Page 48 Page ULTIMATE SPORTS SPORTS ULTIMATE CITY WINNERS’ SUPPLEMENT ] PAGE 6 [ Page 28 Page LEAGUE UEFA CHAMPIONS UEFA THE BUSINESS OF THE cultures Clash of Clash of FACES THE UNITED 2026 THE UNITED 2026 FACES MOROCCO BID IN A PIVOTAL WORLD CUP VOTE WORLD BID IN A PIVOTAL JUNE 2018 NO.242 2018 JUNE Page 20 Page HOST VENUE, ’S VENUE, MOSCOW’S HOST INSIDE WORLD CUP INSIDE WORLD OTKRITIE ARENA OTKRITIE Page 18 Page BUDWEISER’S ACTIVATION PLANS ACTIVATION WORLD CUP WORLD

SportBusiness International • Issue number 242 • June 2018

N o . 242 : JUNE 2018 3

Editor Ben Cronin [email protected] Contents Commissioning Editor Adam Nelson [email protected]

Chief Sports Writer Frank Dunne 20 US Correspondent Bob Williams

Head of Product Matthew Horsford 06 Head of Content MOROCCO 2026 Richard Welbirg North African country outlines Creative Director the economics of its bid for the Judy Kenny 2026 Fifa World Cup Production and Distribution Manager Craig Young 10 Media sales COMMENT [email protected] Robin Hume Ex-Synergy CEO Tim Crow on

Information sales Fifa's sponsorship problems [email protected] Max Frew Laurence Burton 12 Scott Longhurst UNITED 2026 Patrick Odling 6 Leaders from the joint US, Director of Sales Tom McMullen Mexico and Canada bid for the World Cup make their case Head of Group Business Development Paul Santos 52 BEST OF THE REST Head of SportBusiness Group 16 48 Ben Speight SPONSORSHIP & MARKETING A selection of winners from across the Ultimate Sports City categories www.sportbusiness.com/sportbusiness- The best of Sports Sponsorship international Insider Published by: 58 SportBusiness, a division of SBG Companies ONES TO WATCH Ltd, 133 Whitechapel High St, London E1 7QA 18 The Ultimate Sports Cities of the T: +44 (0) 20 7265 4100 BUDWEISER F: +44 (0) 20 7265 4220 future Beer brand outlines its World Registered address: Park House, 116 Park Street, London, W1K 6AF Cup activation plans 60 Printed in the UK by Pensord Press ROUNDTABLE www.pensord.co.uk The paper used within this publication has 20 The Ultimate Sports City judges been sourced from a Chain-of-Custody VENUES & FACILITIES discuss the future of mega events certified manufacturer, operating within Inside World Cup host venue 38 international environmental standards HEADLINER such as ISO14001 and EMAS. This is to ensure Moscow's Otkritie Arena Francis Tellier on the creation of 66 sustainable sourcing of the raw materials, COMMENT sustainable production and to minimise our Host Broadcast Services carbon footprint. 28 Richard Clarke looks at Matchroom CHAMPIONS LEAGUE and Perform's American boxing SportBusiness International is published monthly © SBG 48 venture and how fan channels are Companies Ltd 2017. All rights reserved. No part of this Business case study examining publication may be reproduced or transmitted in any ULTIMATE SPORTS CITY revitalising coverage of the sport form or by any means, or stored in any retrieval system the commercial health of the Introduction to the 2018 Ultimate of any nature without prior written permission, except Champions League and Fifa's for permitted fair dealing under the Copyright Designs Sports City report and Patents Act 1988. Application for permission for use plans to revamp the Club World of copyright material including permission to reproduce Cup extracts in other published works shall be made to the publishers. Full acknowledgement of author, publisher and 50 source must be given. ISSN 1757-5346. 34 THE WINNER Stakeholders from the 2018 MEDIA NEWS & ANALYSIS Ultimate Sports City explain the The best of TV Sports Markets secrets of its success

06.18 : SportBusiness International

03_contents.indd 3 25/05/2018 10:13 4 SNAPSHOT

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

SEXY FOOTBALL BLATTER BACKING NUMBER CRUNCHER The Argentinian Football Federation has Sep Blatter has come out in support of apologised after it handed out a manual that the Morocco 2026 bid but the country included advice on how to seduce Russian probably wishes he had stayed quiet. The women at the World Cup. The manual, which former Fifa president proved as useful was handed out to players, journalists and an ally to the North African country’s coaches during a free course about Russian campaign as Donald Trump has to the $ bn culture that the federation was hosting in United 2026 bid when he sent out a preparation for the event, included a section tweet declaring Morocco the “logical entitled: ‘What to do to have a chance with host” for the World Cup. In another United 2026’s projected revenues for a Russian girl’. The manual advised readers interview with the BBC, Blatter also a jointly-hosted14 World Cup between to “make sure you’re clean, smell good and intimated that a single country hosting the US, Mexico and Canada. Including dress well”, and to “be selective”. Another the tournament was preferable to a co- overheads, the bid claims this would section said, “because Russian women are hosting model. The former president’s allow $11bn profi t. Morocco claims its beautiful many men only want to sleep with stance may be explained by the fact that $5bn profi t is more realistic. them...the advice is to treat the woman in the investigations into corruption at Fifa (Page 6-14) front of you as if she is someone of value”. were instigated by US law enforcement The federation said the material was agencies after the country controversially included in the manual by mistake and did lost out to Qatar in the race to host the GOOD MONTH: not reflect its values. Z 2022 tournament. Z UK BETTING FIRMS

Shares in English betting firms surged after the US Supreme Court overturned a federal sports-betting ban, opening TWEET OF THE MONTH the door for these companies. The day after the ruling, William Hill shares were Donald J. Trump @realDonaldTrump trading 10.71 per cent higher; Paddy Power 12.25 per cent; and 888 shares 15.39%. Two The U.S. has put together a STRONG bid w/ Canada & days after, Churchill Downs, the racing, Mexico for the 2026 World Cup. It would be a shame if gaming and casino company behind the Kentucky Derby, agreed a deal with countries that we always support were to lobby against the SBTech to manage an iGaming platform U.S. bid. Why should we be supporting these countries when they don’t and sports betting products. support us (including at the United Nations)? 4:39 PM - 26 APR 2018 24K 23K 99K BAD MONTH: BT SPORT As if the vote to decide on the hosts for the 2026 World Cup wasn’t politicised enough, US President Donald Trump offered a threat UK telco BT, which operates pay-television to those Fifa members associations thinking broadcaster BT Sport, announced plans to of voting against the United 2026 bid with cut around 13,000 jobs over the next three this tweet at the end of April. Fifa responded years as it admitted its structure was too by issuing a reminder of World Cup bid complex and “overweight” when compared rules. Those rules warn against: activities by with rivals. The announcement came as the bidding country governments which ‘may company revealed fourth quarter and full- adversely affect the integrity of the bidding year financial results for the period ending process and create an undue influence on March 31, 2018. Revenue fell by one per cent the bidding process’. Z year-on-year to £23.723bn (€27bn/$32.6bn) while reported profits dropped by two per cent to £7.505bn and net debt increased by £695m to £9.627bn. Z

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04-05_Snapshot.indd 4 23/05/2018 17:31 SNAPSHOT 5

SAUDI ARABIA PEDDLES POWER PARTISAN LEANINGS UNDERMINE FIFA VOTE Ben Cronin, Editor

In the foreword to Fifa’s guide to bidding for the 2026 World Cup, explains the governing body’s rationale for changing its host selection process. With carefully chosen words, the Fifa president argues that the procedure “must not be open to even one iota of doubt” and that “it is FIFA’s responsibility towards the world of football” to conduct the bidding “in an ethical, transparent, objective and unbiased way”. Four commendable objectives of which the governing body might struggle to deliver three under its new voting regime. In taking the decision The New York Times reports that Saudi Arabia is one of the biggest investors in the away from the opaque deliberations of it’s 22-man consortium that has offered Fifa $25bn (€21.4bn) to reshape club and international Executive Committee and introducing an open ballot football. The country could also have a big influence on the vote to decide the 2026 World of its member associations it has certainly added Cup after it was said to have created a new regional voting bloc consisting of 10 South transparency to the race to secure its showpiece Asian and Arab countries, even though this is in contravention of Fifa guidelines. Carlos event. But that transparency threatens to reveal Cordeiro, the president of US Soccer, has reportedly travelled to Saudi Arabia to make some embarrassingly partisan leanings when the a pitch to leaders within the new South West Asian Football Federation. The Arab state votes are counted at the Fifa Congress on 13 June. also served notice of its ambitions to create a modern economy and wield more influence “We’ve gone from effectively what was a through sport when it signed a ten-year agreement with Formula E to host the electric financially influenced voting system to now, arguably, motorsport series in the city of Riyadh. Z a politically influenced voting system,” says Simon Chadwick, professor of sports enterprise at the University of Salford. He predicts countries will mostly ignore the technical merits of Morocco and the United 2026 bids and vote along familiar DAZN USES BOXING AS BATTERING RAM IN USA geopolitical lines when they come together at the The Perform Group had a headline-hogging month as it announced a joint venture with Moscow Expocentre. Matchroom Boxing to bring 16 fights to the USA on its DAZN streaming service. The Fifa has already had to refer to rules forbidding company plans to use the boxing deal as its way into the US market and to shake up the political interference in the campaign after Donald pay-per-view model in boxing. In the space Trump tweeted to ask why the would help countries that didn’t support its bid. The of a week the company also welcomed admonishment was ignored as the president went former ESPN president John Skipper as on to host a joint press conference with Nigeria’s its new executive chairman and acquired president that had echoes of George W Bush’s ‘with- a package of rights in to the Fifa us-or-against-us’ prelude to the second Iraq war. “I World Cup. DAZN sub-licensed highlights hope all African countries and countries throughout rights for for all 64 games from the the world […] will support us in our bid,” he said. forthcoming national team tournament, It is reported that Saudi Arabia has paid similarly which will be available on the platform as scant attention to Fifa protocols in creating a new soon as 45 minutes after the final whistle South West Asian voting bloc of 10 countries that as part of the standard subscription will support the USA and thwart the wishes of its package. Z regional rival Qatar. Ranked against the US and its Coalition of the Willing, , China and Qatar are expected to encourage their allies to vote for the North African country. QUOTES OF THE MONTH All of this assumes that a vote will go ahead on 13 June at all. Privately, figures associated with the “We want to make sure that “If your product’s no good, re- Morocco bid speak of their fears that the five- imagine it, or create a new one “ man Fifa taskforce which inspected its bid on two mandate doesn’t come down to occasions might disqualify it on a technicality when the five-person task force.” FORMER SYNERGY CHIEF EXECUTIVE – AND it reports back at the end of May. Such a move might SPORTBUSINESS INTERNATIONAL COLUMNIST spare the governing body a discreditable spectacle HICHAM EL AMRANI, CHIEF EXECUTIVE OF – TIM CROW SAYS THE POOR PERFORMANCE in Moscow but it would hardly represent the open MOROCCO’S BID TO HOST THE 2026 WORLD OF FIFA’S SPONSORSHIP PROGRAMME MEANS CUP, HOPES FIFA WON’T TRY TO SCUPPER ITS IT’S TIME FOR THE GOVERNING BODY TO process promised in its guide. To borrow a phrase CANDIDACY BEFORE IT REACHES A BALLOT SHAKE THINGS UP from Trump: ‘We will be watching’. Z OF MEMBER ASSOCIATIONS (PAGE 10) [email protected] (PAGE 6-9) @CroninBenjamin

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04-05_Snapshot.indd 5 23/05/2018 17:31 6 WORLD CUP 2026 BIDDING : MOROCCO

Event bidding MOROCCO 2026 | NORTH AFRICAN COUNTRY PROMISES $5BN PROFIT AND MORE ‘COMPACT’ WORLD CUP

F Morocco says tournament would generate $7.2bn in revenues and a $5bn profit F Offers a more ‘compact’ World Cup with every city within 550km of F Would require nine new venues and five to be renovated

The in would be reconfigured to accommodate an additional 20,000 seats

BY BEN CRONIN In the governing body’s worst imaginings, Fifa president Gianni Infantino is believed changes that were motivated by the need for to favour the United 2026 bid but in recent When the Fifa Congress meets on 13 June greater transparency in the host selection months the view has taken hold that the new to decide the host of the 2026 World Cup, process threaten to deliver a result with all voting system gives Morocco a live chance. it’s hard to know how much the vote will be the credibility of the Eurovision song contest, Provided it can make it to the final vote influenced by the technical or commercial where tactical voting and old alliances tend (there is still a slim possibility that Fifa might merits of each bid. to take precedence over any notion of good try to exclude it on a technicality beforehand) It was ever thus, some would argue, but sense or taste. the North African nation ought to be able Fifa’s decision to take the ballot away from The difficulty of calling the race has not to count on support from the 55-strong its 22-person executive committee and place been helped by Donald Trump’s attempts African confederation and a proportion of it in the hands of its 207 voting associations to intimidate countries into voting for the Asian countries to get it close to the 104-vote has created a new dynamic in the race to joint bid presented by the United States, majority needed to secure the event. host the World Cup, turning the contest Mexico and Canada, nor by the early Hicham El Amrani, chief executive of the into a political battle as much as one that pronouncements from the South African, Morocco 2026 campaign and a former head carefully weighs up the competencies of each Saint Lucian and Dominican federations of the Confederation of African Football, contender. about how they intend to vote. thinks his country has a better chance of

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06-09_Morocco.indd 6 23/05/2018 17:25 WORLD CUP 2026 BIDDING : MOROCCO 7

winning than on any of the four previous “We are building stadiums that projections. He claims that the North African occasions it has bid for the tournament. But country’s more conservative promise of he insists the decision will come down to the will have a minimum required $7.2bn revenue and $5bn profit is closer country’s hosting capabilities rather than any capacity of 40,000 but that will to Fifa’s own estimate that an expanded political horse trading. 48-team tournament could generate around “African countries are not going to support be reduced afterwards to fit the $6.5bn in revenue. us just because we are on the same continent The $7.2bn figure, compiled by the Roland but because they buy into the project,” he needs of the community” Berger consultancy and Keneo marketing says in a presentation to the media in a agency, anticipates that the country’s restaurant overlooking the Strait of Gibraltar HICHAM EL AMRANI, CEO, MOROCCO 2026 location in the ‘sweet spot’ time-zone in the historic port of Tangier. He adds that spanning Europe and would lead to a successful Moroccan bid would “send a media rights revenues of $3.2bn. “Pretty message of confidence, of trust, into the the confidence that it is ready to go from much all of Fifa’s broadcast rights in Europe African continent”. hosting lower-tier football tournaments like and Africa have still to be sold, and all of the Africa Cup of Nations and the Fifa Club Africa has still to be sold, and the time-zone Infrastructure World Cup and take a tilt at the big event. we’re in here just works so much better Morocco doesn’t pretend to be able to for those two key territories,” says a figure compete with the stadium infrastructure Revenues associated with the bid. “We know we can’t or commercial potential of the United bid. To persuade the national associations that match them [United 26] on ticket revenues It proposes a more intimate, pared-down it is ready to make the next step, El Amrani or stadium capacity, but that broadcast sweet World Cup – and to use football as a catalyst appreciates that he will have to talk a good spot really works for us.” to speed up the country’s development goals. commercial game. He joins the media The US bid predicts $5.2bn of media A media tour of the country that stops in tour having just returned from the AIPS revenues, including a $300m bonus to Casablanca, , Tangier and (Association of Sports Press) Congress in Fifa via contracts already negotiated with appears designed to emphasise the compact Belgium, where he unveiled Morocco’s bid American broadcasters Fox and Telemundo. nature of the bid (all of the host cities are and engaged in an early skirmish with his The latter point has led to accusations that within a 550km radius of Casablanca) and rivals. At the conference, the United 2026 bid the governing body has a conflict of interest to challenge assumptions about how far appealed to the commercial instincts of the over the destination of the 2026 World Cup it has already come in terms of achieving 207 voting associations by promising a World and suspicions that it favours a United 2026 those development goals. The decision, Cup that would deliver $14bn (€11.95bn) win. for instance, to drive the 244km from the of revenues and $11bn to the Fifa coffers. airport in Casablanca to Marrakesh, the El Amrani responded by telling an AIPS Sponsorship and ticketing second stop on the tour, allows the press journalist that Morocco 2026 would deliver The remainder of Morocco’s revenue contingent to travel on the network of toll twice the revenues of and , projection is made up of $3bn of marketing roads that currently connects ten of the the 2010 and 2014 hosts. revenues and $1.1bn in ticketing, which twelve potential host cities and stadium Back in Morocco, the bid leader goes compare with $3.64bn of sponsorship and locations within the bid. The following day, into greater detail about his commercial $4bn of match day revenues projected by a connecting flight between Marrakesh and United 2026. takes the media through the brand El Amrani says his bid is ‘100 per cent new 67,000m2 terminal at Marrakesh-Menara guaranteed’ by the Moroccan government, airport, inaugurated in time for the country’s to reassure Fifa that it is not dependant on hosting of the COP22 climate conference in sponsorship and private sector investment to 2016 and which has capacity for nine million organise the tournament, but he stresses that passengers a year. the bid does not lack corporate support. “When you look at Morocco in 2003 when “We already have support from the private we were bidders for the fourth time, and the sector, but at the moment it’s a kind of Morocco of today, the country has seen very goodwill or symbolic support,” he says. “All important structural changes and a steady the major corporations within Morocco, but development,” says El Amrani. also within the region of Africa and beyond, He explains that the country’s GDP has wrote to the bid to commit to the support doubled in that time, its motorway network about this World Cup, whether in terms of has more than tripled and its airport and [being] national sponsors, whether in terms hotel capacity has increased two and a of the different technical support that they half times over. The Moroccan Ministry of could bring, depending on their expertise, Tourism reports that the country hosted 11.3 and the business category. million tourists in 2017, ranking it first in “Of course, global corporations are Africa in terms of arrivals and almost tripling interested because they know the value the the 2003 figure. tournament will offer, especially when you The statistics have given the country Hicham El Amrani at the Stade Ibn Batouta consider the types of TV audiences we could

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06-09_Morocco.indd 7 23/05/2018 17:25 8 WORLD CUP 2026 BIDDING : MOROCCO

Continued from previous page...

“African countries are not going to support us just because we are on the same continent, but because they buy into the project”

HICHAM EL AMRANI, CEO, MOROCCO 2026

host the Fifa matches but that capacity will be reduced afterwards to a capacity that fits the needs of the community in eight years’ time,” he says. “That [capacity] will go down to 25,000 or 20,000 and the space that we gain from the reduction of those seats allows us to create an additional multi-functional space with basketball fields, athletic tracks and so on, so that we want to transform the ability, by hosting the World Cup, to use the stadium not only as a football place where we play the Construction under way at the Maamoura National Centre for national league, but as a space open 365 days Football (above) and the Tangier high-speed rail terminal (right) a year with different sports, entertainments, concerts and shows.” The bid proposes reusing the seats that reach and the reach around the world in are removed from the venues in ten other terms of market.” stadium refurbishment projects in Morocco Should the United 2026 bid be successful, and ten projects in the wider Africa region. El Amrani contends that it might struggle to “If you ask me which ones, we are not able deliver on its marketing promises given that to share, nor have we discussed with any of the 2026 tournament would be competing those countries, simply because we need to for sponsorship dollars with the 2028 Los be compliant with the Fifa’s ethical standards Angeles Summer Olympics. He adds that because it might appear that we are trying Fifa’s overheads in hosting the tournament in to favour a vote in exchange,” El Amrani North Africa would be lower ($2.3bn versus explains. $3bn for the United 2026 bid) because of The different amounts of work required the lower cost of living in the country and country might be lumbered with expensive to renovate the five pre-existing stadiums in because its public authorities promise to white elephants, El Amrani stresses that this the bid is demonstrated by visits to the Stade provide all the competition and training $3bn figure includes $0.6bn of construction Ibn Batouta in Tangier and the Grand Stade venues for free. By contrast, the governing work on three new stadiums that would de Marrakech. The former was designed to body would have to pay to rent the privately- proceed regardless of the success of the bid. be easily reconfigured to accommodate an owned stadiums in the United bid. This includes the 93,000 capacity Grande additional 20,000 seats, but for the latter the Stade de Casablanca that would host the running track would need to be excavated Venues final, and Moroccan national team games in to deliver the required 60,000 capacity. In The number, size and quality of Morocco’s perpetuity, and on which construction work both grounds the bid would need to add a venues and training facilities, however, has already begun. minimum number of ‘sky boxes’ to meet and the amount of construction work that The remaining six new-build stadiums Fifa’s hospitality requirements. would be required to prepare them to host a would be constructed using a ‘legacy A further 69 training facilities would be World Cup, also provide the biggest question modular’ design. Such an approach, in which needed to host a World Cup, but as with mark against the bid. The country says it shared basic elements are overlaid with the new stadiums, the bid would prefer to would have to invest $3bn building nine different cosmetic finishes and removable spin this as a positive. The new football new stadiums and renovating five existing elements would, El Amrani claims, allow the infrastructure, they argue, would help to stadiums to meet Fifa’s requirement for 14 stadiums to be built at a reduced cost and professionalise the facilities for teams playing venues (the governing body then selects 12 then downsized after the event. in the – the country’s top-tier football from that figure). “We are building stadiums that will have league – and build on the passion for football Eager to play down the perception the a minimum required capacity of 40,000 to in the country. A study by the French polling

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agency IFOP claims that 84 per cent of Moroccans are interested in football and 81 per cent are strongly in favour of hosting the World Cup. “Fifa or the Congress can always decide to keep giving those major competitions to a closed group of nations that can organise it today, but we know how important the social role of a World Cup is,” says El Amrani. “Giving a World Cup to a host is not only about having the biggest possible stadiums in the world, or the biggest ticketing revenues in the world, it is about the values, it’s about the impact in the long run and giving opportunities to other countries that have done the minimum required.”

Development The development argument has been heard before – not least in the case of South Africa’s bid in 2010 – but there are tangible signs of Morocco’s determination to build on its Women’s football at Maamoura football and sports economy and use the World Cup as a rallying point for its wider development goals. Evidence of construction REVENUE PROJECTIONS the football world, or take the tournament work can be seen dotted along the country’s to Morocco and use it as a springboard new network of highways and is concentrated Revenue deliver on those development goals in a more in landmark national projects like the Tangier concentrated way? terminal for a new high-speed rail service, The governing body has divested a which is nearing completion as the press visit great deal of responsibility in its member on the second day of the trip. + $7.2bn associations, assuming of course that it The final leg of the tour drops in on the allows Morocco to appear on the final ballot construction site for the Maamoura National at all. Off the record, figures associated with Centre for Football near Rabat – a project the bid talk of the Fifa taskforce ‘moving that includes 7,881m2 of covered pitches, a goalposts’ and introducing new requirements hotel and lodgings for national and youth that appeared to favour the United campaign teams, in addition to a sports medicine $3.1bn in the days leading up to the bid book centre. The MAD 350m (€31m/$37m) is going submission. A small chance remains that the ahead whether the World Cup campaign is five-man Fifa task force, which has already successful or not. TV Rights visited Morocco twice, might decide to “There’s a lot of ambition in Morocco, exclude the country when it reports back on there are resources, so now you have to its inspections on 28th or 29th May. have the strategy and the philosophy to $3bn “Things can move in a campaign, but we improve things for the future,” says former are confident because of the feedback we got Southampton manager Mark Wotte, Marketing revenue from the task force,” says El Amrani. “We’ve who joined the Royal Moroccan Football provided every single requirement in the bid Federation and has worked at the centre as book, in addition to some information that its performance director since 2015. “I think $1.1bn Fifa has asked us to clarify later on – we did the World Cup would give an extra boost that and we feel confident about going to the to and its strategy to Ticketing and vote in Moscow on 13 June. become one of the best countries in Africa.” other revenues “The key thing for us – once the reform Putting aside the political alliances, this was made of transferring the power of ought to be the crux of the vote on 13 June. If Expenses Profits deciding the host from the Executive Fifa is serious about the objectives laid out in Committee setting to the Congress – was the Fifa 2.0 roadmap to grow the game and to be able to move the vote from their 20 introduce football to new participants and to 24 votes to the 207 votes of the member regions would it be better to reap the greater - $2.2bn = $5bn associations. We want to make sure that that commercial dividends of the United 2026 mandate doesn’t come down to the five- bid and redistribute them evenly throughout person task force.” Z

06.18 : SportBusiness International

06-09_Morocco.indd 9 23/05/2018 17:25 10 COMMENT : TIM CROW

TIERS, FEARS AND NEW FRONTIERS: FIFA AND SPONSORSHIP Tim Crow analyses the strategy and revenues behind Fifa’s faltering sponsorship programme, and where it might be headed next

ifa’s 2017 Financial Report, published The second tier has gone backwards too. signed up an array of high quality global back in December, took many people Whereas in Brazil there were eight sponsors brands from East and West alike – grew 20 by surprise. at this level, there are only five for Russia to per cent year on year and over 200 per cent Revenue was up on budget, 98 per date – with the three new sponsors all coming compared to the same stage in the previous Fcent of budgeted revenue for 2015-2018 was from China. Olympic cycle. already contracted, the net deficit was much Tier one has actually grown, from six in By 2020 it could be generating twice as smaller than expected, and Fifa ended the Brazil to seven in Russia. But the churn is much revenue as Fifa’s equivalent, despite year with assets of $4.4bn of which 65 per telling. Out have gone Emirates and Sony, to having been a similar size not long ago. cent were cash or cash equivalents. be replaced by Qatar Airways, Gazprom and And the 2020 local sponsorship Hence the headline of the financial Wanda. programme – the Olympics equivalent highlights summary: ‘Solid financial results So as it stands, Fifa has five sponsors fewer to Fifa’s third tier – has been the most and a promising outlook.’ than it had in Brazil – and half of its new successful in Olympics history, attracting Fair enough. sponsors are from China. almost fifty brands and generating $3bn – But as ever, it’s all about context. Most telling of all are the numbers. Fifa is sponsorship growth Fifa can only dream The context in this case being, of now forecasting that its sponsorship revenue about. course, an organisation still reeling from for 2015-18 will be £179m down on 2011-14. And I don’t see this changing anytime its global disgrace, and still living with the Fifa’s sponsorship revenue has gone south, soon. Yes, Fifa can innovate its sponsorship consequences. and its sponsorship allure has gone east. offering, which is an increasingly blunt, And nowhere are the consequences impressions-led tool in an engagement-driven more evident than in Fifa’s sponsorship world. Yes, it can increase the number of programme. teams playing in the final tournament. Prior to the 2015-18 period (Fifa, like the Yes, the United USA-Canada-Mexico IOC, plans its finances in four-year cycles “Fifa’s sponsorship revenue has 2026 World Cup bid is promising $3.6bn in book-ended by its biggest event)Fifa had gone south, and its sponsorship sponsorship, but 2026 is a long way away, operated a simple sponsorship model, which there’s no guarantee that the United bid had evolved over time into three tiers: one of allure has gone east.” will win, and even if it does, LA 2028 will be of six to eight global ‘Fifa Partners’; a second serious competition for the same dollar. of six to eight international ‘World Cup And yes, above all it can and should Sponsors’; and a third tier of exclusively local be doing everything it can to rehabilitate brands from the World Cup host country. its brand, and top of that list should be For the 2014 World Cup in Brazil, this But if you want to put a price, in promoting women’s football and the model generated $1.6bn of sponsorship sponsorship terms, on the cost of Fifa’s Women’s World Cup in next year. revenue from twenty brands – six in tier one, disgrace, a much better comparison is with But whatever Fifa does, it is still totally eight in tier two and six in the third, host- the IOC – Fifa’s major competitor for global dependent on the men’s World Cup, and once country tier. sports sponsors. Russia 2018 is over, all roads lead to Qatar But for 2015-18, Fifa introduced its Back in December 2014, when the IOC 2022 and everything that signifies about the biggest sponsorship innovation in years, published its Agenda 2020 roadmap for malign legacies of Fifa 1.0. by internationalising and expanding the innovation and a sustainable future, I Hence the only other option, the red thread third tier to 20 ‘Regional Supporters’, in five wrote on the Synergy blog that one of IOC running through all the biggest moments in groups of four, equally split across the five president Thomas Bach’s motives was to modern sports marketing: if your product’s continents. make the IOC and the Olympics far more no good, re-imagine it or create a new one. Or at least, that was the idea. buyable for sponsors than Fifa and the World Like the Premier League and the Then came that infamous day in May Cup. Champions League. And now, apparently, the 2015: the raids in and Miami, and US It was a smart move given the controversy Club World Cup and the Nations League. Attorney General Loretta Lynch’s damning already surrounding the IOC’s major Thomas Bach had Agenda 2020. Gianni statement in New York. competitor, and when Fifa unravelled Infantino has Agenda $25bn. Z The rest was history – and Fifa’s brave new only a few months later it looked like a Tim Crow has been at the forefront of sports international third tier was toast. masterstroke. marketing for thirty years and advises a range of Only four brands to date have bought into Fast forward to the IOC’s financial report companies at the intersection of sport, marketing, the third tier, three of them Russian – clearly for 2017. Revenue from the IOC’s global media and tech. Follow him on Twitter attracted by the host country opportunity. sponsorship programme – which has recently @shaymantim.

06.18 : SportBusiness International

10_Tim Crow.indd 10 23/05/2018 19:17 Different sports, same cutting edge insights.| Bring your fans closer to the action next season with our market leading APIs, Widgets, Game Streams and Social Media Cards.

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Sport_Business_Advert_June18.indd 1 18.05.18 13:16 12 WORLD CUP 2026 BIDDING : USA-MEXICO-CANADA

UNITED 2026 | NORTH AMERICAN BID HOPEFUL THAT ECONOMICS, NOT POLITICS, WILL SWAY VOTE

F USA-Mexico-Canada organizers promise record $11bn profits for cash-strapped Fifa F Bid book highlights quality and quantity of stadiums, hotels and airports for 48-team event F Global anti-Trump sentiment is likely to play a significant role in deciding the vote, however

CONCACAF president Victor Montagliani, then-US Soccer president , and Mexican Football Federation president Decio De Maria at the United 2026 bid (Spencer Platt/Getty Images)

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BY BOB WILLIAMS

he 530-page bid book compiled by North American World Cup organisers begins with three slogans: Unity, Certainty, TOpportunity. It might as well contain a fourth: Money. A World Cup hosted by the United States, Canada and Mexico in 2026 would be a money-maker like no other. On the campaign trail in Europe, Carlos Cordeiro – the recently elected US Soccer president and co-chairman of the United 2026 bid – claimed that a North American tournament would be “the most successful and profitable Fifa World Cup ever” with revenues of $14bn (€11.96bn) and profits of nearly $11bn. Accounting for an expanded 48-team tournament, revenue projections include Alex Livesey/Getty Images $2.5bn in gate receipts from 5.8 million ( ) tickets sold, between $1bn and $1.5bn in commercial hospitality, $3.6bn in sponsorship and licensing, and more than has three – Guadalajara, and Vancouver, if they were given more time, $5bn from media rights fees – each of them Monterrey – as does Canada: Toronto, they would have told you they absolutely potential records. Montreal and Edmonton. felt they would have gotten things done, but Fifa would also collect a $300m media- The oversupply of cities, United bid unfortunately we hit certain points where we rights bonus from US broadcasters Fox executive director John Kristick observed, have to make decisions.” and Telemundo. And there would be not only gives Fifa an indication of the It is in its infrastructure that the North opportunities to once again court the big “intense interest across the three countries American bid really stands apart from its American sponsors who have viewed Fifa to take part” but also “unprecedented choice Moroccan rival. In painstaking detail, the warily since corruption scandals engulfed the and flexibility in deciding how best to stage United bid book lists more than 150 training previous administration. the competition”. site and base camp options, select five- “A profit of this magnitude is Notably, Minneapolis, Vancouver, Glendale hotels, transport infrastructure and multiple unprecedented in any single-sport event in (Arizona) and Chicago – the home of the US airports that already serve each of the 23 the world,” Cordeiro argues. “That has to Soccer Federation and host of the 1994 World candidate cities, as well as the strong IT sink in. In terms of value, it could mean $50m Cup opening game – pulled out of contention networks at each venue. more per association.” after local politicians cited unacceptable Fifa “Unlike some past Fifa World Cup events, For the 207 Fifa associations that will demands, including host taxpayers picking no major construction or capital investment cast ballots on June 13, geopolitics is likely up the full bill for safety and security, and is required,” Mexico bid director Yon de to be as big an influence as economics. But assuming liability for any security incident of Luisa tells SportBusiness International, despite waning US popularity around the any size. “so instead of dealing with construction world – a Gallup poll in January revealed Kristick was unconcerned over the timelines and related challenges, we will median approval of US leadership across snubs, however. “Every city has the same focus on building the future of football in 134 territories stands at a new low of 30 per requirements,” he told ESPN. “These are our nations – and around the world – as well cent – United 2026 organizers remain bullish competitive bids and that’s just the natural as guarantee that 1,100 of the world’s finest about their chances of victory. process that you go through. I think every players will have everything they need to be city, including if you speak to Chicago or at their very best.” Infrastructure The United bid is not short of potential host Revenues cities. From an initial list of 41 entries, a final “Instead of dealing with The United bid has highlighted Fifa’s poor 23 were selected for the bid book, of which financial situation – the governing body lost Fifa would choose up to 16. construction timelines and $369m in 2016 and $191.5m last year – during Seventeen are in the US: Atlanta, related challenges, we will the election campaign, a case made more Baltimore, Boston, Cincinnati, Dallas, compelling by an upcoming World Cup in Denver, Houston, Kansas City, , focus on building the future of Russia that has not delivered significant Miami, Nashville, New York/New Jersey, football in our nations.” new sponsors, and huge doubts over the Orlando, Philadelphia, San Francisco Bay commercial potential of Qatar 2022. Area, Seattle, and Washington DC. Mexico MEXICO BID DIRECTOR YON DE LUISA “We believe that between the size of

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broadcasters Fox and Telemundo if the United bid wins – reflecting the advertising windfall they would receive – could prove less of a blessing than a curse. Fifa agreed extensions covering 2026 with each broadcaster without opening the bidding to competitors, probably to dissuade them from legal action over the switch of Qatar 2022 to a winter date. The deals have created a conflict of interest for the Fifa hierarchy that may not sit well with some members. After accounting for the revenue projections from tickets, hospitality, sponsorship and media rights, the United bid book is still $1.4bn shy of its headline $14bn figure. It claims this money will come from new revenue lines that will emerge over the next eight years, including additional programming such as concerts around the event. Cordeiro tells SportBusiness International: “Our projections include... additional revenue from new business lines

(Ashley Allen/Getty Images) and concepts we can introduce into the Fifa World Cup experience.” the stadiums, which obviously impacts “This is not only about our Venues attendance, the level of hospitality available “All of our proposed stadiums are already at stadiums, which affects revenue, and the stadiums and our hotels and all built and operating,” the United bid book commercial opportunities that are available that. It’s about perceptions of declares, “with an average seating capacity to Fifa, this will be by far the most financially greater than 68,000, and confirmed uses successful World Cup. And it’s probably America.” after the competition has ended, as requested a pretty good time for that to happen for FORMER UNITED BID CHAIRMAN by Fifa in the bidding requirements.” Fifa,” said Sunil Gulati, the former US Soccer The 23 stadiums suggested to Fifa are SUNIL GULATI president and erstwhile bid chairman, last already state-of-the-art and need little work, December. “It’s not lost on us and we will thus avoiding any potential for the ‘white make sure it is not lost on 207 voters, many to $2.5bn – a figure they still believe to be elephants’ that have plagued Olympics and of whom rely on Fifa for their financial conservative – from $2.1bn in the bid book. World Cups over the years. They range in stability.” That implies an average ticket price of $431, capacity from the 45,500-seat BMO Field in Fifa hasn’t added a new US sponsor compared to $213 for Brazil 2014 and the $227 Toronto to the 92,967-seat AT&T Stadium in since 2011, when Johnson & Johnson signed per ticket offered by the Moroccan bid. Dallas. a deal for rights around the 2014 World From a television rights perspective, deals The United bid book suggests a “general Cup in Brazil. Moreover, relations with have already been struck covering much flow from West to East” in its proposed existing US partners Visa, Coca-Cola and of the Americas, but the United bid claims schedule. This includes the opening match McDonald’s remain strained following the continent’s sheer breadth will be an in either Mexico City or Los Angeles, semi- the 2015 corruption scandal, in which the advantage over Morocco. finals in Atlanta and Dallas and the final companies spoke out against then-president “The 2026 Fifa World Cup will be hosted at the 84,953-seat MetLife Stadium in New . across three time zones, so we can offer Jersey. The United bid expects “each and every the best of all worlds to fans, broadcasters Unlike Morocco – whose state-operated one” of the 80 games – 60 in the US and 10 and commercial partners,” Kristick told stadiums have been offered to Fifa at no each in Canada and Mexico – to be sold out. SportBusiness International. “Our afternoon cost – there will be significant costs involved Prices range from $21-$323 for group games kick-offs will hit primetime in Europe and in renting US arenas, most of which are up to $128-$1,550 for the final, while the , and our primetime kick-offs will hit operated by NFL teams. An estimated $40m number of premium seats – around 750,000 early afternoon in East Asia – Fifa’s largest will also have to be spent laying grass in total – will generate significant extra revenue. audience for Brazil 2014, where China some of the venues although this is relatively There is an expectation among the United alone represented 12 per cent of the global small change in overall terms. To resolve the bid that Fifa will be confident enough of reach. That is part of the reason we are issue, the United bid is looking to explore the sell-outs to increase these provisional ticket confident United 2026 can help Fifa set new development of a hydra-turf solution. prices, which explains why United organisers commercial revenue records.” Fifa is likely to weigh up these cost factors recently updated the projected gate receipts The $302m Fifa would receive from US when it comes to choosing the final stadiums,

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if the United bid is successful. “As to how that math plays out, that will be discussed and determined down the road,” Kristick told reporters last November. “Certainly a factor that you have to look at in terms of each venue is, there’s a different component of cost. We’d love to see a higher number of venues as opposed to a smaller number of venues, to spread the wealth as far as we can. But that will be something that, at the right time, we’ll sit down with Fifa and go through the process to determine.” A final list of 16 cities – likely three each in Canada and Mexico, leaving 10 in the US – would be finalised in 2021. The bid book makes provision for as- yet-unfinished stadiums: the Rose Bowl is listed as the Los Angeles site but mention is made of the 70,000-seat NFL stadium under construction in Inglewood. The United bid also has plans to help (Mike Hewitt/Getty Images) fans and media alleviate potential problems thrown up by crossing multiple borders during the tournament. Kristick tells to the vote remains unclear but the United many international bids over the years, the SportBusiness International: “The United bid bid is certainly trying to address the issue, question of who will host in 2026 has at has also committed to working with Fifa to with little help from the President, who times become mixed with geopolitics,” he develop a comprehensive ‘fan pass’ to ensure recently tweeted: “It would be a shame if said. “We are asking that we be judged, not smooth travel between the three countries, countries that we always support were to on the politics of the moment, but on the syncing match ticket, domestic travel, hotel lobby against the U.S. bid” – quite possibly in merits of our bid.” accommodation, Fifa Fan Fest access, and violation of Fifa’s provision on governmental The United bid is confident of gaining more. Every fan will also have complimentary interference. support from the confederations of North access to public transport within each host “This is not only about our stadiums America, and Oceania but city on match days.” and our hotels and all that,” Gulati said in beyond that has work to do. Africa is likely January. “It’s about perceptions of America, to support its continental colleague – even if Politics and it’s a difficult time in the world.” South Africa may not – and many European The United bid knows its excellent On the campaign trail, Cordeiro said countries have pledged their support for infrastructure and bold revenue projections he hoped Fifa members would set aside Morocco too. This means that Asia, which will not guarantee victory. Indeed, when the politics when they go to vote next month. has 47 federations, will be critical for the US lost to Qatar – which is smaller in area “Let me acknowledge up front that, as with United bid to find a path to victory. and population than Los Angeles County – The situation facing the United bid is for the rights to host the 2022 World Cup, it summed up best by Alan Rothenburg, the had little to do with the quality of stadiums former US Soccer president who is credited or hotels. with making USA ‘94 a resounding success. This is partly why the US did not bid for the “I don’t think Fifa has ever seen a bid so 2026 World Cup alone – even though it could complete and so ready. Unlike 1994, we easily host a 48-team tournament. Appearing have cities now experienced in hosting less US-centric was believed vital due to international soccer matches. We are growing anti-American sentiment following absolutely ready to go,” he told Bleacher the election of President Donald Trump. Report. A further step was taken in March when “Before Morocco, [the US-led bid] looked, Gulati stepped down as the bid’s leader and to take a phrase from another sport, like Cordeiro – his successor as USSF president a slam dunk. International geopolitical – Canada’s Steven Reed and Mexico’s Decio issues come into play. Some of the things de Maria were named as United co-chairmen. the current administration has said or done This was followed by an assurance that would cause concern in some parts of the there would be no travel restrictions placed world, and everyone has an equal vote. on visitors following a warning from an “I’m very hopeful that will independent human rights report. win the bid. But I’m concerned about the (George Rose/Getty Images) Whether this will make any difference Morocco bid.” Z

06.18 : SportBusiness International 16 NEWS ROUND-UP

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

DEAL OF THE MONTH MATTHEW GLENDINNING

The Chinese Super League has increased the value of its kit supply deal with sporting goods giant Nike by 135 per cent thanks to a $47m(€40m)-per-year deal signed this month. The deal is for five years, with a five-year option. Over ten years, it would reportedly be worth $345m in value in kind and $125m in cash.

How does this compare with the previous deal? (Charles Coates /Getty Images) Nike’s previous 10-year-deal, from 2009 to 2018, was thought to be worth around $20m per year, divided equally between cash and 1. PETRONAS BECOMES F1’S FIRST REGIONAL PARTNER value in kind. Before that, the clubs were kitted out by rival international sports apparel brands, Malaysian oil and gas company Petronas has been unveiled as the first including Kappa, Umbro, and Nike. By regional sponsor of the Formula One motor-racing series. The deal covers 2012, all 16 CSL clubs wore Nike as per the China, and Mexico, with Petronas signed up as F1’s regional sponsor central deal. for fuel and lubricants in the three countries. Petronas has previously sponsored the F1 Festival in Shanghai, China and was one of the partners of What is the split between international the F1 in Schools initiative, which seeks to introduce children to the sport. and domestic sponsors of the CSL? 2. QATAR AIRWAYS ENDS ROMA’S SHIRT SPONSOR SEARCH Along with Nike, German logistics brand DHL, multinational petroleum company Shell and Italian Serie A football club AS Roma has struck the most lucrative shirt Swiss watch brand TAG Heuer are Official sponsorship deal in its history, with Qatar Airways. The airline’s logo will Partners. The Shell deal, from 2017 to 2019, is be emblazoned across the front of Roma’s shirt until the end of the 2020-21 worth around $7m per year. There are nine season. Qatar Airways becomes Roma’s main global partner and will be only Chinese partners, including title sponsor Ping the seventh shirt sponsor in the club’s 90-year history, with Roma having An Insurance. competed for a lengthy period without a prominent brand on its shirt.

Which sports marketing agencies work 3. WOLVES RECRUIT ADIDAS FOR PREMIER LEAGUE RETURN with the CSL? Newly-promoted English Premier League football club Wolverhampton The league works closely with the IMG agency. Wanderers has sealed a partnership with German sportswear manufacturer IMG is its strategy adviser and has the exclusive Adidas for four seasons, from 2018-19 to 2021-22. Adidas will replace rival rights to sell central sponsorships in certain German company Puma as the provider of Wolves’ home and away kits, categories. The agency played a leading role in as well as training kits. The club has also “mutually concluded” its shirt securing Ping An in its first title deal from 2014 sponsorship deal with financial services company The Money Shop a season to 2018. This month, the IMG agency sealed a early. A new shirt sponsor has not yet been announced. three-year extension to its contract to sell and 4. VILLA CLAIMS INNOVATIVE KIT DEAL WITH FANATICS distribute the CSL’s global media rights from 2018 to 2020. Aston Villa has claimed a first for the English football market by agreeing a kit partnership with online sports apparel retailer Fanatics and menswear Does Nike also have rights to the brand Luke 1977 from the start of the 2018-19 season, following the end of Chinese national team? its deal with Under Armour. As both retail partner and kit manufacturer, Nike replaced long-term incumbent Adidas as Fanatics will operate a full vertical-manufacturing model, meaning the new the exclusive supplier to the Chinese Football kit, bearing the Luke 1977 logo, will be managed by a single company from Association for national team matches in a production to point-of-sale. 12-year deal, from 2015 to 2026, worth around 5. IRONMAN SIGNS UP FIRST GLOBAL BIKE PARTNER $16m per year. This comprised around 30 per cent value in kind and 70 per cent cash. Ventum has become the Ironman triathlon series’ first global bike According to local media reports, Adidas was partner. The deal, the length of which was not disclosed, names Ventum heavily outbid by Nike, which identified China as the official bike supplier of the series itself, and the Ironman World as a critical growth market. TAG Heuer is also Championship and Ironman 70.3 World Championship. Ventum will have a a CFA partner, paying around $1.5m per year presence at select events around the world, including this year’s Ironman under a multi-year deal from 2017. Z 70.3 World Championship in Nelson Mandela Bay, South Africa and the Ironman World Championship in Kailua-Kona, Hawaii. Z

06.18 : SportBusiness International SPONSORSHIP : DATA 17

WORLD CUP SPONSORSHIP DATA FROM SPORTS SPONSORSHIP INSIDER

Top 10 kit supply deals for national teams at the 2018 World Cup, by annual value ($m) Top 10 kit supply deals for national teams at World Cup Annual value ($m)

FRANCE BRAZIL GERMANY SPAIN

$54m $46m $32m $30m $30m Adidas Nike Nike Adidas Adidas 2011-2018 2014-2018 2006-2018 2009-2018 2011-2018

ARGENTINA RUSSIA MEXICO PORTUGAL

$18m $18m $17m $13m $7m Adidas Adidas Adidas Adidas Nike 2011-2022 2015-2022 2008-2018 2011-2018 2014-2018

Source: Sports Sponsorship Insider Source: Sports Sponsorship Insider

Nike and Adidas are the technical sponsors for 22 of the 32 teams by the sports brands. Joy following success is easy to assess; equally, upset after competing in the World Cup. SportBusiness International asked Stuart defeat is measurable and obvious. The worst reaction is apathy after defeat – this Turner, former commercial director of England’s Football Association, is the worst-case scenario for all concerned as re-engaging fans takes time and a whether success at a one-off tournament can help federations leverage lot of marketing spend. their status in renewals with technical sponsors. Are sportswear brands questioning their investments in national teams What diff erence does having a good World Cup make to a federation’s relative to clubs or individual athletes? negotiating power with a kit supplier? Major championships can only be won by one team every two years, whereas a It’s obvious to any commercial team that they need the best hand they can play club can win any one of four trophies every year and an elite player or athlete when negotiating. However, I do believe the sports brands understand the long gets perhaps 50-odd chances to shine every season. play too and, in my experience, do not use failure as a stick to beat you down on The thinking is slow and steady for national team agreements, often with price. upsides for success should it come along. For clubs and athletes, success can The halo eff ect is important: quite simply it shifts more product. But more come and go very quickly. Club and athlete deals need to refl ect this in their pertinently it gets the nation on your side. This has obvious benefi ts in all fl exibility and agreement length. commercial aspects, such as ticket sales and sponsorships. The national shirt is totemic, but realistically it is apparel and footwear that Do deal valuations just come down to shirt sale projections? this target market will buy and that must mean they are attracted by the attitude These are still important, as is the pricing of that shirt and its supply to the and values of the national team. If the national team is not performing then this marketplace. Over-supply leads to mass stocking in multi-site retailers, which becomes even more important, as does the performance of junior teams. leads to discount pricing and perhaps a cheapening of the brand. Shirts are typically £90-110 now and are held in this price bracket as long as possible so that Other than team performance, what are brands looking at during the brand kudos is maintained and other products can be brought in. competition? It’s probably pushing the analogy to say the replica shirt is the Trojan Horse The overall feel of the tournament is important. Germany 2006 had it and if you for the apparel brands, but it defi nitely allows them a dialogue with the consumer were there it was palpably uplifting. Above all, fan reaction will be being assessed in which they will push products more likely to be worn on the street. Z

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

06.18 : SportBusiness International 18 SPONSORSHIP : BUDWEISER ACTIVATIONS

CRACKING OPEN NEW MARKETS | BUDWEISER’S WC SPEND TO WIN GREATER SHARE OF CONVERSATION AB InBev’s activation spend on its official beer sponsorship of the upcoming Fifa World Cup in Russia will be the beer group’s biggest yet – commensurate with the importance of the event as a showcase of the Budweiser brand.

BY MATTHEW GLENDINNING

B InBev’s activation spend on its official beer sponsorship of the upcoming Fifa World Cup in Russia will be the beer group’s biggest yet A– commensurate with the importance of the event as a showcase of the Budweiser brand. Brian Perkins, VP of global marketing at Budweiser says the campaign will be not only the biggest in terms of reach but also investment. AB InBev is understood to pay about $90m (€76m) for the Official Beer rights from 2015 to 2022, as a member of Fifa’s second-tier World Cup Sponsor category. According to industry experts, the activation spend is likely to exceed this sum. This month Budweiser launched a campaign that includes the deployment of eight million (Jonathan Daniel/Getty Images) noise-activated ‘Red Light Cups’ that light up in response to fan cheering, and a variety of integrated experiential, digital and social programmes in more than 50 countries. world’s biggest sporting event. new geographies around the world. We’ve Sister publication Sports Sponsorship Insider Our entire campaign is centred around launched in South Africa, Nigeria, Colombia, spoke to Perkins about the strategic, tactical the idea of amplifying a feeling of euphoric Peru, Ecuador, Australia, and many others. and logistical challenges and opportunities energy that we see only once every four And we’re very, very excited to see the same presented by the sponsorship. years from fans across the entire planet. For kinds of results in these countries because of Budweiser, we have a lot planned, including our activation this year. How does this year’s World Cup a very rich integrated campaign and ways we sponsorship activation compare with are energising fans around the world in the What uplift in beer consumption has previous campaigns? lead up to and during the tournament. From Budweiser historically reported during the Our Fifa World Cup programme is our most limited edition packaging, to communication World Cup? ambitious campaign to date – for Budweiser content, to fan experiences, this will be a big I’ll take an example from four years ago in and AB InBev. For Budweiser, we are summer for Budweiser. Brazil, where we doubled the size of our activating in 50-plus countries. This is not Additionally, one of the principal things Budweiser business after activating the World only our biggest campaign in terms of reach, we’ll look at is our brand health tracking Cup through Budweiser in Brazil. The brand but also investment. As a priority activation around the world, and our share of social continues to grow in Brazil. In fact, six years for us this year, there are a number of people conversation. In that respect, we don’t since launching in Brazil, the country is the across the organisation who were involved in just compare ourselves to other brands in third-largest Budweiser country in the world. the campaign, including our global marketing the category and other alcohol brands: we team, local marketing counterparts around compare ourselves to the most iconic brands What are the key markets for Budweiser the world, and more. in the world that will be activating at the activation? tournament, like Adidas and Nike. As a truly global event, we are prioritising What are the business objectives behind We also look at sales – that’s a huge reason most major markets, including Russia, China, this year’s campaign? why we do this. And we know that the World Brazil, the UK, as well as other new markets The goal of our campaign is to grow our Cup can make a big difference for us. This we’ve recently expanded in, as mentioned, brand and reach and engage the more than year couldn’t be better timing for because like South Africa, Nigeria, Colombia, Peru, 3.2 billion people coming together around the we’ve just launched the brand in several Ecuador and Australia.

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How disappointing was the US team’s up the Fifa World Cup. This is a fun, energetic with ads, but instead creating content they failure to qualify for Russia 2018? story about how Budweiser is delivering beer want to see and share. The US is one of our most important and energy in an elevated and unexpected countries in the world. Even though the US way to fans around the world. Simply put, it’s How does AB InBev approach the pouring team didn’t qualify, football fandom is on fire the most epic beer delivery of all time. We rights opportunity in the stadia and fan in this country. And there are many people have already launched the longer version of fests in Russia? living in this country who hail from all sorts the story and over the coming months, you As the exclusive beer sponsor, Bud and Bud of different nationalities. We expect strong will see many shorter formats of this story on Alcohol-Free will be the only beer sold in engagement with the World Cup. We’ll be TV and on social media. stadiums and at official Fifa World Cup activating the ‘Red Light Cup’ in the US. events, providing a great opportunity to grow We’ll be activating on social media. We’ll What agencies have led the advertising our brand. This is fitting as Budweiser is a be activating with fans’ experiences. We’re and creative campaign? brand full of energy and a beer people reach excited about the opportunity even though Our lead creative agency is Anomaly, they’ve for when they want to elevate the occasion – the US team didn’t qualify. been the agency of record globally for the like the biggest sporting event in the world. Budweiser brand for more than eight years What are the main activations of this and they have been principal lead in crafting What specific events will you have year’s campaign? the entire campaign. There are many more available in Moscow for the news media to Our call to action is to ‘Light up the Fifa partners who’ve been involved as well but attend? World Cup’ – and I’d like to dwell on one or they’re the lead agency. We will have a lot of activity in Moscow. We two key elements of this campaign that really will have a Budweiser hotel, we will have a bring the idea of celebrating and amplifying How have changes in digital/mobile Budweiser boat that will travel up and down the world’s euphoric energy to life. technology since Brazil 2014 changed your the river with watch parties and events on The first thing is the Budweiser ‘Red Light activation strategy? the boat and we’ll be taking over one of the Cup’. This is the first ever beer cup that The rapid increase in smart phone biggest and best nightclubs in Moscow, the literally amplifies fan energy. The base of penetration, particularly in emerging GIPSY club, for further Budweiser events. the cups contains a microphone and three markets, has allowed us to reach a much There’ll be a lot of on-the-ground activity. Of LED lights. The microphone listens for broader audience. course, there’ll be many trips to the games pronounced changes in decibels, like cheering We can engage with more individuals in and hospitality packages as well. I won’t or clapping, for example. And consequently, more markets than ever before. Furthermore, disclose the details right now about all the the LEDs are activated. improvements in the major social platforms celebrities and influencers and VIPs we’ll In other words, the more you cheer and the have allowed us to make those engagements have on site, but rest assured there’ll be more you bring your energy to the football more impactful. plenty of media opportunities there. World Cup, the more the cup lights up in We will have chatbots, augmented reality One thing I will draw your attention to is your hand – a visual amplification of your experiences, and livestreams from our events that in the Budweiser hotel we will be hosting energy. These cups with be offered in football shared around the globe. Now more than what we’re calling Budweiser studios, which stadia in Russia but also in watch parties, ever it’s not about interrupting consumers is a content production space for influencers viewing events and bars around the world. and media personnel to come and create We’ve spent a lot of time getting these right their own content in the middle of our own and testing them with fans and we know that hotel space. That will be an exciting space for they’re a hit. broadcast news media to attend. The next component of our campaign is the ‘Budweiser Man of the Match’. This is Would AB InBev welcome the use of digital a great way to not only celebrate the best replacement technology on perimeter players of the game – those who really lit up advertising boards in Qatar 2022 to the pitch – but also a great way to bring fans promote different beer brands in different into the action. Because fans vote for the man broadcast feeds? of the match winner and then we all get to Selectively, this could be an opportunity, but celebrate that accomplishment. in most cases the priority will continue to And the final piece of our campaign that I be Budweiser, since that brand is the most (Robbie Jay Barratt - AMA/Getty Images) would like to highlight is our hero film, Light widely enjoyed premium beer in the world. Z

06.18 : SportBusiness International

18-19_Budweiser_PhilCarling.indd 19 23/05/2018 18:57 20 RUSSIA 2018

Venues & facilities RED UPRISING | INSIDE MOSCOW’S OTKRITIE ARENA

F Engineers attempted to create ‘cauldron-like’ atmosphere F Large concourse space provides opportunities for Fifa sponsors F Russia’s building codes were difficult to navigate

The Okritie Arena, home of club Moscow

BY GREG PITCHER “But the Russian bid was going in at the Universiade a year earlier. time we were designing it, and I ended up Aside from the 1950s-built Ekaterinburg mid a wave of dismay in England producing material for the Russian bid book. Arena, perhaps, where temporary seating as the country’s much-hyped bid “The fact that we were already well will be added for the World Cup, the Otkritie to host the 2018 World Cup was advanced with the design gave the stadium a Arena will stand out in Russia 2018 as being a defeated back in December 2010, big advantage in being chosen as a venue for tournament stadium that was primarily built Aone man stood up in London in jubilation. the tournament.” for club use. Ayres believes this will ensure “When Russia won the right to host the Fast forward seven and a half years and it performs strongly for both its high profile tournament I was the only person in the the build up to the start of the Russia World temporary use this summer as well as in day- office cheering as I knew my stadium would Cup is underway in earnest. The Panini to-day mode. play a part,” says Aecom head of sports sticker books are in shops, the sombre travel “We were involved in masterplanning engineering Peter Ayres. warnings have been issued and the key-player the London 2012 Olympics, we worked on The company had just been chosen to injury scares have emerged. Rio 2016 and have a role on the Los Angeles lead design of the Otkritie Arena in Moscow A raft of new stadiums built for the 2028 Olympics,” he says. “We’ve also worked for Russian Premier League club Spartak World Cup will feature alongside a on many World Cups. Our philosophy is to Moscow, and the timing couldn’t have been redeveloped Luzhniki national stadium, the design for legacy and work backwards to better. Fisht Stadium created for the 2014 make it work for the tournament.” “The Spartak stadium scheme was not Winter Olympics and the Arena After advising the owners to avoid an dependent on the World Cup,” says Ayres. opened for the university athlete Summer “architectural flamboyance”, and undergoing

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“There are two types of football fans in Russia – the ultra-hardcore supporters who want to be as close to the action as possible; and the oligarchs where the important thing is proximity to each other. They want to be in walking distance of the president; it reminded us of the corporate culture of horse racing.” PETER AYRES, HEAD OF SPORTS ENGINEERING, AECOM

a period of concept work and negotiation, Aecom – in partnership with London practice Sport Concepts – was appointed to design the Otkritie Arena. The 45,000-seat stadium, close to the Spartak metro stop in Moscow’s north-west, was designed to fuse western European football stadium ideals with Russian culture. “The owners tour around Europe so we asked them what they liked – they said the in and some of the Premier League grounds,” says Ayres. “We said we should help them do something like that with a great atmosphere to give home team advantage while adapting it for the Russian market and fanbase.” He adds that the desire for a “fortress” home stadium with a “cauldron-like” atmosphere was commercially driven.

Fortress “There is lots of evidence that with a passionate home crowd, teams get better results, which converts into a better league position that translates into more revenue. It was a hard business decision,” he says. Ayres believes this approach, while club- mind,” says Ayres. “It was challenging to Realising this ambition started with the driven, will benefit the World Cup organisers build something that met these technical overall shape of the structure. by generating an intense atmosphere for requirements while meeting stadium design “Instead of lots of curved sides, we made those inside the stadium and others watching best practice.” sure we got the seats as close to the pitch as from afar. possible while allowing space for a Fifa- “I went to the opening match and the Method compliant pitch,” says Ayres. atmosphere was fantastic, it was like nothing Aecom tackled this head-on from the outset, The way the seats are filled was also I’ve previously experienced,” he says. “It also sending mixed teams of Russian and British considered from the outset, with corporate looks great on TV. The cameras are on the architects and engineers to engage with the attendees packed into one stand. west stand with the corporate stuff so on TV approval bodies. “Rather than distributing all the premium it looks like two banks of home supporters.” “We would send a team out to Moscow to fans around the stadium, which can kill an After this much was done to ensure stand in front of 100 people from different atmosphere, we have two really tight tiers the stadium functioned as efficiently and technical committees. We explained what we of general admission spectators to create a effectively as possible. “By Russian standards were doing and managed to persuade them cauldron close to the pitch.” much of what we did was new – we brought in and get all our approvals. There were still This is also an example of how the western best-practice Western European technology a few very frustrating moments but we got stadium model was adapted for the local in terms of stadium control boxes, CCTV there in the end.” market. systems and giant screens inside and outside Hooliganism and terrorism were major “There are two types of football fans in the stadium.” concerns for the Russian authorities. Russia – the ultra-hardcore supporters who But making the stadium a reality was a “They have had problems in other parts of want to be as close to the action as possible; major challenge, with three major hurdles to the country and this was seen as a high profile and the oligarchs and millionaires where the be overcome – local building regulations, the arena,” says Ayres. important thing is proximity to each other. harsh weather and security fears. “There were two issues – fan behaviour, They want to be in walking distance of the “The country has very complicated codes where having a well-planned stadium with president; it reminded us of the corporate of practice, known as SNIPs, which were lots of access and segregation is helpful – culture of horse racing.” not necessarily written with stadiums in and a concern from approvers that we have

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measures in place to make the stadium Moscow winters. Cardiff, we created a primary roof structure very difficult to attack from a terrorist “In the really unlikely event of someone where the plane of the roof surface bisected perspective.” getting through the security wall, we designed the structure so it disguises its size and looks A perimeter wall was built in a ring 50 the structure so if someone placed a bomb more elegant.” metres from the wall of the stadium. “This on a primary roof truss there is an alternative means you can’t get a vehicle with bombs into path to ensure the roof would still stand up. Impact the stadium,” says Ayres. “There are two-way spanning trusses in Ayres has fond memories of the opening It also makes supporter access easier, response to the onerous conditions imposed fixture at the stadium, a Spartak friendly giving a larger area for fans to pass through on us for counter terrorism.” against Red Star Belgrade. security and ticket checks before entering the Ayres adds that the climate is also a big “I walked back across Moscow after the stadium itself more freely. challenge, and affected the roof design. game and it took me until nearly 6am to get As well as the obvious access and “In the winter the snow falls but rarely home because I stopped at nearly every bar,” security benefits for its high profile use this melts, so it builds up on a roof and can he says. summer, the perimeter wall is expected to become almost like solid ice. The roof loading “I was speaking to Spartak Moscow fans have additional benefits for tournament on the Spartak stadium is almost 10 times as who were all thrilled. The best compliment organisers. much at peak load compared to the Emirates they gave me was that it felt like finally having “It provides a fantastic concourse space in London. You could put a car park on top of a proper football ground. They said it was like within it, which is proving to be brilliant for the Spartak stadium roof.” a Premier League ground, which was the best the World Cup because we have lots of space This means building roof structures can thing they could have said. for all the overlay for premium and corporate become very heavy and overwhelming. “I didn’t have to buy many of my own fans and sponsors,” says Ayres. “It will be a “A concern the city had was having a drinks.” great chance to activate mini fan zones within massive roof structure that looked like a Fifa officials may be hoping for similar the secure perimeter of the stadium – there battleship. easy-on-the-pocket experiences in Moscow’s will be lots of opportunities for activities “What we did, that I have not seen done bars and restaurants this summer, when the before the game. before, was – rather than having roof trusses stadium hosts five matches in just over two The design of the Otkritie Arena’s roof is above the roof like the Emirates in London, weeks, starting with Argentina v Iceland on a product of both security concerns and the or below like the in Saturday 16 June. Z

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24 HEADLINERIN ASSOCIATION : JEROME WITH CHAMPAGNE LEGENDS

WHITE PAPER | REDEFINING THE LIVE SPORTS EXPERIENCE Legends International has helped redefine the stadium experience. The firm’sRichard Cheesman and Martin Jennings identify four key trends

elevision’s seismic impact on the EXPERIENCED HEADS experience and economics of sport has led some observers to suggest a role reversal in which, ultimately, In the first of a Tfans will be paid to attend the stadium series of special simply to add atmosphere to the TV product interviews with its massive high-value audience. with Legends But rather than surrender in the face of International, competition from TV and other forms of Richard Cheesman entertainment, clubs and stadium operators continue to develop and redefine the live – Chief Operating sport experience to meet the changing Officer and Head demands and expectations of today’s of Global Planning audience and maintain the primacy of Manchester City’s Etihad Stadium – and Martin game-day as an event best enjoyed live. Jennings – Senior Trend #1: DEMAND FOR ENHANCED debenture holders increase, a significant Vice-President and EXPERIENCES AT FAN-FRIENDLY PRICE segment wanted an enhanced experience in Head of Project POINTS the stadium. Legends helped identify what Development The profile of modern fans is more varied was driving this demand and this insight led – identify key demand-led trends in the than that of their predecessors, and their to the creation of dedicated spaces, designed sector and share their experience and stadium expectations reflect their day-to- to meet the unique wants of this user group, day consumer experience of choice and as part of the East Stand redevelopment insight. service. As they would on the high street, that opens this autumn. Legends Global Planning experts highlight on an aeroplane or at the cinema, they are A deep understanding of local fan culture some of the most significant trends in demanding the ability to enhance their and demand are key insights in good the match day experience in European game day experience without migrating to decision making. Richard led the project stadiums and attractions, drawing on full, traditional hospitality packages. to provide the board of FC Barcelona the This is taking the form of premium information they needed to make fact based Legends’ experience working with many General Admission offers which are decisions on the future of the iconic Camp of the leading sport and entertainment generally much like fan bars with access to Nou. venues in Europe and in the USA. great seats. These club themed areas feature At FC Barcelona, a member with a Legends International is the London- lots of TV screens, seating and premium season ticket would never dream of buying headquartered international arm of quality food and drink, occasionally with hospitality – they are the owners and heart the US company Legends, a holistic live music. As a result, they not only deliver of the team – but Legend’s market fieldwork on the promise of an enhanced match day identified a segment that wanted a more solutions provider in the sports, music and experience but generate additional revenue premium in-stadium experience. entertainment industries. Led by industry by encouraging fans to arrive earlier and Legends collaborated with the club to veterans with unparalleled collective extend their match day experience develop a response to this demand in the experience in Global Planning, Global At Tottenham Hotspur’s new stadium, club’s plan for their redeveloped . Sales and Hospitality, Legends serves a Legends undertook wide-ranging fan Some clubs are taking the premium GA surveys and identified a sub-section of experience one step further by turning it distinguished roster of clients including season ticket holders who wanted a haven into an entry level hospitality package and many iconic venues, brands and events. Z at half time to enjoy a pint in 15 minutes attracting sponsorship. For example at without the usual GA crush. Liverpool FC, where Legends oversee all At Twickenham, as the expectations of project development work, Carlsberg have

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IN ASSOCIATION WITH LEGENDS 25

products. At Atlético and Tottenham Hotspur, Legends created Loge Boxes, which will also be a feature in AS Roma’s new stadium. Legends’ research revealed that local and regional businesses were seeking private or semi-private space, and expressed the challenge of filling 12-24 seats for 20+ matches a season. However, they were intrigued by the idea of more flexible concepts.

Trend #3. DEMAND FOR TRULY UNIQUE EXPERIENCES Television’s ability to take viewers beyond the playing field and closer to the players before and after the game has helped drive demand among stadium spectators for a similar, up-close and personal experience. Legends worked with Manchester City Football Club who were responsible for the concept and development of The Tunnel Club, the first of its kind in the Premier League, which has revolutionised sports hospitality to provide an immersive experience for supporters. The Tunnel Club has proved very sponsored a large premium GA level at the entertainment and special experiences – all successful at Manchester City and will debut Anfield stadium, holding 2,000 fans who rub of which can be enjoyed without needing to at Tottenham’s new stadium next season. shoulders with hospitality guests on their wear a suit and tie. Legends is now working on similar and new way into the stadium and at their seats on Today’s demand means that hospitality innovative products at stadia throughout the terraces, but at a much more affordable offers must be infinitely more flexible than Europe. price. before. Fans don’t want to be responsible for These lounges offer a view of the teams Food is included in the ticket price, organising large group outings to gain access as they move through to the pitch from their making Liverpool’s premium GA offer a to hospitality, driving the need for smaller changing rooms via one-way glass, bringing step up from that of other clubs. The food groups for dining as well as bar perching. fans as close to the players as possible. is from street carts on the concourse, giving At Wimbledon, Legends carried out a The challenge brought by this explosion fans a wide choice at every game. comprehensive and wide-ranging research of new products and fresh offerings is and planning process on behalf of the delivering quality of experience across the Trend #2: DEMAND FOR A BROADER AELTC to understand their customers. This whole range without creating confusion RANGE OF HOSPITALITY OPTIONS was critical to the development of the future with the ultimate consumer. That means Game day entertaining has changed beyond hospitality offering, ensuring that there is introducing exciting innovations while recognition in the past decade, driven by the right mixture of hospitality packages ensuring a coherent product hierarchy and evolving taste and the commercial reality to reach the newly emerging segments of overall pricing structure. that hospitality buyers are not all corporate. attendees. To achieve this, Legends has developed Individuals and groups of friends are At Turkish football club Galatasaray, a proprietary research platform which increasingly looking to game day hospitality Legends’ research identified that it was utilises the experience from more than as a way of celebrating special occasions important that box holders were able to 1,800 projects across the globe, to create a or simply having a good day out and this, access the premium lounges, to meet and model to develop the right mix of products together with changing tastes among mingle in informal environments, rather to match specific market demand. corporate buyers, means the one-size fits than be constrained to their box. This, coupled with a 360-degree service all approach which typified the stadium Companies’ demand for boxes is also solution approach and understanding hospitality sector for decades is simply no changing. Instead of large boxes or suites of the complexities of facility design longer fit for purpose. – once considered the ultimate corporate and operation, provides owners with It’s a fact: formal is out, casual is in. status symbol – the requirement is for a the knowledge needed to integrate This can mean more quality food options, more personal environment and Legends appropriate experience offers into the varied spaces on match days, in-lounge have worked to create more flexible design and, crucially to provide the return

06.18 : SportBusiness International 26 HEADLINERIN ASSOCIATION : JEROME WITH CHAMPAGNE LEGENDS

on investment. It is important to note that the return is not always limited to financial upside but can be measured in terms of brand enhancement and customer engagement and satisfaction. More choice and exclusivity also mean a requirement for more space. Legends’ experience and creative thinking has allowed them to re-imagine the possibilities for new hospitality spaces within existing buildings or designs, that will enhance the fan experience and maximise revenue. Also, getting hospitality areas with close proximity to the best seats in the stadium becomes more challenging as the offers get more diverse, which requires careful planning from the outset to make sure that the customer journey/experience is not compromised at any point.

Trend #4: CLUBS SEEKING TO GENERATE The Tunnel Club at Manchester City’s Etihad Stadium allows has revolutionised sports hospitality to provide an immersive ADDITIONAL PRE-GAME SPEND experience for supporters Match day has traditionally been a Saturday with fans going to local bars and restaurants Liverpool’s fan zones have been so CONCLUSIONS ahead of the game and arriving at the successful that Legends are managing the In a fast-changing world, teams can no stadium just a few minutes before the action addition of a new fan bar this summer, longer rigidly segment their fan base the starts. providing a heated indoor space for over way they have in the past. Fans are more But the demographic of fans is also ageing 600 fans on match days. All Liverpool’s sophisticated consumers with higher over time, creating a need to bring younger fan zones can be accessed by anyone at the expectations of the products and services fans to the stadium on match day. stadium, not just ticket-holders, broadening they buy and that applies across all Many clubs are now creating fan zones the appeal of these offers. experiences. outside the stadium to create a special When Atlético Madrid moved into the Consequently, there is growing demand match day atmosphere and give fans a Wanda Metropolitano stadium on the edge from fans of all types for more customised, reason to come to the stadium early. These of the city last year, they needed to bring life premium match day experiences. Z typically provide activities for younger to the stadium on match days and activate fans, helping cement their loyalty for life, the large open areas around the stadium. Legends International is at the forefront of and create multiple revenue opportunities Legends, working with their partner developing and delivering these new experiences. through catering and merchandise sales. Centerplate, identified the opportunity Their global planning division, which Richard Fan zones contain large screens and now deliver the fan zones for Atlético and Martin lead in Europe, undertake research, displaying pre-match build up, stages with which include themed food trucks with development and project delivery to deliver on live music, five a side and skills areas, face local restaurant supplied items to give an the largest stages for the most iconic brands. painting, meet the Club mascot experiences authentic and quality feel to the offering. They work closely with their colleagues in and of course food and beverage areas. Legends works with teams across Europe global sales and hospitality to make sure that Bringing fans in earlier also eases queuing on the next generation of experiential fan commercial, operational and culinary expertise for security checks, reduces peak demand concepts that include sponsor activation, is fully integrated in the work they do. for public transport and spreads out traffic greater merchandising exposure and Legends delivers solutions based on data, on the road network. activation on non-match days. analytics and insights from experienced project At Liverpool FC, fan zones have quickly For example, Legends global planning managers, operators and sales team members. become a key ingredient of the match team have led projects to successfully re- We look to the future of each club and venue we day experience. They now have four fan imagine club museums and tours – it is now work with, identifying what their fans of the zones around Anfield stadium, each with a not just trophy cabinets and images from future will look for, so that going to the game on different feel and target audience. past successes, but cutting-edge technology, match day remains a great experience for all. They open four hours before kick-off and virtual reality and augmented reality that are at weekends are busy with fans, many of bringing new fans and customers to the club For more information contact Richard whom are occasional visitors to Anfield, or and engaging them with deep emotional Cheesman at [email protected], or away fans, who come to the stadium for a content that connects and brings them visit the Legends website: full-day experience. closer to the team. www.legends.net.

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28 BUSINESS DEVELOPMENT : UEFA CHAMPIONS LEAGUE

DECISION TIME | THE CHAMPIONS LEAGUE CONTINUES TO DELIVER GROWTH BUT REMAINS UNDER SCRUTINY

F The Uefa Champions League is set to deliver another big increase in revenues but there are doubts it will survive beyond 2024 F Players, coaches and fans see it as club football’s Holy Grail, but some club presidents believe it underperforms commercially F Infantino’s ‘Project Trophy’ numbers would suggest those clubs are right, but they don’t add up for many rights experts

(Getty Images)

BY FRANK DUNNE when it launched in 1992 as a revamp of the Europa League rights from 2018-19 to 2020- European Cup. 21, Uefa said it was targeting revenue growth n Saturday 26 June, Real Madrid At a time when football is in thrall of at least 28 per cent, to reach a minimum of and Liverpool went head to head to gigantism, personal ambition and €3.2bn ($3.84bn) per season. With the bulk in the Uefa Champions League geopolitical machinations, the Champions of the deals for media rights and sponsorship final in front of a live television League remains a benchmark for elite done, European football’s governing body is Oaudience of several hundred million across sporting competition, delivering sustainable on course to surpass that. more than 200 countries. growth and constantly renewing itself. Yet with confederations, federations and It is the culmination of the 26th season Yet for all its success, there are many who leagues exploiting turf wars between sports of a tournament which revolutionised the believe it won’t survive beyond 2021 or 2024. marketing agencies to deliver increases of branding and commercialisation of football From the sale of Champions League and 100 per cent or more for their commercial

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“The media rights to the Champions League are worth $1.6bn a season, compared to $7bn for the NFL, despite there being 1.6 billion football fans in the world and only 150 million American football fans. This gives you some sense of the unrealised potential.” ANDREA AGNELLI, CHAIRMAN OF JUVENTUS, PRESIDENT OF THE EUROPEAN CLUB ASSOCIATION, UEFA EXCO MEMBER

rights, Uefa’s targets look to some club presidents like a lack of ambition. The position of the more aggressive clubs may have been strengthened by the claim of Fifa president Gianni Infantino that a consortium of investors is prepared to put up $3bn for the rights to an expanded, quadrennial Club World Cup. A 24-team Club World Cup would not replace the Champions League as football’s premier international club competition. Nor is it likely to cannibalise the revenues of the European tournament. What it will do, if Infantino’s numbers stack up, is give the top clubs greater leverage to push Uefa for more radical changes to European competition and greater control over it. The pressure from the top clubs to earn more, both in absolute terms and relative to smaller clubs, has driven most of the changes to competition format and access rules. It has (David Ramos/Getty Images) also gradually forced Uefa away from a policy of revenue optimisation to one of revenue maximisation. Optimisation means delivering the optimal the Team Marketing agency, which takes a Europe’s pay-television market. Making the result for a football governing body, one small commission on sales. Team, set up by most of competition in this market is also the which enables Uefa to hold back revenues two former executives from the ISL agency, most manifest example of the shift by Uefa for the wider development of the game. Klaus Hempel and Jürgen Lenz, is far more from revenue optimisation to maximisation. Maximisation means delivering the largest than an agent. Insisting on a free-to-air component in amount of money possible to the clubs. It was the creator of the Champions coverage in previous cycles meant leaving This shift raises the question of whether League concept and remains a trusted adviser money on the table but ensuring matches there will come a point at which wider of Uefa, helping to guide the evolution of could be seen by everyone. developmental objectives get junked the competition since its inception. Team In the current cycle, Uefa was able to completely. And if so, at that point, does it has an option to sell the rights through to exploit competition in four of the big five still make sense for Uefa to be handling the 2024 but beyond that, if the top clubs force a markets – the UK, Italy, France and Spain sale of commercial rights to the competition? revolution of their own, its role is unclear. – to secure big increases in revenues. For Ahead of the 2018-2021 cycle, Uefa agreed 2018-19 to 2020-21, the strategy of allowing to create a joint venture company with the Growing pains greater exclusivity to pay-television has clubs to oversee the management of its In the current cycle, 2015-16 to 2017-18, the intensified. club competitions. One well-placed football value of the Champions League media rights The deal in the UK is a good example: executive said of the joint venture: “This is increased by 43 per cent, from €1.147bn per pay-television broadcaster BT Sport renewed a game changer. The clubs are very involved, season to €1.643bn per season (see table, p31). rights to both competitions, paying about down to micro levels, taking part in lots of The percentage increase in the next cycle €456m per season, an increase of 27 per meetings and discussions. could end up being higher, but the final total cent on its current deal, worth €358.7m per “It is genuine co-ownership. But it could will depend on China, where a deal with the season. prove to be a Trojan Horse, where the clubs Desports agency fell through last year due One of the reasons BT was prepared to say: ‘we can do this; Uefa can provide the to concerns about the quality of the bank pay more was greater exclusivity. In the new ball, sends the refs and give it their blessing, guarantee the agency put up. So far, a new deal, BT will have exclusive highlights and but it’s our competition’.” deal has not been signed in the country. clips rights, which it currently shares with The commercial rights to both The engine room for growth in the value of commercial broadcaster ITV and media competitions are sold on behalf of Uefa by the Champions League media rights has been group News UK.

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Missed opportunities? There are those in the industry who extol the virtues of the competition – who still see it as best in class – but would write ‘could do better’ at the bottom of Uefa’s end-of-term report. Some rights traders and football officials believe Uefa does not need to abandon its basic commercial model to achieve higher revenues, merely to adapt more quickly to changes in the media and sponsorship markets and in consumer consumption habits. Criticisms of the Uefa/Team handling of the competition as a commercial entity include the following: • Uefa has not been proactive enough in building value in Asia, for example through experimenting with kick-off times • All Uefa and Team staff are based in , there are no feet on the (Julian Finney/Getty Images) ground around the world to build political and institutional relationships in growth regions like Asia and the Americas, in This strategy has worked extremely well values from sponsors as the competition contrast with other sports leagues and at a time of intense competition between disappears from free-to-air television across other agencies which have created a global traditional, big-bundle pay-television Europe. Japanese car manufacturer Nissan footprint operators. But there are signs that this period renewed its deal with Uefa for the next cycle • Uefa is too conservative in developing is ending and that the next thing which will in October 2017, but its fee was either flat products for social and digital media drive value – expected to be social media or down on the €60m per season it paid for for fear of losing the pay-TV exclusivity platforms or tech companies – is yet to take 2015-16 to 2017-18. premium, an approach that contrasts off. At the time of the deal, Stephen Hutchison, with that of leagues like the NBA, which England’s Premier League has just suffered deputy managing director (international) continually pushes the digital envelope a 13-per-cent drop in the value of its domestic at the Fuse agency, which advised Nissan, without diluting broadcast value live rights, albeit with two packages of rights told Sports Sponsorship Insider, sister • Sponsor partners are not provided enough, still to be sold. publication of SportBusiness International: “It or the right kind, of digital content for the Italy’s Serie A has run three auctions for its will come as no surprise to hear that from same reason, and have too many limits and domestic live rights over the last 18 months a brand perspective we would have much excessive holdbacks on the content they but the main pay-television operators, Sky preferred Uefa to seek deals with free-to- can use. “No broadcaster ever lost a viewer Italia and Mediaset Premium, have not been air broadcasters. We understand Uefa’s because Heineken had some clips on a prepared to match the €945m per season they commercial strategy, but it clearly does have social platform”, says one consultant currently pay. an impact on how we value the property. • Not selling betting rights. Team is thought In France, it will be a challenge for Ligue “Specifically, we re-looked at the value of to have argued for doing so, but Uefa has 1 to maintain the value of its domestic the property with the pending move to pay- always blocked this due to concerns about live rights after pay-television broadcaster television in mind and made our commercial integrity and match-fixing and incumbent rights-holder SFR Sport, offer to Uefa on that basis.” • Not exploring regional sponsor deals for a division of the Altice telco, said it was specific categories on the model adopted “unlikely” to bid for the next cycle of rights. successfully by Manchester United and Spain’s LaLiga is also worried. The other clubs. Mediapro agency, a current rights-holder, “Win it, and you are practically There are some obvious counter- said it was considering stepping aside from immortal; certainly, you write arguments. The ceiling on the value of the the upcoming auction process, expected early media rights in Asia is undoubtedly linked next month, to focus on production. your name into your club’s to kick-off times, with matches coming into If operators in these markets feel they can history.” most of the continent in the early hours of afford to scale back their investments in their the morning. domestic leagues, the real drivers of their PAUL WILSON OF THE GUARDIAN ON THE National leagues, which play at the businesses, it seems unlikely that Uefa will SIGNIFICANCE FOR A COACH OF WINNING weekends, are free to schedule kick-offs fare better. THE CHAMPIONS LEAGUE at lunchtime on a Saturday or Sunday – to A further challenge is extracting premium coincide with peak time in Asia – without

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“In a few years you will certainly have a European league over the weekends. It is inevitable.” ARSÈNE WENGER ARSENAL MANAGER 1996-2018

losing or alienating audiences. But this wouldn’t work for Champions League matches on Tuesdays and Wednesdays when people are at work or school. Unlike agencies like IMG, Infront or MP & Silva, which sell hundreds of properties requiring almost constant engagement with broadcasters, a one-client agency such as Team selling a product once every three years has no need for a 365-day presence in any single market in the world. And unlike leagues like the NBA and the Bundesliga, which are commercial entities, Uefa is primarily a political entity. The high-level of exclusivity provided to Uefa president Gianni Infantino will soon report on private investor interest in the Club World Cup (Matthew Ashton - AMA/Getty Images) pay-television operators reflects the fact that the competition has become a must-have property for the sector. Messing with this Delivery time for Infantino format, which would feature 12 teams from dynamic would be highly risky, especially At the time of going to press, there were still Europe, the consortium is said to be ready to at a time pay-television companies are far too many unanswered questions about pay $3bn per edition. The 2017, seven-team rationalising their investments. Infantino’s plan to create a Global Nations edition of the tournament generated $37m As one executive involved in the League for national teams and an expanded in commercial revenues. The consortium distribution of European football rights put Club World Cup to allow for a meaningful would pay $2bn for each edition of the it: “If you are a tier two or tier three property, analysis. Infantino will provide Fifa with an biennial Global Nations League, after the you want to build awareness and profile, you update on his discussions with investors on inaugural tournament, for which it would need to build an online community, so it is June 10. only pay $1bn. worth looking at any distribution platform There is concern among senior European Such numbers might make sense to a you can. You are not going to be giving away a federation officials at the idea of selling a sovereign wealth fund with a soft power huge amount of broadcast value to do that. 49-per-cent equity stake in the competitions agenda, and several top clubs, including “For premium rights, different rules apply. to private investors, reportedly led by Real Madrid and Barcelona, have expressed In the last couple of cycles, the Champions Japanese conglomerate SoftBank and the initial support for the underlying principle of League has evolved from a nice-to-have sovereign wealth funds of Saudi Arabia expanding the Club World Cup. But once the property to a must-have property that drives and the United Arab Emirates. There is project has been fully elaborated, if the clubs your business. also almost universal scepticism about the and federations don’t believe that the figures “That business revolves around exclusivity. numbers which have been leaked to selected represent what can be earned back from the If you are using it to drive your business, you press outlets. market, will they really sign up? have to be able to say to consumers: it’s only For the planned 24-team Club World Cup, On Saturday night, underneath the lights available here.” an expansion of the current seven-team of the NSC Olimpiyskiy stadium, as the star-ball flag shimmers on the centre circle and the players get goose bumps listening to Tony Britten’s adaptation of Handel’s Zadok Champions League per-season TV and sponsorship rights revenue, 2009-2018 (€m) the Priest, this will all be briefly forgotten. But in the following two weeks, before CYCLE TV % INCREASE SPONSORSHIP % INCREASE the Fifa congress in Moscow on June 13, 2009-10 - 2011-12 890 35 260 33 football’s power brokers will decide whether the sport’s future is one of super-sizing and 2012-13 - 2014-15 1,147 29 298 14.5 soft power or one of steady, sustainable growth. The battle is likely to be intense. 2015-16 - 2017-18 1,643 43 340 14 It is too early to say who will emerge as Sources: TV Sports Markets Rights Tracker, Sports Sponsorship Insider champions. Z

06.18 : SportBusiness International

34 NEWS ROUND-UP

Media THE MOST POPULAR NEWS STORIES ON TV SPORTS MARKETS

DEAL OF THE MONTH by Robin Jellis

Pay-television operator Foxtel and commercial broadcaster Seven will pay an average of A$197m (€123m/$149m) per season for rights to all Cricket Australia properties for six seasons, from 2018-19 to 2023-24.

So Australian cricket has changed hands? Yes, it’s all change after five seasons with commercial broadcasters Nine and Ten. The (Quality Sport Images/Getty Images) writing was on the wall back in March, when Nine unexpectedly gazumped Seven to Australian Open rights. It changed the landscape of summer sport 1. ELEVEN POUNCES FOR UK LALIGA RIGHTS in the country. As a result, Nine’s appetite and International sports broadcaster Eleven Sports has moved into a new budget for cricket rights was reduced. Conversely, market after ousting pay-television broadcaster Sky as the rights-holder Seven’s greatly increased, and Foxtel saw the in the UK and Ireland of LaLiga, the top division of Spanish club football. opportunity to work with an existing partner (the two share rights to rugby league’s NRL and Eleven, which currently operates in Belgium, Italy, Luxembourg, Poland, Australian Rules football’s AFL). Singapore, Taiwan and the US, has agreed a three-season deal, from 2018-19 to 2020-21. It was not immediately clear whether Eleven planned to launch a Who gets what? new channel or exploit the rights on an OTT basis. Foxtel is paying the lion’s share in the new cycle 2. DAZN LANDS WORLD CUP RIGHTS IN GERMANY because it will have exclusive rights to One Day DAZN, the OTT service operated by digital sports media company Perform, Internationals and T20 Internationals of the has acquired a package of rights in Germany for the 2018 Fifa World Cup. Australian team, plus 16 matches per season from the BBL. Foxtel and Seven will simulcast national- DAZN has sublicensed highlights rights from SportA, the sports-rights team Test matches and the other 43 matches per agency of public-service broadcasters ARD and ZDF. Clips from all 64 season of the BBL. Foxtel will exploit its rights via World Cup games will be available as soon as 45 minutes after the final its Fox Sport pay-television channels. whistle. The highlights will be offered as part of the standard €9.99 ($12) per month subscription package. Why did Fox want it? 3. PERFORM SEALS $1BN MATCHROOM BOXING USA DEAL Foxtel’s appetite for the rights was driven by Perform has agreed an eight-year deal worth $1bn (€840m) with Matchroom telco Telstra’s interest in supporting the share price of the pay-television operator. A deal to Boxing that will lead to the creation of a US-based joint venture, Matchroom merge Foxtel and Fox Sports – once separate Boxing USA. The venture will stage 16 fights per year in the US, with DAZN entities – was confirmed in March and will involve having exclusive rights to the bouts, as well as Matchroom’s 16 annual UK Telstra selling 15 per cent of Foxtel to media group fight nights. Perform will own just under half of the joint venture, with News Corp, which will then own 65 per cent DAZN set to launch in the US this summer. of the combined company. Foxtel’s ebitda and 4. TWITTER EXPANDS CONTENT OFFERING WITH F1, ESPN subscriber numbers have fallen over the last year, and Telstra needs both metrics to trend positively Twitter has unveiled a raft of new content partnerships, including Disney before floating more of its share in the company. and Formula One. Under the partnership with the motor-racing world Both News Corp and Telstra believed acquiring championship, a live post-race show will be available exclusively on Twitter, cricket rights was the best available option to featuring former F1 stars, including Nico Rosberg, and interviews with help improve these metrics. Foxtel is hoping its drivers, engineers and team principals. Post-race highlights will also be exclusive hold over certain rights will boost its distributed via Twitter video clips. subscribers. 5. FACEBOOK TOASTS APPOINTMENT OF NBCU’S BEER What about Seven? Facebook has made its latest high-level appointment as its seeks to bolster The deal will give Seven roughly double the hours its presence in the sports-rights market, with Rhys Beer joining from US of premium sport as its current agreement with media group NBCUniversal. Beer, most recently NBCU’s vice-president of Tennis Australia, which is also thought to lose sports distribution and business development, has taken up a role leading money for the broadcaster. Z Facebook’s sports partnerships and programming initiatives in Europe, To access more detailed analysis of the Cricket the Middle East and Africa. In March, Peter Hutton quit as Eurosport chief Australia deal, and others like it, subscribe to TV executive to become Facebook’s director of global live sports partnerships Sports Markets. and programming. Z

06.18 : SportBusiness International MEDIA : DATA 35

WORLD CUP MEDIA RIGHTS FOCUS, POWERED BY RIGHTS TRACKER

Fifa World Cup 2018 media-rights revenue, by region

Europe $ m North 1080 America $587m Middle East & North Africa $187m Asia Pacific $681m

Sub-Saharan Latin Africa America & $80m $ m 450 Total $3066mm

Source: TV Sports Markets Rights Tracker

Media-rights revenue by region, 2014 & 2010 World Cups The total value that Fifa – football’s global governing body – will receive for its 2018 World Cup media-rights will be about $3.066bn (€2.62bn). 2219 This is an increase of about 38 per cent on the 2014 tournament, valued 2075 at about $2.219bn. Fifa will see significant increases in value in certain regions: North America is an area of success, with an increase of about 160 per cent. In the US, sports broadcaster Telemundo acquired Spanish-language rights, which are even more valuable than the English-language rights 1137 1086 acquired by pay-television broadcaster Fox Sports. In Canada, media group Bell Media paid a three-fold increase at a time when football in the country was increasing in popularity. Rights in the Middle East and North Africa will increase by about 240 506 446 per cent in a multi-territory deal with pay-television broadcaster beIN 272 263 225 225 Sports. 23.5 55 11 55 However, in Europe – the most lucrative region – Fifa struggled to increase its revenue from 2014 to 2018. Most European deals were 2014 ($m) 2010 ($m) signed off at a boom time for top football rights in Europe, but the fact that the World Cup is often a listed event in European markets limits Sub-Saharan Africa Europe TOTAL competition for the rights. North America Middle East & North Africa This is highlighted in the lucrative UK market, where the options are limited to public-service broadcaster the BBC and commercial Latin America & Caribbean Asia Pacific broadcaster ITV – who have a long-standing practice of not competing with each other.

To subscribe to TV Sports Markets or Rights Tracker call Tom McMullen on +44 (0) 207 265 4223 or email: [email protected]

06.18 : SportBusiness International 36 HEADLINERIN ASSOCIATION : JEROME WITH CHAMPAGNE FIBA SC

WORLD BASKETBALL SUMMIT PROMISES TO BRING BASKETBALL TOGETHER FIBA secretary general Patrick Baumann looks ahead to the first World Basketball Summit, which takes place in Xi’an, China, on October 3 and 4

Left to right: Mark Tatum, deputy commissioner and chief operating officer at the NBA; Patrick Baumann, Fiba secretary general and Adam Silver, commissioner, NBA.

Why is FIBA holding the World opportunities we face. competition system to ensure maximum Basketball Summit? The theme of the conference, ‘Building exposure for national teams and the primacy As the international governing body for The Future of Basketball Together,’ sums of the FIBA Basketball World Cup which will basketball our mission is to develop and up not only its objectives but the spirit in be hosted across eight cities in China next promote the game worldwide as well as which it is being held. It is about sharing and year. support our National Member Federations collaboration across the global basketball In the past it had been played in the same and the many other stakeholders in the sport family. summer as the FIFA World Cup which to maximise their potential. tended to hoover-up media attention in The World Basketball Summit is a great Why now? many parts of the world. By moving it to new initiative which supports that process. This is the perfect time to launch the World 2019 – and then every fourth year – we It’s hugely exciting because, for the very first Basketball Summit because there is so are creating space for the competition to time, it will bring together leading figures much happening in the sport and so many flourish worldwide. Couple this with regular not only from our National Federations but important subjects to discuss. Qualifiers over 18 months which ensure that, also from leagues and clubs as well as the These are momentous times for basketball for the first time, every national team gets media and business sectors which support as we begin to see the positive results to play games on home soil in front of their the sport to meet and discuss the issues and of changes we have introduced to our own fans and we are confident that the FIBA

06.18 : SportBusiness International HEADLINERIN ASSOCIATION : JEROME WITH CHAMPAGNE FIBA SC 37 37

Basketball World Cup will have new meaning will be played after the World Basketball and a fresh resonance. Summit in Shanghai on October 5 and in National teams are key to the future Shenzhen on October 8. popularity of basketball. They engage with There are many lessons to be learned fans and inspire youngsters to play the game from the way that basketball in China has more than anything else. grown over the years and they will be shared At the same time, we are seeing the rise with the audience at the World Basketball of 3x3 basketball which has proved a major Summit. success since its introduction little more than a decade ago. It has its own World Cup, Will the NBA be part of the Summit? a World Tour and, in addition to being part Yes of course. In fact, commissioner Adam of the Youth , is now part of Silver and his deputy Mark Tatum were the programme of the 2020 Olympic Games among the first to agree to take part and we in Tokyo. are delighted to have them on board. 3x3 basketball is the biggest urban team The NBA is an important part of the FIBA sport in the world and we see it as integral to family and a great supporter of our work to Yao Ming, president, Chinese Basketball Association the future of basketball. It provides thrilling grow the game around the world, so they (Getty Images) action which makes it a magnet for young are obviously one of the main actors of the people. In many cases it gives them their first Summit. acknowledged global expert on the subject taste of the game and allows them to develop FIBA and the NBA work closely together followed by a discussion by panels chosen essential skills as players. on a range of projects such as Basketball to reflect the experience and interest of There are just two of the hot topics Without Borders, our global development relevant stakeholder groups. which are sure to be discussed at the World and community relations outreach Among the topics which will be discussed Basketball Summit, where we’ll look to ways programme. are successful strategies for growing the sport of ensuring that all stakeholders have the The NBA is, by any measure, a global worldwide, optimising the value of leagues knowledge and insight they need to be able league. The world’s best players want to and their clubs, how media and technology to benefit from the momentum we continue pursue careers with NBA clubs and its will shape the future of basketball, to build. worldwide popularity plays an important role maximising the value of the relationship in creating excitement about our sport on between basketball and brands and the role And why China? every continent and encourages youngsters that our sport can play in society. In fact, this will be the first of three World to get involved. Basketball Summits which will be held in the Who will be involved? historic city of Xi’an in 2018, 2019 and 2020. What’s on the agenda? This is an event for the whole basketball China has demonstrated to the world their The World Basketball Summit will be family and the businesses which work in capability for hosting international grand structured around a number of key and around it. It is an opportunity to meet, events; FBWC 2019 is obviously one of them. themes, each of which will focus on share and to learn. Every session is designed Therefore, we are delighted that China will identifying opportunities and strategies to deliver maximum value to delegates host the Summit as well, and thank the Local for improvement and growth. Each strand who will come from all over the world Organising Committee, city and provincial will consist of a keynote address from an and represent every stakeholder group. In governments for their valuable input and addition to representatives of the federations hard work to make it a success. represented by FIBA, participants will There is a tremendous appetite for include leagues and clubs, players’ basketball in China, where it outranks organisations, educational bodies, media soccer in popularity. The China Basketball and technology companies and the brands Association (CBA) is experiencing strong which forge strong and mutually profitable growth under the leadership of Yao Ming relationships with the sport. and the outlook is positive. More than 100 Naturally there will be a strong presence million Chinese fans watched their National from the host city and nation among the Team in the final of the FIBA Asia Cup the speakers and panellists as well as delegates. last time they won it in 2015! There is also a Our speakers are not only experts in their great passion both for the 20-team domestic subjects but visionaries capable of delivering league (CBA) and for the NBA, which has had fresh, thought-provoking perspectives which an active presence in the country for many challenge and inspire as well as inform. Our years and has helped to cultivate the sport’s goal is to ensure delegates return from the popularity. Summit better motivated and equipped This year’s NBA China Games, between to play a role in Building the Future of the Dallas Mavericks and Philadelphia 76ers, USA versus Australia, 2014 Fiba Women’s World Championships Basketball Together. Z (Getty Images)

06.18 : SportBusiness International 38 PEOPLEPEOPLE :: HEADLINERHEADLINER

06.18 : SportBusiness International PEOPLE : HEADLINER 39

“Why would you kill the buffalo and eat only one steak?” FRANCIS TELLIER, CHIEF EXECUTIVE OFFICER, HOST BROADCAST SERVICES

Francis Tellier, who founded Host Broadcast Services after heading the broadcast operation at France ’98, reflects on the massive changes to the World Cup media environment driven by technology and broadcaster demand

y the time the winning team is a foreign company to produce there,” Tellier “I enjoy football but most of us in celebrating with the trophy at says. broadcasting are not too emotional about it Moscow’s on July Three World Cups later Tellier and the and it’s much better that way. Working in a 15, more or less half the people on the HBS team not only remain in place but multi-national environment you can imagine Bplanet will have watched some of the action continue to flourish as they look forward to the teasing which goes on, but the English from World Cup 2018. Russia 2018, aware of the challenges ahead seem to be the only ones who take it super That’s 3.8 billion people who will have but confident in the lessons learned over the seriously – you just can’t kid with them! watched on TV, online or mobile and the years. “When I was in radio I would often leave chances are the content they devoured was the studio not knowing what had actually created by Host Broadcast services, the Wireless beginnings happened in the game because I was so organisation set up to cut the jewel in Fifa’s Tellier started his broadcast career in radio deeply involved in the technical production. I crown. in France and was head of operations for guess we were working ‘below the water’ and But, says its founder, only a handful of French national radio during Spain ’82, where didn’t need to be as knowledgeable as the people know or care who HBS are. he learned that managing major broadcast producers and journalists.” “That’s the way it should be. We are a white operations was not simply a matter of He remained in France overseeing radio label service working for Fifa,” acknowledges meeting the technical challenges. operations during Mexico ‘86, a tournament Francis Tellier. The sports broadcast veteran “It’s about the people as well and in which earned the reputation of ‘the was called upon to launch HBS to provide Spain we had to deal with a situation where Chernobyl of broadcasting’ because of the a specialist host broadcast services for the employees threatened to stop working if their myriad technical problems that were faced. 2002 World Cup in Japan and Korea and per diems [daily expense allowances] weren’t “There were situations where we would has seen it evolve to become a mainstay increased,” he says. be getting, for example, commentary in the of the industry, servicing a range of events “The experience taught me a lot. In fact, wrong language. But things got better after including the Asian Games and rugby World with radio you are given responsibilities Manuel Romero – who went on to head the Cup as well as Fifa competitions. when you are quite young…perhaps Olympic Broadcasting Services – took thinks That it has come so far is remarkable sometimes when you are too young. It’s into his own control and went in with two given the scepticism which surrounded its fascinating because you learn to do a lot guys and fixed the problem overnight.” inception. without much money. It’s about going ahead Before the emergence of the cash-rich “Most industry experts said we would fail and doing things and then learning from your but short-lived super agencies, rights to because we had to produce in Japan and mistakes.” most major international sports events were Korea where there were issues with unions Tellier, now 65 and preparing to step almost automatically acquired by continental and the local broadcasters. Originally the down from his current role at HBS, says that broadcast unions and the convention was Japanese broadcasters wanted to handle although he has built a business by servicing that the host country’s national broadcaster production in return for getting the rights for the biggest football property on the planet, would assume host broadcast duties. nothing. They said it would be impossible for he doesn’t consider himself a soccer fan. After France was awarded the 1998

06.18 : SportBusiness International 40 PEOPLE : HEADLINER

FRANCIS TELLIER continued...

tournament, Tellier became the head of the bigger operation after partners Sony and host broadcast operation almost by accident ESPN demanded coverage of 27 matches. and found himself on the steepest of learning “It worked reasonably well but whenever curves. you have a second production it suffers. “At the outset we had a chairman who was With 3D we had fewer cameras and although meant to play an operational role but, after some effects were spectacular, overall the six months or so, he got another job and said production was inferior. Now, as we look to he could only come in on Friday afternoons 2018 and the introduction of Ultra HD and and that it was down to me to manage and HDR it will be a single production. That way make it happen,” Tellier remembers. nobody will be able to say they didn’t get the “He was actually very helpful and best service.” supportive, but the fact is that when I started While the World Cup has remained at the project I was still very much an engineer. the forefront of technological innovation, “To start with we were working on a HBS has also responded to demands from shoestring because money was tight and broadcasters for a wider range of non-match there was no big TV department at Fifa content. to work with. Instead we had a direct “In the beginning few people took the relationship with Sepp Blatter, Keith Cooper service but over the years it became really (Fifa’s head of communications) and the ’98 and told me not to accept any offer until popular. We have EBG crews embedded Local Organising Committee. It really was a we had a chance to talk. The result was a with each team and others shooting stories different century!” consultancy project which ultimately led to about the host country and the fans and in Production requirements were very the incorporation of HBS in 1999, in principle many ways, it has changed the nature of HBS. different as well. just to handle Japan and Korea in ’02. Initially it was an engineering and venue- “We only produced the match itself from 10 The result, as they say, is history. HBS operations business but now the biggest minutes ahead of kick-off until three minutes not only delivered in 2002 but went on to team is production and post-production and after the game and, of course, we were build a broader-based business to serve developing multi-media products including responsible for creating the international the broadcasters desperate to keep abreast the white-label turnkey apps which are then broadcast centre to support the broadcasters of the way that technology was changing branded by individual broadcasters. from around the world. All in all it was a far expectation of them both in television and “We have such a variety of customers and more limited task. online. provide something for all of them. There are “There were problems along the way of “It has been a questions of building layer some we never see, and they are just happy to course, like the graphics provider going after layer on the foundations that we take the world feed with English commentary. bankrupt three weeks before the tournament created in Japan and Korea. It was about new For them we now produce a complete and us having to visit each of their operators methods of production, new technologies show starting an hour before the game and and persuade them to continue working by and listening to broadcasters all the time,” finishing an hour afterwards. Others take assuring them that we would ensure they Tellier explains. everything we offer on multi-feed.” were paid. Technical milestones have included “The range of services we provide now also “But the broadcasters could see that Germany ‘06 and the first World Cup helps reduce the footprint of the operation. we were customer-focussed and that the delivered high definition from a single Some broadcasters opt to keep their main atmosphere was different and more co- production, something that only happened studio at home and produce remotely as it operative than in the past. That allowed us to after Tellier had campaigned hard to lets them send fewer people and reduce costs. build good relationships,” he says. convince the powers that be that it was not For others we construct studios offering only feasible but necessary. iconic views of the host city and country.” Changing of the guard “There had been HD before but it had In Russia these will be on Red Square in France ‘98 was the final World Cup under always been from a separate production Moscow with views of Saint Basil’s Cathedral the auspices of the ‘old guard’ of Broadcast which meant that the actual production, and the Kremlin. Unions after the EBU – still basking in its in terms of number of cameras and shots, The role of World Cup host broadcaster previous three event deal – refused to meet wasn’t as good as standard definition. has developed hugely since Tellier began the Fifa’s new value expectations and the ISL “To give you an idea what we were up his journey on home soil 20 years ago and agency began to supercharge value by selling against I was called into a board meeting in he has a neat way to sum up the way the to individual territories. It also meant that Switzerland, where they still only had 16 x 9 operation has developed to meet demand, old host broadcaster arrangements could be format screens and they weren’t convinced although vegetarians may want to turn away revised. until the chairman insisted that, as we had now. “The rights had gone to ISL and Kirsch delivered in ’02, we should be allowed to get “A long time ago I asked: why would you but those guys didn’t really understand the on with it. I think they were worried people kill the buffalo and eat only one steak? Today technical part of the broadcast operation. would miss goals because they were scored (at HBS) everything is recycled and reused. They visited the IBC in France and, I think, it outside the frame!” “That’s why, for me, there is a very clear scared them a little,” Tellier explains. In 2010 what was intended to be a small- future for host broadcasting. It is a niche but “Stephen Dixon of ISL contacted me after scale experiment with 3D turned into a far a very high-level niche,” he says. Z

06.18 : SportBusiness International EVENTS : BT SPORT INDUSTRY AWARDS 41

Out of office

BT SPORT INDUSTRY AWARDS London, 26 April, 2018

he very best work from across the sports industry was recognised and celebrated in front of a sold- out room of industry executives Tand stars from sport at the 17th BT Sport Industry Awards in April. Multiple new categories were contested at the event, including prizes to recognise the best in performance technology, analytics, fan communities, film content, sustainability in sport, and diversity and inclusion. Z

THE FULL LIST OF CATEGORY WINNERS:

BRAND OF THE YEAR BEST USE OF ANALYTICS, DATA OR THE INTEGRITY AND IMPACT AWARD Winner RESEARCH AWARD FOUNDED BY DOW JONES SPORTS Adidas UK Winner INTELLIGENCE Highly commended: ICC Women’s World Cup organising committee – Recipient NFL Setting new benchmarks for women’s sport Rachael Denhollander PERFORMANCE TECHNOLOGY OF THE CAMPAIGN OF THE YEAR DIVERSITY AND INCLUSION AWARD YEAR Winner Winner Winner Stonewall & TeamPride – Rainbow laces 2017 Parallel London – Parallel London 2017 Highly commended Kitman Labs – Athlete optimization system FILM CONTENT OF THE YEAR Uefa – #EqualGame SUSTAINABILITY INITIATIVE OF THE Winner YEAR Lucozade Sport GOVERNING BODY OF THE YEAR Winner Winner RFU – Rugby Energy Club INTERNATIONAL MARKETING Rugby Football Union (RFU) CAMPAIGN OF THE YEAR Highly commended DIGITAL COMMUNITY OF THE YEAR Winner English Football League Winner Manchester City Football Club – Win an advert Adidas Football - Glitch for your Wix business AGENCY OF THE YEAR Winner COMMUNITY PROGRAMME OF THE EVENT OR COMPETITION M&C Saatchi Sport & Entertainment YEAR SPONSORSHIP OF THE YEAR Highly commended Winner Winner Two Circles West Ham United Foundation – 150Club Dimension data – Revolutionising the viewing experience of the Tour de France YOUNG AGENCY OF THE YEAR ENTERTAINMENT EXPERIENCE OF THE Winner YEAR PARTICIPATION EVENT OF THE YEAR WeAreFearless Winner Winner London 2017 – Hero the Hedgehog Parallel London – Parallel London, 2017 LEADERSHIP IN SPORT AWARD AMBASSADOR, INFLUENCER OR TEAM Recipient PARTNERSHIP OF THE YEAR BEST USE OF PR AWARD QPR & QPR Community Trust Winner Winner Betsafe – Creating a Notorious PR Campaign COUTTS OUTSTANDING CONTRIBUTION Standard Life Investments – Principal Partner with Conor McGregor TO SPORT AWARD of the British & Irish Lions Winner Highly commended SOCIAL MEDIA CAMPAIGN OF THE YEAR Sir Mo Farah EA Sports Fifa 2018 – Fifa ratings campaign Winner European Tour – Access all areas

To find out more about the event, go to: www.sportindustry.biz/events/awards/2018

06.18 : SportBusiness International FIFA Master ranked Europe’s No.1 course for a record 5th time by SportBusiness

CAS/DAS in Sports Law

- 200 120 Looking for unique people to join - - - your organisation? - 7 3300

One of a kind in Switzerland Launched in 2017 www.cies.ch Jair Bertoni, Director of Member Associations Americas at FIFA, ADVERTISING FEATURE and FIFA Master alumnus

The Argentinian Jair Bertoni has always been crazy about football – and that love for in other fi elds’, like governance, women’s football, the game led him to pursue a career in football administration, fi rst enrolling in the amongst others. In a nutshell, I assist these 23 MAs FIFA Master, which led him to work at the European Leagues, and ultimately to FIFA, in several aspects relevant for growing football in as Director of Member Associations Americas. those specifi c territories.

Jair breathes football since a very young age. His father, Daniel Bertoni, won the What is the thing that you love about your job? FIFA World Cup in Argentina in the same year he was born. He refl ects: “football And what is its biggest challenge? has always been part of my life, incorporated in my genes, but also integrated in the I love to develop football. Football is not just a culture of the places where I grew up, namely Argentina and Italy”. In 2004, he was sport but also a catalyst for a better society. already working in sport, in Buenos Aires, when he decided to pursue his dream to When you can collaborate to improve this part of study and work in Europe. football, you are directly contributing to make true the dreams of thousands of girls and boys, as they can now play in great conditions due to the installment of new After graduating from the FIFA Master in 2005, Jair worked for almost ten years football pitches or the creation of a regional or national competition, for example. as Head of Administration of the European Leagues (previously known as EPFL), This is when you can feel a sense of accomplishment. (The biggest challenge is) to the entity representing the voice of the 31 major European football leagues and improve the capacity of the MAs to operate effi ciently. It is necessary to invest in associations of clubs at international level. During his time at the European Leagues, people and reinforce the administration of the MAs to have proper planning and he managed the operational and political relations with senior authorities of football long-standing effi cient strategies in place. governing bodies (such as FIFA, UEFA, FIFPro, ECA, etc.), as well as European and international political institutions and national governments. He also worked as a How important was the FIFA Master for your career? consultant for FIFA, before joining the organization in November 2016. The FIFA Master was defi nitely a turning point. From the professional and personal perspectives, it is priceless to study and work closely with people from a wide range In this interview, Jair Bertoni talks about his role at the world governing body for of nationalities, understanding their cultures and idiosyncrasies, and promoting a football, and how important the FIFA Master was for his career. constructive team spirit. For me, the FIFA Master was the door that opened the possibility to learn more about sport worldwide and, above all, enter the sport labor What is your job like, as Director of Member Associations (MAs) Americas at FIFA? market in Europe. I am responsible for the relations with 23 MAs in the region of Americas. In particular, my main duties are to support the MAs with the development of football Are you still in touch with classmates or other alumni? How important is that network in a comprehensive manner, from the set-up of their internal structure and strategic for you? framework to the organization of competitions and building of new or refurbished It has been more than a decade since I graduated from the FIFA Master and not only infrastructure, among other key areas and projects. My objective is to effectively l am still in touch with them, but I have made friends for life. I always highlight that implement the FIFA Forward Program, the primary development program of FIFA. In the alumni association is by far amongst the strongest positive aspect of the FIFA addition, I liaise between other FIFA divisions and the authorities and administrations Master. The alumni offer an extensive network constituted by qualifi ed professionals of those MAs in order to cooperate on implementing different projects and activities working in the sports industry in all the corners of the world.

CIES - Centre International d’Etude du Sport, avenue DuPeyrou 1, 2000 Neuchâtel, Switzerland - Phone +41 (0) 32 718 39 00 - Email fi [email protected]

FIFA Master ranked Europe’s No.1 course for a record 5th time by SportBusiness

CAS/DAS in Sports Law

- 200 120 Looking for unique people to join - - - your organisation? - 7 3300

One of a kind in Switzerland Launched in 2017 www.cies.ch 44 HEADLINERIN ASSOCIATION : JEROME WITH CHAMPAGNE FEI

WILD AND WESTERN Reining is a dynamic equestrian discipline that sees riders and horses performing cowboy-style manoeuvres. A superb spectator sport, it’s growing in global popularity.

Stefano Massignan on Yellow Jersey at the Alltech FEI World Equestrian Games 2010 (FEI/Kit Houghton)

06.18 : SportBusiness International H sliding stops. ofthereining horse,the signature move (180-degree turns)and,whatmanyconsider (changing thehorse’sleadinglegs),rollbacks circles and360-degree spinsto leadchanges range from Thesemanoeuvres an arena. onhorsebackin manoeuvres cowboy-style displayingit seeshighlyskilledriders one. Always dramatic, always entertaining sport to it,reining issurely the represent capable of.” sometimes greater are actually thanthey tothe confidence aperformance achieve tocommunity andheisknown givehorses psyche. Hisisrecognised inthe talent toseems beableto tapinto ahorse’s and somehow rides aslightafeather ShawnWhilst may notbeasmallman,he shorttimeframe, ifnecessary.also inavery to dothisonhorsesyoungandold, Equestre Internationale (FEI).“He isknown body,sport’s governing theFédération deRham,Reining Director attheBettina toperformance itsbestability,” explains trainer,another andcoaxoutthathorse’s ability to himor rideanyhorse,trained by immediately ofhisincredible unique Equestrian Games. competitions alltheway upto theWorld and team inmostoftheimportant events winning goldmedalsatbothindividual discipline ofreining forthelasttwodecades, American Quarter HorseAmerican Association. officially recognized asa sportin1949 the by incheck.Reining wasfirst their cattle skillto requiredrode immense them keep West, who horsesandthecowboys when oftheAmerican ranching amongpioneers until 2000,butthesportdates backto cattle bravado andlaid-backswagger.” agility ismixed withahintofnostalgic techniquecombination oftremendous and an FEIspokesperson explains. “The to showmanship,” thetraditions ofcowboy spectacular, true breathtaking performances andhorsesdeliver riders and furious,where “Reining West istheWild –exciting, fast Cowboy history If the American Wild West Wild If theAmerican neededa wetalkaboutShawn,“When wethink Reining didn’tbecomeanFEIdiscipline has dominated theequestrian Flarida astrideahorse,thathe SoskilledisShawnWhisperer’. called‘TheHorsee’s been Gina Schumacherleadsthepodiumof2017 FEIWorld Reining Young Juilliart) RidersIndividualFinalCompetition (FEI/Richard

REINING FANS ONSOCIALMEDIA(1) Followers by country, top five 26% 13% 11% 4% 6% Germany Australia France USA UK HEADLINER :JEROME CHAMPAGNE

revved-up ranch environment uniqueto ranch environment revved-up this ina revel familiesand friends horse lovers, 73:27. thanmale,witharatio offans are female and 18to 24-year-olds More cent). (17per 25to cent), (22 per 34-year-olds cent) (19 per 35to by offans),followed cent 44-year-olds the 45to 54-year-old (31per demographic Thedisciplineismostpopular amongst UK. inthe cent and11per inGermany cent 13 per a quarter by offansare intheUS,followed markets. thatover Socialmediafigures show fans worldwide,across 15key international areFEI figures 290millionreining there yearonyear.that isgrowing According to & Juniors intheFrench cityofLyon. European ChampionshipsforYoung Riders Games™ inTryon andtheFEIReining USA, are theFEIWorldmajor events Equestrian This year,South AfricaandSweden. the is France, Great Britain,Italy, by followed stages themostFEIreining competitions World EquestrianGames™.Thenationthat the FEIWorld ChampionshipsandtheFEI championships, uptoand FEIcontinental CRIs (Concours deReining International) international competition,ranging from IN ASSOCIATION WITHFEI “In a relaxed, rural invitingatmosphere, The sportisfortunate to have afanbase of levels different several are now There 06.18 International :SportBusiness 45 45 46 HEADLINERIN ASSOCIATION : JEROME WITH CHAMPAGNE FEI

290 million fans across 15 key markets

REINING FANS ON SOCIAL MEDIA (2)

27%

73%

• Female • Male

by age group:

Gina Schumacher at the 2015 FEI European Reining Championship in Aachen (FEI/Richard Juilliart)

electrifying sport,” the FEI says of reining “Reining attracts a wide range of fans. 18 17%to 24-year-olds De Rham points out what a perfect sport ages and incomes, [plus] sports reining is for commercial sponsors. “They can be attracted to this sport for promotional fans not usually drawn to purposes because it is arena-based, so it’s equestrian events. This all gives great for advertising with banners on the 2519% to 34-year-olds walls which are highly visible,” she says. “The sponsors a widespread exposure.” media love it as it is easy for them to follow, photograph and televise. Most shows now BETTINA DE RHAM, REINING DIRECTOR, FEI go out on live streaming so the exposure is worldwide. In terms of demographics, the 35 to 44-year-olds 22% sport attracts a very wide range of ages and incomes. Also, it attracts sports fans not horse spinning like a top or galloping to a usually drawn to equestrian events as it is so dramatic sliding stop is just an amazing thing different and gives sponsors a widespread to see. I’ve heard people say it’s like Formula 4531% to 54-year-olds exposure, not just limited to fans of a single 1 meets ice skating!” equestrian discipline.” Talking of Formula 1, one of the more Another key factor of reining is its cowboy famous athletes involved in top-level reining image. “This attracts many people from is Gina-Maria Schumacher, daughter of the outside of riding,” de Rham adds. “Many Formula 1 legend Michael Schumacher. Now 55 10%to 64-year-olds sponsors enjoy using this for corporate 21, she has been practising the sport for entertainment.” many years, and has already won gold medals Reining is also a wonderful sport for at the FEI World Reining Championships spectators. Young Riders. She trains at the Schumacher De Rham explains how you don’t have to family ranch in Givrins, in Switzerland. 65 years1% and above be an expert to appreciate it. “If you want “It takes a lot of training and patience to understand the technical side, you need and trust to get a horse to where you can be to know what the penalties and credits are one with it inside the ring,” she says. “That’s awarded for but, at the end of the day, a always a challenge. But when it works, it’s

06.18 : SportBusiness International HEADLINERIN ASSOCIATION : JEROME CHAMPAGNE WITH FEI 47 47

The 2017 FEI European Reining Championship (FEI/Richard Juilliart) the best feeling ever.” Schumacher agrees that reining makes for a superb sport for both spectators and participants. “I think it’s great for anyone who enjoys horses and competitions,” she says. “The horses are very easy-going. People with hardly any training or riding skills can ride them. Watching [the sport], you understand it quite quickly. It’s fun because there are so many manoeuvres involved. Spectators really have fun watching and cheering.” De Rham agrees. She points out how easy it is for spectators to join in with the drama of live reining. “The audience can become involved with cheering, clapping and whistling to encourage the riders and show their appreciation. There is often music playing and the atmosphere can quickly become electric. “This kind of crowd participation is unique in the equestrian world. It is a wonderful thing for the fans to feel that they are part of the performance.” Z Dominik Reminder rides Dun It With A Splash to silver at the 2017 FEI European Reining Senior Individual Final in Givrins (FEI/Richard Juilliart)

06.18 : SportBusiness International 48 ULTIMATE SPORTS CITY : WELCOME

THE ULTIMATE SPORTS CITY | LONDON REGAINS TITLE The British capital has reclaimed its crown as the world’s Ultimate Sports City

Four-time Olympic gold medallist Mo Farah runs past Tower Bridge, one of the iconic sights of London, this year’s Ultimate Sports City (Justin Setterfield /Getty Images)

ondon has reclaimed its crown as the 2018, we refreshed the process slightly from In January 2018, based on the analysis as world’s Ultimate Sports City. The previous editions. In earlier years, a longlist well as input from our panel of high-profile award was once again handed out at of 150 cities from around the world was industry judges, the 500 were reduced to the SportAccord convention, which drawn up, based on sporting events staged a final shortlist of 30 cities which would Lthis year took place in Bangkok, . over an eight-year period, and then whittled compete for the title of Ultimate Sports The ceremony saw London take home not down to a final shortlist of 30 contenders. City 2018. This was also broken down into only the overall award, but also pick up the This year, we increased our scope shortlists of five in contention for the sub- titles for Best Legacy and Best Marketing and dramatically. The range of events included category awards. Branding. for eligibility was expanded, meaning 2018’s Held every two years since 2006, the longlist contained over 500 cities. Analysis internationally-recognised SportBusiness All sporting events held in a city were London’s victory is its third in the 12-year Ultimate Sports City Rankings and Awards given a weighting, based on their scale and history of the awards, having previously taken are the longest-established rankings of the prominence, with over 1,200 data points home the overall trophy in 2012 and 2014. Its world’s top sports host cities. considered and analysed to leave us with our triumph in 2018 is all the more impressive To decide the Ultimate Sports City of final contenders. given that the Olympic Games of 2012 no

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“No other city does world-class sport quite like London – proud to see our capital named the SportBusiness International Ultimate Sports City of 2018.” SADIQ KHAN, MAYOR OF LONDON

longer contribute to its score, as they fall bodies based in the city, and their outside the event window of 2014-2022. The importance afterglow of that hugely successful event, • Current venues and facilities, and however, did help secure the Best Legacy capabilities for major sports events award for London. • Transport and infrastructure Five continents were represented by the • Accommodation 30 finalists. European cities represented • Government support and major sports one third of the final 30, with numerous event strategy economic powerhouses in the region all • Legacy planning and impact hosting a variety of sporting events on a • Public interest in and attendance of events regular basis. returned to the top • Marketing and branding ten after missing out in the previous two For all categories, scores were allocated, editions. Though its Olympic Games in 2024 with 25 points available across each criteria. did not count toward the city’s score this The top-scoring city in each category receives year, there is no question that the bid buoyed 25 points, the second-highest 24, down to one the French capital and has led to a significant point for the 25th-placed city. Those between increase in event hosting activity. Iain Edmondson, former head of major events at London & 26 and 30 in a category received zero points. One of the stories of the 2018 edition Partners, collects the award Following this, three categories – has been the continued rise of Asia in the marketing and branding, legacy planning and rankings – the world’s largest continent put outside the final shortlist. The results event strategy – were ranked by our panel of up nine cities this year, as city authorities reflect of the country’s status as a strong judges, all of whom work within the event in countries from Qatar to Japan, from the all-rounder, with regular high-profile winter hosting space and have extensive knowledge UAE to China, continue to sink funds into sports events augmenting occasional major and experience of sporting events and the sports, whether as a show of soft power or global showpieces such as the 2015 Fifa destinations that hold them. This enables an attempt to announce their teams on the Women’s World Cup. a much clearer and deeper look into the global stage, as with Japan’s hosting of the Alongside previous winners London, New non-measurable criteria than a data-driven Rugby World Cup in 2019. Tokyo, which York and Melbourne were three first-time approach alone would allow. squeezed into the top ten, will host the final entrants in Abu Dhabi, Mexico City and next year. Prague. The UAE capital narrowly beat the Size categories For the first time, no African city other two in the race for the Best Newcomer Once again, we also handed out awards made the top 30. Previous years had seen award, and all three cities surely have exciting based on city population, to better reflect strong showings from South Africa in futures in event hosting. the aspirations of smaller cities that lack the particular, with , and budget to host the large-scale sporting events all appearing on earlier lists. Methodology of giants like London or New York. In 2016, Durban’s decision to pull out of hosting the The size and frequency of events hosted a fifth size category – extra-small city – was Commonwealth Games in 2022 did it no over the eight-year period from 2014 to 2022 introduced, but this has been dropped for favours, but that decision is also indicative of is the primary measurement for choosing 2018 due to a lack of qualifying cities. This a wider economic malaise in Africa’s richest the Ultimate Sports City, but several other year, awards were handed out to the best nation. The country is also still dealing criteria are involved. Cities were also small city (population under 1.3m), medium with the disastrous legacy of the Fifa World measured on: (between 1.3m and 3m), large (between 3m Cup in 2010 and is inevitably reluctant to • Number of federations and administrative and 8m) and extra-large (over 8m). Z involve itself anew in major sporting events. Morocco’s bid for the 2026 Fifa World Cup has at least demonstrated an appetite to show the world that Africa can compete on THE JUDGING PANEL: this scale, and may foreshadow a stronger showing next time around. Leanne Arnold director of strategy and communications, M-IS Canada tied the UK for the most Kelly Fairweather chief operating officer, International Tennis Federation representatives in the top 30, with three. Tanya Heimlich-Ng Yuen director, Burson-Marsteller Sport Calgary, Vancouver and Montreal all made Sean Parry senior consultant, The Sports Consultancy the shortlist, while Toronto and Edmonton Jon Tibbs chairman, JTA also performed very well and finished just

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ULTIMATE SPORTS CITY 2018 | LONDON

For the third time in the history of these rankings, London has been named the world’s Ultimate Sports City. From the NFL and NBA to Wimbledon and Euro 2020, the British capital’s event-hosting strategy, coupled with the public’s appetite for sport, has placed the city at the centre of the sporting world

The NFL’s London Games have become a much-loved staple of the city’s sporting calendar (Jamie McDonald/Getty Images)

s one of the most affluent cities In 2007, the National Football League for the first time. The 2017 IAAF World in the world, and the capital of brought the first of its regular-season Championships reinvigorated the city’s love the globe’s fifth-largest economy, fixtures to London, a tentative experiment for athletics. London has never been a desert for in globalisation that has since expanded to It is no surprise, then, to see London Ahigh-profile sporting events. four games played annually at three different reclaiming the title of SportBusiness’ From home-grown staples like Wimbledon venues across the city. Ultimate Sports City, four years on from its and the marathon to finals of global The National Basketball Association soon last win in 2014. showpieces such as the football and rugby followed, and has staged a competitive game “London is the sporting capital of the World Cups, London has provided a stage for in London every year since 2011. This year, world,” a spokesperson for London’s City the biggest sporting events throughout its announced it will Hall said in a statement to SportBusiness history. follow suit, with two games to be played at International. “One of the main reasons But the genesis of London as the sporting the former in 2019. global sports events choose to come to capital of the 21st century can be traced back Uefa Champions League finals were held London is because they know our world-class to July 6, 2005 – the day the city beat Paris to at Wembley in 2011 and 2013, while 2014 saw sports stadiums will be full of sports-mad, the rights to host the 2012 Olympic Games, the Tour de France pass through London. passionate Londoners. London sports fans by four votes. Since then, sporting events Twickenham staged its second Rugby World are highly knowledgeable and will turn out in have become part of the very fabric of the Cup final in 2015, the same year Formula their tens of thousands to watch every kind of city. E staged its season finale in Battersea Park sport on offer.

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“London’s all-round offering as a destination for sport made it a logical choice as the Ultimate Sports City”

KELLY FAIRWEATHER, COO, INTERNATIONAL TENNIS FEDERATION

ULTIMATE SPORTS CITY 2018 TOP 30 FINAL POSITIONS

Position Location

1 London XL

2 Melbourne L

3 New York XL

4 Auckland M

5 Glasgow S

6 Copenhagen M

7 Paris M

8 Los Angeles L

9 Calgary S

10 Tokyo XL

11 Manchester M

12 L Wimbledon’s Centre Court is one of the most iconic venues in global sport (Julian Finney/Getty Images) 13 L

14 Dubai M “Last year we hosted record crowds for the Ultimate Sports City award. the World Athletics and Para Athletics Sean Parry, senior consultant at The 15 Gold Coast S Championships and the NFL matches Sports Consultancy and another of the played in London sell out almost as soon judges, added: “London has consistently 16 Singapore L as they go on sale. I am sure that we will demonstrated all round excellence, 17 Montreal M see this happening again when we host the consolidating its reputation as a world- ICC Cricket World Cup and Major League leading host destination for global sports 18 Vancouver M Baseball next year, and seven matches at events.” 19 Doha M Wembley for the Euro 2020 championships.” The legacy award is of particular Upon the announcement of the award, at a significance for a city that has placed 20 Moscow XL ceremony at SportAccord in Bangkok in April, great stock in using the Olympic Games Sadiq Khan, the Mayor of London, tweeted: as a platform for development. “The 2012 21 Kuala Lumpur M “No other city does world-class sport quite Olympic and Paralympic Games were a huge 22 Abu Dhabi M like London – proud to see our capital named success for London, both on the track off the the SportBusiness International Ultimate track with the legacy it has left behind in East 23 Beijing XL Sports City of 2018.” London,” said City Hall. 24 Mexico City XL Our panel of independent industry judges “You only have to look at the new Queen Rio de were highly impressed with London’s Elizabeth Olympic Park and the surrounding 25 L development, with the city taking home a area to see the transformation that has Janeiro further two awards on the night: Best Legacy happened as part of the legacy story from 26 Sochi S and Best Marketing & Branding. 2012. “London’s all-round offering as a “We’re seeing world-class sport being 27 Hong Kong L destination for sport made it a logical played at the London Stadium, Copperbox 28 Prague S choice as the Ultimate Sports City,” said and Lee Valley velodrome, and this area of Kelly Fairweather, chief operating officer of east London is the fastest growing area of the 29 Baku M the International Tennis Federation and a capital with 110,000 additional jobs created member of the independent judging panel for since the Games.” Z 30 Budapest M

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BEST OF THE REST | THE AWARDS BY CATEGORY

The winners from a selection of our award categories

Glasgow has punched above its weight to attract world-class sport events

while at the same time showcasing a vibrant Economic Development (ATEED) invests in BEST SMALL CITY: sports-mad city. The legacy benefits of the major events. The intention of the strategy is GLASGOW, UNITED KINGDOM 2014 Commonwealth Games will continue for to make Auckland a global events destination Population of up to 1.3m generations to come and are to be applauded and to drive economic growth, both in the Glasgow has retained its title of the Best and admired. region and nationally, through hosting major Small City, following the success of the 2014 events. Commonwealth Games with a series of Since the Major Events Strategy was high-profile events, including the 2015 World BEST MEDIUM CITY: launched, Auckland has gained a reputation Gymnastics Championships, 2017 BWF World AUCKLAND, NEW ZEALAND as a world-class events city and capability Badminton Championships, 2018 European Population between 1.3m and 3m in the local events industry has grown Championship and 2018 European Indoor considerably. Auckland has developed a Athletic Championships. Auckland takes home the award for Best strong events portfolio with an experienced The city scored impressively across Medium City for the third straight edition. industry to support it. It also attracted the multiple categories, and made the top five New Zealand’s largest city scored highly in judges’ plaudits for its legacy and marketing in the Best Venues, Best Event Strategy, Best many categories, and impressed the judges strategies. Legacy and Best Marketing and Branding, as with its strong and transparent major events Auckland is a city with engagement at its well as receiving high scores from several of strategy in particular, as well as its successful core when it comes to sports events – whether our judges. policy of creating home-grown events. it is between the city and its stakeholders, Glasgow is an all-rounder when it comes Auckland’s Major Events Strategy was the city and participants or the city and its to hosting major sports events, choosing launched in 2011, and sets out the principles visitors, everyone is made to feel that they are those that fit carefully devised objectives by which Auckland Tourism, Events and at the heart of sport in Auckland.

06.18 : SportBusiness International Calgary Ultimate hosts Ultimate host city

Calgary has earned its international reputation as an ultimate host. Experience the passion of a city that lives and breathes sport.

Jeff Daniels, Executive Director phone 403.750.2389 visitcalgary.com [email protected] toll free 1.800.661.1678 /tourismcalgary 54 ULTIMATE SPORTS CITY : AWARDS

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BEST EXTRA LARGE CITY: NEW YORK Population above 8m

New York is the winner of the Extra-Large City award for the third time, following its successes in 2012 and 2014 – it only missed out on four in a row due to winning the overall award in 2016. Auckland, New Zealand was the winner of the best medium city The Ultimate Sports City judges were impressed by ’s events the centre of the city. Most are less than calendar, accessibility, diversity, public BEST LARGE CITY: a 15-minute walk from any city hotel, support and extra-curricular activities for MELBOURNE, AUSTRALIA supported by an integrated public transport visitors to the city. Population between 3m and 8m system of trams, trains and buses. A huge NYC & Company – the city’s official range of restaurants, hotels and other marketing, tourism and partnership Melbourne is the winner of the Best Large facilities are also in this precinct. This makes organisation – is responsible for attracting, City for the fourth edition in a row. it easy to stage events over multiple venues. creating and promoting sporting events As the SportBusiness Ultimate Sports City Melbourne boasts a major events strategy throughout New York’s five boroughs, and at 10 winner in 2016, as well as the Ultimate that many other cities have since used as facilitates the production of a diverse line-up Sports City in 2006, 2008 and 2010, and a best practice guide. The city has sports of high-profile professional and amateur the runner-up in 2012 and 2014, Melbourne venues that are not only the best in the events. Working with its partnerships, remains the best sports city in the southern world, but are also at the heart of the city, events and in-house creative teams, NYC & hemisphere. fostering a greater sense of engagement with Company has created customised marketing In addition to strong financial support the general public and fans when events strategies and activation events that have from both state and local governments, take place. Supportive governance at local, delivered results for events and event Melbourne offers event owners a winning regional and national level means Melbourne sponsors. At the same time, events have combination of world-class infrastructure, a offers an extremely safe pair of hands to excited local sports fans, generated revenue collaborative network of event stakeholders event organisers in a stunning setting. for the region and garnered positive exposure to partner with and deliver exceptional “I am proud that Visit Victoria was for New York City. events, and a passionate and enthusiastic instrumental in Melbourne being honoured When it comes to its major events strategy, sporting public. as the Best Large City for major sporting New York really is a city that never sleeps, Almost all Melbourne’s major sporting events at the 2018 Ultimate Sport City balancing a bursting portfolio of high-quality and cultural event venues are located in Awards, as well as being recognised for Best annual events against a wide variety of Major Event Strategy and Best Venues,” Peter one-off events of national and international Bingeman, Visit Victoria chief executive, told significance. SportBusiness International. The Big Apple scored highly in many “It shows that our team is successfully categories, winning Best Public Support/ building Victoria’s position as a strategic Tourism in recognition of its high level of leader in event acquisition, marketing and attendance at sports events, such as the US delivery. We have added more than 50 events Open tennis championships, and reflecting to the major events calendar of Melbourne the wide range of extra-curricular activities and Victoria since our inception, from the available for visitors to sports events in the men’s and women’s final of the ICC World city. Twenty20 at the MCG to a two-match series Those factors combined with a strong city featuring the NBA’s biggest stars. Melbourne brand and imaginative marketing prowess is a global mecca for sport and Australia’s make New York a worthy winner of the Best sporting capital.” Extra Large City. Z

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A further 95 hotels with over 29,000 hotel rooms are in the pipeline.

BEST EVENT STRATEGY: MELBOURNE

Melbourne regains an accolade it picked up in 2012 and 2014. The city’s track record of attracting and delivering world-class events is based on a clear strategy that puts long-term Paris took home the Best Transportation award relationship building with event owners at its heart. hotel, in particular the circular helipad, Establishing Visit Victoria further BEST TRANSPORTATION: has also produced some memorable sports developed Melbourne’s offering for event PARIS advertising images, including the Roger owners. Visit Victoria brings together the Federer vs Andre Agassi tennis match, functions of Tourism Victoria, the Victorian Paris is one of the busiest cities in the world Rory McIlroy’s bunker shot and a Red Bull Major Events Company and the Melbourne for air travel and its airports received over Formula 1 car producing doughnuts. The Convention Bureau to form a single 100m airline passengers in 2017. hotel is the pinnacle of the many luxury organisation dedicated to growing the state’s It has a widely-used and highly-rated hotels which feature in the Emirate. visitor economy through tourism, marketing metro service and the network is being Dubai also continues to expand its hotel and event acquisition. The organisation expanded with the construction of the Grand stock with a massive building programme. provides a single point of contact for rights- Paris Express metro, consisting of four new automatic metro lines with 68 stations and 120 miles of rail. The new lines will connect the suburbs of Paris without going through the city centre and link with the main central stations and transport network. On completion, the new lines are forecast to carry two million passengers daily. Paris is also extending the tram line network that surrounds the city and expanding its rapid bus services in dedicated lanes.

BEST ACCOMMODATION: DUBAI

Dubai is one of the world’s largest hotel markets with over 100,000 hotel rooms and hotel flats at all levels of quality. The city is home to the iconic, sail- shaped Burj Al Arab Jumeirah which regularly features in lists of the top hotels in the world and on Dubai marketing. The The impact of the 2012 Olympics lives on as London took home Best Legacy (Nick Spalding)

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holders for the full event lifecycle. Visit Victoria supported the delivery of 28 major events and across its first 18 months as a business had added 57 major events to its calendar from 2017 until 2025 through contracting new major events or renewing agreements with existing ones. The major events calendar has been developed to provide year-round event activity that amplifies Melbourne’s core brand attributes and delivers positive branding, economic, and tourism outcomes.

Mass participation events played a part in Abu Dhabi being named best newcomer (Nick Spalding)

London hosted the World Para Athletics need to unify attributes which apply to all Championships and IAAF World Athletics areas in the strategic promotion of London. BEST LEGACY: Championships in 2017, the first time both This holistic brand positioning aims to LONDON events have been held in the same city. capture the essence of London and resonate London created a Summer of World Athletics within business, major event, students and London continues to build on and expand the which was used as a platform to engage tourist audiences. legacy of the 2012 Olympic and Paralympic community groups in physical activity. This Games, not only with the commitment included the Inspiration Programme, a series to hosting major international sporting of 11 projects delivered to harness the impact BEST NEWCOMER: events that engage the wider community, on grassroots athletics. ABU DHABI but via new initiatives aimed at driving Abu Dhabi has made no secret of its objective active lifestyles and using sport to aid social to become an international sport capital. cohesion. BEST MARKETING AND As well as its huge investment in football The Ultimate Sports City judges were BRANDING: worldwide through its Abu Dhabi United impressed by London’s grassroots legacy LONDON Group, the Emirate has demonstrated an initiatives, including the new Community ambitious and holistic event-hosting strategy Sport Investment Programme ‘Sport Unites’. London has won Best Marketing and at home, as it bids to become the Middle Sport Unites aims to make London the Branding for the third successive edition. East’s preeminent sporting destination. most active and socially-integrated city in London & Partners, the Mayor of London’s Its nascent strategy has delivered a the world. There are three key themes that official promotional agency, has developed premium event calendar across a range of underpin Sport Unites: a wide range of marketing initiatives which sports in recent years. Annual events include • Sport for Social Integration showcase the constantly evolving London the Formula One Grand Prix at the state- • Active Londoners offering – such as the development of of-the-art Yas Marina Complex, the World • Workforce and Capacity Building influencer and outreach marketing, which Tennis Championship, ITU World Triathlon Similarly, London Sport was established has become a core channel within the series and the Abu Dhabi Golf Championship. in 2015 with the aim to help one million London digital strategy over the past four The UAE’s capital city will host the Fifa people get more active by 2020 and make the years. London increases the reach and cost Club World Cup for a second consecutive capital ‘the most physically active city in the effectiveness of its marketing activities by year in 2018, to be followed by the AFC Asian world’. In each of the two years since its set targeting specific market segments and Cup in 2019. Other major events lined up up, London Sport has attracted and invested increasing the use of digital and social media. include the 2019 Special Olympic World over £5.6m per year to help it achieve its In 2011, LONDON® was established as a Games and the 2020 Fina Short-Course ambitions with over 50 per cent invested in single iconic visual style for city. Winning Swimming World Championships. community-level projects. This is already the 2012 Olympic and Paralympic Games With its combination of quality venues, bearing fruit: in the two years since launch, provided a unique window of opportunity hotels and transport connections to the rest surveys indicate that 216,000 Londoners to create this master brand for London. The of the world, Abu Dhabi appears set to be a The impact of the 2012 Olympics lives on as London took home Best Legacy (Nick Spalding) have higher levels of physical activity. single brand model and visual icon would major sports destination. Z

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ONES TO WATCH | THE ULTIMATE SPORTS CITIES OF THE FUTURE

Adam Nelson takes a look at four cities with the potential to make a big splash on future editions of Ultimate Sports City

The 2017 Fina World Championships demonstrated Budapest’s event-hosting capabilities (Clive Rose/Getty Images)

he criteria that define a world- future editions. Mexico City debuted on the vanishingly small compared with the might class sports city are constantly list in 2018 while Budapest, buoyed by its of Paris and Los Angeles. Although ultimately shifting, as economic and social bid for the 2024 Olympic Games, made a defeated by public sentiment before IOC conditions change and the comeback after six years in the wilderness, judges even landed in the city, the bid was Tdemands of governments, rights-holders and having last featured in 2012. Lima and Riyadh, constructed to ensure a legacy of its own, international federations evolve. Here our meanwhile, are preparing for big futures in with several high-end sporting events focus turns to the future, and the cities we different ways, and can both be expected to being secured by the city as it sought to expect to make their mark over the next two make major plays in event hosting over the demonstrate its Olympic potential and show to four years, based on their coming event coming years. its desire to become a major sporting hub. strategies and strong performances in the 2017 brought world championships in judo 2018 rankings. and swimming; the coming years will see the Two of the destinations featured here BUDAPEST, HUNGARY Hungarian capital host the global showpieces can be found on this year’s shortlist of 30 – While Budapest’s ambitions to host the for table tennis and wrestling as well as the though they are yet to trouble the top-end Olympic Games in 2024 were genuine, European Volleyball Championships and – while two can be expected to compete in there was also a sense that its chances were fixtures in Uefa’s pan-continental Euro 2020.

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The country’s recently re-elected prime minister, Viktor Orbán, is a known football fanatic and has already sunk significant sums of money into developing the game in Hungary, with further spending planned. Budapest’s investment into sport cannot be expected to draw to a close with the end of its Olympic bid – underlining its ambitions, the city will serve as the European Capital of Sport for 2019.

LIMA, PERU Lima missed out on the top 30 in this year’s Ultimate Sports City rankings, but the Peruvian capital’s emerging event strategy suggests it may not be far from making future lists. Having warmed up with a series of South American championships – notably in athletics, badminton and gymnastics – and a bid for the 2015 Pan American Games, Lima will finally host the latter event in 2019. Set to be the biggest edition to date, the event The Rally brings thousands to Lima every year (Shaun Botterill/Getty Images) is being seen by many as a dry-run for an eventual Olympics bid – particularly after the city welcomed the Olympic community pipped to the best newcomer award by Abu at large in September of 2017 for the 131st Dhabi. Its event strategy over the judging IOC Session. Iván Dibós, a Peruvian member window – 2014-2022 – has been strong and, of the IOC, described the awarding of the with the country’s joint bid for the 2026 Pan Am Games as “round zero”, adding that Fifa World Cup alongside the United States the country “needs to fight for something and Canada a favourite against Morocco, bigger”. While that might be a distant its place in the rankings looks set to be possibility in an age where megacities cemented in the short-term. While financial dominate the Olympic landscape, the and administrative problems have dogged Peruvian Olympic Committee, which guides other Mexican cities – Guadalajara’s late the event strategy for the country, will be pull-out from hosting the 2017 Fina World hoping for a Budapest-style boost from Championships a recent example – the any potential bid. Attempts to host world capital has gone from strength to strength Saudi Arabia is investing heavily into its sports infrastructure championship-level events can be expected over the last decade. Major events in a (Kaz Photography/Getty Images) over the next few years. diverse range of sports including golf, archery, ice hockey and basketball, as well open the doors of Qiddiya, an enormous new as a return to the Formula One calendar in sports and entertainment hub 40km west MEXICO CITY, MEXICO 2015, have confirmed its reputation as one of its capital, Riyadh. Described by Saudi Mexico City made its debut in the Ultimate of the strongest all-rounder destinations in officials as “two-and-a-half times the size of Sports City top 30 this year and was narrowly North America. Should the United 2026 bid Disneyland” – measuring 334 sq. km – the be successful, Mexico City will become the complex will contain a range of sporting first-ever three-time host of Fifa World Cup facilities, including indoor ski slopes, a multi- fixtures. function arena, and a race track which is hotly tipped to host a Formula One race. Qiddiya is a major milestone for the RIYADH, SAUDI ARABIA Vision 2030 initiative, designed to reduce While its neighbours in Dubai, Abu Dhabi and the kingdom’s reliance on oil to drive its Qatar have spent the last decade and more economy. Having witnessed first-hand building their profiles in the sporting world, the soft power generated by sport for its lavishing billions of dollars on overseas neighbours, Saudi Arabia looks set to make investments and a successful Fifa World Cup a major play in the event-hosting world, and bid, Saudi Arabia has been playing the long Riyadh can be expected to make its debut on game. The first phase of that game will be the Ultimate Sports City rankings in the near completed in 2022, when the country will future. Z

06.18 : SportBusiness International

58,59_USC_One to watch.indd 59 23/05/2018 15:33 60 ULTIMATE SPORTS CITY : JUDGES ROUNDTABLE

ROUNDTABLE | WHAT IS THE FUTURE OF MEGA EVENTS? Three of the Ultimate Sports City judges – Leanne Arnold, Sean Parry and Tanya Heimlich-Ng Yuen – discuss the future of large-scale events hosting and the major trends that will dictate the direction of the industry

Uefa’s Euro 2020 will be the first tournament of its kind to share event hosting duties across the continent (Dan Istitene/Getty Images)

The past few years have seen a debate Tanya Heimlich-Ng Yuen: As major events Is money now the main factor in about the future of large-scale sporting have evolved over the years, their needs determining where events go? events and their continued viability fit more naturally with major cities – and LA: If you look at what happened with the outside all but a tiny elite of global cities. likewise smaller events with smaller cities. bids for the 2024 Olympic Games, with With London reclaiming its crown as the This is simply a fact and while there is , Boston, and Budapest all world’s Ultimate Sports City, following nothing wrong with this, it does show that pulling out, they’re all significantly smaller New York City in 2016, is this a further there is a flaw in the traditional hosting than LA and Paris. With the economic sign that only megacities can host mega model. circumstances that the world has faced in the events? Sean Parry: If considered at a city level, the last few years, for smaller cities the cost is Leanne Arnold: The trend is definitely list of potential mega-event hosts around proportionally a lot more than it would be for focusing toward megacities. For smaller cities the world is naturally limited. Either the a city with eight million people, for example. to be successful they have to put on more city must already possess all the required In cities like Rome, where they can’t deliver events. Budapest is a really good example – infrastructure to host the event or have their own civic amenities, it’s hard to justify they’re looking at hosting more events, such an appetite, backed by public support, to why you’d spend a couple of billion euros on as the Fina World Championships, they’ve invest significant sums of money – often hosting an event. announced their intention to host the IAAF public – in new facilities. It must also SP: For rights-holders, in many cases, major World Championships. If the smaller cities have the operational capacity and physical event portfolios generate a large proportion want to host major sporting events, they’ve infrastructure to cope with an influx of of operating revenues, either directly got to do what the larger ones do which is hundreds of thousands of additional visitors through event-specific income, or indirectly invest in hosting smaller events. In other during a short period. While rights-holders by bolstering the value proposition for words, they have to earn their stripes, get can take cost and risk-sharing measures, broadcasters, sponsors and other partners. their skin in the game and all the rest of it. these simple facts will remain. Therefore, the overall financial viability of

06.18 : SportBusiness International

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event portfolios will always be a key factor their relationship with a new host, they could in deciding where events should be hosted. run a series of impact creation sessions. A However, sophisticated rights-holders are focus on enhancing city benefits also allows increasingly taking a balanced approach to rights-holders to ensure that the operational how they use major events, both as an overall and capital costs required to host their event portfolio, but also over the longer-term are proportionate to the value the event cycles of individual events. Major events can can bring and that rights and benefits are be used to access new markets, attract new optimally allocated. A good investment is a audiences to the sport, bolster participation, good investment, for big cities or small. create unforgettable content and build LA: It’s a difficult question to answer. On long-term stakeholder buy-in – outcomes the one hand, a rights-holder like the IOC which are in many ways as important as the must continue to attract younger people and financial for the long-term development of grassroots participation etc. On the other rights-holders and sports. The success of UCI Road World Championships, Doha (Bryn Lennon/Getty Images) they’ve got to be able to still attract those London sits at the intersection of all these people who are going to attend the Olympics goals – they host events which the public – the average age of an Olympic spectator is engage with, are financially successful and On the other side, what can rights-holders 52. So it’s a difficult balance and a difficult create tangible wider impacts for the local do to work better with smaller cities to question to answer. population. bring their showpiece events to the widest possible audience? What major trends show the future of the How can smaller cities ensure that they’re THN: With rights-holders facing decreased ultimate sports city? How are the criteria still able to host major sporting events? interest in hosting from cities of all sizes, the rights-holders look for in host cities What kinds of strategies can they put in they must do all they can to ensure their changing? place to maximise the limited resources events remain relevant and attractive, which SP: Major event bodies across sport, culture, they have? includes adapting to new hosting models. For business and heritage have historically LA: I think they just need to have the smaller cities to host major events, a good worked in silos, missing out on the ambition and follow-through. Budapest solution can be co-hosting with other cities or opportunity to create a cohesive approach to hosted the Fina World Championships last regional hosting. The idea of regional hosting deliver wider city- and national-level goals year and showed that it was such a shame is one that is gaining ground – why can’t through events. We now see event agencies they missed out on 2024, because Budapest Wales host an Olympic Games? Queensland, that we work with, such as Event Flanders, would have hosted a fantastic Olympic Australia or Alberta, Canada, for that matter? starting to take a more holistic view of ‘major Games. If you take that as an example, When an event is spread out it has greater events’ in general. Major events should be what people need to do is experience these potential to involve more people and reduces simply viewed as a platform that a city can smaller cities. Another example is Doha, the financial risk put on a single host city. use to deliver almost any outcome they like. which hosted the cycling Road World By moving away from the rigid traditional Developing a joined-up approach which Championships, they hosted a Fina event hosting models, rights-holders can connects wider public-sector strategy with the year before, so they’ve invested in it and increase interest in their events and open the selection and delivery of all major events people have experienced large-scale events themselves and their events up to many new – across sport, culture, business et cetera – and international events there. I think that’s opportunities. creates consistency in approach, efficiency what they have to do. SP: Rights-holders can do two things: first, in delivery and amplifies outcomes to the SP: The cities that are the most attractive they should closely evaluate the value that benefit of the general public. event hosts for rights-holders have two things their events can provide to cities across the LA: I think increasingly it’s about the in common: they create a value proposition spectrum of economic, social, media and experience, the human experience. which identifies how they will deliver on environmental impacts. Second, they should Youngsters are becoming more attracted to a wide range of rights-holder objectives, help their hosts to maximise these outcomes online experiences and artificial intelligence. and – as importantly – present a clear vision in the way the event is calibrated and But I think that increasingly, just because of the how the delivery of the event will delivered in market. A genuine commitment you haven’t got a ticket doesn’t mean that be integrated into the wider strategies and to partner with a host city will increase the you can’t be part of this great big festival, plans of the city. Smaller cities offer rights- return on investment and objectives for doesn’t mean you can’t be proud that your holders a different set of opportunities hosts, creating a positive legacy for the event city and your country are hosting these types when compared to mega-cities, in particular and opening a wider pool of potential future of events. I think it’s becoming more and the opportunity to be the headline act and host cities. more about the experience, whether that’s the high levels of commitment to deliver To achieve these goals, rights-holders online or in reality. That’s becoming more that accompany this status. If they can need not only to accurately communicate compelling for people. Everybody can get communicate these benefits in a compelling how their event can be used as a platform involved, it’s not an elitist event. Formula manner, as well as demonstrate a clear to achieve a wide range of public sector One for example has the most expensive hosting strategy and legacy, smaller cities can objectives, but also to create tools and ticket on the circuit, but they’re creating be just as attractive as larger ones for major approaches which allow them to maximise fanzones and festivals in the cities they visit, event rights-holders. these outcomes. For example, at the outset of to ensure everyone can be involved. Z

06.18 : SportBusiness International

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LALIGA’S DIGITAL DIMENSION

How the league which is home to some of the biggest clubs in world football is looking to eSports to grow its brand at home and abroad.

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ubido Fano may not score goals for Barcelona, boss the Real Madrid midfield or make goal-saving tackles for Valencia, but right now Rhe – and others like him – are an important part of LaLiga’s brand development and fan engagement plans. Fano – better known as LosYorugas92 – is a professional who plays for Cadiz football club’s esports team and who, in May, became the Mixed Platform Champion at the McDonalds Virtual LaLiga eSports FIFA 18 tournament. He won the final – a two-legged contest with one played on X-Box and the other on PlayStation 4 – to earn the honorary title of Spain’s top FIFA 18 player and the right to a place in the EA Sports FIFA 18 Global series play-offs in Amsterdam. The final of the McDonald’s Virtual LaLiga eSports competition marked the climax of two months of often frenetic action and the conclusion of the first phase of LaLiga’s debut as an esports competition promoter. Challenge is a game of strategy based on In terms of scale it’s a party which nobody Panini card trading, started with qualifying seems to want to miss and that’s reflected in Engagement rounds in March. the migration of mainstream sports sponsor Its impact can be gauged by the level of Both competitions have tapped into brands, including Red Bull and Coca Cola, engagement across the gaming community the growing desire of brands to access into the esports environment. in Spain and the 800 million minutes of Millennials on what is, effectively, their It’s often been said that while previous action viewed across the tournament on home turf – the digital environment. And generations learned their football by kicking Twitch. The final alone attracted 5,000 while the upper echelons of some sports a ball against a wall and playing park games, viewers at peak with a total of 700,000 governing bodies continue to agonise kids today have a wider range of inputs minutes viewed while the Facebook page over the relationship between esports and and influences which are likely to shape generated over 25,000 engagements. traditional sports, LaLiga has been quick to their loves and their spending habits for a And it is that level of digital engagement make the connection and use its own brand lifetime. which has driven the project, run with to give credibility and momentum to new That helps explain the current gold rush Spain’s professional Videogame League, LVP, esports events while creating new platforms and with MacDonald’s, Hyundai, Orange, El itself a partner of Mediapro. which add value for established and new Corte Inglés and even insurers Allianz on Launched under the ‘It’s not football, it’s sponsors. the sponsorship roster for the Virtual LaLiga LaLiga banner,’ LaLiga eSports was born A Financial Times report in late 2017 competition and Santander, Danone and out of the league’s desire to broaden its provided a perspective which tends to Panini backing the Adrenalyn Challenge, it international appeal, particularly among validate LaLiga’s rationale. Of the $100 appears that LaLiga’s new venture puts them Millennials for whom esports and digital billion generated by the video games in the right place at exactly the right time. connectivity are a central part of life. industry (in 2017) $693 was from esports According to Alfredo Bermejo who leads McDonalds Virtual LaLiga eSports was the while 11.1 billion video streams of esports digital strategy at LaLiga, the move into first of two competitions to be launched this competitions were watched in China alone esports is entirely logical and natural. year. The second, the Santander Adrenalyn and another 2.7 billion in North America. “Today digital is the key resource for

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building a broader audience and to take us While the first LaLiga eSports launch of LaLiga eSport was not something beyond Spanish speaking markets,” he says. competitions have been aimed at the carried out on a whim or fancy. Nor was it “It is effectively giving us engagement Spanish market, that won’t always be the developed simply to take from the gaming with different groups including those that case. community but to contribute to it through may not be consuming our core product “We started here but the focus will be the league’s experience of the international which is 90 minutes of football. Digital international,” says Alfredo Bermejo. We sports industry, its commitment to technical content helps us to engage with potential have representatives in different part of innovations and its sheer enthusiasm for the fans in many different countries and people the world and know that we have to engage new project. of different ages. It is really all about in different ways in different markets, but It was devised to address a series of creating the right experience for them.” esports are popular everywhere. We want specific needs and based on an in-depth And of course, FIFA 18 provided the ideal to go beyond the Spanish speaking markets market situation and landscape analysis and launch platform. and into regions such as south east Asia a clear, phased roll-out plan – starting in “It is the most played sports game in where gaming is huge and fans will come and Spain before targeting overseas markets. the world and has a huge footprint,” says watch.” LaLiga described the project as ‘ambitious Bermejo. Bermejo is well aware of the need to without being invasive’ and its decision to “The point is that while we are esports we get initial engagement right to ensure the partner with the LVP is a clear indication always want to relate back to football, so this snowball effect which can be the difference of their desire to work with and learn form was perfect.” between success and a real triumph. experts in the field. LVP organised its first A number of LaLiga clubs have already “Players want to share their experiences of rebroadcast tournament back in 2011 and established professional esports teams. playing and will create micro-communities is now the biggest esports organisation in These include Valencia, which was first off built around the competitions,” he said. Spain and runs the Orange Superliga at the blocks, and Barcelona where defender “That’s where you find the most relevant Gamergy as well as two platforms for online Gerard Pique has been instrumental in the and important opinion formers and it’s competitions between fans; ArenaGG and esport development. through these areas that the stories around Playstation League. Speaking to the national the competitions are brought to life.” daily newspaper El Pais, co-founder Sergi Pyramid While there may still be those in the Mesonero summed up the boom in gaming But, says Alfredo Bermejo, LaLiga is not sport sector who remain somewhat cynical in Spain in recent years. In the past five trying to replicate what the clubs are doing. about the links between physical sport and years, the popularity of the sport has soared. “We wanted to learn about the sector and esports, it will come as no surprise that the “There were 400 people coming to watch the how things are done and what works rather than automatically get involved in a league for pro club teams. This is about a pyramid with a broad base which gives every fan a chance to play in competitions. That said, a lot of our teams are interested in exploring the possibilities further, so we will take the right, solid steps and look to get the teams involved in the best way. The commercial impact of the move into esports has the potential to be massive. “When we think about measuring success we have to think in terms of looking for the biggest audience possible and really engaging with them. “Commercially there are advertising opportunities across the various platforms and the opportunity to increase the value of sponsorship deals for all parties through the reach and level of engagement. There is also data from registrations which provides valuable leads for us,” he said.

06.18 : SportBusiness International

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first national finals in 2011. At the last one there were more than 40,000,” he says. THE COMPETITONS AT A GLANCE Fertile territory Aitor Álvarez, who manages LaLiga project for LVP, sees Spain as fertile territory for McDonalds Virtual LaLiga eSports FIFA 18 esports. “According to some studies, it is estimated l  Officially part of the EA SPORTS FIFA 18 Global Series on the Road to the FIFA that there are 5 million video game eWorld Cup 2018, the goal is to transform this ambitious tournament into the consumers in Spain, including all platforms hallmark competition in Spain. and mobile devices, he explains. “At LVP we’ve been working for l  The competition selected LaLiga’s Spanish representatives for the EA SPORTS FIFA years along with the clubs so that 18 Global Series Playoffs , leading to the FIFA eWorld Cup 2018. The Playoffs are the professionalisation can be a reality. gateway to the FIFA eWorld Cup, the tournament where the EA Sports FIFA world Nowadays, in our four professional competitions (League of Legends, Clash champion will be crowned Royale, CS:GO and Call of Duty) we have 17 clubs and about 300 professional players l The competition, for X-Box and PlayStation, comprised an online qualification stage with a contract and guaranteed minimum and an in-person final stage. The first phase was open to all gamers over the age of wage in agreement with Spanish labour 16 and will be played entirely online on ArenaGG, the LVP gaming platform. Thirty- regulations. This includes salaries that can two players qualified for the second phase 16 from Xbox and 16 from the PlayStation go from €800 per month up to the €8,000 categories. per month that the most prominent players

can earn. In Spain, esports are currently l Phase two was played in person at the LVP venue in Barcelona. Sixteen players per turning-over about 20 million euros.” platform competed each week in straight knockout rounds with the winner of each “At the McDonald’s Virtual LaLiga going through to the finals. eSports, LaLiga and LVP were partners. LVP’s function was designing, planning Santander Adrenalyn Challenge by LaLiga eSports and executing the competition, both in the online and the on-stage phases, which were played live by Spain’s 32 top players. Besides l Adrenalyn XL Online, which is based on players’ ability to employ a winning strategy, that, LVP took care of the live broadcast is a LaLiga game that was born seven years ago in a physical trading card format, in and part of the communication strategy,” tandem with Panini. In January, LaLiga and Panini launched Adrenalyn XL Evolution, a he says. new game aimed at a young audience of football lovers, with a wealth of experience And he concludes that the debut in eSports in a trading-card format. competition was a great success. “The online stage participation was l Since Adrenalyn XL Online’s release, it has amassed over a million downloads spectacular, exceeding our most optimistic across its PC and mobile app versions. The second LaLiga eSports project is a predictions. Over 15,000 players took part clear demonstration of LaLiga’s growing commitment to technological innovation, in it. The finals, broadcast on LaLiga’s through immersing itself in the digital world and tailoring it to the beautiful game. Facebook Live and Twitch, had a reach of over 2 million viewers, and more than l The first of eight online tournaments which make up the Adrenalyn Challenge were 600,000 views. In total, the last show held in March to determine participants for the final stage. The remaining eight spots gathered more than 700,000 watched minutes and a peak of 5,000 viewers.” in the grand final will be filled by those who come out on top of tournaments at “The experience has been great. It was Gamergy 2018, the biggest event for video-game aficionados. very easy working together and that allows us to be optimistic as we look for new l The Santander Adrenalyn Challenge by LaLiga eSports grand final is scheduled to formulas which allow us to keep developing take place in Madrid this month (June) kick off with the round of 16. this eSports FIFA project in Spain and even on an international level. Z

06.18 : SportBusiness International

62-65_LaLiga_Sponsored.indd 65 25/05/2018 10:09 66 COMMENT : RICHARD CLARKE

MATCHROOM’S DAZN DEAL AND IFL TV’S IRREVERENT STYLE REANIMATE THE NOBLE ART

Richard Clarke looks at the $1bn deal that sent shockwaves through boxing, and the sport’s growing presence on YouTube

Someone like you, with access to all swearing. It’s not politically correct or even cameras into the inner sanctum, neither would this extra money, can only mean you that well-produced, but it is utterly compelling they expect their fans to digest hour-long are going to be an even bigger prick, for boxing fans. headshot interviews laced with swear words right?” Effectively, we are seeing old friends banter. and suffering from tinny sound. “Boxing promoter Eddie Hearn creased up These authentic, funny and informative But then boxing has often had to sell itself laughing at the question, but then he is used qualities are crucial in creating appealing on an event-by-event basis in ways that clubs, to such friendly barbs from the interviewers content these days. leagues and tournaments do not. Perhaps this at iFL TV. For example, after regaining his composure is why pay-per-view has worked in boxing but There has been a revolution going on in the after the initial barb (which came after Hearn not in football. You are simply more likely to UK’s boxing media over the past few years and had described himself as a “borderline prick” watch when it is all on the line. this interview in mid-May was an illustration. on a previous interview), the promoter effed Of course, the subscription model of DAZN Hearn was discussing the eight-year, and jeffed through an explanation of the sets out to damage the concept of PPV and $1bn (€0.849m) deal his Matchroom Sport DAZN deal. He described it as “12 bumper the relatively short-term nature of boxing’s organisation had just inked with the Perform shows, four orgasmic” and revealed that rights deals have allowed them to gatecrash agency. Perform’s OTT platform, DAZN, conversations had started almost a year ago. the party. US sport should certainly view it would launch in the US with 16 boxing shows as a statement of intent. While DAZN had in addition to another 16 to 20 in the UK. been developing nicely before announcing All Hearn needs now is the boxers. their Matchroom deal, they will benefit from Matchroom have established a New York-base “It’s not politically correct Perform’s recent acquisition of ESPN veteran in recent months and have started promoting John Skipper. high-profile US world champions like Danny or even that well-produced, This is also an attack on US boxing, which Jacobs. But to fill those bills they will need has been overtaken by Eastern European more and Hearn used his press conference to but it is utterly compelling fighters and now, dare I say, the Brits. appeal to fighters of a similar calibre, declaring for boxing fans.” In December 2016, Britain had 17 world it “open season” in the US. He broadcast that champions, more than any other country. the deal meant his budget would be more than Froch-Groves, Joshua-Klitschko and Joshua- HBO and Showtime, US boxing’s traditional Parker have all sold out 80,000 stadiums in TV paymasters, combined. He discussed DAZN’s strategy in launching the UK in recent years, something no fighter is He has a little time until the launch of the in the US, saying they were “looking to bid for doing in the US. channel in September but his British stable all the major sports when those deals expire Eddie Hearn taking control of Matchroom is already strong. The prize asset, Anthony but boxing was a good place to start”. from his father Barry has fired up the sport Joshua, was not specifically committed in the And he outlined all the details surrounding once more and social/digital media has been deal, despite huge interest in the US, and there Joshua’s proposed unification with Deontay a crucial tool. It has pulled along veteran is a suggestion that Hearn will use this new Wilder, which is expected to be one of the promoters such as Frank Warren, who is also deal to re-sign the high-profile heavyweight. richest fights in history. displaying a new sense of openness on iFL TV All this information came from the press It was the inside track on everything. et al. conference held to announce the deal. And this is where channels like iFL TV, The circumstances are quite specific But a few days later Hearn was sitting in FightHype and Behind the Gloves differ from to boxing. But the ‘noble art’, which has his office talking to iFL TV about the same ArsenalFanTV. The latter reacts to news been pronounced near-dead on numerous subject – but using entirely different words whereas these can make it. occasions in the past, has been revived by and revealing much more. All these channels have been slogging some of the most modern methods in digital The YouTube channel is one of many that their way to gyms up and down the country and social media. Z have emerged to cover boxing in recent years. for years so now they have the audience to Similar in look, feel and rawness to football justify going Stateside for fights. iFL TV has Richard Clarke is a digital and social media fan channels like ArsenalFanTV, they aspire 300,000 subscribers, enough to secure some consultant. He holds the distinction of having run to be everywhere – in the gym in preparation sponsorship revenue, and the video with the social media accounts at major football clubs for a fight, in the media scrum at the press Hearn received 150,000 views in a day. in the Premier League and MLS, having worked conference and in the dressing room after the No major football club would entertain for EPL club Arsenal and MLS club the Colorado bout. This is blood, sweat, tears and f*****g citizen journalists armed with handheld Rapids. @MrRichardClarke

06.18 : SportBusiness International 946427982, Scott Barbour 946058552, Michael Dodge

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