Getting Back to Business SPORT COUNTS the COST and STEPS CAUTIOUSLY INTO an UNCERTAIN FUTURE

May 2020 Issue no. 261

www.sportbusiness.com

Getting back to business SPORT COUNTS THE COST AND STEPS CAUTIOUSLY INTO AN UNCERTAIN FUTURE

INSIDE THIS ISSUE

Ben Pincus on taking Football clubs NASCAR and NHL look to Traditional sports the commercial reins respond to their esports for engagement pivot to Twitch during at F1 communities in crisis and brand building lockdown

CONTENTS

May | Issue no. 261

17 27 30

44 61

Worldview Events

5 Sports are still trying to figure out what the ‘new normal’ 40 Abu Dhabi – providing light at the end of the tunnel? looks like 6 Human needs drive the desire to attend games again Business Development 7 The Australian business is a contact sport Ironman’s new investors will focus on content and 8 The virtual NFL Draft offers three lessons for the future 44 of post-Covid-19 sports events virtual racing to unlock value Esports Covid-19 48 Online gaming has boomed, but esports isn’t immune to 10 Is playing football behind closed doors always the best Covid-19 medicine? 52 NASCAR and NHL look to esports for engagement and 14 Pro Bull Riders get back in the saddle brand building 30 Football clubs respond to their communities in crisis 54 The NHL on the launch of its players-only esports 34 Tifosy CEO Fausto Zanetton on football clubs surviving competition the shutdown 48 Failure to insure against pandemic will catch out many Governance Asia-Pac sports properties 58 Global Athlete report criticises IOC revenue distribution Sponsorship to athletes

17 Ben Pincus on taking the commercial reins at F1 Marketing 21 Rugby Australia suffers in comparison to ascendant AFL brand 61 “Change is hard” – Los Angeles Rams refresh brand identity to mixed reception Media 27 Traditional sports pivot to Twitch during lockdown

@SportBusiness | www.sportbusiness.com 3 4 4

WORLDVIEW | LONDON I Sports arestilltryingto figureoutwhat Sports event – while pro bull riding and the UFC –while pro bullridingandtheUFC event back onthecourse –albeitinacharity bignameshave alsobeen some ofgolf’s Bundesliga, has returned withGermany’s steps towards resumption. Top football cancellations, sportistakingtentative wasdominated thenews when by normal willlooklike. is tryingto exactlywhatitsnew discover area ofhumanlifeandendeavour,other normal andsport,like more orlessevery new fact isthatweallfaceadifferent comeupshortasadefinition.The they labelforachangedworld, convenient Worldview |London www.sportbusiness.com | the ‘new normal’ lookslike Kevin Roberts, Editorial DirectorKevin Roberts, What we do know is that, after months isthat,after wedoknow What months But whilethosetwowords may bea have ‘ColdWar’ by been or‘Austerity’. eras normal’,justasprevious ‘new will cometo theterm bedefinedby inhistory t looksasthoughthisperiod @SportBusiness without the fans who provide its visual itsvisual without thefans whoprovide is comingbackbehind closeddoors, button. into action,itwillbelike pressing areset that, asthesportingmachinecranks back Andhewarnedusnot to level. expect likely fallto less-than-halftheexpected would globalsportsrevenues Covid-19, fellcasualtyto as more andmore events Two Circles, cited that, research showing Gareth Balch,chiefexecutivereport, of optimistic aboutthefuture. to appearsreason areturn,to there be on theroad andFormula 1alsolooking LaLiga to back gettheirrespective shows audiences. their TV have to liveevents bothdelivered feed Sport may becomingbackbutit But wemustberealistic. In arecent Leagueand plansforthePremier With [email protected] the biggestgrounds: Manchester United thosewith proportional impact feltby stadiums willcostmillions,with the That’s hardly surprisingasempty is“thebigscare at themoment”. revenue ofmatchday absence Association, chief executive oftheEuropean Club bleaker. arestart, thepicture lookseven prevents way.21 programme under Ifanything seasonandgetthe2020- the current cancomplete ifthey (€3.9bn/$4.2bn) even a combinedfigure intheregion of£3.5bn likely to costtop European footballclubs revenues. of overall issuchanimportantpart merchandising ontickets,spend F&B, hospitalityand backdrop andsoundtrack andwhose According to Charlie Marshall, According to CharlieMarshall, is research suggestsCovid-19 Other (Hannibal Hanschke/Pool via GettyImages) WORLDVIEW |LONDON stand to lose £140m and Arsenal £122m. and rugby, they have been eyeing up the It’s not just football of course – every potential of Italian football’s Serie A for a sport will suffer. Major League Baseball long-term rights deal. Editor stands to lose up to $600,000 for every And they are not alone. Blackstone is Ben Cronin game played behind closed doors and, also reportedly interested in Serie A, with [email protected] + 44 (0)20 7265 4232 when you consider clubs play 81 home the potential carrot of a cash injection Deputy Editor games in the regular season, that is one for clubs – many of which have already Adam Nelson hell of a hit. borrowed against projected TV revenues [email protected] + 44 (0)20 7265 4234 But at least clubs in the major football – as part of the package. US Editor leagues and top US sports do have There are others who may step up Eric Fisher significant media revenues which, one to invest in sport and, in doing so, help [email protected] assumes, will continue to roll-in so long clubs and others to ride out the current Senior Reporter and Analyst, Asia Kevin McCullagh as games continue to be played. crisis. But logic suggests they will only [email protected] That’s not true of many second- be interested in properties where future Head of Content or third-tier sports that rely almost contracted revenues are likely to be Richard Welbirg [email protected] entirely on their event-day revenues and significant and that they would, in any + 44 (0)20 7265 4233 associated sponsorships. They face a case, drive a hard bargain. This is now a Editorial Director genuine existential crisis and the sad fact buyers’ market. Kevin Roberts [email protected] is that not all are likely to survive. For those unlikely to ever be on the Sub-Editor These are the factors contributing radar of potential investors, the situation Suzanne Swaysland to a major cash crisis in sport. Media is made even worse by the near-certain [email protected] companies won’t pay for rights that devaluation of other assets – in particular, Senior Designer Alex Smith can’t be delivered, and lack of matchday players. The football transfer market is [email protected] revenue is hitting everybody. Add likely to look very different going forward Designer uncertainty over the appeal of television and those for whom transfer fees are Jacklin Kuneva coverage of sports behind closed doors factored into the P&L as a significant [email protected] Production and Distribution Manager and the potential impact on rights fees revenue stream are likely to be left Craig Young and the scale of the problem becomes floundering. [email protected] even more apparent. These are some of the key factors Commercial Director [email protected] The long and the short of it is that the shaping the new normal, but the truth is + 44 (0) 2072 654183 sports economy looks to be at its most that most of them are outside the control Subscription/Information Sales vulnerable right now. Clubs are naturally of the people who run the business of Scott Longhurst/Laurence Burton geared towards anticipated revenues, sport. The return of sport will be decided [email protected] which have simply dried up, while the not in the boardrooms of pro sports Head of Media Sales cost of keeping their businesses ticking leagues but by politicians with broader [email protected] + 44 (0) 2072 654182 over remain cripplingly high even when concerns and imperatives. players have agreed to take pay cuts. And in truth, it is only when the teams www.sportbusiness.com

In many cases there is a desperate need of scientists working night and day Published by: for an influx of cash, and we have already deliver a vaccine that the uncertainty SportBusiness, a division of SBG seen what appears to be an upturn in threatening to cripple sport will truly Companies Ltd, Park House, 116 Park Street, London, W1K 6AF private equity interest in new areas. come to an end. While CVC, for example, has a track We wish them every success in their T: +44 (0) 20 7265 4100 F: +44 (0) 20 7265 4220 record in sport with its interests in F1 work. Z Printed in the UK by Pensord Press www.pensord.co.uk The paper used within this publication has been sourced from a Chain-of-Custody-certified manufacturer, operating within international environmental standards such as ISO14001 and EMAS. This is to ensure sustainable sourcing of the raw materials, sustainable production and to minimise our carbon footprint.

SportBusiness Review is published monthly © SBG Companies Ltd 2019. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, or stored in any retrieval system of any nature without prior written permission, except for permitted fair dealing under the Copyright Designs and Patents Act 1988. Application for permission for use of copyright material including permission to reproduce extracts in other published works shall be made to the publishers. Full acknowledgement of author, publisher and source (Boris Streubel/Getty Images)) must be given. ISSN 1757-5346.

@SportBusiness | www.sportbusiness.com 5 6 WORLDVIEW | NEW YORK I www.sportbusiness.com | try to to andhow figure outif,when, industry executive asthey rightnow sports senior basically consumingevery casesspikeCovid-19 again? upward the publichealthcrisisbackslides and amid if anysortofprogress happening truly producedhappens again?What be sports, justasitisinmusic,ever to inherent deeply fan experience take? andcommunal Canthepowerful gamesagain?Inattend whatformwillit questions. willitbesafeforusto When ourstars. andcheer and arenas Somany that innate urgeto return to stadiums precisely thesameway to livesports. with regard to musiccanbeappliedin core humandesires Grohl outlines we needeachother.” are imperfect. And,mostimportant,that alone. Thatweare understood. Thatwe thatreassure usthatwearemoments not not achoice.We’re human.We need because wehave to,” Grohl writes. “It’s be ignored. in allhumanexistence andsimplycannot live musicare amongthemostpowerful hiatus andsays of the shared experiences return to thecurrent thestagefollowing performer, insistent Grohl remains ofa and roll, ASAP”. plate ofsweaty, ear-shredding, liverock what hecolourfullycalled“abigold for andhishunger pandemic, Covid-19 live musicinthefaceofongoing to attendgamesagain Worldview |New York Human needsdrivethedesire Eric Fisher, USEditor These are brutal queries, ones These are brutalqueries, are questionsthatcomewith But there and ofthesameconcepts Many thatwewilldoitagain, “I doknow andirrepressible anenergetic Ever discusses the uncertain future of discusses theuncertain Fighters frontman Dave Grohl Atlantic, veteran rock starandFoo insightfulessayn adeeply inThe @SportBusiness to resume games by competing without to competing without resume gamesby will soonseeka temporary workaround already has or either sports property challenging”. nation thatmake very, re-opening very inthisstate that persist andthis are conditions first mindset,andthere leagues “musthave asafety-first,health- GavinGovernor Newsom. Thesports until wehave avaccine,”saidCalifornia that’s filleduntilwehave immunity, the foreseeable future. away –andwillbefor from thevenues are stillmandatedthat rightnow to stay players, coaches, staff,andforthefans are literally lifeanddeath forinvolved media-rights dealcontemplates. They whatanytraditional labouror beyond just economicsurvivalinconditionsfar return to action.Andthestakes aren’t In the interim, nearly every major In theinterim, major nearlyevery “It’s difficult to imagine astadium [email protected] (Mike Kireev/Getty Images ) build back.”Z weexpectourbusinessto at thevenue, assurances onhealthand safety provide gather, socialise,andcelebrate. Andaswe Nation. “It’s intheDNA ofusto wantto executive ofTicketmaster Live parent, Rapino, andchief said Michael president term potential ofgloballiveevents,” feelingtoirreplaceable return. purchased seats,waitingforthe are stillholdingonto their previously avastmajorityoffans everywhere, economic pressure onhouseholds available now refund offers andgrowing also why despite allthe variousticket ourindustrypossible.It is powering all thosemulti-billion-dollardeals drive thebusiness,andultimately make andpassionthattruly that fanemotion sportsindustry,analytics-driven itis and heard, butcollectivelyfelt. thatwenotonlysawsomething better ofsomethingelse, reproductions like justseems fans inperson poor moon”, theideaofgameswithout distorted transmissions from the and sound[ing]like Neil Armstrong’s looking like “doorbell securityfootage and isolated state oflivemusicas characterised online-only thecurrent it isstillnotthesame.Just as Grohl atmosphere. noisetocrowd simulate anormal venue pumpinginfake andeven management, for broadcast productions andfacility creating safeworkpractices personnel, and medicalmonitoring ofinvolved and protocols, suchasregular testing arrive withallthehealthsafeguards Andthoseplans fans inattendance. “We are stillmotivated thelong- by And make nomistake, intoday’s even But forallthatwell-meaningeffort,

WORLDVIEW |SINGAPORE

Worldview | Singapore

Kevin McCullagh, Senior Analyst, Asia [email protected] The Australian business is a contact sport

here was a distinctively Australian headline in the Sydney Morning Herald’s sports business coverage recently: T“Peter V’Landys is becoming as pleasant as a nasal swab for AFL”. The bracing language and source material were characteristic of what is one of the most interesting and intense media environments surrounding a sports industry anywhere in the world. V’Landys chairs the Australian Rugby League Commission, which oversees the NRL. He has been jousting in the media with figures from the Australian Football League, who have criticised his ambitious restart plan for rugby league. ‘Nasal (Matt King/Getty Images) swab’ was a reference to the unpleasant method of testing for Covid-19. Eddie McGuire, president of AFL There is more than an echo today been the fatal blow to his short tenure. team the Collingwood Magpies of the abrasive, aggressive approach Not all of Australia’s sports had said: “The AFL wants to show of legendary mogul Kerry Packer as he organisations or executives engage social leadership, they don’t want leveraged sport to build his Australian readily with the media, of course. The to be out like the NRL spruiking [an media empire from the 1970s through Australian Football League’s central Australianism, meaning promoting or to the 1990s. Representatives of commercial organisation is one publicising] different ideas, we’re going major players in the sports and media example, largely shunning publicity. to be model citizens.” industries aren’t averse to tearing But, by and large, sports business Led by V’Landys, the NRL has been strips off one another in on-the-record media coverage and executive conduct champing at the bit to get back into interviews. in the rest of the world seems staid action. Even before the UFC’s Dana Elsewhere, sports media-rights by comparison, except perhaps in the White had a similar idea, the rugby negotiations are reported blow-by-blow colourful world of fight sports. And I am league competition was reported to in the national newspapers. Speculation sure most executives prefer it that way. be considering relocating en masse to a abounds about the commercial fortunes With no regular sport to cover, tropical island in an attempt to restart. of the major codes and teams. Political sports business coverage has ratcheted V’Landys invited opprobrium earlier in manoeuvres in sport’s corridors of up recently. As one Australian market the Covid-19 outbreak for suggesting, as power are laid bare. observer put it to me this week, “There the virus was taking hold, that the NRL Another major story in the market are 35 NRL journalists in Sydney with deserved a government bail-out. was the departure of Peter Wiggs as nothing else to write about”. The The outspoken ARLC chair was board director of Rugby Australia, after financial and organisational strain having none of McGuire’s criticism. little more than a month in the role. being placed on sports organisations “Those people (within the AFL) should The Australian carried a detailed report and their broadcast partners is creating really have been concentrating on their of an RA board meeting conducted on plenty of boardroom action. And lots own business and their own activities Zoom that presaged Wiggs’ departure. of it will be as energetically covered as without making ill-informed comments His colleagues rejected his demands for the on-field stuff usually is. Australian about something they know nothing a pick of a chief executive and one other sports industry-watchers could be in for about,” he told the Herald Sun. board member, in what seems to have a season of compelling content. Z

@SportBusiness | www.sportbusiness.com 7 8 INSIDE TRACK E The virtual NFL Draft offers three lessons for The virtual with praise forthe NFL,butdidthat making ithappen. form andgrateful towards theNFLfor delighted to have sportbackinsome positive, withfansandmediamembers The reaction wasoverwhelmingly to have somethingto consume. lightning rod forintense criticism. it virtuallycouldeasilyhave becomea the limited contactrequired to deliver to witheven goaheadwiththeevent at homedueto thedecision Covid-19, aboutstaying sensitivities the current NFL, wasthepublicreaction. Given raised $6.6m(€6.1m). that ran inparallel onsocialmedia NFL Draft-a-thon fundraising event across thethree-dayviewers event.The ever, drawing 55 inastaggering million ratings, thedraft wasthemost-watched NFL’s wildestdreams. In terms of the even wasasuccessbeyond Draft disaster? best-case, tedious, andworst-case, total callwouldbe onebigZoom essentially the streets ofNashville in2019to transitioning from 600,000fanson a key pick?Surely adraft thatwas wasabouttocommissioner announce the Wi-Fi woulddrop outjustasthe forget to unmute Surely themselves? curiosity. Surely someonewould Strategies, NFLdraft explainshowtheNFLmadeitsvirtual animmediatesuccess. marketingteamatHilland KnowltonJames Fenn,contentandpublishingstrategist andpartnership inthesports www.sportbusiness.com | the future of post-Covid-19 sports events events the futureof post-Covid-19 sports Inside track James Fenn, content andpublishing strategist, Hill andKnowlton Strategies My glowing wascertainly newsfeed But instead, delighted fanswere Perhaps mostimportantfor the Far from it. Instead thevirtualNFL a healthy doseofmorbid NFL’s included virtualDraft motivation to tune into the forabigNFLfan,theven @SportBusiness back to reality? Howto reference to bethereturn. How to transition post-Covid-19 shutdown, isgoing lookingtoany sportingevent, return for ofthebiggestchallenges One 1. Getthetone right the comingweeksandmonths? for asuccessfulreturn forsportover what doesittell usabouttheroadmap And pullitoff? didthey NFL. Sohow the liveevent. who mostlydidn’tfeelthesameaswith thanthoseagainst, muchstronger were against. Andthemessagesofsupport just20support ofthetransition versus 400peoplespoke insituation. Over positiveaboutthe almostentirely were about thetransition to virtualDraft of thedraft. Thosethatdidspeak have ofabacklashahead nervous been whowouldexample fortheorganisers a virtualevent. than beingdistracted thefactitwas by around thepicks,rathercommentary featured overwhelmingly conversation normalitfelt. wasishow Socialevent drafts. ofthetwoprevious thaneither higher waspositive,of thesocialconversation cent twoyears,and68per the previous compared tomore socialconversation team, ‘yes’. wasandemphatic the H+KStrategies andAnalytics Data The answer, basedonresearch from really reflect thewholeconversation? It was aresounding successforthe Smooth transition shouldbeaKPI successfultheAn illustration ofhow This year’sdraft received 25-per-cent an audience thatmayan audience little- know drafted andtelling theirstories to ofhopeforallNFL fans.a moment like and acelebration ofsportingtalent fightingthecoronavirus,others itfelt frontline healthcare workers and regular interludeswere to celebrate irresponsible. wasquestion thathostingtheevent helpedaddress anythat certainly Fauci’s credibility wasasmartmove community.the scientific Borrowing act ofdefiance,butwassupported by during alockdown wasn’taUFC-esque thathostingtheNFLDraftshowing NFL onthesideofscientists, incredibly smartway ofplacingthe a messageto NFL fans. It wasan response, onto thetelecast to send Fauci, thefaceofUSCovid-19 Goodell invited Anthony Dr scientist a much-neededescapefrom it. andalsodelivering pandemic, Covid-19 addressing thebalance between overcame. mostcertainly they A challenge was oneoftheNFL’s great challenges. crisis. aboutthe without makingeverything to stay home?To thecrisis, reference fanstoin place,encourage continue lockdowngiven ruleswilllikely still be ofnormality,back somesense butalso, Howtodisruption we’veseen? give ofdeathand level the horrendous The focuswasclearlyontheplayers From thatpointon,whilethere Roger NFLcommissioner Then The NFLstruckexactlytheright Striking therightbalanceandtone INSIDE TRACK to-nothing about them. There was a had a portable IT department camped able to trigger viral fan conversation, concerted effort to profile the human out in their front garden. It certainly when the world is dominated by interest stories of the players to serves as a lesson to the other major Covid-19? broaden the appeal of the draft. leagues: Solutions are possible with Well, luckily for the NFL, the By addressing Covid-19 in the right modern technology, if you are willing internet remains undefeated. Even in way, with the right voices, but then to pay for them. the face of a global pandemic. focusing on the distraction fans truly Such was the success, that coaches With a much more lo-fi approach to needed, the NFL certainly created a and general managers are already production, mostly characterised by model for how sports may begin to talking about how elements of the Zoom calls and live cameras in homes, communicate in a post-Covid-19 world. process can be repeated in future years. the draft still managed to produce The NFL has shown that technology a series of moments that got social 2. Trust the technology can support hosting events like this media talking. This was collectively the NFL’s biggest in remote locations, which potentially This success definitely speaks to fear going into the night. From coaches sets up big changes in the way sports what has been one of the great trends to general managers to broadcasters, operate, both in terms of big events of comms during the pandemic. High- everyone seemed to be most worried and the day-to-day operation. Whether production original content has been about the internet failing at an that holds post-Covid-19, remains to impossible to create, but fans are still opportune moment. be seen. enthusiastic to consume more raw, The ‘practice draft’ all teams took lo-fi content. As sport returns it is an part in earlier in the week didn’t do 3. You don’t need a big production important lesson for sports, brands and much to re-assure teams. It was, for a big viral impact marketers alike. according to some reports, a bit of a Every year, the NFL Draft is a tentpole In the midst of any significant global disaster. moment for the league. The NFL and its event, there is always a rush to say But when the virtual curtain lifted, teams invest a huge amount in original that ‘things have changed forever.’ everything went off without a hitch. programming and content, to capitalise Whether that will be the case for sport The huge amount of time and money on fan interest and keep the focus on events like the NFL Draft remains to invested by the NFL to ensure their IT the sport year-round. be seen. It may well be that in a few was on-point worked perfectly. With much of the US under stay-at- years it is back to a 600,000-fan live In retrospect, this was always going home orders, creating the usual high- extravaganza just as it was last year. to work out. The NFL is a billion-dollar quality companion content that the But if nothing else, the 2020 virtual industry which was always going to show contains was always going to be NFL Draft gave us a playbook for how throw huge resources at the issue – to tough. Would the draft be able to hold the first stages of the return of sporting the point where every team seemingly fan interest without it? Would it still be events could play out. Z

(NFL via Getty Images)

@SportBusiness | www.sportbusiness.com 9 10 COVID-19 B Callum McCarthy doors with matches played behind closed The GermanBundesliga is back on, www.sportbusiness.com | Polish isnoone- Ekstraklasa, there stadiathannotplayempty atall. play wouldmuchrather that they in are suchalargepartoftotal income ‘big five’leagues,television revenues than others. For mostclubsinEurope’s to getusedto it.” “We’reamong them: justgoingto have Football behindcloseddoorsmaysuit big leaguesbutnosolutionfortherest For clubsinleagueslike the usedto forsomeGetting itiseasier clichés to lastalifetime.Chief well-wornproduced enough matches have already ehind-closed-doors football @SportBusiness broadcast revenues will not work for leagues with smaller But playing matches without fans that, unlike leagueswithsignificant matchday income –to theextent are themost reliant onPremiership in Europe, clubsintheScottish large andmedium-sizedleagues rights payments from theleague. relies onmediawhich overwhelmingly suchasKorona revenue, overall Kielce, Warsaw; clubswithlower andsmaller matchday such asLegia revenue, television income, sponsorshipand Poznań; thosewithabalancebetween on matchday income,suchasLech clubsmore reliantvariation between isgreatsize-fits-all solution.There Then there is Scotland. Of allthe isScotland. Of there Then behind closed doors example, would be crippledbygames Clubs intheSPFL and Eredivisie, for the crisis. toparticularly vulnerable the effectsof ofweeks.bankrupt inamatter doors, mostclubswouldhave gone season behindclosedPremiership If theSPFLhaddecidedto finishthe positions basedonpoints-per-game. domestic footballseasonandawarding inabandoningtheProfessionnel France’sfollowed LiguedeFootball FootballProfessional League doors thannotall. more to play matches behindclosed broadcast deals,itwouldcostthem But even now,But even footballis Scottish Monday,On May 18,theScottish xxx ( xxxx) COVID-19 Disproportionately affected He continued: “Our monthly running It is simply that, as Cormack In their eighth annual Football Distress costs are about £1.2m and it’s only also said earlier this year: “No club, report, corporate insolvency consultants prudent to assume that, realistically, whatever their size, scale or level of Begbies Traynor said that “without there will be no football until July investment, can withstand a total lack much needed matchday revenues or perhaps, at the earliest.” of income over a period of anything Government support in the event that The prospect of football being played between three to six months.” isolation measures are extended into with fans looks unlikely for the remainder the 2020-21 season, it is believed most of 2020 and with the UK’s government The bigger they are, the harder Scottish clubs could face financial peril.” furlough scheme tapering from August they fall The report describes Scottish clubs to expiration in October, clubs like From the top of Scottish professional as being in a “financially-corrosive Aberdeen are now on the brink. football to its bottom, clubs will suffer limbo” with no roadmap for a return. This is not reflective of enormously from the crisis. But due to Aberdeen, one of Scotland’s biggest irresponsibility or poor business Scottish football’s unique economic clubs, will lose up to £6m across the practices on the part of Scottish circumstances, its biggest clubs would months of March, April, May, June and clubs. Last year’s Begbies Traynor be the most vulnerable should matches July, with no matchday, sponsorship report praised Scottish clubs for their be played behind closed doors. or television rights income expected prudence and suggested that less Celtic, Scotland’s richest club, during that period. reliance on broadcast income and a is largely reliant on income from Speaking in late March, Aberdeen focus on sustainability provided solid European participation and matchdays chairman Dave Cormack said: “Three foundations for clubs. to cover its wage bill, which is several weeks ago, we were in a healthy times larger than medium-sized top- financial position; free of external “No club, whatever their size, tier clubs like Aberdeen. After failing debt with £1.5m in the bank. We to reach the Uefa Champions League had expected income of about £1m can withstand a total lack group stages in 2018-19, the club’s from our four home league games of income over three to six matchday income accounted for over and the Scottish Cup semi-final and, half its overall revenue. potentially, £5m in season ticket sales, months.” In a financial year in which the club seasonal hospitality and new shirt sales Dave Cormack | chairman, Aberdeen FC fails to qualify, overall revenue stands coming in through mid-July.” at around £80m to £85m before player

(Scott Baxter/Getty Images)

@SportBusiness | www.sportbusiness.com 11 12 COVID-19 year ended Juneyear ended 30,2018. initsaccountsfor the revenue overall comprised 70 oftheclub’s cent per group stage,matchday revenue qualify fortheUefa Europa League In 2017-18, theclubdidnot when andsolidarity payments.prize money Rangers asitreceived £6.4minUefa costs stood at£34.5m. receipts andhospitalitywhileitsstaff income. Theclubearned£32mingate camefrom matchday revenue overall oftheclub’sIn cent 2018-19, 60per Celtic’s crosstown rivalsRangers. squad. without sellingmuchofitsfirst-team financialtrouble beinserious halfaseason,Celticwould for even matchday£87m. Without income in2018-19reached almostexpenses yearandtotal£60m per operational wage billisunderstood to beabout sales are factored in.Theclub’splayer www.sportbusiness.com | Eddy Lemaistre/Icon Sport viaGettyImages (Eddy Lemaistre/IconSport 2018-19 wasagoodseasonfor worseforThe situationiseven @SportBusiness )

“I’m afraid some insolvencies “I’m afraid someinsolvencies hit clubs.” amongthehardest-probably inevitable areI’m afraid thatsomeinsolvencies clubswillsurvive,and mostScottish we are lookingatadoomsday scenario played behindcloseddoors.” oftheseasonwastoremainder be especially ifitwasdecreed thatthe to escalatingfinancialproblems, makes vulnerable extremely them flight European clubs,whichalso reliant onticket sales ofallthetop- clubsare themostPremiership for Scotland,says: Scottish “Our atBegbiesTraynorpartner responsible the hardest-hit clubs.” Begbies Traynor are probably inevitable among are probably inevitable Ken Pattullo |regionalmanagingpartner, He Idon’tbelieve continues:“While Ken Pattullo,theregional managing from mediarights. £11.5m. Theclubearnedabout£109m incomewasroughlyits commercial matchday incomewas£8mwhile revenues. of overall clubs itaccountsforatinypercentage league clubsin2017-18, andforsmaller of total across all20Premier revenue accountedrevenue cent forjust14per one priorityforclubs. Matchday cent. activities accounted forabout27per commercialsponsorship andother whileand mediarightsrevenue, from broadcast incomederived overall 18, roughly 59 ofEnglishclubs’ cent per financial statisticsare available, 2017- closed doorsisthemostastute option. andItalySpain, Germany playing behind For thetop-tier leaguesinEngland, The bigleagues For Englishtop sixclubs,thestory For the2018financialyear, Watford’s thesedealsisthenumber-Servicing In thelastseasonforwhichcomplete COVID-19 This made it easier for the French government to overrule the Ligue de Football Professionnel and cancel all sporting events until September.

Case by case From a purely financial standpoint, clubs and leagues should only play behind closed doors if the income received from hosting matches behind closed doors exceeds the cost. There is no one-size-fits-all solution and in leagues like the Polish Ekstraklasa, where clubs’ economic circumstances vary significantly, no choice benefits a majority of clubs. In the Netherlands, playing behind closed doors isn’t an option for most (Scott Baxter/Getty Images) clubs. Overall matchday income in 2017-18 stood at €120m, while is slightly different, but the outcome by clubs in Serie A during the 2018 broadcast rights income stood at about remains the same. Manchester United financial year came from media rights, €100m as Ajax failed to reach either the will be the most-affected by a loss of compared to just 12 per cent from Champions League or Europa League. matchday and other stadium-related matchday income. Without significant government revenue, earning £111m from gate In France, however, overall revenue support, it is unlikely the Eredivisie receipts and hospitality in the 2019 is much lower. While the proportions will return in empty stadia. financial year. mirror their top-tier counterparts – an Behind closed doors matches However, the club earned £241.2m average 47 per cent of total income is are not a panacea for the impact of from media rights across domestic and from media rights and just 11 per cent Covid-19, nor are they always better European competitions, meaning that from matchday – clubs in the lower half than not playing at all. Whether they whether a Premier League club earns of the league are likely to earn between choose to play on in empty stadia or £100m or £5m from matchday, playing €20m to €25m from media rights mothball operations, clubs in Scotland, games behind closed doors is the best revenue over the course of a season. the Netherlands, Portugal, Poland option. For club like FC Nantes or RC and many other non-big-five leagues The story across mainland European Strasbourg Alsace, which average around will have to seek support – from leagues is slightly different as the 25,000 fans per home match, matchday private equity, venture capital and/or media rights distribution is less income is a much greater consideration. government – to survive. Z equitable. In the Premier League, the top club usually receives just over a third more than the bottom club. In the German Bundesliga, which returned to behind-closed-doors action on May 16, the disparity between Bayern Munich, the top media rights earner from the domestic league in 2017-18, and the lowest-earning club, RB Leipzig, was about 3.5:1. Overall media rights revenues in the Bundesliga are lower than in the Premier League, but attendances are higher on average. Despite this, overall media rights income makes up roughly 39 per cent of German clubs’ overall revenue, while matchday revenues are just 17 per cent due to much lower ticket prices. The situation is similar in Italy, where 58 per cent of all revenue earned (Mark Runnacles/Getty Images)

@SportBusiness | www.sportbusiness.com 13 14 COVID-19 – EVENTS P Bob Williams event in rural Oklahoma after makingCovid-19 comeback at test case PBR provides important www.sportbusiness.com | 25-26. on April inGuthrie,Oklahoma, Arena scheduled forLasVegas attheLazyE thatwasoriginally the Beastevent itstagedanUnleashcrisis when comeback duringtheongoinghealth organisations intheUSto make a one ofthefirstprofessional sports pandemic. the United States amidtheCovid-19 resumption oflivesportsthroughout to play ahighlysignificantrole inthe How Professional BullRiders hashelped pave thewayfor thereturnof USsports With theUltimateWith Fighting The bull-ridingcircuit became in rural Oklahoma ispoised in rural Oklahoma competition inasmalltown successful return to rofessional BullRiders’ @SportBusiness own live-action returns been incontactforadviceabout their organisations have Around 15 sports health issues were reportedhealth issueswere afterwards. officials forreview. Most importantly, no toplan thatwasgiven localandstate This involveda29-pageactionand safety related protocols hadto beobserved. strict andever-changing coronavirus- a logisticaltriumphdespite thefactthat backafterevent afive-weekhiatuswas the coronavirus crisis. wouldlookandfeelduring attendance sports competitionwithoutfansin toE Arena amajor seeexactlyhow May 17, ontheLazy were manyeyes its comebackinSouthCarolina on Florida onMay 9 and Nascar planning with PBR–having scheduledareturn in Endeavor portfolioofholdingsalong Championship –whichispartofthe PBR chiefexecutive SeanGleason It was aresounding success. PBR’s first challenge, says CEO Sean Gleason almost daily basis was biggest Adapting preparation plans onan and quickly. andso wasabletoevents nimbly move a comparatively smallstaffto puton met. Finally, thetouring PBRrequires social-distancing guidelinesto beeasily spanning hundreds ofacres, to for allow andRanchLazy EArena isexpansive, coronavirus Secondly, pandemic. the restrictions putinplacebecauseofthe of thefirststates to easemovement be onthePBRschedule,becameone Firstly, to whichhappens Oklahoma, to actionforthree principalreasons. questions. anyfurther information andanswered willingly shared healthandsafety organisations, withwhomhehas approximately 15sportsleagues and contacted been has subsequently by PBR made a relatively speedy return PBR madearelatively speedyreturn ( Bull Stock Media) COVID-19 – EVENTS – COVID-19 For the two-day “Las Vegas cent from the event in Little Rock, about half of our potential revenues from Invitational”, all PBR participants had respectively. On Instagram, the sport every event. to be medically cleared to enter the generated 5.6 million impressions Lazy E Arena and Ranch grounds, which compared to Little Rock’s 3.3 million, and What does it mean for PBR to be included a Centers for Disease Control 1.1 million video views compared to Little back, and to be one of the first sports and Prevention (CDC) questionnaire Rock’s 613,000. organisations to make a live return and temperature check. They were also TV ratings on CBS Sports Network amid the pandemic? given daily health assessments. “were up many double digits over Anybody that knows me knows that The participants comprised 41 previous broadcasts”, according to I’m not somebody that seeks out the professional riders, local stock Gleason. spotlight. What I’m very thankful for contractors, medical staff, TV crews, and PBR now plans to have staged further is the fact that as the leader of the PBR staff, which represented around Unleash the Beast events at the Lazy PBR, there is an entire industry that is 140 people in total. Everyone drove to E Arena on May 9-10 and May 16-17. dependent on our income and our events the venue, avoiding air travel and public The schedule beyond that has yet to be for their income, and to be able to get transportation. The Oklahoman reported revealed, though it is hoped that PBR my people back to work, that’s what I’m that eight bull riders scheduled to take will be able to put on events outside of most proud of. part had to be replaced because they Oklahoma and ultimately with fans in were from states on Oklahoma Governor attendance. How did the event at the Lazy E Arena Kevin Stitt’s travel ban. Gleason spoke to SportBusiness Review go? The participants were then not about the opportunities and challenges It was phenomenal. It was different for allowed to leave until the event of being a first-mover in the live-action sure because of the lack of fans. But by concluded. This included sleeping in return from the coronavirus and what Sunday the bullriders had found their recreational vehicles on site, while Lazy E the comeback means for the wider sports way and it was a great bullring event, a staff provided food and basic necessities industry in the US. great sporting event. Everyone was in for everyone in the grounds. good spirits, we all came in healthy and During the weekend, working groups How would you describe the effects left healthy and that is what’s important of fewer than 10 people were created of the Covid-19 shutdown on PBR? in these times. and they did not have close contact What has the impact been? with the other groups. Members of each It’s been monumental. As a live-event What were the biggest challenges in group wore color-coded wristbands for and television business, we’re very putting the event on? identification purposes. dependent on conducting events in front The biggest challenges were the changes In addition, all surfaces were regularly of our fans and when you don’t have the that happened from day to day, literally sanitised, as were all food and other ability do to that, it effectively takes away through the entire process. You would supplies entering the grounds, and all participants were required to wear face masks. The event was broadcast on CBS Sports Network and streaming service RidePass, with robotic cameras being used in part to allow for a skeleton-crew production. Even though the grandstands were empty, which inevitably diluted the atmosphere, the event was well received by PBR supporters, with a surge in fan interest on social media and on television. Total social media impressions were 12.3 million, up 86 per cent over the most recent event held March 7-8 in Little Rock, Arkansas, before mass- gathering restrictions were put in place. Total video views were 2.09 million, up 78 per cent. On Facebook, PBR generated 6 million total impressions and 929,000 video views during the weekend, (Bull Stock Media) increases of 100 per cent and 79 per

@SportBusiness | www.sportbusiness.com 15 16 COVID-19 – EVENTS www.sportbusiness.com | been intouch withyouabouthow organisations Have any othersports very, difficult. very was justthedailychangesthat made it strategy forkeeping peoplesafeandit well-crafteda very andthought-out wehad thetimewegotthere So by that required thatwechangedtheplan. circumstance thatcamealongevery forward toa planaswemoved address and whatwe’re facing. learnedmore aboutthevirus everyone procedures as or justcommon-sense orders CDC guidelinesorGovernor’s something hadchangedinterms ofthe thenextmorning in themorningandby plan foronesetofguidanceandreality The biggest challenge wasadaptingThe biggestchallenge @SportBusiness conduct the events with few people, so people,so withfew conduct theevents individual sport in bullriding, we can becausewehavewere uniquely avery be thefirstone[back].Ifeelthat we return to normal. with. We definitely wantto seeallsports incontact professionals thatwe’vebeen put peopleincontactwiththemedical protocols.aspects ofitandcertain Ialso calls to questions aboutcertain answer willingly, ofthem, everyone andtook the challenges. Ishared theplanwith wanted justadviceandcounselfor that workinthesportsbusiness. They leaguesandorganisations 15 other contactedI’ve been approximately by they wantto know? you puttheevent on,andwhatdid I feelfortunate ableto thatwewere ( ( Bull Stock Media) Bull Stock Media) July. Z expect thatto potentially in happen thanlaterof fansmuchsooner andwe that wecangetbackto infront events We’re withhopes workingdiligently strategy location. inadifferent perhaps asimilar people workingandemploy for June andJuly thatwillkeep our 17. We have plansintheworks several weekend ofMay May 9-10andthen 16- We’re buckingbullsagainonthe going forward? What isyourplannedschedule forward. as wemove thosethings we’re improving that now things. We sofocused onsafety were logistical andother mealtimes andprep peopleand quality ofthefoodweserved and more qualityoflifeissues,like the to address are non-safety-related issues are importantforsafety.we believe protocols ofcertain enforcement that Nonetheless, we’re goingto increase our environment. do thisitbecomesasafer coronavirus decreases. timewe Soevery testing negative butbeingpositivefor of somebodybeingasymptomatic and as youcontinueto test, thelikelihood tests onthegrounds and foreveryone we’ll have results from twoindependent going to let our though guard even down protocol not standpointweare certainly mostly smalldetails. From asafetyand We are thingsbutthey learnedafew E Arena? change forthenextevent attheLazy Is thereanythingyouareplanningto turn. at every we’ve shared informationandresources We’re allpart of thesamefamilyso as webothworkto getbackto business. day other daily orevery formanyweeks incontactwiththeUFCeither I’ve been come backsoon? whichisalsoplanningtoproperty, contact withUFC,anotherEndeavor Have youspecificallybeeninclose interested.leagues whowere any informationwecouldwiththeother consistent,efforts are very soweshared protocols andprocedures, sanitation distancing andfunctionalgroups, testing to workfirst. Theprinciplesofsocial back we hadmanyadvantagesingetting Some ofthebigthingsthatwehave

Giving agencies, brands & rights-holders true added value through sponsorship deal data, activation campaign case studies and daily news

THE SPONSORSHIP PACKAGE

ACTIVATION CASE STUDIES DATA SNAPSHOTS KEY DEAL STORIES

Each of our case studies takes an Each month, we publish a data We deliver deeper coverage of the activation campaign and sets out snapshot of a key sponsorship market. most important sponsorship deals, objectives, details what was involved These bring you benchmark values on uncovering deal values, durations, and reports the outcomes. We every single deal in the rights-holder inventories, activation plans and publish 24 case studies every month. portfolios & written insights helping all-important context. you understand these markets.

DEALS DATABASE ACTIVATIONS CASEBOOKS DAILY NEWS

Our deal database makes it easy Four times a year, we round up the Subscribers will receive the to extract what you need from our most innovative activations examined SportBusiness 24 news service – historic data. Its updated daily and in our case studies into definitive four daily emails stuffed with sport already has data on 26,000+ deals! best practice casebooks. business news from our London, New York and Singapore offices.

Request a demonstration at: sportbusiness.com/sponsorship Email: [email protected] or call: + 44 (0) 2072 654100 17 SPONSORSHIP F Matthew Glendinning www.sportbusiness.com | to Pincus,formerly boot–isBen – andfacingthe impactofCovid-19 do business? Ecclestone’s shouldit iron grip–how MediaLiberty after yearsofBernie to owners styleofnew themore liberal internal combustion engine? turningawaya worldslowly from the competitors? does itstandforin What thetechnologyor showcasing ofits Entering F1atthiscriticaljuncture And –withstakeholders stilladjusting goal beentertaining itsfans examination. Shoulditsprimary yearsinexistentialfew self- thepast ormula 1hasspent @SportBusiness global partners with clearremitto addnew takes F1commercial reins Ex-Heineken execPincus a brand-side take ontheorganisation’s worked withF1since2016,Pincus has CAASports. agency wastheresult ofF1’ssales understands, so farandthat,SportBusinessReview tenure Liberty’s – hassignedupunder Aramco, theworld’sbiggestoilcompany of theowners. could notmeetthesalesexpectations three years. ButjustoneGlobalpartner package creation to therole inhis brought aflexibilityinterms ofrights from Murraypartnerships who Barnett, of sponsorshipandcommercial sponsorship director at Heineken. Switching from abrand thathas Just oneGlobalPartner –Saudi Pincus takes thedirector over enabled the brand toenabled activate inways upthesportand opened Liberty how frankly, too goodto turndown.” thatwas, anddeveloping delivering and theopportunityto beapartof platformforbrands 1 asacommercial brands. Ihave ahugebeliefinFormula stages,withvariousdifferent different involvedinFormulabeen 1atvarious side,”Pincussays.on theclient “I’ve sideandmore recently on theagency world ofthesportsmarketing, largely transition” anda“hugeopportunity”. absolutely, asa“logical seeingthe move importantly, inthesport hebelieves andweaknesses.strength Perhaps as At Heineken, Pincussaw first-hand thelast20-oddyearsin “I’ve spent Mark Thompson/Getty Images) (Mark Thompson/Getty SPONSORSHIP digital media and licensing] a couple of days ago and reminding him that he’s achieved in three years what most rights-holders have managed to achieve in 10. If you look at F1’s digital offering today versus our competitive set, I think we’ve achieved a huge amount and are on a par, if not better, in most areas than our competitors.” In other areas he brings an agenda of change. His priorities are to develop the sport’s sustainability credentials and build out its fan data sets. On the latter point, he says the sport only holds information on a relatively “It’s easy to move toward small percentage of fans versus the overall universe. performance and innovation “One of my priorities with the because it’s natural territory digital team is to start to build those in a conversation. It’s a data relationships from one of a basic understanding and contextualisation bit harder to explain the to be able to offer brands a better worldliness story, the understanding of our fanbase, right the aspirational story, the way through to the ability to transact. “We are doing some work at the premium, but these are also moment around what the commercial key to F1’s value proposition.” requirements of brands are likely to be in the next three years, five years and Ben Pincus | director of sponsorship and commercial partnerships, F1 10 years from a sponsor perspective, from a licensing perspective and from a broadcast perspective, and my anticipation is that proximity to New business one-click purchase is going to become In practice, Pincus aims to build a incredibly important.” systematic approach to generating new If that indicates that F1 will focus sponsorship business. While the sales on improving as a proposition for B2C team gets a fair amount of inbound sales brands, Pincus says he does not expect interest – he says the sport receives one (Mark Thompson/Getty Images) that group to become more important or two enquiries a week – outbound than the series’ B2B core. The tension connections are key. between entertainment and technology “We are looking at what categories we they were not able to do in the past. will remain evenly balanced. can genuinely build a robust business “The way Bernie ran the business “I don’t think you can just be a pure case against. Then, we’re going into was relatively easy to manage because entertainment proposition; you have those categories and looking at brands it was quite controlled: what you to have very solid foundations and you that fit our values – having identified were able to do was limited, but you have to have an authenticity, a purpose primary values, which brands within did it very well. Conversely, working for your existence. I don’t think it’s one those categories can we genuinely do with Liberty presented a whole set or the other, I think ultimately one feeds something for? – then looking at what of opportunities but also different the other. set of rights we can offer against that challenges.“ “For me, Formula 1 represents five robust business case. values. It’s worldly, aspirational and “It is quite a process, to be honest, Change of agenda premium, and it’s about innovation and and frankly I’ve applied my own Pincus takes over with some areas performance. It’s easy to move towards experience of being on the receiving of the business on the right track, performance and innovation because it’s end of it [at Heineken] to know the particularly digital content and social natural territory in a conversation. It’s difference between a good inbound media. “In terms of digital rights, a bit harder to explain the worldliness conversation versus a clunky, waste-of- this is something that’s opened up story, the aspirational story, the time conversation. “ massively,” he says. “I was talking premium, but these are also key to its Barnett took a bespoke approach to to Frank Arthofer [F1’s global head, value proposition.” generating new business, often with

@SportBusiness | www.sportbusiness.com 18 19 SPONSORSHIP sectors – and bring in a third new brand sectors brand –andbring inathird new electronics andconsumer IT services –heistargetingbrands inthe partners assets. He wantsto addtwomore global portfolio basedmore strongly onglobal confirmed. region istheonlysuchdeal the Asia sponsors. Thus far, 188Bet’sdealfor to regional upto betting different seven intends to sellonthesponsorshiprights Interregional SportsGroup, which with sponsorship rightspartnership the sport’sfirstglobaldataandbetting level. in atglobalpartner potentially tech bringother companies designation,leavingProvider’ room to Learning CloudandMachine ‘Official years from mid-2018to 2022,carriesthe Mercedes AMG. Petronas,Services, LiquiMoly and including oneswithAmazonWeb secondary globalorregional deals, Aramco, wasaugmentedand now by Heineken, Rolex, DHL,Pirelli, Emirates tier,partner whichcomprisesdealswith regionally- packagedrights. Theglobal www.sportbusiness.com | (Francois Nel/GettyImages In comparison, Pincus envisages a In a comparison,Pincusenvisages watch,Under Barnett’s F1alsostruck The AWS four-and-a-half deal,over ) @SportBusiness beyond, whether it has been seatbelts, ithasbeen whether beyond, 70 inautomotive yearsinnovating and Formulaengine. thelast 1hasspent and cleanfuelforthecombustion ultimately wantto anefficient develop toseries generate content. ability forsponsorsto withthe engage image andattributes ofF1andthe assets like on-coursesignage, butthe sponsors isnotjustbrand visibility explaining thatwhatF1canoffer value proposition around thesedeals, brands.” ofaboutfive tier asupplier and then our Knightsbridgereal estate level, visibility assetsbutnotnecessarilyon brands with ofseven a secondtier want to frame itlike that. We envisage our ‘Knightsbridgereal estate’, ifyou with eightglobalbrands whichget gaping holes,andI’dlike to up end electronics are two and consumer maximum nine.We ITservices believe partners. We weneedeight, believe payment orcredit card provider. services inventoryat alesser mostlikely level, a The Aramco dealfitsthisbrief. “They Pincus alsowantsto changethe “We have currently sixglobal differently.” Z it’sforcing usto how perspective, think aswellbusiness being perspective allfacing,that wewere from ahuman “It’s challenge amazingintheCovid-19 solutions inthesport,Pincusconcludes: that canbringinspiringinnovative its positionasamarketing platform. andenhance competitive pointofview and helptransform thesportfrom a changes willbeamilestone moment within thebudgetcapframework. regulations – thenew 2022 cars–under in theoryberequired to their develop come into force asplanned.Teams will that relates to –will carperformance expenditure (€160.5m) –whichcovers next year. Thebudgetcapof$175m financialregulation for introduce new Despite F1will theimpact ofCovid-19, Future-gazing partnership.”better andyoucouldn’tpicka of innovation utilities inhospitals. We sitinaworld through to telemetry thatmanage monocoques, hybrid technology Covid-19 isamajorobstaclebutone Covid-19 thattheregulation Pincus believes SPONSORSHIP Rugby Australia suffers in comparison to ascendant AFL brand

Matthew Glendinning looks at the recent commercial fortunes of the AFL and Rugby Australia, and how sponsorship revenues and the Covid-19 pandemic have affected the properties.

(Dan Mullan/Getty Images)

Matthew Glendinning Australia, however, recent seasons have Modern Art, and a club sponsorship with seen Rugby Australia’s total shrink, while the Sydney Swans AFL team. ponsorship revenues attached the AFL continues to grow. Qantas is understood to have agreed to two of Australia’s four The AFL’s sponsorship rights comprise a 40-per-cent discount for its team main sporting properties its men’s and women’s leagues – the AFL naming rights and main shirt rights to are on divergent paths this and AFLW. the Wallabies and Wallaroos (excluding Sseason, according to new research by Rugby Australia is responsible for the women’s sevens team) for the next SportBusiness Review. rights related to the national men’s and two seasons. Extensive research into the Australia women’s rugby union teams, including Less valuable Rugby Australia deals market this year puts the Australian sevens rugby, and the Australia territory with strong brands like Dove Men+Care Football League’s total sponsorship rights to Super League rugby, as well as and Falken Tyres also lapsed at the end revenue at between A$56.8m the national women’s league (Super W) of 2019. (€32.9m/$35.8m) and A$61.6m per year in and other national competitions. The AFL also lost some sponsors at 2020, and Rugby Australia at A$17.5m per SportBusiness Review estimates that the end of 2019, notably a A$2m-per-year year, highlighting a widening of the gap Rugby Australia had already lost almost deal with confectionary brand Mars and between the two properties. A$5m in sponsorship revenue last year, a sub-A$1m-per-year deal with sports Cricket Australia and the National before the Covid-19 pandemic struck, drink Gatorade, but won new business Rugby League generated about A$49.1m based on the exit of banking group from Australian supermarket Coles, and A$47.3m respectively, according to HSBC, a decreased fee from Australian worth about A$3m per year, and replaced the research. airline Qantas and other non-renewals. Gatorade with the Coca-Cola-owned HSBC quit its A$1.5m-per-year Rugby rival Powerade. Winners and losers Australia deal as part of a strategic The extension of its main naming The AFL has always posted higher switch to cultural properties like Opera rights deal with Toyota, signed in March sponsorship revenues than Rugby Australia and the Queensland Gallery of 2019 and worth, on average, A$18.5m

@SportBusiness | www.sportbusiness.com 21 22 SPONSORSHIP thought Folau punished too hasbeen Australia’s approach andthosewho thosewhoagreed with Rugby between December. foraboutA$8m in reportedly settled unfair dismissalclaim.RugbyAustralia but took RugbyAustralia to courtto inan team forhomophobicsocialmediaposts Cup year. Folau wasbannedfrom the duringthe2019Rugby Worldfederation deal. and thefailure to broadcast sealanew dispute player withformer Israel Folau, relative to thedamaging eras, other but thefailure ofthenationalteam Australia basednot onlyonitsfinances, the instabilityatcore ofRugby Castle hassinceresigned, highlighting Bad publicity clustef***”, quoting asource intheroom. the Australian mediaasa“corporate Australia staffwaswidelyreported in term lay-offs atameetingwithRugby crisis, Castle’shandlingoftheshort- for hisstatesman-like approach to the a 50-per-cent reduction inpay. took months from April1.Castleherself staff [about75] forthree standing down three-quarters body’s ofthegoverning announced similarmeasures, with cent.least of20per executive wouldtake level apay cutofat 30tomonths from March May 31.The offull-timestafffortwo cent 80 per around that theAFLwouldstanddown Covid-19. laudedforhisresponse to has been Gillon McLachlan, intherole since2014, public perception. intermsagain comingoutbetter of of bothorganisations,buttheAFLis unprecedented pressure onthefinances hasput pandemic The Covid-19 Executive stress of $27.9m inits2019annualreport. whiletheAFLrecordedMarch, asurplus a lossofA$9.4mfor2019atitsAGM in this year. fiveyears,alsokicked yearover per in www.sportbusiness.com | The incident divided the nation dividedthenation The incident The Folau dispute doggedthe McLachlanWhile wascomplemented Rugby Australia’s Raelene Castle measures, heannounced Among other At chiefexecutive theAFL’s level, Rugby Australia Overall, announced @SportBusiness “The AFL is such a successful institution “The AFLissuchasuccessfulinstitution girls’ football. and inwomen’s continued rapid growth the largelyby 1.65 millionin2018,driven of Aussie Rules, participationwasabout than 70,000 playing at alllevels sevens, 34,000 inschools2018,andmore 81,000 peopleplaying inclubs, rugby The AFLtricklesupfrom thegrassroots.” from theWallabies. trickledown benefits rugby, “With as follows: believed they difficulties.recent strategiesdevelopment thatpredate fortunes canbeexplainedto differing incommercial that thedivergence inAustraliarights-holders have indicated Interviews and agencies withnumerous Grassroots objectives. compliance withtheAFL’s rulesand setuptoan AFLdepartment ensure sponsorshipdealscrutinisedby every todown withcontracts for clublevel, thesport’ssponsorshipactivity over not seekpublicity. ofthebusinessworldwhodo experience figures withwider is secretive andledby approach, sayscommercial onesource, avoided years. inrecent Its controversy among Australian sportsto have Folau banned. hadnotbeen unlikely wouldhave if Qantas renewed harshly to placate sponsors. It ishighly : The source told SportBusinessReview Although Rugby Australia reported source summarisedthis agency One The AFLalsohascomplete control In contrast, theAFLisarare case become atorrent oncemore. Z from theWallabiestrickle down can tournaments, hopethatthe offering under-18s teams have wonmajor Australian andAustralian Schoolboys the championships, andinsevens, the finalofWorld under-20s squads. getinthesenior they managed, when internationals andunder-20s are ofschoolboy thenextgeneration how terms oftrophy wins. “quintessential Australian in moments” theteamwhen itselfisnotproviding promotion ofitsstarplayers inanera body’slackof critical ofthegoverning level. at every to associate withthevaluesofsport to create agreater opportunityforbrands to address thegrassroots partly problem, Melbourne.” west ofSydney, and orinQueensland programmes haven’t rolled out been islands to programmes. runasfeeder takes from the[Pacific] youngboys to theprivate schoolsystem, whichalso closetoeven theAFL. pick-up unionisnot –andinthis,rugby involved, father, mother, drop-off and familynetworksare because entire reason grassroots issoimportant wide mixofincomegroups –andthe because itisbuiltaround fansfrom a In 2019,theJunior Wallabies made Sources say itwillbeinteresting to see Marketing however, agencies, are also It isunderstood RugbyAustralia plans “This worksto anextent, butjunior RugbyAustralia,“With left it’sbeen (Mark Metcalfe/AFLPhotos/via GettyImages) Quito - Ecuador

Mumbai - India FIFA Master ranked Europe’s No.1 course a record 7 times by SportBusiness

CAS/DAS in Sports Law

- 200 120 Looking for unique business talent - - - - to join your team after the crisis? + 4000+ Contact us now One of a kind in Switzerland Launched in 2017 www.cies.ch James Kitching, Director of Football Regulatory at FIFA ADVERTISING FEATURE and FIFA Master Alumnus The Australian-Italian James Kitching recently joined FIFA as its new Director of the dispute resolution mechanisms of FIFA and Football Regulatory. He graduated from the FIFA Master in 2012, and one could say FIBA. As part of our research, the project team that his career in sports career skyrocketed since then. interviewed several individuals in the field. Coincidentally, one day before my graduation He started working in sports at 21, when he was elected to the Executive Board ceremony, one of those interviewees called and of the amateur football club for which he played. A year later, he was elected offered me a one-month consulting contract to Secretary. “In total, I spent 4.5 years working with the Executive Board, managing assist the Asian Football Confederation with some club affairs (as a volunteer). During this period, our first team played in the first governance matters. One month turned into just or second amateur division - at the time the fourth or fifth level of the Australian over five years with the AFC in Kuala Lumpur. football pyramid. Simultaneously, I was finishing a bachelor of laws, having already completed a bachelor of international relations”, he recalls. What is your job like, as Director of Football Regulatory at FIFA? After working for a few years in legal practice in Australia, James began exploring Challenging! I have a very broad mandate. The subdivision has 5 departments, the possibility of moving into sport. “Opportunities in Australia were limited. I was approximately 70 staff, and several consultants. No 2 days for me are the same – not an ex-professional athlete nor did I live in Melbourne or Sydney, so my network and this is only after the first 4 months in the job. was limited”, he explains. He continues: “I began to explore the other ways to break The subdivision is responsible for, in effect, all aspects of the transfer system. In into sport. I researched several international and national postgraduate degrees, short, this means: transfer regulations, the dispute resolution system, sporting and the FIFA Master was a clear winner”. nationality, relationships with professional football stakeholders, and compliance with the transfer regulations. We are also responsible for implementing 2 ambitious Right after graduating from the FIFA Master, James started working at the Asian modernisation projects – the FIFA Clearing House, and the (re)regulation of football Football Confederation, in Kuala Lumpur, Malaysia. After five years, he decided to agents by FIFA. leave the Confederation to go back to his native Australia and start Kitching Sports, I am extremely lucky to have inherited 5 department heads who are young, dynamic, a consultancy specialising in international sports regulation and governance. The and actively engaged in football. business ultimately grew to five full-time employees and several contractors, and worked with some of the leading football associations and clubs in the region. “We What is the thing that you love about your job? had made significant achievements in our first two years, and I had no intention of The thing I love most is the ability to drive real, tangible modernisation in the transfer closing the business” he says. “However, when I received the proverbial ‘godfather system and its associated parts. Small changes have already had a significant impact. Quito - Ecuador offer’ from the current Chief Legal Officer of FIFA, Emilio Garcia Silvero, I knew that was an opportunity to make a difference in world football – leading the How important was the FIFA Master for your career? modernisation of the transfer system and FIFA’s football regulatory framework - that The FIFA Master opened the door to my first opportunity in the international sports I could not ignore”. Here is more of the interview with James Kitching: industry, which ultimately ballooned and led me to the position that I am in today. The primary benefit of the FIFA Master was (and still is) access to the amazing How did you get your first job after the FIFA Master? network – not just of alumni - but also of professors, academics, and others directly My FIFA Master thesis analysed international sports labour disputes, and particularly and indirectly associated with the course.

CIES - Centre International d’Etude du Sport, avenue DuPeyrou 1, 2000 Neuchâtel, Switzerland - Phone +41 (0) 32 718 39 00 - Email [email protected] Mumbai - India FIFA Master ranked Europe’s No.1 course a record 7 times by SportBusiness

CAS/DAS in Sports Law

- 200 120 Looking for unique business talent - - - - to join your team after the crisis? + 4000+ Contact us now One of a kind in Switzerland Launched in 2017 www.cies.ch GETTY IMAGES In association with GETTY

(Jeff J Mitchell/Getty Images)

The power of visuals in the era of pandemic: how sport stories can continue to be told By Ken Mainardis, senior vice-president, global head of content, Getty Images

t has been almost two months of familiar events, is the toughest but fill the gap which live events have since much of the world went into most rewarding assignment in sports left. Luckily, our photographers are lockdown. In a non-Covid world, photography. consummate storytellers who care about our sports team at Getty Images A team must be close to rise to such sport and, whatever the circumstances, Iwould be getting ready to head out to challenges and the cancellation of are guaranteed to find creative ways of Tokyo now, packing up the final pieces sporting events is felt on an emotional capturing engaging content. I particularly of equipment and preparing to cover the level – more than just on a business level love the way they have connected with biggest sporting event of the year. We – by such tight-knit groups. athletes the world over to show how have been the official photographer to As they say though, necessity is the sporting professionals have adapted to the International Olympic Committee mother of invention. Whilst many training in isolation. Last month, using since 1988, and covering the Games is professional sports events are still social distancing measures of course, we always a highlight the team look forward on hold, the need for leagues, clubs, followed the Team GB rowers as they to, its biggest challenge during the brands, and individual athletes to exercised in their homes. Images of the sporting calendar. The sheer scale, the remain connected and engaged with athletes working out on their balconies, responsibility to capture the sporting their audience is as important as ever. creating a make-shift gym in their living moments where history is made and to New and different forms of content rooms or rowing in their back gardens. continue to innovate new perspectives are needed for our customers to help Not just in the UK, but globally, we have

TWITTER@SportBusiness | www.sportbusiness.com 25 In association with GETTYIn association IMAGES (Lars Baron/Getty Images) (Warren Little/Getty Images)

(Naomi Baker/Getty Images) (Dan Mullan/Getty Images)

been capturing the creative ways athletes such as ‘Sports Icons Before They are training. From fencers duelling Were Famous’ or the Game Changers, with makeshift puppets to triathletes celebrating the very best athletes, have swimming in paddling pools and cross- proved to be hugely successful. fit athletes working out virtually. Ultimately, there can be no substitute What has also become apparent as for the adrenaline rush of watching a this crisis unfolds, is the important role live match unfold. The shared passion – which history plays. Increasingly we and connection which rooting for your are seeing people turning to the past favourite player brings – generates a in order to feel more connected to the Ken Mainardis, senior vice-president, global head of special investment in professional sport. content, Getty Images present. Many brands are looking to For the 25 years we have been the past to remind fans of their long- inspiration and creativity to tell a variety delivering sports coverage, I know, for term relationship too, in the same of tales. Whilst so many annual sporting our photographers, there is nothing way that luxury brands are dialling up fixtures may have dropped off the which can replace the feeling of their heritage. You only have to scroll calendar, we can rely on history, via the capturing that defining moment – the through social media in order to see archive, to continue telling their story. goal, reaction, trophy lift – when history the ‘look backs’ and ‘best of’ content Curated sets such as celebrities who shifts on its axis. The action-packed being shared, as individuals reminisce have attended Wimbledon provide a games are replaced by a waiting game, on happier times. We are proud to have different way of keeping the tournament as we wait for sports administrators our archive at our fingertips, which has current and front-of-mind. The unique the world over to find ways of bringing over 130 million images, and amongst situation we find ourselves in has pro sport back as quickly, safely, and them a wealth of sports stories. Our incentivised us to be even more creative creatively as possible. And until that teams of editors have been busy digging in how we service our customers and happens, we will continue to deliver through files, packaging up content in find unique visual stories to help them fresh, engaging, visual content to keep order to provide our customers with the connect with their audience. Content sport front-of-mind for all. Z

26 www.sportbusiness.com | TWITTER@SportBusiness MEDIA Twitch’s interactivity proves popular with traditional sports during shutdown

Platform was already stepping up work Interactivity provides a crucial fan Twitch’s traditionally esports-oriented in traditional sports, providing alternate engagement tool during sport’s audience helps rights-holders reach coverage for the likes of the NFL shutdown new demographics

Adam Nelson Google’s YouTube Gaming set its sights gaming and esports platform, but they on Twitch’s esports crown. In the past don’t think of themselves as exclusively mazon-owned streaming few weeks alone, Twitch has secured about those things – they think of service Twitch built its media-rights deals with Brazil’s National themselves as a live streaming platform reputation as a home for Basketball League, the US’s National where interactivity is the key part of the esports and video gaming Women’s Soccer League, and Spanish experience. Right now, they’re seeing a Acommunities, but its prominence as football giants Real Madrid. massive influx of enquiries from clubs a platform for traditional sports is in particular. growing as it looks to widen its appeal Engagement in lockdown “What clubs are now understanding further still. While Twitch’s change in strategy long is that if you use the platform capability The expansion began in 2018, when pre-dates sport’s Covid-19 inflicted of Twitch – not just as a place to Amazon acquired rights to show the shutdown, recent events have conspired view esports content but to do live NFL’s Thursday Night Football, and to make the platform’s central conceit programming with people in multiple chose to use Twitch to distribute an – real-time live interactivity between locations, involving your fanbase – it can alternate stream, with content creators a content creator and their audience – offer far greater engagement than putting on the platform invited to provide their highly desirable. a video on Twitter and inviting them to own commentary and interact with “It comes at an opportune time watch. The analogy is, if the business their audience during the games via the for them as a platform”, says Charlie world is now really understanding service’s live chat functionality. A deal Beall, consulting partner at digital the capabilities of Zoom and Google to show multiple weekly NBA G League agency Seven League, which works Hangouts, then sport is just realising the games in the same way quickly followed. with Twitch. “Twitch has for some potential of tools like Twitch.” The drive to expand has stepped time been exploring how it develops For sports rights-holders, the appeal up since, with added urgency since into traditional sports. It’s known as a is clear. Twitch’s reported average

@SportBusiness | www.sportbusiness.com 27 28 MEDIA that were doingworkouts,that were wehad musical acts,wehadsomeathletes typesofcontentof different –wehad abunch called Streamaid, showcasing theweekenddid abigcampaignover adds. that,”Brunner encourage “Butwe a lotofpeople,whichisgreat andwe range ofcontenta muchwider types. are applicableacross video games,they forstreaming developed were offers thetoolsmight bein.While Twitch communities”, whatever fieldthey ofinteractive thedevelopment enable can ourservices are setupandhow strategy “isto ourproducts lookathow thatthewider SportBusiness Review atTwitch,partnerships tells Twitch users. community-created content among adesire for demonstrating service, NFL-related videoconsumedonthe “creators” of cent –madeup50per is, content generated theplatform’s by streaming andreaction content” –that year. ontheprevious cent per of34 of10.8million,growth audience acumulative fixtures attracting withthe10featured weekly views, York Jets –notched 1.2millionvideo Baltimore Ravens clashwiththeNew Football gamelastseason–the a gateway. types ofcontent, often usinggamingas from esportstothat audience other track record oftransitioning a proven andTwitch audience, engaged itselfhas platform. Thisisayoungandhighly hours aday consumingcontent onthe to anaverage spend ofcloseto two are said ageis21,whileitsusers user www.sportbusiness.com | fromJohn Legendlivestreams aperformance hishomeduring Twitch’s ( Streamaidbenefitconcert “Gaming may be thatfirststep for Eric Brunner, headofsports Crucially, whatTwitch calls “co- The mostpopularThursday Night @SportBusiness “Some smaller rights-holders rights-holders “Some smaller valuable inthelong-term aswell. something butremains important now and that’ssomethingespecially to yourfansandcommunity, thatsocialvalidation that itprovides interaction. That’sthereally funpart, from thatbenefits live experience for historical content –anykindof the abilityforathletes to beinvolved, actually much bigger than that. You have gaming canbetheirfirststep in,butit’s our creators, too. that It them shows platform canhost. fortherange ofcontentshowcase the inlockdown,while they’re butalsoasa give somethingbackto ouraudience a fantasticopportunityfirstlyto just homes.games, allfrom theirown It was athletes playing andgamers video partnerships, Twitchpartnerships, through smart deployment of through smartdeployment have been abletotake have been archive and other content” archive andother advantage oftheshutdown head of sport Eric Brunner |headofsport “It’s andfor educationalforourusers Twitch) It’s not justabouttraditional sports Crossover success of thoselearningsforward.” cantake they and hopefullythen some getsbacktountil everything normal, anglesforcreatorsdifferent to explore really funsandbox. are alotof There buckets,It fitsalotofdifferent it’sa creating content itself. andmoderating oritcanbeaboutthecommunity down, questions from fans. toin them talkaboutitandanswer matches peoplewhoplayed andgetting replaying by the downtime historical theircommunityduring and grow seized theopportunityto develop content.archive andother of throughshut down smart deployment have ableto been take advantageofthe he says. rights-holders “Somesmaller to figure outthebeststrategy forthem” Twitch inthefirstplace,sowecanhelp wanttogoals are, why they beon shutdown. sportremains when createand helpthem digitalcontent itcansupportthem abouthow partners withitstraditional sports conversations saysBrunner Twitch ishaving frequent atanythinglikeoperating normalcy, industriescapableof among thefew done previously.” it’s notsomethingthatmostwillhave waydifferent ofthinkingaboutcontent, way. anda mentality It’s adifferent withfanscangosuchalong engaging ‘hello’. Just having anathlete directly actuallysaying they’re I can’tbelieve get fansreacting saying, “thisissocool, “Twitch big, canbevery itcanbetop- “The NWSL, for instance,have really courseweaskwhatourpartners’ “Of withesports In moment, thecurrent alotofcontent“I’ve seen you where MEDIA

Real Madrid goalkeeper Thibaut Courtois plays Borussia Dormund defender Mats Hummels in a game of NBA 2K on Twitch (Twitch) utilising an esports platform as a home moment that’s often been around FIFA, been low on clubs’ and rights-holders’ for their regular content. The overlap but over time it will be around more list of priorities when getting started between the two is crucial to getting endemic esports titles, because as with Twitch. “We do have products the most from a platform like Twitch, popular as FIFA is, it has its limitations within our service that can help with whose audience remains skewed toward as well. I expect we’ll see that crossover that,” he says. “There are clear routes to gamers and whose demographic is with athletes playing more typical making it profitable and to monetising considerably younger than even other esports titles and building engagement your channel. But a big part of the point digital channels. that way.” is that there’s no gate to getting on to “It’s an ability to really showcase That points to another key reason Twitch. It’s free to use and it’s free to other forms of content with their traditional sports rights-holders view. communities, so you can actually increasingly see Twitch as an essential “At the moment we’re just combine gaming and non-gaming and cornerstone of their digital strategies. encouraging teams to develop and grow create a crossover effect,” says Brunner. The NFL, for instance, has long been their communities, providing a place to “Obviously athletes play video games looking to find ways to address an interact with audiences. Come on in, get in their downtime, a good majority of ageing core demographic. your feet wet, play around with different them do, and so they’re coming on and Twitch, with its built-in audience of types of content, and then when you’re they’re finding ways to interact and content-hungry Gen-Zers, offers some comfortable, then we can evaluate the develop their own communities as well. kind of a solution, though Brunner monetisation angle.” Some clubs are finding ways to tap into stresses the importance of getting a At a time rights-holders are seeking that and use their players’ personalities content strategy right, rather than just new ways of distributing their content to build audiences.” assuming that being on the platform will and are desperate to win over a younger Real Madrid’s entry to the platform, attract eyeballs. audience whose consumption is wildly for instance, was preceded by its “It’s obviously a benefit to the different to previous generations, winger Marco Asensio winning the first platform and something that we do Twitch offers solutions to multiple LaLiga-sanctioned FIFA tournament provide with our service,” he says. “But problems. for professional footballers, believed our offering is unique and it’s important “The central idea of Twitch is it’s to have been watched by hundreds of to remember that at the heart of it meant to be fun and it’s meant to be thousands live on Twitch. In the longer is community and interactivity and additive,” says Brunner. “It’s also an term, Beall believes the depth of that engagement. So for people coming on organic experience so that those who crossover will go even further. board, that’s what we really encourage have a passion and an excitement, they “Clubs getting involved can maintain them to do, is to talk directly to their get to share that with their community that esports core of what Twitch is audience and build that community.” and then it also helps that partner reach about as well,” says Beall. “At the Brunner says that monetisation has new eyeballs and new demographics.” Z

@SportBusiness | www.sportbusiness.com 29 30 COVID-19 – COMMUNITY F Adam Nelson during Covid-19 pandemic to fans social and economic support Football clubs attemptingto provide www.sportbusiness.com | clubs operate acharitablearm,with exposed. just 90minutes ofdistraction eachweek those fanswhorely onitformore than chaos across theindustry, ithasalsoleft due to hassown pandemic theCovid-19 community supportto fans. vulnerable vitalsocialconnectionsand providing For many, however, sportisalifeline, Everton FCdeliveringfoodfromEverton itstraining ground to membersofthecommunitywhoareinneedduringisolation.( communities duringlockdown How football clubs are supporting How footballclubsaresupporting Almost alltop-level European football theglobalshutdownWhile ofsport offers entertainment andescape. offers millions around theworld,it anincome.Forsport provides or mostpeoplereading this, @SportBusiness and players donations from clubowners,officials infunding made up forby Shortfalls with the world, it’s how they receive they with theworld,it’s how stay they around it,it’show connected communities, people’slivesrevolve our fanbaseandparticularlywithin our FootballLiverpool Club. “Butwithin charitable andcommunityarmof director oftheLFCFoundation, the Parish,entertainment,” says Matt skillsschemes. and youthemployment contributing to thingslike foodbanks socialsafetynetshavewhere failed, and often picking uptheslack ofthecommunity members deprived surroundings, supportingeconomically taking placewithintheclubs’immediate carryout the majorityofworkthey “At thetop footballisultimately level, Everton FC) Everton financial support communities through and services Sponsors also offering assistanceto in the UK. Atherton regards itas“mine in theUK. area fourth-most economically deprived Goodison Park stadium–comprisesthe within aone-mileradius oftheclub’s Walton, Anfield,Everton andKirkdale –thewards of The so-called‘BlueMile’ a hugeimpactonourcommunity”. capacity duringtheshutdown “ishaving Community, to operate atitsfull community initiative,Everton inthe Everton FC, says theinabilityofits cityrivals, atLiverpool’s manager out.”them wecantopeople anddoeverything help still hasaresponsibility to those serve crucial socialsupport. We thinkthe club Sarah Atherton, neighbourhood COVID-19 –COMMUNITY and my team’s responsibility to help bring that up to the national average, where possible, by operating projects around fan and non-fan community welfare, mental well-being, food bank collections, education”. That is a difficult job at the best of times. With football shut down entirely, not only are those communities now lacking the social aspect football brings to their lives, but the fundraising avenues for the clubs’ community work have been closed off. The LFC Foundation, for instance, has an annual turnover of around £4m (€4.6m/$4.9m), with which it funds 150 separate community activity sessions per week, and pays its 50 full-time staff. Matt Parish, director of the LFC Foundation. (Liverpool FC) Half of that amount is generated through ongoing fundraising, with a full quarter of its yearly revenue brought in from a single day – the LFC Legends game, which this year had been scheduled for March 28. The game, against a team of Barcelona legends, will be rescheduled for later in the year if possible, but until that time, it “leaves a hole in the region of £1m in our budget”, says Parish, a significant shortfall at a time when it is most needed. In an effort to continue its efforts to support the most vulnerable in the city, LFC Foundation has stepped up its contributions to both the North Liverpool Foodbank and the Fans Supporting Foodbanks initiative. “Matchday contributions represent Sarah Atherton, neighbourhood manager at Everton FC, delivering groceries to vulnerable members of the community in Liverpool. (Everton FC) about 25 per cent of the food donations that the North Liverpool Foodbank Finch Farm training ground, has also whole. We wanted concrete actions.” receives,” says Parish. “With the Premier redistributed food that would have gone Through its Roma Cares foundation, League being on hold, that’s four home to club staff to food banks in the area. Roma quickly paid for and delivered games that the food bank was going to be thousands of face masks and bottles of short of donations at a time when they Fundraising initiatives hand sanitiser to local hospitals, before need more, those who are relying on food In Italy, which until recently remained setting up a GoFundMe campaign with banks are going to be facing even more of the most-affected country in Europe by a target of raising €500,000 in order a crisis in the coming weeks and months, Covid-19, AS Roma has taken an even to buy medical equipment for the so we stepped in.” more direct approach to tackling the city’s Lazzaro Spallanzani Hospital. The day after the season was put on pandemic. Roma president James Palotta donated hold, Liverpool appealed to its players “I think we saw the severity of €50,000 to kick-start the campaign, to help make up that shortfall. The it earlier than other countries, and which Roma Cares then matched. The response was a donation of £20,000, certainly football was stopped earlier current donations stand at €540,000, which was then matched by the LFC than elsewhere,” says Paul Rogers, chief which had, at the last count, funded Foundation. That £40,000 has since strategy officer at the club. “We saw that eight new ventilators and eight new been topped up by further private and we had a role and a responsibility as a intensive care beds for the hospital. public donations, helping to ensure prominent member of the community, Roma has also focused on delivering that the food bank continues to meet and a club that has millions of followers, care packages containing basic demand through the summer. Brakes, to do whatever we could to help not just essentials – both medical supplies and the catering company for Everton’s our fans but the Rome community as a food – to mainly elderly members of

@SportBusiness | www.sportbusiness.com 31 32 COVID-19 – COMMUNITY with ourfansandsupporters, canwecreatively stayhow connected about, connection it’sbasicallybeen right,Parishown argues. “In terms of to withcanbesupportinits engage is okay.” everyone our communityandensuring rest have aboutreaching outto justbeen 2,000 calls,124have crisiscalls. been The ofover about givingsomethingback.Out well-being,crises andmental also they’re as wellalotofthecallsbeingaround tooffer take walkthedog, groceries, so volunteer basis,”says Atherton. “They involvedona neighboursgetting other the week.“A lotofthathasinvolved calls to throughout localresidents older the impactsofsocialisolations,making cuppa” programmes inabidto reduce with bothclubsinitiating“virtual to sincethelockdown, level” another and Everton in the Community has “gone LFCFoundationrelationship between support. Atherton says thatthe social assistanceaswellmaterial support them.” weekend. Now it’sourturnto tryand people comeandsupportusevery something backto thesefans?These canweutiliseRomahow Cares to give unless inanemergency, soitwasabout age of70 don’tleave theirhomesatall the thatpeopleover recommending is “TheItalianwomen. government homes andshelters forvulnerable in need,butalsoto churches, care databasetoholders’ themost identify its community, usingitsseason-ticket www.sportbusiness.com | Roma’s Heroes campaign,whichhighlightsfrontline medicalworkershelpingthe fight againstCovid-19. ( Simply producing content forfans Clubs have and emotional provided @SportBusiness “These peoplecomeand Now it’sourturntotryand not justfrom Italy.” against thevirusfrom around theworld, medical workers helpingthefight launch we’vefocusedontwodifferent daysomething back.Every sincethe we thoughtthiswasaway of giving needtothey keep safe. themselves without theprotective that equipment their livesonthelineinsomecases in to hospitalsin particular, andputting workers whoare going andthecleaners doctors andthe nursesandthemedical ofcrisis,it’sactuallythe moment saysfootballers,” Rogers. “Butina allofourtimesemi-worshipping spend workers from around theworld.“We shine aspotlightonfrontline hospital and physically active. to keep fanssociallyengaged vulnerable running thesesessionsonline,helping Peter Moore. Shehasinstead taken to the wifeofclub’schiefexecutive, community, hosted Moore, Debbie by fansinthe chair yogasessionforolder Parish. usuallyhostsaweekly Liverpool amongthosegroups?”, saysvulnerable thosethatare most and certainly Roma support them.” weekend. support usevery Paul Rogers |chief strategy officer, AS “18 doctors haddiedin Italy, and Roma hasuseditssocialchannelsto AS Roma ) speak withfans in thecommunity. Z those whoare manning thephonesto and LFCFoundation staff,including health-relatedmental training to club insurance partner, providing hasbeen manage theirmoney. Axa,theclub’s may bestrugglingfinanciallyto better to doremotely to helpsupporters who for fans,somethingithascontinued workshops time, runfinancialliteracy Chartered, meanwhile,has,foralong London-based bankinggiantStandard duringthistime. their grandparents andteenagerschildren to reach out to intergenerational tiesandencouraging project, helpingto foster stronger It has continuedto support that to usetechnology to communicate. young fansteach their grandparents itbeganaproject toyear when help campaign”, asAtherton putsit,last foward-thinking Rovio begana“very donations. more thansimplecash services offering around educationalsupportand business isaffected.” can dobecause,obviously, everyone’s canimpactwhatthey size ofthepartner ways cangetinvolvedbutthe partners different and helpoutaswell.There’s looking forways cangetinvolved they too,affects them butalsobecausethey’re all along, becausefirstlythis obviously of thesituationandwhatourplansare and helpout. wanted to contribute to thefundraising contribution,” hesays, really just “they makinga likeseem cynically were they anonymity. didn’twantto “They make it a majordonationontheconditionof least oneother, says Rogers, hasmade invaluableCSRwork,whileat engage with someseeingtheopportunityto Club sponsorshave alsostepped up, Sponsor involvement GoFundMe campaign. proportion ofthegate receipts to its the gameto andwilldonate them, a charge to medicalstaff,willdedicate doors match backavailable free of make 5,000tickets foritsfirstopen- crisis isover. Roma haspromised to Liverpool’s front-of-shirtLiverpool’s sponsor, At Everton, sponsor theclub’ssleeve Those ways have tended to be “But we’vekept informed ourpartners That thankswillextend to the when SOCCER 2,500 DEALS, 78 CLUBS, 4 TOP LEAGUES, 1 DIGITAL PLATFORM

The future of football sponsorship data

Contact us now for a personalised demo and to discuss how a paid-for subscription to SportBusiness Soccer can help you gain a competitive advantage.

Web: www.sportbusiness.com/soccerpro Email: [email protected] Call: +44 (0)20 7265 4100 34 COVID-19 – FOOTBALL FINANCE ‘Some clubswillreallystruggle’ | Tifosy CEO F the shutdown. and thepotential long-term impactsof effects ofFrance’s media-rights cycle, burning issueforclubs,theknock-on player salarieshave becomesucha spoke to aboutwhy Zanetton Review is almostatastand-still.SportBusiness revenue their outgoingsatatimewhen have opportunitiesthey few to reduce asclubslooktoZanetton, the leverage become farmore widespread, says cuts inaneffortto protect staffwages. agreed playerMadrid, independently pay- suchasJuventus while others, andReal after widespread criticismfrom fans, before confirmingu-turns scheme furlough utilising theUKgovernment’s making, wouldbe announcingthatthey falling foulofPRdisasters oftheirown andTottenhamnotably Liverpool – withsomeclubs–most uneven, is noproduct andnoaudience. there run theirbusinessesatatimewhen struggle to come to terms to withhow as clubs,leaguesandrights-holders industry hashitsportparticularlyhard, shutdown sector ofalmostevery of andthesubsequent outbreak ofCovid-19 investors facedby challenges infootball. solutionsandadvicetoinnovative bespokefocuses onproviding and Parma andSampdoria, andthefirm Palace andEverton Aclubs andSerie LeaguesidesCrystal included Premier haveGianluca Vialli.Tifosy’sclients Juventusformer andChelseastar executive ofTifosy Capital&Advisory. shutdown, says Fausto chief Zanetton, Adam Nelson withplayersalaries starting – Cutting fixed-cost base essential www.sportbusiness.com | Fausto Zanetton theshutdown onsurviving Those agreements willhaveThose agreements to The financialresponse hasbeen much-needed.The That adviceisnow co-foundedTifosyalongside Zanetton survival throughout the current survival throughout thecurrent action” to theirfinancial ensure take “swiftandproactive must ootball clubsatalllevels @SportBusiness a third andhalfof theirmarket value, football clubslose sometimesbetween we’veseen cent; 20,25per are down most industries. mainindices Theother lot ofdistress forclubs. oftimewillreally createfor anylength a to disruption startwith,soanyrevenue that’s justnotahealthy businessmodel gets eaten away player by salaries– ofyourtop cent 60-80per where line salaries. That’sthereality ofanindustry havethe onlylinethey isto cutplayer clubs needto cutcosts. Andreally clubs. Butwhatever happens, scenario eachonewouldaffect future andhow ofpotentialnumber forthe scenarios We’ve lookingata been obviously weeks oftheshutdown? clients throughout thefirst few How have youbeenadvisingyour could belong-term Effects of shutdown on revenues Fausto Zanetton, chiefexecutiveandfounderof Tifosy Football hitthan harder hasbeen inject into thebusiness. ordon’thave levered very thefunds to might leadto financialdistress ifyou’re hard, andpotentially very you very lossisgoing toamount ofrevenue hit theminimal upinasituationwhere end you’re really goingtofinancial leverage, withthe leverage that operational clubs have alotofdebts. Ifyoucombine andalotofthese financial leverage, conversions. Butyou’vealsogot thinmarginsandcashflow in very the fixed costbaseishigh,resulting business. levered it’s avery have businessmodel, vulnerable avery further, even gone down becausethey private markets, valuationswillhave companies; Ithinkifyougoto the and Juventus. Thoseare thepublic in thecasesofManchester United expiration of Canal Plus’s rights deal France more exposed due to You’ve i.e. leverage, gotoperational COVID-19 – FOOTBALL FINANCE That’s why some leagues are looking If you look at it geographically, France impact, it’s kind of the same as the at league funding, or awarding prize is exposed because the broadcaster starting cost base in Germany and Italy money early, because for a lot of these there has said they’re not going to pay is lower. And the clubs have the same clubs it will be very hard to raise capital the last tranche of payments. Canal problem. Yes, you’re Barcelona, but independently or some of the owners Plus has got the domestic rights and on a percentage of revenue basis, you quite frankly will need to inject more beIN the international, but Canal Plus have the same problem, if not more cash. doesn’t have the rights for the next so, which is that you need to be able to I think first and foremost clubs need cycle, starting next season – they’ve fund your cost base, and if Barcelona to be proactive. I think they need to already been given to Mediapro. So for doesn’t play in the Champions League think about all their options at their Canal Plus, there is less incentive to be and the last tranche of the broadcasting disposal. There’s not much else that constructive because they don’t have money doesn’t get paid, you still need clubs can do, if there is a sustained loss that view down the line, the need to to pay Messi and Griezmann and the of revenues, then to go to the players salvage the product, they don’t have other guys who get millions a month. and say “look, let’s cut a deal. We’re on that incentive to provide funding now There’s not much clubs can do the same team. This is really really going to help keep the LFP [French Football besides cutting costs, and getting your to hurt the business and so we need to League] afloat. hands on liquidity, even as a big club, basically make an agreement”. Whereas I think Sky, especially will be tough, and a lot more expensive If the banking industry gets hit, in Italy, Germany and the UK, has given that risk has been repriced people don’t get variable bonuses. But such symbiotic relationships with significantly in the public market, both football is an industry which has very the leagues, they’ve been partnering from an equity and a debt point of few variable bonuses – there are some, for decades, so to really screw the view. So, even if they could get future but the fixed cost base is just so high, clubs and not give them funding that funding, it will be a lot more expensive and people get paid no matter what. So potentially might prevent them from than what they had before. It still when the revenues are gone, it’s very going bankrupt – there’s no reason comes back to reducing outgoings on hard to sustain, so you need to cut into to do that. You’re also interested in player salaries. that fixed base to be able to absorb the protecting the end-product, you want shock. to maintain the integrity of the leagues, Are there any other fixed costs, Once you’ve reduced the cost base, so I think there’s going to be a more other than player salaries, that clubs owners can start to look at what they constructive dialogue there. Down the can look at reducing? can do themselves. Some clubs are line, there might be an impact on future Very little, to be honest. 60-80 per cent obviously requesting that shareholder cycles where the costs incurred now get of costs are player salaries, the rest is contributions are made, and there will priced into the next rights cycle, and the people who work at the club, staff costs, be more capital injections directly by leagues should not expect as much of a general administrative costs. You can owners to stabilise the ship. You need revenue increase going forward. cut those a bit, but it’s not going to to try to get as much liquidity on your Obviously the Premier League move the needle much. Some clubs have Fausto Zanetton, chief executive and founder of Tifosy balance sheet as you can, which is what followed by LaLiga have the biggest furloughed staff, but it’s not going to other companies are doing – airlines, contracts, but in terms of relative save the business, and we’ve seen that cruise operators, the hospitality industry. If you’ve got a credit line, pull it. If you can ask for a favour from your bank, ask for it. Because you need all that cash. I don’t think the long-term value of sports is affected. It might be somewhat, because there might be some longer- term impacts. But the value is still there. Clubs just need to basically be able to get through this period. And so you need to cut costs, you need to get liquidity, and they need to really be proactive around that and not just wait for the league or the government to give them some helicopter money. Because that just is not a good approach.

Is everyone affected equally by this? Are some leagues and clubs better placed to weather the storm The Covid-19 pandemic has resulted in the suspension of Premier League football. (Visionhaus) than others?

@SportBusiness | www.sportbusiness.com 35 36 COVID-19 – FOOTBALL FINANCE sustaining themselves through the sustaining themselves playing again.It’s notjustaboutclubs the knock-on effects after westart the players. havethey from from amassivewaiver or notbeableto dealwiththisunless clubs inthetop leaguesto really suffer expect alotofthemid-to-lower-sized two months,forexample,youwould cominginforthenext nomoney there’s the specificsituation,butIthinkif on ontheclub,itdepends It depends football? clubs sustainthemselveswithout How longcantop-level football those workers andthose businesses. might seeitasmore importantto protect onstaff,andtheowners of theirturnover probably notpayingthey’re cent 80per sound businessesthanfootballclubs– more so. probably more Andthey’re are impacted thecrisisequally, by ifnot businessesthat other usuallyown they wetalkaboutbillionaire owners, when into isthat enough theconversation players millionsamonth. stillpaying they’re staff wageswhen PR aspectofdoingthataswell,reducing clubs needto thinkcarefully aboutthe The closedgatesoutsideChelsea’s StamfordBridgestadium.( www.sportbusiness.com | The other thingtoThe other is consider thingthatdoesn’tcome The other @SportBusiness centre inpeople’sminds.centre ButIthink, as 80,000 people,might notbefront and initially, goingbackto thestadiumwith back to theirnormalbehaviour. Maybe, want to watch it. wantto Ithinkthey go for football.Istillthinkthatpeople will alwaysThere’s goingto beademand normality reasonablyquickly? from this?Willitreturnto relative football well-placedto bounce back underlying strengthinthemarket?Is In thelong-term,istherean will really struggle. businesslines,you yourother grown to balanceyourbooks,ifyouhaven’t fees.transfer Ifyouhave to dothat you mightnotgetyour£60m,£70m andsellingtop talent developing clubs, to that. of fanswouldhave anegative reaction window,the nexttransfer Ithinkalot tomoney £50monaplayer spend in of lives. PR-wise, ifaclubhasthe even much money, butare saving thousands doctors –people thatare notmaking appreciation forsocialworkers, nurses, PR aspectofit. goingto There’s be areal to impacted –notjustthevalue,but afterwards aswell.Transfers are going shutdown, fortheworld butpreparing Catherine Ivill/GettyImages So, ifyou’re aclubthatisrelying on ) do it a little bitcheaper.do italittle Z to investininto sports. might just They Wealthythere. peoplewillalways want it. Sothatscarcity valuewillalways be United, somebodyelsewillnotown United. Manchester Andifyouown United’s always goingto be Manchester want to seesports,andManchester much. People willwantto dosports, shouldnotbeimpacteddrivers too term, atleast, butIthinkthelong-term be animpactonvaluationintheshort- and willalways have might value.There oftheday,at theend soIthinkthathas of things. fees,allthesetypes salaries andtransfer opportunity to on address spending it shouldchange,couldbeagood about thebusinessmodelandhow to andhave sitdown areal discussion because thismightbeagoodmoment maybe aswell, costsmight belower projected. hand, But,ontheother thanpreviously mightbelower growth time. AndIthinktheforecasted mighttakewith it,buttherecovery broadcasters willwantto beassociated and willwantto watch sports. want to people timewithother spend wefindavaccine,peoplewill and when It’s a mediaandentertainment play, After aneconomicrecovery, sponsors, Introducing a new report from

Global Media Report 2019 The must-have guide to understanding the value of sports media rights in 2019

How the value of global media rights has developed since 2015 for: • The top 10 sports • The top 20 properties • The top 10 markets • In-depth focus on the English Premier League In-depth focus on • In-depth market focus on the UK • What to look out for in 2020

Why you need the report

Exclusive data on the $51bn global sports media rights market

The most accurate set of media values available anywhere

Understand the key trends across sports, properties and markets

Expert analysis from the SportBusiness Consulting team

Learn more about the biggest markets, most expensive properties and most valuable sports

For more information and to purchase the report visit: https://sprt.bz/GMR2019 email: [email protected] or call: +44 (0) 2072 654100 38 COVID-19 – INSURANCE O working inAsia-Pacific years, forseven for20years.types ofevents, It has been andother as welltrade fairs,concerts and international globally, sportsevents insurance fordomestic providing been Circles Group.insurer Hong Kong officeofspecialistevents regional director, Pacific, Asia atthe diseases, according to Tommy Elliot, cancellationduetocover communicable extra costto extend theirinsurance to notto yearschosen in recent pay the due to Most Covid-19. have organisers Kevin McCullagh Tokyo’s OlympicStadium. according to specialist Circles Group for cancellation due to a pandemic events have insurance Few sports www.sportbusiness.com | catch out many Asia-Pac sports properties catch out many Asia-Pac sports Failure to insureagainstpandemicwill Luxembourg-based Circles Group has from event cancellations from event insurance to losses cover have inAsia properties nly asmallminorityofsports (Tokyo 2020website) @SportBusiness that aninsurance claimwillstillbe cancelled, butitappearsnot yetbeen Elliot says. ofcourse,has Thatevent, thecancellation ofTokyocover 2020, are amongthosethathadinsurance to broadcasters suchasNBCintheUS, andthemajor OlympicsCommittee theTokyoCommittee, 2020Organising Elliotsays.coverage,” we wouldcallcommunicabledisease with thespecificextension forwhat cancellationinsurance, form ofevent would nothave inthe hadcoverage across theregion, mostorganisations international, largesportingevents aside from maybe some ofthekey, of specialistbrokers. insurance viaanetwork supplying event cancelled events to pay out up to $6bn in claims for The insurance industryis expected The International Olympic experience, “Based onourpersonal • • such as: scenarios, oneormore ofseveral cover digit millionsofeuros. exposure to inthetriple- theOlympics company, Munich Re, alsosaidithas cancellationsthisyear.event Another in themid-triple-digitmillionsto other company says exposure ithasfurther this muchininsurance claims. The it couldpotentially have to pay out ‘exposure’ to –meaning theOlympics globally, hassaidit$250mof cancellationbusinessof theevent says ithasa15-per-cent market share Insurance companySwissRe, which oneormore stakeholders.made by to generate claims are among themajorevents expected The Tokyo Olympics andWimbledon Event cancellationpolicies typically Event The postponement oftheevent; The postponement before it commences; event The complete cancellationofthe COVID-19 –INSURANCE • The complete abandonment of the again’, or, ‘My event’s in Australia, we’ll protection against cancellation due event after it starts; never have an issue like that’.” to communicable diseases “for the • An interruption of the event. Cost is one of the main reasons foreseeable future”, Elliot says. He adds: for the low take-up. A communicable “If you would have come to us even Wimbledon is one of the few other diseases extension could double the cost in late November or early December, major events known to have had of some insurance policies, although the depending on where the event was, insurance that covered the cancellation costs are highly variable, particularly probably...anywhere outside of China we of this year’s tournament. Trade depending on the event’s location and would have offered the extension under publication Insurance Times reported the recent history of disease outbreaks the cancellation policy.” that Wimbledon organiser the All there. Event cancellation insurance is Discussions involving insurance England Lawn Tennis & Croquet Club typically calculated as a percentage of companies and governments on how to (AELTC) has been insuring itself against an event’s total expenses or revenues. provide such insurance going forward cancellation due to a pandemic for Elliot says the percentage can range are currently taking place. the last 17 years, and is set for a £114m from 0.4 per cent to more than 2 per Unsurprisingly, interest in event payout. The AELTC was reported to cent of those figures. An extension to cancellation insurance is expected to have paid about £1.5m per year for cover communicable diseases would, grow in the wake of the pandemic. That the insurance, £25.5m over the whole prior to Covid-19, have cost another 0.2- will be very welcome for the events period. The payout is not expected to to-1 per cent. insurance business – or at least those cover its entire expected revenues from Insurance is typically taken out by that remain in it after the losses they this year’s tournament, even factoring in the event organisers, although in some shoulder this year. The anticipated its cost savings from not running it. cases for major events, broadcasters and $4bn-$6bn in payouts must be balanced The events insurance industry as other commercial partners will also seek against annual premiums of about a whole is set for an enormous hit to insure their investments in rights. $300m-$350m earned globally by the due to payouts under cancellation “That’s quite common for larger sector, Elliot says. insurance during the pandemic. Trade sporting events,” Elliot says. “So, for the “It’s going to take a while to pay publication Insurance Insider estimated Olympics, big broadcasters like NBC out that back. I think, as a result, you will that industry losses could be between of the US would have their own event potentially see insurance companies $3.7bn and $6.3bn globally this year. The cancellation policy covering their loss of perhaps pull out of the market. But publication puts Swiss Re’s losses alone revenue.” Certain broadcasters in India then you may see other players come at between $500m and $950m. also take insurance to cover their major in, as well.” But outside Tokyo 2020 and a handful cricket rights deals, he adds. Circles Group will be one of the of the very biggest events, the sports Right now, due to the pandemic, companies hoping to capitalise on a industry will not be a major beneficiary. no insurance company will offer pick-up in demand, Elliot says. Z Many event organisers will have cancellation insurance, but cancellation due to communicable diseases is typically sold as a rarely-taken optional extra. “When customers are considering their insurance coverage for events, they normally don’t ask specifically for that communicable disease extension.” Elliot tells SportBusiness Review. “And when it was offered, oftentimes it was one of the first things that the client would cross off the list to save cost.” Cancellation causes that are typically covered as standard include weather, terrorist attacks or threats of terrorist attacks, a failure to deliver critical equipment and travel problems for competitors. Even in Asia, where event organisers had experience of cancellations due to the SARS and MERS outbreaks in the past two decades, take-up of communicable diseases insurance was low. Elliot says: “We tend to get the response, ‘Ah, that’s not going to happen Tommy Elliot, regional Director, Asia Pacific, at specialist events insurer Circles Group.

@SportBusiness | www.sportbusiness.com 39 40 EVENTS O Abu Dhabi–providing lightattheend tennis andmixed martialartsare part its breadth. Eastintermsunrivalled intheMiddle of portfoliothat is establishing anevents has attempted to differentiate itselfby capital oftheUnited Arab Emirates financial extravagance alone,the of levels definedby superficially havereputations sometimesbeen intheworld. anywhere Bradley Rial schedule, the emirateinevitable disruption to is well positioned to the 2020 sporting mitigate the challengesthat lie ahead. Abu Dhabi has establisheda renowned international events calendar, including itsannual Formula One Grand Prix.Despite www.sportbusiness.com | of thetunnel? High-profile football,cricket, golf, However, sporting in aregion where infrastructure to rival a sparklingsporting hasdeveloped Dhabi thepastdecade,Abu ver @SportBusiness seventh time in a row that Abu Dhabi thatAbuDhabi time in arow seventh and Tokyo, amongothers. It marked the Beijing, London,LosAngeles,New York Awards, seeingoffcompetitionfrom at thelong-establishedWorld Travel leading sportstourism destination wasnamedastheworld’s Abu Dhabi F1’s inaugural day-night race in2009. itsdoorstoopened hosting the world by rocketed sincetheYas Circuit Marina asasportsdestinationhas reputation It thatAbuDhabi’s isno coincidence Rocketing reputation inthecrown. asthejewel viewed Formula thatiswidely Grand Prix One of theoffering, but itisAbuDhabi’s For 2019, example,inDecember and beyond clearly agree. The Grand and beyond bebettered.” never may oneday bematched, butitwill deal wassealed:“It [Yas Circuit] Marina EcclestoneBernie thelatest saidwhen calendar. executive F1’sthen-chief As willloseitsspoton the that AbuDhabi itisinconceivable of theGrand Prix, in 2014.However, suchisthestature SportsManagement F1 andAbuDhabi the terms struckbetween ofarenewal untilatleastnextyearunder calendar sporting credentials. to shineaspotlightontheemirate’s ofF1hashelped doubt thatthepresence had claimedtheaccolade,withlittle Petrol East headsacross theMiddle onthe The race itselfwillremain (GIUSEPPE CACACE/AFPviaGettyImages) EVENTS Prix is Abu Dhabi’s biggest event of the on a city that, according to Abu Dhabi’s a significant part in helping us do that, year and upwards of 100,000 people Department of Culture and Tourism, particularly the artist announcements from more than 170 countries visit the had just under 30,000 hotel rooms for the after-race concerts, which come city to watch the race. by the end of last year, in comparison a bit later in the year. “Each year, the whole city comes with about 100,000 in Dubai, one “Early on, we set out to position our together to ensure that visitors to the hour’s drive to the north. Occupancy Grand Prix as the modern definition UAE enjoy their overall experience and average room rates in Abu Dhabi’s of an F1 event. We wanted to build not and leave with happy memories, which hotels have rocketed to an annual high only a local customer base, but a global subsequently means they are able to act in November in each of the past three connected community, and the increase as the city’s biggest advocates through years, coinciding with the build-up to in the number of visitors attending word-of-mouth power which has a and arrival of the grand prix. the event from outside the UAE would far bigger impact than any marketing indicate we have managed to achieve outreach,” says Al Tareq Al Ameri, Yas “Hosting high-profile that over the past 11 years.” Marina Circuit’s chief executive. events has…inspired local Pandemic impact International appeal participation.” This year, though, like the rest of the With Bahrain already hosting a Grand Tony Kouris | general manager, Zayed sporting world in the wake of the Prix and Saudi Arabia set to bring Sports City devastating global spread of Covid-19, another F1 race to the Middle East in Abu Dhabi has been forced to contend the coming years, motorsport’s biggest with unwanted scenarios. Although the world championship has an increasing Abu Dhabi’s cultural and leisure Abu Dhabi F1 Grand Prix benefits from presence in the region. There is little scenes have also blossomed, with the a season-ending date of November 29, doubt, though, that Abu Dhabi can emirate’s strategists keen to use the giving it as much time as possible for life continue to offer a unique appeal. race, as well as other major sporting to return to relative normality, lingering “The fact it’s the final race of the events, as a gateway to a more varied international travel restrictions could season is a unique selling point, but visitor experience. For example, the yet disrupt the emirate’s key sports while that has its advantages, you must Louvre Abu Dhabi, which has quickly destination marketing tool in 2020. build a relevant story around it,” Al become one of the city’s most popular However, although there are Ameri says. “In general terms, however, tourist destinations, opened less than major challenges ahead, unexpected the current calendar positioning works three weeks before the 2017 F1 race opportunities may also be on the very well for us. The weather is fantastic took place in the city, while high-profile horizon due to the broader global in November and we’re able to attract concerts are organised to complement turbulence. international visitors, mainly from the the action on the track. Currently, the emirate’s outlook in UK and Europe, before attention turns In relation to the grand prix, Al Ameri terms of public health and economic to Christmas.” adds: “There is a massive emphasis stability with regard to the pandemic The influx of visitors for the grand on driving ticket sales throughout the is relatively promising. According to prix has a noticeable seasonal impact year, with some key factors which play official figures, there were only 208

Locals play cricket outside at Zayed Cricket Stadium (Gareth Copley/Getty Images) (xxx)

@SportBusiness | www.sportbusiness.com 41 42 EVENTS hosting English domestic matches in toalready saidthatit wouldbeopen Cricket,Abu Dhabi forexample,has that wouldusuallytake placeoverseas. an alternative destinationforevents as couldemerge though, AbuDhabi around theworldassoonpossible, tothe firstevents fallvictim. wasoneof inearlyMarch, in AbuDhabi Triathlon scheduledto Series, take place April. Thefirststop ofthe2020World extended noticeinmid- until further andthemeasure was in earlyMarch, strategy, imposedalockdown onevents which drivestheemirate’s sporting crisis. SportsCouncil, TheAbuDhabi adoptedhas been from theoutsetof major projects for2020. planned progression” inrelation to its “has theresources… to continuewith its thatthecity saidinMarch development, ofeconomic department Abu Dhabi’s Mohammed AliAlShorafa, chairmanof oilpricesonneighbouringDubai, low and about theimpactofpandemic as ofMay 15. confirmed casesofthevirusinUAE reported deathsand21,000 Covid-19 www.sportbusiness.com | With sports eager to sportseager With resume Nevertheless, acautiousapproach are grave there Whilst concerns @SportBusiness “Early on,wesetoutto tournament in1995and2019. Cup nationalteamfinal oftheAsian alsostagedthe and 2018.Thevenue World Cupmatches in2009,2010,2017 of thecomplexandhosted Fifa Club asthecentrepiece Stadium serves Dhabi. Abu thatserve entertainment venues the site ofsportsand ofanumber theroad from Zayeddown SportsCity, Sharjah, justnorthofDubai. heldin been which hadpreviously last yearbeganhostingtheT10League, Stadium hasacapacityof20,000and help outintimesofneed.Zayed Cricket hasthefacilitiesto certainly Abu Dhabi Infrastructure England andWales Cricket Board. tothe summer onthe easetheburden Al Tareq AlAmeri|chiefexecutive,Yas Marina Circuit position our GP as the modern position ourGPasthemodern definition of an F1 event.” definition ofanF1 The 43,000-seatZayed SportsCity Zayed Cricket Stadiumislocated Russia’s KarenKhachanov returnsNovak Djokovic’s shotduringtheMubadalaWorld Tennis Championshipat Zayed Sports CityinAbuDhabi,onDecember21,2019.( Zayed Sports not aguarantee”. awareness thatexercise isa“luxuryand Kouris helpedto saidthisevent raise for athletes withintellectual disabilities. Worldyear’s SpecialOlympics Games playing together more.” sporttogetherover andhave been Club World Cup, familiesformedbonds like events With CupandFifa theAsian inwhoisusingourfacilities.diversity at Zayed the Sports Cityhasbeen have alastingeffect. andtheinvestment interest, thelegacy butitisjustasimportant.Dhabi, The the everyday livesofthepeopleinAbu haveimpact thatthey inimproving on television the doesn’t showcase to oursuccess. and individualsusingthesite are critical complex –clubs,businesses,families operates asacommunitysports manager,Sports City’sgeneral says. participation,” Tony Kouris, Zayed scale, butithasalsoinspired local onaworldwide our cityandvenues not onlyhighlighted the capabilityof Zayed SportsCityalsohosted last “The biggestimpactwe’vewitnessed “Watching thesemajorevents “At thecore, Zayed SportsCity has “Hosting high-profile events AFP viaGettyImages ) EVENTS Programmes an appetite for a wide range of sports. following the merger of the Dubai Tour Such a focus on healthy living has long Zayed Sports City features a bowling and the Abu Dhabi Tour. been considered a priority in Abu Dhabi centre, tennis complex, ice rink and Last September, Abu Dhabi hosted its and the UAE as a whole. The World other pitches, with Kouris noting that first Ultimate Fighting Championship Obesity Federation expects 15 per cent last year each of these facilities saw an event since 2014 as part of a new five- of people under the age of 20 in the increase in usage that can be directly year deal with the mixed martial arts UAE to be obese by 2025. and indirectly attributed to events that organisation. With the hook of major international were hosted. The Yas Island event was headlined sporting events, there has been a Abu Dhabi will be further boosted by a fight featuring reigning UFC concerted effort by the authorities this year by the opening of the new lightweight champion Khabib to improve the health of the public. multi-purpose Etihad Arena, the city’s Nurmagomedov. The terms of UFC’s Abu Dhabi Sports Council, which was first-of-its-kind, indoor entertainment agreement with the local Department established in 2006, has in recent venue. With a capacity of up to 18,000, of Culture and Tourism dictate that years launched a variety of social and the ASM Global-operated arena will be each card will be headlined by at least development programmes to support located on Yas Island. one championship fight, ensuring more its events portfolio in order to work prime exposure for Abu Dhabi on the towards a vision of ensuring the Diversity international sporting stage. emirate is ‘an international capital for Unsurprisingly, outdoor sports that Amidst the current uncertainty across sport practicing competitiveness and can make the most of the consistently the industry, the UFC’s swift return international events’. glorious weather also view Abu Dhabi as to action in the wake of the Covid-19 Meanwhile physical education in a natural home. outbreak can only be seen as a positive public and private schools became The Abu Dhabi Golf Championships, for Abu Dhabi. mandatory across Abu Dhabi in 2010, a fixture on the European Tour since Although it is inevitable that the and the Health Authority of Abu Dhabi’s 2006, was elevated last year to become emirate’s established international ‘Eat Right and Get Active’ programme one of the Tour’s Rolex Series events, sporting calendar will suffer disruption has been credited with boosting boosting its prize fund to $7m (€6.5m). in 2020, the long-term strategy to create participation levels across numerous In cycling, the UAE Tour forms part a varied schedule will give Abu Dhabi a sports. of the International Cycling Union’s better chance than most of mitigating Such interest has translated into WorldTour, having been created in 2018 the adverse impact of the pandemic.

Matt Fitzpatrick hits his second shot on the 18th hole during day three of the 2020 Abu Dhabi HSBC Championship, on January 18. (Warren Little/Getty Images)

@SportBusiness | www.sportbusiness.com 43 44 BUSINESS DEVELOPMENT W for $730m(€675.6m). business from theWanda SportsGroup swooped to acquire theIronman conglomerate andprivate equityfirm of stasisinthesector, themedia thatbucked move sense thegeneral Capital. In a andOrkila Publications as usualfortheexecutives atAdvance itwasbusiness the monthofMarch, cancellations andfurloughsduring Ben Cronin in Discovery Nast and holds a 30-per-cent stake Advance Publications owns Condé www.sportbusiness.com | Ironman’s newinvestors willfocus on content and virtual racing tocontent and virtual unlock value The timeworn aphorism aboutthe The timeworn of postponements, of postponements, dominated stories by was agenda news hile thesportsindustry @SportBusiness

twelve months,” says NickRusling, chief to intheworldnext happen thanjustwhatever’sviewpoint going Wanda’s reported $1bnvaluation. $730m pricetag–someway shortof market conditionsare baked into the feeling insomequarters isthatcurrent loan facilityto refinance itsdebts. The business before takingouta$240m onitsmassparticipation Covid-19 of the‘material impact’of adverse Wandadivision ofDalian hadwarned weeks earlier, theBeijing-basedsports apposite inthecircumstances. Just seemed ‘opportunity’ and‘danger’ Chinese word for‘crisis’meaningboth unlock additional opportunities racing Capital believe will virtual Advance and fellow investor Orkila “It’s alonger-term obviously an IP-licensing business into onethat plan wasto turnwhatwasessentially EquityPartners.firm Providence Its private by business wasowned equity many creative mindshave triedbefore. so can unlockadditionalvaluewhere thelatestin how custodians they believe as Ironman, willalways there beinterest iterationsthrough asmanyownership term.”about thelonger is economic crisis,sothevaluationnow that’s withstood variousformsof “Ironman isabrand intheUK. events ofmassparticipation largest organisers executive ofHuman Race, oneofthe participation businessin2018 participation cent ofrevenues at Wanda’s mass Race entry feesmade up 44 per From 2008to 2015,before Wanda, the abusinesshasgone Whenever (Donald Miralle/Getty ImagesforIRONMAN ) BUSINESS DEVELOPMENT owned and controlled most of its events will help to drive a business that strives for an always-on relationship with and sold sponsorships centrally. to cultivate a year-round commercial participants. Most competitors take up Wanda bought the group from relationship with its participants. triathlon having previously specialised Providence for $650m in 2015 and in one discipline, meaning they have assumed debts that reportedly took the “As soon as you deviate from to learn new core skills. Experienced deal to $900m. Over the last five years, athletes liken races to electrochemical its strategy has been to grow Ironman Ironman into a slightly contests, where one badly timed energy by creating new events – in China broader sphere of media, drink or feeding decision can have especially – and through the acquisition you’re not necessarily offering dramatic consequences later on in the of some of the world’s leading long races. aspirational endurance properties in what the customer wants.” This makes for a highly-engaged trail running, marathons and mountain Nick Rusling | chief executive, Human audience, hungry for information and biking. Ironman purchased iconic Race training resources, which also offers events like the Cape Epic mountain numerous marketing opportunities bike race in 2016, and the acquisition for equipment suppliers and sports of Lagardère Sports’ mass participation The Ironman business model has nutritional brands. business in the same year also boosted diversified as the business has changed “Ironman probably charge the highest its endurance event portfolio. hands. In 2018, athlete entry fees entry fee of all in our industry,” says made up 44 per cent of Wanda’s mass Rusling. “But often, even if it’s £100, it’s Media capabilities participation revenues (€124.1m) a small percentage of the total spend in Under the latest deal, attention will and sponsorship revenues accounted someone’s passion to run, cycle, swim, inevitably turn to some of the media for about 24 per cent (€69.2m), with because the equipment costs a lot more. properties in majority shareholder the company making an additional “If you can tap into some of the Advance’s investment family. These €25.5m from host city fees, €21.8m bigger chunks of spend, and it’s all include publishing and events from merchandising and €10.6m from centered around supporting a customer powerhouse Condé Nast and a 30-per- licensing. It should be noted that these and what they love doing all year round, cent stake in Discovery, parent company figures also include revenues from the then that’s the commercial holy grail.” to broadcaster Eurosport. Infront agency’s Personal & Corporate Discovery, the other major media SportBusiness Review understands Fitness unit, which also sits under the brand in Advance’s investment Advance plans to run Ironman as Wanda mass participation umbrella but portfolio, has already started trying a standalone business but draw on is not part of the Advance deal. to exploit similar opportunities, experience within the wider group. The physical challenges of an developing new verticals in hobbyist The belief is the other companies’ Ironman race, and of the other pursuits like cycling and golf to capabilities in engaging with consumers endurance events in the company’s supplement live coverage of these and sponsors across a range of media portfolio, provide a huge opportunity sports on Eurosport.

The 2018 Cape Epic mountain bike event. The race was acquired by Ironman in 2016 (RODGER BOSCH/AFP via Getty Images)

@SportBusiness | www.sportbusiness.com 45 46 BUSINESS DEVELOPMENT via GettyImages Orkila CapitalfounderJesseDuBeywithhiswifeatanevent inNewYork in2010( UK Cycling Events in2015. UK CyclingEvents Time Inc. buyingleadingsportorganiser example ofCyclingWeekly publisher doesn’t guarantee success. He cites the into apublishinggiantlike CondéNast marketing anddigitalcapabilities. sophisticatedalready boastsvery content, arguingthat thecompany out ofIronman simplythrough better be ableto squeezemuchmore value Rusling will isskeptical owners thenew Warning prospecting foramateur entries. dohavealthough they arole to play in live highlightsandmagazinecontent, bulk ofdistributionbeingfornon- most compellingliveviewing, withthe to ten hoursanddon’tmake forthe events. Ironman races canlastup than from televising professional content andtargeted campaigns email selling sponsorshiparound short-form from chance ofincreasing revenues tutorials andlifestyle programming. training, withexpert enthusiasts cycling the mediacompanyto ‘super-serve’ channel, wasacaseinpoint,allowing Global CyclingNetwork YouTube media businessthatrunsthespecialist in thePlay SportsGroup, thedigital www.sportbusiness.com | “What they found very quicklywas found very they “What He alsowarnsthatpluggingIronman Sources suggestIronman standsmore The acquisitionofacontrolling stake ) @SportBusiness and led the firm’s investment in and ledthefirm’s investment director EquityPartners ofProvidence rejoin theIronman board ofdirectors. Jessemanaging partner will Bey Du investor and Capital’sfounder Orkila media andliveentertainment, minority in Advance’sexperience supplement mitigate againstmissteps like this. To aboutthebusinesstoknowledge towards women. haveseries, aspatronising derided been ‘Ironcreating alesschallenging Girl’ effortstoprevious address this,by to skew toward maleparticipantsand audiences. tendfemale Ironman events Glamour andTeen Vogue –to engage publications –whichincludesVogue, Condé Nast’s portfolioofwomen’s might have more successleveraging customer wants.” whatthe you’re notnecessarilyoffering into ofmedia, sphere aslightlybroader soonasyoudeviateAs from Ironman overlap. little very running andthere’s wanttoand runners betalkingabout to betalkingabout doingtriathlons, about cycling, andtriathletes want same customer atall,”hesays. didn’t transpire anditwasn’tquite the base andbuyingmagazinesactually the logicofhaving asingle customer Du Bey was previously managing waspreviously Bey Du shouldhave owners The new enough investorsThat said,thenew “Cyclists really wantto betalking AMBER DeVOS /Patrick McMullan be above 80 per cent. thinkofthe 80per They be above campaigns, whichare saidtoon email retention figures andclick-through rates Ironman’s impressed by customerbeen dilute this. and thelatest custodians donotwantto bodies, denotes adegree oftoughness of competitors have tattooed ontheir wary ofchangingtoo much. feelforthebrand andwillbe followers affinity are mindfulofthedeep they well-placedsource said events. One ofelitefrom itscore offering endurance not seekto Ironman move too faraway investorsindications are thenew will theplatformforraces.provide Technogym,manufacturer whowillalso app Rouvy andfitnessequipment sponsorship dealswithvirtualcycling Ironman VR1,took place onApril3. the courseofaweekend. Thefirstrace, compete over ofchallenges inaseries and fitnesstracker appswillbeableto athletes usingwearable technology Ironman VirtualRacing, inwhich sale, theIronman Group launched instigate. Just days before theAdvance wantto owners thenew evolution thecatalystfor already provided more intobrand even theirdailylives. participants andintegrate theIronman withIronman to engagement deepen applications like Zwift, Strava and Rouvy of interactive andconnected fitness opportunity to usethe latest generation the private equityfirm seesan understands SportBusiness Review racing Virtual company Crash LineProductions. livemusicandartfestival independent businesses,including and events conferencing promotion andseveral includes theBellator mixed martialarts and 2015. 2008 races in-housebetween licensed Messick, andledthestrategy to bring andchiefexecutivepresident Andrew team, management current including ofthecompany’s recruiting members involvedin himself, hewaspersonally Ironman 12yearsago. Atriathlete The new investorsThe new are saidto have The Ironman logo,whichlegions like developments Beyond this,the hasalready delivered series The new lockdownThe Covid-19 mighthave portfolio investment Orkila’s BUSINESS DEVELOPMENT “Ironman really is a unique try to attract a broader consumer set, it continue welcoming races to boost their risks diminishing its core concept. coffers. They would be heartened to see brand. It’s the Hoover of long- that just 17 per cent of cities in the BCW distance triathlon.” City fees survey believed city hosting budgets will Another question is what the current be affected after 2021. Nick Rusling | chief executive, Human social distancing measures and bans Rusling thinks customer service is Race on mass gatherings might do, both for a more pressing priority during the the appetite to watch and participate in Covid-19 lockdown, pointing to the flak races, and for cities to host them. Ironman is receiving on social media brand as more of a lifestyle choice than One possibility is hosting budgets for not issuing refunds to postponed or a consumer product, which means it will be cut as public sector bodies cancelled races. has fewer direct competitors than some prioritize health spending and social “People are savvy and if you can see obstacle racing events. security. Indeed, 43 per cent of cities them trying to make money in different This standing is thought to insulate surveyed in a recent poll by Burson ways, or taking a policy where they’re Ironman against some of the wider Cohn & Wolfe’s Sports Practice said not going to issue refunds, they perhaps trends in the industry, whereby they thought the pandemic would still start to look for alternatives,” he says. participation at some second-tier mass be hitting sports hosting budgets in “Ironman really is a unique brand – participation events is falling. But it 2021. it’s the Hoover in a way of long-distance also makes it difficult to create new The new investors will hope that triathlon. For me, the next layer is competition derivatives. Ironman’s proven record in attracting making sure they get the passion at head The group created Ironman 70.3 half- large numbers of high-spending office right, with a long-term view. That, distance races as far back as 2006, but competitors and tourists to host cities in itself, could easily build percentage if it shortens distances any further to will encourage existing partners to growth through loyalty and tattoos.” Z

A runner in action during a half Ironman Triathlon in Eilat, Israel. (Artur Widak/NurPhoto via Getty Images)

@SportBusiness | www.sportbusiness.com 47 48 ESPORTS A record setbackinAugust 2018. this monthat4.33million,eclipsing a Peak highs hasalsohitnew viewership January to almost2.5 millioninApril. leaping from 1.35millionpeoplein crisis hit,withtotal average viewership since the curveever a familiarupward have numbers on peak viewership been major western markets. from lockdownsbenefitted inmost game-related content, hasmassively platform thatprimarilyhostsvideo crisis.thriving duringtheCovid-19 industry, to whichisperceived be glancestoward envious few theesports haveposition, there more thana been Callum McCarthy www.sportbusiness.com | that trend viewership isn’tbut esports following Twitch viewershipdoublesoverall, Online gaminghasboomed,but esports isn’tesports immuneto Covid-19 There There has also been a marked increase The platform’sdailyaverage and Twitch, streaming theAmazon-owned in an increasingly perilous in anincreasingly perilous findthemselves and agencies broadcasters,holders, clubs s traditional sportsrights- @SportBusiness

audience now athome,ESL’s now audience numbers often unableto watch. more With ofits is meaning muchofitscore audience during thedaytime onweekdays, always helditsregular seasonmatches properties. Leaguehas TheESLPro Strike:Global Offensive across itsCounter increased viewership ESL hasenjoyed and amore complexpicture emerges. sports. Scratch thesurface,however, to fortraditional audiences reach new mainstream exposure andanability purple patch asaresult ofincreased a that theindustryisenjoying town, is a widespread assumption there form ofprofessional competitionin andpublicity.attracted lotsofattention as theUltimate Quaran-team have also successful andFIFA tournaments such 1 andNascar have particularly been theglobalshutdown.left by Formula lookingtorights-holders plugthegap in esportsactivityfrom traditional revenue suffering from loss of live event Tournament organisersandteams For organiser example, esportsevent Now thatesportsisalmost theonly any extra revenue toany extra revenue hisbusiness, Team on Twitchviewership iscontributing all boats. Asked increased whether players.by ofin-gameitemsin thenumber bought video gamepurchases andanincrease playing of number videogames,ahigher has alsoresulted inmore timespent watchingspend content onTwitch. It increase intheamountoftimepeople lack oflivesporthasprompted astrong lockdown. season matches takingplaceduring forregular wasalsolower viewership before lockdowns began,andaverage peakwell regular seasonviewership North andSouthKorea America saw competitionsplayedLegends in Europe, negligible.Top-tierhas been Leagueof weekends, theimpactonviewership broadcast duringprimetimeandon have consistently been higher. new business with sponsors, butnot with leagues helps Continuation ofesports Norbert Barczyk/PressFocus/MB Media/GettyImages (Norbert But thisrisingtideisnotlifting It’s true thatsocialdistancinganda For thatusually esportsproperties

) ESPORTS Vitality chief executive Nicolas Maurer events will be allowed starting Q3, are aligned with Riot. In other areas, is unequivocal. MTG expects an improved operational they’re not. We’re having those open “No,” he says with a wry laugh. “The performance in [the second half of] discussions.” direct effect of the crisis will be – and 2020, supported by rescheduled Master The fact most esports leagues and clearly is – reducing our income. Every properties and festivals for both competitions have been able to continue esports team will say the same.” ESL and Dreamhack,” MTG said in a in some shape or form, despite the statement to investors. loss of live event revenue, makes the Lost revenue If its assumption is incorrect, the situation manageable, but no better The companies benefitting from the damage could be far worse. than that. lockdown – streaming platforms and Reduced income for tournament “All of the events part of the business games publishers – are benefitting organisers like ESL or Riot Games is completely cancelled for now and because people are buying, playing and has a significant knock-on effect for impossible to do and the merchandising watching more video game content. teams. Income from revenue-sharing supply chain is hit, so it’s difficult These trends signify growth in the video agreements has fallen drastically to keep on going this side of the games industry, not esports. and teams are unable to apply for business,” Maurer says. “From a Vitality Increased viewership and exposure government relief as playing and perspective, we are very well financed are useful, of course, but the financial operational staff are still in work. and we have plenty of time to adapt, but upside barely trickles down to esports- Maurer says: “The ESL Pro League this will inflict a big hit on the smaller reliant companies, which are far more was reformatted over the course of a organisations. It will affect everyone to vulnerable to the wider economic few days and we went through a process different degrees.” effects of the crisis. where we were constantly interacting Modern Times Group, owner of with them. Not going into details, but Sponsorship tournament organisers ESL and of course we’re discussing impact on Though stories of increased viewership Dreamhack, expects revenue from revenue and the way this all works.” and mainstream interest in esports esports to be down by as much as 45 per “It’s all amicable with Riot, we all may have been overstated in the media, cent year-on-year. Live event revenue appreciate the issues they’re going the fact that most top-tier esports has been wiped out by Covid-19 and this through and the issues the teams are competitions have been able to continue forms a huge part of each business, both going through,” says Kieran Holmes- has helped teams manage their existing in terms of direct revenue and providing Darby, chief gaming officer at League of partnerships. exposure for sponsors. Legends team Excel Esports. “In some Brands are aware that activations “Based on the assumption that live areas, the issues that we’re experiencing won’t be as polished as they were

(Norbert Barczyk/PressFocus/MB Media/Getty Images)

@SportBusiness | www.sportbusiness.com 49 50 ESPORTS express consent.” partners times, andwewilldosowhere bitmore inthese just ramp upalittle that wealready sellonthatwecan brand exposure. toengagement gettherightamountof is theopportunityto usesocialmedia players inthe jersey, forinstance.There to produce more digitalcontent with istheability there expressed concerns, thepartners.”which clearlyshow have headshotsorpictures in place would have now they on screen, been theplayers losses.on-screen Wherever done really wellto mitigate alotofthe andbranding inthearena.” jerseys withplayersstudio orarena, inthe We seeingtheliveactionina aren’t ifit’sabitdifferent. good exposure, even are alsogetting the situationandthey inanywaypartners can. they together to maximiseexposure fortheir andteamsorganisers are working ordedicatedarena studio. Tournament playednow onlineinstead ofatan before thecrisis,astournaments are www.sportbusiness.com | Increased digitalactivation isokay awholehostofdigital assets “There’s has He apartner continues: “Where adds:“RiotGameshas Holmes-Darby says:Maurer “Sponsorsunderstand @SportBusiness right now, it’snot alldoomandgloom. the moment.” struggling to at getasmuchdealflow dollars rightnow. are Salesagencies tooaren’t keen to marketing spend becausebrands area ofconcern a bigger delayed atmostcompanies.” sponsorship deals. or Budgetsare frozen let’s say complicated to signnew business. Rightnow, it’scompletely… says. isnew more “What’s concerning so thatpartismostlyfine,”Maurer adapt to make sure westillgetexposure, the crisis. which hasallbutdriedupasaresult of business, also crucialforsecuringnew We’re there.” crossing ourfingers will keep asifitwillhappen. preparing and thisiskey says. forus,”Maurer “We brands.existing partner are importantinconnectingfanswith andphysical activations digital entities than later. Esportsteams purely aren’t rather that thingswillchangesooner alive,butteamspartnerships are hoping for theshort-term andhelpskeep For allthedifficultiesfacing esports says:Holmes-Darby “New businessis “Tournament are tryingto organisers andphysical activationsare Events “We have Paris GamesWeek inQ4, sponsorships right now.” Z cannot activate theirtraditional sports digital activationinesports,because they more couldbedoing even they them ofthecompetition andtell viewership adds. “We thefigures ofthe givethem opportunity –abigopportunity,” Maurer but ontop ofthatwetell it’san them thesituation, comprehend and they says.esports,” Holmes-Darby their marketing dollaroninthisworldis forms oflivecontent canspend they who are keen to doso,oneoftheonly crisis like thisandforthosebrands continue marketing duringtimesof situation. decided to goaheaddespite thecurrent sinceQ3lastyearand the partnerships working had towardsmanufacturer been Esports andT1Entertainment. Thecar Cloud9, Fnatic, FunPlus G2 Phoenix, five oftheworld’stop esports teams: with BMW confirmedpartnerships for thefuture. dealtooccasional new giveteams hope isstillthe cancelledandthere been almostallprofessional sporthas when Competitions are stillactiveatatime “Sponsors understand where we are weare where “Sponsors understand to are brands“There bigenough On April 16, German car manufacturer The most accurate data on media-rights deals you’ll find anywhere plus peerless insight and analysis around every deal

THE MEDIA PACKAGE

RIGHTS TRACKER DEAL STORIES TV SPORTS MARKETS

The database that holds the entire Our team of SportBusiness Media Every fortnight, the deal analyses SportBusiness Media archive of over reporters are always hard at work published by our team of reporters 12,000 of the latest deal values and going beyond the announcement of are issued to subscribers in durations. You can interrogate the a new deal to find you the details and PDF form as the TV Sports data, focusing on sports, properties the context. These long-form stories Markets newsletter. and geographies as you need to. are published regularly online.

DAILY NEWS DATA SNAPSHOTS THE GLOBAL MEDIA REPORT

Our daily news email arrives in your Issued monthly, data snapshots With analyses of the most valuable inbox at 15.30 (UK) every working take a detailed look at interesting sports, properties and markets, our day, keeping you up to date with domains within the sports media Global Media Rights Report is your everything in the world of sports rights industry, like specific go-to annual assessment of the media rights. geographies or sports. media rights landscape.

Request a demonstration at: sportbusiness.com/media Email: [email protected] or call: + 44 (0) 2072 654100 52 ESPORTS N fans whohadnotpreviously followedthestock carcircuit. After several races, Nascar’s newlydeveloped iRacingPro InvitationalSeries isproving to tool beapowerful inreaching Eric Fisher www.sportbusiness.com | drew 903,000 US viewers oncable 903,000 USviewers drew and involvingactual Nascar drivers, SpeedwayMiami 22 stagedonMarch atHomestead-race, avirtualevent world races thisyear. of fanswhohadnotwatched anyreal- competition to hundreds ofthousands Nascar bringingtheesports audience, meansto powerful expandtheoverall a hasalsoproven series the growing property. way to activate withinthemotorsports and givecorporate sponsors another hiatus dueto pandemic, theCovid-19 during theongoingsportsindustry as ameansto fillthecompetitionvoid with iRacingPro InvitationalSeries Nascar beginsto expandaudience The initial Pro Invitational The initialPro Series But after three weeksofvirtualracing, Series, wasinitiallydesigned Series, iRacing Invitational Pro theeNascaresports series, ascar’s newly-developed @SportBusiness its globalmedia distribution. countries asIMGhasaidedNascar with Invitational hasreached 160 Pro Series 2020. Andinternationally, theiRacing watchedpreviously aNascar race in who hadnot viewers 900,000 new thus farhave combinedto nearly attract 1.2 millionviewers. and theBristol an average race drew of television program of alltimeintheUS, thehighest-ratedrepresenting esports average of1.3millionviewers, audience audiences. The Texas an race drew intoand similarpenetration new growth, audience bothoverall shown from Bristol Motorspeedway –have Texas Motor Speedway andApril5 world Nascar race thisyear. those peoplehadn’twatched areal- Media Research. Roughly 255,000 of network FS1,according to Nielsen “We’ve saying been foralongtime All told, thethree virtual races staged 29from races –March Subsequent Monumental Sports&Entertainment, LaLiga,FormulaAssociation, 1, League Baseball,theNational Basketball celebrities. are Major Amongthem or sports, professional gamers, involving athletes from theirrespective to create esportsevents, theirown haveproperties sincealsomoved us asfirstmovers.” and wedon’twant,butithaspositioned intimethatwedidn’taskfor a moment didn’t watch the[Daytona] 500….This is Invitational first weekofthePro Series And 255,000 peoplewhowatched the wegetallyear.the mostcasualaudience Daytona 500[runinFebruary]. That’s also have to putinthecontext ofthe that, ithelpsyourargument. Andyou youstartto“When like seenumbers Nascar managingdirector of gaming. says Warfield,and more diverse,” Scott tool box usto thatallows getyounger that esportsisoneofthosetools inour Indeed, sports alitanyofother (Chris Graythen/Getty Images)

ESPORTS IndyCar and Major League Rugby. Nascar was able to organize the Pro broadcast in the US, and likely reached But Nascar is enjoying a trio of crucial Invitational Series with iRacing, and at least several million people. advantages relative to many of those the real-world event at Homestead- The Pro Invitational Series, properties. First, Nascar has sanctioned Miami Speedway was turned into a conversely, was shown on FS1 on the eNASCAR Coca-Cola iRacing Series virtual one, the Dixie Vodka 150, also cable, and averaged 903,000 viewers. A for nearly a decade, giving it a very long held on March 22 on a virtual version historically strong number for esports, run of experience in the still-emerging of the track. to be certain, and one that again esports space. The deep realism of the exposed the sport to many new fans. But graphics and racing gameplay, powered “People are really starved for not close to a direct, full replacement by motorsports simulation platform and for the exposure the brand would have longtime Nascar partner iRacing, makes sports content, and this is one received. one of the virtual races almost look like of the only games happening “It’s two different things, but this is the real thing. And many Nascar drivers right now.” going to be a great thing for the fan,” were already using iRacing technology Anttila says. “Even when live racing for training and fan engagement Matti Anttila | chief executive, Grain & returns, the iRacing isn’t going away. purposes. Barrel Spirits And providing they can keep up the “We take a lot of pride in this,” driver involvement like they have now, Warfield says. “You’re always looking “It was all very real-time,” says Matti there is going to be value there for a across the aisle at the stick-and-ball Anttila, founder and chief executive brand like ours. This definitely opens up guys and you always want to be first of Dixie Vodka parent Grain & Barrel a lot of possibilities.” movers. But this is a real testament to Spirits. “There were a lot of moving Nascar, too, acknowledges that the iRacing in particular. pieces in those few days leading up to Pro Invitational Series hasn’t replaced “The difference for us is that it’s so the race, with a lot of different options all the lost audience or revenue that has authentic and natural to Nascar. Our top on the table, including racing with no been claimed by the public health crisis, athletes are already using this platform. fans, canceling outright, or postponing. though specific financial figures haven’t This isn’t big, bad Nascar asking drivers Once it became clear the [real-world] been disclosed. And the organization is to do something [they wouldn’t do]. It’s race wasn’t happening, it was a very one of many across the sports industry organic to what they already do, and quick transition to the iRacing. to impose pay cuts. that comes through. As great as NBA2K, “Ultimately, it’s been a success. But given the hundreds of thousands Madden, FIFA or any of those stick-and- People are really starved for sports of new fans exposed to the world ball games are, a big reason I think we’ve content, and this is one of the only of Nascar, and the industry buzz resonated is the credibility iRacing has games happening right now. The Nascar generated by the Pro Invitational with our athletes,” he says. fanbase is also very loyal, and has been Series, the organization is grateful for really supportive of this,” Anttila says. what’s been created. Rapid Shift Anttila, however, is quick to note “This isn’t replacing [all the lost It was certainly no secret that prior to that the exposure for the brand is still revenue], but it’s providing a pretty the arrival of the pandemic, Nascar had markedly different in an esports event. good little jolt to the system when plenty of issues in core revenue drivers The Dixie Vodka 400, had it been everybody was looking for something,” such as race attendance and corporate held, would have been shown on Fox Warfield says. Z sponsorship. And the Pro Invitational Series isn’t going to solve any of those larger issues or replace the lost revenue from cancelled real-world races. But the development of the esports series did mark a rapid pivot for Nascar amid the unprecedented challenge the pandemic brought, and represents a key means to keep both fans and sponsors engaged. Dixie Vodka, Nascar’s official vodka, was on the front lines of that shift. The race it holds the title sponsorship rights for, the Dixie Vodka 400, was the second one on the Nascar 2020 schedule postponed due to Covid-19, with the decision made less than a week before the event was slated to occur. Denny Hamlin, winner of the eNASCAR iRacing Pro Invitational Series Dixie Vodka 150 at virtual Homestead-Miami But within a matter of days, Speedway, does a burnout (NASCAR)

@SportBusiness | www.sportbusiness.com 53 54 ESPORTS “Remote production isextremelydifficult” T Bob Williams to-head NHL20challenges Seattle, are playing inseriesofhead- Players from all 31 teams, as well www.sportbusiness.com | of theNashville Predators andZach include avid Filip gamers Forsberg streaming inisolationfrom theirhomes, league inthe2021-22season. franchise, whichisscheduledto jointhe teams, expansion aswelltheSeattle from all31NHL representatives only esportscompetitionincludes NHL Players’ theplayers- Association, organization ESLGamingandthe pandemic. Covid-19 theglobal competition voidcausedby has designedto helpfillthesports | InsidetheNHLPlayerGamingChallenge The 50participants,whoare Created withesports inpartnership the National Hockey League initiative fan-engagement isthebiggest Challenge’ he ‘NHLPlayer Gaming @SportBusiness numerous digital platforms and being airedonNBCSN, Sportsnet on April 30, the event is Starting available ontheNHLNetwork andthe official leaguewebsite. are also They Facebook platformsaswellthe NHL Twitch, YouTube, Twitter and beginning ofeachweek. April 30.Matchups are unveiledatthe Sundays afour-week over from period Calgary Flames. Matthew,his brother whoplays forthe SenatorsTkachuk oftheOttawa took on consoles. In oneearly match-up, Brady 20 gameonSonyPlayStation 4gaming head matches usingtheEASports’NHL upinOntario. growing Seahawks, whoplayed icehockey fortheNFL’s tightend Willson, Seattle isrepresented Luke by NHL Seattle Hyman oftheToronto Leafs. Maple The gamesare broadcast onofficial Games are played onThursdays and are takingpartin16head-to-They personal brands during Covid-19 engage fansandbuild players’ wayto Competition an important ‘Greatest Moment ofthe2019-20 NHL coronavirus crisis. Thisincludesthe and keep amidthe fansengaged NHL initiativescreated to stay relevant Foundation’s relief efforts. Covid-19 $100,000 insupportoftheCDC Electronic Artswilldonate acombined NHL Foundation andNHL20publisher since2018. esports property NHL GamingWorld Championship tournament. Honda hassupported the partner, isthetitlesponsorof respective digitalplatforms. while allgamesappearonthenetworks’ States inCanada, andSportsnetOne NBCSNintheUnitedbroadcast by NHL Network Twitch channel. The esports event isoneofmany The esportsevent too. isacharityelement, There The Honda, theNHL’s official automotive In addition,selectgamesare being

ESPORTS Season…So Far’ fan vote initiative and gaming in general, we’re in the midst of have that philosophy to want to reach live NHL Player Q&As, which have our third season of our Gaming World out, branch out, and to create more of offered NHL fans daily interactive Championship. That’s taken up quite a touchpoint with the fan, especially experiences via the league’s official a bit of our time in the past couple of the millennial. We’ve seen a number of Twitter and Instagram channels. years, setting that strategy in place. players running their own streams, on There has also been a trivia-based We’ve done quite a bit also once the their own channels or on other channels digital game show, hosted by New pause hit, between us and our clubs and they’ve been invited on. Jersey Devils defenceman P.K. Subban, our players….everybody has been active From a league perspective, we wanted which features fans, celebrities and [in the gaming space]. to take this opportunity with the NHL NHL players. In addition, the league Obviously the social distancing has Player Gaming Challenge to engage with has set up a series of video conference increased the amount of gaming that’s the fans and the players, knowing the calls between players/executives and been happening. Clubs have launched players have more time on their hands journalists to help provide content for than they typically do. A lot of them media companies. are gaming and we also reached out to NHL teams have already turned to the clubs and the Players Association esports in different ways during the to try to create a full league initiative. indefinite hiatus. Last week, NHL greats We could have gone down the route Wayne Gretzky and Alex Ovechkin faced of having a 16-player tournament but each other in a best-of-three Xbox NHL we felt like now was the time to show 20 showdown, from which they raised that our league will come together for $41,000 for Covid-19 relief efforts. something like this. Around 286,000 fans tuned into the To start this off, it was a lot of livestream on the Washington Capitals’ folks coming together: the Players Twitch channel. Association, the NHL, our clubs, agents Meanwhile, the Columbus Blue “These streams are meant to be were reached out to as well to align Jackets recently introduced CBJ casual, lean-back experiences here, EA Sports as the game publisher, Gaming, a new initiative to engage and ESL who is our partner here from fans through esports livestreams, where the players are talking a production standpoint. So they [ESL] tournaments and more. Elsewhere, about hockey and their lives off are the ones who are orchestrating regional sports networks NBC everything, making sure all the players Sports Washington and NBC Sports the ice.” have all the proper equipment, which Philadelphia have been respectively Chris Golier | vice-president of business is no small feat considering a lot of simulating Capitals and Philadelphia development and innovation, NHL the guys are in different households Flyers games that were meant to be and places that they don’t have set played in the remainder of the 2019-20 up with the right equipment. Remote regular season through NHL 20. their own tournaments during the production, as we’re finding out, is The NHL follows a litany of other pause, those are ways to engage their extremely difficult but it’s doable. But sports properties to created esports local community and local gamers. with all those entities, we’re able to events involving athletes from their This is partly due to the pause, but they create this Player Gaming Challenge. respective sports, professional gamers or celebrities to help fill the competition void. Among them are Nascar, Major League Soccer, Major League Baseball, the National Basketball Association, LaLiga, Formula 1, IndyCar, Major League Rugby, the English Premier League, the United Soccer League, Liga MX and Relevent Sports Group. SportBusiness Review spoke to Chris Golier, NHL’s vice-president of business development and innovation, about how the NHL Player Gaming Challenge was put together and what it is looking to achieve.

What was the process of putting this esports competition together? We have a long-standing strategy for

@SportBusiness | www.sportbusiness.com 55 56 ESPORTS expansion team isinvolved? thattheSeattle Why isitimportant could becalledatanytime. a tournament]: thefactthatplayers season plays aparttoo [innotstaging able to ofour starttheremainder can’t waitto comebackontheice. and are thinkingofthem they fans know questions, have somechit-chat andlet couldhavethey some some fun,answer we alsowanted to make itcasual,so that insomeofthetapingsthusfar. But theplayersbetween andwe’veseen isacompetitivespirit there as weknow are workingout… they some cases,how with theirkidsandhomeschoolingin hockey and their lives off the ice, dealing talkingabout are chatting, they’re theplayers where lean-back experiences that created achampion. important to atournament usversus players wasmore andtheirpersonalities individual streams andhighlightingthe represented. We feltlike having was importantthatallclubswere afullleagueinitiative,wefeltit As Why didyouadoptthisformat? than atournament withachampion. This isaseriesofgames,rather www.sportbusiness.com | The unknown of if and when we’re ofifandwhen The unknown We wanted to make itcompetitive, These streams are meantto becasual, @SportBusiness “We thinkthatthiswillhelp marketing andpromotional standpoint. are tryingtofor whatthey dofrom a to itseems general, fitthedemographic interest inesportsandgaming from thebeginning. have They abig Championship, Honda there hasbeen ourNHLGamingWorldWith to titlesponsor this? How didHondabecomethepartner It’s agreat way to forthem getinvolved. said,‘yes,itwouldbealotoffun’. they announcedyetand name thatthey’ve to date don’thave they alogoorteam wantedthey to take that partknowing We didreach outto andaskif them becomeanofficialfranchise. they when haveThey activefor been certainly development andinnovation, NHL Chris Golier|vice-presidentofbusiness reaching outtofansin players more comfortable players different environments.” different general butalsogetour general spur growth inesports spur growth When we announced what we were we announced whatwewere When different environments. Z different comfortable reaching out to fansin more also withourplayers getting but inesportsgeneral spur growth ground, wethinkthatthiswillhelp more withthisenvironment. a little and somehockey clichés. Ithinkyouget seetheinterviewssee. They post-game thatfansdon’ttypically are elements having agoodtime,storytelling…these and off, competingagainsteachother the screen. about gaminganditcomesthrough on it. Alotofourplayers are passionate brands, it’sagreat waypersonal to do fan andfortheplayers buildingtheir our strategies to talkto thatyounger our outletto it’soneof millennials, important touchpoint forfans. It’s is importantasweseegamingan really spectacular. good atthis,andtheoneswhowinare involved inourtournaments –are really those whoare playing –thekidsgetting exposed to that itandunderstand Absolutely. Themore peopleget NHL’s efforts? esports be increasedornewinterestinthe Do youthinkafringebenefitcould up anotch, too. far andI’mhopefulthatwecanbringit leagues have doneareally nicejobthus linear supportforallofthis. Theother reasons I’veexplained.It’s great to see thanatournamentstreams rather for We of are theonlyoneswithaseries twisttodifferent are doing. whatthey tournaments, eMLS, hasa everyone watching [NFL] NBA2K, Madden isagoodthing.general Ifyou’vebeen Anything thatexpandsgamingin during theshutdown? into competitiveesports efforts organizations’recent other sports have youbeenby How heartened here. quarantine period ofsponsorsupportduringthe show It’s alsoimportantforusto have the thrilledtoso wewere have them. we’re doing, thecharitablecomponent, was ofinterest to like they them, what Honda raised theirhandrightaway, it doing, and selectpartners wehadafew We’re to really happy getthisoffthe To seeourplayers withtheirhelmets For ourplayers involved us,getting GOVERNANCE Global Athlete report criticises IOC revenue distribution to athletes

Competitor-led movement recently Report has led to callls for collective The International Olympic Committee published report on how IOC bargaining agreements to be put in describes certain key points in the distributes its revenues place for athletes report as “plain wrong”

(Tomohiro Ohsumi/Getty Images)

Ben Cronin to competitors, 4.1 per cent of IOC inception, the IOC has transformed revenues “end up directly in the pockets from a charitable organisation operating ompetitor-led movement of athletes”. with donations from individuals and Global Athlete has published The study was compiled by the governments to a multinational non- an explosive report into the athlete body together with Ryerson profit funded entirely by broadcasting way the International Olympic University and the Ted Rogers School and licensing deals, with average annual CCommittee distributes its revenues, of Management, and calls for the revenues exceeding $1.4bn (€1.2bn). accusing the organisation of a lack of introduction of collective bargaining “By maintaining its non-profit status financial transparency and claiming that agreements so that Olympians can and shedding the largest expense of it spends just 0.5 per cent per cent of its be “appropriately compensated” for most sports leagues, their athletes, the income directly on Olympic athletes. appearing at the Games. IOC has become hugely profitable with The report, Olympic Contacted by SportBusiness Review, its fund balances rising by an average Commercialization and Player the IOC disputed the results of the $140m annually since the IOC began Compensation, also estimates that, study, stating that the claim that making their finances publicly available when taking into account money athletes receive just 4.1 per cent of in 2014.” distributed to National Olympic revenues is “plain wrong”. The IOC retains its non-profit status Committees which is then passed on The report states: “Since its by maintaining that its sole purpose

@SportBusiness | www.sportbusiness.com 57 58 GOVERNANCE similar proportions to competitors as 205NOCsallocatethat theother NOCs.other Basedonanassumption directly on athletesthat are spent by proportion ofIOCrevenuesoverall from theUSOPCto extrapolate the accounts. labelled scholarshipsinitsmostrecent directly to athletes inthe formof allocated ofitsfundswere cent per and athlete only0.5 development, onsport ofitsrevenues cent 90 per although theIOCclaimsto invest thestudysaysannual report, that is going.” difficult to thismoney where decipher publicly, whichmakes more iteven theirfinancialinformationreport donot manyofthem considering information ontheseaffiliates which alsomuddiesthepicture. Paralympic fundingintheiraccounting and Paralympic Committee,include money. like Others, theUSOlympic fundinginadditiontogovernment IOC allocate themoney. Somereceive exact comparisonsasto they how structure makingitdifficultto make incommercialfor instance,differ directly orindirectly. ButmanyNOCs, the fundsto supportingathletes either Movement aproportion of anddivert to promote sportandtheOlympic themoneycharged withspending andsize. on audience system share inatiered smaller based programme receive amuchOlympic additionstowhile themostrecent the and skiingreceive thelargestsums, largest sportslike athletics,swimming andAWOIF.associations ASOIF The channelled through theirrespective alsoreceive IOCfunding,federations winter Olympic andseven federations Solidarity Programme. throughCommittees theOlympic and 206individualNational Olympic to Programmes itsfiveContinental through avarietyofdisbursements itsfundsinstead diverting Olympics, athletes directly forcompetingatthe sports”. It doesnotcompensate is to “foster international amateur www.sportbusiness.com | The authors then usetaxfilingsThe authorsthen Through analysingthelatest IOC states:The paper islimited “There All oftheseorganisationsare sports Olympic The 33summer @SportBusiness “Although disclosingitsinternal cent ofrevenues). cent League(60.3 and theEnglishPremier per oftotal cent Baseball (50.1per revenue) League organisations suchasMajor with athlete inother compensation compares unfavourably this period estimates athletes to have earnedduring it ofIOCrevenues cent that the4.1per of $1.74bn. argues thepaper However 2016 withanaverage annualrevenue from 2013to rank eighthfortheperiod saysin theworld,report itwould the biggestfor-profit sportsleagues sports league”. and makes itmore akinto a“for-profit charitableorganisations from other and sponsorshiprights,setsitapart funding, namelyfrom sellingbroadcast onprivateIOC’s largedependence goesontoThe paper arguethatthe “For-profit league” sports through theseaffiliate organisations. directly inthepockets ofathletes” up “end ofIOCrevenues cent 4.1 per the USOPC, thestudyestimates that IOC sessioninLausanne inJanuary2020.( and PlayerCompensationreport to shareholders.” Olympic Commercialization Global Athlete |OlympicCommercialization companies...must then answer companies...must answer then for theIOC, mostpublic finances is a huge step forward forward finances isahugestep The report continues:“Theestimated The report Were theIOCto becompared with OIS/Joe Toth ) disparity in funding received by the disparity infundingreceived by NOCs.” ofathletesthe development andthe NOCs wouldbemore usefulto aiding Perhaps to directing thismoney the are noexamplesreadilythere available. but specific needsoftheircontinent specificprogrammes forthe develop programmes may setasidefundsto Movement. in theirgoalofpromoting theOlympic aidtheNOCs Programmes Continental the itisunclearhow each continent, of statutory meetings of NOCson finances. Excluding theirfacilitation OSandNOCstobetween allocate whichactasamediatorProgrammes halfofitsfundingonContinental over Movement.Olympic individual NOCsandpromote the Solidarity (OS) fundingto support Olympic Committees whichdivert Olympic for theIOC’sfiveContinental particularcriticism reserves The report Continental Programmes organisations affiliated withtheIOC.” financing the many internal and external the majorityofthesefundsgotowards athletes, compensating earned revenues athletes cannotnegotiate. which successful competition,numbers scholarships, grants, andawards for the pockets ofathletes ismostly through updirectly in whichdoesend cent 4.1 per There isalsocriticismforthe There “The IOCwebsite states the The studysays: just “OSspends “Instead itsprivately ofspending GOVERNANCE USOPC in comparison other NOCs. “All of the largest sports leagues to give athletes a greater say in the The paper claims that the body received Olympic movement and allow them to $404m from the IOC in the last in the world feature collective derive more commercial benefit from quadrennial, leaving $740m to be shared bargaining agreements and competing in the Olympics. by the other NOCs. unions which clearly define Last June, the IOC was forced to It states: “The United States Olympic amend its controversial Rule 40 clause [and Paralympic] Committee represents the rights [of] both the players which governs athlete endorsement one of the most lucrative markets in the and the leagues.” deals when competing at the Olympic world and receives a disproportionate Games and which serves to protect Global Athlete | Olympic Commercialization amount of funding in consideration of the exclusivity of Olympic Programme and Player Compensation report its population at 35 per cent of total sponsors. NOC revenue. A ruling by the German Cartel Office “Yet, this allocation of funding The report reads: “Although deemed that the clause was “too far- places NOCs with less financial clout disclosing its internal finances is a reaching” and lifted the obligation on at a funding disadvantage in terms of huge step forward for the IOC, most German athletes to clear their personal training resources they can provide public companies required to distribute marketing activities with the German their athletes and their relative success. these types of filings must then Olympic Sports Confederation ahead Directly compensating athletes equally answer to shareholders regarding their of the Games. or reimbursing them for their own publications. Subsequently, the IOC has devolved training expenses could alleviate these “Unfortunately, the organisation responsibility for setting Rule 40 discrepancies in funding allotments.” is not obliged to undergo this type of guidelines to each of its 206 National review due to its lack of shareholders. Olympic Committees. However, Global Financial transparency If the IOC is a non-profit organisation Athlete said just 10 out of 206 NOCs The IOC began publishing its accounts with the goal of contributing to the have relaxed their Rule 40 restrictions in 2014 as part of a drive to increase world of sport, it can go much further since, and that the resulting patchwork transparency under president Thomas to reassuring the public and all of its of conflicting guidelines creates an Bach’s Agenda 2020 reforms, but the stakeholders of its values.” uneven playing field for Olympians. study calls on the organisation to go The IOC and some NOCs have The report referenced a 2013-14 further. faced mounting calls in recent years study that Canadian athletes spent

Women’s Marathon at Rio 2016 Olympic Games (The Asahi Shimbun via Getty Images)

IOC session in Lausanne in January 2020. (OIS/Joe Toth)

@SportBusiness | www.sportbusiness.com 59 60 GOVERNANCE and isbasedon revenue-sharing. solidarity inits widest possiblesense Movement isbuiltonthemodelof athletes.only Olympic playing ofeveryone benefit sport, not and sportworldwideforthe of athletessupport thedevelopment tosaid theIOCusesitsrevenues LanaHadad officer IOC chiefoperating mission. ofthebodyandits misunderstanding’ around it,suggestinga‘profound andthecommentaries report aripostedelivered to GlobalAthlete’s The International Committee Olympic response International Olympiccommittee compensation.” athletes to switch team forbetter toleverage theabilityofprofessional similarorgreaterwould provide team to abstainfrom anOlympics the athletes withinasportornational situations. In addition,thethreat ofall and professional athletes insimilar the playing amateur field between to inorder or nationallevel level insurmountable. comparisonbutitisnotcomplex by ismuchmoresports attheOlympics the worldcompetinginnumerous thousands ofathletes from around to negotiate. change teams to increase theirability the samesportswhohave theabilityto similar geographical locationsplaying yet theseexamplesfeature players in boththeplayers andtheleagues, [of] unions whichclearlydefinetherights andcollective bargainingagreements sports leaguesintheworldfeature and sportsinvolved. ofnationalities thehugenumber given organising athletes into unifiedaction thedifficultyinacknowledged alsoagreements. Butthepaper to secure collectivebargaining threaten theOlympics to boycott prospect thatathlete groups could ambitionsandraised theOlympic their annualincomepursuing approximately $15,000inexcess of www.sportbusiness.com | “The entire structure oftheOlympic“The entire In to an articleoffered themedia, couldbeginatasport“Organisation “The difficultiesoforganisingthe states:The report “All ofthelargest @SportBusiness International Athletes Forum. atlastyear’s endorsed model hadbeen athletes,” shewrote addingthatthe theIOCissupporting thefederations, andtheInternationalCommittees supportingtheNationalby Olympic successoftheGames.commercial So, these teams whichparticipate inthe Games aspartofateam anditis shesaid. them,” as weknow sports andbestathletes only. would belimited to themostpopular GamesorganisedforprofitOlympic of professional leagues,shesaidan model cannotbecompared to those scholarships.” team grants andindividualathlete (NOCs), through whichitdisburses as 206NationalCommittees Olympic organisations around theglobe,aswell Federations (IFs) sports andother sportsandtheirInternationalOlympic model, theIOCdirectly supports40 around theworld.Through its of athletes and sport atalllevels aswellthedevelopmentOlympiad) 2.5billioninthelast Games (USD supporting thehostsofOlympic day, isredistributed,” shewrote. ofUSD3.4millionperthe equivalent orUSD 5billioninthelastOlympiad oftheIOC’srevenues, cent Ninety per Flag bearersatRio2016Parade ofAthletes ( She alsodismissed anysuggestion “Athletes compete attheOlympic “It Games would notbetheOlympic financialArguing thattheOlympic gotowards“These investments Joe McNally /Sports Illustrated viaGettyImages Joe McNally/Sports are allcompensated differently.” Z each athlete isnotthesame,andthey and clubs:thevalueofeachteam and Games. Take theprofessional leagues 3,000 athletes Winter fortheOlympic athletes Gamesandby forthe Olympic 11,000just divideXmilliondollarsby not besimplemaths:theIOCcould each athlete, team andsport. It would valueproposition ofthe commercial Games. This wouldmeancalculating the IOCfortheirparticipationat for athletes to becompensated by had to enter into collectivebargaining ableto iftheIOCwere even doso,and athletes directly. Butlet’simagine, the IOCisnotableto remunerate each other. would pitch athletes andsportsagainst of collectivebargaining, arguingthatit Lana Hadad,IOCchief operating officer “The not-for-profit modelmeans ) MARKETING “Change is hard” – Los Angeles Rams refresh brand identity to mixed reception

NFL team redesigns its logos and Unveiling resulted in swift backlash, Rams executives hope fans will colors ahead of move to $5bn SoFi with Hall of Famer Eric Dickerson grow to appreciate new marks in Stadium this year leading criticism the long-term

(LA Rams)

Bob Williams company Nike, plus consultation with “This product will hardly sell,” the team’s players and supporters. Dickerson told the Los Angeles Times. o coincide with their move to a The new look retains the team’s “It’ll sell nothing. I don’t care if it’s new stadium, the Los Angeles iconic horn logo, which has been a part three years from now, it still won’t be Rams have unveiled a dramatic of the franchise marks since 1941, and selling because it doesn’t look good. new look. revives the royal blue and yellow colors, It’s ugly…When you put out a brand- TAfter returning to Los Angeles from which the team played in for most of new logo and product for your team St. Louis, Missouri, in 2016, the National its first tenure in LA between 1946 and you expect it to be in the top five [to] Football League team is scheduled to 1994, though with updated tones. 10 [among NFL teams] in merchandise begin play this year in its transformative “The most exciting part of this for sales, and I’m willing to bet that this will new facility, the $5bn (€4.4bn) SoFi me, and I hope for Rams fans, is it be at the very bottom. If I’m wrong, I’ll Stadium and surrounding entertainment blends the best of our pasts with what be the first one to say I’m a jackass and district in Inglewood, California. we believe is the best of our future,” I’ll shut my mouth and say I don’t know To symbolize the franchise’s fresh Kevin Demoff, the Rams’ chief operating what the hell I’m talking about. But I’m start in the state-of-the-art venue – officer, told ESPN. willing to bet this will be damn near which will become the world’s most The redesign, however, has generated dead last in sales.” expensive sports complex when it opens a distinctly mixed reception since it was The Rams, for their part, have not – the Rams have undertaken a brand unveiled on March 23, with Rams legend shied away from this blowback. Demoff refresh that includes new colors, logos, and Pro Football Hall of Fame member even read aloud the top 10 mean tweets uniforms, and helmets. Eric Dickerson becoming a leading he received about the logos after a The design process was a two-year critic. Notably, Dickerson is a current virtual telethon for local charities in effort, which involved the creative Rams employee, having been appointed relation to the coronavirus pandemic teams of the National Football League, the team’s-vice president of business raised more than $2m. the Rams, leading sports apparel development in 2017. More seriously, Demoff also

@SportBusiness | www.sportbusiness.com 61 62 MARKETING ‘home’, our owner [Stan‘home’, ourowner Kroenke] looks. We thatincoming back knew marksand combination ofdifferent yearsago,wecarriedwithusa a few backto wemoved When LosAngeles brand identity? Why have theRamschangedtheir process behindthebrand refresh. Zarate-Bayani aboutthethinkingand Rams’ chiefmarketing Ronalee officer branding intime. to andappreciate love theupdated are hopefulthefanbasewillgrow unveiled inmid-May, Rams executives passion.” andappreciateand engagement your always through feedback getbetter our stadium,butrecognize wecan the future ofourteam, ourbrand & tweeted.Demoff “We are excited about have onthelogo&colors,” provided hear, you wevaluethecommentary logo wouldbedropped. Buthedidnotsaysome fansdown. the thattheRamsacknowledged hadlet www.sportbusiness.com | How thenewbranding willlookatSoFiStadium( spoke to the SportBusiness Review uniformsandhelmets new With itisn’talways“While theeasiestto @SportBusiness LA Rams) LA “We foundthehornswere an organizationandabrand, wewantto sports andentertainment worldwide.As thestandard for stadium thatissetting is investinginastate-of-the-art new officer, Rams LA centerpiece wedecidedto centerpiece anchor on.” sacrosanct. Thatwasthe Ronalee Zarate-Bayanimarketing |chief in and are representing itappropriately.in andare representing thatyou’re theenvironment understand likese, butrather anygoodbrand you that, it’snotnecessarilyadeadlineper you standfor. Andifyouthinkabout best ofyourself,youwantitto bewhat into...as abrand youwantitto bethe thatwe’re walking the environment It makes thatif you thinkabout sense fixed deadlineto workwith? to thenewstadium,givingyoua new logoto coincidewiththemove Was therealwaysaplanto unveila consistent way to thefuture? represent andcarriesitforward ina we’ve been thattakesidentity thebestofwho looks.many different Sowhatisthat carrying withyouacombinationof in, incomingbackhome? thefuture thatwe’re investing represent and doweshow through. Andhow our past,andwhathascarriedus who weare from ourhistory, respecting think aboutwhatitmeansto represent toenvironment thebestofourselves. make sure thatweare stepping into that It’s hard to youare dothatwhen toBut inorder dothatyouhave to MARKETING

The redesigned logos are already on new merchandise (LA Rams)

How would you describe the process Those two things – the horns and “The second thing from to come up with the new colors and the colors – was the base, along with logo? our brand strategy, our brand approach the interviews and focus It was distinct in the sense that this and brand identity, and then bringing groups was there was an is the first time that we’ve brought together great and creative minds overwhelming love for the numerous stakeholders together to together to look at the process from be part of the process. We’ve worked beginning to end. royal blue and yellow.” with the NFL creative team, the [This was] versus in the past, for Ronalee Zarate-Bayani | chief marketing Nike internal creative team, and a other teams...folks would come in at officer, LA Rams global creative agency from the very different elements of the process, rather beginning to build a brand foundation than everyone coming together from and from there to start to build the start to finish. How would you describe the new colors, the marks that make sense, and uniforms and helmets? then go into uniform. What do you make of the mixed fan Vibrant, progressive, sleek, and a way It was a process that was inclusive response thus far? that we’ve respected the past but also from the very beginning and all Change is hard. We’ve moved as an cognizant of the future. throughout that we would have organization and with that our identity numerous stakeholder interviews and has evolved a few times. When you Will it be possible to publicly unveil conversations with focus groups and change your identity in a meaningful the uniforms in the current climate? fans – fans who have been with us for way, it’s very hard as people identify As you can imagine, we’ve had some numerous decades, new fans, former with a certain identity. That said, I think really big plans for our brand and players, new players. All of that had there was a lot of thought put through uniform launch. The reality is we have input into where we were going. it and the connective tissues and the to be nimble. We are staying abreast The interesting thing we found things our fans asked for are at the of the climate, day by day and week by through that process was that the horns center of it all. week, to understand what’s best. were sacrosanct. The Rams were the Of course, as an organization you first NFL team to brand helmets with Are you selling merchandise with the want to bring your fans together and painted horns, which has carried through new logos already and if so, how are celebrate together, but in the current our identity for decades. That was the sales going? climate we have to do what is right centerpiece we decided to anchor on. Yes, we are selling online. Given the and what is best for our fans and our The second thing from the interviews environment [in regards to the Covid-19 communities. If that means we will have and focus groups was there was an pandemic], I think we are going to be to do it virtually, then that is what we overwhelming love for the royal blue and selling online for a while. They are going are going to have to do. Ultimately, it’s yellow, so that became the foundation of really well, definitely as expected. So about bringing our fans together in the the colors we worked from. we’re really excited about that. best way possible. Z

@SportBusiness | www.sportbusiness.com 63 1196997452, Alex Davidson 1200165290, Matthias Hangst

Stunning coverage from 50,000 events every year including the world’s major tournaments and competitions. An unrivalled archive of 25 million sports images including partner content AT from the world’s most prestigious clubs and rights holders. THE Partner with us for editorial or commercial use gettyimages.com/sport HEART @gettysport OF SPORT

1200673339, Darrian Traynor

1198868616, Shaun Botterill

1198488804, Dean Mouhtaropoulos