AUGUST/SEPTEMBER 2017 NO.235

BEIN SAYS IT’S THE FIGHT TO SIR CRAIG REEDIE THE POLITICAL ‘BUSINESS AS USUAL’ LEGALISE US ON WADA’S FOOTBALL THAT IN QATAR SPORTS BETTING LATEST CHALLENGES IS CHINESE SPORT PAGE 8 PAGE 12 PAGE 38 PAGE 69 SportBusiness International • Issue number 235 • August/September 2017 International number 235 • August/September • Issue SportBusiness

AS BROADCASTERSNew AND RIGHTS-HOLDERSrealities GET TO GRIPS WITH VR, IS THE TECHNOLOGY FINALLY READY TO LIVE UP TO THE HYPE?

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N o . 235 : AUGUST/SEPTEMBER 2017 3 CONTRIBUTORS

FRANK DUNNE Chief sports writer Contents/1FEATURES Frank Dunne is a specialist in media rights hav- ing formerly edited sister publication TV Sports Markets. He also regularly covers the subject 38 of sports sponsorship for stablemate Sports Sponsorship Insider. @frankdunneTVSM

8 KEVIN ROBERTS BUSINESS AS USUAL Founding editor, SportBusiness International BeIN says Saudi blockade will Kevin Roberts is the founding editor of have limited eff ect on operations 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 12 London-based CPMA agency. BETTORS FROM AMERICA @krobsportbiz Coalition comes together to make betting legal in US 30 ROBIN JELLIS TAKING CARE OF BUSINESS Editor, TV Sports Markets Robin Jellis joined SportBusiness Group in The B2B activations changing February 2013 as a reporter for TV Sports sports sponsorship Markets and Sports Sponsorship Insider. He began writing solely for TV Sports Markets in December 2013 and became editor of the publication in June 2015. 38 @robinjellis HEADLINER Wada president Sir Craig Reedie discusses the challenges that sport faces in restoring public trust MATTHEW GLENDINNING Editor, Sports Sponsorship Insider Matthew Glendinning has been writing on the 60 business of sport since 1996. He joined the SportBusiness Group full-time in 2007 ATTENTION TO DETAIL and now edits sister title How Wimbledon sweetens the Sports Sponsorship Insider. fan experience @mattglen 46 69 THE STRATEGY BEHIND A SMILE 46 RICHARD CLARKE A LEAGUE OF THEIR OWN Digital correspondent Academic Simon Chadwick on Richard Clarke is a digital and social media the state’s role in Chinese sport The Europa League is emerging as a consultant. He has run the social media major brand in its own right accounts at major football clubs in the UK and USA having worked for EPL club Arsenal and MLS club the Colorado Rapids. 72 @MrRichardClarke STICK OR TWIST 20 The new international league NEW REALITIES set to revolutionise hockey’s Is virtual reality ready to live up to calendar its promise in the sports sector?

MARK DREYER China correspondent 77 Mark Dreyer is a specialist in the growing ARMCHAIR FANS sports sector in China. He is based in Beijing and founded and edits China Sports Insider. Rugby spectators take a ride on 20 Before working for this publication, he worked the Samsung Slider as a football reporter for Sky Sports. @DreyerChina

08/09.17 : SportBusiness International 4 N o. 235 : AUGUST/SEPTEMBER 2017

Editor Ben Cronin [email protected]

Contents/2REGULARS Chief Sports Writer Frank Dunne

Founding Editor Kevin Roberts 80 Head of Content Kevin McCullagh

Creative Director Andy Medley

37 Production PEOPLE Squires Media

Industry moves, promotions Production and Distribution Manager and departures Craig Young

Media sales [email protected] 56 Robin Hume SECRET FAN Information sales Ben Cronin visits the Wimbledon [email protected] Championships Max Frew Laurence Burton Scott Longhurst Patrick Odling

61 Director of Sales ESPORTS NEWS Tom McMullen

Gamer and influencer Liam Head of Group Business Development Thompson’s regular round-up Paul Santos

Head of SportBusiness Group Ben Speight

67 www.sportbusiness.com/sportbusiness- CHINA NEWS international

56 Mark Dreyer’s update on the Published by: emerging sports sector in China SportBusiness, a division of SBG Companies Ltd, 133 Whitechapel High St London E1 7QA 11 76 T: +44 (0) 20 7265 4100 COMMENT VENUES & FACILITIES F: +44 (0) 20 7265 4220 Kevin Roberts, founding editor, The latest news on sports stadia, Printed in the UK by Pensord Press SportBusiness International venues & facilities www.pensord.co.uk The paper used within this publication has been sourced from a Chain-of-Custody certified manufacturer, operating within 18 80 international environmental standards MEDIA NEWS AND ANALYSIS such as ISO14001 and EMAS. This is to ensure CONFERENCES & EVENTS The best of TV Sports Markets sustainable sourcing of Sports industry event calendar the raw materials, sustainable production and to minimise our carbon footprint.

24 SportBusiness International is published monthly © SBG 82 Companies Ltd 2017. All rights reserved. No part of this DIGITAL COMMENT publication may be reproduced or transmitted in any EXECUTIVE HACKS form or by any means, or stored in any retrieval system Richard Clarke on the latest of any nature without prior written permission, except 28 Sport industry executives share for permitted fair dealing under the Copyright Designs innovations in digital and social media the secrets of their success and Patents Act 1988. Application for permission for use of copyright material including permission to reproduce extracts in other published works shall be made to the publishers. Full acknowledgement of author, publisher and 28 source must be given. ISSN 1757-5346. BRANDS & MARKETING The best of Sports Sponsorship Insider 61

08/09.17 : SportBusiness International (population between 1.3mil - 3mil) SportBusiness Ultimate Sports Cities Awards 2016 6 SNAPSHOT

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

WHAT THE....? OPEN SEASON In a case of a sport truly bringing itself up The R&A, organisers of the Open NUMBER CRUNCHER to speed with the digital age, the World Championship golf tournament, have Taekwondo Federation has completed a launched a campaign to prevent the rebrand to World Taekwondo in an effort American media referring to the event as to shake off the negative connotations ‘the British Open’. According to an article associated with its former acronym in the Wall Street Journal, NBC Sports has m ‘WTF’ – text speak for something entirely had to agree in a contract that it would The amount Microsoft is different. It could have been worse for only refer to the tournament as ‘the Open’ $100 the sports body. For instance, numerous or ‘the Open Championship’ in order to reported to spend on sports companies, institutions and even people secure broadcast rights. So far, the campaign sponsorships every year have chosen to rebrand after the name has had limited impact. Analyst Johnny (PAGE 30) ‘ISIS’ came to represent something other Miller is said to repeatedly correct himself than the Egyptian goddess of fertility. The on air while referring to the tournament. Institute for Science and International Insistence on the name has also complicated Security, however, has decided to stand rights negotiations in Japan. “Business GOOD MONTH: its ground and thinks it is the murderous partners in Japan are saying ‘Please call it the BARCELONA jihadist group that needs to change. It British Open because it will mean more to has requested, somewhat ambitiously, people here,’” IMG’s Alastair Johnston told Spanish LaLiga football club Barcelona that all of the world’s media and NGOs the US publication. For the record, the Open has posted record turnover of €708m stop using ‘ISIS’ to refer to the terrorist Championship was established in 1860, ($815m) for the 2016-17 financial year. organisation.Z while the US Open started in 1895. Z The club generated a profit after tax of €18m to reduce the club’s debt by €24.5m to €247m. The results indicated that the club’s strategic plan to become the first TWEET OF THE MONTH football club to reach €1bn in revenues by 2021, announced in the February issue IOC MEDIA IOC MEDIA @iocmedia Jul 11 of SportBusiness International by Manel IOC makes historic decision in agreeing to award 2024 and Arroyo, its vice-president of media, marketing and communication, remains 2028 Olympic Games at the same time on course. Z http://bit.ly/2t1wz81 #IOCSession 08:29 am - 11 JULY 2017 11 375 465 BAD MONTH: BRITISH RACING DRIVERS’ CLUB

The British Racing Drivers’ Club (BRDC), the owner of Silverstone racing circuit, has formally triggered the break clause in its contract with Formula One, stating that the British Grand Prix is no longer “financially viable”. The timing of the announcement, just before the start of this year’s Grand Prix, did not go down well with Formula One Group, which accused it of using the announcement to “posture and position” itself. If BRDC triggered the break clause as a negotiating strategy, it would not have been happy to see London Mayor Sadiq IOC president Thomas Bach holds aloft the hands of Los Angeles Mayor Eric Garcetti and Khan later announce that he would be Mayor of Paris, Anne Hildago, after the decision was taken to award the 2024 and 2028 receptive to the idea of an F1 race on the Olympics at the same time. Paris is expected to go first. Z streets of London. Z

08/09.17 : SportBusiness International

06-07snapshot.indd 6 26/07/2017 09:51 SNAPSHOT 7

NFL DOMINATES US RATINGS AT HALF-TIME UNKNOWNS AND KNOWN UNKNOWNS The NFL has secured the 10 largest sports TV audiences in the USA at the halfway Ben Cronin, Editor point of 2017, according to the Sports Media Watch website, www.sportsmediawatch. com. Unsurprisingly, the site, which aggregates data from different sources, claims Super Bowl 51 is the most-watched sports event of the year to mid-July. The viewing Human beings are hard-wired to dislike figures do not include streaming. Outside of the NFL’s stranglehold on the top 10, the uncertainty. Psychological studies have shown Clemson-Alabama college football national championship earned a ranking of 11th that given the choice between receiving a definite electric shock now or taking the risk of overall with 25.3 million viewers. The clinching game of the NBA Finals ranked 13th possibly receiving one at an unspecified time with 24.5 million viewers. in the future, people invariably opt to take the Most-watched sporting events of 2017 predictable jolt. The same instincts are played out in business where leaders often find known Through July 12; does not include streaming negative consequences to be less stressful than Rank Sport Game Vwrs. Net the unknowns. To take the anthropology a bit further, it all has 1 NFL Patriots-Falcons : Super Bowl 51 111.32m FOX something to do with the striatum, the risk and 2 NFL Packers-Cowboys : NFC Divisional 48.52m FOX reward part of our brains which anticipates good 3 NFL Steelers-Patriots : AFC Championship 47.95m CBS and bad consequences. According to scientists, not

4 NFL Packers-Falcons : NFC Championship 46.28m FOX only is this capable of subconscious mathematical estimations, it also goes into overdrive when the NFL Giants-Packers : NFC Wild Card 39.35m FOX 5 odds approach 50 per cent. 6 NFL Steelers-Chiefs : AFC Divisional 37.11m NBC At the present time, there is no shortage 7 NFL Dolphins-Steelers : AFC Wild Card 29.87m CBS of things to keep the collective striatum in a perpetually over-stimulated state. Last year, the 8 NFL Texans-Patriots : AFC Divisional 29.82m CBS election of Trump and Brexit were said to have 9 NFL Seahawks-Falcons : NFC Divisional 28.70m FOX heralded a new era of uncertainty, but more recent 10 NFL Lions-Seahawks : NFC Wild Card 26.89m NBC events must be equally confusing to those internal Source: SportsMediaWatch.com Source: calculators. Cases in point in this month’s issue, particularly for sport, include the blockade of Qatar (page 8) and increasingly unpredictable levels of state intervention in China (page 69). FORMULA 1 ON PAY TV The Western sports sector has been one of the UK TV audience figures for the 2017 Formula more obvious beneficiaries as the two countries have sought to spend their vast wealth in the One season make for interesting reading, pursuit of soft power but the unstable geopolitical after Sean Bratches, managing director of environment has revealed the error of taking this commercial operations for the Formula One for granted. Group, criticised the 100-per-cent pay-TV In our lead feature in this issue, Qatari deals that it inherited from the previous broadcaster BeIN Media Group reassures its management. The table opposite compares the partners that it is business as usual in the region. audience figures for the four most-viewed live But the multiple sports bodies with which it has races of 2017 on free-to-air broadcaster Channel deals are entitled to weigh up the odds of what Four versus those for pay-TV broadcaster Sky’s the blockade might do for their ability to reach dedicated Formula One channel, SkySports F1. audiences in the Middle East and elsewhere. That Formula One will be shown exclusively on Sky Saudi Arabia appears to want to use the blockade for five years from 2019, but Bratches says the to snatch some soft power of its own simply adds sport’s new owners favour a hybrid of free-to- to the sense of finely balanced risk and reward. air and pay-TV deals. Source: BARB In China, the uncertainty stems from the unpredictable actions of the government, which wants to control flight of capital by curbing overseas investment. Dalian Wanda has been QUOTES OF THE MONTH targeted in a clampdown on companies running large levels of debt, something that will be of worry “You go to VR for another angle “If you’re talking about having to those sports properties in which it has invested so heavily. on something big. We want a problem, you started with Professor Simon Chadwick’s advice to people to use this as the biggest country in businesses operating in China could equally apply to the situation in Qatar. He suggests they will need a companion.” the world.” to mitigate risk and have contingency plans in place. Stress levels and the sanity of the shared psyche MICHAEL DAVIES, FOX SPORTS US SIR CRAIG REEDIE, WADA depend on a successful rebalancing of the odds. (PAGE 20) (PAGE 38) [email protected] @CroninBenjamin

08/09.17 : SportBusiness International 8 QATAR & BEIN SPORTS

News analysis

BUSINESS AS USUAL | BeIN SAYS SAUDI BLOCKADE WILL HAVE LIMITED EFFECT ON OPERATIONS

F BeIN says reports its beIN Sports channels have been switched off in Mena are ‘inaccurate and unhelpful’ F The IOC has ‘no immediate concerns’ about beIN’s ability to broadcast the 2018 winter Olympics in the Mena region F Uefa becomes the first major rights-holder to test whether Saudi Arabia’s stated sports-rights ambitions are genuine

Khalifa International Stadium, which will host Qatar 2022 Fifa World Cup games, was recently reopened in Doha (Neville Hopwood/Getty Images for Qatar 2022)

BY FRANK DUNNE AND ROBIN JELLIS world. The media group added the blockade assessing the feasibility of taking over would have “zero impact” on its ability existing contracts held by beIN Sports. eIN Media Group, the Qatari to honour global distribution deals for One of the 13 conditions for lifting the broadcaster, has hit out angrily French league football and the international blockade imposed by Saudi Arabia, Bahrain, at media reports suggesting beIN federations of tennis and handball. the United Arab Emirates and Egypt was the Sports channels are being blacked closure of Qatar’s Al Jazeera news agency and Bout in the Middle East and North Africa Lifting the blockade “its affiliates”. Those affiliates were listed (Mena) as a consequence of the Saudi Arabia- BeIN is also unperturbed by reports that in private correspondence between Saudi led economic blockade of Qatar launched on Saudi Arabia is planning to roll out its own Arabia and Qatar, and do not mention beIN June 5. major sports broadcasting operation with Media Group or its premium beIN Sports In an exclusive interview with a view to supplanting beIN Sports in the channels. SportBusiness International, the company also Mena region. The Saudis have sought advice BeIN Media Group grew out of Al Jazeera dismissed fears about its future existence, from independent consultants on building Sport, the Qatari sports channel launched both in its core market of Mena and other a rights-acquisitions strategy. SportBusiness in November 2003. The first beIN Sports territories in which it operates around the International understands this includes channels outside Mena were launched in

08/09.17 : SportBusiness International NEWS ANALYSIS : QATAR & BEIN SPORTS 9

“The reporting and the rhetoric is so inaccurate and unhelpful, because the headlines say things like ‘beIN switched off in BUSINESS AS USUAL | BeIN SAYS SAUDI BLOCKADE Saudi Arabia and the UAE’ – it’s just not true” WILL HAVE LIMITED EFFECT ON OPERATIONS SPOKESPERSON, BEIN MEDIA GROUP

F BeIN says reports its beIN Sports channels have been switched off in Mena are ‘inaccurate and unhelpful’ France and Asia in 2012. In December 2013 F The IOC has ‘no immediate concerns’ about beIN’s ability to broadcast the 2018 winter Olympics in the Mena region the sports operation was spun off completely from the Al Jazeera Media Network. The F Uefa becomes the first major rights-holder to test whether Saudi Arabia’s stated sports-rights ambitions are genuine following month beIN Media Group was incorporated and became the holding company for the sports channels, with Al Jazeera Sports channels being rebranded beIN Sports. All these businesses are owned by sovereign wealth funds belonging to the ruling family of Qatar, the House of Thani.

Separate from politics The broadcaster told SportBusiness International in early July that it was not a target of the blockade: “BeIN Sports is an independent media company which is not affiliated with any news network and we continue to operate successfully throughout the dispute. We believe sport bridges culture, captures imaginations and should ultimately BeIN said sanctions will not affect the distribution deals it has with organisations such as the International Handball Federation (Getty Images) remain separate from politics. Despite the loudness of the rhetoric, the impact on our BeIN has invested billions of dollars into There have been reports that the beIN business in Mena has been minimal. There the industry. In addition to its broadcast channels would be taken off the Saudi Arabia- are only three territories that are affected, operation in Mena, it operates beIN Sports based Arabsat and Egypt-based Nilesat and in a very minor way, out of 23.” channels or pay-television platforms in satellites. But beIN is the largest single The broadcaster added: “The reporting and France, Spain, Turkey, the US, Canada and customer for each, so the cost of removing the rhetoric is so inaccurate and unhelpful, across Asia. Through these businesses it has the beIN channels would be substantial. because the headlines say things like ‘beIN hundreds of rights deals with sports bodies Even if that were to happen, Qatari-owned switched off in Saudi Arabia and the UAE’ – (see table for main rights deals in Mena). satellites could still service the whole Mena it’s just not true.” BeIN also has deals worth hundreds of footprint. Officially, the Saudi-led blockade is a millions of dollars to distribute the global The broadcaster said its sports output reaction to Qatar’s support for Islamist media rights of the Ligue de Football continued to be delivered by satellite across movements such as the Muslim Brotherhood Professionnel, France’s football league, the the region, including the blockade territories, in Egypt and Hamas in Palestine, and the International Tennis Federation and the and that it had started legal action over the country’s close ties with Iran – Saudi Arabia’s International Handball Federation. ending of IPTV delivery of its channels: main economic and political rival in the “We started legal proceedings this week for region. Qatar has strenuously denied any Legal action wrongful termination. UAE have terminated suggestions it supports Islamist terrorism. Although Al Jazeera’s news operations are our distribution on IPTV services without Many observers see the dispute as a regional Saudi Arabia’s main target, beIN Sports has telling us. We have existing agreements. We power play set against the background of been affected by the blockade. In Abu Dhabi haven’t been informed of anything. They’re in economic diversification, with countries in and Dubai its IPTV streaming services have breach of these contracts.” the region moving away from a dependence been blocked. In Saudi Arabia and the UAE Losing visibility in an important region like on dwindling oil and natural gas reserves. beIN’s points of sale – mostly in shops and Mena is the immediate concern for rights- The four nations extended the original July malls – have been closed, preventing the holders. The deeper fear is that the dispute 3 deadline for their 13 demands by 48 hours company signing up new subscribers. might escalate to a position where the to July 5. On July 7, with Qatar still refusing So far, the impact of these measures has Qataris would agree to shut the broadcaster to acquiesce, they released a joint statement been limited. Of beIN’s subscriber base in down to appease its opponents – leaving saying their initial list was now void, but the region, which is thought to be just over rights-holders with no broadcast partner in threatening new political, economic and legal three million households, only about five per multiple markets at short notice and worried sanctions. cent receive their programming via IPTV. that rights-fee commitments would not be The sports broadcasting industry has been The remainder receive it by satellite, which met. At the time of writing, there was no holding its breath since the blockade began. had not been affected at the time of writing. threat of Qatar closing either Al Jazeera or

08/09.17 : SportBusiness International 10 NEWS ANALYSIS : QATAR & BEIN SPORTS

Continued from the previous page... BeIN Media Group sports rights in the Middle East and North Africa beIN Media Group. But the situation is highly BASKETBALL NBA shown free-to-air. Local media reported unpredictable. Fiba World Cup the objective was to break beIN Sports’s The consensus among rights-holders FOOTBALL Fifa World Cup dominance in the region, but since the initial contacted by SportBusiness International in Asian Football Confederation events announcement no further details have been the week of the July deadlines was summed Confederation of African Football events revealed and a press conference planned to up by an executive at one European football Uefa European Qualifiers explain the broadcaster’s strategy has so far league, who said: “The situation is quite not taken place. English Football Association events worrying, but we’re not panicking yet.” Rights-holders are now trying to interpret Uefa Champions League The International Olympic Committee whether this is a real, long-term proposition provided a brief statement, saying: “In terms Uefa Europa League or merely part of the short-term sabre of the impact on our partner’s commitments, English Premier League rattling. BeIN told SportBusiness International we have no immediate concerns regarding French Ligue 1 that rights-holders “realise that for the long- broadcast coverage in the Middle East and German Bundesliga term viability of their sport in the region they North Africa of the Olympic winter Games Italian Serie A need a stable and sustainable market”. But Pyeongchang 2018, which is in over six Spanish Liga there may be an element of wishful thinking months’ time. However, we are in regular MLS in this. contact with our long-term partner, beIN Brazilian national team home friendlies Sports, to monitor the situation.” Reliable partnerships HANDBALL IHF Women's World Championships The blockade is said to be of grave concern The way rights are sold in the region in the to the Asian Football Confederation. Half European Championships coming months will be a test of whether of its global rights income of $75m per MOTOR SPORT FIA Formula One World Championship rights-holders really do take a long-term year comes from a single deal with beIN Nascar view built on reliable partnerships or are which expires in 2020. The AFC declined Dakar rally merely interested in securing the highest to comment, referring SportBusiness MULTI-SPORT Olympic Games possible revenue in the short term. Publicly, International to its statement of June 23, TENNIS Australian Open they usually say the former. Privately, they which said: “All stakeholders involved in Wimbledon frequently admit it’s the latter. As a senior Asian football must respect the principle of French Open executive at one major rights-holder put it political neutrality” or risk facing disciplinary this week: “The sports business is largely US Open action. short term; rights-holders want to know their International Tennis Federation events partner will be there for the next contract Difficult position ATP World Tour 1000 and 500 events run and they are generally not thinking about BeIN said those rights-holders who had been WTA Tour Premier the one after that.” in contact understood the difficult position VOLLEYBALL FIVB events On July 5 Uefa became the first major it was in: “Every time we’ve explained the Source: TV Sports Markets Rights Tracker, SportBusiness International rights-holder to test the new market dynamic situation to a rights-holder, we haven’t had by launching a tender in Mena for Champions an issue. Rights-holders accept what we say League and Europa League media rights for when we explain it and the impact on our distribution, sales, editorial and journalistic three seasons, from 2018-19 to 2020-21, with business. Rights-holders are sympathetic to capabilities is hard and takes years to a July 17 deadline. The timing of the process us being caught up in this issue.” establish.” dismayed beIN, which saw it as opportunistic. The company believes it has built up The French football league and the Uefa did not respond to a request for a reserves of credit with sports bodies by international tennis and handball federations comment. The rights to both competitions in delivering across a range of performance have so far not sought reassurances about Mena are currently held by beIN. targets as a global media-rights partner: their global rights-distribution deals. If they If the Saudis are serious in their intentions “The global relationship is part of what’s were to do so, the broadcaster said, the to build a sports broadcasting operation, really important to us and rights-holders. message would be simple: “We say business there are few more attractive properties than Our relationship with them is much bigger as usual; zero impact on our ability to deliver the Champions League. As SportBusiness than one territory, one region. It means we’re these global properties.” International went to press, beIN announced always respectful to rights-holders in Mena. The blockade has thrown up another kind that it had held on to the rights. Nasser Al We’ve invested billions in Mena, not just on of threat to beIN Sports: a potential new Khelaifi, chairman and chief executive of beIN rights: on technology, on studios, on talent, competitor, with the economic resources to Media Group, told media the deal confirmed on outside broadcast. That’s been done over bid aggressively for top sports rights. “the strength of our relationships with rights- the last 14 or 15 years, and especially the last Just over a week after the blockade was holders such as Uefa”. three-and-a-half years since we’ve been beIN. launched, the Saudis announced plans to roll Given the complexities of the geo-politics “The rights are just the tip of the iceberg. out PBS Sports, initially with five channels, at play in the dispute, it will be many months, It’s about delivery of the rights, especially in but expanding to 11. The channels would at least, before the longer-term destiny of a complex region with 23 markets. Having be carried on the Arabsat satellite and be beIN – and Qatar’s whole relationship with sport as a soft-power tool – become clear. Z

08/09.17 : SportBusiness International COMMENT : KEVIN ROBERTS 11

OUT OF THE SHADOWS

In one of the few summers without a major football tournament, Kevin Roberts examines some of the more exotic sporting fare on offer

t’s summer time and while the living may In July, Wroclaw, Poland, hosted the World France itself, these included no less than three not be easy, even we pale, pasty, cupboard- Games, where more than 1,000 athletes teams from Canada, Vietnam, a host of former dwelling Northern Europeans get a couple competed in sports including water-skiing, French colonies and even Uruguay. of weeks to embrace our inner Aussie, hit finn swimming, orienteering and sumo. In addition to a sporting schedule featuring Ithe beaches, dine al fresco and forget that When the first World Games was staged athletics, basketball, table tennis and cycling November’s just around the corner. back in 1985, it was looked on as something among others, the Francophone Games also But for some hardcore football fans this of a freak show, something reflected by the has a cultural programme which embraces hip- summer is different. This summer is the tone of a lot of the media coverage. It was hop dance along with digital and ecological odd one out in a four-year cycle of major portrayed as a sort of wannabe Olympics of creation, song and storytelling. In some events which throws up the Fifa World Cup sports which would never catch on. ways, this can be seen as a nod to Baron de and Uefa Euros, Olympic Games (which is But under the auspices of the International Coubertin’s original Olympic dream, which somehow okay because it includes football) World Games Federation, the competition provided for competitions in art and poetry. then…. nothing. It’s as if the sports calendar and its constituent sports and international Now the Francophone Games are never has been left fallow. going to be a massive global media property It is the year when the end of the domestic – they’re not intended to be – but they do football season in May brings a sense of loss “The absence of big football again underscore the diversity of the sports which won’t be rectified until autumn, when ecosystem and a willingness to look at new the frivolity of the holiday season has been competitions provides a little ways of bringing sport and culture together replaced by a return to normality and the space for sport to show its and, perhaps, provide an example to others. 24/7 obsession is back. Look around the world and you’ll find a A friend of mine suffers from something diversity and an invitation to look host of other events, each with its own fan called seasonal affective disorder, a condition at other events on the calendar” base and each better equipped than ever which kicks in when the days start to get to reach beyond its core, and engage more shorter and the weather colder. She feels widely through digital technology. They may as if the world is closing in on her and life federations have become a more important part well never attract the bored football fan, but loses much of its lustre. That’s pretty much of the overall sports world and of the broader if there is an audience out there, they can the way that footy tragics see the summer of Olympic family through their membership now expect to reach it or build it. 2017. of GAISF. The relationship with the Olympic Out of the shadow of the mega events, They take no pleasure in the wonderful Movement is evidenced by the decision to carry 2017 is delivering a great summer of sport sporting staples of each and every summer. the World Games on the Olympic Channel, built on the hardy annuals and events which They don’t care about Wimbledon, F1, giving it broader reach and exposure. have often been easy to ignore. But for the golf majors, the Lions or World Athletics The key thing is that while traditionalists business of sport, the real success of the Championships. We may empathise a little, may baulk at the prospect, some of the sports summer is not a new or exotic sport, but one but isn’t it time they got a life? featured in the World Games may well go on to which has been played for hundreds of years. First up, it’s not simply that they are wrong appear on the Olympic schedule as it evolves Helped by host England’s presence, the in believing that football sleeps through this against a backdrop of changing public appetites ICC Women’s World Cup was played in summer. There have been a host of world for watching and taking part in sport. It is no front of a full house at Lord’s and watched and continental championships at various longer a freak show, but part of the mainstream by millions on TV around the world. Its age groups, as well as the Women’s European and while it may not tempt our disgruntled success has been built over the years and Championship and qualifying games for football fans, it is an example of the way the has accelerated of late thanks to serious European club competitions, which seem to start world of sport is turning right now. media investment and funding, which have just as the previous season reaches its climax. At much the same time as the World Games seen standards rise and interest grow. Taken But more importantly, the absence of was getting under way, Abidjan, Ivory Coast, was alongside the growth in women’s football and big football competitions provides a little busy welcoming 4,000 or so participants from 77 rugby, it appears the sports business cake is space for sport to show its diversity and an nations for the 8th Jeux de la Francophonie - an getting bigger, richer and more interesting invitation to look at some of the other events event for those from French-speaking countries without inventing new sports – simply by on the calendar. or regions around the world. In addition to taking women’s sport seriously. Z

08/09.17 : SportBusiness International 12 NEWS ANALYSIS : US SPORTS BETTING

SPORTS BETTING IN THE USA | COALITION COMES TOGETHER TO MAKE BETTING LEGAL

F Bradley Act made betting on sports illegal throughout America in 1992 F American Sports Betting Coalition calls for legalisation F Legalisation could improve declining sports viewing figures

Betting is illegal on horseracing and the other major sports in most of the US, but that could soon change (Bruce Bennett/Getty Images)

08/09.17 : SportBusiness International NEWS ANALYSIS : US SPORTS BETTING 13

“Let’s face it, despite PASPA’s presence, millions of Americans bet at will in a vast unregulated illegal market that offers no oversight by law enforcement, no accountability to regulators, no protection to consumers and no concern about the integrity of games”

GEOFF FREEMAN, PRESIDENT AND CHIEF EXECUTIVE, AMERICAN GAMING ASSOCIATION

BY RYAN H ERMAN the launch of the American Sports Betting Coalition (ASBC), which has brought enry Hill was the mobster whose together gaming experts, law enforcers and life story was immortalised in state politicians to support the legalisation Martin Scorsese’s gangster epic, of sports betting. The movement was further Goodfellas. SPORTS BETTING IN THE US emboldened recently, when the US Supreme HHill’s extensive list of crime and Court agreed to hear New Jersey’s appeal BY NUMBERS misdemeanours included drug trafficking, in its long-running quest to offer legalised racketeering, arson, armed robbery, extortion sports betting, overturning a series of and murder. judicial setbacks for one of the few states However, there was one other offence that already offers legal online gaming. he committed which was all but ignored in Freeman says: “Let’s face it, despite the movie. $150bn PASPA’s presence, millions of Americans From 1978 to 1979, Hill threatened and the estimated figure that is bet illegally bet at will in a vast unregulated illegal bribed members of the Boston College on sports every year market that offers no oversight by law basketball team to fix matches. This was enforcement, no accountability to regulators, one of several betting scandals to rock US no protection to consumers and no concern sports during the 70s and 80s, the most high about the integrity of games. profile of which saw Cincinnati Reds baseball “For example, in the two biggest sports player-manager Pete Rose judiciously events of the year, the Super Bowl and choosing which games he would bet on his the estimated$14.2bn annual contribution to the NCAA men’s basketball tournament own team to win. This resulted in Rose being US GDP from legal sports betting (otherwise known as ‘March Madness’), banned from the sport and he remains in Americans wagered nearly $15bn (€13.1bn) exile to this day. and 97 per cent of that wagering was illegal. The ASBC will pursue an aggressive, Irreparable damage proactive campaign.” Those scandals prompted senior sports officials and politicians to question whether the amount$5bn that sports betting could Compelling arguments betting was causing irreparable damage to generate in tax revenues Crucially, the AGA believes that technology, the integrity of US sports. They included which has allowed sports betting to grow former NBA star Bill Bradley, who went on to exponentially outside of the US, also provides become Democratic Senator for New Jersey. one of the most compelling arguments for He was one of the leading figures behind the repeal of PASPA. the Professional and Amateur Sports Freeman explains: “There are a couple Protection Act (PASPA) of 1992, also known of Republicans58% and 50% of Democrats of UK companies that specialise in data as the Bradley Act. This made betting on support ending the ban integrity. They are tracking all of the input sports illegal throughout America, except for that goes into every game that takes place any state that was running licensed sports - how much is being bet, who’s betting it, pools or lotteries, which explains why you where the bets are taking place, what is the can still bet on any sporting event in Nevada. betting history of these individuals, who But there is unquestionably a groundswell is coaching those games and who are the of opinion rising within the US which of Americans 69%agree that “allowing sports officials. All of that input goes into these contends that PASPA is outdated and should betting is something for the people of each algorithms, so it’s very easy for them to be scrapped. state to decide, not the federal government” identify if there is an anomaly. Geoff Freeman is the president and “I’ve been blown away by these data chief executive of the American Gaming integrity companies and the work that they

Association (AGA), an organisation that Source: 2017 report by Oxford Economics do. There is nothing like seeing how obvious represents the interests and employees of it is when the fix is in. the casino industry, but also has been at the “I do believe this is the most significant forefront of the campaign to repeal PASPA thing that has changed from 1992 to 2017. and make sports betting legal. The access to data that we have today In the middle of June, Freeman announced is fundamentally different and shame

08/09.17 : SportBusiness International 14 COVER STORY : US SPORTS BETTING

Continued from previous page...

The state of US betting Legal and operational: Nevada, Oregon

While betting is still illegal in most of the US, there are four states where it is allowed. Nevada, Delaware, Legal: Delaware, Montana Montana and Oregon are exempt from PASPA, although in practice betting is only available in Nevada Proposed: Pennsylvania, Michigan, South and Delaware. Sports betting bills have recently been proposed in seven states – New York, Pennsylvania, Carolina, New York, Maryland, West Virginia, Michigan, South Carolina, Maryland, West Virginia and Connecticut. Connecticut

on us if we’re not using it.” Those UK liberalisation of sports betting rooted in the markets instantaneously and subsequently companies are Perform Group and Genius fact that they believed it would dramatically provide evidence to help sports ascertain if Sports. Tom Russell is general counsel for increase the risk of their events being fraudulent activity has occurred. Genius Sports, and he tells SportBusiness manipulated via betting-related corruption. “For many of the people we’ve spoken to, International: “Genius Sports has been this is a revelatory technology and one which invited by the AGA as well as a number Suspicious odds movements will play a vital role in raising awareness of other key stakeholders to educate key “In our conversations with state regulators and reducing the fears of threats to sports members of law enforcement (including and lawmakers, we have been able to integrity regulatory process.” the FBI, US Immigration and Customs demonstrate how advances in technology Russell believes the case to scrap PASPA Enforcement, and the Department of have allowed real-time monitoring and comes down to a combination of factors. Homeland Security) as well as federal and control over betting activity across the “Sports betting is already happening state lawmakers about how we work with globe. in America – the market is estimated to sports leagues and federations to protect “For example, SportIM, our bet be worth US$150bn a year,” he says. “We the integrity of their events. monitoring system, enables leagues and believe it is only a matter of time before the “Historically, there has been a strong federations to pinpoint suspicious odds federal government seizes the opportunity aversion among US sports leagues to any movements across both legal and illegal to achieve three key objectives that

08/09.17 : SportBusiness International COVER STORY : US SPORTS BETTING 15

HOW THE MAJOR SPORTS Extra: STAND ON SPORTS BETTING regulation brings: grant greater protection to consumers who wish to place bets on sports; attract millions of dollars in tax revenues; and crack down on betting-related Basketball: In an op-ed piece for the said: “Gambling, for us, is probably an entirely corruption.” New York Times published in 2014, NBA different focus than, say, football or basketball, But the road towards regulated and legal commissioner Adam Silver wrote: “There is either at the pro or at the college level. Our sports betting is going to be a long one. As an obvious appetite among sports fans for a game doesn’t lend itself to gambling in the PASPA is a federal law, it will need to be safe and legal way to wager on professional same way that football and basketball do.” changed through Congress. That process sporting events.” Last year Silver told ESPN: takes up to a year and it will be reliant on all “Just like the stock market with insider trading, Baseball: Earlier this year, in an interview the key players working together. if you don’t have an open exchange, you can’t with Yahoo Finance, MLB commissioner Rob Freeman says: “The simple truth is if know what insider trading is going on.” Manfred said: “Sports betting happens. Are you have the gaming industry, the leagues we better off in a world where we have a nice, and the players’ unions, broadcasters and American football: In April, NFL strong, uniform, federal regulation of gambling other interested parties aligned, including commissioner Roger Goodell said: “I think that protects the integrity of sports, provides members of this coalition, the legislation will we still strongly oppose [among ownership] sports with the tools to ensure that there is get done. legalised sports gambling. The integrity of our integrity in the competition ... or are we better “And that’s what the AGA has been doing game is No.1. We will not compromise on that.” off closing our eyes to that and letting it go offline, and behind the scenes, to generate However, the NFL is due to have a franchise in on as illegal gambling? And that’s a debatable alignment on what needs to be done. the gambling mecca of Las Vegas by around point.” “If we go to Congress and expect them to 2020. resolve the differences between the various College sports: The National Collegiate stakeholders, then it won’t get done.” Hockey: NHL commissioner Gary Bettman Athletic Association’s (NCAA) current position has largely sidestepped the issue and last year is to oppose sports betting. Z Frank discussions Freeman has been emboldened by the fact that he recently met the players’ unions across the major US sports and there have The picture may be also be clouded by this and how the legal market does this, so as been frank discussions in preparation for the fact that one of the most outspoken not to give too many unnecessary advantages legalisation. opponents of sports betting is billionaire to the illegal market. It’s important from the The broadcasters and rights-holders casino owner Sheldon Adelson. He is one AGA’s perspective to educate all stakeholders may not openly express an opinion on the of the Republican Party’s largest donors that your tax rates have to be reasonable, so subject, but a recent study by Neilsen Sports and made the single biggest financial as not to create unnecessary costs and give in the US revealed that adults who bet on an contribution to Trump’s inauguration party. the illegal market a leg up.” NFL game watch 19 more games during the But even if the ASBC overcomes these He believes the UK represents perhaps regular season than fans who don’t gamble. hurdles, with PASPA repealed and replaced the best model of how a regulated betting With fears circling around the industry about with a new act to legalise sports betting, how market can operate and tells SportBusiness the decline in viewing figures, that statistic a market will function day to day in the US is International: “There is heavy regulation in probably tells its own story. a bit like trying to predict what will happen the UK. There are all the rights concerns However, even though the attitudes of the to the UK economy when it leaves the about money-laundering and about underage commissioners running the major sports has European Union in 2019. minors getting online. shifted in recent years, they are still largely wary Leading bookmakers such as Betfair “I think the UK is a model of how to do a of betting, as illustrated in the above table. and William Hill already have operations lot of this right, but with an understanding Meanwhile, President Trump has largely in America, although with huge revenues that even leaders in the UK will tell you there kept his counsel on the subject, having potentially at stake, any change in the law is room for improvement. But I think what’s previously expressed his support for might also make them ripe for a takeover. important is that even in a heavy regulated legalising sports betting in his previous The logical step would appear to be a market like the UK you don’t see a thriving guise as a casino owner. But when posed the state-by-state approach, rather than a one- illegal market. question by a reporter back in February, he size-fits-all solution. One option is to filter “The customer is gravitating towards the also said that the key parties must be aligned. all the bets through Nevada and each state safe regulated market and we believe that “Well, what I’d do is I’d sit down with the from where a bet was originally placed would if the same type of market is on offer in the (sports) commissioners,” he said. “I would receive a tax credit. US, that over time there will be a significant be talking to them and we’ll see how they shrinking of the illegal market.” feel about it. Unnecessary costs Freeman has little doubt that he has “I would certainly want to get their input Freeman explains: “As states begin to figure backed the right horse and concludes: and get the input from the various leagues, out how they regulate this, they need to “Everything is trending in the right and we’ll see how they feel about it. I’d also determine how you sign people up coming direction on this. We’ve never been more get the input from lots of law enforcement into properties or doing it online. They will confident that we will get to a regulated officials, because, obviously, that’s a big step.” have to understand how an illegal entity does market in the US.” Z

08/09.17 : SportBusiness International 16 ADVERTISING FEATURE

“No matter the US betting landscape... Integrity must be non-negotiable.”

There is a lot of discussion about if and how sports betting might evolve in the United States and impact sports there. Sportradar’s Managing Director Integrity Services Andreas Krannich highlights some critical considerations...

Q: How would you characterise the status issue needs to be overseen at a federal level. ensure that matchfixing issues are kept to of sports betting in the US? Whatever happens, it will be crucial that the an absolute minimum (sport integrity)? And Changing and what we write today may relevant stakeholders understand the risks four, how do US stakeholders evaluate the be different from what I would write and bring in the best partners, systems and credibility of those proffering expertise in tomorrow. But as at today, there is a great solutions to manage those risks. this whole discussion (ie expert integrity)? deal of excitement about the Supreme Court’s recent decision to look into New Q: What are the key areas that need to Q: So let’s start with market integrity. Jersey sports betting. Some think SCOTUS be carefully managed if sports betting What are your thoughts on any could ban sports betting across all states, opportunities open up in the US? regulatory body? but most think there is a good chance states I would underline four areas that have Ideally the regulator should be a national will be allowed to offer sports betting once their roots in integrity. One, how is the regulator to provide a level of oversight PASPA is deemed unconstitutional by the market overseen from a regulatory point and consistency across states that Supreme Court. of view (ie market integrity)? Two, how will bring clarity to the industry. But Should that occur, the US will have to do sports ensure that the data that drives irrespective of whether regulators are quickly decide how it manages this seismic sports betting nationally and internationally state by state or national, it is important change, whether it allows things to develop supports a credible betting market (ie data that relevant legislation really empowers on a state by state level or whether the integrity) Three, how do key stakeholders them to meaningfully oversee the industry,

08/09.17 : SportBusiness International ADVERTISING FEATURE 17

betting market, serving over 550 operators This year, the EU Commission funded a worldwide. But should sports sign up with major report called BETMONITALERT the wrong data partner, they run the risk which critically evaluated the monitoring of data delays, courtsiders, ghost matches and alerting systems used to detect and other abuses that leave competitions, matchfixing. They asked probing questions operators and fans vulnerable to financial of those purporting to offer insight and and reputational harm. systems in this area. US stakeholders will need to ask similarly probing questions of Q: So now sport integrity. Does more self-proclaimed expert organisations, bodies betting mean more matchfixing? and individuals who may want to be part stringently license operators and collect A mixture of factors feed into where of the integrity set-up in the US. Who have account level detail so that betting fraud, matchfixers focus: sport participant you worked with? Who can we contact to money laundering and matchfixing can be income, regularity of payment, individual vouch for your input? Walk me through picked up. For example in Italy, the national participant vulnerabilities that can be sports betting regulator ADM is a useful exploited, legislation, law enforcement template for the US. They are empowered resources and priorities. What is clear is to collect anonymized account level detail that stakeholders do need to be proactive from Italian betting operators and they to ensure exploitable vulnerabilities are work with Sportradar to process and analyze minimised. In our 12 years at the forefront that data in a way that enables ADM to find of this area, Sportradar has offered the bets and activities of concern that can then only truly global monitoring system that be investigated and ultimately prosecuted. has consistently launched, supported and secured convictions, with over 200 sporting Q: What about sports data integrity? Why sanctions and over 20 criminal convictions is this so important? secured from Laos to Austria, Albania to The data collected by or on behalf of Australia. Whether our system is employed your systems and processes on site? How sports drives how fans understand match by federations (as it already is by the likes long have you been doing this? What is momentum, but it also impacts on odds of the NBA, NHL, MLS, FIFA, World Rugby your track record? Can you provide specific values and odds changes for bookmakers. and others across 13 sports) or by public evidence or independent verification So credible, fast, accurate, reliable data institutions such as law enforcement of your expertise? How do you explain collection is fundamental to a safe agencies or betting regulators (as it already seeming contradictions? The benefits for environment which includes rigorous many stakeholders if US sports betting controls over the people collecting the opens up are potentially seismic. Sports data. US sports will need to carefully bodies and regulators need to make sure evaluate who they work with in this regard. they are getting the right advice, support Sportradar already have a range of data and protection by stress-testing the claims partnerships with the likes of the NBA, of service providers in this area. Because NFL, NHL and NASCAR as well as a huge even in the area of integrity protection, not spectrum of relationships with sports and everyone acts with integrity... Z leagues internationally and in other parts of the world. These trustful relationships are based on our years of experience and Since 2001, Sportradar has established a position excellence, and are testament to our focus at the forefront of the licensed sports betting and investment in our data collection ecosystem worldwide, providing an unrivalled recruitment and technology, as well as is in countries such as Australia, Norway, array of solutions to the world’s leading betting ongoing monitoring, quality assurance Italy and Hong Kong), it is critical that US brands. and evaluation. Indeed, we are the most stakeholders have insight into their own Building on this expertise, Sportradar was the trusted data provider to the licensed national betting market but also wider first company to put together a bet monitoring international betting activities. And that system and supporting prevention services. As insight should absolutely be complemented at today, Sportradar’s Integrity Services, as well by expert intelligence capabilities, as as the integrity of its systems and practices are well as educational solutions to ensure respected and relied upon by sports federations investigations are comperehensive and and leagues, law enforcement agencies, sport participants are made aware of the public authorities and a whole range of other issues and how it can encroach into their interested parties. careers and lives. To learn more about how Sportradar is working with sport for the benefit of sport, Q: You finished with expert integrity. please visit www.sportradar.com or www. How can experts be identified? sportradar.usx

08/09.17 : SportBusiness International

16-17_spsoprtRadarAM.indd 17 26/07/2017 09:03 18 NEWS ROUND-UP

Media THE MOST POPULAR NEWS STORIES ON TV SPORTS MARKETS

DEAL OF THE MONTH BY ROBIN JELLIS

The England & Wales Cricket Board (ECB) completed five-year domestic deals, from 2020 to 2024, with pay-television broadcaster Sky and public-service broadcaster the BBC worth a total of £1.1bn (€1.2bn/$1.4bn).

Is this a good outcome? Yes, for two reasons. First, the ECB has increased its overall media-rights revenue by more than 120 per cent. Second, it has secured coverage on the largest free-to-air platform in the UK. Sky will pay by far the bigger share as it will continue to hold the most attractive ECB content on an exclusive 1 SAUDI ARABIA TO SUPPORT NEW SPORTS CHANNELS basis. But the ECB hopes that having coverage Up to 11 new sports channels that will be based in Egypt and funded by Saudi available free-to-air will increase interest and Arabia are set to be launched in the coming weeks and months, according to participation in the sport. Muflih Al-Hafatah, chairman of the Saudi Media City complex. The channels Why has the fee increased so much? will be launched under the PBS Sport name, with Al-Hafatah saying that they will be “Egyptian with 100-per-cent Saudi capital”. When the ECB last sold its domestic media rights, in January 2012, Sky was the only viable broadcaster of its rights. Then, Sky agreed a four- 2. NFL SIGNS DUO TO BUILD GAME PASS IN EUROPE year deal, from 2014 to 2017, and in January 2015 American football league the NFL has entered into a partnership with global took up an option to extend its deal for 2018 and sports marketing company Bruin Sports Capital and advertising and public 2019. This time Sky faced competition from pay- relations giant WPP, in order to drive expansion of its Game Pass OTT service television rival BT Sport. throughout Europe. Through the agreement, Bruin and WPP have formed a Why is there free-to-air coverage? new company that will evolve the Game Pass business as part of the league’s The new deals are a personal triumph for the international growth strategy. ECB’s chief executive, Tom Harrison. He has helped the ECB secure a huge fee increase while 3. BT SPORT SECURES EXCLUSIVE RIGHTS TO EUROPEAN CLUB RUGBY bringing coverage to a wider audience, at a time Pay-television broadcaster BT Sport has secured exclusive pay television when many rights-holders are shifting coverage rights in the UK and Ireland to European club rugby union’s Champions Cup exclusively to pay-television. The free-to-air move and Challenge Cup competitions after agreeing a fresh four-season contract. came soon after Harrison had told local media that the ECB had “no ambition to be the richest, Rights in the current cycle, from 2014-15 to 2017-18, are held jointly by BT and most irrelevant sport in the country”. pay-television rival Sky, but will move exclusively to BT Sport from 2018-19 until at least 2021-22. What content will the BBC and Sky have? Sky will hold live rights to all home England 4. SKY REBRANDS CHANNEL OFFERING, LOWERS PRICES national team and domestic county matches, and UK pay-television broadcaster Sky is to rebrand its 1, 2, 3, 4 and 5 sports will also hold highlights and clips rights. The BBC channels with names that focus on specific sports, while it will also launch will hold non-exclusive live rights to 21 national team and domestic matches per year, and will a cheaper subscription package. Following the rebranding, there will be two hold clips, highlights and radio rights. The BBC will dedicated channels for football, one for golf and one for cricket, as well as the show live: two men’s international T20 matches; existing Sky Sports F1 channel. A new channel, Sky Sports Arena, will offer one women’s international T20 match; 10 rugby and tennis programming. matches, including the final, from the new men’s domestic T20 competition; and eight matches, 5. TV WORRIED OVER WORLD CUP, WIMBLEDON CLASH including the final, from the women’s domestic A number of major broadcasters from around the world have complained to T20 competition. Z Fifa, football’s global governing body, over plans to stage the final of its 2018 To access more detailed analysis of the ECB’s World Cup national team competition at the same time as the men’s singles latest deals, including a breakdown of fees for the final at next year’s Wimbledon Championships tennis tournament. The current and new cycles, subscribe to TV Sports showpiece tennis match is due to start at 2pm GMT and the World Cup final Markets. in Moscow is scheduled to begin at 4pm GMT.

08/09.17 : SportBusiness International MEDIA : DATA 19

CRICKET MEDIA RIGHTS FOCUS, POWERED BY RIGHTS TRACKER

Global media-rights value of cricket

$1,200.6m

$1,041.5m $992.8m $966.2m

2015 2016 2017 2018

Sister-title TV Sports Markets (TVSM) has produced an Predicted growth in the global media-rights value interactive data report which analyses media deals in cricket. of cricket in 2018 is likely to be driven by upcoming Some of the graphs and charts are reproduced here as a preview renewals of rights to both BCCI national events of the TVSM Rights Tracker service. The full report includes TV covering India and the Indian Premier League (IPL). deals covering both national cricket board and International Cricket Council (ICC) rights, with an additional focus on the Asian market. ICC global media-rights value by cycle ECB domestic live media-rights value per year 2000-07 2007-152016 2015-232017 $1,817.3m $1,817.3m £220m

£95m £75m £65m £52m $78.6m $137.5m78.6M $262.5m

2006-09 2010-13 2014-17 2018-19 2020-24

The new ECB deals in the UK, from 2020 to 2024, represented The ICC has sold its global rights to Star, splitting the fee a change in the recent trend for many rights-holders to sell between Star India and Star Middle East. This is a gatekeeper exclusively to pay-television broadcasters (see Deal of the Month deal in which Star sells on the rights in territories in which it opposite). Deals were agreed with pay television broadcaster Sky does not have broadcast operations. Ahead of the bidding, Star and the BBC, the free-to-air public broadcaster, which gained live had agreed pre-deals to sublicense rights to broadcasters in rights to certain matches. The ECB managed to increase both the major cricketing regions, such as the UK and Australia. overall rights fee and its exposure.

To subscribe to TV Sports Markets or Rights Tracker call Tom McMullen on +44 (0) 207 625 4223 or email: [email protected]

08/09.17 : SportBusiness International 20 MEDIA : VIRTUAL REALITY

NEW REALITIES | IS VR READY TO LIVE UP TO ITS PROMISE?

• 290,000 people estimated to have interacted with BT’s VR coverage of Uefa Champions League fi nal • Broadcasters still learning best ways to edit and present VR content • Few see VR as a replacement for HD television broadcasting

Major sporting events such as the French Open are embracing virtual-reality technology (Getty Images)

08/09.17 : SportBusiness International MEDIA : VIRTUAL REALITY 21

“Production is getting better and more usable at a fast pace. We have productised the hardware we need for VR into a compact set-up we can deploy easily. It’s still expensive, but it’s a lot more streamlined”

CARLO DI MARCHIS, CHIEF TECHNOLOGY OFFICER, DELTATRE

BY RICHARD WELBIRG cut, how to knit the camera feeds into an immersive experience that doesn’t disorient he virtual-reality broadcast of last the fan, has been one of the key learning month’s Uefa Champions League areas over the past 12 months. final drew a curtain on the football The National Basketball Association season and 12 months in which what (NBA) has led the way among rights-holders Tthe industry learned about the technology was in committing to VR. During 2016-17 its more significant than its uptake among fans. partnership with NextVR delivered a regular- Using 11 360-degree cameras and one season game in VR every week. 180-degree, the coverage – a collaboration “We believed we had to approach it in an between rights-holder Uefa, host broadcaster entirely new way, throwing everything else BT Sport and VR provider Deltatre – was out,” Jeff Marsilio, NBA vice-president of almost certainly a high watermark for live VR global media, tells SportBusiness International. broadcasting. “We wanted to create a pure VR experience. BT estimates that about 290,000 people 5m But what we’ve learned is that it’s wrong to The number of worldwide sales of the market-leading interacted with the VR broadcast via the BT Samsung GearVR headset throw out the baby with the bathwater and Sport app, out of approximately 12 million in fact it really needs many of the traditional Britons who watched the Champions and elements that you would find in a broadcast Europa League finals across its various production: integrating multiple camera platforms. The broadcaster itself attempted angles, commentary, graphics. to encourage viewership by distributing 290,000 “Take multiple cameras. When we started, 100,000 Google Cardboard headsets before The number of people, out of a 12-million audience, who interacted with the VR broadcast of this year’s Uefa there could be just one, giving a courtside the match – the entry-level VR headset that Champions League final via the BT Sport app view. But the ideal is to move around the literally folds into place. court and get the best seat for each particular So what are sports broadcasters getting out moment. But that needs a director. And of VR today? Michael Davies, Fox Sports US’s switching point-of-view is disorienting for SVP of field & technical operations, says that the viewer – it’s difficult in VR. I wouldn’t say while VR may not be ready today, it soon will 11 we’ve overcome that, but we’ve improved it, The number of 360-degree cameras deployed during the be. “And when that happens, we want to be 2017 Champions League final with the timing of the switch and the cameras ready for it,” he adds. “We want to actually that we use. Adding more camera positions know what we are doing.” helps. For BT Sport’s chief operating officer “Or take commentary; you ask them to be Jamie Hindhaugh, VR is one of the ways the firm NextVR’s model of an end-to-end VR more like guides within the VR experience. broadcaster can set itself apart from rival Sky. production service, albeit aimed specifically In television everyone’s looking at the same “It hits our core editorial principles,” he at football. place at the same time. tells SportBusiness International. “BT Sport is Deltatre worked on VR broadcasting with “A good VR commentator will direct [the nearly four years old and since launch, one Uefa throughout the 2016-17 Champions audience to] the action.” of the key editorial focuses has been how we League and Europa League season. This Understanding how to deploy the bring audiences to the heart of sport. started with three VR cameras – one behind technology has improved alongside the “New entrants have to build credibility each goal and one ‘on the bench’ – and was hardware in use. Deltatre chief technology very quickly and tech and production is one purely for testing. officer Carlo di Marchis notes that the of the ways.” production time for fully immersive near-live The Champions League final marked the Unique challenges highlights in football had fallen from eight first time BT had delivered live coverage To bring the final to the public, Deltatre hours to about five minutes by the time of the via its VR app. Previously, the app had used eight cameras, with BT Sport providing Champions League final broadcast. just delivered highlights from two-camera four more. Football provides unique “Production is getting better and more coverage of four boxing events, though future challenges for VR, particularly because of usable at a fast pace,” he explains. “We bouts will now also be streamed live. the size of the pitch. VR cameras can’t yet have productised the hardware we need for Sports media service company Deltatre zoom, which means following the action VR into a compact set-up we can deploy sees the technology as a way in to the direct- closely is a matter of cutting to the right easily. It’s still expensive, but it’s a lot more to-consumer business. It has followed US camera at the right time. How and when to streamlined. A year ago it was very complex

08/09.17 : SportBusiness International 22 MEDIA : VIRTUAL REALITY

Continued from previous page...

to put together all the services, all the De Marchis argues that it is increasing encoders. Package it and make it simple to camera quality that “will really make the offer – that’s what we’ve achieved this year. difference” for immersive video, “so you can In VR we need to get to the level of the OB get close to the action rather than seeing [outside broadcasting] van.” some dots running around in the distance. Consumer VR at this point is dominated by Your eyes are better at that at the moment.” Samsung’s GearVR headset, with more than Hindhaugh targets the ability to zoom, five million global sales. rather than just switch cameras, but adds: Google’s Daydream was launched in “The most important thing is how it’s November 2016, selling about 250,000 packaged to the customers and making sure headsets in Q4 that year, but the market is the editorial standard is there. I would never still waiting for entries from Microsoft and, in broadcast a Premier League match with one particular, Apple – iPhone owners are yet to camera, but it’s what people have been doing see a dedicated VR headset. in VR. You have to treat it the same as any other broadcast.” Analyst expectations The market also has to wait for related Brad Allen, executive chairman of US firm technologies to progress: a new generation NextVR, says that if the sales of VR devices of smartphones optimised to deliver VR and over the past 12 months had disappointed widespread 5G coverage. Marsilio notes: some media and analyst expectations, that “VR data is much more than HD for TV. feeling wasn’t shared within the business. Fundamentally, you can’t defeat science; we “If you look at the device are going to need bigger pipes.” manufacturers,” he argues, “they are “There will be an inflection point,” he adds, doubling down on the VR.” “where either you or someone you know For VR producers, reaching the masses BT Sport pundit Rio Ferdinand (BT Sport) will have a device that’s VR capable. VR is right now often means taking VR outside of especially difficult to market outside of VR, so VR. When the Fédération Française de Tennis in the NextVR app have climbed from 7-8 I think when you reach that point, you’ll have rolled out the Roland Garros VR app for this minutes in the 2015-16 season to well into a market charge. All those things are going to year’s French Open, it was aimed as much at double figures in 2016-17. Marsilio confirms happen fairly soon.” smartphone screens as VR headsets. that both viewership and duration have Ideas about how VR broadcasts can be Users without the Samsung headgear “improved steadily and steeply” over the monetised are still in their infancy. Marsilio missed out on the full immersive VR season. believes the format can support advertising experience, but they could still manipulate But the truth is that no one sees VR, even in the same way television does, but NextVR’s and manoeuvre the flat image from Roland into the medium-term, as a replacement for NBA broadcasts are currently ad-free. Garros’ 360- and 180-degree cameras. high-definition television broadcasting. Allen explains: “We have learned that at That usage was borne out in the numbers Davies describes the ideal use of VR as this early stage – the bottom of the first, if for the app: just 2,400 of approximately “second-screen 2.0”, a companion to the you like – that we want the least amount of 30,000 downloads during the two-week standard broadcast. friction we can [from advertising].” tournament were from the Oculus store, “Frankly you don’t want them to [watch the hub for GearVR users. This shows that entirely in VR]. We still have a TV network Solid product the content filmed by the VR cameras isn’t to run. We want an experience they can tap Sponsors of Fox’s VR coverage have worthless if you don’t have a headset – you in and out of. That’s why we think replay is largely been attracted by the novelty of the can still look at a flat 2D video image and important. You go to VR for another angle on technology, according to Davies, but this is move it around because you have 360-degree something big. We want people to use this as changing. He says: “We aren’t just cameras. And producers are aware of this. a companion.” screwing around anymore. We have a solid In the US, Davies says that the Fox Sports BT’s Hindhaugh calls it a third screen: “I product and can go out to advertisers and VR app generates much more activity don’t personally believe this is the only way to say this isn’t just attaching your name to a with its 2D offering – a flat image that can watch a football game going forward. There’s cool thing.” nonetheless be rotated 360 degrees – than a normal delay in VR [as the images are Examples of advertising and sponsorship from its genuine VR offering. processed] which works perfectly, because that exploit the specific advantages of VR After persuading someone to buy a VR by the time you’ve got into your headset, the are thin on the ground in the sport sector, headset, the next problem is getting them to replay is ready.” though the French Open showed how it can wear it for enough time to watch a sporting It’s clear there are still hurdles to jump be integrated smoothly [see page 23]. event. But there is evidence that average in VR production, both technically in terms Allen believes consumers will be willing viewing times are increasing. of cameras and in how the experience is put to pay for VR when the broadcast quality Allen claims viewing times for NBA games together. can match its television equivalent. Only the

08/09.17 : SportBusiness International MEDIA : VIRTUAL REALITY 23

HOW VR IS BECOMING A Extra: REALITY FOR SPORT

NBA currently charges to watch in VR; games shown through the NextVR app are available to existing customers of the League Pass subscription product, but since February 23 games have been available a la carte at $6.99 (€6.10) each. Neither NextVR nor the NBA would reveal how many single-game passes have been sold. Commentators are already speculating about the potential of the market for VR rights and how this will be shaped is becoming clearer. Many current media-rights deals – particularly in the US where the major leagues tend to sign lengthy partnerships – were struck without much thought to VR. This has created grey areas where it is unclear if the rights lie with rights-holders or their media partners. Davies says Fox has “had a lot of luck working with rights-holder partners. Some are more rigid than others or use VR themselves, and that’s where we need Photo: NextVR to talk a little bit more.”

Contract negotiations Allen adds: “Some of the leagues have French Open NextVR retained their rights, or didn’t spell it out with their digital partners. I’ve had The Fédération Française de Tennis (FFT) NextVR was the first company to offer a broadcaster call me and ask me to put has experimented with VR since the 2015 live-streaming in VR and is still at the together something with a league. It wasn’t French Open. But for the 2017 edition, forefront of the market in terms of even on the radar when a lot of these got the FFT decided to produce a genuine proprietary technology done. As they come up, [rights-holders] consumer VR product, and opened a Its key partners are the NBA – a will be looking at VR as a new channel for tender for production partners. multi-year deal began last season – and income.” It contracted Deltatre to provide two entertainment company Live Nation, with Few rights-holders will go into contract 360-degree cameras and worked with LiveLike which a five-year deal runs from 2016 to negotiations this year or next without a plan for a 180-degree camera and to build the 2020. Another five-year deal, with Fox for their VR rights. But they will face a choice Roland Garros VR app. Users of the app found Sports US, runs for the same term, and – they can sell the rights, and whether this themselves in a virtual suite. On a screen in NextVR also broadcasts the International is done separately or packaged with their front of them they could watch immersive Champions Cup summer football existing media rights will depend on the coverage of key courts, a mosaic of 2D live tournament. market power of the rights-holder. coverage from outside courts, or on-demand All the deals are thought to be revenue- Or they can retain these rights; as VR highlights. share agreements. NextVR trades its ability to di Marchis notes, as the coverage is On the ‘table’ in front of them they could deliver end-to-end VR coverage for access to predominantly fed to fans via their access stats and other information. During rights and promotion. Users access coverage smartphone rather than their television, it is a the two-week tournament the app was via the company’s proprietary app. perfect D2C product. downloaded by 15,300 iOS devices, 10,300 But NextVR’s business model will have to Marsilio said: “I’d imagine that ultimately Android devices and 2,400 times from the be flexible. As VR becomes more popular there will be licences in that media just as Oculus store. with consumers, and more new entrants there is in every other one. The FFT also sold the app content to match NextVR’s production capability, rights- “I’ve had plenty of conversations about its free-to-air broadcast partner, France holders will be increasingly empowered to that already. I think interest in the NBA’s VR Télévisions, for use in its own francetv sport demand fees for their rights. Even sooner, rights is there and rising.” Z app. France Télévisions sold sponsorship rights-holders and broadcasters may chafe rights around the coverage: a deal with against the restriction of using another SportBusiness Group has published a report Samsung covered pre-roll ads to VOD content company’s app. In September last year Fox about the use of Virtual Reality in sport. To in the VR suite, as well as branded items on Sports launched its own-brand VR app, built in download a copy, go to http://bit.ly/2usc8yx the virtual table. association with LiveLike. Z

08/09.17 : SportBusiness International 24 DIGITAL : COMMENT

HOW THE POGBA-STORMZY VIDEO CREATED A SPACE RACE IN PLAYER ANNOUNCEMENTS

The unveiling of a new star opens up a new world of opportunity in the social media age, says Richard Clarke

he new signing at the top table was the most viral social media posts in sport and Other efforts have not quite hit the mark, clear. “This trade is a blessing,” many key areas of the club have a stake. especially when they have taken a humorous he said. Surrounded by the usual The club’s commercial department route. In my experience, this always leaves a press conference paraphernalia – want to give value to their shirt-front portion of your fans scratching their heads Tmicrophones, product from the team’s drinks sponsor, ticketing spies the potential for and can be subject to, sometimes wilful, partner and logo-splattered backdrop - he a sales campaign, communications hope misinterpretation by the wider media. went on: “I’m ready to grind, Rip City. I think for positive PR, the digital team can grow Aston Villa’s announcement of John I can make an immediate impact out on the their followership and the board are looking Terry with a staged WhatsApp conversation floor.” for everyone to get off their case for five… between manager Steve Bruce and owner Guard Tim Quarterman had gone to the damn… minutes. Tony Xia fell into this category. Likewise, Houston Rockets to make this particular But amid the cacophony of social media it Crystal Palace revealed the news of the National Basketball Association (NBA) is getting harder to create a cut-through, so appointment of their new manager via a trade happen, but, according to their official clubs are getting more creative. The trend video of ‘papal’ white smoke over a Caribbean Twitter feed, the Portland Trail Blazers takeaway restaurant. The only proviso here seemed happy with their end of the deal – is that neither the tweet nor the smoke even if it was the “cash considerations”, aka announced the actual name of the appointee. the money they made out of the trade, that “The announcements of big The actual news itself was published more they were most pleased with. signings remain the most viral sedately later on, with Frank de Boer and While useful, paying a cheque into the chairman Steve Parish holding shirts in front bank is not that sexy for the fans slavering for social media posts in sport and of branded backdrops. trading activity during the window, a period many key areas of the club Of course, outside the Premier League that often coincides with season-ticket elite, social media teams are still sadly and renewals, of course. have a stake” surprisingly understaffed. Many lack the But the Trail Blazers’ social media team resources to employ agencies to help to had a solution. They mocked up pictures finesse a flashy unveiling. But the strength of from a fake press conference for a big sack of probably started last year, when Stormzy an idea can turn a digital David into a Goliath dollars – mics, drinks, backdrop, the lot. The ‘accidentally’ posted a video of him rapping with a global resonance. humour was so on-point that others riffed on alongside a dancing Paul Pogba. The Therefore, I tip my hat to Yeovil Town, it. A basketball stats site made a profile page musician was in a Manchester United kit with who announced the free transfer of Jake for the swag bag; another mocked up shirts the player’s name on his back. It was quickly Gray through the use of Snapchat’s new with “Considerations” on the back. deleted, but the story was out and, naturally, geolocation tool. They zoomed in to reveal Football teams have not quite reached that went viral. the player avatars at Huish Park before point yet. However, a ‘space race’ has developed The club officially released the clip the flipping to a video of Gray himself, who said over announcing major new signings. next day and it would receive 6m views on hello from the centre circle. The checklist used to be simple. Photos Twitter within 24 hours. By comparison, It was hardly Pogba, Stormzy and adidas, holding a scarf, shaking the gaffer’s hand and the video announcements of Granit Xhaka but it was an intelligent, cost-effective displaying a shirt complete with name and (Arsenal), N’Golo Kante (Chelsea) and John use of social media that brought them a number. That, plus an interview consisting of Stones (Manchester City) combined would disproportionate amount of attention. 50-per-cent platitudes, 50-per-cent optimism, garner a fifth of that number. And that remains the sweet spot for social and it was ‘job done’. So this year we have seen Liverpool media in sport. However, in the last couple of years the announce Mohamed Salah’s arrival, with club’s need for that wow factor to herald an the player himself scrolling down tweets Richard Clarke is a digital and social media announcement has superseded some waning imploring the club to complete the transfer. consultant. He holds the distinction of having run concerns about getting exclusive quotes for Meanwhile, his former club, Roma, revealed the social media accounts at major football clubs their own publications the signing of Lorenzo Pellegrini by posting in the Premier League and MLS, having worked While the news is always pre-empted by the a video of the player guiding himself to score for EPL club Arsenal and MLS club the Colorado press, the announcements of big signings remain for the Giallorossi on the Fifa video game. Rapids. @MrRichardClarke

08/09.17 : SportBusiness International

26 MEDIA : FAN TRACKER

FAN TRACKER | NEW GLOBAL DATA SERVICE REVEALS THE FULL PICTURE ABOUT SPORTS CONSUMPTION

F Fan Tracker: Media Consumption incorporates data from online surveys conducted by SMG Insight / YouGov F Analysis includes comparison of how smartphone sports media consumption changes by gender and age group F UK has the most male-dominated audience of fans using smartphones to follow sport

ver half of adult sports fans in Differences between the genders can only in their home. Another lens through which 11 leading sports markets use really be seen in France, where 28 per cent of Fan Tracker looks at the data is via index smartphones to consume sports female sports fans said they consume sport scores. Applied to smartphone consumption, media, according to Fan Tracker: via mobile versus 51 per cent of male fans, these quantify the extent to which the age OMedia Consumption, a new data product and in Great Britain where the respective groups and gender of sports fans using from SportBusiness Group. figures were 38 per cent and 58 per cent. smartphones for sport differ from the group’s Fan Tracker: Media Consumption There are fairly big differences in share of the overall adult population in incorporates data from online surveys behaviour between age groups in the each country. A score of 100 indicates that conducted late last year and earlier this year different markets – 25-34-year-olds provide the age or gender group is in exactly the by SportBusiness Group’s research partner, the largest proportion of sports fans using same proportion as the overall population. SMG Insight / YouGov. Over 1,000 adults smartphones in Australia, Brazil, India, A deviation from 100 indicates that the were surveyed in 13 markets – Australia, Russia and US. In contrast, the 55-and- group’s share is disproportionately large or Brazil, China, France, Germany, Great overs are the largest proportion in France, small compared to its share of the general Britain, India, Italy, Japan, Russia, South Germany, Italy, Japan and Spain. population. Africa, Spain and the US. Perhaps counter-intuitively, the most The UK has the most male-dominated The charts exhibit some of the data popular location at which fans use audience of fans using smartphones to follow breakdowns available in the product – smartphones for sport is at home. This sport, with men scoring 145 compared to 58 including analysis of how smartphone sports applied in all 13 markets, with between 64 per for women. In contrast, Chinese and Russian media consumption changes by gender and cent (in Russia and China) at the low end, male and female smartphone sports media age group, and the locations at which fans are and 81 per cent (in Great Britain) at the top consumers, both with scores of 100, exactly consuming the content. end, of fans using mobiles to consume sport match the overall population. Z

08/09.17 : SportBusiness International MEDIA : FAN TRACKER 27

Smartphone Gender Index Percentage of sports fans that consume sport by smartphone 80 121

94 106

100 100

61 142

87 114

58 145

94 106

91 110

81 120

100 100

83 117

92 109

78 123

Female Male

Percentage of sports fans that consume Percentage of sports fans using smartphones sport using smartphone by age group to follow sport at home

Percentage of sports fans from each gender that consume sport using smartphones

FAN TRACKER: MEDIA CONSUMPTION DATA COVERS:

• What platforms are used to consume sport • How many people subscribe to pay-TV for sport • What social media platforms are most popular for consuming sport • What sports-related activities fans undertake on social media • What activities sports fans from across the world undertake on second screens while watching sport on TV …and much more http://try.sportbusiness.com/fan-tracker-launch/

08/09.17 : SportBusiness International 28 NEWS ROUND-UP

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

DEAL OF THE MONTH MATTHEW GLENDINNING

Technology company Intel has signed as a Worldwide Partner of the International Olympic Committee (IOC) in an eight-year contract, which runs from 2017 to 2024. It will hold exclusivity in the 5G network, virtual reality, artificial intelligence, processor and drones categories across the worldwide and domestic tiers.

Why is the deal important? Quite apart for the rights fee, which takes the IOC close to the TOP programme revenue target it had aimed to reach by the end of the 2021-2024 1. ARSENAL TEAMS UP WITH UNIVERSAL PICTURES cycle, the deal has a heavy value-in-kind element English Premier League football club Arsenal has entered into a partnership which will change the way the Games is delivered with US film studio Universal Pictures. Under the agreement, Arsenal will to fans. promote a number of Universal’s upcoming film releases, including Despicable The value-in-kind element will focus primarily Me 3. In return, Universal will benefit from LED advertising exposure at on the provision of semiconductors and Arsenal’s domestic home games. Universal will also be granted access to first- microprocessors. These will be used to develop a team players to create promotional content around their films and will receive 5G mobile network in the Games venues; deliver exposure through Arsenal’s digital channels. a virtual-reality broadcast capability; power drones for use during the opening ceremony; 2. McDONALD’S OLYMPIC PARTNERSHIP TO END and give technological support for the Olympic The International Olympic Committee (IOC) and fast-food restaurant Broadcasting Services host broadcaster. chain McDonald’s have reached a mutual agreement to end their worldwide Brian Krzanich, chief executive of Intel, revealed ‘TOP’ partnership. The IOC said in a statement that financial terms of the that fan engagement would be the focus of its separation had been agreed by all parties. McDonald’s TOP partnership, IOC deal. “It’s about creating more immersive which had been due to run through to the 2020 summer Games in Tokyo experiences,” he said. under a deal signed in 2012, will now end with immediate effect. However, the company will continue to serve as a sponsor of next year’s winter Olympic How much does the IOC make from Games in Pyeongchang, with domestic rights in host nation South Korea only. its TOP programme?

The IOC annual report 2016, published last month, 3. F1 ENGAGES LAGARDÈRE SPORTS IN CHINA DRIVE reported that the TOP sponsor programme The Formula One motor-racing series has partnered with the Lagardère generated just over $1bn (€870m) for the Sports agency in a move designed to further raise the sport’s profile in China. 2013-2016 quadrennial, an all-time high. The Lagardère Sports will work with F1 from 2018 to identify and secure strategic organisation had projected it would double that partners in areas including event promotion, media rights, digital and figure during the 2020-2024 cycle, but Sports brand partnerships, merchandising, talent development and racing Sponsorship Insider understands that the IOC is team development. closing in on the figure for the 2016-2020 cycle thanks to major new deals with Intel, Chinese online retailer Alibaba Group and Japanese 4. HUDDERSFIELD SIGNS UP OPE SPORTS AS SHIRT SPONSOR carmaker Toyota, as well as a renewed deal with Online gambling company Ope Sports has agreed a multi-year deal to become consumer electronics brand Samsung. the main shirt sponsor of newly-promoted English Premier League football club Huddersfield Town. Ope Sports branding will appear on the front of Has the IOC lost any partners? Huddersfield’s playing shirts from the 2017-18 season, the West Yorkshire In June fast-food restaurant McDonald’s club’s first in the English top flight in 45 years. announced that its TOP sponsorship deal would end with immediate effect. It was set to run until 5. VIVO SIGNS RECORD IPL SPONSORSHIP DEAL 2020. This reduced the number of TOP sponsors Chinese mobile handset manufacturer Vivo has agreed to pay a huge increase to 12. The Intel deal returned the IOC to 13 TOP to retain its title sponsorship rights for the Indian Premier League Twenty20 sponsors. It is understood that the IOC is actively cricket competition. Vivo, which has served as the title sponsor for the past seeking more sponsors from the technology/IT two editions of the tournament, will pay a total of Rs21.99bn (€303m/$341m) sector to help drive its Agenda 2020 plan. Z over five years, from 2018 to 2022.

08/09.17 : SportBusiness International SPONSORSHIP : DATA 29

SPORT AND INDUSTRY DATA FROM SPORTS SPONSORSHIP INSIDER

SPONSORSHIP OF CRICKET Data gathered by sister title Sports Sponsorship Insider reveals the global sponsorship landscape of cricket, from the biggest markets to the sectors BCCI €47m Cricket that dominate deals. The data behind this report is available in the Deals Australia Tracker database, open to all subscribers to Sports Sponsorship Insider. €30m Top five cricket markets The combined annual sponsorship income generated by the International ICC Cricket Council (ICC), the three cricket national bodies of England, €66m India and Australia, and the world’s most valuable domestic competition, the Indian Premier League, is worth around €190m ($217.5m) in 2017, IPL according to research by Sports Sponsorship Insider. This month’s research €27m ECB on international cricket covered the above properties, along with five €20m additional Test-playing nations, and domestic teams and competitions from the UK, Australia, South Africa and West Indies.

Emirates ICC sponsors Nissan OPPO ICC central revenues for the 2015-23 cycle are worth around €526m over eight years, or €66m per year. The sum for the previous cycle, from 2007 to 2015, was MRF around €350m, or $50m per year. The ICC’s partnership programme is split into Moneygram two tiers – Global Partners, which demand rights fees between €10m and €15m per year, and Event Partners, which pay between €4m and €5m per year, and activate Hublot at ICC events with a smaller amount of rights. PepsiCo

0 1 2 3 4 5 6 7 8 9 10 11 12 13 Annual value €M

60 55 50 IPL title sponsorship cycles 45 India’s IPL is cricket’s most-valuable domestic competition, bringing in over €27m 40 for its six-week 2017 tournament. Chinese mobile manufacturer Vivo was the 35 competition Title Sponsor in 2016 and 2017, paying around €13m per year. Last 30 25

month Vivo signed a record five-year deal worth €60m per year, starting in 2018, Annual value €m 20 reportedly beating off rival smartphone maker OPPO, which had also bid highly 15 for the property. 10 0 PepsiCo 2013-15 Vivo 2016-17 Vivo 2018-23

Banking

Sportswear Top industry sectors in international cricket Cars Beer Banking is the most popular sponsorship sector in international cricket with 8 deals overall. England, Australia and South Africa are all sponsored by a large national bank. Telcos

The Board of Control for Cricket in India does not have a bank sponsor. Airline

Soft drinks

0 1 2 3 4 5 6 7 8 No. of deals

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

08/09.17 : SportBusiness International 30 SPONSORSHIP & MARKETING : B2B

‘STORY DOING’ | THE B2B ACTIVATIONS THAT ARE TRANSFORMING SPORTS SPONSORSHIP

F Sports sponsorship allows tech companies to prove products in intense environment F Sophisticated B2B activations are inspiring consumer brands to be more creative F Some sponsors are so embedded with rights-holders it would be a challenge to disengage from them

The Windows 10 logo adorns the bonnet of Dale Earnhardt Jr’s #88 Microsoft Chevrolet Nascar vehicle (Chris Trotman/Getty Images)

BY ANDY FRY because B2B and technology brands the build-up to big events, tech brands generally have limited use for the mass- get the opportunity to develop and test s McDonald’s exits its long- media exposure so often touted as sports products before they finally showcase their standing Olympics partnership sponsorship’s No.1 asset. But David Peters, innovations to the world,” he adds. “They can and Intel signs up, it’s intriguing to founder of The Value Xchange and former make events more efficient and improve the note just how important B2B and managing director of Dentsu Aegis Network consumer experience – which is the perfect Atechnology sponsors have become to sports Sport & Entertainment, says: “In some ways way to capture the attention of business rights-holders. With tobacco, alcohol, fast sports sponsorship makes more sense for decision-makers, who have a notoriously food, financial services and betting greeted B2B and tech brands than consumer brands, short attention span.” with varying levels of opprobrium, the likes because it gives them the ability to prove Another advantage enjoyed by B2B of Intel, SAP, HP, Microsoft, IBM, Oracle and their products and services will function in companies, says Peters, is the fact that they Alibaba have emerged as critical to the future an intense, fast-moving environment.” don’t need to reach many people to achieve of sports business. It’s not just the few weeks around the their business goals. “A B2C brand needs to At first sight, this seems counter-intuitive, event that matter either, says Peters. “In convert millions of people into purchasers

08/09.17 : SportBusiness International SPONSORSHIP & MARKETING : B2B 31

“Consumer goods firms are not going to dramatically transform big sports events – but the likes of Alibaba and Intel are bringing new thinking in areas such as digital ticketing, cloud computing, ecommerce and drones”

MICHAEL PAYNE, FORMER HEAD OF MARKETING, IOC

to justify its investment,” he explains. “But B2B brands are only targeting decision- makers and budget-holders. This means it is Intel inside the Games also easier to get an accurate sense of how a sponsorship has contributed to return on Intel’s deal with the IOC, signed in June, to where they are living in their digital world.” investment.” is reckoned to be worth around $400m One of the most interesting elements of The key way to do this, he adds, is by (€350m) and runs for four Olympic the deal is that Intel has not been given an offering “money-can’t-buy corporate Games until 2024. exclusive category designation, meaning it hospitality experiences. And unlike financial From the PyeongChang winter Games will find itself partnering with the likes of services companies, B2B firms don’t run into in 2018, its purpose is to show off Intel’s Panasonic, which has exclusivity in audio visual problems with bribery regulations because expertise in areas such as 5G, VR, 3D, equipment and content capture. Likewise, they can argue that they are showcasing 360-degree video platforms, artificial there is sure to be overlap with Samsung’s products and services, rather than just intelligence and drones. status as wireless communication equipment entertaining clients.” The kind of activities it will engage in are and computing equipment partner. live and on-demand VR coverage of 16 events This collaborative approach echoes the way Genuine value (such as ski jumping and figure skating) and Intel works in the real world, but may also have Going beyond hospitality, B2B activations the use of drone cameras to capture new implications for the way rights-holders structure at major sports events can also be angles. It will also demonstrate 5G mobile their sponsorship programmes in future. referenced by sales forces out in the connectivity on-site at the Games. It’s also worth noting that B2B brands field as a way of making their sales pitch Commenting, Intel CEO Brian Krzanich like Intel and IBM tend to come into more interesting. Microsoft sales agents, says: “This is going to allow people who would sports sponsorship programmes with a for example, use the company’s work never have had a chance to get to Korea suite of different technology innovations with Nascar to show companies in retail, and see the Olympics to actually feel like to showcase (unlike B2C brands, which manufacturing, financial services and oil & they’re there. To me, this is about bringing the mostly come with one product and gas how they can help streamline manual Olympics to more people.” maybe a few variants). In other words, or antiquated business processes and IOC president Thomas Bach adds: “Sport they are able to squeeze extra value out improve operational efficiencies. has to go where the people are, and many of partnerships through a multi-pronged What’s more, says Peters, B2B and people are living a digital life, so we have to go approach. Z technology brands rarely experience the kind of consumer cynicism that B2C brands attract. He says: “These brands create genuine value, so it’s much easier to argue that they have a reason to be involved in – so it’s not the case that B2B sponsorship partnership with Nascar illustrates, the sport.” is new. But what is new is the recent shift B2B/technology relationship with sport The attraction of sport as a sponsorship from ‘storytelling’ to ‘storydoing’. B2B and now runs much deeper. Another example platform has also increased as B2B brands technology brands aren’t just piggybacking Charkham cites is IBM’s partnership with and rights-holders have become more sports platforms; they’re having a major the Wimbledon Championships tennis sophisticated at delivering deeper and impact on the way they are organised and tournament, where a data-driven partnership richer event activations, according to Alex enjoyed.” called #WhatMakesGreat was this year Charkham, a director at marketing agency As the ‘greatest show on Earth’, the used to promote IBM’s cloud, security Fuse Entertainment. He says: “IBM has been Olympics is a natural stage for B2B and tech and cognitive solutions businesses. He involved in sports sponsorship since 1960 brands, says Charkham – but as Microsoft’s also singles out Intel’s involvement with

08/09.17 : SportBusiness International 32 SPONSORSHIP & MARKETING : B2B

Continued from previous page... Extra: WHAT IS B2B SPONSORSHIP WORTH?

the International Cricket Council’s 2017 Microsoft spends more than $100m a The raw numbers underline his point. IBM Champions Trophy tournament, where the year on sports sponsorship, according to has around 379,000 employees, while HP has company embedded computer chips in bats IEG, via properties such as Nascar, the around 287,000. New IOC sponsor Intel has a to help players track their performance. NCAA, NFL, F1, the PGA Tour and Real family of 106,000. “Intel recently formed a dedicated unit Madrid. Fuse Entertainment director Alex called the Intel Sports Group,” says IEG has SAP and HP as the next biggest Charkham says modern B2B sponsorships Charkham, “which is all about using sport B2B/tech spenders, although Alibaba’s IOC are “much more like business relationships to commercialise and monetise emerging investment certainly shakes things up. Cisco than they used to be”. This has a couple of technologies.” is also a rising force in the world of sports implications. The first is that the headline Another example which underlines just sponsorship. Like Intel and Alibaba, it has a rights fee may not always be as high as for how flexible sport’s relationship with B2B relationship with the Olympic Games. a B2C brand. This is because the deal may brands can be includes Cisco’s partnership Andy Kenny, of CAA Sports Consulting take account of the cost of products and with the Extreme Sailing Series, which is UK, points out that there are several internal services being provided (value in kind). The designed to promote the company’s Smart benefits that B2B brands can achieve through second is that the way in which rights-holders Cities offering. SAP, meanwhile, has worked a well-activated sponsorship. “Across an approach renewal of such partnerships will with the San Francisco 49ers National organisation it’s a way to engender pride and probably look more like a contractual tender Football League (NFL) franchise on SAP offer incentives,” he says. “But think about than a sponsorship negotiation. Once Intel Scouting, a product that pulls data from how exciting it must be for those employees and Alibaba have been embedded in the IOC’s various sources including league databases to who are actively involved in one of these technical architecture for almost a decade, help the team with its recruitment strategy. sport-based projects. And then think about for example, it will be a challenge to disengage the value of that in talent recruitment.” with them and replace them. Z Showcase innovations Michael Payne, a brand and rights-holder consultant who was formerly head of marketing at the International Olympic to Intel’s HQ in Santa Clara). But many brands are now asking how they can create a Committee (IOC), was intimately involved B2B companies see sports events as a way deeper relationship with rights-holders,” he in Chinese ecommerce platform Alibaba’s of building credibility in new territories. says. “Land Rover’s work with Ben Ainslie’s recent deal with the IOC. He says: “There’s Alibaba’s strategy, says Payne, is primarily America’s Cup BAR team is about showcasing no question that sport is a great way for about introducing the brand’s capabilities their engineering expertise, while Bose is companies to showcase innovations and to the international market. This is also providing NFL coaches with the best possible emerging businesses. I remember AT&T true for Indian company Tata, which uses audio. By making a difference to the sport, showcasing an early form of email back at Formula One to demonstrate the robustness they develop a more authentic image among the 1984 Olympic Games in LA. But there of its connectivity, hosting and delivery consumers.” are also benefits for right holders, which are technologies, while at the same time helping Also worth keeping in mind is that some under growing pressure to be responsive.” the sport cut costs. leading technology brands have both B2C In the same way that leading publicly- and B2B dimensions, says Kenny, meaning quoted companies must be innovative to International expansion that there is more than one way for them survive, “bodies like the IOC need to be Japanese firm NTT Data has also used to generate a return on their investment. more agile,” says Payne. “Consumer goods partnerships with golf’s Open Championship For example, although Intel doesn’t do firms are not going to dramatically transform and motor racing’s Indy Car Series to support much direct-to-consumer marketing, most big sports events – but the likes of Alibaba its global expansion plans. In the five years consumer are familiar with the ‘Intel Inside’ and Intel are bringing new thinking in areas since it first sponsored The Open it has seen stickers that come with new computers such as digital ticketing, cloud computing, global revenues grow from 18 per cent of its - providing a kind of quality assurance ecommerce and drones,” he adds. “Partners total business to more than 30 per cent. In measure. For other B2B brands, there is like these are fundamental to rights-holder stage two of its international expansion it clearly an opportunity to try and emulate this evolution.” This invariably has a positive wants to be viewed as a global brand, because elevated position in the mind of consumers. impact on the rights-holder’s brand image it anticipates this will boost profit margins. Besides, adds Peters, technology changes as well, making it easier for them to pitch to So further activity in sports sponsorship so fast that today’s B2B brands may be blue-chip brands that are concerned about seems logical. tomorrow’s B2C revelations. There was a the company they keep. Andy Kenny, head of CAA Sports time when Apple was not especially well- When asked about where he would like the Consulting UK, believes the new rigour known to the mainstream audience, so 2024 summer Olympics to be hosted, Intel being brought to sports sponsorship by building brand trust in expectation of some chief executive Brian Krzanich expressed a B2B brands is also having an impact on how future breakthrough may prove a worthwhile preference for Los Angeles (which is close B2C brands activate their rights. “I think all exercise. Z

08/09.17 : SportBusiness International

INDUSTRY MOVES 37

People THIS MONTH’S INDUSTRY MOVES

The Formula One motor-racing series has appointed Ellie Norman as MOVE OF THE MONTH its new head of marketing. Norman joins F1 after spending five years at UK pay-television operator Virgin Media, where, in 2014, her role as head of advertising was expanded to develop and lead the strategy and Tom Hill, implementation of sponsorship across the business. She will officially join chief commercial Formula One on August 14, reporting into Sean Bratches, managing director of commercial operations. officer, World Rugby Carlos Alves has been appointed as the new executive director of Fiba’s regional office in the Americas, basketball’s global governing body has announced. Alves worked at sportswear giant Nike between 2010 and 2015, before serving as an independent brand and marketing consultant for English Premier League football club Chelsea, among other roles. Alves has replaced Alberto Garcia at the helm of the regional office following the latter’s World Rugby, the global governing body for retirement in June. rugby union, has appointed Tom Hill as its new chief commercial officer. Under Armour has unveiled as its new president after Patrik Frisk Hill will be responsible for driving World founder Kevin Plank stepped down from the role at the US sportswear Rugby’s broadcast, commercial and marketing and equipment firm. Plank will stay on as chief executive of the company strategies as the organisation continues following the management reshuffle. Frisk, who will also serve as chief to seek new audiences and commercial operating officer, has joined Under Armour after a spell as chief executive of opportunities. global footwear and accessories company ALDO Group. Prior to this, Frisk Hill will join World Rugby in September was coalition president of Outdoor Americas, with responsibility for major brands such as from English Premier League football club The North Face, Timberland and SmartWool. Manchester United, where he has been North American stock car-racing series Nascar has promoted Brent Dewar from the serving as global head of partnerships and position of chief operating officer to president. Dewar joined Nascar as chief operating operations. officer in 2014 and will now serve as only the fourth president in the series’ history. The Hill replaces Murray Barnett, who quit the organisation said Dewar’s promotion is in line with chairman and chief executive Brian governing body earlier this year to become France’s vision for a more “inclusive and strategic Nascar.” the new global head of sponsorship and commercial partnerships at the Formula One The Kansas City Chiefs NFL American football franchise has appointed Brett Veach as motor-racing series. its new general manager. Veach has been promoted from his role as co-director of player “Tom’s exceptional track record with some personnel – keeping the position in-house – after previous general manager John Dorsey left of the biggest brands in sport is perfectly the position in June. Veach has worked with the Chiefs for the last four seasons. suited to World Rugby’s strategic mission Dominic Coles is stepping down from his role as executive vice-president to grow the global game through expanding of strategic projects at international media and entertainment company and strengthening our commercial footprint, Discovery Networks International. During his three years at Discovery, unlocking partner opportunities in new Coles negotiated the company’s first major Olympics sublicensing rights markets and inspiring new audiences through deal with UK public-service broadcaster the BBC and led the acquisition of fan-first innovative broadcast and digital rights for the Eliteserien, the top division of football in Norway. channels,” Brett Gosper, chief executive of World Rugby, said. Paul Fisher has been promoted to chief executive of Jockey Club Racecourses, the “Tom joins a strong and dynamic operating group of 15 racecourses in the UK. Having previously served as group managing management team at a time of exceptional director, Fisher has been a key figure in driving growth across the racecourse group, which global growth, the Rugby World Cup going stages the likes of the Cheltenham Festival, Grand National, Derby Festival and Guineas from strength to strength with a record Festival. In his new capacity Fisher has also become the Jockey Club’s appointment to the worldwide partner programme for the first board of the British Champions Series. He will continue to report to Simon Bazalgette, tournament in Asia in 2019 and strong group chief executive of the Jockey Club and chairman of Jockey Club Racecourses. candidates for 2023, the growth of rugby Thomas Weikert, who secured a new term as president of the International sevens as an Olympic sport and more fans Table Tennis Federation (ITTF) in May, has installed Qatar’s Khalil Al- than ever before engaging with us and the Mohannadi as the new deputy president of the governing body. Steve sport through social media.” Dainton, who has served as ITTF marketing director since 2008, will Earlier in his career, Hill had a spell as sales become acting chief executive of the organisation, replacing Judit Farago, and marketing manager at the Rugby Football who is currently suspended. Union, the national governing body of rugby union in England, from 2005 to 2008. Richard Knight has been installed as the new chief executive of PMY Europe, a technology Hill was also previously general manager strategy, investment and management company that works with sports venues worldwide. of the England Rugby Supporters’ Club from Knight is the former stadium director at Twickenham, the home of the Rugby Football 2002 to 2005 and spent time as commercial Union. Adam Pitt, head of business and technology solutions for Europe, has relocated from director of English Premiership club Saracens Australia and will lead a team of technical experts to drive PMY’s European operation. Z between 1997 and 2002. Z

08/09.17 : SportBusiness International 38 PEOPLE : HEADLINER

08/09.17 : SportBusiness International PEOPLE : HEADLINER 39

“If you’re talking about having a problem, you started with the biggest country in the world”

SIR CRAIG REEDIE, PRESIDENT, WORLD ANTI-DOPING AGENCY (WADA)

F Independent Testing Unit will attempt to address conflicts of interest in doping control F Wada has established six-person investigation panel F Compliance review will seek to benchmark anti-doping delivery

BY BEN CRONIN to take over all aspects of doping control and winter Olympics. To help it on its way, Sir Craig Reedie, it transpires, has different at major events. The creation of the ITA the ITA will absorb the structures of GAISF’s telephones to conduct different parts of his is an attempt to provide a solution to the Doping-Free Sports Unit, which already has affairs. Following his organisation’s brush age-old accusations of a conflict of interest trained testers and procedures in place. with the reportedly state-backed Fancy Bears between those that police and promote “There is a desire – and you can see that cyber hacking team late last year, the Wada sport. Although the body is a long way from from the existing arrangements in cycling president clearly understands the need to be standing on its own feet, it has already been and athletics, for example, who have careful as powerful forces seek to discredit welcomed by USADA chief executive Travis removed the whole doping effort from the the work of the anti-doping body. Tygart, who described it as “the first glimmer international federation, which is designed The communications set up and a renewed of hope [for clean athletes] after months of to promote the sport – to create a separate focus on cyber security are just small pushing for reform.” organisation which in this sense polices examples of the transformative effects that the sport,” says Reedie. “The independent last year’s Russian doping scandal has had Ultimate goal testing agency, from a doping point of view, on the organisation and its leader. Having Reedie describes how it came into existence. is the IOC’s answer to that, as they see a clear seen Wada come in for sustained criticism, “I was asked at an Olympics summit if Wada conflict of interest. and endured a large degree of flak himself would look at the possibility of creating this “We will create the board for them and then over the handling of the affair, Reedie is independent testing agency and off we went we will effectively pass it over to them and eager to put his side of the story on the to look at it,” he says. “What will happen they can run it. That board will run it and it record and wants to talk about the reforms is we will create with the IOC their new will be independent. It will have independent the organisation has undertaken since the independent testing agency and it will be up members or an independent chairman and it scandal emerged. He is also at pains to to the international federations to decide will be financed initially by the IOC.” remind people just how unprecedented whether they want to do this kind of thing The word “initially” and the independence was the crisis that Wada and the sports themselves or whether they want to join into of the body are important in that sentence, movement faced last year. the new independent agency.” particularly after the IAAF scandal showed “If you’re talking about having a real The plan is that the independent body will how organisations that were supposed to be problem, an investigation with a big country, act as a ‘service provider’ and stakeholders policing sport were actually colluding with you started with the biggest country in the such as international federations and major doping offenders to cover up positive tests. world,” he says with typically deadpan delivery. event organisers would use the ITA on a pay- It’s a significant step in the fight against The Wada president is speaking to per-use basis. Although the IOC is providing doping, but there are still questions about SportBusiness International shortly after the the seed money, Reedie says the ultimate goal the role of Wada in the post-Rio world and IOC Executive Board approved Wada plans is for the body to fund itself and take over about how the organisation handled itself for an Independent Testing Authority (ITA) the overall doping operation at the summer during the Russia crisis.

08/09.17 : SportBusiness International 40 PEOPLE : HEADLINER

SIR CRAIG REEDIE continued...

At no stage does Reedie really try to deny the organisation. Although there is absolutely that his organisation was ill-equipped, both no suggestion that Wada has ever covered up from a legal and financial perspective, to deal doping offences, the fact that it is 50-per-cent with the problem of state-sponsored doping funded by the Olympic Movement and that when it reared its head last year. Reedie is a former vice-president of the IOC When the allegations that Wada knew left it vulnerable to accusations of a conflict about the situation in Russia as far back as of interest during the crisis. 2010 and was slow to act upon them are put Reedie has said previously that the to him again, Reedie returns to his defence conflict of interest argument against him at the time of the crisis that the organisation ceased when he gave up his vice-presidency simply didn’t have enough evidence to act on. of the IOC and that he always had to sit out “Our involvement with one whistle- debates when the Russian issue was up for blower in 2010 consisted of one phone call discussion while he still held the role. The and one email – that’s all. And on that basis, funding issue is even more complicated, I’m sorry, you cannot resolve any problems,” because the IOC is a much more reliable he says. source of income than debt-ridden Western governments. Legal authority “The argument in many Western countries At the time, he adds, the legal framework of was ‘we’re not going to give you, as an the agency meant it was only able to collect international organisation, more money’,” he information and pass it on to those who did Sir Craig Reedie presents golfer Justin Rose with a gold medal at says. “I used to have to fight tooth-and-nail have the power to investigate, which in this last year’s Olympic Games (Getty Images) to get an increase of one per cent on people’s case was the Russian authorities that were contributions.” under such suspicion. quite clear that he wanted to speak to an Although Reedie is heartened that last “We did not have legal authority to independent person – he didn’t want to speak year’s crisis has elicited a five-per-cent investigate. That didn’t come until the new to somebody from Wada or somebody from increase in government support in the latest [Wada] code, which came into effect on the IOC. We asked Richard McLaren, who round of funding, he sees scant opportunity January 1, 2015, which was the day that the was with Dick Pound in his previous inquiry, to grow Wada’s revenues beyond the IOC Pound Commission started work,” he says. so at least he had some basic knowledge contributions. He says that a statement “And in [those] days all you would have been of what’s been happening and he produced, that he made last year calling for sponsors able to do would have been to take it back as quickly as he could, enough evidence to and broadcasters to do more to fund the to the authorities in Russia, which wouldn’t indicate that there was almost certainly truth organisation was an attempt to highlight have made any sense at all.” in what Rodchenko then said. Unfortunately, the body’s lack of resources rather than an When the second wave of investigations we only got that three weeks before an entirely serious proposal. by CBS’s 60 Minutes programme and the Olympic Games.” “I was trying to draw attention to the fact New York Times seemed to indicate that Given that both of Wada’s enquiries were that if you want us to do an awful lot more, the problem in Russia went beyond track commissioned in response to media reports, which has come out of the commissions of and field to cover winter sports and many it is difficult for the organisation to shake inquiry that we’ve had, then you have to give others, he argues that the greatest challenge off the perception that it was reactive rather us a lot more money,” he says. for Wada lay, again, in gathering enough than pro-active in dealing with suspicions When Reedie is asked how Wada might evidence quickly enough. That this in turn about Russia. In response, Reedie turns to respond to a similar crisis today, he explains backed the IOC into a corner, leaving the the issue of funding and argues that the crisis that a draft legal framework is out for organisation with just three weeks to deal has at least been turned to Wada’s advantage consultation that would allow it to deal with with the problem before the start of the Rio in giving it more resources. national doping bodies or federations that Olympics, was unavoidable, he suggests. “One of the effects on Wada of the whole were behaving in a way that made them non- “The principle whistle-blower on this procedure has been that we have established compliant. occasion was Gregory Rodchenko, who was our own investigations department and we the director of the Moscow laboratory,” he have gone from one person to six, led by the Encourage compliance says. “We were keen to remove him when we investigator who was the third of three men For those who might have thought that Wada removed the accreditation of the Moscow on the Pound report,” he says. “We have had already had these powers, Reedie explains laboratory following the first enquiry into to resource that and we are resourcing it the distinction is that the organisation track and field. He was the source of all the because clearly it’s much better that we do is moving from a position where it information. these things in-house than have to respond concentrates entirely in getting bodies to be “Getting access to him was going to be to very serious media allegations.” ‘rule-compliant’ with the anti-doping code to probably quite complicated. He made it Resourcing is, of course, a vexed issue for one where everyone is ‘delivery-compliant’.

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“We want to encourage compliance in milestone towards regaining full compliance. have now been codified. And all of that is standards of operations as opposed to “They have trained their own doping control good news.” simply breaches in rules, which has been the officers and that was a real need, because The Wada chief admits that it will take situation to date,” he says. “Suddenly, you’re when they were suspended, quite rightly, at longer to establish complete trust and that looking at what will be an international the back end of 2015, any testing programme supervisors will remain in Russia for a long standard as an addendum to the World Anti- would have needed to have outside period after Rusada becomes compliant. On Doping Code. So that standard will become supervision,” says Reedie. “It was done by UK the trust issue, he is concerned about the part of everybody’s rules, not just the Wada Anti-Doping and the problem we had is there findings of a recent UK survey in which a rules. If you’re a stakeholder and you sign simply isn’t enough capacity to do enough third of those surveyed said their confidence up to abide by the World Anti-Doping testing in a country the size of Russia. in sport had declined over the last year. He Code, which everybody does, then these hopes that the reforms Wada have made can compliance rules become part of it.” Redress the balance start to redress the balance. To this end, it has sent out a total of 307 “Now that we’ve trained our own people to do “I don’t think it’s difficult to say that a little questionnaires to its stakeholders, of which it in Russia, then that means testing can be bit of good comes out of everything,” he says. 93 per cent have been returned. much fuller. Many more tests [will be] done “I hope that we can put our house in order “All 103 international federations have and properly handled. We were happy with in such a way that people will give credit for returned theirs and there are 22 countries our help to them and the changes they made efforts to recover from the situation, rather which are outstanding at the moment. We themselves. This was a good thing to do and than automatically assume that everything is expect to get 20 of them by September 1 and it’s been warmly welcomed in Russia.” bad and will continue to be bad. the rest by the middle of September,” Reedie Reedie adds that the right noises are “It’s now up to the world anti-doping says. “So that will give us a very clear picture coming out of the political establishment – agencies, it’s up to the national anti-doping of who is doing it properly and who is not. aside from the occasional piece of posturing. organisations, it’s up to the sports to get their That’s a formidable piece of work and really “In Russia there are a number of people, act together – whether this is ITAs, whether an essential piece of work before you start a including their president, who have admitted this is integrity units, whether this is better compliance review, because then you’ve got that they’ve had problems and they want to compliance, whether this is better science. benchmarks.” solve them,” he says. “There’s a whole range All of this we have to do properly and regain of things, including education, all of which people’s confidence.” Z Blanket ban But he stresses that Wada is not in the business of playing policeman. Further CURRICULUM VITAE down the line, he would like to see the ultimate sanction for non-compliance – that a country or federation could not take part Sir Craig Reedie, president, Wada in competition – decided by an independent body. For the record, he says it is important Sir Craig Reedie has enjoyed a long career in sports administration. A former president to clarify that Wada never called for a blanket of the Scottish Badminton Union and the International Badminton Federation, he was ban on Russian competitors at the Rio responsible for the admission of his sport to the Olympic programme in 1985. Games. In 1992 he became chairman of the British Olympic Association and led the organisation “Entries to an Olympic Games are made through the Olympic Games of Atlanta, Sydney and Athens and the Olympic winter Games of by national Olympic committees,” he says. Lillehammer, Nagano and Salt Lake City. He was a leading member of the London 2012 bid team “This is why the Wada executive committee, which won the right to host the Olympic Games in London and was a non-executive director of in a telephone conference, decided to make the London Organising Committee. the recommendation to decline entries. At He became a member of the International Olympic Committee (IOC) in 1994 and has served no time did we call for a blanket ban. Wada on many different IOC commissions, including the evaluation commissions of 2001 and 2009, does not have the powers to determine entry the co-ordination commissions for the Games in Athens and Beijing, the marketing commission, to competitions. We tried to restrict our the programme commission and the ethics commission. He was elected as a member of the IOC comments to the existing entry system.” Executive Board in October 2009 and as a vice-president from July 2012 until 2016. He was chair of As the IAAF prepares to hold a World the IOC Evaluation Commission for the 2020 Olympic Games. Athletics Championships without Russia this Formerly chairman of the finance and administration committee and a member of the executive month, Reedie is confident that progress is committee and foundation board of Wada, he was elected the organisation’s president in being made to get the country back into the November 2013. fold. At the end of June Wada announced Educated at Stirling High School and Glasgow University, he has also held other sports that the Russian Anti-Doping Agency is now appointments, including membership and deputy chairmanship of UK Sport. For many years he permitted to plan and co-ordinate testing, a was senior partner in the Glasgow firm of financial advisers, D.L. Bloomer & Partners. Z development that has been hailed as a key

08/09.17 : SportBusiness International 42 IN ASSOCIATION WITH LALIGA

LALIGA’S LEADING ROLE

LaLiga, which operates Spain’s top two football divisions, is taking innovative steps in its efforts to protect the integrity of the game at home and abroad

aLiga’s reputation as a hotbed of supreme footballing talent is recognised worldwide. However, the organisation that Lrepresents the top two divisions of Spanish football is now also taking a leading role in the battle to protect the integrity of the sport – both in Spain and globally. The topic has never been more pertinent for Alfredo Lorenzo Mena, who joined LaLiga in January 2015 and is the organisation’s director of integrity and security. Allegations of corruption in sport continue to emerge on a regular basis across the world. In July this year, Spanish football itself was thrust into the spotlight when Angel María Villar Llona, the president of the Royal Spanish Football Federation (RFEF), and his son, Gorka, were arrested as football on prevention through education Liga and Segunda División, but clubs from part of a police investigation. – explaining forbidden behaviours and the outside those divisions often come to us consequences – as well as providing ways to to ask for advice. That shows that LaLiga’s Good governance report suspicions and concerns.” integrity programme is renowned and “We manage the top two divisions, so we are Although LaLiga only operates the top respected throughout Spanish football.” a different entity from the RFEF, but it is a two divisions in Spain, the organisation’s The first challenge facing any concern of course,” Mena says. “At the same strategy regarding the prevention of organisation responsible for protecting time, it also reinforces the importance of corruption in football includes educating the integrity of a network as complex as what we are doing at LaLiga and highlights individuals involved in all levels of the game. football in Spain is to engage with the clubs crucial issues such as transparency and good Through a partnership with the ProLiga themselves by underlining the importance governance.” association, which represents clubs in the of the issues at hand. Having started to focus on sports integrity third-tier Segunda División B and fourth-tier Mena is convinced that the top two as a priority back in 2013, LaLiga has Tercera División competitions, hundreds of divisions in Spain are now very well invested significant resources into proactive clubs have access to LaLiga’s advice in the protected thanks to LaLiga’s comprehensive prevention methods whilst simultaneously fight against corruption. education and prevention programme. exploring innovative approaches to identify However, he acknowledges that significant suspicious activities surrounding games. Protection challenges remain outside the top two tiers, “Since starting to focus on integrity issues “Our core business is the top two divisions, although the attitude towards safeguarding four years ago, little by little LaLiga has but we understand that football is not only the sport is on a positive trajectory. created a more extensive programme,” says about the professional game,” Mena adds. Pointing to the fact that the last recorded Mena, who studied law at the University of “We are offering real protection to Spanish suspicious incidents in the Liga or the Salamanca and served for 18 years on the football as a whole, so we work with Segunda Segunda División occurred towards the national police force, rising through the División B and Tercera División clubs, even end of the 2013-14 season, Mena adds: “The ranks to become chief inspector, before though they are outside our official scope. top two divisions are well protected from spending two years in the international oil “We want to protect Spanish football in match-fixing and corruption. There is a very and gas security sector. all categories and we have to be aware that strong system in place. “The integrity of the competition is very players can progress through the leagues “However, the other divisions are very important, so we are working with players, during their career. vulnerable, because no one has taken care coaches, club staff and others surrounding “We don’t have authority outside the of them. Players in those competitions

08/09.17 : SportBusiness International IN ASSOCIATION WITH LALIGA 43

generally will not earn a lot of money and always try to involve players from clubs sources of information.” some might have financial problems and in the same region as important messages In order to adapt to the evolving addictions, but this is no excuse for illegal delivered by a local celebrity are much more challenge, ahead of the 2017-18 season, betting.” effective.” LaLiga’s strategy is entering a new phase. LaLiga allows players of all levels to Underpinning LaLiga’s approach to LaLiga has taken the bold decision to report any issues via telephone or email on a protecting football is an appetite to engage bring its monitoring operations in-house, confidential basis, with the ‘hotline’ details with like-minded organisations at home and having previously used third-party providers available on all documents distributed to abroad. to look out for suspicious activities players and clubs. “Involving the police and the government surrounding games. “Players can contact us and say they is fundamental as these are criminal It is a step that is highly unusual in the have an addiction to gambling and alcohol activities,” Mena says. international marketplace, with federations and we will support them,” Mena says. “If “We’re very lucky to have a Memorandum and associations set to watch on with they provide us with information about any of Understanding with the police force interest to find out how the approach suspicious activities, we refer the evidence and can exchange information with the develops. to the police. government through the Sports Council. We “We offer players a soft hand with have also been involved in training police Partners support, but also a hard hand if they have investigators in how to deal with match- “We have been very satisfied with the work done something wrong. fixing cases for the past year-and-a-half.” of our partners, but we need to enhance our “Two years ago, we started working with LaLiga is also a key partner of the Council monitoring process, and if we manage things clubs from below the top two divisions and of Europe, working with the organisation in-house, we can utilise our knowledge of we provided the same solutions as we have on the groundbreaking Convention on the the lower divisions,” Mena explains. for the Liga and Segunda División. The Manipulation of Sports Competitions (the “We are developing our own software and clubs are more aware now of the importance Macolin Convention), which was opened have our own team of analysts. Under the of integrity and we aim to expand our for signature in September 2014 to provide a new system, perhaps 50 to 60 per cent of the collaborations with women’s competitions unique international legal framework. analysis can be attributed to the software, and other tournaments.” LaLiga also takes a hands-on role in but the other intelligence we will bring to linking up with organisations based around the situation is very important. Education the world to exchange information. “We have tailor-made resources to During the 2016-17 season, LaLiga hosted “The Council of Europe’s Convention will monitor our competitions and perhaps 162 training sessions, educating youngsters provide the backbone for the fight against other leagues and associations could follow and senior players about the dangers of corruption in sport across Europe in the this example in due course.” corruption in sport and how to guard against coming months,” Mena says. Maintaining the spirit of cooperation, heading down the wrong path. “The perception about LaLiga’s integrity LaLiga has already shared in-house software However, as Mena explains, the programme is that it is best practice and, with the police force with regard to fighting educational programme is continuing to through the Council of Europe, there is piracy. evolve and expand. the opportunity to share aspects of our Over the coming months, the internal “We are very ambitious,” he adds. “It is programme with other organisations. team will expand from a core of three compulsory for the 42 senior teams from “We’re also working with many leagues analysts as and when dictated by the the top two divisions to meet us at least and associations in Latin America and other software and its 24-seven monitoring once per year so we can provide updated parts of the world. Our integrity programme capabilities and also according to the information to their players and staff about is mature, but in some other leagues the parameters defined by LaLiga. the integrity programme and the reporting programmes have not been developed as Moreover, relations with players will be channels. much. further strengthened by the appointment of “However, for us, that’s not enough. We Luis Gil as LaLiga’s competition director. also want to expand in the game’s grassroots International “We have such a strong integrity and underline the importance of the values “We’re open to working with different programme and we do believe that our of fair play.” organisations around the globe, as long as we competition is well protected,” Mena LaLiga’s integrity operations already can get involved properly, rather than just concludes. extend into schools across Spain through signing a document against match fixing as “The effort we are putting into education the Futura Afición programme, which anyone can do that. and prevention is of paramount importance. engaged 5,000 ‘future fans’ last season. “This is not a national challenge; it’s We are investing time and money, but it’s “We focus on the values of football as an international challenge. You have to not an expenditure; it’s an investment for a that can have a big impact when people are consider international markets and the fact better future. young,” Mena says. that there are regulated and non-regulated “We have the best players and teams in “We spend a day working with the betting markets. During the monitoring the world so we have to be the best in terms students, teachers and schools and we process, we are keen to seek out deeper of protecting the competition.”

08/09.17 : SportBusiness International 44 IN ASSOCIATION WITH LALIGA

INTERNATIONAL COOPERATION

to-face with LaLiga, for example. They come out of the meeting with their convictions strengthened, because LaLiga has been able to share its experiences and knowledge.” Tjeerd Veenstra, the independent chair of the integrity unit at the Royal Dutch Football Federation, the KNVB, is particularly impressed by LaLiga’s ability to form partnerships – particularly with the national police force in Spain. “The MoU that LaLiga has with the police is absolutely vital as it can be very difficult to exchange information between different organisations and there are often legal hurdles to overcome,” Veenstra says. The KNVB will be watching on with interest as LaLiga implements its new in- house software system for the start of the new season in order to monitor games for suspicious activities. “It is a very interesting move,” Veenstra adds. “Spain is a big country with hundreds of clubs, so I can see why it makes sense.” Looking forward, establishing close ties with similarly proactive leagues is a crucial step in the battle against corruption in aLiga’s willingness to work closely the Manipulation of Sports Competitions, football, according to Veenstra. and effectively with partners which is the first and only legally binding He adds: “It can be as straightforward across international borders has framework in this area, is also vital.” as simply being able to pick up the phone set a new benchmark in the field of The Convention secretariat regularly to an organisation like LaLiga and ask: ‘Do Lsports integrity. According to Cassandra holds meetings with various stakeholders, you know about this person of interest?’ Fernandes, a senior project officer in the including those from the sports industry, We need to work together to tackle this sports conventions division at the Council such as governing bodies, leagues and effectively. By its definition, the challenge of Europe, LaLiga has collaborated with player unions, to gain a broad perspective facing us is international.” the organisation on the groundbreaking on the challenges facing advocates of sports Fernandes echoes those sentiments Convention on the Manipulation of Sports integrity. The secretariat also facilitates when she looks to the future and the role of Competitions, as well as the joint European exchanges with other stakeholders from LaLiga in the broader integrity picture. Union and Council of Europe project, Keep public authorities, law enforcement, “The main challenge will be to nurture Crime out of Sport. prosecutors and the betting industry. partnerships between the stakeholders and “LaLiga has shown a willingness to work prioritising this issue on a political level,” with stakeholders, not only in Spain, but Knowledge she says. “Fighting the manipulation of across Europe,” Fernandes says. With that in mind, LaLiga’s appetite to share sport involves input from betting firms, law “LaLiga is very hands-on in an operational knowledge with like-minded organisations enforcement agencies, various ministries, sense – something the Council of Europe around the world fits perfectly with the finance and tax authorities, and of course really appreciates as it sets an example for Council of Europe’s goals, which include the sports movement. other countries. We know that LaLiga works networking discussions and stakeholder “The task is to enable these different with South American clubs and within Spain workshops. stakeholders to work together. There is a across a range of levels. That is exactly the “To move forward as a political certain level of awareness that needs to exist sort of approach that influential sports institution, we need to facilitate the to tackle such a phenomenon and LaLiga is entities should be taking. exchange of information,” she adds. “You taking a leading role in putting the resources “LaLiga’s support for the Convention on can see it when organisations sit down face- required into this challenge.”

08/09.17 : SportBusiness International IN ASSOCIATION WITH LALIGA 45

SECURING THE FUTURE

lfredo Lorenzo Mena joined best standards possible.” direct responsibility, we can’t just say ‘it’s LaLiga in January 2015 as a direct Engaging with fans contributes towards a not our business’ and forget about it. response to a sickening incident “different concept of security” that is being “We’re working with clubs to have better that highlighted the challenges implemented and encouraged by Mena and control of away fans. The clubs need to Asurrounding security at professional football LaLiga. know who is travelling and how they are matches in Spain and around the world. “Fans go to a stadium to enjoy a match, so travelling so that security measures can In late November 2014, a Deportivo La we have been working very hard at violence be implemented. It is also then possible to Coruña supporter died following clashes prevention and engaging with fans on this provide accurate information to the police.” with rival fans outside the stadium before a matter,” Mena says. At the heart of LaLiga’s strategy for match at Atlético Madrid. improving safety and security at games is a The tragedy sharpened the focus of Fan engagement broader shift. Spanish football administrators, with LaLiga “We work with fan associations at a national “We are working on prevention of course president Javier Tebas acting swiftly to bring level. We have regular meetings with them and making it easier to report incidents, but in Mena as head of security, before integrity – at least twice a year – as it is important to the overriding idea is to encourage a cultural was later added to his brief. exchange opinions. change,” Mena says. Since his appointment, Mena and his “If we compare security at Spanish “Going to a football match is like going colleagues at LaLiga have worked tirelessly football now to 15 or even 10 years ago, it is to a concert or the cinema, so behaviour to support clubs as they seek to clamp down completely different, but the idea is to keep is important. Fortunately, 99 per cent of on trouble-makers. improving and be even better next year. We football fans are peaceful. For the others, we “We are working very hard to have safe are working with clubs and they are aware of have to change their mindset. and secure football matches and reduce the requirements.” “LaLiga does not have the authority to incidents of racist and intolerant chanting Specifically, LaLiga is keen to increase sanction a club for trouble in the stands by a small percentage of spectators,” Mena awareness of crowd management amongst or racist chanting. However, we can report says. clubs, particularly with regard to away fans. these incidents and work with clubs “It has improved in Spanish football, but Mena says: “If something happens outside on preventative measures, giving them it is not enough. We continue to work with a stadium, although it’s a job for the police instructions to prevent similar incidents in the authorities and our clubs to develop the and public authorities and we don’t have the future.” Z

08/09.17 : SportBusiness International 46 BUSINESS CASE STUDY : EUROPA LEAGUE

SIBLING RIVALRY | EUROPA LEAGUE EMERGES AS A MAJOR BRAND IN ITS OWN RIGHT

F The competition is seen to promote a togetherness in smaller communities, which sets it apart from the Champions League F Arsenal, Villarreal, Lyon and Hertha Berlin are among the teams that will be participating this season F Sponsors are attracted by strong viewing figures on Thursday evenings and reach across more than 20 European nations through the group stages

Manchester United’s players lift the Uefa Europa League trophy after they beat Ajax in the 2016-17 final in Stockholm (Mike Hewitt/Getty Images)

08/09.17 : SportBusiness International BUSINESS CASE STUDY : EUROPA LEAGUE 47

BY KEVIN ROBERTS “We just don’t compare it to the Champions League – it t’s 1,400km from Budapest to Lyon in France and is entirely different. It is the biggest and most diverse for the fans of 23-times Hungarian Cup winners competition with the widest number of territories covered” Ferencvaros the first tentative steps of that journey were taken on June 29, when they beat Jelgava of ILatvia in the first leg of their Uefa Europa League first GUY-LAURENT EPSTEIN, HEAD OF MARKETING, UEFA qualifying round tie at the Groupama Arena. For Ferencvaros, a regular in European competition throughout the decades and winners of the Inter City Fairs Cup back in 1965, the odds are stacked against them of football. After all, a few years ago Manchester United – making the arduous trip all the way to the final at the € m last year’s winners – didn’t get past the round of 32. Stade de Lyon in May next year. The399.8 total prize fund of “We have a good balance of strong clubs from But the presence of Hungary’s most popular team in the Europa League in secondary markets with clubs from the top five of other the initial stages of the Europa League along with a slew 2016-17 leagues. Last year’s final was between Manchester United of clubs almost unknown outside their own countries is a and Ajax, which could have been a Champions League big part of what makes the competition work. final just a few seasons ago,” Epstein explains. If the Champions League represents the crème de la The Europa League was introduced in 2009 as an crème of European football and showcases the finest evolution of the Uefa Cup, which had itself absorbed the players on the planet, the Europa League shows a European Cup Winners’ Cup a decade earlier. But the different side of football – its depth and diversity. competition can trace its roots back far further to the mid-1950s and the exotically titled Inter City Fairs Cup. Elite clubs The Europa League was, in all respects, a new brand, In all, 190 clubs will take part in the 2017-18 edition of designed for the 21st century sporting environment the Europa League - including those which finish in third which took into account the lessons learned over the place in their Champions League groups – making the decades. task facing teams like Ferencvaros even tougher. But with The ratio of Champions “The brand positioning and focus have worked well, €6.5m ($7.5m) on offer to the team which lifts the trophy League to Europa and the fact that it promotes a togetherness in smaller and the opportunity of drawing elite clubs including League prize money communities gives it something which is wider than the Arsenal, Villarreal, Lyon or Hertha Berlin in the group from Uefa’s total of Champions League. It is a dynamic and unpredictable stages, its appeal continues to grow. €2.35bn competition,” adds Epstein. For all that it can be argued that nothing has added ❚ Champions League For the 2016-17 season, clubs playing in the Europa to the allure of the Uefa Europa League more than the (77%) League earned different-sized slices of a prize fund decision to allow its winners an automatic berth in the ❚ Europa League of €399.8m, a figure calculated on the basis of the following season’s Uefa Champions League, a football (23%) competition’s allocated share of the net revenue from fact of life recognised by Manchester United manager all Uefa club competitions, which was €2.35bn gross. Jose Mourinho, who changed team selection in the The allocation ratio between the Champions League and domestic competitions towards the end of 2016-17 to Europa League is 3.3:1. focus on winning the Europa League and regaining the club’s place at the top table. Footprint over the whole continent But, according to Guy-Laurent Epstein, head of The way that revenues are distributed makes it difficult marketing at Uefa, you won’t find anybody around to calculate how much each of the Europa League’s five the organisation’s Nyon headquarters treating it Number190 of clubs that sponsors pay, but, as Epstein points out, “affordability is as a secondary competition or a stepping stone to will play in the Europa greater than for the Champions League”. the big time. League in 2017-18 Sponsorships are sold on three-year cycles which tie in “We just don’t compare it to the Champions League with the media distribution deal periods and the current – it is entirely different,” he says. “It is the biggest and line-up is Enterprise Rent-a-Car, main sponsors Fedex, most diverse competition with the widest number of who took over the slot from Western Union, Hankook territories covered and, maybe because it features a lot Tyres, Amstel, a brand of long-standing Uefa partner of clubs from smaller cities, you can feel the communion £ bn Heineken, and Italian banking group Unicredit. between the clubs and the fans in a different way.” “The competition gives sponsors a combination of The point is that for all its glitz and glamour football Amount1.2 BT Sport is a lower price point, but with footprint over the whole is not only about Europe’s big five markets and, says paying for rights to continent, with some 20-25 countries represented in Epstein, seen from elsewhere on the continent, things Champions League and the group stage. That combines with the Uefa stamp of look very different. Europa League games excellence, which is behind everything,” explains Epstein. “If you look at it from central and eastern Europe, it from 2018-21 “This is a competition played on Thursday nights, is the competition where many of the premium clubs where there is no other football and little other sport on play,” he adds. “In fact, it is often the only European TV, and that helps ensure there are high ratings in the competition that their clubs are participating in. What markets which are represented. When you step out of the we have is a competition which is unpredictable because top five football markets, the rest of Europe pretty much not all the clubs are well known, yet there is a high level has its best teams in the Europa League. Of course, we

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Continued from previous page...

learned a lot from running the Champions Uefa Europa League finals League and those lessons have been taken into consideration with the Europa League. The 2009–10 Atlético Madrid (ESP) 2 Fulham (ENG) 1 Hamburg (GER) critical thing has been the proper marketing of the brand to ensure it is promoted, developed 2010–11 Portugal (POR) 1 Braga (POR) 0 Dublin (IRE) and delivered in a holistic way. “That means that brand management and 2011–12 Atlético Madrid (ESP) 3 Athletic Bilbao (ESP) 0 Bucharest (ROM) presentation has to be consistent across all 2012–13 Chelsea (ENG) 2 Benfica (POR) 1 Amsterdam (NED) matches and all media. That is something we did with the Champions League and I don’t 2013–14 Sevilla (ESP) 0* Benfica (POR) 0 Turin (ITA) think there is much argument as to that now being the best brand in world sport. We have 2014–15 Sevilla (ESP) 3 Dnipro (UKR) 2 Warsaw (POL) gone on to apply that to the Europa League, 2015–16 Sevilla (ESP) 3 Liverpool (ENG) 1 Basel (SWI) but on its own scale and the results are proving that it has paid off.” 2016–17 Manchester United (ENG) 2 Ajax (NED) 0 Stockholm (SWE)

Evolved over time The development of the Europa League Italia will screen both competitions from of both Europa League and Champions sponsorship marketing plan has evolved 2018-21 after outbidding rivals Mediaset to League finals. over time. When it was the Uefa Cup, Uefa take the rights at a reported fee (Reuters) Finding effective social media strategies is sold only the rights to the final right up of €250m per season, while in the UK BT a priority for broadcasters and Uefa alike. until 2006, after which centralised sales Sport recently confirmed its second three- “Social media is just huge,” says Epstein. were introduced from the quarter-finals on. year stint as the rights-holder for both “TV audiences alone don’t really reflect the Even after the launch of the Europa League at a fee of £1.2bn. Meanwhile, in France way that people are consuming the Europa in 2009, while media rights sales were another telco, SFR, also snapped up both League. Today we have to consider the centralised from the outset, sponsorship was competitions. combined TV and social media audience. left to individual clubs before the last 32, “Having both the Champions League Together they make the audience much when the centralised system kicked in. and Europa League puts broadcasters in broader and social and digital offer new “But from 2012-15 we introduced a fully a strong position with programming on ways of exploiting the rights. We need to centralised system, because we felt we had Tuesday, Wednesday and Thursday nights. find a way to really evaluate and calculate given the brands a chance to get used to the It allows them to have exclusivity on the impact and although we don’t have the competition and to prove that the product evenings when there is generally far less answer yet, work is continuing.” was working through the data we had sport around. That’s not so much the case collected,” says Epstein. at the weekends, where it is more difficult,” Revamping the brand “Now we have a situation where there Epstein says. Having launched in 2009, Uefa has no is competition for the places on the roster. But the flight of major sports properties intention of letting the Europa League After all, it is an attractive proposition to to well-funded pay TV operators has, in stagnate. be part of a European football competition some territories, impacted on audiences and “We are currently revamping the brand which has significant reach. That opens up Epstein and his colleagues are aware of the identity of the competition. While we great opportunities and I think we have made importance of free-to-air coverage. understand that a brand has to evolve, this good progress.” “We believe that the Europa League needs will be an evolution of the look and feel,” Europa League media rights are sold in the free-to-air more than the Champions League, says Epstein. same windows as those for the Champions because it is a young brand and needs more “That will include providing new League, but Epstein is eager to stress that exposure to help it mature. opportunities for sponsors to activate their they are “never sold as a package”. “On the other hand, we can’t dictate how rights, which is important now that it is a “Going to market with both at the same the market reacts and free-to-air ultimately well-known product.” time creates an immense opportunity to depends on the dynamics of the market,” Key among these are digital optimise the value of the rights, but they he says. implementation and greater access to are never linked and every deal is always The need to reach a market beyond content for sponsors to enable them to be different,” Epstein explains. existing subscribers is not lost on more creative and consistent in the ways they But the sweep of midweek football broadcasters and BT Sport, for one, engage their audiences. That goes alongside offered by that combination of Champions announced that it will be making clips, increased use of LED boards for selected League and Europa League has proved highlights shows and magazine shows group stage matches which have, to date, to be irresistible so far for broadcasters available free on social media when its featured static boards. Z building or defending positions in some new contract kicks in next year. This of Europe’s biggest markets. In Italy, Sky complements its free social media screening For Europa League data, turn to page 50...

08/09.17 : SportBusiness International NEED FAN DATA?

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FOOTBALL DATA | UEFA CHAMPIONS LEAGUE AND EUROPA LEAGUE

The Champions League and Europa League, Uefa’s two flagship club football competitions, attract millions of fans of the sport from across Europe. Despite both offering a similar product, there is a divergence in the followers that the two competitions attract, as is evident in the SMG Insight data illustrated on this page. Data comparing Champions League and Europa League followers was only available for the UK market.

Income of Uefa competition followers in the UK The Europa League will be heartened to see that it has a higher proportion of followers in the highest earners bracket.

Age of Uefa competition followers in the UK Europa League followers cluster in the 25-34-year-old age segment, whereas the Champions League has more appeal to middle-aged fans. Gender of Uefa competition followers in the UK Despite efforts by the football authorities to bring the sport to a wider audience, fandom for the two club competitions in the UK is dominated by men.

Source: Research conducted by SMG Insight between December 12, 2016, and January 26, 2017

08/09.17 : SportBusiness International

52 IN ASSOCIATION WITH ASHGABAT 2017

ASHGABAT 2017 | READY TO WELCOME THE WORLD As Turkmenistan prepares to host the 5th Asian Indoor and Martial Arts Games in September we capture the growing excitement among organisers, volunteers and, of course, athletes

“I really enjoy volunteer work “I’m so proud of being a part “The experience helps which has given me so many of Turkmenistan’s biggest- me motivate myself to memories already” ever sporting moment” improve” GOZEL ACHILOVA, ASHGABAT 2017 RAHIM HOJAGULYYEV, ASHGABAT 2017 GYZYLGUL ALLASHUKUROVA CEREMONY TEAM LEADER WORKFORCE TEAM LEADER ASHGABAT 2017 EVENT SERVICES

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1. The volunteers 2. The chairman

When the call was made for the public a defining moment in our history, I’ll be able to support the Ashgabat 2017 5th Asian to regale them with stories from my time as Indoor and Martial Arts Games it was a volunteer.” answered by thousands of Turkmens Hojagulyyev is a second year student at wanting to share the country’s dream of the Turkmen State Institute of Economics hosting its first major international multi- and Management and has been through sport event. intensive training to learn new leadership The key to the success of any world- skills as well as role-specific skills. class event is the tireless work of the “What I am learning from being a volunteers and when the top athletes volunteer will undoubtedly help me in my from Asia and Oceania arrive in Ashgabat life,” he says. for 12 days of exhilarating sport, they will “It is making me a more confident person be greeted by 10,000 of the country’s and dealing with people from across the most energetic young men and women in world during the event can only improve my colourful uniforms and even more attractive character.” smiles to ensure it will be an event worth As well as the training sessions held in remembering. Ashgabat by seasoned international experts Volunteering in these numbers is a in event volunteering, some of the First The 5th Asian Indoor and Martial Arts Games relatively new concept for Turkmenistan Stars have gained frontline experience by represents a serious investment made by which will benefit for years to come from volunteering at events abroad. Turkmenistan to develop a state-of-the-art a dedicated workforce of patriotic young Gyzylgul Allashukurova, a student at the sporting and city infrastructure that will people giving their time to welcome the Turkmen State Institute of Finance, works benefit the nation for years to come. world. in event services and was one of the lucky For the first time, leading athletes from But to become a member of the First Stars, few to travel. She used the opportunity to Oceania will compete in the event alongside the name of the Ashgabat 2017 volunteer overcome a language barrier. Asia’s best, making this a truly international army, means going through a tough selection “I attended the Fifth Asian Beach Games spectacle involving 21 sports being played at process followed by intensive training and in Vietnam last year as part of my Ashgabat the impressive Ashgabat Olympic Complex in preparation. 2017 training,” she says. the heart of the capital. For many of the volunteers, the journey “Since Vietnamese volunteers didn’t With the countdown running down to began almost a year ago when training know Turkmen or Russian, I had to speak the final weeks before its September 17 was launched in September 2016, and they in English, which was incredibly difficult to start, Chairman of the 5th AIMAG Executive received their first taste of what to expect in start, but, by the time the competition was Committee, Dayanch Gulgeldiyev, speaks April when the successful Inspiring Ashgabat over, I was much more fluent. about final preparations. Test Event Series was held. “The experience helped me motivate More than 1,500 volunteers worked on myself to improve.” How is the city looking forward to Inspiring Ashgabat but pre-Games training While volunteering is a serious business, welcoming participants and fans to involved around 5,400 volunteers, and the the youngsters will be told to have fun and Ashgabat 2017? training sessions have been stepped up as enjoy their work so that their infectious Dayanch Gulgeldiyev: The Ashgabat 2017 we draw closer to the Opening Ceremony on energy spreads throughout the entire event. 5th Asian Indoor and Martial Arts Games September 17. Gozel Achilova, a ceremony team leader will be here before we know it, but we will be It is a huge mobilisation of the country’s who has volunteered several times before, ready. When it opens, it will be Central Asia’s youngsters who will play a central role in the perhaps sums up this approach best. biggest-ever competition and we’ve put in an success story of Ashgabat 2017, and each one “I really enjoy volunteer work which has enormous amount of work into it. is well aware of the important job ahead. given me so many memories already,” she The Ashgabat Olympic Complex, where “I’m so proud of being a part of says. “But I was happiest when my friends the competitions will take place, is fully Turkmenistan’s biggest-ever sporting messaged me to say they saw me on TV fitted out and ready to go. Having held the moment,” says Rahim Hojagulyyev, a during medal ceremonies in the Inspiring successful Inspiring Ashgabat Test Event workforce team leader. Ashgabat Test Event Series standing next Series in April, we’re very pleased with our “Maybe one day, when I’m old and my to the winners. It’s a feeling that never preparations so far. The city of Ashgabat is grandchildren ask me about Ashgabat 2017, grows old.” Z ready to welcome Asia and Oceania’s best

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athletes. We’re looking forward to showcasing Turkmenistan to the world as a land of limitless opportunities.

Ashgabat 2017 will be a historic occasion, with Oceania countries taking part in the competition for the first time. What are your thoughts? DG: Ashgabat 2017 will be a defining moment for us and the region as a whole for many reasons, but of course it will be an honour for us to host Oceania countries at an Asian multi-sport competition for the first time. This can only be good for the quality of the sports that we are hosting and it will make for some very interesting competitions.

What sort of legacy can this event provide for Turkmenistan both on and off the field? DG: This event will inspire a whole new generation of Turkmen sportsmen and women. Our athletes are all training intensively because they will have the added pressure of performing in front of their own family and friends which should motivate them to strive harder. Their performances 3. The home favourite will be watched by the country’s youngsters who will hopefully be encouraged to play sport and represent us in the years to come. At 19 years old, Turkmenistan’s Seydilla In 2015, he won a silver at the But one of the most exciting benefits is the Tazayev stands tall among his peers after Memories of Heroes of Second World introduction of mass volunteering, which is making history in June by winning his War tournament in Moscow, Russia. a relatively new concept for Turkmenistan. nation’s first-ever Greco-Roman gold on He also took bronze at the Asian Cadet We are delighted to see thousands of young the continental or world stage. Championships in New Delhi, India. people step forward and their training and The softly spoken athlete made a A year later, he was a bronze medallist experiences will undoubtedly benefit the dream comeback against Iran’s Keremat at the Junior World Championships in country as a whole beyond Ashgabat 2017. Abdevali in the final of the Asian Junior Macon, France, and recently, took bronze Championships in Chinese Taipei. Despite at the 2017 Islamic Solidarity Games in Ashgabat 2017 represents a big investment trailing by three points with less than 10 Baku, Azerbaijan, to show that he is more made by the country… will it reap dividends? seconds remaining on the clock, he earned than ready to step up to the senior scene. DG: Hosting a competition of this magnitude a famous win with a four-point high dive The athlete, who is hungry for more isn’t just about the event itself. Money was takedown. success, has his sights set on the upcoming invested not only on construction of the Tazayev’s glorious rise to the top is 5th Asian Indoor and Martial Arts Games Ashgabat Olympic Complex, but also for taking its time to sink in but the modest in Ashgabat. upgrading the capital city’s infrastructure. youngster believes he is ready to step up “It’s difficult to explain my feelings as I Ashgabat is a state-of-the-art modern city to to the seniors and make an impact when get ready for Ashgabat 2017. I’m anxious, rival any in the world. Looking around you’ll his country hosts the 5th Asian Indoor and but also eager to fight,” he says. “I’m ready. realise that a key reason why Ashgabat 2017 Martial Arts Games from September 17-27. Competing in front of a home crowd will will succeed is because it is organised in one of “Honestly, I couldn’t believe I’d won be a dream-come-true moment for me. I’m the world’s most beautiful cities. We’ll use this gold until I had it firmly around my neck. looking for nothing short of gold and I’m historical opportunity to achieve even more Only then did I realise it was truly mine. going to work hard for it. progress and advancement in all respects. This is my greatest triumph. The first “I have won eight or nine international A significant challenge put before us as thing I did was to call my parents,” he says. medals, but none of them would be as event organisers is to open Turkmenistan Tazayev’s ascent to Asian Junior gold precious to me as a medal at Ashgabat to the whole world through sports and did not happen overnight. He had put 2017. I’m very motivated to win.” hospitality, and Ashgabat 2017 will enable us up consistent performances since 2015, For Tazayev, the love for sport comes to do just that. winning several medals in the process. above everything else.

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“I can’t wait to compete there. I have read on the internet about all the incredible work they have done in building the facilities which has only made me even more excited to get there and see it for myself”

4. The international star

After securing bronze at the 2017 IBJJF across the sport which is now fully World Championships in California earlier recognised as a federation by the Jordan this summer, Jordan’s Lama Qubbaj says she Olympic Committee, thus allowing athletes is hitting her peak as she prepares for the to compete officially under the Team Ashgabat 2017 5th Asian Indoor and Martial Jordan flag. Arts Games from September 17-27. Ju-jitsu is not currently included on the The 28-year-old reached the semi-finals Olympic roster, which is a disappointment of the heavyweight division, adding to her for a country with so much world-class long list of international medals that have talent, but the World Games and then elevated her to becoming one of the world’s Ashgabat 2017 provide Qubbaj with the greatest female ju-jitsu fighters. chance to shine in the international Her rise is even more astonishing spotlight. considering that the three-time world “To be in the Olympics would be a dream champion only took up the sport five years come true,” she says. ago. “I am sure that the sport will get there Now she is focused on a busy few one day as it is now included in multi- “I started training in Greco-Roman months that will see her compete at the sport events at a continental level like wrestling when I was in grade four and World Games in Poland prior to heading to Ashgabat 2017.” have been in love with the sport ever Turkmenistan. The professional architect doesn’t have to since. For the time being, I’ve given up my “As an athlete, I am probably in the look very far for inspiration with her sister studies to focus solely on the sport. I lead best shape of my life now as I have Rana, also a former world champion, her top a life dedicated to wrestling and I aim to been training really hard,” she says after role model. completing an intensive month’s training “She was the first Jordanian female to win be successful,” he says. in New York. “I have two huge events still titles in ju-jitsu overseas and I hope she will Unsurprisingly, Tazayev has set out a to come this year and hope that by the be there competing too in Ashgabat,” she very clear path for himself in his mind. time Ashgabat 2017 comes around I will says. “She has overcome many difficulties “I want to win as many gold medals as be in the best physical and mental shape and proven that females in Jordan can possible in the next five years, beginning possible.” compete at an international level. with Ashgabat 2017. I want my country’s Despite being a latecomer to the sport, “I get my motivation from her as she is the national anthem to play at international Qubbaj quickly became one of the best in best.” arenas around the globe. In three years, the world, a feat she puts down to her coach, Looking ahead to Ashgabat 2017, Qubbaj I want to fight for gold at the Tokyo Sami Al Jamal. said she has been researching about the event Olympic Games. It’s an achievable “I was playing basketball and shot put and the city to be prepared. target,” he says. mainly but decided to try ju-jitsu as a way “I am looking forward to the 5th Asian He also has a clear message for the of keeping fit,” she says. “I loved the sport Indoor and Martial Arts Games in Ashgabat,” immediately and when I met coach Sami he she says. people of Turkmenistan. told me I could be a champion within six “It will be tough, but for sure it will be “My request to my countrymen is to months.” a well-organised competition and I can’t come to the venues in Ashgabat and He was not wrong. After some intensive wait to compete there. I have read on the cheer for all of us when we compete. training Qubbaj participated in the Abu internet about all the incredible work they It’ll motivate us and go a long way in Dhabi World Ju-Jitsu Championships and have done in building the facilities which has boosting our confidence. With your took gold in her weight and bronze in the only made me even more excited to get there support, we’ll be able to perform well at open weight. and see it for myself. It will be a memorable home,” he says. Jordan is enjoying considerable success experience.”

08/09.17 : SportBusiness International 56 FAN XP : WIMBLEDON

The Secret Fan

THE SECRET FAN | CENTRE COURT, DAY 5, THE CHAMPIONSHIPS, WIMBLEDON

Ben Cronin enjoys the most British of sporting experiences at Wimbledon

F Tournament beautifies the surrounding area on the route into the Championships F Outer courts provide uncomplicated access to players F Crowd carefully policed by military volunteers

he Wimbledon experience starts a present a version of England that doesn’t distils the tournament’s essence into a simple long time before you get through really exist anymore – somewhere between mnemonic: ‘Tennis in an English country the gates of the All England Lawn Richard Curtis’s Notting Hill, a Jubilee party garden’. The club’s attention to detail and Tennis and Croquet Club (AELTC). and London during the Blitz. the accumulation of ‘little decisions’ that go TGetting to this verdant outpost deep in one towards maintaining the immaculate feel of the remoter zones of suburban London Identifiable buzz and aesthetic of the world’s oldest and most is almost as much a part of the occasion as You can imagine all of this goes down well prestigious tennis Grand Slam are legendary. watching the tennis. with foreign visitors and tourists, but even To take an example, the floral boxes that Like props from The Truman Show, the locals are happy to go along with the decorate the shops and houses on the way red Routemaster buses line up outside the shtick. A congregation of beige linen suits, into the tournament are a gift from the club thronging entrance to Wimbledon train floral dresses and Panama hats amasses on to beautify the area beyond the gates. station, while tennis-ball bunting, floral the trains as they converge on SW19 and After a frictionless security check, we get boxes and Union Jack flags adorn the window there’s an identifiable buzz in the crowd a more concentrated hit of the Wimbledon displays of bars and shops on the 25-minute – a sense of escapism and privilege, as if aesthetic as we make our way through the walk through Wimbledon Village and down the ticket-holders are on their way to an gates and set eyes on the impeccable grass the hill leading towards the Championships. exclusive tea party or the Last Night of the of the outer courts. Hanging baskets in the The wealthy streets and environs of the All Proms. It’s an atmosphere that is of course walkways and the impeccably-trimmed England Club, like the tournament itself, assiduously cultivated by the AELTC, which topiary of the wider grounds add up to a

08/09.17 : SportBusiness International

56-57 Secret fan.indd 56 26/07/2017 09:54 FAN XP : WIMBLEDON 57

“It’s difficult to escape the sense that you have made it into the inner sanctum and the effect of this good fortune on the crowd is to make them slightly giddy”

picture of refinement. The sound of Slazenger academy. Because Watson and Azarenka are Lauren-designed costumes – which create the balls thudding into canvassed backboards and still warming up, the Army man examines over-riding sense of good taste and refined the occasional smattering of polite applause our tickets and takes us directly to our seats, decorum. Like the US Masters, carefully are as unmistakable as the rich green where we take in the sights and experience chosen sponsor logos are subtly integrated uniformity of it all and the looming sight of the Centre Court crackle for the first time. into the infrastructure, such as the tiny dark the ivy-clad Centre Court, which stands in Once again it’s the accumulation of the little Slazenger logos on the green backboards or the middle of the grounds. details – the perfect lines of the grass, the the unobtrusive IBM icon on the scoreboard. Crowds are free to walk and mill alongside green seats, the oak-rimmed Royal Box, or the outer courts with a bit of gentle policing the umpire and line judges in their Ralph Universal appeal from officials. We’ve arrived early enough It’s difficult to escape the sense that you to watch some doubles matches and then a have made it into the inner sanctum and the practice session on Court 10. It’s possible to REFRESHMENTS MENU – effect of this good fortune on the crowd is to locate an empty garden bench and listen in A SELECTION: make them slightly giddy. As Watson adopts as Greek player Maria Sakkari is put through the role of plucky but ultimately doomed drills by British coach Mark Petchey. He is in • Selection of sandwiches £4.70 Brit, the crowd excitably take up their duties, an awkward position, given that the Greek is • Pulled lamb wrap £9.50 slow-handclapping Hawk-Eye decisions and due to play the British No.1 and Wimbledon’s • Tea £2.20 shouting out their self-conscious support. new darling, Johanna Konta, later that day. • Coffee £2.30 It’s been said that the reason people titter Controversially, the organisers have • Soft drinks (from) £2.60 so childishly when a ball bounces into the scheduled Konta’s match for Court 1 rather • 10 strawberries with cream £2.50 crowd or a pigeon flies onto the court is than Centre Court, but not because they are • Glass of Pimm’s £8.50 because accidents feel so subversive in such reluctant to put too many British players a controlled and decorous setting – like on the bill. Our Centre Court tickets will RATINGS: someone shouting in church. later allow us to watch third-round matches Ease 7/10 The ATP Tour might be thinking of between British No.2 Heather Watson and Wimbledon cultivates the impression that allowing crowds to move around during Belarussian Victoria Azarenka, fellow Brit you have to earn a Centre Court ticket, but points at other tournaments, but it’s unlikely Andy Murray against Italian Fabio Fognini, it also uses the ticket ballot to encourage such chaos would be allowed to infiltrate the sandwiched either side of Rafael Nadal versus tennis participation. We were entered into show courts of the All England Club. After next-generation talent Karen Khachanov. the ballot after taking part in a local ‘Tennis Watson loses in three sets, we leave for some After a detour through the Wimbledon for Free’ league. People are encouraged lunch in the break before the Nadal match, Lawn Tennis Museum – the highlight of to take the train rather than drive to the but other trips to the toilet and visits to the which is a new virtual-reality experience that tournament and once you are there, black bar are only allowed during changeovers. tours the grounds and puts you in the middle cabs and double-decker buses are provided The excursions become more frequent of Centre Court during last year’s ladies’ final to take ticket-holders to the venue. It’s a as we participate in that other Wimbledon – we head to the real thing and the Watson 25-minute walk to the All England Club. ritual, the drinking of Pimm’s, the match. tournament’s most popular tipple. Like the carefully-controlled atmosphere on Centre Value 8/10 Take in the sights Court, though, the sugary, low-alcohol drink Centre Court tickets were £95, but the It starts at 1pm, so we hurry through an is intoxicating without letting things get AELTC could arguably charge more. This entrance and up the stairs into the giant totally out of hand. allowed us to watch three top-level matches green Centre Court structure. As we get After Nadal grunts his way to an easy closer to our seats, we break into a trot in spanning roughly seven hours and also gave victory and Fognini starts to make life the uncrowded gangway behind the stand, access to the games being played on the difficult for Murray in the fading light, a before a man in Army uniform politely outside courts. The food was impressive new face beams excitedly as he settles into asks us to slow down. This is another thing and not quite as expensive as Wimbledon’s the seat beside me and explains the event’s about Wimbledon: all of the stewards are reputation suggests. The price of a punnet universal appeal. Andy has travelled down volunteers from the Army, Royal Air Force of strawberries and cream has remained at from Newcastle for the day and has managed and Royal Navy – a tradition, as the museum £2.50 since 2010. to pick up a ticket through the resale kiosk. explains, that dates back to the end of the Using a popular refrain for a Wimbledon Second World War, when the British Armed Recommendation 10/10 fan, he says he doesn’t watch tennis the Forces helped the Lawn Tennis Association Everyone wants to go to Wimbledon, rest of the year, but always tunes in for the get the tournament back on its feet. The whether they like tennis or want to drink in Wimbledon fortnight. Could there be a better effect of the injunction and the sight of the the garden-party atmosphere. Centre Court endorsement for a sports event than that? Z uniforms against the dark green paint of the tickets for a big match provide the ultimate walls add to the Blitz atmosphere – or the in bragging rights. Z To read more about Wimbledon’s attention sense that you’re in a well-drilled military to detail go to page 60.

08/09.17 : SportBusiness International

56-57 Secret fan.indd 57 26/07/2017 09:54 58 IN ASSOCIATION WITH PERFORM GROUP

DIGITAL FIRST | TEN YEARS OF PERFORM GROUP

SportBusiness International speaks to Simon Denyer, founder and chief executive of Perform Group, about the philosophy of the company as it celebrates its 10th anniversary

industry was from the perspective of starting from scratch, with just some technology and some rights, and worked on how we would build a sports content business for the next 10 years. “We knew that we didn’t want anything to do with analogue broadcasting, linear programming or print, and that we weren’t going to collect content in anything other than digital,” he explains.

Energy and commitment The digital-only focus gave Perform the jump on potential rivals across the market in a way which went beyond simply understanding and implementing technology. The company was run by young people with the energy and commitment unleashed by the promise of a start-up, people who were unencumbered by the past and the ‘way things have always been done’. Perform Group’s Simon Denyer (right) shakes hands with Fiba president Patrick Baumann (Richard Juilliart/Perform Group) “In fact, it’s more or less a sacking offence around here to say that we’re doing en years ago, as Simon Denyer and got the pronunciation) OTT service in something a particular way because that’s Ollie Slipper were in the process of Canada, following on the heels of its 2016 how we did it last year,” says Denyer with merging their respective companies roll-out in Germany and Japan. In little what is probably a smile. to create Perform, they “locked more than a year DAZN has become a major “Every year we change the way we do Tthemselves in a room” to create a document player on the international sports scene, things. We are always looking for more which turned out to be more a manifesto acquiring key domestic rights in Japan and, efficient ways to get more coverage and faster than a detailed plan for the new business. in a deal which announced its intentions and ways of getting the feeds out. Digital and IP Rather than mapping out a specific route to capabilities to the world, sharing the UEFA (internet protocol) are getting more efficient, growth and profitability, it defined an ethos Champions League with Sky Deutschland and there are always better ways of doing which, a decade down the road, remains through a sub-licensing deal running into something. the driving force of a business which has hundreds of millions of dollars. “We are not hidebound by any existing consistently sought and found opportunity business model and we have a pretty ruthless by challenging accepted thinking and finding Founding principles approach to the way we do things. For new ways of approaching sports media. According to Denyer, the launch of DAZN example, DAZN doesn’t have studios because Today Perform is established as a hugely was the logical next step in the development right now we don’t need them, as we don’t influential digital sports content business of the company and is perfectly in keeping do pre-and post-game programming. If we with a turnover of £287m (320m/$375m) with its founding principles. start the feed of a live event five minutes or in 2016. It manages and delivers the media “Our ethos has always been not to 15 minutes before it starts, it doesn’t really output of rights-owners, including the WTA replicate things done by other businesses matter to the audience and once the game Tour and Fiba, and serves B2B clients right and not to do anything that isn’t digital. By finishes, we don’t want them hanging around across the publishing and betting sectors. keeping to that, we have moved up the value when we have another 25 or 30 things on live But, most significantly, Perform has become chain,” he says. which we want them to watch,” he explains. a sports broadcaster in its own right. The “Ten years ago there were already well- The decision to launch DAZN was taken company recently announced the launch of developed ways of making money from sports because Denyer and his team felt that the its DAZN (try saying “Da Zone” and you’ve media rights. We just looked at where the changing consumption habits and technical

08/09.17 : SportBusiness International IN ASSOCIATION WITH PERFORM GROUP 59

capabilities had reshaped the sports media environment, and created a demand that established sports channels couldn’t meet. “I genuinely believe that the only reason sports channels exist in their current format is that linear channels have, historically, been the only way to get into the home. There’s no other logical reason, because, among other things, linear creates all sorts of scheduling problems,” he says. “But consumer behaviour has completely changed and as we don’t have channels, we decided to go straight to OTT and show everything. When it’s on, it’s on and when it’s not, it is available on demand. We believe that in five years’ time that’s how almost all sports will be viewed. “We understood that now the home and the mobile phone are really capable of receiving these services, it is time for us to push on to the next stage of our evolution,” The launch of DAZN was seen as the logical next step in the development of the company (Blende11 Fotographen) he says. “We launched in markets which had scale “It was clearly inefficient, because it was to pay right then,” he says. “But Riccardo in terms of market size, but where, for local based around the needs of one broadcaster understood what we were about, had and historic reasons, there were inefficiencies which only covered the games it wanted to confidence in our business model and was in the market which had left sport rights show and then had an agency working to sell happy that he would be paid. Other people under-valued.” the coverage around the world. That was including Barry Hearn at Matchroom, Jonas While the Perform business may have difficult, because broadcasters couldn’t be Persson (then at IEC), Seamus O’Brien (then grown hugely over the years, the eye for sure they were going to get games featuring World Sports Group) and Paul McGrath from opportunity and willingness to innovate, players from their countries, which is what Pitch have also been incredibly supportive which is evident in the development of fans want to see. over the years.” DAZN, has been one of the hallmarks of the “By taking a digital approach, we are able company since its early days. to produce every game from every court Volume of coverage Whether it was convincing betting during the season. Among other things, that While DAZN and rights partnerships are companies that the use of data and video guarantees broadcasters access to games the two biggest sectors of the business, stimulated business, doing advertising- featuring their local heroes, but it means that Perform Group is the sum of many parts. inventory-based deals with publishers for all the content is available either live or on Its Omnisport news service, network of content delivered through the company’s demand,” he says. sports portals and data services Opta and ‘e-player’ or delivering the first England “Our focus is on properties which are RunningBall are successful, stand-alone football international exclusively online, premium, but which can really benefit from businesses which contribute to the success of Perform has consistently thought differently. investment and the strategic and production the group in different ways. input we can deliver. We are a natural partner “They are all inter-linked and part of the New model for sports production for these rights-owners and there’s a higher masterplan. Before we launched DAZN, we And that approach naturally extends to its return on investment at the back end.” significantly increased the editorial budget relationship with rights-owners such as the Fiba, world basketball’s governing body, of our SPOX and Goal portals, so that they WTA Tour, with which Perform announced has also formed a media partnership with could up the quality and volume of coverage a 10-year partnership in 2014 and, in doing Perform in a deal which covers three four- of the NFL, NBA, Premier League, LaLiga so, created what amounted to a new model year cycles of international competitions and and Serie A, and other properties which we for sports production and distribution. It their associated qualifying competitions. would be carrying,” Denyer explains. also raised eyebrows because of its size; at Beyond the company’s ethos, Denyer says “The number of unique users doubled around $500million, it was a huge deal in its quality of relationships with rights-owners from five to 10 million, and when we own right and the biggest in the history of and agencies has been central to Perform’s launched DAZN, we knew we already had women’s sport. development. 10 million people in Germany reading “We were already producing the WTA Tour “In the early days I remember signing a news articles about the properties we were website and live-streaming service, and were deal worth several millions for non-broadcast showing exclusively. We are using them to asked to review the entire rights management rights with Riccardo Silva of MP & Silva, build user bases in territories where we think and production strategy,” Denyer explains. knowing that we didn’t have the money we may launch DAZN,” he says. Z

08/09.17 : SportBusiness International 60 FAN XP : WIMBLEDON

ATTENTION TO DETAIL | HOW WIMBLEDON SWEETENS THE FAN EXPERIENCE

From perfect strawberries to ultra-efficient queues, the All England Club is still the cream when it comes to entertaining thousands of tennis fans each year Getty Images BY DOMINIC BLISS f you’ve ever eaten a strawberry at Wimbledon, know this: it was still growing in a field in Kent the morning of the day you popped it in your mouth. IThat goes for all 28,000kgs of the plump, red berries consumed during the Wimbledon fortnight. They’re “picked at 4am, delivered to the club by 11am for inspection and hulling, and then enjoyed on the same day”. This fruit is perhaps symbolic of the All England Club’s attention to detail when it comes to accommodating their spectators. (Mind you, at 25p a strawberry, you’d expect a sterling service.) Just under half a million spectators visit the All England Club during the Wimbledon fortnight. The total capacity of the ground is 39,000 a day, but since used tickets are resold, this figure often creeps higher. Many of the spectator facilities at the All London Boroughs of Merton and Wandsworth, Managing so many people across a 13.5- England Club are now standard offerings at and Wimbledon Park Golf Club to manage acre site is a mammoth operation. Around all three of tennis’s other Grand Slam venues: the process. This year the area where those 6,000 extra staff are employed during the luxury corporate entertainment, overpriced queuing camped in Wimbledon Park was Championships, including 2,200 catering concession stalls, a fan zone for kids, protected by heavy-duty anti-terrorist security staff and 813 stewards. engaging social media and a show-court roof. barriers. For campers, there is even a “strictly At the core of the Wimbledon experience (Roland Garros is the only Grand Slam yet to enforced” bedtime curfew at 10pm and a is the idea of an old-fashioned English garden install one of these). reveille at 6am. There’s also a ban on smoking, party. The lawns, the flowers, the Pimm’s, excessive boozing and loud music. the champagne, the strawberries… it all harks Part of the institution But none of these regulations seem to dampen back to a Victorian ideal of lawn tennis. But there’s one area that is absolutely unique the spirits of the queuers. With every year that This may be rather hackneyed, almost to Wimbledon. That’s the ticket queue. In passes, Wimbledon maintains its popularity. Disney-fied, especially in this modern age of these days of e-commerce and online ticket The AELTC wisely chooses not to rest cut-throat professionalism, but it’s a formula sales, it’s a sign of Wimbledon’s eccentricity on its laurels. “The day we ever become that’s enormously popular with tourists and that they still allow fans to camp overnight in complacent about what we do is our biggest Londoners alike. a south London park in order to line up the worry,” Desmond admits. Mick Desmond is commercial and media following day, regardless of the notoriously With that in mind, there are ambitious director of the All England Club (AELTC). mercurial British summer weather. Surely plans for future development of the club “I think the English country garden is this is sport’s greatest act of sadomasochism? facilities. By 2019 No.1 Court will feature a almost a sub brand of Wimbledon,” he tells “You know we could sell those tickets retractable roof and 900 extra seats. A two- SportBusiness International. “It’s in our DNA. in the ballot, but the queue is part of the level public plaza will replace Court 19. It’s how we present ourselves, how we lay out institution,” Desmond says, admitting that Looking further ahead, the AELTC wants the grounds, the flowers, the bunting…” having thousands of punters shuffling along to purchase Wimbledon Park Golf Course, Wimbledon may be a high-tech global a pavement every day is good marketing, the venue just to the east, across Church sporting event with all the associated rather like those nightclubs that force their Road. The rumours are they plan a brand new technology, machinery and facilities, customers to queue for hours outside before show court, making Wimbledon the largest but, rather masterfully, the tournament entry. “It also gives people a last opportunity, tennis tournament on the planet. organisers succeed in keeping this hidden if they want to queue to get a ticket,” he adds. If that day arrives, they’re going to need a beneath the surface, so that, as a visitor, what So big are the numbers involved that the lot more strawberries. Z you experience is the old-fashioned country queue is almost a sporting event in itself. The A longer version of this article is available at club on the exterior. AELTC relies on the Metropolitan Police, the www.sportbusiness.com.

08/09.17 : SportBusiness International NEWS ROUND-UP 61

Esports

Liam Thompson, gaming and influencer executive with Havas Sports & Entertainment Cake, picks out the most interesting recent stories from the esports sector

ESL ANNOUNCES BETWAY AS OFFICIAL GAMBLING PARTNER As 16 of the world’s best Counter Strike teams fought it out for a share of $250,000 (€220,000) at last month’s ESL Cologne esports tournament, organiser ESL named Betway, one of the UK’s largest online gambling sites, as the esport tournament’s official betting partner. Betway was signed up to add to the viewing experience ESL provides by supporting the live broadcast with real-time odds. The new partnership saw Betway “demonstrate the balance of power between the playing teams” in real time as esports fans tested their judgement as to the most likely victors. The deal is not Betway’s first move in esports, as it already had a sponsorship deal with one of the teams that competed at the Cologne event, Ninjas in Pyjamas. Betway also became the first bookmaker to launch a bespoke esports microsite in 2015. Gambling has been a grey area for Valve Corporation has announced comprehensive changes to the way it hosts major esports tournaments for DOTA 2 (Valve Corporation) esports over the last couple of years, as unregulated bookmakers have taken bets on online competitions. However, Betway organisers, Valve will match the prize pool EVO 2017 taking place in Las Vegas in July. is strengthening the relationship between offering for both tiers, meaning purses EVO offers the chance for keen traditional betting companies and esports. Z are likely to exceed $300,000 and $1m competitive fighting players to battle for throughout the year. prize money and pride. However, looking at In another change, instead of Valve simply the year-on-year changes in the number of VALVE CASH WILL HELP TO EXPAND inviting the best teams to compete at their players signing up, it seems fewer gamers are DOTA 2 ESPORTS SCENE International event, they will start a points- being attracted to compete at EVO. Valve, the game developer behind gaming based system which will see players earn Data for EVO 2017 shows that player platform and marketplace Steam, is making ‘qualifying points’ based on how they place registrations for EVO 2017 dropped by nearly some comprehensive changes to the way it at major/minor events. 3,000 compared to last year. Street Fighter V hosts major esports tournaments for DOTA 2. Teams of five are ranked based on the took the main blow in registrations, dropping Valve offered more than $18m in prize total number of points accrued by their by nearly half from 5,100 to 2,600. money during each of the two stagings of three highest-scoring players. Those with the There are some new game titles The International DOTA 2 event in 2016 and most at the end of the season will qualify for entering the EVO 2017 list, which will set a 2017. However, starting in 2018, Valve will be the International 2018. Z benchmark when comparing to next year. sponsoring more third-party tournaments However, only one of the returning titles as a means of expanding the competitive from 2016 has seen an increase in sign-ups, ecosystem ahead of its own International EVO SEES FALL IN COMPETITIVE with EVO’s Tekken 7 tournament having major. FIGHTERS doubled in popularity. Valve will recognise both ‘major’ and The Evolution Championship Series (EVO) Should EVO be concerned? It’s unclear ‘minor’ events based on the prize pool is regarded as the biggest annual esports what is causing a significant drop in offering. Those offering over $150,000 will event focusing exclusively on fighting games, competitor numbers. However, titles like fit into the minor tier, whereas those with but its powers may be waning. Tekken 7 show that some fighting games are prize pools over $500,000 will be branded as The event features a range of different still generating interest. Data released next a major event. fighting games, including Street Fighter V, year will help build a better comparison of To show support for these third-party Tekken 7, Super Smash Bros and more, with EVO registrations. Z

08/09.17 : SportBusiness International 62 ESPORTS : CHALLENGES

TEETHING TROUBLES | FOUR CHALLENGES FACING THE ESPORTS SECTOR

• Publishers, the organisations that currently dominate the industry, need to embrace regulation • No rhyme or reason to the season calendar, which results in a “hodgepodge” of a calendar • Audience accustomed to getting things for free, and turning attention into revenue is not simple

Esports has grown phenomonally in recent years, but its popularity and success will be tested by a number of challenges (Kevin C. Cox/Getty Images)

BY RICHARD CLARKE while revenue was predicted to double from ‘owners’. In football Fifa runs the world $463m to $1.07bn. game, Uefa runs the European game and the t is the revolution that you will have to With a dip in TV audiences among major Football Association runs the English game. ask your kids about – esports is moving leagues like the EPL and NFL, plus the much- Yes, there are complications, grey areas and mainstream. heralded changes in media consumption by overlaps, but no monopoly. The same, albeit Of course, the gaming industry is millennials, the gap could be filled by gaming. simplistic, approach could be applied to any Iwell-established. It yielded $91bn (€80bn) in Watching as much as playing. number of sports. revenue last year, greater than the amount However, the growth of established sports Even ‘man-made’, derivative sports such brought in by the film and recorded music was hardly straightforward, owing much as Ultimate Fighting Championship (UFC) industries combined. to prevailing socio-economic factors of possess alternative competitions in which Esports, the competition side of the the time. Let’s take one example. The 3pm athletes may ply their trade and a regulatory industry, has been around since the early kick-off on Saturday, still so sacrosanct in body to retain some element of independent 1970s. It already has global stars; you just do English football, was originally established control. not know about them right now. But their for the convenience of the late 19th-century However, in esports the game publishers profile and earning potential is expected to factory worker. So what issues, tensions and have the power. sky-rocket in the next decade. peculiarities will shape the ascent of esports? Valve Corporation owns major game series The predictions are impressive. Last year such as DOTA and Counter-Strike. Likewise, Newzoo’s Global Growth report suggested F 1. REGULATION Riot Games governs every aspect of League of the esports audience would grow from 131 Traditional sports may have custodians, Legends. They can make wholesale changes to million to 190 million between 2016 and 2019, authorities and governing bodies, but not their title (including alterations that render

08/09.17 : SportBusiness International ESPORTS : CHALLENGES 63

“You are getting situations where players are shouting [at opponents] if they lose a game, or venting on Twitter. If a brand sees that, they are not going to want to work with that guy, so they need general advice as well”

MIKE CRADDOCK, FORMER ESPORTS PROFESSIONAL

the skillset of this year’s stars suddenly F 2. SCHEDULING There are stories of restrictive contracts or obsolete), control entry to tournaments or The release of the Premier League fixture no contracts at all. But, as Craddock points even decline to hold them at all. lists creates a flurry of activity each summer. out, the players sometimes do not help It is their ball, they made it, and they can However, clubs are at pains to point out that themselves. take it home with them. it is a draft and subject to change. Every few “You are getting situations where players Jonny Madill, a lawyer in the sport division months from then on, Sky and BT Sport are also shouting [at opponents] if they at legal services company Sheridans, argues choose their next set of live games. Only lose a game or a tournament, or venting on this is the primary reason why a fully- then is the schedule locked down. For major Twitter,” he says. “If a brand sees that, they fledged governing body has not emerged and tournaments, we will know the dates years in are not going to want to work with that guy, regulation has been so difficult to enforce. advance. so they actually need general advice as well.” “Really, esports is an umbrella term and, No such system exists in esports. Cooke recounted the story of an individual underneath it, there are dozens of game “At the moment we are in a situation where being sponsored by one energy drink, but titles,” he says. “So it’s impossible to have tournament organisers are trying to figure out consuming a can of their main rival’s brew one, or even multiple, governing bodies. what works best,” says Cooke. “It is difficult, during a live stream. “Publishers control the game’s IP. They because tournaments are online and global. “There is a real lack of media training,” he develop and market them, so they’re the most That is great for brands, but time zones are a goes on. “Take Manchester United’s youth critical stakeholders. In an ideal scenario you big issue [for organisers].” academy; their players are being trained in would probably have a situation whereby the That situation, plus the autonomy of what to say and what it means to deal with games publishers are the quasi-governing publishers, results in a hodgepodge of a sponsors. A lot of esports teams are not big bodies and they would govern all playing of the calendar in which major tournaments can enough to facilitate this yet. But it is one of game. In reality, however, that doesn’t happen. clash or are organised at late notice. the most important ways that esports needs “Publishers have different approaches - For example, this year’s Fifa Interactive to learn from traditional sports.” Riot have a very hands-on approach. Then World Cup is being billed as offering the you have Valve, who are very hands-off. That biggest prize pool in the game’s history. F 4. FURTHER MONETISATION creates challenges too. However, less than six weeks before kick-off The size and demographic of the esports “Of course, all traditional sports have had the ‘Road to London’ tagline was the only fanbase has been a major inducement for challenges when it comes to integrity; you only clue about the venue and the date was merely brands and rights-holders to start peering have to look at football, cricket and tennis for “in August.” quizzically at this strange new beast. obvious examples. They are just as prevalent But then esports tournaments may not However, turning Millennial and Gen C in esports – betting, match-fixing, in-game possess the same attraction that the biggest attention into revenue has never been easy. cheating, anti-doping or player exploitation. tournaments hold for players in traditional “As a young football fan growing up, can “I would probably put regulation, sports. Elite gamers can earn comparable you imagine having the ability to watch the governance and integrity at the top of the list revenue by demonstrating their skills to Premier League, FA Cup, World Cup, the in terms of challenges which will ultimately massive audiences each day on streaming Euros, Copa America, Bundesliga, La Liga dictate whether esports reaches its true platforms such as Twitch. This will often and Champions League all on one platform commercial potential. Yes, the commercial lead to a larger social media following as and on demand?” says Madill. “That is just growth has been huge [so far] but there is still well. There might be less potential for a unthinkable. a way to go.” career-changing payday, but this can provide “But the modern day esports fan has had A not-for-profit members association, the significant, sustainable income. the ability to stream [the best] content for Esports Integrity Coalition, was established free at any time via streaming platforms, with in 2015 to “deal with issues of common F 3. THE DEVELOPMENT OF PLAYERS Twitch being the obvious example. interest – in particular, the threat that match Young athletes have always been open to “So, yes, you might have this audience manipulation, betting fraud and other exploitation, but esports players can be consuming content. But it’s an audience that integrity challenges pose to esports.” unusually young and the nascent state of the isn’t used to being monetised, because it has “ESIC are doing a lot of good work,” says industry and the relative lack of regulation always had its content for free. Sam Cooke, editor eSports Insider. “The makes them particularly vulnerable. “Everyone talks about esports’ more support they get, the better. Former professional Mike Craddock demographic being so valuable and that’s “The publishers need to be more open, explains: “These kids need managers and why football clubs, for example, are getting particularly with the regulated betting representatives, ones that they can actually involved. But, actually, how do you monetise industry. But then they need to be embracing trust long-term and can look after their all the elements? That’s a real challenge.” regulation more generally.” business interests, social media and PR.” One of many, it would seem. Z

08/09.17 : SportBusiness International

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China : News

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

LAGARDÈRE TASKED WITH ACCELERATING F1 GROWTH Formula One has tasked the Lagardère Sports agency with raising its profile in China by identifying and securing partners in everything from event promotion and media rights to merchandising and racing team development. New owners Liberty Media have identified China as one of the sport’s key growth markets, with the possibility of a second Chinese race joining Shanghai on the calendar, as well as rumours about a Chinese- backed race team. However, with Shanghai still only marked as ‘provisional’ for 2018 – the year the Lagardère contract kicks in – it’s a crucial time for F1 in China, especially given that an extension to the Shanghai race has yet to be signed. But with the series criminally under- promoted in China during the Bernie Ferrari fans in the grandstand during the 2017 Formula One Grand Prix of China in Shanghai (Clive Mason/Getty Images) Ecclestone era, due to a combination of arrogance and ignorance, there is a real Era’ has perhaps been replaced by ‘das honour contractual obligations. Questions chance for Lagardère to make immediate and Goldenes Zeitalter’. Z are now being asked of Wanda, one of several significant progress. Z companies whose overseas acquisitions are being looked into by Chinese regulators. EVERTON SCORES WITH Owned by China’s richest man, Wang Jianlin, PRESIDENT’S VISIT STRENGTHENS CHINESE BANK FUNDS Wanda has spent heavily in sports over the LINKS WITH GERMAN SPORT Everton FC has signed an agreement with the past couple of years, but has now offloaded The love affair between China and Germany Industrial and Commercial Bank of China its hotel and tourism portfolio – including appears to be continuing – both on and off (ICBC), the world’s largest bank, which will the newly-opened Harbin Wanda City, the the pitch. With Chinese President Xi Jinping see the club receive a £60m (€68m/$77m) world’s biggest indoor ski resort – to rival singling out Germany as a global ally in an three-year credit facility. It’s been signed firm Sunac for $9.3bn. Z op-ed piece published in the run-up to the with the London branch of ICBC and will recent G20 summit, it’s perhaps no surprise reportedly allow the club to borrow funds that things are also growing closer in the at a “significantly reduced cost”. Everton TENCENT SLUMPS AS GAME football realm too. director Sasha Ryazantsev said the deal, RESTRICTIONS ARE INTRODUCED There are plans for China’s under-20 side which required approval from the Premier It’s been a mixed period for gaming giant to play in a regional fourth-tier division League, marks an important step for the club Tencent. Its Honour of Kings title has become in southwestern Germany, while 20-year- into the Chinese capital market, adding that the world’s top-earning mobile game, but old national team striker Zhang Yuning Everton hopes to develop further commercial new restrictions on playing time for younger recently joined Werder Bremen, enabling opportunities in China in the future. Z users saw the company lose $14bn in market the Bundesliga club to land a deal with Asian value, after a state media editorial called it a gaming site Heji18.com. “poison” that has been “ruining the lives” of Xi’s attendance at a youth football game WANDA’S SPORTING FUTURE players. in Germany alongside Angela Merkel QUESTIONED AFTER SALE OF RESORT On the positive side, following on from was given at least as much coverage back Financial pressures have been mounting in striking a five-year digital partnership with home as the loan of two pandas to Berlin China as certain companies are beginning to the French Open, Tencent has acquired Zoo – normally something that dominates feel the strain of overextending themselves. digital rights for the ongoing Wimbledon the news cycle. With Germany now The prime example is at LeEco, whose sports Championships. The streaming platform will positioned ahead of the UK as China’s major wing LeSports has lost a string of broadcast provide exclusive live digital coverage in China, footballing partner in Europe, ‘the Golden properties in recent months after failing to as well as films, highlights and other content. Z

08/09.17 : SportBusiness International RD 232017 SALLE DES ETOILES Sporting Club, Monte Carlo

TVSPORTSAWARDS.ORG CHINA : STATE INTERVENTION 69

THE STRATEGY BEHIND A SMILE

As the Chinese government seeks to control the overseas flow of its currency, Simon Chadwick, professor of sports enterprise at Salford University Manchester and founding co-director of the China Soccer Observatory at the University of Nottingham, looks at a history of government intervention in the creation of the country’s sports economy

Chinese President Xi Jinping and German Chancellor Angela Merkel at an under-12 football game in Berlin in July (Ronald Wittek/Getty Images)

hina’s President Xi Jinping was overseas club acquisitions. Go back to Xi’s come as a surprise; after all, its economy is on recently photographed at a football proclamation in November 2014, however, the cusp of becoming the world’s largest. This game in Germany with a smile on and it becomes clear that his ambition for means it has the wealth, as well as the ambition, his face. The normally ultra-stoic China is not simply to generate hype for the to establish itself as one of the world’s leading CXi was accompanied by Germany’s Angela gossip columns, nor even for the country to sports nations (both on the field and off it). Merkel, with whom he was watching a win football’s World Cup by 2050. Indeed, However, China is not ‘the US Mark II’, not children’s match staged between China and the vision for Chinese sport is a bold one: for least because Xi is head of state for the world’s Germany, which illustrated an increasingly the country’s domestic sport economy to be biggest centrally planned economy. close relationship between the two countries’ worth upwards of $850bn (€740bn) by 2025. One should be very careful not to refer to football authorities. current China as a communist country, that The openness and warmth of Xi’s Sport’s top table is unless you are in the company of Chinese emotions perhaps finally confirmed what had Xi is therefore not just a sports fan. He diehards who remember the ‘good old days’ started to seem like an almost mythological knows there are money, jobs and soft-power of the 1960s and 70s. Quite how one should love of football. Yet it could also have been influence to be garnered from sitting at the refer to the country’s prevailing economic the sign of a man keen to see that China’s global sports industry’s top table, alongside system is somewhat unclear, although its great football project is moving in the right the likes of the US and, indeed, Germany. No characterisation as state-led capitalism is direction, especially as its progress has wonder he was smiling that day in Berlin with perhaps most accurate. seemingly been under threat following more Frau Merkel. Fandom and finance is a potent, China does have a thriving private sector, than two years of excessively ostentatious compelling combination. demonstrated by the likes of large-scale foreign player signings and several China’s sporting ascendancy should hardly sports investors such as Wanda, Alibaba and

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Fosun. Admittedly, it is proving easier for “Sports organisations looking Wanda’s sport portfolio is more extensive, domestic Chinese companies to make the to China as a source of business as it owns Infront Sports and Media, the most of the country’s sporting equivalent Ironman triathlon series and a stake in of the great leap forward. Nevertheless, it will need to mitigate risk and Atletico Madrid. It has also signed a lucrative is possible too for overseas companies to sponsorship deal with Fifa and a naming rights succeed there – as adidas’ recent growth in have contingency plans in place contract with Atletico for its new stadium. China illustrates. ready to address any changes Meanwhile, Zhejiang Luosen led the eventual, For a company operating (or seeking to albeit rather protracted, takeover of AC Milan. operate) in China, however, it is important the state might impose” For Milan fans who probably saw new not to conceive of its sports industry as Chinese investment as a gateway back to having the same liberal, free-market ethos the club’s glory days of the past, or for Fifa as one commonly finds in Europe and North Consistent with such a narrative, this officials who have perhaps viewed China America. The state underpins, directs and, year the Chinese government has also as a revenue source that would add some dare one say it, controls everything in sport. repeatedly moved to control the overseas security and stability to the governing body’s Indeed, when the state speaks in China, flow of its currency. Faced with declining floundering finances, the country’s state people and organisations are advised to foreign exchange reserves, the state has interventions will be a concern, casting listen or otherwise face the consequences. warned businesses against making ‘irrational doubt upon the sustainability of Chinese overseas investments’, even threatening to investment in sport. Profound consequences name-and-shame those involved or to press The role of the state in China is not simply criminal charges against them. Sport has not Important lesson confined to light-touch interventions been immune to this. Yet the more important lesson for our designed to ensure that minimum While the strong arm of the Chinese state industry is that no matter how grand, how standards are maintained. Often, they has somewhat eased its pressure in this ambitious, how committed China might be are intrusive, extensive, non-negotiable regard over the last month or two, attention to the pursuit of its 2025 target for sport, and may have profound consequences. has now switched to businesses that have one can never be entirely sure whether the Moreover, government policy shifts are often built up unacceptable debt levels. This situation today will be the same in a month’s formulated swiftly, without consultation, has specifically targeted companies whose time, let alone in a year’s time. For those and frequently implemented without prior overseas growth has been built upon an keen either to enter the Chinese market or warning. For example, earlier this year accumulation of domestic debt. to develop an existing presence, what has two dramatic changes were imposed upon At the end of June the China Banking happened this year must be a concern. Chinese football, literally overnight: the Regulatory Commission requested information Rational economic thinking, strong move from a 4+1 to a 3+1 player rule, and the from financial institutions regarding loans business acumen and a vibrant creation of a new 100-per-cent player tax. made to Dalian Wanda Group Co., Anbang entrepreneurial spirit do still matter in Both measures were abruptly introduced Insurance Group Co., HNA Group Co., Fosun China. But these will always have to be and subsequently have been criticised by many International Inc. and investor Zhejiang set in the context of a highly politicised observers as being ill-thought-out. However, Luosen. In the case of Wanda, the company’s operating environment where the state they were devised to uphold Chinese national share price immediately fell, by as much as 11 dominates, dictates and can undo a well- interests: in the case of the 3+1 rule, to curb an per cent at one stage. crafted commercial strategy overnight. At influx of overseas players; for the player tax, At Fosun, the conglomerate’s chairman, best, sports organisations looking to China as to stem outward currency flows associated Guo Guangchang, was rumoured to have a source of business will need to mitigate risk with acquiring expensive overseas talent. disappeared. And not for the first time; in and have contingency plans in place ready to The affected football clubs had no choice late 2015 he temporarily disappeared from address any changes the state might impose. other than to comply, no matter what the public view, some people believing that he Trying to second-guess the black box that ramifications of these measures were for them. had been detained by the state following the is China’s government, though, will never be These two specific measures were telling, unacceptably rapid growth of his company. a precise science and whatever one decides both for their symbolism and as a measure Subsequently, Guo reappeared and Wanda today may ultimately (and often) prove to be of what troubles China. While most of the sold off more than $9bn worth of tourism wildly inaccurate. world gets to grips with Donald Trump’s assets, presumably an attempt to ward off the Perhaps we misinterpret Xi’s beaming ‘America first’ doctrine, Xi Jinping subtly advances of China’s instruments of the state. smile in Germany that day alongside Merkel. goes about his business of gently enforcing What is particularly troublesome about Maybe it was more enigmatic than joyous; his ‘China first’ alternative. The 3+1 and these latest developments is the way in which perhaps it is better to judge it that way too, 100-per-cent tax moves were entirely in they have exposed sport to the vagaries of because one can never be certain what is keeping with this, designed to ensure that China’s state. Fosun is most notably the owner going to happen next in a country whose Chinese football benefits from current of English football club Wolverhampton economic and political system remains so financial flows into the game, and not the Wanderers; it also owns a stake in Gestifute, alien to those in which many of us normally coffers of people from overseas. Jorge Mendes’ athlete representation business. live and operate. Z

08/09.17 : SportBusiness International HEADLINE PARTNER OFFICIAL PARTNERS 72 EVENT FOCUS : HOCKEY PRO LEAGUE

Events

STICK OR TWIST | NEW INTERNATIONAL LEAGUE TRANSFORMS THE HOCKEY CALENDAR

F Hockey Pro League to launch in 2019 with nine men’s and nine women’s teams – eight are currently confirmed F FIH optimistic of commercial success despite India’s withdrawal F FIH partners were part of Hockey Revolution ‘New Events Portfolio’ consultation

Matthew Swann of Australia in action during the FIH Men’s Hero Hockey Champions Trophy 2016 final (Joel Ford/Getty Images)

BY RORY SQUIRES which will serve as a qualifying route for middle of the year. The league is the flagship the 2020 summer Olympic Games in tournament in the FIH’s ‘New Events he Hockey Revolution is well and Tokyo. Each team will play eight matches Portfolio’, which is part of the ‘Hockey truly underway for the International at home and eight matches away between Revolution’ 10-year roadmap that was Hockey Federation (FIH), which has January and June every year before a Grand launched in 2014, with the aim of raising the become the latest sports governing Final, featuring the top four teams in both global status and popularity of the sport. Tbody to flesh out details of a significant tournaments, takes place within two weeks The FIH’s strategy for the league is calendar revamp. of the conclusion of the ‘regular season’. The underpinned by principles that were In June the FIH announced the winning team in each tournament will receive outlined in the New Events Portfolio. The participating teams in its new national team the single largest financial prize in the sport – current Hockey World League Round One competition, the Hockey Pro League, which although exact figures are yet to be disclosed. and Two events will be repositioned within will launch in January 2019. The southern hemisphere teams will the new calendar from 2018, forming a set With the FIH moving away from the host the northern hemisphere teams in of defined events that will eventually sit established Champions Trophy and World the earlier months of the year, before the alongside the Pro League, Hockey World League formats, nine men’s and nine roles are reversed as the weather improves Cup, Olympic Games and Olympic Games women’s teams will compete in the league, in the northern hemisphere towards the qualifying competition. With a goal of

08/09.17 : SportBusiness International EVENT FOCUS : HOCKEY PRO LEAGUE 73

“It’s built with TV in mind. The Hockey Pro League will leverage – and make the most of – one of our most providing extremely competitive and robust important, powerful and under-used assets: ‘The applications.” India’s lack of enthusiasm – for the time power of home’” being at least – would appear to be an anomaly. JASON MCCRACKEN, CHIEF EXECUTIVE, FIH The women’s Pro League is set to feature Argentina, Australia, China, England/Great Britain, Germany, Netherlands, New Zealand and the US, while the men’s teams have establishing ‘stand-out’ and ‘simple and purpose or meaning for local fans. In short, been confirmed as Argentina, Australia, meaningful’ events as part of a ‘predictable, they are simply not ‘fan-focused’ enough.” Belgium, England/Great Britain, Germany, regular calendar’, the FIH in December 2014, The league’s home-and-away format, the Netherlands, New Zealand and Pakistan, through its Event Portfolio Working Group, FIH believes, will provide a more partisan which will play its home matches in Scotland. started consulting with the sport’s various atmosphere and stoke up rivalries, all Teams that were not chosen for the stakeholders on the creation of the league. with the aim of providing a more engaging women’s tournament include Belgium, At the heart of the league concept is the spectacle. The Grand Final will then provide a Ireland, Italy, Japan and Spain, while Ireland, idea that, rather than staging 25 matches in fitting crescendo for the campaign. Malaysia and Spain were unsuccessful in a single destination, there will be 144 ‘home’ “It’s built with TV in mind,” McCracken applying for the men’s competition. matches, giving fans in various countries adds. “The Hockey Pro League will leverage The FIH distributed application considerably more opportunities to watch – and make the most of – one of our most documents to the top 16 men’s and women’s games. important, powerful and underused assets: teams in December last year. The quality of ‘The power of home’. each team was not the only consideration Most valuable asset “Home fixtures provide us with a chance in the final selections, with the potential to “It’s like taking our most valuable asset and to drive loyalty and passion. We see the generate more exposure for the sport and increasing it – overnight – by over 500 per evidence of this in other sports the world higher commercial revenues through hosting cent,” FIH chief executive Jason McCracken over and we see it for ourselves when home matches that are ‘big, bold, packed and loud’ tells SportBusiness International. teams are playing in our existing events. – a slogan that supports the league’s ethos – “Never in the history of hockey have “The impact is huge. With more spectators also important. we consulted so thoroughly with so many and more local fans, our events are people from different stakeholder groups and suddenly more attractive to broadcasters Long-term partnerships different backgrounds in different countries. and commercial partners, so we are able to The governing body also asked each We held meetings, workshops and conference generate more income. At the same time, we national association for detailed financial calls, presenting early drafts and many, many stop playing the matches that we know have modelling, projected budgets for home amended drafts – including concepts that minimal value.” and away matches, proposed marketing were completely discarded along the way. and commercial strategies, and evidence of We also undertook an extensive global brand Scheduling clash financial sustainability. research project, speaking to thousands of The league represents a radical shake-up of Interestingly, as part of the selection hockey and general sports fans from across a competition schedule that was felt to have process, the FIH also held discussions with the world.” run its course, but not everyone is on board. media companies in an attempt to gauge The process involved three years of Despite being selected for the men’s where the league could potentially strike up research and included input from more than and women’s competitions, Hockey fruitful, long-term partnerships. 600 individuals, including athletes, national India announced in July that it would not “Earlier this year, during the candidate associations, continental federations, participate in the league, with reports application phase, we visited broadcasters broadcasters, the International Olympic suggesting possible concerns over a around the world to establish the Committee (IOC), individuals at continental scheduling clash with the domestic Hockey strength of their relationship with their federation congresses, officials and umpires, India League. national association and their appetite FIH committee and panel members, and However, the FIH remains optimistic for covering the league,” McCracken says. other FIH staff. The governing body also despite the loss of the hockey powerhouse, “Conversations with all of them were invited external contractors in specialist areas with the governing body’s Event Portfolio extremely encouraging and it’s clear there’s including finance, law and commercial to Implementation Panel set to decide on the a strong appetite from broadcasters to show offer advice. next steps in the coming weeks. the Hockey Pro League, particularly in “We will continue such consultation once “Whilst we regret India’s decision to participating nations. the league begins, as it is the only way we withdraw, it was their decision and we respect “Many of those interested are already will stay relevant in what is a fast-moving that,” says McCracken, who adds that he broadcast partners for our current events. industry,” McCracken says. would “love to see India participate in the However, the success of their coverage is also “At present, too many of our events are Hockey Pro League in the future”, especially driving competition with other broadcasters planned without specific attention to the considering the country’s rich pedigree in their territory who are now looking to needs of TV, media and digital support. in the sport. “We had an oversubscribed obtain the rights for the Hockey Pro League. Too many of our events have no particular application process, with all of the candidates “Over the next couple of months we will be

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Continued from previous page... THE NATIONS THAT WILL COMPETE IN Extra: THE INAUGURAL HOCKEY PRO LEAGUE

going back into those territories to develop plans with broadcasters to ensure that this competition is covered globally for the first four years at a minimum.” The league certainly provides an intriguing proposition for platforms such as DAZN, the OTT service operated by digital sports media T Men and women company Perform, which in June acquired T Women only exclusive rights for events operated by the T Men only FIH in Austria, Germany and Switzerland through to the end of 2018. THE PARTICIPANTS: UNSUCCESSFUL APPLICATIONS IN INITIAL PROCESS: Huge appetite Men: Women: Argentina Argentina Men and women: “Our focus lies on the next FIH events, which Australia Australia Ireland, Spain are covered on DAZN within our current Belgium China partnership,” Kay Dammholz, DAZN’s Men only: England/Great Britain England/Great Britain managing director of rights and distribution, Malaysia Germany Germany tells SportBusiness International. Netherlands Netherlands Women only: “We see huge appetite for hockey in New Zealand New Zealand Belgium, Italy, Japan Germany, Austria and Switzerland, and Pakistan* USA obviously the success of national teams gives a massive boost. *Will play home matches in Scotland “Any event that creates excitement and offers high-quality action helps to grow hockey and we are excited to see a boost in developing hockey nations, from elite to more accessible for all, more engaging for interest in the sport following the launch of grassroots level. those involved and always looking to be as the Hockey Pro League, which we believe is a “Now that the teams have been confirmed, proactive and progressive as they can.” great addition to the hockey calendar. we are now taking this product to the market For McCracken, who underlines that “We are excited to be broadcasting the and from initial discussions with several such an approach is essential in the highly- world’s best hockey action to the fans right potential partners we are excited by the competitive industry, the league represents a now on DAZN and I’m sure we’ll talk about interest we are receiving.” significant change in strategy for a federation any further steps when the time is right.” Loughborough University is the FIH’s that is looking to the future. Participating teams are guaranteed a place global innovation partner, with the UK “We think that sports are now catering to in the competition for four years – a period institution’s School of Business and the needs of several different stakeholder of time in which, according to the Hindustan Economics having been a key contributor groups due to the fact that fans have more Times, there are hopes that the league will towards the Hockey Revolution strategic choice, not only in terms of what sport to generate commercial returns of $150m plan. follow, but also how to consume it,” he says. (€134m). “In the past, events were sport-focused, “With more opportunities to see their Real innovators ensuring that competitions were built heroes in action throughout the year, According to Brett Holland, Loughborough’s around the athletes at a time when spectator national teams’ followers are expected hockey programme coordinator, the new numbers were much higher. to grow,” McCracken adds. “This will not league represents “a fantastic opportunity.” “In a bid to stand out from the rest and only increase the commercial value of the He tells SportBusiness International: maintain interest in our sport, we need to sport through ticket sales, hospitality and “We were in the consultation at its first consider the many different ways to reach merchandising, but also commercial interest conception and believe it robustly aligns our audiences, ensuring that the needs of TV, in the teams and their athletes through with the Hockey Revolution’s ambition of media and digital support are catered for. increased sponsorship opportunities. growing the global game by presenting great, Athletes are and will always remain at the “It is predicted that the increased consistent televised international hockey core of our decision-making process, but we commercial potential of implementing the matches over a prolonged, but standardised need to monitor changing social patterns to new structure will generate considerably period. ensure our sport remains relevant to fans of more value for the sport, which will filter “The FIH are real innovators, constantly all ages, so that engagement and subsequent down into all levels, including new and looking to find opportunities to make hockey participation levels continue to increase.” Z

08/09.17 : SportBusiness International ATM ad 2017 SPG.pdf 1 17/7/17 10:59 am

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Venues & facilities

SIEMENS PARTNERS WITH BAYERN MUNICH German Bundesliga football club Bayern Munich has entered into a three-year partnership with Siemens. The conglomerate has been named as a performance partner of the club for the 2017-18 to 2019-20 seasons. Under the agreement, an increased number of Siemens technology systems will be fitted in and around Bayern’s Allianz Arena, and at the club’s Säbener Strasse training ground. The partnership also covers Bayern’s basketball team. The partnership will focus on software and cloud-based services relating to power engineering, building technology, safety and security technologies. Mobility solutions for local public transportation and traffic management systems will also form part of the association. Z

IOC REJECTS RIO REQUEST Bayern Munich’s Allianz Arena will benefit from the Bundesliga club’s partnership with Siemens (Getty Images) ON DEBT ASSISTANCE The International Olympic Committee services to optimise mobile networks and credibility” of the partnership. Veltins will (IOC) has refused to commit further funds transform connectivity at Croke Park. provide every fan with a free beer on the first to covering debts racked up by organisers of The GAA said that Ericsson has matchday of the 2017-18 season. Z the 2016 summer Olympic and Paralympic “implemented a framework for innovation” Games in Rio de Janeiro. to suit the body’s objectives. The framework The IOC said that it had “closed all its is said to complement the stadium’s LIVERPOOL OUTLINES obligations with the organising committee” sustainability and centre on maximising COMMONWEALTH GAMES PLAN after the executive board held a meeting outcomes for the GAA, Croke Park and the The English city of Liverpool has unveiled with Brazilian Olympic Committee president local community. Z a “transformational” plan for the 2022 Carlos Nuzman, who had asked for assistance Commonwealth Games that includes an in satisfying creditors who are still owed innovative aquatics facility, usage of Premier about R130m (€35m/$40m) following the SCHALKE EXTENDS STADIUM NAMING League football club Everton’s proposed new 2016 Games. RIGHTS WITH VELTINS stadium, and cricket and cycling to be staged The executive board said that it had German Bundesliga football club Schalke in Manchester. already contributed a “record” $1.53bn 04 has extended a naming-rights agreement Central to Liverpool’s bid to stage the Games towards the Games and said that “more for its stadium with the Veltins brewery and is the regeneration of the Bramley-Moore Dock detailed information” was required. The replaced long-serving kit partner Adidas with – located two miles north of the city centre IOC added that it “deferred any further rival sportswear manufacturer Umbro. – which would be home to Everton’s new consideration at this stage.” Z The Veltins deal will run for 10 years, stadium. The stadium is set to accommodate a through to 2027, while Umbro’s partnership temporary athletics track for the Games, which will begin in July 2018, although the length will be installed after the final home game of ERICSSON TO DRIVE INNOVATION of the agreement was not disclosed. As part the 2021-22 season and removed before the THROUGH GAA PARTNERSHIP of the naming-rights deal, Veltins will hold 2022-23 campaign kicks off. The Gaelic Athletic Association (GAA) has the pouring rights at the stadium until 2027. As part of Liverpool’s plan, which officials partnered with communications technology The Gelsenkirchen venue has been called the predict will accelerate £1bn (€1.13bn/$1.26bn) and services company Ericsson in a move Veltins Arena since 2005, with Veltins having of investment up to 10 years ahead of designed to enhance the fan experience at previously served as a principal club and schedule and create more than 12,000 jobs, Dublin’s Croke Park stadium. team sponsor from 1997. the city is also proposing to host swimming The three-year deal names Ericsson as Schalke director of marketing Alexander at a new 50m pool within the city centre dock the official technology partner of the GAA. Jobst said that the early renewal of the system. This facility would be scaled back Ericsson will provide the GAA with IT agreement highlighted the “durability and and remain in place after the Games. Z

08/09.17 : SportBusiness International VENUES AND FACILITIES : SAMSUNG SLIDER 77

ARMCHAIR FANS | RUGBY SPECTATORS TAKE A RIDE ON THE SAMSUNG SLIDER

F Manually-operated seat allows riders to follow the on-field action F Seat was first used at Australian rugby union game F Samsung used the Slider to promote a new TV range

The Samsung Slider, in action at Twickenham Stadium, offers fans a unique viewing opportunity at sports events (Samsung)

BY WILL MANN SAMSUNG SLIDER ON SOCIAL MEDIA experience. “Across the weekend of the HSBC London Sevens the Samsung Slider rmchair viewing has just taken on a was a tremendous success,” says Simon whole new meaning. Massie-Taylor, chief commercial officer of The Samsung Slider – part sofa, the Rugby Football Union (RFU). Slider ‘riders’ across the London Sevens weekend part miniature train – is a mobile 180 “It’s great to work with our partners to Aseating unit which moves up and down the bring new, innovative ways to enhance our pitchside at sporting events, reaching speeds fans’ experience and the Samsung Slider has of up to 20mph. On show at Twickenham proved that. We’re always looking at ways we mentions2,452 of #SamsungSlider on Twitter Stadium for the recent HSBC London Sevens, can enhance the experience rugby fans have it allows the fans on board to follow the when they attend Twickenham Stadium and fastest winger as he hares down the touchline the Samsung Slider is a prime example of a and hear the impact of every crunching partner coming to us and adding real value to of these were2,366 ‘Tweet your Seat’ entries to win tackle. a seat on the Slider the day in a unique way.” Promoted by England stars Joe The electronics giant became an RFU Launchbury and Jonathan Joseph in the partner in 2014 and its campaigns have build-up to the event, it provided 180 included the Samsung School of Rugby, lucky fans with the ultimate rugby viewing impressions across4.2m social media over the weekend featuring comedian Jack Whitehall and

08/09.17 : SportBusiness International 78 VENUES AND FACILITIES : SAMSUNG SLIDER

Continued from previous page... Extra: HOW THE SAMSUNG SLIDER WORKS

former England stars Martin Johnson, Lawrence Dallaglio and Jason Robinson, during the 2015 World Cup. The Slider is its latest innovation. “The concept came from our Australian team, which first used the Samsung Slider at an Australia v New Zealand Bledisloe Cup rugby union match in 2014,” explains Ben Blanco, head of sport and entertainment marketing at Samsung Electronics UK. “It gives fans a unique vantage point for sporting events. It’s something that has never been done before and we decided we wanted to run it in the UK.” The Samsung Slider was built using a and stops are gradual for obvious safety The Slider made its UK debut during the lightweight aluminium superstructure, reasons.” 2016 HSBC London Sevens and returned similar to that used for airliners. It is 5m All fans are buckled into the ‘racing car- this year. For both events the four-seater long and 1.73m wide and – at Twickenham style’ seats and each one has an emergency unit was at capacity for all 45 matches, – ran along an 80m custom-built track. button. There is also a 135-laser ‘safety giving fans an unprecedented pitchside view It is capable of reaching speeds up to curtain’, which immediately stops operations if of the action. 20mph. the track is breached during play, for example The Slider is powered by an electric winch if the ball falls onto it. Truly unique view and operated by a driver who is based on the The Slider can be raised or lowered on “The Slider is ideally suited to the fast- halfway line. the track, in the event that it blocks views of flowing style of rugby sevens and allows fans “The driver has two ‘spotters’ who sit spectators sat behind. “At Twickenham we to keep up with the end-to-end spectacle,” alongside him, anticipating where the play made 100 per cent sure that we wouldn’t says Blanco. “Also, because of the breaks will go and advising him when a change of impact on views or require the RFU to take between games, it is easy for us to get a new direction is required, to keep the fans on out seats,” explains Blanco. “If we’d needed to group of fans on board, allowing as many board alongside the action,” explains Blanco. reduce the number of fans who could come people as possible to experience the Slider “The driver also needs to make sure the starts in, it would have been counterproductive.” Z over the weekend. “We don’t allow broadcasters to use it because we want it to be a truly unique view exposure. “We took photos of every fan using it – some Premier League grounds, for for the people who ride on it – the best seat who used the Slider, which we tweeted and example, do not have enough space between in the house.” emailed to them,” says Blanco. “We had great the front row of seats and the touchline to Perhaps surprisingly, there is no admission social media take-up, with 2,500 mentions of accommodate the Slider. charge for the Slider – entry is for fans Samsung Slider on Twitter alone across the “Also, we don’t want it to be a niche who win competitions run by the RFU and weekend. experience for a select few people,” says Samsung. “The campaign is around our new HD Blanco. “Rugby sevens lends itself well, “We organised competitions across the Premium QLED TV range – the Slider is because we can change people over between weekend at Twickenham, such as ‘tweet your about providing a view never experienced games, allowing lots of fans to get a ride. It seat’, plus there was a Samsung experience before, so there is obvious synergy with the might work well with NFL, which obviously in the West Stand car park where we ran a QLED product message.” is hosted by Twickenham and Wembley, quiz,” explains Blanco. because of the stoppages in play. You can “Additionally, the Daily Telegraph ran Logistics considerations imagine the Slider tracking the movement of its own competition and the RFU used the Samsung is now keen to take the Slider – the running backs. Other options could be horse Slider to reward England fans. only one of its kind in the UK – to other racing or the pit lane at Formula One.” “That said, once people could see it in sporting events. Meanwhile, it’s become an established part operation, some fans came down to the “We have been approached by other of the sevens experience at Twickenham – ‘holding pen’, where fans wait before getting events, venues and rights-holders around the and may soon appear at other games at the on board, and offered us money to go on it! country,” says Blanco. stadium. The RFU’s Massie-Taylor says: “The But there is no revenue associated with this “Wembley Stadium has just had health HSBC London Sevens provides the perfect for either Samsung or the RFU – it’s all part and safety sign-off for the Slider, which platform for the Samsung Slider. We’re of our partnership.” is great. But there are safety and logistics looking forward to working with Samsung to The payback for Samsung is brand considerations for venues interested in see when we can use the Slider again.” Z

08/09.17 : SportBusiness International

77-78_slider.indd 78 26/07/2017 09:56 VENUES AND FACILITIES : CONCESSIONS 79

FAN-FIRST PRICING | WILL MERCEDES-BENZ STADIUM CHANGE THE FOOD-AND-BEVERAGE GAME?

The Mercedes-Benz Stadium will be one of the world’s great arenas when it opens later this year and, as Will Mann discovers, its concession prices should prove mouth-watering for fans

he spectacular halo screen is not the only eye-catching feature of Mercedes-Benz Stadium – so too is the food and beverage pricing. TFans of the Atlanta Falcons and Atlanta United FC will be able to buy a hot dog for just $2 (€1.80) and a 12 oz Bud Light for only $5, making the venue’s concessions among the cheapest in major league sport. And the prices apply for all events at the stadium. Mike Gomes, senior vice-president of fan experience, says its ‘fan-first’ pricing concept is the result of extensive research. “We’ve studied all aspects of the fan experience and food and beverage has historically scored poorly,” he explains. “The NFL surveys fans after every game at every stadium about game-day experience, on everything from ticketing to merchandising, and food and beverage is at the bottom. “Our message to fans is: ‘We hear you.’ So Mercedes-Benz Stadium we’re going to offer the same pricing they would expect in a local restaurant. This is about providing value, so fans recognise they quicker service overall. The self-service soda are being treated fairly.” dispensers will provide further gains.” ON THE MENU The pricing is in whole dollars. “It’s A selection of prices from the Speedier service strategy all about making it simpler and faster at Mercedes-Benz Stadium With such pricing, increased demand is transaction level,” Gomes says. “So most anticipated, so coupled with fan-first pricing prices we rounded down and a small number Fan favourites is a speedier service strategy. Mercedes-Benz were rounded up.” Classic hot dog $2 Stadium will have 65 per cent more points of Of course, this fan-centric approach begs one Pizza slice $3 sale in comparison with the Georgia Dome, important question – do the numbers stack up? Nachos $3 the Falcons’ former home. Restaurants will “We make money on every single item,” Waffle fries $3 include self-service soda dispensers. Beer, a Gomes says. “Some of it’s on the margin, but Classic cheeseburger $5 high transaction driver, will have over 1,200 this approach isn’t a loss leader. However, we Chicken tender basket $6 taps compared to just 30 at the Georgia Dome. don’t expect to see the same profit return as “Our food and beverage strategy could if we had used the same pricing model from Snacks not have been introduced after the stadium Georgia Dome.” Pretzel $2 was complete – it had to be planned in to the The menu also features premium items, design,” explains Gomes. “My background so supporters who want a fancier burger, for Popcorn $2 is Disney, which takes a holistic approach to instance, can pay $8. However, Gomes says it Peanuts $3 design of food and beverage outlets, looking is hard to predict how fans will behave. at all variables – price, speed of service, “We really don’t know whether they will Beverages production capacity, restaurant areas – and trade down for the $5 burger or pay more Regular Coca-Cola $2 we have used the same philosophy. for their favourite food items,” he says. Dasani bottled water $2 “Through better design and organisation “Our next step is execution, ratcheting out Souvenir Coca-Cola $4 we think we can take 11 seconds out of each operational improvements, and looking at 12 oz Bud Light $5 transaction, which provides 15-per-cent the analytics.” Z

08/09.17 : SportBusiness International 80 ROUND-UP

Conferences Erwin Soo Erwin

SPORTS MATTERS, SINGAPORE

When: 9-13 September Where: Ritz-Carlton, Singapore What: Asian event for connecting key players from the world of sport, music, digital, entertainment and marketing industries. Who: Speakers include Chase Carey, chairman and CEO Formula 1; Aaron LaBerge, president and chief technology officer, ESPN; Johnson Yeh, esports and special projects, Riot Games; and Tenniel Chu, vice chairman of the Mission Hills Group. Tickets & more info: http://www.allthatmatters.asia/main/

SPOBIS GAMING AND MEDIA, COLOGNE EASM CONFERENCE

When: 21 August When: 5-8 September Where: Koelnmesse, Cologne, Germany Where: Bern and Magglingen, Switzerland What: A B2B conference aimed at decision-makers from the esports industry, as well as the classic sports and media industries. What: The annual conference of the European Association for Sport Management Who: The event will feature presentations from Chris Rhodes, software engineer, YouTube; (EASM) is hosted by The Institute of Sport Olaf Coenen, vice president, European publishing, Electronic Arts; Ralf Reichert, CEO ESL. Science of the University of Bern and the European Broadcasting will be represented by its director of sports and business, Stefan Kuerten, while traditional sports will have a representation in the shape of Carsten Cramer, Swiss Federal Institute of Sport Magglingen. director of sales and marketing, Borussia Dortmund, and Alexander Jobst, chief marketing The sport management conference plays officer, FC Schalke 04. a key role in the development of sport management studies in Switzerland. Tickets & more info: www.spobis-media.de//en Who: Speakers include Professor Dr Denis

Oswald, CAS judge and IOC member; Professor Dr David Shilbury, Deakin Business SOCCEREX GLOBAL CONVENTION, MANCHESTER School, Deakin University, Australia; Professor Dr Tracy Taylor, University of When: 4-6 September Technology, Sydney, Australia. Where: Manchester Central Convention Complex Tickets & more info: http://easm2017.com/ What: The event is designed to bring together the leading buyers and suppliers from the world of football. Who: Speakers include Jacco Swart, CEO, Eredivisie; Russell Stopford, director of digital, FC Barcelona; Eddie Jones, head coach, England Rugby; Charlie Stillitano, founder, Relevent Sports; ESCON USA Shane Stafford, head of brand, BetVictor; Jerry Newman, sports partnerships lead, EMEA, Facebook; James Kirkham, head of Copa90. When: 13-14 September Tickets & more info: www.soccerex.com/events/global-convention-2017 Where: SLS Hotel, Beverly Hills, Los Angeles What: An esports conference which provides panel discussions and one-to-one networking opportunities. CALENDAR AUGUST-SEPTEMBER 2017 Who: The speaker line-up includes Robb Chiarini, senior manager, esports, Ubisoft; Date Event Location Website Steve Arhancet, co-CEO, Team Liquid; 21 August SPOBIS Gaming and Media Cologne www.spobis-media.de//en Sundance DiGiovanni, vice president brand

4-6 September Soccerex Manchester www.soccerex.com and content, Activision Blizzard; Manny Anekal, founder and CEO, The Next Level 5-8 September EASM Conference Bern & Magglingen http://easm2017.com and Versus Sports VS; Stephanie Harvey, 9-13 September Sports Matters, Asia Singapore www.allthatmatters.asia/main professional gamer and influencer.

13-14 September eSCon USA Los Angeles www.esports-conference.com Tickets & more info: http://www.esports- conference.com/

08/09.17 : SportBusiness International CONFERENCES & EVENTS 81

Out of office

THE STADIUM BUSINESS SUMMIT CROKE PARK, DUBLIN JUNE 22-23

1 2

1. Minnesota Vikings presented an exclusive insight into the move into U.S. Bank Stadium – the NFL franchise’s 3 stunning $1.12bn steel and glass, fixed-roof home. The Vikings delegation – including vice-president of partnership activation Tanya Dreesen (third left), executive vice-president and chief marketing officer Steve LaCroix (third right) and chief operating officer Kevin Warren (second right) – took home the Project of the Year Award.

2. Matthew Surabian, director of event booking, MetLife Stadium, US, received the coveted Venue of the Year Award from Adelaide Oval SMA chief executive Andrew Daniels (right).

3. Dan Schofield, director of venue operations at Manchester United (left), and Anthony Mundy, operations director, Lancashire County Cricket Club/ Emirates Old Trafford (right), offered a special debrief about the ‘One Love Manchester’ concert. The operational teams from both venues were recognised 4 5 for their efforts by taking home the Judges’ Choice Award.

4. The summit welcomed back one of its favourite speakers, Canadian Olympic Committee chief executive Chris Overholt, who explained how his organisation had embraced fans, data and partners to deliver the very best in fan engagement.

5. Delegates climbed the roof of Croke Park, which hosted the summit, on its Etihad Skyline Tour, offering incredible panoramic views. 6 6. Attendees packed out the conference sessions at Croke Park in Dublin.

08/09.17 : SportBusiness International 82 LEADERSHIP

Executive hacks

Louise Johnson is the managing director, EMEA, of the Fuse agency, part of the Omnicom media group. She tells Ben Cronin about her career in PR and sports sponsorship, and shares her strategies for managing her staff and her time

I STARTED WORKING IN PR there’s a lot going on. Today’s world has I was doing PR for Diageo Premium portfolio been massively changed by technology, such and lots of different hotels and luxury brands. as social media, mobile, analytics and the I did that for Aurelio PR for about two or cloud, which is obviously driving business three years. Someone called me about doing innovations. Over the last decade there’s a job for Vodafone in their group sponsorship been a huge amount of change in advertising team and I thought, goodness am I too young which has not really been seen, I think, to go in-house? since the internet and digital media went mainstream. It’s quite telling that when I DIDN’T ACTUALLY SET OUT TO GO we were at the Cannes Lions [advertising INTO SPORTS MARKETING festival], the event’s biggest advertisers I got the job and I was working in the group on display included Accenture, IBM and sponsorship PR team. At the time, they had Snapchat, which sponsored a massive Ferris their Ferrari sponsorship. Then we moved into wheel. I think that coupled with unexpected the title sponsorship of the McLaren Formula political outcomes over the last 12 months, One team and then, at the same time, it was people have said this is a real era of Manchester United. Then we moved out uncertainty. from Manchester United into the Champions League, so we worked on that globally across ...BUT UNCERTAINTY IS NOTHING NEW something like 20 markets. Then, also at a Thinking back to 2013 when the financial local UK level, we worked on the England and I learnt so much. Instead of being told markets collapsed, that was a time of huge cricket team, so they were amazing properties to look at new and broader and bigger upheaval and advertising spend did drop. to work with. It really was the crème de la partnerships, it was the reverse. It was really Omnicom, our parent company, have an crème of sports marketing at that time. looking at how we could come out of existing amazing university course in Boston which is contracts, how we could repurpose existing taught by Harvard Business professors. And I DON’T HAVE A CV NOW assets, but also looking at how we could make they were teaching that, actually, turbulence I wouldn’t know where to start. I think I’ve efficiencies with our budgets and our partners. is the new norm and we need to get used to always had really bad luck with recruitment it. Leadership is very much about leading consultants. They always try to take me to GORDON BROWN WAS OUR through that turbulence. a role that’s not what I wanted or just not STAKEHOLDER at the right level, which makes me sound He was very much dictating what RBS was I HAVE TO BE REALLY STRICT WITH terrible because I have a friend who’s a going to be doing within the sponsorship MYSELF AND CARVE OUT WHAT I CALL recruitment consultant. I don’t think you world and when we were going to come out MY ‘GOLDEN TIME’ always get jobs through people that you of certain properties. So that was interesting, If you are in the office, you will have people know, but that’s just been my personal having No.10 as your stakeholder. We also bombard you with questions, so it’s really experience. I prefer finding staff when we’re sat next to the PR team, so you could see important for me to make up that golden recruiting through people that we know as all the stories unravel across the first six time. This is to really focus on clients, the well, because you can obviously get a good months of the financial crisis. [There was] a agency’s vision and our people. It’s also to recommendation as you’re taking that risk. great camaraderie in the London team, but think about what I should really be focusing [it was] very different up in the Edinburgh on versus the smaller things. YOU CAN LEARN MORE FROM office. People had been there all their lives, THE BAD TIMES so they were very emotionally scarred by I THINK HOW YOU SHOW UP TO WORK I got approached to join RBS to work on their the whole process. You had to really adjust IS INCREDIBLY IMPORTANT marketing teams and move from PR and your management style to be very sensitive In spite of the morning you’ve had, whether communications to a broader marketing role. to people up in Edinburgh, who were very you’re late for work, or you’ve got a lot to The first day I joined RBS, news of the £20bn emotionally attached to the brand and what do, I think going in the office with your head (€23bn/$26bn) [government] bailout of the had happened. up high and being very calm is incredibly bank was announced. But my contract was important. I always walk around the office – I locked down, so I had to work there. I thought THERE’S A LOT OF TURBULENCE know it sounds really simple. Because I work it was going to be disastrous having gone into AROUND AT THE MOMENT... across six different teams in three different it at the worst time possible, but actually the The advertising world is undergoing a physical locations around London, it’s really first six months were incredibly interesting mammoth amount of change. Politically, important to be seen. Z

08/09.17 : SportBusiness International

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