p34 Sports Business Group J2 Cup Winner Analysis: Avispa Fukuoka p36 Shin-Tokyo Building, 3-3-1 Marunouchi, Chiyoda-ku Column (2) (Zip code 100-0005) SNS Analysis p38 TEL : +81 (3) 6213 1180 J3 Ranking p40 E-Mail : [email protected] Management Cup J3 Analysis URL : www.deloitte.com/jp/sportsbusiness 1st Stage: Marketing p42 2nd Stage: Management Efficiency p44 3rd Stage: Management Strategy p46 Supervising Editor: Kazuhiro Fukushima 4th Stage: Financial Condition p48 J3 Cup Winner Analysis: Renofa Yamaguchi FC p50 Column (3) Supervising Writer: Shin Satozaki RevPAS (Attendance Rate x Ticket Price) p52 Editorial Postscript p54 Writers: Takatou Kinoshita, Kazumasa Kawabata, Tetsuya Kotani, Starting Point p55 Akinori Kaneta, Yuya Nakajima 02 Foreword The change of the J-League to a two-stage system for the 2015 Season garnered atten- tion. Sanfrecce Hiroshima, ultimately, won the Championship after earning the most points during the year, and gained an honorable victory. The 2016 Season just came to an end; and, the Deloitte Tohmatsu Sports Business Group would like to provide you with this J-League Management Cup 2015 business ranking for all clubs in the J-League during 2015 to assist in the formulation of business strategy measures etc. beginning next year and beyond. minds. This has worked to increase public expectations for the Tokyo Games four years from now. Amidst this, the 210 billion-yen major broadcasting deal over 10 years an- nounced by the J-League through a July 20th, 2016 press release has become a symbolic Kazuhiro Fukushima event that strongly signals J-League’s transition to a new stage of business. Moreover, this Partner autumn will inaugurate the basketball B-League-itself a further advancement of business Sports Business Group strategy. Deloitte Tohmatsu Financial Advisory LLC We believe that this opportunity will serve as the turning point to propel the Japanese sports business market back from its long period of stagnation; and, there is no doubt that J-League will be one of the main players. @!"! their two preconditions. It is my hope that the J-League Management Cup 2015, which #"!$@$% @"$& $! "" with sports business. *7 " the largest business professional groups in Japan. The Sports Business Group was set up in April 2015, and remains active through the entire Group to contribute to the expansion "<%=*>?!!- lished their Sports Business Group over 20 years ago, and they have contributed to the development of the sports business market, with one of the main focus on the English Premier League. We believe that our activities bring a fresh new perspective to the sports business market and lead to the further revitalization of the sports business. 03 Introduction The shifting Sports Business Landscape Interest Builds in the Sports Business 3) Strengthening of the competitive commercial potential Q@VX " 2014 in March 2016, we have received various opinions We understand these to be a clear declaration of intent of and comments, and we, once again, got a good sense of the government to steer sports away from its original ed- the high level of interest in the J-League. Among the opin- ucational course and on to a route towards commercial- ions, it was indicated that the KPI were divergent from the ization and investment in people, things and contents. actual conditions; however, even with these critical voices, we felt that in gaining so much interest we had accom- Five Key Strategies of J-League plished something. Additionally, the validity of the analyti- In seeming conjunction with the aims of the government, cal results also relies upon the degree of accuracy and the J-League has also produced 5 crucial strategies since precision of the disclosed information, and if the League the re-appointment of Chairman Murai (1. attractive foot- and clubs continue to be ever more forthcoming with in- ball, 2. stadiums, 3. training of management, 4. use of dig- formation, we have every expectation that this will allow ital technology, 5. international strategy). These are all A"= heading in the same general direction of the government, During the analytical period of this J-League Management and can actually be praised for being several steps ahead. X\]^_"\]^_@ For example, from the perspective of reforming stadiums 2016, the sports business industry underwent a tectonic and arenas, the Suita City Football Stadium newly built =Q@- through a public-private partnership has hinted at a tran- condition to carrying out useful analysis, we will now ex- sition from sports as an activity to be done to an activity to amine the changing environment enveloping the sports be watched. In addition, from the perspective of strength- business industry. ening the competitive commercial potential of sports, the 210 billion yen in income over 10 years from future broad- The Road to the Commercialization of casting rights decided upon in July 2016 is a policy of in- Sports vestment in the business infrastructure of sports, With the September 2013 decision for Tokyo to host the $@"=V! 2020 Olympic/Paralympic Games, the world of Japanese the perspective of strengthening the management capac- sports has advanced forward, collectively with the govern- ity of sports contents holders, J-League preceded the gov- ment and people of Japan, on the development of the ernment and established a course in 2015 in collaboration sports industry. with Ritsumeikan University—J.League Human Capital— The Japan Sports Agency, the symbol of this progress, was and has also begun investing in people. As a result, these established in October 2015, and in the Japan ""$" Revitalization Strategy 2016 released in June 2016, national policy. ‘Changing sports to a growth industry’ was also proposed as part of the 10 strategic public-private joint projects to Incorporating Environmental reach a nominal GDP of 600 trillion yen. The same pro- Changes into KPIs posal stated that the currently-estimated market scale of What is important is how these changes in the external 5.5 trillion yen would be expanded to 10.9 trillion yen by environment are incorporated by interested parties in the 2020 and to 15.2 trillion yen by 2025. "$A" Moreover, the Japan Sports Agency established with the business management. The policies of the government Ministry of Economy, Trade and Industry The Future and the strategies of the J-League are extremely positive Development Conference for Sports Industry beginning in !""- `\]^q!""$ provement of related KPI. Clubs will be expected to catch "| up with the direction of these policies, to submerse them- 1) Stadium/arena reform selves into strategy upon careful consideration of these 2) Strengthening of management capacity of sports con- policies, and to reinvigorate the sports business market tents holders through goal management of KPI. (Promotion of new business creation/training of human We hope that our report will be of some assistance in resources) meeting these expectations. Picture on the right page © F.C. TOKYO 04 05 Overview J-League Management Cup (JMC) 2015: Four Perspectives VX\]^_!"@- tion of clubs made public by the J-League, we provide a comprehensive appraisal of the business management (BM) level from the four perspectives of marketing, , and@—the most important themes in business management. Appraisal (BM Points) J1: 1st 18 points—18th 1 point J2: 1st 22 points—22nd 1 point J3: 1st 12 points—12th 1 point 1st Stage 2nd Stage Marketing Management Average Attendance Stadium Capacity Utilization(%) Field Wage Costs/Points Won New Attendees/Total Attendance(%) Matchday Revenue/Points Won Average Spend 3rd Stage 4th Stage Management Strategy Revenue Field Wage Costs/Revenue Revenue Growth Rate Matchday and other Equity Ratio Revenue/SG&A We have come to call these four perspectives as ‘Stages’ For example, should a club be ranked 1st in J1 in terms of after the actual League. In addition, our appraisal was di- KPI, that club will receive 18 BM points. In the same fash- rected towards not only J1, but all clubs, including J2 and ion, 1st in J2 will earn a club 22 BM points, and 1st in J3 will J3. earn 12 BM points. We then established a rule where as a Our method of appraisal involved assigning ranks by club goes one place down in ranking, so they lose 1 BM league based on key performance indicators (KPI) set by point. The reason we assigned rankings by league is be- Deloitte Tohmatsu by Stage, and then assigning BM points "" according to that ranking. leagues. Based on this method of appraisal, the club with the high- est total BM points in the four stages ultimately becomes the Cup Winner. Additionally, should there be clubs with the same amount of BM points, the club with the higher ranking in the 1st stage will be the club with the higher placement.
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