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CHRIS ARGYLE-ROBINSON | CHRISTIAN KNAEBEL |

THE MAGAZINE OF MARKET INTELLIGENCE ISSUE 15 | AUTUMN 2017 MLB IN

OTT AND THE CHANGING FACE OF SPORTS CONSUMPTION

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“‘OTT is killing broadcast’. That’s a misnomer”

Disruption. That’s a misnomer. It’s fast become the ‘mot du jour’ in the sports OTT is value adding… at least at this moment in media industry. its lifecycle. Almost every deal done with a digital No longer pejorative in meaning, it’s now the platform has been in partnership with a major -to description for the change in the broadcast broadcaster – whether it’s streaming network- market brought by -the-top (OTT) televised or complementary second-screen viewing. programming. It’s been two decades since Clayton Christensen, The PGA of America talked a good game when, the renowned Harvard Business School professor, having ended a deal in the UK with Sky ahead of the defined the concept of ‘disruptive innovation’, a 2017 US PGA Championship, it said it was heading Jonathan Rest principle whereby a dominant product or service to where the youth reside: to and . Editor provider could have its leadership position And it did. But it also signed a live TV deal with Sportcal Insight disrupted by smaller rivals offering simpler and/or the BBC, that great guardian of tradition. cheaper solutions. For rights-owners, there are of additional It’s a concept that has played out in the transport revenue streams and a new, younger set of eyeballs, (think Uber) and travel (Airbnb) industries. but ratings remain paramount. Digitisation has certainly taken its toll on the music But change is coming. and entertainment sectors. Remember cassette In PwC’s Sports Survey, published in late tapes - CDs even - and Blockbusters, anyone? September, David Dellea, director, Sports Business In linear TV, live sports remain one of the last Advisory, PwC , writes: “What are sports bastions, having been relatively unscathed by the industry leaders telling us? The message is loud and advent of digital. clear: the industry is undergoing more disruption For how long? than ever. Linear TV is experiencing decreasing In the fast-moving OTT space, predictions are the ratings and revenues. Global tech giants are slowly job of the brave. Or stupid. but surely entering the rights market. So here goes: the mainstream media will buy “These developments leave us with no doubt that the story in the weeks and months ahead that the big tech firms are gearing up to play in the sports likes of Amazon, Facebook and Google will mount rights market in earnest, either in direct competition serious challenges to the incumbents Sky and BT for premium rights or through broader partnerships. Sport for domestic rights when they The question then is, when is this tipping point the market. going to be?” There’s no-one quite like the Premier League Decade-long rights deals in USA have protected at engineering an auction for its rights. After all, the traditional TV broadcasters, perhaps not from both BeIN Sport and Discovery Communications actually losing rights to the new digital brigade, but were used in recent cycles to provide the illusion of certainly from engaging in a bidding warfare that competition. threatens to put greater pressure on the balance But let’s be honest, even the dip-pocketed sheets at a time of cord-cutting and shaving. Amazon will not go from a £10 million ($13.5 Come the early years of the next decade, the million) a year outlay on ATP tennis rights in the UK picture will very different if digital players to the billions of pounds needed to wrest control of continue to build up their portfolios, as they seem the richest league in soccer. entirely intent on doing. And I’m not sure the Premier League will jump in When researching this piece, an executive at a two-footed either. major sports property told me: “OTT is here now. The Premier League may well carve out a package It’s offering change, there are still some pitfalls, of rights, something Simon Brydon alludes to in his but it’s only going to get more compelling as excellent analysis on page 31, but there’s no way it technology advances. will put all its eggs in one basket at this stage. “What of TV? I have no idea as to the future of As it stands, it appears the big digital media linear TV in the next 10 years. I think I’d be better to companies do not value live sports rights quite as invest in a lottery ticket before answering that.” much as traditional media companies do. The revolution is under way. The very threat of them bidding, however, is Will the revolution be televised? That’s one for the enough to set off a stream of obituaries: ‘OTT is business professors. killing broadcast.’

TALK DIRECT TALK DIRECT [email protected] 475 www.sportcal.com AUTUMN 2017 Sportcal Insight 5

Contents Contributors

Chris Argyle-Robinson is a strategy director at RedTorch

Christian Knaebel owns Global Media Consult

Simon Brydon is a consultant with Pitch International LLP

Mike Laflin is Chief Executive of Sportcal

News analysis Cover Story Jonathan Rest 06 A change in the organisation of the 26 As over the top viewing disrupts Editor, Sportcal Insight, the way sport is consumed, are writes on events, bidding 08 Rugby 2023 bids rights-owners ready to make the and US major leagues 12 Creative thinking needed in soccer leap? 14 PGA Tour’s London aims Callum Murray World Boxing Super Series Editor, Sportcal Insight, Opinion 34 Weighing up the commercial prospects specialises in the IOC and 16 Chris Argyle-Robinson on getting for the $50-million competition international federations the fundamentals of OTT right 17 Christian Knaebel says there’s no Major League Krzysztof Kropielnicki time to lose 38 The latest North to of Sports grow its London presence Market Intelligence Murray Barnett 20 The Formula 1 sponsorship chief on Sponsorship Martin Ross the changing face of the series 42 The brands battling for supremacy Online news editor, is a in elite tennis broadcast rights and sports agencies expert Index 475 48 Key information on the events, people Simon Ward and deals driving the sports business Deputy editor, Sportcal, specialises in sponsorship and Asian market

TALK DIRECT [email protected] 6 News Analysis Insight Autumn2017 End of road for men from Del Monte

The recent establishment of CGF Partnerships, a joint venture of the Commonwealth Games Federation and Lagardère Sports, marks a major step change in the organisation of the games.

By Callum Murray

Time was when the CGF used to hand over all of its marketing and rights to organising committees of Commonwealth Games, along with a list of milestones and obligations that they were expected to achieve, from bid to legacy, and then leave them to get on with it, albeit with some guidance and support. “The men and women from Del Monte would occasionally come in to inspect the fruit,” is how David Grevemberg, the CGF’s chief executive, characterises the process. Now that’s all changed. In an exclusive joint interview with Andrew Georgiou, Lagardère Sports’ chief executive, Grevemberg tells Sportcal Insight that the appointment “We needed to change the delivery doing two things. Firstly, by responding of an agency had “been on the books model,” Grevemberg says. “We need to to the market, and the reality that under for two and a half years,” ever since the make the games far more efficiently and current market conditions hosting publication of ‘Transformation 2022’, effectively , to be far more innovative events is a real challenge for all sports outlining the CGF’s “vision, mission, but also more affordable. We need to and entertainment in general. We need values and strategic priorities” in 2015. be the controllers of our own destiny, by to be more fit for purpose. www.sportcal.com AUTUMN 2017 Sportcal Insight 7

“It’s about maximising revenues “Our sponsors are global “We need to make the games and going to the host city to say brands. We need to be far more efficiently and we can reduce the overall cost.” where they are” effectively run” Andrew Georgiou, Lagardère Thierry Pascal, PGA David Grevemberg, CGF Autumn2017

“Secondly, we want to be the industry cities, with increasing costs versus value “We become an active participant. thought leader. We want to be regarded return. We see that as an issue based on We won’t stop organising committees as an innovator of the industry because the specific knowledge and expertise in making decisions about how and where of the complexity and distinctiveness of our organisation, which is almost unique to spend their money, but it gives them the Commonwealth Games.” in our business.” ammunition based on previous games, The appointment of Lagardère Lagardère was involved in Rio de so they don’t need to re-invent the was “not really an appointment,” Janeiro’s successful bid to land the 2016 wheel – benchmarking what it costs, the Grevemberg adds (both parties have Olympics, and has been moving more ability to really manage costs. Hopefully, a stake in CGF Partnerships, albeit the into the event and bidding area since the value proposition will start to CGF is the majority shareholder). “We’ve acquiring Event Knowledge Services, improve to the point where there is a worked with Lagardère on various games the Switzerland-based company well- reversal of the trend and more and more over 20 years,” he continues. “It’s not a versed in Olympics bids, in 2015. cities will want to participate and more typical agency-federation relationship; it’s EKS, run by Craig McLatchey, once of varied cities will be able to afford to.” truly a joint venture. the International Olympic Committee’s Although a competitive bidding “We felt that a partnership with an Knowledge Services, is process is currently under way for the agency like Lagardère would have the now part of Lagardère’s Olympics and 2022 Commonwealth Games with robustness to go beyond one games. Major Events team and was appointed Birmingham having been chosen It addresses our needs in terms of an by Budapest to work on its bid to host ahead of as the possible overall asset pool that is available to the 2024 Olympic Games, which was candidate city for and perhaps each games. The delivery of the withdrawn in February. Kuala Lumpur in and a city games we firmly believe can be done Lagardère is also well-known within in also in the race- this only very efficiently.” the Commonwealth Games movement, came after in was In the first instance, CGF Partnerships as its Australian subsidiary Sports stripped of hosting rights by the CGF has been contracted to support Marketing and Management marketed for failing to meet some hosting criteria. the delivery of the next three major sponsorship rights for Delhi 2010 and Durban had, itself, been awarded Commonwealth Games cycles up Glasgow 2014 and is doing so for Gold the games unopposed when Edmonton, to 2030, but with a view to the new Coast 2018. pulled out, and partnership delivery model being the Georgiou says: “For me, the bit that (2002) and (2006) were foundation behind all the CGF’s major makes this joint venture almost unique is also unopposed in bidding to stage sporting events in the future. in relation to the delivery model. There the games. A key priority for CGF Partnerships are other games where the federation Now, Georgiou says, the CGF is is to reduce the cost and maximise the controls the marketing and broadcast saying, “we want to have more influence value of the games for hosts. In a bid to rights. We think we can maximise and control over the commercial rights, achieve this, dedicated CGF Partnerships revenues by doing that, but it’s not and not just assign them to the host city. delivery teams will be fully integrated necessarily unique. The really unique part That means we can go to the host cities with host city teams, providing enhanced is the deployment of internal resources with pre-secured revenues.” support, knowledge and expertise on the to sit within the organising committees, But is there a concern that the CGF’s delivery of the games. and transfer knowledge, insight, plans for reorganising the allocation Georgiou says: “One of the things we technology and software that allows of rights, in order to become the see as an organisation is almost a crisis them to improve their knowledge faster, ‘controller of its own destiny’, might in relation to major multi-sports event with less wastage and improved output. actually have the unwanted effect of 8 News Analysis

deterring potential bidders, on the basis becomes the host broadcaster, with that cities will regard it as an erosion Lagardère providing the resources. World in Union of the rights they have traditionally Returning to the issue of the enjoyed? allocation of rights, Grevemberg says: What are , and South “It’s not about the Commonwealth “The ultimate aim is not for the CGF Africa offering in their bids to stage Games Federation keeping the to sit back and keep 100 per cent of the 2023 ? revenues,” Georgiou replies. “It’s about everything. It’s about who’s in the best maximising them and going to the host position to maximise revenues. We can By Florence Lloyd-Hughes city to say we can reduce the overall add value to the host city by creating a cost. There are commercial partners more efficient, affordable model.” On 15 November, who would like to engage on a multi- The CGF has already held talks with officials will meet to elect the host games basis, and we’re already talking the cities that have expressed interest in country for the 2023 World Cup, to sponsors. There’s also an opportunity hosting the 2022 games, Grevemberg the tournament the governing body to give longevity to broadcasters. At says, adding: “Getting the host cities up proudly exclaims to be the third biggest present, everyone does a one-games to on the partnership approach sporting event around. deal, and there’s a temptation to do is critical to its success. It’s structured to Following the commercial success of as little as possible to maximise the generate and invest back into the games England 2015 and all indicators pointing return but they won’t promote the next themselves. We’ve been working hand to another financial windfall from games because it might not be them in hand with the cities to give clarity and 2019, the pressure is on for France, [broadcasting the games].” reassurance on this model. It’s very much Ireland and South Africa to prove Traditionally, the national broadcaster in keep with the direction the entire their value. in the host country has acted as the host movement wants to go. The detail is broadcaster of the games, but under evolving and 2022 is an opportunity to the new structure CGF Partnerships solidify the transformation.”

The CGF insists that, despite the origins of the Commonwealth Games in the British Empire Games and questions over their role in an increasingly crowded international sports calendar, the relevance of the games is increasing, not decreasing. The CGF says: “Post-Brexit and various other inward-facing regime and policy changes around the world, there is renewed importance to the economic and social value of the Commonwealth.” (stats from Commonwealth.org)

HALF OF THE TOP 20 GLOBAL BILATERAL COSTS FOR TRADING EMERGING CITIES ARE IN THE PARTNERS IN COMMONWEALTH COMMONWEALTH: NEW DELHI, COUNTRIES ARE ON AVERAGE

MUMBAI, NAIROBI, KUALA LUMPUR, FRANCE With the 2024 Olympic Games now BANGALORE, , , , CHENNAI secured for , the county’s major AND event hosting drive continues with the FFR’s bid to stage the 2023 Rugby World Cup. France is aiming to solely stage the 19% World Cup for a second time after hosting it in 2007 and staging some games from the 1991 and 1999 World Cups, alongside England, , $100 and Ireland. The FFR, much like Paris’ successful TRILLION THANLESS BETWEEN THOSE IN Olympic Games bid, points to the GDP, 14% OF THE WORLD’S TOTAL NON-MEMBER COUNTRIES country’s existing infrastructure and modernised stadia as a reliable and MEMBERSHIP STILL GROWING, sustainable option for World Rugby. THE LAST COUNTRY TO JOIN THE Of the 12 stadiums proposed to stage COMMONWEALTH WAS RWANDA IN games, all of them already exist and five were newly built or renovated for soccer’s Uefa Euro 2016. MEMBERS52 COUNTRIES; France invested €1.7 billion ($2 2.4 BILLION POPULATION billion) on soccer stadium renovations (A THIRD OF THE WORLD’S TOTAL), and construction for the European OF WHICH MORE THAN 60% ARE Championships, and Uefa estimates that AGED UNDER 30 2009 hosting the tournament boosted the French economy by €1.2 billion. www.sportcal.com AUTUMN 2017 Sportcal Insight 9

on its own, but it staged five games at the 1991 tournament. The country is fresh from hosting a record-breaking Women’s Rugby World Cup in August which saw sell-out crowds for all the pool games in and impressive attendance for the matches at Belfast’s Kingspan Stadium. The Women’s Rugby World Cup has been a blueprint for the Irish Rugby Union’s plan to stage games in the 2023 tournament across northern and southern Ireland. Of the 12 venues that the IRFU proposes to host matches in 2023, three are based in Northern Ireland and in its bid book, the team points to the “unifying” role that rugby can play for Ireland, despite a troubled history between the north and south. Eight of the stadiums are home to Ireland’s Gaelic Athletic Association and the federation is in line to benefit from stadium upgrades for all the venues, which will be paid for by the Irish governments. Like France, all of Ireland’s venues are already constructed but the Irish bid hasn’t taken its rivals option of a lucrative hosting fee but instead its government has agreed to underwrite just €320 million, which is made up of the €139 million hosting fee and other tournament costs. Ireland 2023 has said it will “deliver the biggest commercial return in Rugby World Cup history” through a “record offer” that will enable “unprecedented global grassroots investment.” The bid’s ambitious commercial programme hints to potential -ups with brands from Dublin’s tech sector, where eBay, Airbnb and Apple all have Lille, Lens, Saint-Denis, Paris, Nantes, The second guarantee, from an their European headquarters. Bordeaux, Lyon, Saint-Etienne, unnamed “large private French bank”, is Ireland is also hopeful of enticing World Toulouse, Montpellier, Nice, and for €236 million to “cover commitments Rugby with the engagement of its global Marseille are all slated to host matches, in terms of the organising costs of the diaspora, which it estimates is made up of with 10 of those cities having staged tournament.” 70 million people across the world. games a decade ago. The FFR’s ambitious commercial Ireland 2023 claims it will “unlock Alongside promises of a participation claims for the tournament include significant new audiences for the legacy, sustainability and economic projected revenues of €477 million, game” in “new and developing rugby growth, the FFR’s most enticing offer of which €373 million will come from markets”, specifically, North America, and standout bid promise to World ticketing. which is home to around 37.5 million Rugby is a financial guarantee above By comparison, organisers of England people that identity as Irish, and where and beyond what is expected. 2015 generated over £250 million World Rugby believes a World Cup in The FFR has submitted two in ticketing monies, delivering an the near future will be held. guarantees to World Rugby, totalling £80-million surplus to World Rugby The IRFU believes its planned legacy €407 million, of which the first and a £15-million surplus to the Rugby programme will engage an untapped guarantee from the French Federal Football Union to be invested into the audience in North America, using the government, is for €171 million, development of rugby. competition as “a platform to grow exceeding the £120 million ($158 IRELAND rugby” and signifying a “key moment million) hosting fee stipulated by World Unlike France and South Africa, for the sport’s growth in an important Rugby and the FFR’s rival bidders. Ireland has never hosted the World Cup strategic market.” 10 News Analysis

SOUTH AFRICA South Africa is hoping it will be fourth time lucky in its attempt to host the World Cup again after failed bids in 2011, 2015 and 2019. The SARU is confident that the 2023 tournament could reignite some of the historic memories from its hosting of the 1995 Rugby World Cup, which was the first major sporting event the county hosted after the end of apartheid. However, its journey to bid submission has been a tricky one, after the government had temporarily banned sporting federations from bidding to host events because they had failed to meet targets on transformation in the post-apartheid era. When the ban was eventually lifted in May, the country’s cabinet approved the request for guarantees totalling R2.7 billion ($202 million). The SARU boldly claims that “unlike other mega-sporting events” it would “profit” from hosting as it promises a “low-cost, high-return” tournament. According to Jurie Roux, SARU chief executive, hosting the tournament would be “a marvellous, inspirational nation-building moment to recapture some of the excitement of 1995, but it would also have enormous practical benefits for our country. “Hosting the Rugby World Cup in 2023 would have a R27-billion direct, indirect and induced economic impact on South Africa; .7 billion would to low income households; 38,600 temporary or permanent jobs would be sustained and there’d be an estimated R1.4 billion tax benefit to government.” Grant Thornton, the professional services network that carried out a feasibility report for the SARU, estimated that Durban alone, which would host games in the and Kings Park Stadium, could benefit from R4.5 billion economic benefits. The SARU plans to use eight existing stadia in seven cities, with the final taking place at Soccer City in Johannesburg - the showpiece venue from the 2010 Fifa World Cup. South Africa spent R40 billion on building six new stadiums and upgrading airports and transport links for the 2010 World Cup but the country’s international team and domestic clubs have so far failed to build on the legacy of the event. However, the country has fond memories of the 1995 Rugby World Cup and is less sceptical about the potential economic benefits of hosting again in 2023.

12 News Analysis

knowledge or effort to identify, League, AB InBev, a Fifa World Cup Teams must think propagate and develop what that brand sponsor, and Mars, a partner of England’s actually is.” Football Association. as brands He adds: “The commercial analysis Carling claims that the sums involved a rights-owner has to do and how it mean it is increasingly important for Octagon believes soccer clubs need positions itself to the marketplace sponsors to justify their outlay on teams to be more creative to stand out from actually has to start with an and competitions, and that rights-holders the crowd understanding and articulation of what can play a key role in helping them their proprietary difference is. achieve that. By Simon Ward “You could see presentations from, He says: “There is recognition on behalf for example, , Real Madrid of the clubs now. They have to give the Leading soccer clubs are being and Bayern , and, if you took clients the opportunity to make a return encouraged to make greater efforts the branding off, you wouldn’t be able on their investments because you take to develop their own brands in order to distinguish between those three something like a Champions League to differentiate themselves and make propositions because they’re all selling sponsorship and we’re talking €50 million them more attractive to audiences and the same thing effectively – the signage, to €60 million a year just in rights. sponsors, with agencies able to play a the exposure, the tickets, association “It does give you a certain amount key role in the process. with a great club, association with a of media value, but that’s not so valued Octagon, the international sports great sport. these days and the activation that goes and entertainment marketing agency “It’s all very good, but there’s nothing behind it is way more important. More that is a significant player in soccer, has that differentiates those propositions often than not that activation sits within evolved in recent years from a company from each other. Our contention is that non-linear media and that’s going to be a that predominantly works with brands the primary piece of thinking needs to big challenge for the elite rights-owners, on contract negotiations and activation be ‘what is it that makes Bayern Munich particularly those products that are to one which also offers consultancy different, special and unique compared most predicated on media value for the services and analytics to rights-holders, to any other football club in the world?” justification of the fees.” including Uefa, England’s Premier Carling claims that, from the Carling anticipates that Octagon’s League and elite teams, on how best to income generated from media rights, “proprietary position” in soccer exploit their assets. teams in the Premier League and beyond It is also now making a return to should be investing in creative concepts the media rights market, with the alongside “brand doctors”, and that Real Madrid’s Sergio Ramos celebrates establishment of a new consulting Octagon is already working with several scoring his team’s third goal during the practice based in USA. partners in this area. Uefa Champions League group match However, amid competition from While acknowledging that live against APOEL Nikosia rival sports agencies and potential matches remain the most compelling challengers moving into the sphere, product, he stresses that soccer is now Octagon, which is owned by advertising much more than the 90 minutes, but giant Interpublic Group (IPG), is already “365 days and 24/7 on a global basis” eyeing other opportunities, and can and that brands and rights-owners see a major one in using its knowledge need to fully exploit platforms outside and resources to empower clubs to the collective deals, notably online, to project themselves to the worldwide engage with their audience. commercial marketplace. He continues: “I think that over the On the back of huge rights deals such next five years this is a very exciting as the English Premier League’s three- area for agencies to move into. You still year domestic live TV contracts worth need the data, the knowledge and the over £5 billion and the global popularity analytics to underpin and to build the of soccer, European clubs have been packages that justify the commercial getter richer and built up their profiles case, but if you can add to that a unique and international following. creative territory and articulation of what However, there is a sense that this your club or property stands for as a has not been accompanied by growth brand, that’s powerful. in creative thinking on how they can “We know with the brands we work stand out from the crowd off the field with that what they like more than and offer a more attractive platform for anything is finding a property that commercial partners. provides them with a rich, creative Phil Carling, head of football at territory in which to tell their own brand Octagon Worldwide, tells Sportcal story, and if you can bring those two Insight: “Most football clubs and things together then that’s really strong.” rights-owners within the football Established clients of Octagon in space are brands, but they’re brands soccer, among other sports, include almost in spite of themselves. They’ve global brands such as MasterCard, one become brands without any conscious of the main sponsors of the Champions www.sportcal.com AUTUMN 2017 Sportcal Insight 13 marketing consultancy, backed up by its Octagon Media Rights Consulting, growing integration with the sponsorship experience in the field and acquisitions which launched in in August, sector, and the increasing reliance on such as Futures Sport & Entertainment, is headed up by Daniel Cohen, data and analytics. the data, technology and analytics formerly managing partner, senior Cohen says: “Rights-holders and company, will be challenged by the vice-president for the Americas at MP content creators are not just looking for a major professional services firms. & Silva, and has a mandate to provide consultant to bridge a gap or get a deal He continues: “The difference is that strategic consultation to domestic done, but to wrap themselves around we come from the and international rights-holders, software and bring in an outside party and therefore we have unique broadcasters, digital platforms and that can support them.” insights which McKinsey and Deloitte do sports investors. The initial focus is on USA and the rest not have. When we talk about the value The move was motivated by demand of the Americas, but the media rights of a Champions League or World Cup from existing clients seeking evaluations arm is intended to be a global offering, deal, the chances are we’ve done a deal of media rights, plus the growth of with the support of Octagon’s 50 for or on behalf of a client in the last six new distribution channels for content, international offices and audience data months and therefore our knowledge including digital and OTT platforms. from Futures Sport. is much more current and it gives us a Simon Wardle, Octagon’s chief strategy Potential clients include leagues, competitive advantage. officer, explains: “It’s a non-traditional governing bodies, teams, traditional “But it won’t last forever. I think business for us because we’ve been broadcasters, digital platforms, content potentially the McKinseys and Deloittes focused on non-broadcasting consulting. creators, telecoms companies, OTT will buy sports marketing agencies to But the same things are happening in providers and media buyers, plus private integrate into their packages.” the world of media. Our sister business equity firms, venture capitalists and This explains the need to find new Futures Sport, which I run, showed the technology companies. revenue streams, notably in the shape need for this business is acute.” of soccer clubs, and Octagon is also While the launch does not represent a ONLINE: Sign up for daily branching out with a consultancy return to the buying and selling of media news alerts on technology practice advising clients on how to rights, a market that Octagon exited innovation at maximise media rights assets across when it sold CSI to rival IMG Media www.sportcalcom/news various platforms. in 2006-07, it does demonstrate the 14 News Analysis

sales but also on servicing existing opportunities. London is a media hub. London Calling clients in that space. It’s time we were Being on the ground, having lunch with on the ground,” Pascal says. an agency, or a broadcaster, or even Analysing the motives behind the “We have a growing number of another league, because it’s all about PGA Tour’s central London hub. international media partners and building the knowledge base – we’re sponsors. It is imperative to build and competitors for eyeballs, but we are all By Jonathan Rest foster those relationships with partners in the same business – is vital. It is hard locally, and not from several time for us to do that from America. A 9-iron it may be from MI6 zones away. “Sure I can pick up the phone to headquarters but US ’s PGA Tour “While we have managed to do Barney [Francis, managing director of insists this is no secret mission, as quiet that for many years successfully from ] but ideally you want be as it has been since setting up base in , there comes a tipping point deep in the weeds.” London. when you need to be on the ground, Sponsorship business from London The PGA Tour’s Vauxhall Bridge office and there’s only so much travel you can is being headed up by EMEA vice- has been operational since May, but do. We have as many media partners in president Phil Kennard, most recently only in mid-July did it really speak out, as any other big sporting entity, commercial manager at Land Rover BAR inviting the great and the good of the so we want to be talking to them and during the Ben Ainslie team’s sports industry to a lavish reception at supporting them, while helping them to Americas’ Cup exploits. the National Gallery. build their audience.” The implication is that the PGA Tour Publicly, the Tour insists its In the UK, the PGA Tour has a long is seeking to court sponsors who might permanent presence on the ground and established broadcast relationship otherwise be attracted to European in London should not be seen as an with pay-TV operator Sky. That deal Tour events. aggressive move on the European Tour, runs to 2021 and Sky recently moved to Given the global nature of the headquartered at Wentworth , strengthen its golf offering by scrapping sponsorship market, Pascal insists (again) located on the south western fringes of its numbered channels and rebranding that a London presence is “sensible.” the capital. them as sport-specific destinations, “Our sponsors, whether it’s a title Thierry Pascal, senior vice-president, in this case Sky Sports Golf, which sponsor or commercial partner, are international media at the PGA Tour, customers can individually subscribe to. global brands, the likes of Rolex, insists it is purely a “good business “We have a terrific relationship with HSBC and BMW. We need to be sense” decision. Sky, and now we can work more closely where they are.” Pascal is based in the Tour’s Ponte with them,” Pascal notes. “We are Vedra Beach, Florida-headquarters, but always looking to strengthen business has spent much of the past three months crossing the Atlantic to establish the London presence and build-up the team. London has been a topic at the Tour for a number of years, but why make the move now? He tells Sportcal Insight: “There is a growing recognition of how important international is. Are we a global company or product that just happens to be based in the US? Or are we a US business with international operations? We should be the former but we have been the latter. We are recognising the need to change that. “We are becoming increasingly international. We now have events in Canada and , and we’re in Asia with tournaments in Malaysia and the WGC-HSBC Champions in , and this year we’ll be adding an event in , so we’ll have a real Asian swing.” It is the Tour’s third base outside of USA, with offices in and Tokyo (described as its Asian HQ), and while London is a small sales operation at present with three permanent staff, growth is anticipated. “There’s a new business element, a focus on rights sales, on sponsorship HOSTING WINNERS

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GOLD PARTNER 2018 16 Columnist Opinion

‘Why would someone pay to watch your sport?’

Global OTT TV and video revenues will hit $65 2. Understand your audience: competition billion in 2021, more than the 2015 intensifies when other genres are introduced Chris Argyle- figure. But how much of this eye-watering figure into the OTT mix. Robinson is strategy will go to sports rights-holders? 3. Price competitively: do your research. director at RedTorch, The OTT world is set to become increasingly A recent summer Olympic sport’s World the independent competitive as sports battle for audiences. Championships were available on the data-driven digital To succeed, rights-holders need to rethink the federation’s native OTT platform, but were at communications fundamentals of marketing and revisit ‘The 6 Ps least 60 per cent cheaper on Player. Is agency specialising of marketing’ to answer one simple question: this effective pricing? in sport. It’s understandable to want to generate TV- Why would someone pay level revenues, but OTT is a different market and to watch your sport? requires different expectations.

PEOPLE PLACE 1. How much disposal income do they have? With people increasingly choosing to watch This has a huge impact on willingness to content on mobile, 3G/4G quality will have a huge purchase, especially as fans are still reluctant impact on audience acquisition and retention. to replace traditional TV bundles with OTT Put simply, broadband speed will go a long way offerings that are often disjointed and towards determining if your OTT offering is a cost-heavy. roaring success… or a catastrophic failure. 2. How much time do they spend watching TV? Time spent watching TV is the single biggest PROMOTION prize for competing live sports. For example, The biggest challenge (by far) with emerging US adults watch TV an average 3.3 hours per OTT platforms is simply that most of them are day. An average sports broadcast for this not set up for e-commerce. Whether it’s lack of a market lasts over 2 hours, so, to reiterate: Why holistic CRM system, or an in-house team with no would someone pay to watch your sport? OTT-specific experience, the basic structures are not in place. PRODUCT There seems to be a focus on integrating new How fans experience your sport in the digital technology without understanding how most space goes a long way to determining success. effectively to use it to acquire audiences. Why? The key is to deliver digital-first, platform- and Because audience acquisition is expensive. audience-specific narratives that engage people Expectations must be managed: the amount emotionally. While this process takes time, it is you spend on audience acquisition will essential as the quality of narrative will determine determine the size of audience you acquire. how many people watch – and continue to watch – your competition. PERFORMANCE OTT platform success is measured by high PRICE average view time, low churn rate, and the ability Enormous TV revenues are distracting, and to attract and keep new customers. rights-holders would do well to ignore them It’s not clear which sports will benefit from the when pricing for OTT. OTT boom, or the exact size of the revenue- My three top tips: generating opportunity, but if ‘the 6 Ps’ are at the 1. Perform a cross-genre price comparison: not heart of everything you do, your sport will stand just with sport. more chance of grabbing a piece of the OTT pie. www.sportcal.com AUTUMN 2017 Sportcal Insight 17 “Do not fall for the snake oil salesman promising cheap entry into the OTT TV sphere”

Why should you enter the OTT jungle now? OTT TV platform. All you need to provide is your content and you can start. And most of all, Christian Knaebel I’m often approached by people not typically technology is affordable. owns Global Media entrenched in the TV industry, but who have Budgets should not be a limiting factor either, Consult, a leading access to great content. Especially in the sports especially when you consider the huge upside of international consulting business, there are hundreds of such players, generating various revenues out of your OTT TV boutique for TV, large and small, yet they always ask me the service. But, in any case, you would be wise to Media and Creative same question: ‘should I launch my own OTT TV have a generous budget and invest in a state- Businesses. He consults service?’ I always give the same response, a big of-the art solution. Do not fall for the snake oil clients of all sizes on YES. salesmen promising a cheap entry into the OTT launching TV and video Now is the right time to launch an OTT TV TV sphere with their platform - you will pay dearly services, distributing service. The opportunity has never been bigger later on, if things fail. or aggregating TV and shinier, especially for sports content. This is Make sure the project has top priority among content, developing TV even truer if you are offering niche sports content. your team and leadership - and make all platforms and entering The big players such as Disney/ESPN, Discovery/ necessary resources available. Most new OTT new markets. Clients Eurosport, BeIN Media and Sky are all taking the TV services fail for one of two reasons (or both): include Al Jazeera, lead in this arena. It is about occupying shelf- lack of sufficient funding and lack of operational Bloomberg, Liberty space and customer-relationship. support. Budget enough money to sustain a Global, NBC Universal, It is another step towards a business long enough start-up phase and do not expect SABC and Vodafone. environment where more and more content large ROI too early. Have a good service team creators get into a direct relationship with content that supports your project: targeted marketing, consumers, thus shortcutting the distribution excellent customer service and experience, and and aggregation platforms. Most notably it will knowledgeable content curation are the three key undermine the TV content resale business of cable areas to focus on. operators and telcos. It’s all about distribution. Think about the user often. Your own OTT The future of TV and video is with apps. The TV service gives you the unique opportunity future TV universe is going to be a world of to engage directly with the consumer. There is various apps. Consumers can choose freely on nothing between your content and the audience which service they’d like to spend their dollar - no any longer; no cable operator, other TV channel cable operator, telco or channel bouquet as a or editorial gatekeeper to deal with. You are in full bottleneck. You can now distribute directly to the control of the relationship with your fans and the audience, and you can use all types of content. entire brand experience. So make an impact. Finally, you can make use of your archive, too, and Your own OTT TV service gives you much be able to distribute it, moreover, monetise it. more muscle in the ever-so-hard sports rights When you think about launching your OTT TV negotiations. You can negotiate better with rights service, there are a few issues to consider though. buyers because you now have your own outlet Too often I see companies fail by not thinking to broadcast and distribute content. It will also the project through and not applying the proper give you leverage to acquire content, because expertise. While it seems to be an easy endevour there are content owners who would rather work to launch an OTT TV service these days, there are directly with a niche service than deal with a numerous pitfalls to be wary off. behemoth like Sky or Discovery. On the one side, technology is not a limiting The jungle is just starting to grow. It is up to you factor anymore. There are various technology whether you want to be a tiger or cricket in it. vendors and service providers that offer a one- stop-solution or managed services for your

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www.infrontsports.com Twitter @infrontsports RIGHTS FEES INDEPENDENT $$$ NEWS TERRITORY BROADCASTER ANALYSIS DEALS PORTFOLIOS DATABASE 20 Interview Murray Barnett: Driving Change

DRIVING CHANGE Murray Barnett talks to Jonathan Rest about his plans for the commercial evolution of Formula 1 under the series’ new owners

t’s the world’s fastest sport that for too His remit, quite simply, is to build on long was accused of standing still under existing partnerships and attract new Mr Formula 1, Bernie Ecclestone. sponsors, something the series has But since the changing of the struggled with over recent years. guard brought about by Liberty Media’s His appointment coincided with Icompletion of its $8-billion takeover of CAA Sports, the division of USA-based Topco, Formula 1’s parent company, entertainment and sports agency Creative in January, the pace has been relentless. Artists Agency, being brought in by the An influx of hires to bolster the senior Formula 1 management team to exclusively management and a new headquarters in represent its sponsorship rights worldwide. the heart of London’s fashionable West End That was intended as a short-term deal to have changed the face of the organisation, “use an American term, get some points on with plans now being formulated to attract the board quickly,” while Barnett built his new fans, and sponsors, after a decline in team, which is now six-strong and expected audiences in recent years. to double in size within a year. “We call it the 60-year old start-up,” “There is much to do in the space,” Barnett, Formula 1’s first-ever head of admits Barnett, who reports into another sponsorship and commercial partnerships, of the new guard, managing director of tells Sportcal Insight. commercial operations Sean Bratches, “In many ways it feels that way and if you formerly a senior executive at sports talk to any of the people that have been broadcaster ESPN. here a long time they’ll tell you it’s like “Although Mr Ecclestone did an working in a brand new organisation.” amazing job of building Formula 1 to what Barnett is one of the newcomers, having it was, he had two main focuses: high joined in late April from World Rugby race fees and strong TV revenue. So the where he was first head of broadcast, commercialisation of the events and the commercial and marketing, and then series itself was very much an afterthought. chief commercial officer. www.sportcal.com AUTUMN 2017 Sportcal Insight 21 22 Interview Murray Barnett: Driving Change

“The combination of there not being much precedent and having new ownership who have a very broad view of how it should be approached and no pre-conceptions, meant I was starting with a blank slate to really look at the development of the sport.” At time of writing, Formula 1 has six global partners and two suppliers. Barnett knows three of those global partners inside out, having worked closely with Emirates, DHL and Heineken during the 2011 and 2015 Rugby World Cups when they were worldwide partners (they are all also signed up for the 2019 edition). World Rugby has traditionally had six worldwide partners, and Barnett says he sees value in limiting top-tier availability. “We have six global partners right now. At the top level, we will probably grow by three or four at the most,” he notes, with financial services and technology two categories thought to be under consideration. “But the next level down is a little more infinite. The only thing which we are limited by is the [amount of] trackside signage. Above and beyond that we are growing exponentially our digital CATEGORY EXPIRATION DATE properties and what we can do with fans.” GLOBAL PARTNERS Barnett concedes that sponsorship was “somewhat forgotten about” in the Heineken Beer 2023 pre-Liberty era, but that provides the DHL Logistics 2017 opportunity to build flexibility into the new commercial model. Rolex Timekeeper 2024 He explains: “When you look at the [Uefa] Champions League or World Emirates Airline 2017 Rugby, it is quite a fixed package. So if Pirelli Tyres 2019 we had a sponsor drop out it was about approaching a brand in that category Carbon Champagne 2018 and saying ‘here’s what a package looks like, how much are you willing to pay OFFICIAL SUPPLIERS for it?’ Johnnie Walker Whisky 2019 “What we are doing at Formula 1 is trying to tailor-make something that Tata Connectivity 2019 meets a sponsor’s objectives. There are some brands who are not interested critically important to us. My vision as it Does a stated preference for pay- at all in track-side signage. They want relates to media rights is a hybrid of - TV, therefore, make Barnett and his more access to our database or ability to-air and pay. Our plan is to balance the department’s job more difficult? to reach our consumers off the track, so two but have a prominent, over the year, After all, the promise of fewer eyeballs is we are then able to construct a package free-to-air voice. not exactly a selling point to prospective that suits them much more. Not every “That is important from a fans, brands. sponsor has to have the same inventory.” sponsors and relevance standpoint. “It’s difficult to give a generic answer In late June, the new owners of There is the cauldron full of cash on the because it’s different in every market,” Formula 1 announced they would be pay side and on the other side of the he notes. “For example we will be seeking a 30:70 ratio in terms of free-to- scale you have brand and reach. going exclusively pay in the UK at the air and pay-television coverage of the “My view is a 30:70 model of free-to- expiration of the deal, so sport in future rights deals, albeit it will air to pay, where you have a number of that’s going to be difficult situation there. honour an exclusive six-year, £1 billion grands prix to be on free to air and then But when it comes back to engagement contract with Sky in the UK from 2019. we can play and toil with the pay side to versus exposure, you could argue that Bratches told the FIA Sport generate revenue that we can reinvest the audience, albeit lower that you’ll Conference in Geneva: “Free-to-air is back into the sport.” get on Sky compared to Channel 4, is www.sportcal.com AUTUMN 2017 Sportcal Insight 23 a much more highly-engaged audience “We had Little Mix, Kaiser Chiefs the teams have done in that area and and, from a sponsorship perspective and Bastille playing. If you take away we actively encourage the drivers to talk they’re the people that are actively the car part of it, that probably gives about what they are doing at the track involved.” you a flavour of how we would see a for people to understand it a bit better.” On his first day in office at the turn of city centre activation happening in the Barnett believes loosening the reins will the year, new Formula 1 chairman and future, where during the day it can be reap commercial benefits for all involved. chief executive Chase Carey, a long-time used for educational purposes, or more “The new positioning of F1 is that it understudy of media tycoon Rupert experiential things, like taking part in a should be at the nexus of entertainment, Murdoch, outlined ambitious plans for tyre challenge, and then in the evenings sport and cutting edge technology. To the sport, envisioning 21 grands prix you might have bands playing or a reinforce that we have to have the most with the “excitement and buzz” of NFL fashion show.” advanced digital media platforms, they ’s Super Bowl. In the same week, Formula 1 unveiled have to be the most engaging platforms, “They should be week-long a partnership with , the photo but they still need to have the sport at extravaganzas with entertainment and and video messaging app, marking its the core. music, events that capture a whole city,” first commercial collaboration with a “So it’s very much about how do he told international media at the time. major digital and mobile-first platform. we achieve those objectives through That is music to Barnett’s ears. Throughout the remainder of the engaging with new consumers through He says: “The concept is that season, exclusive content has been digital media, through making interesting Formula 1 is the fulcrum for this huge pushed through Snapchat’s ‘Our Stories’. and engaging content and through entertainment platform that will cover It is a collaboration few would have trying to bring the teams and the drivers fashion, music, food, and envisaged when Ecclestone was in power. along with us in terms of understanding education. So F1 comes into town on While the 86-year old promoter was that mission. a Tuesday or Wednesday prior to the widely credited for turning the sport into “This is such an untapped asset. There race weekend and there will be a whole a multi-billion-dollar business, he was is so much opportunity for the sport to bunch of activities throughout that part increasingly regarded as out of , at evolve and grow.” of the week. In fact you may not interact a time when Formula 1 has to compete What then, can Formula 1 aspire to? with the race itself at all, but you will for attention with other sports and “If you want to look at reference points interact with many other parts of the entertainment products. for Formula 1, certainly what the NFL F1-related activity. So it gives me a great Ironically, in April 2016 Ecclestone and NBA have done internationally, and opportunity to sell MasterCard as our banned prominent British driver Lewis what the NFL does when they are in a music partner, Martini as our fashion Hamilton from filming footage for his Super Bowl city. The top US leagues do partner or whatever it might be. That’s Snapchat videos inside the F1 paddock. sports marketing much better than most not to say some brands won’t sit across “That was F1 then with Bernie. And other leagues. multiple strands of that. this is F1 now after Bernie,” reflects “The Super Bowl not only has a whole “Let’s fast forward a year from now. Barnett on the sport’s new digital-friendly bunch of activities in the week leading There should be no excuse for a brand to approach. up to it, but it is actually ambushed by say to me ‘because you are “One of the first things that Sean non-sponsor partners looking to feed off I’m not interested in you’. I should be Bratches and Chase Carey did when they that crowd. able to say ‘oh, you’re interested in joined was to tell the teams ‘so long as “I think that is a measure of success fashion, well we’ve got this’ or ‘you’re it’s not during practice, qualifying or the for us if, all of a sudden, we find our interested in music, we’ve got that’.” race, you can do whatever you like at Grand Prix weekends significantly In the week leading up to the British the track with your social media’. That ambushed by brands.” Grand Prix in July, Formula 1 offered fans has seen a massive explosion in what a snapshot of what race weekends could come to look like with the staging of London Live, a show in the heart of the city, featuring teams, drivers and cars, alongside a host of stars and headline music acts. For Barnett, it was “the first tangible example” of the ‘new era’ that Liberty and the senior management had talked so much about. “We put our hands in our pockets to put on an event and didn’t ask the teams to pay up [it cost them through the logistics of supplying their cars], we didn’t ask the city of London to put money in and we didn’t ask our sponsors to pay extra. That event itself did more to show people that we are thinking about things in a very different way than anything else. RD 232017 SALLE DES ETOILES Sporting Club,

TVSPORTSAWARDS.ORG 17056_PUB_SPORTCAL.indd 1 22/09/17 10:40 26 Media OTT

OTT

THE LINEAR STAR By Jonathan Rest www.sportcal.com AUTUMN 2017 Sportcal Insight 27

“We envisage anybody, really, being Scudamore’s declaration that the the £4.2 billion it spent in the current able to come along and bid for Premier League will be “technology- cycle to retain the lion’s share of those rights. We would need some neutral” when the new domestic rights matches. distribution criteria and to make tender hits the market early next year Thomas Singlehurst, an analyst at sure it was readily available across was either, to steal a cliché from the investment bank Citi, predicts: “The platforms and everything else, but soccer transfer window, a ‘come and get base case consensus [of Sky analysts] is as long as it was widely available and me plea,’ or, more likely at this stage of that payments go up by £600 million a distributed properly, we wouldn’t rule the OTT journey, a clever ruse to create year from the 2019-20 season.” those out.” the illusion of a serious challenge to However, the chances of a major Richard Scudamore, Premier League incumbents Sky and BT Sport. package of Premier League matches executive chairman, speaking on the Not that the major digital players going to a digital player in the UK at eve of the 2017-18 season. haven’t offered encouragement. present remains unlikely, as Singlehurst Amazon and Facebook have already notes: “They are incredibly expensive shown their cards, while Apple and and UK only. As a standalone offer they Google/YouTube are topping the media would be a loss leader for Sky or BT, but analysts’ ‘ones to watch’ lists. they are able to cross-subsidise to make Then there are the new players, it work with broadband, TV, landline and the likes of DAZN, mobile. None of these new competitors and Sportsfix operating in territories can cross-subsidise to the same level to worldwide. make it work, even Amazon. And they And not to be outdone, Eurosport, tend to prefer global content the Discovery-owned, pan-European deals to make it work across a much broadcaster, US sports networks ESPN bigger base.” and Turner and the UK’s Sky have been Marc Watson, the executive chairman making big strides in the over-the-top of international pay-TV broadcaster market in the last 12 months. Eleven Sports, and a former executive For that quartet – and there are many at BT Sport, believes the Premier others – while the vast majority of their League remains some way off for these revenues come from subscriptions and digital players. advertising, there is a realisation that He told Sportcal Insight Online revenue from digital streaming services recently: “The Premier League is a big will grow exponentially. chunk of someone’s profit margin if After conquering the you want to buy all of that out music and entertainment and I don’t see that happening industries, Silicon Valley any time in the short term but has turned its attentions in the long term, who knows? to sport, initially dipping “Nobody’s made a big its toes then plunging move yet and I’m not sure head first into the water whether they will or not. My over the past 12 months. guess is that what’s important The next big rights to to them is that their customers hit the market will be the have access to content, and if domestic tender for the Premier they have that on a reasonable basis League, with an auction set to be then I’m not sure whether they’ll feel concluded in early 2018. Sky and BT obliged to spend billions on premium will fight hard to retain the rights that live sports content.” they collectively shelled out over £5 In USA, however, they’ve not had billion ($6.6 billion) for ahead of the the chance to flex their muscles, with 2016-17 campaign. domestic major league rights locked up Indeed, analysts believe the until the early part of the next decade. competition, or illusion of it, from these This is giving some digital players deep-pocketed tech firms could force more time to build a strong sports Sky to pay a 45 per cent premium on offering. 28 Media OTT

Speaking to leading sports properties sports properties that become available He says: “These digital players are at the 2017 Global Sports Summit in in 2021, 2022, 2023.” starting to realise that, in sport, you can Aspen, Colorado, Rich Greenfield, Oli Slipper, the former joint chief have massive penetration of business managing director, media and executive of digital sports content and simply by putting up money. And their technology analyst at New York-based media group Perform, which has its own balance sheets are huge. These would BTIG, said moves by Amazon and Apple OTT offering in the shape of DAZN, tells essentially be pimple investments if they to “change the definition of a media Sportcal Insight: “I don’t think you’ll see want to be in this space.” bundle” will present major challenges a global bid or a pan-European bid for Robert Kraft, owner of the reigning to the established linear sports the Premier League because it will not Super Bowl champions New England broadcasters in USA. want all the eggs in one basket. Patriots, is in no doubt that for the NFL, “We always think about the “But in the US, you will see some of “the future is OTT.” cable bundle, in with your phone the bigger players take on the existing Speaking at the Cannes Lions festival and broadband. But the bundle is pay-TV operators for sure. The long- in June, Kraft said: “We’ll be very changing. With Amazon Prime, you term rights deals in USA have been interested to see how Amazon goes as get free shipping, prime video and very good for the likes of ESPN, , it’s behind the paywall. The thing we catalogue music. There will be more CBS and NBC in terms of keeping them have to be careful of is millennials. They Amazon Prime subscribers in USA in out. Over the next five years, these new don’t watch TV, they don’t have TVs or 2021 when they bid for [NFL] Monday companies have the chance to really subscribe to cable. So we have to bring Night Football than there will be ESPN build up their media strategies. that audience in. … over-the-top is a subscribers. It won’t even be close. “I think it could open the floodgates great opportunity.” “Apple is building a new bundle as in terms of a mega-funded player. Amazon hasn’t stopped there. It will well, video content in with Apple music. Nothing will hold it back.” become the exclusive broadcaster of They’re trying to build a bundle of Twitter’s decision to pay $10 million men’s tennis’ ATP Tour in the UK from services that add value to the consumer, to live stream 10 NFL Thursday night 2019, replacing Sky in what represents so I don’t think it’s crazy to believe that matches for free globally in 2016 raised its biggest sports content deal outside either of these two companies could be eyebrows. It was a significant enough USA (paying around £10 million a year), an aggressive bidder for MNF or other outlay, considering the games were still while it is said to be planning audacious big sports rights over the course of next aired in USA on CBS and NBC. swoops for two of the biggest sports few years. The rewards, for Twitter, were eyeballs properties in Oceania – Australian Rules “Each of them is in a really strong - it attracted an average of 3.5 million football’s AFL and matches of the All position to use sports as a battering ram unique viewers for its Thursday games. Blacks, the national rugby to have a much larger subscriber base.” Fast forward 12 months, and those union team. It is a sentiment shared by Lee Berke, same rights – 10 non-exclusive matches Roy Price, head of Amazon Studios, a US sports media consultant, who runs - are now held by Amazon, the retail told the International HB Sports, Entertainment & Media. giant but at a price of $50 million (it Television Festival in September: “People “Nobody is saying here in the States, is charging advertisers $2.8 million a love sports – it’s big, it’s engaging, it from an ESPN, Turner or CBS standpoint, package, with matches available to really motivates people, so I think that’s a ‘we are going to place everything over members of its $99-a-year subscription good opportunity. I think it’s definitely an the top’. However, I think they are going service, ). opportunity we’ll explore.” to reach that stage in the next three to Twitter, Facebook and the YouTube all Amazon also bid unsuccessfully for Uefa five years if pay-TV subscriber bid big sums for the package. Champions League rights in Japan (it lost continue to shrink as they have been,” Greenfield calls it a “seminal out to DAZN) and took an early interest in Berke tells Sportcal Insight, moment” for the OTT market, a sign the next cycle of Twenty20 cricket’s Indian “Apple, Amazon, Twitter, and Google/ that the “new boys” are willing to pay Premier League, buying the invitation to YouTube, these are all players for major big to take on the status quo. tender documents, but like ESPN Digital, Twitter and Yahoo it did not subsequently North American Major League rights deals in USA make offers for rights, which were awarded in early September. Facebook did, however, bid. In fact LEAGUE BROADCASTERS EXPIRATION OF DEAL VALUE it offered the most money, Rs39 billion ($608 million), for the digital rights NFL CBS, NBC and Fox 2022 $28bn over 9 yrs package in for the next five years, ESPN (Monday night 2021 $15.2bn over 8 yrs only to lose out as global IPL rights went football) to broadcasting giant for an MLB Fox, Turner and ESPN 2021 $12.4bn over 8 yrs incredible Rs163.5 billion. It was the first tangible evidence of Facebook making a pitch for exclusive NBA ESPN and Turner 2025 $24bn over 9 yrs rights. Much of its work in the area to date has been to partner with existing NHL NBC 2020 $2bn over 10 yrs rights-holders, in doing so streaming games from MLB, MLS ESPN, Fox and 2022 $720m over 8 yrs and Mexican soccer’s top-tier LigaMX Univision Deportes across USA. www.sportcal.com AUTUMN 2017 Sportcal Insight 29

It recently agreed a deal to show sports is “really good in the moment” vast majority of the 340 games annually. coverage in USA of European but the “afterlife of a given show is Turner’s Champions League coverage soccer’s Uefa Champions League in a quite small.” In short, you cannot binge will include four live TV broadcasts each partnership with rights-holder Fox. watch a sporting event. week throughout the group stage of the Facebook says its sports model He continues: “It’s hard to transform competition, followed by two games to date has been about “engaging sports with the . I mean, you can per week during the knockout phase. community experiences.” carry it over the internet, but what does The semi-finals and final as well as the It is a similar approach adopted that do for you? So think of it as the Europa League final will be nationally by Twitter, which has been offering internet doesn’t yet add much value to televised on the TBS or TNT channels. complementary services to rights- the sports experience.” All other matches and Europa League owners since its NFL experiment. It still Alex Kaplan, executive vice president, games will only be available to watch works with the NFL, showing breaking commercial at Eurosport Digital, is in live on the OTT service to paying fans. news, analysis and video highlights, plus agreement. Indeed he believes that Turner president David Levy said a 30-minute live show five a days a week the unique elements of sport – the live at the time: “As a company, we are during the season. viewing experience – will keep linear on committed to ensuring that the current It also streams out of market MLB top for now. ecosystem remains healthy, but we are and NHL games, and in August struck He tells Sportcal Insight: “One reason also prepared for what’s next. a live streaming deal with US stock car has been so successful is that “We went into this specifically ’s Nascar, with an in-car camera in non-live content really works well in thinking about an OTT product. There place for all 10 Monster Energy Nascar OTT. It’s binge viewing. But from a was just kind of an overall company Cup Series Playoff races. The main sports perspective, that is less relevant. strategy to innovate beyond the action was broadcast live and in full Yes there’s data and stats that can be traditional television ecosystem.” on NBC Sports Network, the national built in to a second screen experience, Turner is, of course, not alone in USA. broadcaster’s cable offering. but if a consumer watches soccer A week earlier ESPN’s owner, This year’s US PGA Championship, matches, they inevitably want to do so entertainment giant Walt Disney, one of golf’s four majors, was live- when it is on the best possible screen.” ramped up its plans to offer OTT streamed on Twitter and Facebook in The US broadcasters are reacting, services to consumers by acquiring a various territories. In the UK, organisers however. majority stake in BAMTech, the live decided against renewing a deal with Turner used the official 17 August streaming technology company. Sky, the dominant golf broadcaster, announcement of its acquisition of Having acquired a 33-per-cent saying they wanted a partner involving Champions League and Europa League shareholding in BAMTech last year for “all platforms.” rights from 2018-19 (the deal with the $1 billion, Disney agreed to pay $1.58 While there was a live stream on the Team Marketing agency was actually billion to secure an additional 42-per- Facebook page of Give Me Sport, the signed off in February) to reveal its cent stake in the company born out of UK-based youth-focused platform, intention to launch a stand-alone sports MLB Advanced Media. and by Twitter’s coverage of “marquee streaming service that will broadcast the groups,” a deal was surprisingly penned with the BBC, the public-service broadcaster. It was a sure sign that the market was not quite ready for a major property to go ‘all in’ in a key market. For the PGA of America, its tournament got more than two million viewers on the BBC. Linear, it seems, isn’t dead yet. Greenfield does not see Twitter as a major acquirer of rights, but believes it will thrive as sports go-to second screen. He explains: “Twitter doesn’t have the subscriber numbers, but it hits 100 million people worldwide on a daily basis. Everyone in the sports business should be thinking about a Twitter as a mobile-first destination for content. It’s like sports radio. It’s about conversation and engagement.” One player that the traditional broadcasters need not worry about is Netflix, after chief executive Reed Hastings categorically stated that the platform is not getting into live sports. He told this year’s media and technology Code Conference that 30 Media OTT

Bob Iger, Disney’s chief executive, On the reasons for the booming But a major exclusive OTT deal is said: “This acquisition and the launch success of OTT, Rushton replies: “It’s inevitable, according to Kaplan. of our direct-to-consumer services mark not about taking sport away from the “We have seen bigger properties an entirely new growth strategy for the TV… it’s ultimately about giving fans out there that have been playing on company, one that takes advantage of the choice and watching sport on their the margins, but offering non-exclusive the incredible opportunity that changing terms, where and when they want to. rights. Those leagues and properties are technology provides us to leverage the “And it’s not just about flexibility and interested in monetising their rights, but strength of our great brands.” accessibility either; OTT services are also making sure that as many fans as ESPN’s planned OTT streaming more affordable. Fans are fed up at possible have access,” he says. service will feature more than 10,000 the price of watching sport, especially “I’m quite confident, whether that’s events in its first year, including MLB when there are cheaper alternatives to next year or several years down the and NHL games and Grand Slam tennis. be found online and they don’t want to road, that if they feel the money is But it will not include NFL or NBA be charged an extortionate amount of there, and those platforms are at a point contests that are the big ratings drivers money to watch them. where they won’t be keeping viewers for ESPN’s cable channels. “Lastly it’s about content, and lots away from seeing their content then it’s So linear remains the driving force, at of it. OTT services don’t have the same only a matter of time.” least for now, according to Berke. restrictions as linear TV.” If and when that does happen, “Nobody in major sports is saying ‘I’m In , Eurosport had particularly with one of the major exclusively offering up my content only championed its acquisition of exclusive North American leagues, well that, for on OTT’. It hasn’t reached that level of Friday night rights as a Greenfield, spells doomsday scenario maturity, that level of popularity yet,” major win for Player, its OTT offering. for linear TV. he cautions. “But you’ll reach that point Yet before the season started, an “If you want to disrupt television where people will say all platforms are agreement was signed with HD+, a the single best way to do it is to buy equal, we want to be on all of them subsidiary of satellite operator SES, to all the big sports. If you do that TV simultaneously, and that point I think televise the games. In addition, talks shatters, there is nothing left. If Apple happens around the time when all these continue with cable operators to get the buys rights big contracts become available. games out on their platforms, while a from ESPN in 2021, if somebody buys “The priority is still where you are carriage agreement with Sky is not out , if any of these getting the most money from. And of the question if financial terms can tech giants want to literally bring linear they’re continuing to get the most be reached. television to its knees, then taking money from linear, whether that’s Simply put, the market was not quite sports away is the way to do it. That will broadcast, cable or satellite. They’ll still ready for pure OTT for such a major make TV bleed fast. It is the only thing look to maintain those for as long as you property as Bundesliga. keeping it together. possibly can.” And technical problems in the first “If Apple goes at sports, for example, However, it seems that for both few weeks of the season - DAZN’s initial and turns Apple Music into a bundle rights-owners and rights-holders, a NFL coverage in Canada and Premier that includes sports, I think TV is done. combination of linear and OTT is quickly League streaming in the German- The mass TV break point is in the early becoming the go to model. speaking countries suffered similar part of the next decade when all of DAZN chief executive James Rushton teething issues – will hardly fill the these sports become available.” tells Sportcal Insight: “Will major market with confidence. rights holders cut ties with traditional broadcasters completely? Probably not. Will there be a time where sport is only shown on OTT services? I highly doubt it. But, that’s the beauty of OTT; it’s complementary as well as competitive.” DAZN operates in Germany, Switzerland, , Canada and Japan, and Rushton says more markets are likely to come on board next year, with the location “depending on the environment. That includes the rights on offer, how connected a country is, how much they already use OTT services and what the pay-TV penetration is like.” In the German-speaking countries, DAZN holds exclusive Premier League rights, while the Japan business launched with a 10-year deal with domestic soccer’s J.League said to be worth Y210 billion ($1.91 billion), to be supplemented with Champions League coverage in the country next season. www.sportcal.com AUTUMN 2017 Sportcal Insight 31

THE REAL CONNECTED BROADCASTING REVOLUTION

By Simon Brydon experts at digital sport) laughed at name: OTT, which is an acronym for the idea. They could laugh at me, that ‘The Netflix of Sport’. Okay, bad joke, In 2002, I set up a business with a would be understandable, but to laugh but I am sure you’ve heard about the simple ambition. The company was at what seemed the most obvious thing launch of at least 10 ‘Netflixes of Sport’ called Cycling Television and it would in the world, even in 2003? All media recently. deliver professional cycling to a global content would one day be delivered The point is important: OTT delivery audience of cycling fans. over this thing called the internet now represents the slow and inexorable The rationale was straightforward: the and therefore TV, as the industry death of the old linear sports channel sport of cycling had a large global fan then understood it, was dead. If only model. Which means the old model base that was not served by traditional someone could sort out mobile… oh, wasn’t working as expected. And mainly linear TV broadcasters. In great swathes thank you Apple, so that’s now mobile it wasn’t working for the broadcasters. of the world some of the greatest sports sorted too. Or should I say they’re not giving up on events produced for TV distribution So that was the principle and, overall, it, but their customers are giving up on were not broadcast at all. In USA only we delivered on it, offering some 220 it and this has forced broadcasters to the Tour de France was broadcast live days of live cycling in 2006 and 2007. finally change. every day. We made mistakes for sure, but the Linear broadcasters’ ratings are falling In short, the broadcast media model business worked; it worked technically, and subscribers are cutting the so- did not work for fans or rights-owners. it worked commercially, it worked for called ‘cord’ in favour of OTT sport and The business was hardly radical. rights owners and it worked for fans. entertainment. This ‘cord-cutting’ is a We’d behave exactly like a traditional And if it worked in 2006 imagine how it mixture of: ‘cord-shaving’ (cost-cutting broadcaster: fully live plus highlights, no could work in 2017. the bundle); cord-cutting (severing compromise on live output because this Finally, the real revolution is here. The the cable/satellite totally); and, most was the internet and a subscription- and fundamental change is happening and dangerous, cord never-connecting. ad-funded model, so premium and free that throws up enormous challenges That’s a whole new generation brought content. for agencies, sponsors, rights owners up in the connected world, who have no I remember my first Sportel. Certain and, of course, broadcasters. Delivery need for the inflexibility and rigid cost broadcast professionals (no doubt now over internet now has a catchy new of cable or satellite TV. 32 Media OTT

Meanwhile, rights owners need to understand their media rights values better than ever before; they need to know their consumers… not just in their own markets, but globally. For broadcasters, the game just changed too. Smaller rights properties that can drive a significant volume of dedicated paying customers now have potentially more value than before, and some other blue-chip sets of rights might find this new world order difficult. There is a difference between casually watching Major market moves in the past year sport on a linear service because it is on have included: Perform’s DAZN launch and proactively going to buy it on an There are many examples of these in Germany, Japan and Canada; ESPN’s OTT service. Broadcasters need to find changes across global broadcasters; investment in MLB Advanced Media and large committed niche audiences that here, I am using ESPN as an extreme the creation of BAM Tech; Turner Sports can be aggregated into a volume play, case to illustrate this . ESPN and its OTT subscription platform to be as well as finding sports properties with operates on a cable affiliate model, launched in 2018, featuring Uefa rights mass appeal. meaning agreements with cable and and much more; NBC Sports’ launch of its How long before the English satellite operators that ESPN must OTT service NBC Gold; and the launch of Premier League sells globally direct be included in a percentage of all Eleven Sports in various markets. to consumers or sells globally to a media packages. ESPN gets $7.86 per We are seeing broadcasters selling company such as Amazon? In theory, subscriber per month, by far the most content direct to consumers on a new, the financial model works commercially for a channel. unprecedented scale. The restructuring better than the current distribution But from 2011, and a peak of 100 of Sky Sports in the UK with its channels model. Some of the potential numbers million subscribers, ESPN has fallen now being created in sports verticals are eye-watering in their scale. If the to 87 million subscribers at the end of (Cricket, Golf, Action, Football) is paving English Premier League’s sole remit is to Q1 2017. That’s still impressive, but on the way for selling individual niche return revenue to its stakeholder clubs current ESPN cable pricing that is a drop sports directly, rather than as a multi- then perhaps we’ll see some changes to of $1.225 billion a year. In 2014, ESPN sport linear offering. the model in the next sales cycle. agreed a $24-billion nine-year renewal And what of the Facebook, Google, Do certain rights owners such as of its NBA agreement. Since 2014, ESPN Amazon, Apple and Twitter? To some the EPL now need to develop a more has lost 9 million subscribers (a drop extent they’re doing a bit of fence- ‘hybrid’ model: a package of games from 96 million to 87 million). sitting right now. Yes, they’re in, but for broadcasters country-by-country, If ESPN budgeted in 2014 at circa 97 they’re largely playing their hands close as currently sold, and a reserved rights million subscribers and if it didn’t churn to their chests. Amazon’s small one- package to be sold globally direct to another single customer as of today’s year deal for a few Thursday night NFL consumer via OTT, either by the league date, it is now about $6 billion down games does not a strategy make. Still, itself or by one of the big global players? against projections to the end of the Amazon seems likely to be the most And what of the majority of sports NBA deal. aggressive, having recently acquired properties? Many smaller sports have So, firstly, ESPN with 87 million ATP rights in the UK. It can afford to been neglected by larger broadcasters subscribers at $7.86 a month is still experiment for now, having the cash and have already developed their own an impressive business. But clearly, reserves and market capitalisation which consumer service. There are decisions with billions of dollars of declining allows it to play the long game. ahead for everyone as to what is the revenues and rights owners’ ever-rising This revolution is fundamentally optimum commercial model: pay-TV, fee expectations, someone is going different from the past 30 years of pay-TV OTT subscription-only, direct-to- to be disappointed. It is clear that the and the past 15 years of ‘digital’ sports consumer, free-to-air, or any number of numbers are going in just one direction, broadcasting. For rights owners, leagues, permutations of the options. and consumers and their consumption federations and sponsors the dangers Agencies, rights owners and habits have been revolutionized. are enormous. Content needs to ‘wash broadcasters all need new commercial The simple fact is this: in a world of its face’ with paying subscribers, so models and they’re going to need internet and LTE / 4G / 5G connectivity, rights will start to develop specific values new skills and a new understanding of all parties face fragmentation against exact consumer demand on commercial and consumer realities to and disruption and, finally, sports either a national, regional or global basis. best serve their stakeholders. broadcasters have decided to pursue Sports broadcasters in the OTT world The last 15 years of connected sports OTT direct-to-consumer sports services need to know and understand various broadcasting has been a warm-up; now as their priority and not as a second complicated markets, including local is the time for the new world order to thought or small additional revenue consumer habits and cultures, but they emerge. stream. It also means that new providers also need to know what sports in which have launched to challenge the existing markets can drive how many paying Simon Brydon is a consultant with broadcasters. subscribers. Pitch International LLP wt---210x265mm_outline_07.pdf 1 2017-09-13 5:08:58

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BOXING CLEVER? Investors and marketers behind High-profile promoters and leading placed for success than the doomed executives from the broadcast and ‘Super Six’ series, held between the new World Boxing Super sports agency world gathered in New 2009 and 2011 but plagued by the Series have not been without York in March to unveil a product that withdrawal of several participants. their sceptics within the sport would “change the world of boxing.” Nonetheless, while those behind it Six frenetic months later, the World tread carefully around the comparison as they seek to reshape its Boxing Super Series made its debut to the Uefa Champions League and its commercial structure. But what in , complete with spectacular seemingly endless commercial success, lighting and a Champions League-style the World Boxing Super Series – chances of success? pre-match anthem. perhaps unfairly – seems destined to be The venture, launched by Comosa AG, judged on whether it can echo soccer’s a Swiss company founded in early 2015, premier competition and deliver healthy Martin Ross investigates. was years in the making, and brings media and sponsorship revenues together industry such as over three-season cycles (albeit at a Modern Times Group, boxing promoters lower level). Kalle Sauerland and Richard Schaefer, Fighters in the classes of former MP & Silva chief commercial and super classes are officer Roberto Dalmiglio and Highlight taking part in the inaugural edition, Event and Entertainment, the company comprising two concurrent elimination spun off from Team Marketing. tournaments, the draws for which were The simple (yet radical) format for made at ’s Grimaldi Forum the series has sparked criticism from in July. some of boxing’s diehards, while some The tight turnaround left Comosa in the sports business industry have and MP & Silva, the agency hired to questioned whether there will be a sell international broadcast rights, commercial return on investment on with challenges going to market, but the $50 million in prize money (and key deals were signed in the likes of other costs) as fighters seek to land the Germany and the UK, and MTG, as a Muhammad Ali . backer of the series, is committing to What is apparent is that the handling the broadcast production and stakeholders signed up to devise and showing the fights in the Nordic and commercialise the venture look better Baltic territories. www.sportcal.com AUTUMN 2017 Sportcal Insight 35

Roger Lodewick, who left Team Like the competition format, the opener in Berlin attracted 5,890 fans, Marketing to take up the role of chief broadcast ethos behind the series is while the - commercial officer, tells Sportcal Insight: clear. Deliver slick appointment to fight in Liverpool was far from a sell- “We started selling something from view TV throughout the year to ease out, but the presence of local Latvian a piece of paper which we’ve been scheduling headaches in a fragmented favourite has ensured a working on for a very long time and sport (encouraging long-term deals bumper crowd at the Arena. With a which is rocket proof. But it’s always in the process). The walkout time lowest ticket price of £35 for the Smith- the challenge to convince people of for headline fights remains the same Skoglund fight, organisers have food for something new and to convince them (11pm CET for European fights and thought over the necessary price point this is really the best of the best fighting 11pm EST for US fights), the associated to fill its venues. each other. It takes a bit of time, but shoulder programming is delivered to Attending a World Boxing Super having ProSiebenSat.1 and ITV now on broadcasters throughout the week and Series highlights some of the ground- board is a massive statement that those weigh-ins adhere to strict schedules. breaking changes implemented. big companies buy into this concept.” Nonetheless, the weight classes A rousing pre-fight video and anthem, The likes of Lodewick, Dalmiglio and currently offered have not enticed unmistakably evoking aspects of the Peter Nørrelund, MTG’s sports chief, certain markets, with rights in some Champions League, pre-empts the have helped to sculpt the commercial notable territories remaining unsold entry of the boxers. A circle of lights offering, and the close involvement as the series began and a free internet surrounds the ring and seats are set of experienced promoters like Kalle stream offered by organisers instead (in back to leave space for the gladiatorial Sauerland has been key in providing USA, Japan, France, and ). entries and podiums on which both sporting nous and working through However, a key US deal is set to be boxers stand. The set and grandiose boxing’s matrix to sign up 16 fighters rubber stamped and consideration is lighting is de-rigged after each fight and across nine promoters (plus reserves). being given to a lower weight class in moved on to the next venue. Sauerland, the son of renowned season two to attract Asian broadcasters, It’s a ‘big global concert tour’ or promoter Wilfried, is well versed in while the Latin American market is ‘Game of Thrones meets boxing’, hyping up a fight and adopts the same another target (currently only is according to Sauerland. approach when discussing the World represented among the fighters). A radical shake-up of how boxing Boxing Super Series, a project he says Streaming of the Berlin opener has been presented, but will it lead to has been met with cynicism among was also available in the UK after ITV commercial success? And just when is his peers as to whether it will reach a released the digital rights, and attracted it fair to judge the measure of success second season. more than 40,000 viewers despite just (or failure) given free-to-air broadcast He stresses: “The broadcaster a few hours’ notice. Impressive figures exposure key to any hefty sponsorship is response has been unbelievable. They that led the website to crash despite still being built up? have all been waiting for a format. A extra bandwidth being bought. TV Adding a third weight class in broadcaster can’t [normally] rely on viewing figures were not as remarkable season two will be a clear sign of the boxing [for scheduled programming], on – Sat.1 pulled in an audience of 1.3 commercial model taking off, the output deals and on getting that regular million (and 7.2-per-cent share) in stakeholders feel. consistency in its programming because Germany – but with such a short lead-in Dalmiglio is bullish when asked about boxing by its nature is an opportunistic time that comes as no surprise and when the $50-million prize fund and sport… ratings are sure to improve. costs can be recouped, saying: “We have “…[but] Forget Super Bowl, forget the The - very strict rules respecting the budget. FA Cup final, the Champions League final. In terms of revenues, nothing touches boxing when it works. There’s no product in the media world – on the entertainment or sporting side – that touches boxing.” A revenue share on pay-per-view sales in key markets will drive much of the series’ commercial income, but the ticketing sales also promise to provide sizeable returns as and when the property takes off. “You tell me something else that gets you $75 million gate receipts from 16,000 people,” notes Sauerland in clear a nod to recent money-spinning bouts fought by Floyd Mayweather. He points to “the biggest boxing deal” he has ever seen in (with Tivibu, Türk Telekom’s digital pay-TV platform) as evidence that broadcasters grasp the World Boxing Super Series concept. 36 Events Boxing

We have a three-year plan that is very clear. In all honesty, we believe that from the second season you could see good business results, meaning that if we go to the books, there is a positive Ebita. “If you look at the development of the media product and how it is embraced within the media environment and how we can expand the brand then I think year one will already be a good one.” The challenge will be persuading broadcasters and sponsors alike to sign long-term deals to commit to the series, especially with TV networks accustomed to signing up only for individual bouts featuring fighters of local interest. “We’re looking for partners who buy into boxing being a business model,” Lodewick remarks. “If you want to do that then you’ll do deals where a partner says they love the World deals for the second fight in Liverpool. sport and not take elements from it,” Boxing Super Series and they want to “We don’t want to devalue our while Lodewick admits you’d be “silly have it for a multiple amount of years. I product by selling it on the cheap,” not to look at top brands like the EPL, definitely see that happening. After the Lodewick notes. “As soon as potential Champions League or UFC,” but warns quarter-finals, I think we’ll start having partners see what this is, it will generate you can’t just replicate what works in discussions about the next couple of definite interest. The commercial soccer into boxing. seasons, because broadcasters will be concept is for long-term partners, not The Dutchman continues: “You learn able to see the story-telling element in just because of the financial element, from all the properties that are out which you can invest not only financial but also for the overall promotional there. Obviously if I look at my own but also editorial means.” element and having partners that see background then of course a lot of the Dalmiglio reveals that, in certain that this is different than [sponsoring] things I try to do is from my experience situations, Comosa has recommended individual fights.” at the Champions League. just one-year deals so as to protect the So expect a mix of local and “We’re the World Boxing Super Series true value of the property. centralised agreements in season one and what we’d like to promote is that He says: “There is a total trust in the as Lodewick and his team strive to we’re the greatest prize in boxing. quality of the product and we strongly stick to lofty prices attached to the top “We are focusing this season on two believe from a business perspective sponsorship category. weight classes, next season potentially that there is a lot to do around boxing. And what of the Champions League three weight classes, but there are 17 We are delivering a media product association? Marketers and fighters alike weight classes in boxing. We are sitting but we want to be careful in the way in have dropped in the name of sport’s a little bit above the current ecosystem which we monetise and not really rush. commercial behemoth to drive interest and that is what the Champions League We have a very strong shareholding in the series, and the similarities in does as well.” structure and they totally trust the job presentation are undeniable. Two fans Dalmiglio notes: “We don’t intend to that has been put on the table. We talking to me in Liverpool ask why the replicate any type of set-up. Of course don’t run behind easy money.” branding looks like European football’s we want to deliver the best. What we The venture is certainly not alone in illustrious competition. believe is that boxing has been a little launching without sponsorship inventory The executives behind the series shy bit mistreated in the past. Our answer sold (look no further than the European away from too much of a direct link, is creating a proper media product that Rugby Champions Cup’s search however. And you can see why. will deliver the best of the best.” for partners) – and, in fairness, the The topic is a sensitive one given Having gone live in September with sponsorship sales can only be evaluated Highlight Event and Entertainment was gaps in broadcast distribution and a after the broadcast platform is spun out of Team Marketing to allow paucity of sponsors, the series is unlikely properly established. Highlight to pursue other sporting to have shaken off all of its critics. But Three tiers of centralised sponsorships projects and protect itself against ever the time has not yet come to judge a have been devised, but only StubHub, losing its Uefa business. While helpful fledgling project that is radical in its which is paying a rights fee and in attracting attention, the comparison approach and supported by years of providing ticketing services, had been also brings with it perhaps unrealistic commercial preparation. signed up (at the third tier) as the expectations of weighty commercial Convincing some broadcasters, competition began. Two local sponsors sums flowing in to the series over three- sponsors and traditionalists that it is – a German holiday booking website season cycles. “changing the world of boxing” will and a Ukrainian betting operator – were Sauerland feels that it would be take longer. signed up for the Berlin premiere only, “foolish not to look at the Champions but organisers opted against such local League with its most successful IP in ONE SERIES.NINE CITIES. ELITE FENCING BROADCAST TO THE WORLD FOIL EPEE SABRE TURIN 1- 3.12.17 DOHA 8 -10.12.17 CANCUN 15 -17.12.17 ANAHEIM, CALIFORNIA 16 -18.3.18 BUDAPEST 23-25.3.18 30.3.18 – 1.4.18 SHANGHAI 18-20.5.18 CALI 2 5 - 2 7. 5 .18 1-3.6.18

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MLB: PITCHING FOR LONDON SUCCESS From caps, to summer festivals to live action, Charlie Hill, Major League Baseball’s managing director for Europe, Middle East and Africa, outlines how the MLB is enhancing its presence in the region. Jonathan Rest reports.

This autumn, American football’s NFL Staging matches overseas is nothing The attraction is mutual with London is staging a record four regular-season new for MLB, with Asia, mayor Sadiq Khan having met with both games in London. In January 2018, the and Australia having all played host, Manfred and the owner of the New York Celtics and but it has yet to take the plunge in Mets to push the city’s credentials while will descend on the UK capital for the Europe, which does not have the same on a trip to USA 12 months ago. NBA’s eighth game at the O2 arena. baseball tradition. In late July, the league unveiled plans A year later MLB is, finally, expected MLB, under Manfred’s rule, has been to stage 13 regular-season series in cities to join the party. in regular talks with representatives outside of North America between 2018 Since taking the reins in early 2015, in London about staging regular- and 2021. Mexico City, and MLB commissioner Rob Manfred has season games - the the were on the list, made no secret of his desire to follow has even been sized up, literally - but as, to the delight of Hill, was London. in the footsteps of the NFL and NBA plans to play those matches this year A series has been pencilled in for June by growing the league’s brand, with were shelved due to talks over a new 2019 and it will return a year later, with the designs on Europe, specifically London. collective bargaining agreement as well likelihood that the fixtures will become a as spring’s . regular sight on the UK sporting calendar. www.sportcal.com AUTUMN 2017 Sportcal Insight 39

Much of the work in getting those more than any of the other major North something we look at seriously. games on the discussion table has come American leagues, sees itself as a “We continue to build out an from MLB International’s London office, fashion brand. aggressive international plan to bring and EMEA headquarters, which Hill has It has operated a store in London’s competitive games to new parts of headed up since December 2015. Covent Garden tourist trap, baseball’s the world.” It’s a role that encompasses media first standalone retail space in Europe, As it stands, London will get its first sales, licensing, sponsorship, special for the past year, selling caps, jerseys glimpse of competitive games in the events, and relationships with local and memorabilia of all 30 teams, summer of 2019. baseball federations and governments and in the days leading up to MLB So, does MLB feel like it is playing across EMEA. Battlegrounds launched an online catch-up with its major league brethren? It’s perhaps fitting that MLB’s store in Europe, the league’s first “We don’t consider that our London office is situated in Holborn, or geographically-focused online store. competition comes from major US sports ‘Midtown’ to give it the Americanised It expects to replicate that business leagues, specifically,” Hill says. “Most name dreamed up by marketers a few model throughout EMEA. sports are – or aspire to be – global, and years back to attract businesses. A well-worn phrase from NBA that’s the same with MLB. We have to Hill says it is “the worst kept secret” commissioner Adam Silver is that consider our proposition in relation to that MLB wants games in London, but “probably 99.5 per cent of our fans are all sports and entertainment properties stresses the importance of taking the never going to have the opportunity to outside of the world of sport.” right approach at the right time. go into an NBA arena.” “Again, I would reiterate that we He tells Sportcal Insight: “The central With that in mind, how can MLB need to be open-minded to the idea idea to how we approach this is to avoid hope to capture and retain a that what makes us a compelling forcing a foreign sport on a new market. European audience? proposition in US, or Japan, or Mexico First, we have to understand the sporting Hill says: “Live content is always going might be different in UK. Same for any landscape and culture of a new market to be key to engaging a new audience. global business, we have to look at and ask ourselves how the sport we know But timing of games in the US is all of the aspects of what we provide and love from the US makes sense in the obviously an issue, so adapting formats and recognise what is most relevant in UK, for example. We have to be willing to create compelling live content – like certain markets.” to adapt to engage a new audience.” the Derby in Hyde Park – is One innovative way to engage a new audience occurred in London’s Hyde Park on 4 July – Independence Day, of course – with ‘MLB Battlegrounds’, a free festival of food, music and baseball. To give it a local flavour, England cricketers Jos Buttler and joined retired MLB stars including Carlos Pena, Shawn Green and Cliff Floyd in a ‘’ hitting contest - a battle to score the most home runs against the clock. Hill called it an “exciting statement of intent for Major League Baseball in Europe” and the numbers suggested it was a success: one million online viewers worldwide for the home run derby and more than 16,000 people attending the event in Hyde Park. “It was a valuable opportunity to showcase aspects of our sport and the culture of baseball,” Hill reflects. “We learned a lot about how to build a relationship with new audiences outside the US and we will continue to bring new, innovative experiences to audiences around the world. “Events and activities like the event in Hyde Park are important learning opportunities for us to see what aspects of our sport help build a connection with a new, uninitiated audience.” Off the diamond, the league has been quick to tap into the merchandise interest in its franchises. MLB, perhaps Michael Steele 826734680, 826745726, David Ramos 827819790, Stephen McCarthy 839696656, Charlie Crowhurst 839533748

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Meet the Elite

SportS marketing & media convention

SPORTCAL_210X265.indd 1 07/04/2017 14:41 42 Sponsorship Tennis Brands

When it comes to endorsement deals for the top 20 men’s and women’s players, who’s acing it and who needs to work on their returns?

By Matt Nichols and Christian Fizia www.sportcal.com AUTUMN 2017 Sportcal Insight 43

When comparing all deals for the men’s and women’s top lt does not have any high-profile tennis athlete 20 tennis players, the men have 37 per cent more than the endorsements, however, instead focusing on sponsoring women. On average each member of the men’s top 20 has six tournaments. sponsors, compared with less than five in the women’s section. Alcohol brands, traditionally heavy sponsorship spenders, are This is unsurprising considering that the men’s ATP Tour still also absent from the top 10, and are only responsible for three retains a higher profile worldwide than the women’s WTA Tour deals, all with male players. The presence of supplements and in terms of TV and media coverage. sports nutrition and fashion brands might explain the absence: tennis has a reputation for grace and athleticism, not a natural MEN’S TOP 20 VS WOMEN’S TOP 20 fit for some alcohol sponsors. Moreover, as an individual, not a , a player might not wish to be associated with alcohol as it might deter other brands. 126 MEN’S TOP 20 BUSINESS SECTOR WITH BRANDS WITH MOST WOMEN’S TOP 20 THE MOST DEALS DEALS 92 86 BUSINESS SECTOR DEALS BRAND DEALS

SPORTS EQUIPMENT 41 NIKE 15 59 ATHLETIC 40 WILSON 15 22 37 FINANCE 12 30 CARS 17 10 WATCHES 15 HEAD 6 FASHION 10 ROLEX 6 SUPPLEMENTS 6 6 TOTAL NUMBER NUMBER OF NUMBER OF & SPORTS NUTRITION OF DEALS BRANDS BUSINESS LACOSTE 4 SECTORS CONSUMER ELECTRONICS 5 PEUGEOT 4 SOFT DRINK 5 ASICS 3 The picture is the same when looking at the number of COSMETICS & TOILETRIES 4 brands: there are 46 per cent more brands sponsoring the EVIAN 3 men’s top 20 than women’s. It is interesting to note that Japan’s Nishikori and BRANDS ARE LOOKING TO THE NEXT GENERATION Switzerland’s Wawrinka come out ahead of leading Perennial sponsorship big hitters Nike and specialist tennis players like Roger Federer and Serena Williams in terms of kit manufacturer Wilson are the most active brands, with total deals. Nishikori has been able to use his popularity in his Adidas rounding out the top three. Four car brands are also in home country, as well as a Japanese sponsorship culture that the top 20, along with two watch brands. accepts a high number of sponsors, to attract 16 sponsors Major tournament sponsors are prominent in this list as in total, 10 of which are Japanese brands. Similarly half of they regularly use athlete endorsements to dovetail with their Wawrinka’s 12 sponsors are Swiss. This trend is also present in major events sponsorships. For example, Jaguar has used its the woman’s game: 50 per cent of Petra Kvitova’s eight deals endorsement of Andy Murray to promote its partnership with are with Czech brands. the Wimbledon tennis tournament. Similarly, Kia has used Nadal in the activation of its deal with the . PLAYERS WITH THE MOST DEALS In total, 11 of the most active brands across both the men’s and women’s top 20 are currently sponsors of one of the four PLAYER SPONSORSHIP DEALS tennis grand slams. KEI NISHIKORI 16 In the men’s game, with the big four of Federer, Nadal, Djokovic and Murray, plus Wawrinka, all aged over 30, brands STANISLAS WAWRINKA 12 are starting to look to the next potential great of the game. ROGER FEDERER 10 Out of all the brands, Peugeot has been the most 9 prominent in supporting new tennis talent. The French car SERENA WILLIAMS 8 manufacturer, as part of its ‘Next Generation, New Sensations’ PETRA KVITOVA 8 campaign has sponsorship agreements with Alexander Zverev, David Goffin, Lucas Pouille and Pablo Carreno Busta, all in the WHO’S ACTIVE AND WHO’S MISSING? top 20, and all aged between 20 and 26. There are some notable omissions. Despite the travel While brands are looking to the future in the men’s game, requirements of a professional tennis player, there is no place they are missing a trick in the women’s game. Eight of the for airlines. This might be due in part to the dominance of top 20 women’s players have only three sponsors or fewer. Emirates in the sport. It is the main sponsor of the ATP World The women’s game is not dominated like the men’s game by Tour, as well as a sponsor of the Australian Open, French the same set of players every year, and by choosing the right Open and US Open, making it more difficult for another airline athlete, brands could gain worldwide exposure at a lower cost brand to cut through to a mass audience. than sponsoring a male player. 44 Sponsorship Tennis Brands

Although she only has four deals, WHO’S SUPPLYING WHOM? beaten US Open finalist Madison Part of the reason that athletic and brands are so prevalent in Keys provides one of the biggest tennis sponsorship is that athlete supplier deals in tennis can be broken down into opportunities for sponsors, as she is three sub-sectors: kit, and racket. American, with the two most high-profile Each of these three sectors provide brands with an opportunity for year-round, US tennis players, the Williams sisters, worldwide activation. Moreover, the individual nature of the sport means much approaching the end of their careers. of the media coverage is directed towards the players, offering brands greater Brands partnering with Keys could be exposure if their client is kitted out head-to-toe in their gear. in line to receive an increased level of exposure when they become the focus of TOP 20 MEN’S SUPPLIERS USA’s tennis media coverage. RANK MEN NATIONALITY KIT SHOES RACKET Likewise, Jelena Ostapenko, the 1 Rafael Nadal Spanish Nike Nike Babolat 20-year old Latvian ranked 12th in the 2 Andy Murray British Under Armour Head rankings, could be a target for new sponsors as the youngest player in the 3 Roger Federer Swiss Nike Nike Wilson top 20. Ostapenko won this year’s French 4 Swiss Yonex Yonex Yonex Open to become the first player from 5 Novak Djokovic Serbian Lacoste Adidas Head to win a Grand Slam, and the first 6 Alexander Zverev German Adidas Adidas Head unseeded player to win at Roland Garros 7 Marin Cilic Croatian Head since 1933. Her stock is high. 8 Austrian Adidas Adidas Babolat 9 Grigor Dimitrov Bulgarian Nike Nike Wilson 10 Kei Nishikori Japanese Uniqlo Nike Wilson 11 Milos Raonic Canadian New Balance Wilson 12 Jo-Wilfried Tsonga French Adidas Adidas Babolat 13 Roberto Bautista Agut Spanish Lacoste Mizuno Wilson 14 David Goffin Belgian Asics Asics Wilson 15 John Isner American Fila Fila Prince 16 American Nike Nike Babolat 17 Australian Nike Nike Yonex 18 Tomas Berdych Czech Adidas Adidas Head 19 Pablo Carreno Busta Spanish Joma Wilson 20 Lucas Pouille French Adidas Adidas Prince

TOP 20 WOMEN’S SUPPLIERS RANK WOMEN NATIONALITY KIT SHOES RACKET 1 Karolina Pliskova Czech Fila Fila Babolat 2 Simona Halep Romanian Adidas Adidas Wilson 3 Garbiñe Muguruza Spanish Adidas Adidas Babolat 4 Elina Svitolina Ukrainian Nike Nike Wilson 5 Danish Adidas Adidas Babolat 6 German Adidas Adidas Yonex 7 British ASICS ASICS Babolat 8 Svetlana Kuznetsova Russian Qiaodan Nike Head 9 Venus Williams American EleVen Nike Wilson 10 Dominika Cibulkova Slovakian Lacoste Nike Babolat 11 Agnieszka Radwanska Polish Lotto Lotto 12 Jelena Ostapneko Latvian Adidas Adidas Wilson 13 Kristina Mladenovic French Adidas Adidas Wilson 14 Petra Kvitova Czech Nike Nike Wilson 15 Serena Williams American Nike Nike Wilson 16 Madison Keys American Nike Nike Wilson Lucas Pouille 17 Latvian Yonex Yonex Yonex celebrates his third 18 Russian Nike Nike Babolat round victory in the 19 French Nike Nike Yonex 2017 US Open 20 Australian ASICS ASICS Yonex

A broader analysis can be found at www.sportcal.com/Insight/Sponsorship www.sportcal.com AUTUMN 2017 Sportcal Insight 45

KITTING OUT THE ELITE Ten different brands are active in Madison Keys during her the men’s top 20, nine in the women’s Women’s Singles finals match section, and a total of 13 different of the 2017 US Open brands are active across the two rankings. Adidas and Nike dominate, each accounting for 28 per cent, while the remaining 44 per cent of kit deals comprise 11 different brands, with seven of those having just one kit deal. Adidas has deals with the two youngest players in the top 10, Zverev and Dominic Thiem, both tipped to be the ‘next big thing’, while Nike has established partnerships with ageing stars Federer and Nadal. The long-term nature of these partnerships has led to both players using their own logo in conjunction with the brand on various ranges. EleVen, the clothing brand owned by Venus Williams, is the only player-owned brand in the analysis. Under Armour has established itself as one of the largest makers in recent years, but despite its growing presence elsewhere, it has been slow to sign tennis athletes. Murray is its sole representative in the top 20 rankings. The Scot moved from Under Armour’s rival Adidas in 2015, citing a focus on innovation from Under Armour to help improve his training and performance as the motivation. Given the individual nature of tennis, as well as its high profile and ambassadors that serial winners. TOP 20 MEN’S AND WOMEN’S mass appeal, tennis players are in a For the brands themselves, it is no KIT SUPPLIERS unique position to enhance their own surprise that those that have a natural personal brands more than perhaps affiliation with tennis and performance ADIDAS 11 other athletes in predominantly team are the most visible, with Wilson, sports. One successful run in a grand Nike and Adidas all having a strong NIKE 11 slam can be a career-defining moment, presence among the top 20 players. both on and off court. The opportunities But it is also, perhaps, a reflection of ASICS 3 afforded to players as brand the audience that follows tennis that FILA ambassadors mean there are some very fashion brands such as Uniqlo and 3 lucrative opportunities for those players Lacoste feel comfortable being involved LACOSTE 3 to cash in on success. in endorsement deals in tennis, as In the field of athlete endorsements, opposed to any other sport. YONEX 2 the men have the edge on their female What is perhaps surprising is the lack counterparts, thanks to the higher levels of ‘category’ partners for the athletes ELEVEN 1 of exposure offered. However, in a trend outside their equipment suppliers. that seems to reflect the wider sporting This suggests that there is still a great JOMA 1 world, the women’s game is finally being deal of untapped potential for athlete seen as providing real, tangible benefits endorsements, something that the next LOTTO 1 to brands that enter into partnerships generation of athletes could seek to with the athletes. maximise through new digital and NEW BALANCE 1 For the top five female players, the social channels. QIAODAN number of endorsements is a direct 1 reflection of their success in the sport, *ATP and WTA rankings correct as of the start of UNDER ARMOUR 1 showing that brands are now looking for the US Open on 28 August, 2017. ADVERT

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48 Index Sports calendar

Key information on the events, the people and the deals driving sports business, all in one easy reference section. For up-to-the minute information, visit www. sportcal.com and subscribe to one of our packages. IndexCALENDAR 48 SPONSORSHIP 49 MEDIA DEALS 50 EVENTS 51 MARKET MOVES 52 CONFERENCES 53 Sports calendar DATE SPORT EVENT LOCATION TV DISTRIBUTOR ORGANISER

15 - 22 Archery Hyundai World Archery Mexico City, World Archery Federacion Mexicana De Championships 2017 Mexico Federation Tiro Con Arco (outdoor)

OCTOBER 18-22 Cycling - European Elite Track Cycling Berlin, European Cycling Union German Cycling track Championships 2017 Germany Federation

20-22 Liebherr Men's World Cup Liege, ITTF, Lagardère Sports, Royal Belgian Table 2017 SECA World Tennis Federation

08-12 eSports eSports World Busan, International e-Sports International e-Sports Championships 2017 Korea Federation Federation

Trampoline Trampoline and , International Bulgarian Trampoline NOVEMBER 9-12 World Championships 2017 Federation Federation

18-19 Canoeing ICF Ocean Racing World International Canoe Hong Kong Canoe Championships 2017 Federation Union

28 Nov – Weightlifting World Weightlifting Anaheim, Lagardère Sports USA Weightlifting 05 Dec Championships 2017 USA

30 Nov – Games IWAS 2017 Vila Real de International Wheelchair International Wheelchair 06 Dec Santo Antonio, & Amputee Sports & Amputee Sports Federation Federation

27 Nov – Men's World Team Marseille, Total Sports Asia French Squash 03 Dec Championships 2017 France Federation

01-17 Women's World Handball Various, BeIN Media Group, German Handball Championships 2017 Germany Pitch International Federation

01-09 Floorball Women's World Bratislava, International Floorball Slovak Floorball

DECEMBER Championships 2017 Federation Association

05-06 Taekwondo World Taekwondo Team Abidjan, Spring Media Ivory Coast Taekwondo Championships 2017 Ivory Coast Federation

14-17 Table tennis ITTF Seamasters World Tour Astana, ITTF, Lagardère Sports Table Tennis Federation Grand Finals 2017 of the Republic of Kazakhstan

STAY UPDATED. DAILY CALENDAR UPDATES www.sportcal.com/calendar. www.sportcal.com AUTUMN 2017 Sportcal Insight 49 Sponsorship deals

Dominant RS22BN $700M C$800M brands in Vivo’s successful bid to Reported value of Estimated value of tennis, p42 remain IPL title sponsor Adidas’ extended Scotiabank’s 20-year for the next five years six-year deal with MLS deal for naming rights to current Air Canada Centre

SPORT EVENT/TEAM/ SPONSOR CATEGORY TERRITORY PERIOD ORGANISATION

CRICKET Magellan Financial Services Australia 2017-18 to 2019-20 CRICKET Vivo : India 2018-2022 Mobile GOLF European Tour and 2018 Emirates Travel: Airlines Europe 2018-2021 Ryder Cup MOTOR Mercedes Formula 1 Petronas Energy & Utilities: Oil & Global 2019 onwards RACING Team Petrol MOTOR Allianz Financial Services: Global 2017-18 to 2021-22 RACING Insurance OLYMPICS Olympic Games Intel Technology: Computers Global 2017-2024 & Software OLYMPICS PyeongChang 2018 KEPCO Energy & Utilities South Korea 2018 Olympic Winter Games OLYMPICS Beijing 2022 Olympic Yili Food: Dairy China 2022 Winter Games English Premiership Aviva Financial Services: England 2017-18 Insurance SOCCER Euro 2020 Volkswagen Automotive: Cars & Europe 2020 Trucks SOCCER Uefa Europa League Kia Automotive: Cars & Europe 2018-19 to 2020-21 Trucks SOCCER Major League Soccer Adidas Apparel: Athletic North 2019-2024 America SOCCER FA Cup Emirates Travel: Airlines England 2018-19 to 2020-21 SOCCER Liverpool Western Union Financial Services England 2017-18 to 2021-22 SOCCER Tottenham Hotspur Nike Apparel: Athletic England 2017 onwards TENNIS US Open IBM Technology: Computers USA 2017-2021 & Software TENNIS Wimbledon Evian Beverages: Water UK 2018-2022 VARIOUS Air Canada Centre Scotiabank Financial Services: Canada 2018-2038 Banking

ONLINE: Up-to-the-minute information on 75,000 sponsorship deals and 15,000 brands at your fingertips at www.sportcal.com/sponsorship 50 Index Media deals Media deals €367M $2.55BN £1.1BN €250M Annual value of BeIN Sum paid by Star Value of Sky and BBC’s Paid by ARD and ZDF in Sports’ Champions for global IPL rights deals for England home Olympics sub-licensing League and Europa over five years internationals & domestic deal from 2018 to 2024 League deal in Spain cricket (2020 to 2024)

SPORT EVENT BROADCASTER/ TERRITORY PERIOD AGENCY ARCHERY World Championships NBC Sports Network USA 2017 to 2020 (Outdoor)

AMERICAN NFL DAZN Canada 2017-18 FOOTBALL

ATHLETICS IAAF World Athletics Series EBU* and ESPN* Europe and sub-Saharan 2018 to 2023 Africa

BASKETBALL FIBA competitions StarTimes Sub-Saharan Africa 2017 to 2021

CRICKET England home internationals Sky and BBC UK 2020 to 2024 and domestic cricket

CRICKET Indian Premier League Star India Worldwide 2018 to 2022

CYCLING Tour de France EBU* Europe 2020 to 2023

EQUESTRIAN FEI events UPC Switzerland Switzerland 2017 to 2022

GYMNASTICS FIG World Cup events 2017 to 2020

ICE HOCKEY Kontinental Hockey League Lagardère Sports* Worldwide (excluding , 2017-18 to 2020-21 and Kazakhstan)

OLYMPICS Olympic Games ARD and ZDF Germany 2018 to 2024

OLYMPICS Olympic Games Kwesé Sports Sub-Saharan Africa 2018 to 2024

RUGBY UNION European Rugby Champions BT Sport UK and Ireland 2018-19 to 2021-22 Cup and Challenge Cup

SNOOKER World Snooker events Rigour Media China 2017 to 2027

SOCCER Australian A-League Network Ten Australia 2017-18 to 2018-19

SOCCER Premier League ESPN Brazil 2019-20 to 2021-22

SOCCER Coupe de France France Télévisions and France 2018-19 to 2021-22 Eurosport

SOCCER Uefa Champions League and DAZN Austria, Germany 2018-19 to 2020-21

SOCCER Uefa Champions League Italy 2018-19 to 2020-21

SOCCER Uefa Champions League and SRG SSR Switzerland 2018-19 to 2020-21

SOCCER Uefa Champions League BeIN Sports Middle East and North Africa 2018-19 to 2020-21

SOCCER Uefa Champions League BeIN Sports Spain 2018-19 to 2020-21

TENNIS US Open ESPN Australia 2017 to 2021

VOLLEYBALL CEV European Germany 2017 to 2021 Championships

*Distribution/agency deal STAY UPDATED. DAILY UPDATES ON MEDIA DEALS www.sportcal.com/media. www.sportcal.com AUTUMN 2017 Sportcal Insight 51 Events 1900 €3.2BN 8 $4M The first edition of the Total economic impact of the Times Lake Placid, USA The hosting fee for World Figure Skating 2015 Rugby World Cup in has hosted the Bobsleigh AIBA World Boxing Championships England & Skeleton World Championships Championships

BIDDING SPORT EVENT DATE BIDDERS BID STATUS AWARD DATE OCTOBER GAMES Games 2022 Washington DC, USA Candidate cities 30 October , Mexico Hong Kong NOVEMBER RUGBY Rugby World Cup 2023 France, Ireland, South Africa Candidates 15 November

EQUESTRIAN FEI World Equestrian Games 2022 Samorin, Slovakia Candidate city 21 November DECEMBER

BASKETBALL FIBA Basketball World Cup 2023 Russia; Turkey; Japan, & Confirmed bids 3-6 July ; &

AWARDED SPORT EVENT EVENT DATE WINNING BID BID AWARD DATE

BASKETBALL EuroBasket Women 2019 & 24 June Bobsleigh & Skeleton World BOBSLEIGH Championships 2021 Lake Placid, USA 28 June

BOXING AIBA World Boxing Championships 2019 Sochi, Russia 24 July

BOXING AIBA World Boxing Championships 2021 New Delhi, India 24 July

FIGURE SKATING World Figure Skating Championships 2020 Canada 05 June

GYMNASTICS FIG Aerobic World Championships 2018 Guimaraes, Portugal 01 Aug

GYMNASTICS FIG Trampoline World Championships 2018 St Petersburg, Russia 01 Aug

GYMNASTICS FIG Trampoline World Championships 2019 Tokyo, Japan 01 Aug Luge World Championships LUGE Artificial Track 2021 Calgary, Canada 17 June

ORIENTEERING MTB 2019 05 July Combined World Sprint & Allround SPEED SKATING Speed Skating Championships 2020 Salt Lake City, USA 05 June

SWIMMING FINA World Championships (25m) 2022 Kazan, Russia 17 July

SWIMMING FINA World Championships (25m) 2024 Budapest, 17 July

TABLE TENNIS ITTF World Tour Grand Finals 2017 Astana, Kazakhstan 14 Aug

ONLINE: Our comprehensive, constantly updated global sports events database is available to subscribers at www.sportcal.com/events 52 Index Market moves Market moves , the organiser of the that she was chief commercial and marketing Formula 1’s annual tour of professional competitions, hired officer at England’s Union. Murray Barnett Sophie Goldschmidt as chief executive and Carr was senior vice-president of international is interviewed p20 Joe Carr as chief strategy officer and head of and content at UFC, heading up its global international. Goldschmidt joined from CSM expansion strategy and managing UFC Fight Sport & Entertainment, the UK-based sports Pass, the OTT service. marketing company, where she had been group makes its debut at the 2020 Olympic managing director since March 2016. Prior to Games in Tokyo.

AGENCIES Jon Dutton was named chief executive Julio Maglione, Marius Vizer and MP & Silva, the international sports of the organising committee for the 2021 Chungwon Choue were re-elected as agency, named Chris Lencheski as head World Cup in England. presidents of the international federations of global sponsorship. He was previously Dutton, director of projects and people of aquatics, judo and taekwondo, vice-chairman and chief executive of IRG at the , takes on respectively, to 2021. Vizer and Choue Sports + Entertainment, a subsidiary of his new role in February. Dutton, who led were returned unopposed, while TPG Speciality Lending, which oversaw England’s bid to host the tournament, Maglione comfortably saw off a challenge more than 1,150 motor sports, live was operations director for the 2013 from Paolo Barelli, the head of the sport’s entertainment and corporate events RLWC, also staged in England. European governing body. Choue has is USA. been in power since 2004, Vizer since Octagon, the USA-based international FEDERATIONS AND LEAGUES 2007 and Maglione since 2009. sports and entertainment marketing ONE Championship, the mixed martial World Rugby, the sport’s international agency, appointed Daniel Cohen to head arts series in Asia, appointed Jack Lim as governing body, hired Tom Hill as chief up its new media rights consulting unit. He chief commercial officer. He had held the commercial officer to replace Murray had been MP & Silva’s managing partner, same role at , the - Barnett, now of motor racing’s Formula senior vice-president for the Americas. based multimedia conglomerate that 1. Hill had spent almost a decade at Wang Dong quit as vice-president of holds ONE Championship media rights in Manchester United in roles such as global Ali Sports, the sports arm of the Chinese the country. head of sponsorship sales and global e-commerce giant Alibaba, to join Roger Goodell signed a new five-year head of partnerships and operations. Desports, the Chinese sports marketing contract to remain as commissioner of He previously worked for the RFU and agency. Wang joined Ali Sports in 2016 American football’s NFL to 2024. Goodell leading English club Saracens. after 12 years at CCTV, the Chinese state has been commissioner of the NFL since broadcaster, where he worked as 2006 and is understood to have made a OLYMPICS a presenter. total of $212.5 million in his first 10 years The International Olympic Committee Leading eSports executives at WME- in the role. elected eight members at its session in IMG left the combined Hollywood talent Ivan Khodabakhsh left his position as Lima in mid-September: Baklai Temengil agency and sports and entertainment chief executive of golf’s Ladies European (Palau); Kristin Kloster Aasen (); company in late July to launch a new Tour in August. He joined in 2013 from Khunying Patama Leeswadtrakul venture in the developing sector. Tobias the of Boxing, the annual (); Luis Mejia Oviedo (Dominican Sherman, WME-IMG’s global head of competition for professional fighters Republic); Neven Ilic (); Khalid eSports, and his team Lilia Russo, Imari overseen by AIBA, the international Muhammad Al Zubair (Oman); Jean- Oliver and Simon Abitbol, are to set up a federation. A number of LET tournaments Christophe Rolland (France); and Ingmar new eSports-related business, FIV. were called off this year because of a loss de Vos (Belgium). Lee Kun-Hee, the of sponsorship. chairman of Korean electronics giant BIDDING AND EVENTS World Wrestling Entertainment Samsung, ended his 21-year membership John Kristick, the experienced sports promoted John Brody to head of IOC because of deteriorating health. executive, was appointed executive international. He continues as executive director of the combined USA-Mexico- vice-president, global sales, a position he TELEVISION Canada bid to host the 2026 Fifa has held since joining WWE in late 2015 Jan de Jong quit as general director World Cup, having previously led USA’s from the NFL. at NOS, the Dutch public-service unsuccessful bid to host the 2022 edition. The Board of Control for Cricket broadcaster, to take up the same role Kristick had spent two years as the chief in India promoted Hemang Amin to at Feyenoord, the top-tier executive of ESP Properties, the global chief operating officer of Twenty20’s soccer club. The 50-year-old, who began agency brand of WPP, having held the Indian Premier League. Amin had been his career at NOS 24 years ago, will same position at GroupM, the media assistant general manager of finance, assume the role at the defending league investment management company commercial and events at the governing champions on 1 November. owned by WPP. is also bidding body, with responsibility for handling the to stage the 2026 World Cup. management and operations of the IPL.

STAY UPDATED. DAILY NEWS UPDATES www.sportcal.com/news. www.sportcal.com AUTUMN 2017 Sportcal Insight 53 Conferences DATE CONFERENCE WEBSITE CITY COUNTRY 11-13 WBSC Congress www.wbsc.org Gaborone Botswana

13-14 The 52nd World Archery Congress www.worldarchery.org Mexico City Mexico

OCTOBER 23-26 Sportel Monaco www.sportelmonaco.com Monte Carlo Monaco

27-28 European Business Conference www.european-athletics.org Germany

27 FIFA Council Meeting www.fifa.com Zurich Switzerland

30 - 02 TEAMS ’17 Conference + Expo www.northstartravelgroup.com Orlando USA HIGHLIGHTS

TEAMS: Travel, Events And Management in Sports, is the world’s leading conference and expo for the sports-event industry. Presented by SportsTravel, TEAMS ’17 will be held October 30 - November 2, 2017, in Orlando. Attendees include CEOs, executive directors, event managers from sports organizations, sports commissions, convention bureaus, corporate sponsors, event suppliers and other hospitality-industry opinion leaders.

31 - 03 2017 ANOC General Assembly www.olympic.org Prague

03-11 2017 World Sailing Annual Conference www.sailing.org Nuevo Vallarta Mexico

08-10 International Federation (IF) Forum 2017 www.sportaccordconvention.com Lausanne Switzerland

NOVEMBER European Olympic Committees 24-25 www.eurolympic.org Zagreb General Assembly 2017

28-29 Host City 2017 www.hostcity.com Glasgow HIGHLIGHTS

Now in its fourth year of growth, Host City is firmly established as the largest meeting of cities and sports, business and cultural events. Alongside the VIP addresses, plenary panels and growing exhibition that are the hallmark of Host City, delegates will be able to attend streamed sessions and roundtables dedicated to practical opportunities around hosting major events.

04-06 Soccerex Asian Forum www.soccerex.com Doha Qatar

05-07 IOC Executive Board Meeting www.olympic.org Lausanne Switzerland

DECEMBER 09 FIBA Central Board www.FIBA.basketball Nyon Switzerland

ONLINE: Free-to-access database of all major congresses, conferences, exhibitions and forums at www.sportcal.com/conferences 54 Index The Big Numbers $50,000,000 50% Jonathan Rest Editor

Mark McClintock Art Director

Ben Hennessy Designer

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