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J-League Management Cup 2016

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J-League Management Cup 2016 J.League Management Cup 2016 Sports Business Group 2017.9 Contents Foreword 03 Introduction Databook Growing Expectations for the Evolution of Sports in Japan 04 Overview Four Perspectives of the J.League Management Cup 2016 06 Comparative Analysis of J1, J2, and J3 Leagues 1st Stage: Marketing Performance 08 2nd Stage: Club Performance 09 3rd Stage: Management Performance 10 J.League Management Cup 2016 4th Stage: Financial Performance 11 Databook Sports Business Group 2017.9 J1 Club Rankings 12 Management Cup Analysis of the J1 League The J.League Management Cup 2016 Databook, which 1st Stage: Marketing Performance 14 contains the main data used for this report, has been 2nd Stage: Club Performance 16 made available free of charge by Deloitte Tohmatsu’s Sports Business Group at the following website: 3rd Stage: Management Performance 18 4th Stage: Financial Performance 20 URL: www.deloitte.com/jp/sports-business J1 Cup Winners Analysis Urawa Red Diamonds 22 Special Feature 1 Profits from Merchandise Sales 24 J2 Club Rankings 26 Management Cup Analysis of the J2 League 1st Stage: Marketing Performance 28 2nd Stage: Club Performance 30 3rd Stage: Management Performance 32 4th Stage: Financial Performance 34 Publisher: Sports Business Group, Deloitte Tohmatsu Financial Advisory LLC J2 Cup Winners Analysis Renofa Yamaguchi 36 Address: Shin-Tokyo Building, 3-3-1 Marunouchi, Chiyoda-ku, Tokyo (postal code 100-0005) Special Feature 2 Telephone: 81-3-6213-1180 Attendance at Away Matches 38 E-mail: [email protected] Website: www.deloitte.com/jp/sports-business J3 Club Rankings 40 Management Cup Analysis of the J3 League Supervising editor: Kazuhiro Fukushima 1st Stage: Marketing Performance 42 2nd Stage: Club Performance 44 Supervising writer: Shin Satozaki 3rd Stage: Management Performance 46 Contributing writers: Takatou Kinoshita, Kazumasa Kawabata, Tatsuya 4th Stage: Financial Performance 48 Kotani, Akinori Kaneta, Yuya Nakajima J3 Cup Winners Analysis Tochigi SC 50 Assistant analysts: Shimizu Masahiro, Kuroishi Shuichi, Yamazaki Daiki, Kishimoto Masaaki, Kozuma Ryohei Special Feature 3 Analysis of SNS Usage among Clubs 52 Editorial Postscript 54 Greeting 55 Deloitte Tohmatsu is J.League Supporting Company. 02 J.League Management Cup 2016 | Foreword Foreword 'XULQJWKH-/HDJXHVHDVRQDWZRVWDJHDQGSOD\R΍IRUPDWZDV IRUWKHVHFRQGWLPHDGRSWHGE\WKH-/HDJXH$IWHUZLQQLQJWKHȴUVW stage and placing third on the overall table, the Kashima clinched the FKDPSLRQVKLSLQWKHSOD\R΍VZLQQLQJWKHWLWOHIRUWKHHLJKWKWLPHȃWKH most of any club in the league. Kashima then went on to play a surpris- ingly close match against Real Madrid in the 2016 FIFA Club World Cup ȴQDODQGLWVUXQQHUXSȴQLVKGHPRQVWUDWHGWKHLQFUHGLEOHSRWHQWLDORI -/HDJXHFOXEVΖQDQH΍RUWWRKHOSWKHOHDJXHFRQWLQXHWREXLOGRQWKH experience it has gained over many years, Deloitte Tohmatsu’s Sports Business Group has ranked the business performance of every club in the league in this report, J.League Management Cup 2016. $OVRLQWKLVUHSRUWZHORRNDWVWDGLXPRSHUDWLRQVȃDQLPSRUWDQW IDFWRULQWKHVSHFWDWRUVSRUWVEXVLQHVVȃLQOLJKWRIWKHRSHQLQJRI6XLWD City Football Stadium in 2016. It attracted the attention of Japan’s foot- Kazuhiro Fukushima EDOOFRPPXQLW\DVDVHDWVWDGLXPVSHFLȴFDOO\GHGLFDWHGWRIRRW- ball. Unlike stadiums that had been constructed throughout the country Partner with public funds for the purpose of playing sports, Suita City Football Sports Business Group Stadium stood out as a facility designed and built for watchingVSRUWVȃ Deloitte Tohmatsu Financial Advisory LLC QDPHO\IRRWEDOOȃE\WKHSULYDWHVHFWRUZKLFKGRQDWHGLWWRWKHFLW\RI Suita. In the case of Germany’s Bundesliga, which boasts the highest average attendance among football leagues worldwide, attendance grew considerably after spectator-friendly stadiums increased in number following the renovation and construction of new facilities country-wide in preparation for the 2006 FIFA World Cup. For that UHDVRQZHKRSHPRUHIRRWEDOOVSHFLȴFVWDGLXPVZLOOEHEXLOWLQ-DSDQLQ the future. In the J.League Management Cup, we have examined the results of concrete initiatives carried out by the league and its clubs from an objective standpoint. I hope it provides a basis for discussions and a useful resource for the many people involved in the J.League as well as other spectator sports businesses. As one of the largest groups of business professionals in Japan, and with a sizable roster of business advisors, the Deloitte Tohmatsu Group set up its Sports Business Group in April 2015. Since then, we have been working as a team to help expand markets for sports businesses in Japan and the rest of Asia, following the lead of the Sports Business Group in the United Kingdom. Established more than 20 years ago by 'HORLWWH8.DPHPEHUȴUPLQWKH'HORLWWH*URXSLWKDVDQH[WHQVLYH track record in contributing to the development of sports business markets, especially for England’s Premiere League. Through our activi- WLHVZHDUHR΍HULQJQHZLQVLJKWVLQWRWKHVSRUWVEXVLQHVVPDUNHWDQGΖ DPFRQȴGHQWWKH\ZLOOKHOSEULQJPRUHG\QDPLVPWRVSRUWVEXVLQHVVHV going forward. 03 Introduction Growing Expectations for the Evolution of Sports in Japan Signs of a Shift toward Business-Driven Sports not the stadium layout itself; instead, the concept of a Having positioned itself as the country’s foremost stadium especially designed for viewing spectators is contact point for commercializing sports, the Japan Sports based on the premise that sports are a form of entertain- Agency published a guidebook on renovating and ment rather than physical training. This standpoint should upgrading stadiums and arenas in June 2017. Although it is be the starting point for actions taken by sports clubs, still too early to know the outcome of this initiative, the leagues and organizations in the future, as it can both guidebook acknowledges the positive impact that sports ERRVWDWHDPȇVSHUIRUPDQFHRQWKHȴHOG )0ȴHOGPDQDJH- FOXEVDQGWHDPVKDYHDVPHPEHUVRIFLYLOVRFLHW\DQGR΍HUV ment) and raise the level of a club’s performance at the box WKHȴUVWFOHDULQGLFDWLRQWKDWVXFKVSRUWVRUJDQL]DWLRQVFDQ RɝFH %0EXVLQHVVPDQDJHPHQW E\LQFUHDVLQJWKHOHYHORI form partnerships with the Japanese government. satisfaction among spectators who watch the games. We believe that beyond the mere words in the manual, The J.League, too, will certainly be able to broaden its the agency’s initiative will eventually prove to be highly business footing if its management can maintain an even VLJQLȴFDQW+LVWRULFDOO\LQ-DSDQDVSDUWRIWKHPDQDJHPHQW greater awareness of all stakeholders from a commercial of sports clubs and teams, these organizations had to try standpoint. and convince sponsors, government bodies and other VXSSRUWHUVRIWKHLUUROHLQWKHFRPPXQLW\DQGWKHEHQHȴWV The Challenge of Providing Solutions for WKH\R΍HUHG$WWKLVSRLQWLQWLPHKRZHYHUWKRVHUROHVDQG Communities EHQHȴWVDUHQRWQHFHVVDULO\FRQYHUWLEOHWRHFRQRPLFJDLQV Fans and supporters are, of course, considered to be the DQGWRH΍HFWLYHO\GHPRQVWUDWHWKDWZLOOUHTXLUHPDQSRZHU main stakeholders of a sports club or team, but there are economic resources and specialized skills. also many other important stakeholders, such as the club’s At present, sports clubs and their management organiza- owners (including shareholders), sponsors, mass media tions are generally not in a position to channel a substantial organizations, local governments, and the club’s athletes amount of operational resources towards activities that are DQGVWD΍6LQFHVRPDQ\GLYHUVHVWDNHKROGHUVDUHLQWHUFRQ- not directly related to holding matches or other spectator nected around the club, there are times when their respec- events. As a result, sports are not viewed purely as busi- WLYHLQWHUHVWVPD\FRQȵLFWΖQRXURSLQLRQDVSRUWVFOXE nesses; instead, the management of sports organizations must play a part in coordinating those interests if it is to in Japan is based on gaining the backing of voluntary spon- grow sustainably as a business. For that reason, clubs sors and other supporters. managed simply for the sole purpose of making money or For this reason, the Japan Sports Agency, a national ZLQQLQJ JDPHV ZLOO EH VXUH WR UXQ LQWR GLɝFXOWLHV $V government body, has publicly recognized sports clubs and mentioned above, sports clubs are members of civil society, teams as community-based organizations through its and from that perspective they have an additional obliga- recently published guidebook. This recognition should tion to help solve problems faced by their communities. greatly alleviate the burden on sports clubs in having to In this regard, the J.League has been ahead of other explain their importance in the community. Indeed, in our sports leagues in Japan, having declared its policy of helping view, the tide has turned toward greater commercialization communities solve problems as a league in its J.League PUB of sports in Japan going forward. Report* (PUB stands for “Participate, Understand and Build”). More than ever, all J.League clubs are now expected Changes Taking Shape in the J.League to explore ways of independently contributing to their Understandably, stadiums will have a major impact on communities with solutions to local issues, based on the the J.League. Following the opening of the Suita City Foot- premise that each club can soundly and independently ball Stadium in the 2016 season and the Mikuni World manage itself. Stadium in Kitakyushu in the 2017 season, construction of Looking ahead, BM will grow increasingly important in the numerous new stadiums is currently under consideration. management of J.League clubs. We hope that managers of All of these projects share a common feature:
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