AUGUST/SEPTEMBER 2018 NO.244

HOW THE ‘PEOPLE’S ITALY’S GAMBLING AD MILWAUKEE BUCKS’ NEW FAMOUS RACECOURSE CLUB’ CONCEPT DRIVES BAN THREATENS SERIE A ARENA TURNS TEAM INTO DIVES INTO DATA TO EVERTON’S TICKETING CLUB REVENUES REAL-ESTATE COMPANY DOUBLE DINING INCOME Page 14 Page 22 Page 32 Page 53

HOW A $2 HOT DOG MADE FANS FALL IN LOVE WITH THE MERCEDES-BENZ STADIUM: Atlanta’s F&B pricing revolution [ PAGE 5]

CONTENTS

August/September 2018 | Issue no. 244

Falcons Opinion Everton Atlanta’s F&B The VAR Ticketing and pricing revolution opportunity community

10

Sponsorship The impact of Italy’s 14 gambling ban US Major 5 Leagues Keeping audiences hooked Formula One xxxGetting closer with FanFests

19 22 25

Bucks SportBusiness Summit preview Ascot 53 All about our Data-driven dining inaugural event

32 35

ESP Properties International Is Sorrell’s IMG Champions Cup dream dead? How it came to ‘the point of profitability’

60 63

@SportBusiness | www.sportbusiness.com 3 Editor

CALENDAR Ben Cronin [email protected] + 44 (0)20 7265 4232 Commissioning Editor Adam Nelson [email protected] + 44 (0)20 7265 4234 Head of Content Richard Welbirg [email protected] + 44 (0)20 7265 4233 Senior Designer Alex Smith [email protected] Production and Distribution Manager Craig Young 7-12 SEP | SINGAPORE 18-19 SEP | MIAMI [email protected] SPORTS MATTERS SPORTBUSINESS SUMMIT Head of Media Sales [email protected] + 44 (0) 2072 654182 “All That Matters, Asia’s leading entertainment “The invitation-only SportBusiness Summit will industry conference returns to the Ritz Carlton fuse SportBusiness’ data and analysis with the Subscription / Information sales [email protected] Millenia, Singapore from September 7-12, 2018. unique opinion, assessment and overview of + 44 (0) 2072 654178 The region’s premiere ‘Business-2-Business-2- key decision-makers and opinion formers from Fan’ event experience is the gateway to Asia leading international and US sports leagues, Head of Key Account Development [email protected] and continues to reflect the convergence of the clubs, agencies, brands, finance and technology + 44 (0) 2072 654183 entertainment industry.” leaders and media organizations. The result will be an event which delivers exceptional Sales Director allthatmatters.asia/main/ [email protected] value by informing, inspiring and guiding US + 44 (0) 2072 654223 sports businesses to realize their business potential worldwide.” www.sportbusiness.com/sportbusiness- cvent.com/events/sportbusiness-summit-2018/ international

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makers from the global sports industry will firmly established as the largest meeting of SportBusiness International is published gather in Paris to inspire, learn and network at cities and sports, business and cultural events. monthly © SBG Companies Ltd 2018. All rights the highest level.” Cities and rights-holders will have the unique reserved. No part of this publication may be reproduced or transmitted in any form or by any sis.news/section/paris opportunity to highlight their own strengths and means, or stored in any retrieval system of any requirements to ensure the best fit and return nature without prior written permission, except on investment when hosting events.” for permitted fair dealing under the Copyright Designs and Patents Act 1988. Application hostcity.com/events/host-city for permission for use of copyright material including permission to reproduce extracts in other published works shall be made to the publishers. Full acknowledgement of author, publisher and source must be given. ISSN 1757-5346.

4 www.sportbusiness.com | @SportBusiness ATLANTA FALCONS Falcons’ concession-pricing trades small revenue loss for major goodwill gains

NFL franchise has reaped Mercedes-Benz Stadium Sports teams from US, Europe reward of slashing food and drink infrastructure essential to deal and China considering following prices at new stadium with increase in volume of sales suit – as are cinema chains

(Atlanta Falcons)

Bob Williams from their fans. As stadium concessions Atlanta United – which also plays at the revenue is a fraction of income for NFL Mercedes-Benz Stadium – were rated hen the Atlanta Falcons teams, it was a low-risk, high-reward number one in all food and beverage announced their ‘fan-first’ strategy. categories: quality, variety, speed of food pricing ahead of their As it happens, the unexpectedly large service and price-to-value ratio. For move to the Mercedes- 53-per-cent increase in volume meant their last two years at the Georgia WBenz Stadium in 2017, the NFL franchise revenues fell only seven per cent in year Dome, by contrast, the Falcons ranked immediately revolutionized the stadium one at the Mercedes-Benz Stadium. 18th overall. concessions model. With $2 (€1.70) The move brought supplementary “In the grand, grand scheme of things, hot dogs and bottomless soft drinks, benefits. About 6,000 more fans per- food and beverage is not a top-five driver $3 pizza and $5 cheeseburgers among game entered the stadium earlier than of our bottom line,” Greg Beadles, the the options, they were the lowest they did in 2016, leading to shorter chief operating officer of AMBSE, tells concession prices – by far – of any major waiting times at the entrance gates, SportBusiness, “and so we pitched to our sports team in the United States. which improved security. And fans, owner [Arthur Blank], ‘Look we think The Falcons’ parent company AMB feeling that they had more money in this is going to cost us money, and this is Sports & Entertainment (AMBSE) their pocket, spent 88 per cent more on the projection on how much we think it’s anticipated a 20-per-cent drop in merchandise on game days than in the going to cost in lost revenues’. concessions revenue on their final year in previous year. “But once we explained the ideas the old Georgia Dome stadium, and they In the 2017 Voice of the Fan surveys, and how it tied in with his big-picture were happy to trade this for goodwill the Falcons and AMBSE’s MLS franchise vision – of being in control of the fan

@SportBusiness | www.sportbusiness.com 5 6

ATLANTA FALCONS Concessions were “right atthetopConcessions were of set about the improving fan experience. Mercedes-Benz Stadium. willalsobeplayed Bowl Super atthe National ChampionshipFinal. The2019 the 2018CollegeFootball Playoff hosted suchas majorevents other Blank,andhas by are alsoowned the Falcons and AtlantaUnited, who in2017.in 2014andopened It houses the GWCCA campus,broke ground a private-public builton partnership revenues. TheMercedes-Benz Stadium, to have in-stadium control over better AMBSE wouldbeitsoperator, inorder that in2010,heensured venue a new really tied.” hands were in thatparticularrelationship, our blame theFalcons,” Beadlessays. “And blame thestate would ofGeorgia, they cold,thefanswouldnot dogs were contract. concessionaire arranged itsown choicesasGWCAA themenu or even price ofconcessions,thefoodquality primary tenants, the had no control over It meantthattheFalcons, whowere Congress Center Authority (GWCCA). of Georgia,viatheGeorgiaWorld andoperatedowned thestate by their homefrom 1992until2016. attheGeorgiaDome, the fanexperience to inhisattempts hampered improve bought theFalcons in2002,hewas store home improvement Home Depot, of ArthurBlank,theco-founder When Fixing a‘broken model’ contacted thefranchise to findoutmore. chains–have – aswellUScinema while sportsteams from across theglobe concessions inthecomingNFLseason, Jaguars suitwithcheaper are following the Baltimore Ravens andJacksonville trumps economics.” values. that Thisisoneexamplewhere inourcore webelieve dollars andcents, the rightthingto do. really duginto saiditwas it,ourowner us to on.After pursueitfrom then we as muchwecould–hesupported from drivewayexperience to driveway www.sportbusiness.com | Prior toPrior thestadium’sopening, Blank BlankinitiatedWhen plansto build washotandthe thebeer “When was demolished, now The venue, thebackofFalcons’On success, “Not by wedoisdriven everything @SportBusiness “When we talk to other teams wetalkto other “When AMBSE them from just lowering from justlowering them Greg Beadles |chiefoperating officer, contract aconcessionaire to take business.” anditwillhaveon ourown to beour going to dothis,we’re goingto take it greedy. were venues Sowesaidifwe’re and backatus.finger saidowners They finalists –quite rightly–pointed the concessionaires andacoupleofthe that theeconomicmodelwasbroken. failing. Andwecameto theconclusion process and we asked them why we were during anRFP[Request forProposal] and concessionaires to to present us our fans. we basicallyreceived failinggrades from –across theboard intheNFL service in pricing, butalsoquality, speedof ratings across theboard? Not just the casethatwehave such terrible questions,” Beadlesadds. “Whyisthis nationally, from supporters. Falcons hadreceived, bothlocallyand the list”dueto the poorratings the pricing if they can’tmakethe pricing ifthey and venues, wediscourage and venues, infrastructure changes.” Most USmajor-league sportsteams “We atthe pointingthefinger were “We brought invariousbusinesses “We started askingourselvesdifferent of fourcanbuyfood anddrinkatthe team estimates thatan average family $2, whilea12ozBudLightis$5. The Coca-Cola withunlimited refills isalso prices includingtax,ahotdogis $2,a At theMercedes-Benz Stadium,withall was$7.42. $4.79andbeer drinks were at NFLstadiumsin2015was$5.29, soft Report, theaverage priceofahotdog Stadium to unprecedented levels. of foodanddrinkattheMercedes-Benz decidedtoAMBSE then drop theprice andtheconcessionsmenu, revenues Having taken theirstadium control over Cheap aschips changes thatwemade.” ableto wewere control, then make the is, whatthepricingis. wetook Once of thingsbutwedecidewhatthequality andallthosesorts cooking innovations decisionsand onmenu their expertise the flexibility,” says Beadles. “We use thatgivesus –butthen investment] [typicallyaseven-figure equipment upfront –the for alltheinvestment management-fee basissowe hadto pay are paidonastrictly “They revenue. Restaurants afixed feebutkeeps allthe Stadium, AMBSEpays Levy supplier cent.and drinkcanbeashigh77per only goalandprofit marginsonfood maximisation istheconcessionaire’s are shared. Revenue and revenues andpricing,choosing themenu control ofthebusiness,including According to aTeam Marketing By contrast, attheMercedes-Benz (Atlanta Falcons) ATLANTA FALCONS MERCEDEZ-BENZ STADIUM ‘FAN FIRST’ MENU

Coca-Cola Dasani Pretzel $2 Refillable Cup $2 Water Bottle $2

Nachos Hot Dog Popcorn $2 $2 $3 w/Cheese

Souvenir Waffle Fries Pizza Slice $3 $3 $4 Refillable Cup

Bud Light Chicken Tenders Cheeseburger $5 Draft Beer $5 $6 Basket w/Fries

Source: Atlanta Falcons stadium for $28 or less. high-end food choices. Beadles says: “This is a key thing when I talk to So why exactly did AMBSE drop “This isn’t just about cheap food, it’s other teams and other venues, we prices to such an extreme? Its about options – but they are all charged actually discourage them from just executives – taking some inspiration similarly to what they would be outside lowering pricing if you can’t make the from the Masters golf tournament in of the stadium.” changes that we were able to make that nearby Augusta, where sandwiches are building a new building afforded us. If as little as $1.50 – took a calculated Appropriate infrastructure you have an old building and you can’t bet that that it was a move that would AMBSE predicted a 15- to 20-per- get your back-end operations up to appeal to the Falcons’ fanbase with very cent increase in volume of sales of speed then it might be better to do this little financial risk. concessions at the Mercedes-Benz in increments than go the whole hog as With only eight regular-season Stadium. When the uptick was actually we did.” home games, concession sales are a 53 per cent they were fortunate for the One unexpected consequence was tiny fraction of NFL teams’ revenue. improved infrastructure of the new significantly more trash being created, in The Falcons have not released their stadium. addition to the ice in the self-service soda numbers but, to illustrate the point, the This includes: 65 per cent more points machines and items in the condiments Indianapolis Colts generated around of sale and 1,264 more beer taps than the station running out much quicker $5.2m in food and drink sales at Lucas Georgia Dome; just over half the stands than anyone imagined. “These were Oil Stadium in 2013 and, like every other having cooking capacity compared to interesting bi-products that we didn’t NFL franchise, received $226.4m in less than a third; whole dollar amounts necessarily think about beforehand and national revenue for the 2014 season. (including tax) to reduce transaction we’ve had to spend more labour dollars “In those low ratings from the fans time; queue lines designed – with to maintain and refresh the self-service and their verbatim responses [in the help of Georgia Tech’s Industrial areas and clean up the trash during comments sections], what we were Engineering programme – to maximize events.” hearing was, ‘Look, when I come to the space and minimize waiting times; stadium I feel like a captive audience, significantly more pantries and Supplementary benefits that once I come in I can’t go back out, refrigerators; and self-service areas for On average, 6,000 more Falcons fans that I’m forced to pay these prices that soft drinks and condiments. walked through the gates two hours compared to what I can get in the street “There are seven, eight, nine different before the game last season, which not are an order of magnitude higher’,” says things that we tried to do to speed up only meant more time to sell food and Beadles. “So our thinking was why are the transactions by a few seconds each drink, but also helped to ease waiting we treating our fans this way when they because when you aggregate them all times at entrance games. come in?’” it is considerable,” says Beadles. “For One question Beadles asked was The ‘wow’ items that are $6 or lower the College Football National Playoff whether or not “people, instead of – soft drinks, bottled water, pretzels, Championship Final, we broke the stopping and eating somewhere along chips, pizza, cheeseburgers, chicken North American record on number of the way where they know they can get fingers – are considered fan favourites transactions for a sporting event (over affordable food, would they come on and what the team sell the most of, but 120,000) and yet we were still number down and avoid the traffic and come in the Mercedes-Benz Stadium also has one in terms of speed of service. earlier and eat here? We’re definitely

@SportBusiness | www.sportbusiness.com 7 8

ATLANTA FALCONS pitch for the Super Bowl and every other other pitch and every Bowl for the Super building, wemadeourinitial sowhen our hallmarkswiththebusinessand amajoradvantage.“It’sproved oneof secure majorevents. Ifanything, ithas affected to thestadium’s attempts created,” Beadlesadds. in theirpocket andthegoodwillwe’ve to peoplehaving more dollars afew season. “We isacorrelation thinkthere compared to cent up 88per theprevious across theNFLandMLS.” done thatwere in third-party surveys twoinarrivalexperience and number oneinsecurityscreening number were saysarrival experience,” Beadles. “We fans cominginlater to have abetter building, whichhelpswithalltheother in later, are already inthe sincethey those6,000people a pushgetting seeing that. have Sowenow lessof www.sportbusiness.com | Value ofprice paid Value ofprice paid MERCEDES-BENZ STADIUM IN THE 2017 NFL AND MLS VOICE OF THE FAN SURVEYS Speed of service Speed of service The concessionsmodelhasnot Gameday salesare also merchandise Quality of food Variety of food Quality of food Variety of food F&B Element F&B Element Overall Overall 0 0 @SportBusiness Mercedes-Benz Stadium Mercedes-Benz Stadium 2 2 companies thatmanageshundreds of we’ve had one of the global management asked to to present allNFLteams and baseball, basketball teams. We’ve been you’d expectStateside –hockey, checking itoutalongwitheveryone people from Europe andChinahere from interested parties. “We’ve had is notholdinganyinformationback its concessionsmodelandthecompany brand.” anditwillextenddeveloped into their that thisconcessionsmodelhas seethegoodwill becausethey receptive organisations wepitch to] are more with thatacross theboard. Now [the be thesame.We wantto beconsistent built into thebidthatourpricingwould –inallthesesituationswehavevenue hopefully in2026we’llbeaWorld Cup National ChampionshipFinal –and here likeevent the CollegeFootball Playoff AMBSE hasreceived globalinterest in 4 4 MLS Average NFL Average 6 6 consists ofthe21mostpopularitems on ‘Flock Friendly Fare’, menu thenew M&T BankStadiumin2018.Labelled reducing thepriceofconcessionsat by intheFalcons’are following footsteps Fellow NFLteam theBaltimore Ravens Replication challenges and quality.” fans andmake changesbasedonvariety season. We’re alsotrying to listen to the some pricingfortheupcomingfootball in factweare goingto belowering not raising anypricinginyeartwoand first yearofourstadiumbutweare just beamarketing gimmickforthe out. Alotofpeoplethoughtitwould could helpthem. aprogramme likelearn abouthow this inasimilarsituationandwanttothey’re interest theatres, maybe from movie comeintovenues visitus. iseven There “We tell wedon’thave them itfigured 8 8 Atlanta Falcons Atlanta United 10 10 Source: NFLandMLS MLS rank NFL rank 1 1 1 1 1 1 1 1 1 1 st st st st st st st st st st ATLANTA FALCONS

Atlanta Falcons the team’s concessions. No single item “Concessions to us is less of a us a game or two but hopefully we’ll get will cost fans more than $9, while 13 of business attribute as it is a into a groove at some point in relation to the items can be bought for $5 or less. the expected increased volume.” The measure has been taken in large fan-experience attribute.” The Ravens, not Aramark will bear the part to repair the relationship with Baker Koppelman | vice-president, ticket brunt of any losses. “I think they were a section of fans angered by players’ sales and operations, Baltimore Ravens pretty open to it – they were involved in national anthem protests – leading to helping us set the prices and build the no-shows at games last season – and model,” says Koppelman. “I think they also disappointed by a three-year play- are intrigued about it as it is something off drought. satisfaction side of things first and let new and they want to see how it goes. The Ravens estimate they will lose the revenue take care of itself. We feel I think they will keep a close eye on it $1.5m following this move but the like if fans are happy then things will from a data perspective to see what they franchise believe it is worth undertaking take care of themselves.” learn from it and how it might impact in their attempt to boost strained The Ravens began looking at reducing other clients they have.” relations with some supporters. the cost of concessions two years ago Despite significant price decreases, “Concessions to us is less of a and were heartened by the success of the Ravens have not gone as far as the business attribute as it is a fan- the Falcons. One of the team’s concerns, Falcons in terms of offering super-cheap experience attribute,” Baker however, is trying to react to a projected prices. “It wasn’t really scientific, it Koppelman, the Baltimore Ravens’ vice- increase in volume of sales in their was more looking at an item and asking president of ticket sales and operations, current facility with limited opportunity what is reasonable in the grand scheme tells SportBusiness. to redesign the stadium accordingly. of things and what will make fans say “So we asked ourselves: ‘if we start “The Falcons’ model is something ‘Wow, it’s incredible that they did that’,” making a little less money in concessions, that everyone is looking at but it’s hard says Koppelman. does it really matter?’ We’re not trying to compare apples to apples. They “The average fan is going to make to scrape every dime we can from were able to plan for it going into a the comparison with the Falcons – people. When you start looking at the new stadium but we are kind of retro- we’re both football teams and all that. money that we make from concessions fitting and that is a little slippery,” But the fact that they’ve done it in a coupled with complaints [over prices], Koppelman adds. “We assume volume new stadium is a big factor. With us, why wouldn’t we lower them and make will increase a little bit. We are putting we decided that this is what we feel our fans a little bit happier? It’s a way of our concessions partner [Aramark] to comfortable doing, this is what we feel it acknowledging that we want to address the test in terms of potentially having should be.” your complaints and fix something that to deal with increased demand based on Koppelman says fan reaction is upsetting you in the context of your the pricing.” will be the appropriate measure of trip to the stadium. The Ravens plan to add more frying success. “Our first metric is how fans “In the context of things, $1.5m is machines to deal with a projected will receive it. We’ve had some good meaningful but you could probably find increase in sales in french fries and feedback already but obviously they many things that you are spending $1.5m chicken tenders. “Other than that there’s want to see it in action and experience on that may or may not have value. I not a whole lot that we can do. We can’t it. If it turns out that we end up making wouldn’t call it a marketing expense but build more concessions stands on the our money back or making more then you can look at it as the cost of doing concourse. We expect increased volume so be it but it really boils down to our business. In the balance of revenue to and we’re doing the best we can to keep fans feeling like we’ve done something fan satisfaction, we skew it to the fan up with it,” Koppelman says. “It may take significant for them.” Z

@SportBusiness | www.sportbusiness.com 9 10

OPINION Handle withflair: VAR and sponsorship A a sponsorshipcomes alongwith hard. Butsometimes at scaleisvery therule:earningtalkability prove linktoand meaningful yourbrand. andalsohasan authentic in consumers reaction evokes emotional apowerful, can onlyearnitwithaninsightthat talkability hasto beearned.Andyou usual bundleofsponsorshiprights,but camewiththe andthey an audience built-in talkability. Yes, camewith they didn’tcomewith sponsorship: they two campaigns,andjustaboutevery aMom.– there’s – and Olympian aspiring Olympian every thatbehind around theunderstanding overlooked,previously telling stories sponsorshad thatother audience halfoftheglobalOlympic the female focusingon by This defiedconvention Games. Olympic London 2012Summer first released inthebuild-upto the Sponsor ofMoms’ sponsorship, Olympic Gamble’s ground-breaking ‘Proud evoke thatthanBrazil? toexhilarating football.Andwhobetter andwanted loved that whatthey was Nike and around ‘forever’ hadalsobeen realising thatfortheirtargetaudience worrying aboutadidas’footballheritage, Nike when was themoment stopped the 1998World CupinFrance. This ‘Airport’ campaignfrom therunupto provoke thatreaction atscale. Allgreat sponsorships with everyone. feel compelledto say soandshare it itsomuchthatthey love consumers acampaigngoesviral: when when sales andmarketshare, andsoon. brand image,increased value –enhanced from it,andyouwillgettwoanswers. sponsors should considering it among the most important assetsoffuturetournaments. sponsors shouldconsideringitamongthemostimportant Tim Crow reflectsontheuseof VAR inRussia2018 andwhy–followingtheirinitialreticence www.sportbusiness.com | These are alltheexceptions that Notice somethingaboutthese instanceisProcterAnother and suchexampleisNike’sOne immortal is‘talkability’,thatmoment The other naturally,One, isbusinessimpactand go livewhatheorshewants a campaignthat’saboutto ofanysponsorwithofficer sk thechiefmarketing @SportBusiness becoming mainstream. As a result a new aresult anew becoming mainstream. As VARcompetitions, where israpidly willclub and neither 2019-2022 cycle, finding VAR sponsorshipforthe inthegame. embedded like kitbranding orperimeter ads,it’s breaks. media, Andit’snotlow-voice football andsponsorship. thatVARproved for isagame-changer again.Russia that won’thappen 2018 prospective sponsorpassed.But every iswhy time, that’salotofrisk.Which sponsorship pricetagandtheshortlead imageissues,apunchy host, Fifa’s legacy criticism. alotoffanandmedia quantity attracting a sponsorforit,sinceitwasanunknown Fifa took VAR to market butcouldn’tfind including intheFinal itself. regularly playing acrucialrole – point throughout thetournament, VAR.winner: VAR becamethetalking failed, to cashin ontheirvirality. thousands ofbrands tried,butmostly happened, thesemoments whenever before, duringandafter thematch. And world talking, debating andsharing, thatgotthe –incidents moments guaranteed talkability. Fifa willhave in noproblem It’s not partofthesideshow, like ad Add to thatfearsaboutRussia asa Six monthsbefore thetournament, wasonebig,But there andunexpected The Fifa World Cupwasfullofbig flair! Z need to create thatlinktoo. Handlewith VAR, brand thatsponsorsitwill every this space.To maximisethepotential of the dominantbrand infans’minds thatitisnow sponsorship ofreferees an entertaining linkto andauthentic its example, Specsavers hascreated such fail. Handlewithcare. leastbackfire andatworst at thevery yoursponsorshipwill them, understand tocentral theirworld,soifyoudon’t VAR sponsorshipwillmake you mindset, theirlanguage,passion. is notforyou. controversy,embrace VAR sponsorship if you’re abrand thatdoesn’twantto set offansalways feelswronged. So theofficialsgetitright,one when Even decisions infootballare controversial. becauseallbig controversial, forever in particular. maximise VAR’s potential? Three things their firstwave of VAR sponsorsdoto of assetwithhugepotential. anew, by driven type different andvery infootballsponsorshipisdawning,era @shaymantim of Synergy.Follow himon Twitter Tim Crow istheformerchiefexecutive Take inspirationbrands from.For other intotheworldoffans,their deep Dive . VAREmbrace controversy willbe and So whatcanrightsholders (Robbie JayBarratt -AMA /Getty Images ) In association with

Optimising the game day experience LEGENDS Nick Price, chief commercial officer at Legends Global Events andOlly Hitchcox, business development director of Legends’ UK F&B partners Absolute Taste, deliver key insights into optimising the fan experience

ext only to the action on the field or the performance on stage, a venue’s food and beverage (F&B) and retail/ Nmerchandise operations are critical to optimising the fan experience. Delivering the optimal fan experience on a continuous basis and meeting the evolving demands and expectations across the full range of guests and ticketholders is fundamental to building a profitable business model. Maximising the contribution of F&B and merchandising in both financial and brand-building terms is at the core of Legends’ capabilities. Legends was founded in 2008 by the Dallas Cowboys and New York Yankees to ensure that Summer Olympic Games, the IAAF not measured in per-capita spend and their stadia offered fans a next level World Championships 2017 in London profit alone – it is essential to recognise F&B and retail experience. Legends has and now the Rugby World Cup 2019 the critical role that high-quality F&B since expanded beyond F&B and retail in Japan. Stateside, Legends has plays in the delivery of sustainable to provide a 360-degree approach to produced record-breaking sales through long-term revenues from the premium deliver optimal value and experiences merchandising partnerships with hospitality experience. at sports and entertainment stadia and IndyCar and Super Bowl 50, as well as Establishing and sustaining levels of arenas and visitor attractions. the successes of the world’s largest Pro quality is critical to maintaining these In the US, Legends provides F&B Shop at AT&T Stadium. revenue streams which produces a experiences at more than 70 major In the third of our white papers, genuine partnership and alignment of venues, including AT&T Stadium in Nick Price, chief commercial officer interests between the club or venue Dallas; Yankee Stadium and One World at Legends Global Events and Olly owners and operators and the F&B Observatory in New York; Banc of Hitchcox, business development providers. California Stadium and OUE Skyspace director of Legends’ UK F&B partners Delivering a consistently high-quality in Los Angeles; and nearly 40 Live Absolute Taste, deliver key insights into F&B offering in a stadium or any other Nation venues. optimising the fan experience. sports environment is a demanding In the UK, Legends has partnered and complex job. It requires specific with Absolute Taste, and together FOOD & BEVERAGE skills, a huge reservoir of experience and they provide food and beverages at expertise, and the commitment of the Manchester City’s Etihad Stadium, Ensure alignment of interests owners/operators to maintaining the Watford FC and at The View From In many respects the quality of F&B is standard of the product. the Shard. defining the experience for fans and In practical terms, that means Legends International has acquired becoming part of the brand of a club, working to common goals and avoiding the team responsible for delivering venue or event and is certainly an any temptation to squeeze margins at the onsite retail and merchandising increasingly important revenue driver the expense of F&B quality. operations at the London 2012 Summer and profit point. Success is about clubs and venue Olympic Games, Rio de Janeiro 2016 More than that, the value of F&B is owners working hand-in-glove in

@SportBusiness | www.sportbusiness.com 11 LEGENDS

partnerships which extend from quality of the food and drink to match design and build to operations, so that which they would enjoy in a top that we can be sure what we deliver restaurant. is commensurate with hitting all the key points and maximising quality and Delivering quality of service revenue. Great food alone is only part of the game day F&B experience. The other Support the customer experience at side of the equation is the ability to In association with every price point provide a service which meets the The fact is consumers’ expectations of requirements of each customer group catering have only increased in the past within a stadium, whether they are 20 years. Society has transformed into experiencing fine dining in the Tunnel a culinary culture where people want Club at Manchester City or a burger in it all – organic, locally-sourced, vegan the Fan Zone. options, gluten-free options, healthy One of the key challenges to options – all in a variety of foods with a consistently delivering high-quality variety of prices. service in stadium catering is usage. Fuelled by a competitive High On those 25 to 30 occasions per Street casual dining market and the year, you may need 1,000 staff, and by media’s focus on food and wine, today definition a large percentage of this everybody is a connoisseur and expects workforce are ‘casuals’. This means that great quality at a great price. Naturally, training and management are critical those expectations are taken into sports to delivery of the requisite quality of arenas where F&B providers are charged service. Unfortunately, many companies with delivering a staggering variety of are reluctant to invest in recruitment, high-quality offers to meet a range of training and retention. expectations and price points. Legends and Absolute Taste have Olympic Games (45,000 sq. ft/4,200 Legends and its partner, Absolute a significant advantage because they sq. m); the largest stadium in the NFL, Taste – with its breadth of experience operate 365 days a year and have AT&T stadium, home to the Dallas and understanding of the sector a constant requirement for staff. Cowboys Pro Shop (16,000 sq. ft); and and changing customer demand The upshot is they are able to offer a 4m x 4m pop-up at the 2018 Berlin – demonstrate a singular focus people careers, not just casual jobs, European Championships. on delivering the highest-quality giving employees the opportunity for Whether they are in-stadium or foodservice – often in venues not growth. Investing in people provides external pop-ups, merchandise outlets designed for the purpose. an incentive and a level of engagement are where fans come to immerse And because back-of-house facilities which reflects in service standards and themselves in a love affair with their at some sports venues are not optimised the results benefit the clients and their team or sport. for excellence in F&B, the company has customers alike. Legends’ focus is on creating and continued to invest in facilities which maintaining the ‘wow’ factor by allow it to conduct elements of food RETAIL AND MERCHANDISE keeping the retail experience fresh and preparation offsite, mitigating some of innovative. That doesn’t simply mean the challenges presented by working in Creating the best retail environment displaying new products as they arrive a stadium environment and to reduce The importance of sports merchandise but continually moving fixtures and capital investment requirements is reflected by the store location fittings to make the visitor experience and operating costs by, for example, and the incorporation of innovative different and to keep fans intrigued, reducing the need for huge kitchens and product display and point of sale discovering and buying. huge numbers of staff and chefs onsite components throughout the overall Legends developed a merchandising for events. retail environment. programme for Super Bowl 50, the We propose menus in styles which Legends has a proven track record most-watched annual sporting event reflect the expectations of the clubs, of creating the best possible retail in the world, which resulted in record- venues and their customers. When environments, including the creation breaking results and set the standard customers are paying for a premium of the largest pop-up store in Olympic for strategic planning at any sports or experience they expect the choice and Games history at the Rio 2016 Summer entertainment venue.

12 www.sportbusiness.com | @SportBusiness In association with

experience to understand their impact an understanding of the customer and on retail is something which results the reasons they make a purchase. They from years of experience of working in are investing in something they love and

stadiums and at events worldwide and are proud of the team, the country, city or LEGENDS the knowledge to maximise revenues on event which is featured on the product. behalf of clients. If a product falls apart or fades the One example is Legends’ partnership first time it is washed, it not only means with IndyCar. After it saw a gradual that you have lost a customer for the decline in e-commerce sales for future, but worse, the relationship consecutive seasons, to boost sales between the customer and the sports Legends developed exclusive online brand is tainted. You must maintain a driver merchandise utilising drivers’ level of quality which reflects the sports social media followers and capitalising brand in question and you can’t ever let on the strong bond that fans have with the customer down. drivers. In 2016, the 100th running of Innovation and choice the Indy 500 took place, delivering While successful merchandise unprecedented merchandise sales programmes are founded on brand serving more than half a million fans and quality control, if they are to on race weekend and amassing record- succeed they must also be innovative breaking sales. and exciting. That means creating and offering a range of products that give Maintaining control of the brand people a reason to buy even when they An effective merchandise operation may be fans who are at the stadium will not only drive revenue but create routinely to watch their club. greater engagement with a sports brand In the case of a football club, the The event established a gross volume – whether it is a club or an event – and team kit is generally the main purchase Super Bowl sales record at $4.6m (€4m), encourage future investment. but is likely to be a one-off. So it is employed over 900 team members Merchandising in today’s market important to ensure that fans have a and 75 managers, used eight mobile requires a real depth of understanding reason to keep coming back to see what trucks to expand the sales footprint of the customer. In many respects sports else is on offer, to see what else they outside of the four walls, and had record and events merchandise is a different can buy for themselves or as gifts for gameday sales-per-capita at $58.77. By kind of purchase, one that is a reflection friends and family. every measurement it was extremely of an emotional engagement with the A perfect example is the Yankees successful. brand and a desire to be part of its cap – the most recognisable piece of heritage, history and special moments. sports apparel in the world. The iconic Understanding the customer journey Legends’ approach to merchandising has NY hat can be seen on all ages and While many fans are happy to make been influenced by our experience at genders ranging from devout Yankee their way to a central megastore, that the Summer Olympic Games, which is fans to those who have never watched is only part of the overall merchandise considered the ‘Gold Standard’ in terms a baseball game in their life. Legends landscape. To maximise sales of where merchandising magic really has operated the retail at the fabled opportunities, it is necessary to develop happens. The Olympic Games represents stadium, winning MLB retailer of the an understanding of the ‘fan journey’ on the biggest stage in the world, and we year in 2009 and 2013, and earning match days to ensure that point of sales like to bring that experience to bear for the highest sales-per-capita in all of opportunities are optimised. the benefit of all the clubs and events we team sports. It has also garnered the The pattern of fan movements in and work with. Five Diamond Hospitality Award around the stadium differs according three times. to factors including the duration and Why quality matters The fact the Yankees have won 27 dynamics of a particular event and the Just as controlling every aspect of the championships and celebrities such time of day it takes place. brand is vital, it is also important to as Jay-Z and Denzel Washington are That may sound like common sense, ensure strict controls on the quality of regularly spotted donning the cap but the reality is that studying footfall all the merchandise in a range. has helped it become a symbol of pop and customer patterns and having the The focus on quality is also driven by culture and fashion. Z

@SportBusiness | www.sportbusiness.com 13 The ‘People’s Club’ philosophy guides

EVERTON Everton’s fan engagement strategy

Premier League club sees benefits of Major engagement push with Tactics aimed at ensuring demand reducing ticket prices for young fans fanbase also boosts commercials for tickets ahead of new stadium move in 2022

Richard Kenyon, director of marketing, communications and community, Everton Football Club (Everton FC)

Adam Nelson way that we open up to our fans, that at the club. Some of the issue lay with we listen to our fans, I think all of these the team’s performance – Everton has prefer to call it reputation things are good messages and support not finished higher than fifth in the rather than brand”, says Richard that positioning of the ‘People’s Club’, Premier League since 2005. He was also Kenyon, director of marketing, but what it absolutely doesn’t mean is firm in his view that there was plenty communications and community that we are parochial or not ambitious.” more the club could do off the pitch to Iat Everton Football Club, of the team’s Fan consultation, Kenyon says, has attract fans. ‘People’s Club’ positioning. “Because formed a cornerstone of his work since The first stage of this, he says, was it’s something that’s been with the club joining Everton in 2014. At that time, a “major study and survey of our since we were formed, and it’s built Goodison Park, the stadium in which the fanbase”, dedicated to understanding over many, many years and is difficult team have played home games since 1892, “who is coming to the game and perhaps to change. Ours, if used in the right way, was regularly some way below capacity more importantly who wasn’t, and the could be really powerful for us.” on match days. “We sold out for some of motivations for that”. Engaging with fan The idea of Everton as the ‘People’s the big games and dates: the Merseyside stakeholder groups, including season Club’ is something that guides every derby [against Liverpool, Everton’s city ticket-holders, the Fans’ Forum – who aspect of their public-facing work, neighbours], Manchester United, the Kenyon describes as being “like MPs for Kenyon explains. “And it’s not just opening day,” says Kenyon. “But we were the fanbase” – and the more recently- about being a local community club. It’s never consistently at full capacity.” established Junior Fans’ Forum, Everton not a parochial expression. It’s about identified young supporters as a key doing things the right way, it’s doing Ticket-pricing strategy growth area. things in the true essence of the club. Solving this problem was the number “Ultimately, we wanted to have more The work that we do with our fans, the one priority for Kenyon after he arrived young people coming into the stadium,”

14 www.sportbusiness.com | @SportBusiness EVERTON says Kenyon. “We know that if young the full-price adult ticket, where the time in well over a decade – average people can get into the habit of coming, club “was seeing quite a big fall off in attendances at Goodison have been on then they stay for a long time, so we attendance – those fans in their late an incline since Kenyon’s arrival. From created a number of initiatives to get teens and early twenties, fans we were a low of just over 33,000 in 2011-12, the them through the turnstiles.” obviously very keen to keep hold of and club’s average attendance for the 2017- The initial step was to reassess the get coming back”. 18 Premier League season hit 39,494. ticket pricing structure, with a two- Another consultation with the Fans’ In the previous campaign, for the first fold goal: getting more young people Forum ensued, the result of which was time in their history, Everton sold into games and retaining them as they the introduction of a second young every seat for every home league game transition into adulthood. An under- adult category in 2016-17. Fans aged in the season. “Last season we hit our 11’s ticket a home game is just £5 18-21 now pay £299 per season, while a season ticket sales cap – the maximum (€5.60/$6.50) per match and £95 for a season ticket in the 22-24 age bracket number of tickets we could sell on a season ticket – comfortably among the costs £380, helping to stagger the price seasonal basis,” Kenyon adds. “We hit lowest in the Premier League. Eighteen increase – previously, all fans over the it for the first time, and we repeated it per cent of the 31,000 season tickets the age of 21 paid full price. again for the coming campaign.” club sold for the 2017-18 season were The Fans’ Forum, Kenyon says, “has held by junior fans. been incredibly helpful, and they don’t Community engagement Under-18s tickets are also just say what you might think – ‘tickets The club has worked to engage more competitively-priced, starting at £20 should be cheaper’ – or anything like youngsters in the local area to come per game or £149 for the season – the that. They give us good insight and that, to games, by offering a range of Premier League average is thought to be combined with the benchmarking we incentives and experiences for junior about £235. According to research the do against other clubs and the market season ticket-holders and fan club club conducted last season, on average, research we perform, help us to make members. Alongside his position as one in four fans inside Goodison Park sure and that we’re charging the right marketing director, Kenyon is also during the 2017-18 season were under amount for the right age groups”. the chief executive of Everton in the the age of 18. This is compared with a In the two years since the second Community, the club’s charitable arm. Premier League average of one in six, young adult category was introduced, This dual role, he says, has allowed according to the Premier League’s own the retention rate in the 22–24 age group him to see how charitable engagement figures. The group of under-18 season has risen to 92 per cent, from a previous programmes typically used by Everton ticket-holders at Everton has grown 10 five-year average of 74 per cent. in the Community could also benefit the per cent since 2014-15. Despite worsening league wider club. Kenyon then looked at the leap in performances – including consecutive “Our community programme pricing from the young adult ticket to bottom-half finishes for the first has always had a youth engagement

EVERTON AVERAGE ATTENDANCE, 2011-12 TO 2017-18

40,000

37,500

The decline in 2017-18 was due to the increased accessibility seating required by the Premier League. This 35,000 led to a reduced stadium capacity.

32,500 AVERAGE ATTENDANCE AVERAGE

30,000 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Source: Everton FC

@SportBusiness | www.sportbusiness.com 15 lead to higher retention and greater loyalty,” he says. “Those things are hard to quantify in the short term, but obviously we understand the commercial gains that follow if we get it right. EVERTON “It’s really been an engagement strategy. The football is absolutely what it’s all about, and the biggest accelerant to growing a fan base is going to be winning trophies. But we do everything we can around that to improve the overall experience.”

New stadium on the horizon One of the major reasons behind the timing of this engagement push is Everton’s proposed move to a new stadium at Bramley Moore Dock, on the banks of Liverpool’s River Mersey. The new venue is expected to open for the start of the 2022-23 season with a capacity of about 55,000 – over 15,000 ((Laurence Griffiths/Getty Images) more than Goodison Park. By creating significant over-demand for season strand out in schools, working with for games and that kind of thing, just to tickets now, Kenyon hopes to ensure the disadvantaged young people through try and keep the younger Evertonians new stadium is full from the first game. Everton in the Community,” Kenyon hooked and also get some other mates “We will have more seats to sell but explains. “What we’ve done off the to ‘turn blue’ as well. We’ve got some we’re in a good position because we’ve back of that is invested in a program evidence that that’s been happening.” been growing steadily over the past for junior schools, which came about few years,” he says. “We have an active from one school who told us that they waiting list now, so the demand is had a group of Evertonians who used “We know that if young people there, and what we need to keep doing to just get together at lunchtime and can get into the habit of is make sure we’re the sort of club that talk about the club. So we thought, ‘well coming, then they can stay fans keep coming to, we want to make actually, why don’t you become our first sure we’re still that same club so they’ll junior supporters’ club?’ Just like we for a long time, so we created stay with us. If we can keep building have adult supporters’ clubs, who go a number of initiatives to get on loyalty and the number of the fans home and away and are very loyal fans, them through the turnstiles.” we’ve got I’m very confident we’ll fill we thought, ‘why don’t we create these the new stadium.” clubs in schools?’” Richard Kenyon | director of marketing, A major opportunity around the new Since piloting the scheme in 2016, communications and community, stadium, Kenyon explains, will be the Everton now has 160 official junior Everton Football Club ability to have a more flexible range of supporters’ clubs – Kenyon explains prices on tickets: “You can sit in the that “we initially wanted to keep it low stands at Goodison, halfway up, and and make sure we could give each of Kenyon notes that engagement-led still have a pillar in front of you. Some these schools a really good experience, programmes, which are “the right of the best areas of the ground still have being able to send players along and thing to do and will give us a return some obstructions. It does mean it’s really engage with each kid”. Most eventually”, don’t always offer an difficult to increase the ticket prices. We of them are in the Liverpool area, initial revenue rise and could, as a won’t have those challenges [in the new although some junior fan clubs have result, be “hard to get past the financial stadium] so we’ll have the opportunity started to crop up overseas, with one as director and chief executive”. This has to put the ticket prices up at the top far afield as Australia. become easier over time, as several of end, but we’ll always want to maintain “But it’s predominantly local children the recent programmes – particularly our commitment to affordable pricing. and we try to make it really engaging,” with regards to youth engagement It will just be a bigger range than we’re Kenyon says. “So when we go, we take – can now be mapped alongside the able to have here.” first team players or people from the increase in young fans coming to the The BBC’s Price of Football report football side, as well as community stadium on match days. for 2017 found that Everton’s lowest- coaches. We’ve helped them with tickets “Our hope is that these concepts will priced seat, at £38, was the second

16 www.sportbusiness.com | @SportBusiness EVERTON most-expensive entry-level ticket PREMIER LEAGUE AVERAGE ATTENDANCES, 2017-18 in the Premier League (after Chelsea FC). The club’s highest- AFC Bournemouth Vitality Stadium Average home end ticket, however, is among the attendance 2017-18 cheapest in the division, at just £11 Watford FC Stadium capacity more. “What we’ll have at our new Vicarage Road stadium is improved facilities, the opportunity for a greater number Swansea City of premium seats and hospitality Liberty Stadium provisions, and I think there’ll be the opportunity even in general Burnley FC Turf Moor admission to have a higher top-end ticket,” says Kenyon. Huddersfield Town This will follow another John Smith's Stadium major period of research and benchmarking against other West Bromwich Albion Premier League clubs – in addition The Hawthorns to, Kenyon is keen to note, teams from other sports and disciplines. Crystal Palace “It’s not just the Premier League Selhurst Park clubs that we look at, it’s globally to look at what other sports clubs Stoke City Bet 365 Stadium and organisations are doing to engage with their audience,” he Brighton & Hove Albion adds. AMEX Stadium “So we’ve looked at the ways other clubs and leagues do things. Southampton FC We’ve gone to everyone – from the St Mary's Stadium NFL and MLB in America to the Twenty20 cricket league in the UK Leicester City – to look at how they do things, for King Power Stadium example, how they put content on Everton FC the big screens inside the stadiums. Goodison Park [However,] just because it’s working well somewhere else doesn’t mean it Chelsea FC would be necessarily right for us. So Stamford Bridge we ’ll always come back in and bring those learnings to test them out and Newcastle United then discuss them with the Fans’ St James' Park Forum.” This is how the ‘People’s Liverpool FC Anfield Club’ approaches all fan-facing initiatives it intends to implement. Manchester City “We look at every one on a case- Etihad Stadium by-case basis, and we talk to our fans,” Kenyon says. “We might West Ham United go with a tonne of research and London Stadium a recommendation in mind, but if we listen to our Fans’ Forum Arsenal and they tell us something that’s Emirates Stadium different to what we’re thinking, Tottenham Hotspur then we’ll either go back out and Wembley Stadium test it or we’ll take their advice, because they’ve really helped us Manchester United make what we think have been Old Trafford very good decisions in the last few years.” Z 0 20 40 60 80 100 (000s) Source: SportBusiness

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946041250, Michael Steele FORMULA ONE Audience research drives F1 to bring fans in closer with city-based festivals

Global brand study suggested F1 London Live the largest Cities like Marseille using the the sport needed to ‘win cities’ and non-race event in the 67-year events to promote themselves get closer to fans history of the sport as tourist destinations

The first Formula One fan festival, in London, July 2017 Formula( One)

Ben Cronin F1’s new director of marketing, centred around the sport being exclusive, Ellie Norman, admits that the London inaccessible and very much focused on hen Formula One brought events took some inspiration from business-to-business,” she says. “The its first Fan Festival to the NFL but that the concept was Fan Festivals that we’ve programmed the streets of London primarily born of research her team has are about reversing some of those last summer, the event conducted into F1 audiences. preconceptions and associations.” Wappeared to be straight out of the NFL’s Because of the autocratic style in With the exception of a handful of marketing playbook. which the former chief executive Bernie city-centred races like the Monaco, F1 London Live, like the US league’s Ecclestone ran the sport, Norman Melbourne and Singapore Grand Prix, Regent Street festival, which runs effectively became F1’s first director of most F1 races take place on tracks alongside the London series of NFL marketing and communications when outside major population centres. The games, attempted to promote the sport she joined in May last year. Her first advantage of the unticketed, city-based beyond the confines of the British act as head of the new division was to festivals is that they are easier for Grand Prix, taking place some 80 miles conduct a brand study across fans in the families to attend and allow fans much away at the Silverstone racing circuit UK, Europe, North America, Malaysia greater proximity to the cars and the the following weekend. Mixing music and China to find out exactly what stars of the series. Norman says they and entertainment acts with access to people thought of the series. The need are designed to broaden the F1 fanbase, cars and drivers, this was a case of F1 to ‘capture cities’, and bring the sport simultaneously serving to engage new taking itself directly to the masses as an closer to audiences, was reinforced by fans and provide loyal fans with greater audience of 100,000 people interacted face-to-face interviews with fans of access to the sport. with the sport in the UK capital’s differing degrees of avidity for the sport. “There is nothing more incredible Trafalgar Square. “Current perceptions were very much than the sound of a Formula One car,

@SportBusiness | www.sportbusiness.com 19 the smell of the rubber. You feel it through your body, it gives you goose bumps. And if we put that into city centres and touch as many people as possible without any ticket charges, we can start to really re-engage fans and

FORMULA ONE ONE FORMULA bring in new audiences.”

At the festival The London event was bolstered by the fact that 19 of the 20 drivers on the F1 grid attended (Lewis Hamilton was the only absentee), as teams sought to coordinate their marketing activities with Formula One Management. Norman argues this disproves the idea that the sport fails to activate its most valuable assets, the drivers and the teams. “Since I’ve been onboard, at every other Grand Prix we will all sit down together with marketing and communications staff or employees within each of the teams,” she says. “We plan through what we’re going to put our shoulder behind and how we can all work together to essentially grow the sport, because if we all grow the sport it benefits us all.” Attractions at the events include pit-stop challenges, slot car racing and reaction time tests. Norman says the inclusion of music acts Bastille, Little Mix and the Kaiser Chiefs at F1 London Formula One director of marketibg Ellie Norman (Formula One) Live was designed to make the event appeal to a broader audience. But she Data-driven notice in an attempt to limit disruption says the other advantage of this type of The sport is now monitoring the success and assuage the security concerns of the scheduling is that it gives F1’s broadcast of its fan engagement activities during City of London. partners differentiated ‘lifestyle’ content Grand Prix weekends and will apply F1 subsequently added four more that they can programme around their the insights from this research to the festivals to its calendar. The first one coverage of the race. Fan Festivals. The series has been this year took place in Shanghai in April; The presence of F1 personnel and working with real-time experience a second took place in Marseille ahead representatives from motorsport research and planning agency Mesh to of the return of the French Grand Prix. engineering initiatives Formula collect spectator feedback about fan A further one will take place in Milan, Student and F1 in Schools to pass on zones at races and monitor the natural at the same time as the Monza Grand advice and information to youngsters movements of people around the circuit Prix in September while a final festival at the festivals is designed to engage to see which activities they prefer. in Miami in October will coincide with a younger audience and draw on the “We’ve taken a lot of insight out of the Grand Prix in Austin, Texas and sport’s standing as a pathway into the that to really understand what are the go a small way towards offsetting the engineering sector. most engaging activations that we can postponement of a Grand Prix in the The ‘Dare to be Different’ programme take out of the fan zones within a race city until at least 2020. The festivals for increasing female participation in and take that into the Fan Festivals. will take place in different markets from motorsport – set up by the Motor Sports This data-informed approach appears year to year to expose as many people Association and former driver Susie to be bearing fruit. The 100,000 people as possible to the sport although the Wolff – also has a presence at the events who attended F1 London Live made it location of the first four gives some and is a further example of the way the largest non-race event in the 67-year indication as to where F1’s priorities lie. the festivals are attempting to target history of the sport, despite the fact “A big part of having a research specific demographics. it was announced with just two days’ function is audience segmentation

20 www.sportbusiness.com | @SportBusiness FORMULA ONE CHANGE IN FORMULA ONE RACE ATTENDANCES, 2016 TO 2017

Hungarian GP 13.07% Belgian GP 13.38% Russian GP Canadian GP British GP -1.57% -5.06% 20% Azerbaijan GP Monaco GP Japanese GP 0% 138.17% -5.52% United States GP Spanish GP Chinese GP -4.61% 7.85% Bahrain GP 3.57% 25.42% 1.09% Italian GP Mexican GP -0.86% 0% Malaysian GP Singapore GP Abu Dhabi GP 24.51% 18.72% Biggest rise

138.17% Brazilian GP Azerbaijan 3.52% Australian GP 9.12% Biggest fall -5.52% Japan

Source: Formula1.com and clearly we’ve identified where our determine the exact numbers about the with those of the host. As it transpired, historic heritage markets are,” says benefits of the festivals but success will representatives from the Provence- Norman. “For us those markets are the be measured by ongoing research into Alpes-Côte d’Azur region embraced UK and Italy, which have had races on how much fans enjoy themselves at the the idea because it allowed them to the calendar since the inception of the events and the overall growth of the F1 promote the city of Marseille rather sport in the 1950s. They’re really key fanbase and the levels of engagement than the small village of Le Castellet markets to continue and maintain and therein. where the Paul Ricard Grand Prix circuit serve a very passionate fanbase, and is situated. then we have new markets in China Norman suggests the festivals are and North America where there is “Current perceptions treated as a bonus activation opportunity opportunity to grow that fanbase.” were very much centred for its existing roster of sponsors and that they aren’t expected to pay for the Necessary overhead around the sport being additional exposure. She adds that the Although Norman won’t reveal the exact exclusive, inaccessible degree to which sponsors and teams terms of the hosting agreements for and very much focused activate depends on the market. the Fan Festivals, she suggests that the “France is a massively important events pay for themselves across the on business-to-business.” market for Renault, so they put course of a season rather than generating Ellie Norman | director of marketing, everything into the Marseilles Fan an immediate return on investment. Formula One Festival and they brought down and “What we’re seeing is, across the year, did live car runs through 120 years of they are washing their faces,” she says. the history of Renault with racing cars “We’re starting to see increases in race through the ages. attendances, promoters selling out on F1 anticipates that the festivals will “Teams are very keen to be involved, tickets and TV viewing figures going up. also help to boost the economic benefits and also our existing partners within I actually think all of the activity that that hosting a Grand Prix can bring to the sport because it’s an opportunity we are now putting into market and a host city or region. In the case of the for them to be bringing activations activating through sponsors, marketing Fan Festival in Marseille, F1 instigated and experiences to an audience that campaigns and Fan Festivals are discussions about bringing the event potentially they haven’t been able all driving towards shifting the dial.” to the city but ensured that its own to engage with at the race circuit She adds that it is too early to promotional objectives were aligned themselves.” Z

@SportBusiness | www.sportbusiness.com 21 Gambling sponsorship ban threatens Italian rights-holders

Betting sponsorship clampdown Serie A could lose €120m a year Critics call government to combat problem gambling in revenues measures ‘counterproductive’ SERIE A SPONSORSHIP A SERIE

(Getty images)

Andy Fry of its clubs. In a statement, it said: scrambling around looking for sponsors “Preventing companies in this sector from other sectors at the same time. taly’s Council of Ministers last from investing in promotion would I think we could easily see the cost of month moved to ban all gambling cause competitive disadvantages to shirt sponsorships drop by 50 per cent.” sponsorship and advertising – Italian clubs, diverting advertising Garry Dods, managing director of threatening revenues of Italian budgets for our teams abroad.” sponsorship consultancy Wearefearless, Irights-holders, including potentially The ban represents a two-fold agrees the speed of the ban’s wiping €120m ($139m) a year from Serie problem for Serie A. The first is implementation will be a problem A clubs’ coffers. that several of its clubs – including for Italian sports. “This ban is being It is a response to what is perceived champions Juventus – have sponsorship imposed so much quicker than the EU- by law-makers as a gambling epidemic. links with betting firms. Take those wide ban on tobacco, which had years of Italy’s deputy prime minister, Luigi Di away and Serie A believes it could drain notice and time to plan ahead. Valuable Maio, who is spearheading the Decreto €120m a year out of their collective sponsorship agreements take significant Dignità (Dignity Decree), has called coffers. The second is that a ban on time to land given they’re constructed this a “social emergency that needs to betting advertising might decrease the strategically and justified as part of a be tackled immediately”. Twenty-five value of Serie A’s live broadcast rights – long-term brand strategy. Replacing this years after the first moves were made by creating a downward pressure on the enormous revenue hole will not be a to deregulate the sector, Italy is now cost of ad airtime. quick fix and could prove catastrophic estimated by H2 Gambling Capital to David Peters, founder and director of in the short- to medium-term.” be the world’s fourth-largest gambling consultancy The Value Xchange, expects While soccer is far and away the most market and the largest in Europe. the ban to hit Italian soccer pretty hard dependent on betting sponsors in Italy, Serie A has expressed its “extreme in the short term: “Gambling firms there is a potential secondary impact for concern”. Like other major European have massively inflated the cost of other popular sports such as basketball, football leagues, the betting industry shirt sponsorships, so Serie A will be in volleyball, rugby union and cycling, adds is a major segment for sponsors this position where half the clubs are Peters. “Traditional soccer sponsors

22 www.sportbusiness.com | @SportBusiness SERIE A SPONSORSHIP that have been squeezed out of the sport GROSS GAMING REVENUES BY COUNTRY, 2016 (€BN) by the betting firms may be able to find shirt deals. But that, perhaps, means 18.8 18.4 there will be a smaller pool of sponsors for other sports.”

Legal options 11.2 Under the decree, a ban on gambling 10.0 8.6 sponsorship agreements and “any other type of communication of promotional content” becomes applicable from January 1, 2019. There is some leeway for pre-existing sponsorship deals, which can run up to mid-July 2019, though Di Maio has confronted clubs that are trying to Source: H2 Gambling Capital secure deals with betting sponsors before the law becomes official. The GAMBLING SPONSORSHIP & SERIE A deputy prime minister has said new partnerships, like those between Lazio and Marathonbet or AS Roma and Betway, are “not worth the paper they are written on”. The Council is a powerful law-making body, so its decision to introduce the ban carries a lot of weight within Italy. But it does need to introduce the ban to the Italian Parliament over the next two months for approval. Opponents of the ban are weighing up their legal options. If nothing is done to modify the ban, they may challenge it as anti-constitutional. In a recent blog from law firm Squire Patton Boggs, senior associate Alastair Purssell and trainee solicitor Jack Blakey argue: “The Italian constitution guarantees a freedom of enterprise, which enables licensed companies in Italy the ability to advertise in the entrepreneurial about creating assets virtually for international audiences. country…the ban could breach Italian and rights that offer a unique advantage “Secondly, regulators could apply constitutional protections and thus over competitive alternatives.” pressure on international rights owners gambling operators may be inclined to It could also create opportunities to employ DRT in a blocking sense to escalate this issue before Italian courts.” for digital replacement technology, keep their own markets free of content There is also an argument that which would allow clubs to continue that is ‘unfriendly’ in a regulatory sense. the Council should have given three showing betting sponsors’ branding on This calls into question who would months’ notice of the ban to the broadcasts outside Italy. cover the cost, but it would be a very European Commission (EU Directive Charlie Marshall, chief operating interesting debate to hear played out.” 2015/1535), so the ban may still fall foul officer of leading virtual advertising Could clubs and sponsors see a way of EU-level law. technology provider Suppenor, says: around the law? Purssell and Blakey If, however, the Decree does become “I think there are a couple of potential conclude that it is unlikely: “The law it may have some other notable implications. Firstly, rights owners legislation will impose penalties of a knock-on effects. It might, for example, could still benefit from betting partner minimum fine of €50,000 or five per force rights-holders to reintroduce income by using DRT to appease their cent of the value of the advertisement some rigour to the way they work with own market regulators by leaving in- or sponsorship. However, the fine is sponsors – rather than simply taking venue and domestic broadcast perimeter imposed against ‘each violation’, which the gambling sector’s easy money. boards free of betting sponsor content, could accumulate a burdensome sum “Clubs,” said Dods, “will need to be whilst inserting betting partner branding over the period of a season.” Z

@SportBusiness | www.sportbusiness.com 23 SM Ad 210x265.pdf 1 28/8/2018 6:19 PM

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K AUDIENCE RETENTION US sports tweak rules and presentation to keep distracted audiences hooked

Leading US sports are tweaking The NBA, MLB, NFL and Nascar Data is informing the changes, their on-field rules as they tackle are among the sports to introduce including new measures such as falling TV audiences changes in the last year excitement ratings

(Rob Foldy/Getty Images)

Kevin McCullagh Changes included splitting races into however, been able to get any agreement three segments and awarding points from players for the most significant hen the NBA cut the to drivers based on their position at change it was considering: a ‘pitch number of permitted the end of each segment, to encourage clock’, putting a limit on the time a timeouts last season it drivers to compete hard for the full pitcher has to throw the ball. joined the team of US duration of each race. Nascar had been Last year, NFL commissioner Roger Wmajor leagues tweaking their rules and planning changes to its competition Goodell went so far as writing a letter presentation to keep hold of distracted format for some years, but was to fans to address complaints about audiences. reportedly prompted to move forward the number of commercial breaks per Driving these changes is the desire with them by broadcast partners Fox match. NFL games take timeouts to to keep fans watching. Underpinning and NBC, who were concerned at the allow the commercials to run. “I hate them is the idea of today’s fan as time- data they were seeing on declining that, too,” Goodell wrote in reference poor and distracted. Enabling them television audiences. to the particularly heavy sequence of are new types of data being employed MLB introduced a range of ‘pace of breaks that follow touchdowns and in increasingly sophisticated ways by play initiatives’ in 2018, following a 2017 subsequent kickoffs. For the 2017 leading rights-holders. season which saw its highest average season, commercial breaks per game Nascar went much further than game time in history – three hours, five were reduced from 21 to 16, although the NBA, significantly changing its minutes. This figure has been creeping they were extended in length to competition format for the 2017 season up over the years – in 1981, it was two maintain advertising inventory. The in an effort to make races more exciting. hours, 33 minutes. The league hasn’t, league also introduced split-screen

@SportBusiness | www.sportbusiness.com 25 26 26

AUDIENCE RETENTION worked withJay [Kaufman, vice- senior quantitative support behindthat,we analytics, says: “Trying to put basketballpresident, strategy & before makingitsmove. whatwasactuallyhappening discover itsdataanalysisteamleague engaged to oftheissue, acknowledgement said. about,” Silver that’s anissuepeoplehave talking been games foryears. “SinceIwasakid, of oftimeoutsattheend the number relationships.” televisionexist inourconventional of measuringinterest thatjustdon’t relationships, wehaveconsumer ways over-the-top products andourdirect-to- portions ofthosegames. Through our are watching thosegames,andwhat but usage.We longpeople how know we’re ableto monitor notjustsales, our onlineproducts, like LeaguePass, told strategy+business magazine:“With AdamSilver April, NBAcommissioner available to guidedecision-making. In typesofdatahavebrand new become data.Inis informedby somecases, tinkering istheextent to whichit contemporaryAnother twistto the Data-enabled toseem bepreferring”. formatsthatconsumers innovative of thesechangesto align withthese goingtothey’re needto make some really seeingthatnow, more thanever, breaks. are Ithinksportsproperties having by hindered to goto commercial The Netflix’s ofthisworldaren’t coming withformatsthatare ad-free. spans,andcompetition attention narrowing consumption ofconsumers, hearsaboutthechanging that everybody basedonthenarrative more prevalent, is“becomingmore and presentation Sports says, tinkering withrulesand consulting, atresearch firm Nielsen client Kirsch,vice-president, Brendan –often than ever As commercial-free. more distractions andoptions offers inamedialandscapethat audiences first time. oftheaction–for alongside aview adsair –where advertisements www.sportbusiness.com | Evan Wasch, vice- NBAsenior waswidespread thoughthere Even NBA fans complaining had about been todayThe concern isretaining @SportBusiness “I thinksportsproperties seem tobepreferring.” seem US firm Thuuzuseslivedata match-ups( to createameasureoftheexcitement ofsporting there was some diminution of the quality wassome diminutionofthequality there the initialbasketball going inthat view ofenjoyment. their level watch agameandturndialto indicate subjects where lab-based experiment aspects ofthegames.” Dial-testing isa testing to ofdifferent track enjoyment our LeaguePass dial- product, even by-minute on ratings, theviewership and histeam using...things like minute- globalresearchpresident, &insights] are really seeingthatnow, consulting, Nielsen Sports formats thatconsumers with these innovative with theseinnovative of thesechangestoalign going toneedmakesome more than ever, they’re they’re more thanever, Brendan Kirsch|vice-president,client “That dataultimately corroborated looking down at the second-by-second atthe second-by-second looking down more granular,” Kirschsays. “We’re and lineartelevision, dataisbecoming from onechannelto another. move audiences and informationonhow streams, on lineartelevision andOTT ratings data, suchassecond-by-second increasingly detailed are offering Nielsen maintained. time available was forcommercials from 18to 14.The total amountof oftimeouts number and intheoverall the lasttwominutes from three to two oftimeoutseachteamnumber hasin changes includedreductions inthe during timeouts–happy. Thefinal breaks –whoruncommercial partners waskeepingbig challenge television –toreferees figure out thechanges. A coaches,players,managers, and included team general owners, competition committee –which team worked withtheNBA’s ofstoppagesnumber late ingames.” youhaveof theproduct when that “Both from an OTT perspective perspective “Both from anOTT Audience measurement companies like Armed withthedata,basketball Thuuz) AUDIENCE RETENTION level across both platforms...which fouls and their severity – as part of more resources, time and energy against hasn’t been done historically. Linear ongoing monitoring of how the game is going through it and understanding TV ratings were historically at the developing. what it says, so that we’re able to turn minute-rounded level.” This is allowing Damani Leech, the league’s vice- around and make decisions that are Nielsen and clients to “really isolate and president, football strategy and business beneficial to our products.” attempt to understand micro-moments development, says: “This is the kind of within the game that are impacting on thing we will use internally to better audience retention...so [they are able understand the state of the game and “Our service is based on to understand] what may be causing how the game is trending, and also to delivering to the sports somebody to tune away, and how long help us drive policy change. industry excitement ratings, they are tuning away for.” “So if we see things trending in a US sports have been testing viewer certain way, we need to ask ourselves headlines and notifications responses to games in laboratories in what sort of playing rules, what sort of that drive tune-in” recent years. The dial-testing mentioned policies, what procedures do we need Warren Packard | co-founder and chief by the NBA above is an example. Last to implement to make that number go executive, Thuuz year, Bloomberg reported the NFL a different direction. That’s how we see ran experiments tracking viewer eye ourselves using it once we feel like the movements as they watched games underlying metric is in a good place.” in mock living rooms. This is not an As significant as the new data that’s “It’s a conversation that we’ll always entirely new phenomenon – Kirsch says becoming available are the approaches have about how far is too far when it most major US sports will have at least to using that data within organisations. comes to innovation on the court,” he experimented with such lab-based work Industry leaders like the NBA are continues. “We don’t want to push it in the last five or more years. spending more time and resources too far to the point where we alienate The NFL is also a client of Thuuz, a analysing data and carefully building it our core fans who appreciate the US company whose proprietary system into their decision-making. traditional aspects of the game. But if aims to rate the excitement value of Kaufman says: “Equally as important you look historically at the game, a lot sporting events on the basis of the pace to the new data and tools that are of the innovations that have happened of the action, competitive balance, associated with that...is the approach have been pretty transformative. So, for novelty, shifts in momentum, social and mindset we are taking...in terms example, the three-point shot, which buzz and the competitive context. of becoming more sophisticated in we believe drives a ton of interest in our “Our service is based on delivering to analysing the data.” game today, the advent of the shot clock the sports industry excitement ratings, Wasch adds: “It’s not necessarily that – those are all pretty significant changes headlines and notifications that drive there is new data, but we are putting to the game.” Z tune-in, especially for casual fans and especially around events that fans were otherwise not planning on watching,” says Thuuz co-founder and chief executive Warren Packard. “Fans want to watch their favourite teams or the game that everyone thinks is going to be exciting, and then they often miss the games that are the most exciting. The approach we’ve taken to excitement is to actually model the sports themselves, and in real time pull in the information that describes the gameplay. We are taking an objective approach to measuring excitement by looking at what’s happening in the game.” The NFL is Thuuz’s first rights- holder client and is using the excitement rating in a different way: to help determine the quality of play during its games. The league already does this using other data – such as points scored, yards gained, accuracy of refereeing decisions, number of (Corey Perrine/Getty Images)

@SportBusiness | www.sportbusiness.com 27 FIBA

World Basketball Summit 2018 |

In association with Building China’s basketball legacy

eaders of world basketball and the business of sport will be in Xi’an, China, on October 3 and 4 to take part in the Linaugural World Basketball Summit, a ground-breaking event which promises stimulating, thought-provoking and practical discussion on key issues around the sport as China prepares to host next year’s Fiba World Cup. According to Fiba secretary general Patrick Baumann, who will be among the keynote speakers, the World Basketball Summit will be an important part of China’s Fiba World Cup legacy.

“Bringing the first World Basketball Wasserman chief executive Casey Wasserman will be among the high-profile speakers(Mark Runnacles/Getty Images) Summit to China underscores Fiba’s commitment to supporting the growing which will help our federations and and around basketball. Chinese basketball family and helping other stakeholders to achieve their It covers the role of the federations the Chinese Basketball Association in development and business goals. That in which are developing the sport; the growing the sport in China. The event will turn helps grow the sport and makes it responsibilities and opportunities emphasise the importance of China as a stronger worldwide. As the CBA pushes for clubs which have a season-long member of the global basketball family further the reforms in basketball, media presence; sponsorship; the and is one of the legacy projects we are Fiba looks forward to bringing more importance of technology in engaging investing in for the future,” he said. knowledge and education to China to with young fans; basketball’s place in NBA commissioner Adam Silver and improve the level of players, coaches, society and its power to change lives; deputy commissioner Mark Tatum will referees and club managers. and the emergence of 3x3 basketball join Casey Wasserman (chief executive “It is also a perfect prelude to the as a powerful building block for the of Wasserman) and Philippe Blatter, Fiba World Cup 2019, which is set to be successful future of the sport. (chief executive of Infront Sports the ultimate celebration of international “The programme has been designed marketing and vice-president of Wanda) basketball. With 32 teams taking part to cover many of the subjects which are among the high-profile speakers at the for the first time there will be 92 games of the greatest importance to all those World Basketball Summit which sets out over 16 days between August 31 and building the future of basketball in to explore ways of ‘Building the Future September 15 in world-class arenas in China,” said Baumann. of Basketball Together’. eight Chinese cities. “This World Basketball Summit will “This is an important event for our “The city of Xi’an and the whole of attract speakers and delegates from sport and I am delighted that it is being Shaanxi Province share China’s national all continents. It is a truly global event hosted in Xi’an, one of China’s most passion for basketball and I am grateful which reflects the tremendous growth historic cities where the passion for to the City for hosting the World being experienced worldwide. The basketball burns bright,” said Baumann. Basketball Summit, which helps cement timing is perfect because at the next “This is a time of great opportunity the strong relationship between the World Cup we will begin to see the for both Chinese and global basketball. China and our sport,” he said. positive results of changes we have The World Basketball Summit will The Summit programme is built introduced to our competition system capture the spirit of excitement around around eight complementary content to ensure maximum exposure for the sport right now and act as a forum blocks, each focusing on a group of national teams and the primacy of the for sharing knowledge and great ideas, issues at the heart of the conversation in Fiba Basketball World Cup.

28 www.sportbusiness.com | @SportBusiness In association with

“National teams are key to the future Sponsorship because of ethnic conflict, warfare popularity of basketball. They engage Successful commercial partnerships or gang violence. The panel will with fans and inspire youngsters to play in sport are built on near-symbiotic discuss how the focus on basketball- FIBA the game more than anything else. relationships between brands and related activity contributes to healing “At the same time, we are seeing the the competitions, teams and athletes and resolution as well as personal continuing rise of 3x3 basketball which they sponsor. Questions to be asked development as an educational tool. has proved a major success since its include: what can basketball properties introduction little more than a decade worldwide do to build more productive, The Future ago. It has its own World Cup, a World profitable and enduring relationships With 3x3 grabbing the imagination of a Tour and, in addition to being part of with sponsors, and how does the sport new generation, panelists discuss the the Youth Olympic Games, is now part get a bigger slice of growing sponsorship impact of basketball’s exciting street of the programme of the 2020 Olympic budgets? variant, its future development potential Games in Tokyo. and the relationship to the ‘Mother “It provides thrilling action which China Sport’ in the years ahead. Z makes it a magnet for young people. In It’s no secret that China’s sports many cases it gives them their first taste sector is growing spectacularly, and SELECTED SPEAKERS of the game and allows them to develop government policy is driving the growth. Patrick Baumann Fiba Secretary essential skills as players.” This session looks at how China’s General The role of federations and their basketball development program is national teams and the development of creating sporting, commercial and social Adam Silver Commissioner, National 3x3 are just two of the key subjects to opportunities both in its domestic Basketball Association be covered during the Summit, which market and abroad. Mark Tatum also includes a programme of social and Deputy commissioner, networking events for delegates. Leagues and Clubs National Basketball Association “I am really looking forward to the National leagues and their clubs Casey Wasserman chief executive, opportunity to meet so many of the provide season-long engagement Wasserman people whose expertise in fields ranging with fans and drive national media Philippe Blatter President & chief from technology and media to coaching coverage. But with the cost of operating executive, Infront and President & and development are shaping our sport successfully soaring and growing vice-president Wanda Sports Group and ensuring that basketball continues competition for fans’ time and money, to grow,” Baumann added. how can basketball build and maintain Caitlyn Chen Vice-president, Tencent “The 21st century sporting landscape entertaining and competitive national Craig Zanon Head of Global is fascinating but complex and leagues with strong and stable club Basketball, Nike constantly changing. Basketball in China brands that provide a talent pipeline for Erick Thohir President of SEABA is proof thereof. By bringing these national teams? (Southeast Asian Basketball Association) world-leading experts together with different stakeholders in our sport to Technology and fan engagement Andrei Kirilenko Commissioner of the Russian Basketball Federation. discuss the opportunities and challenges Our experts examine how basketball we face, we aim to equip everybody with gets ahead and stays ahead of the curve Fan Zang Controller, CCTV the insight and knowledge they will as young consumers look to new ways Anti Zitting Chairman, Finnish need to play a part in building the future of watching sport and entertainment, Basketball Association. of basketball together.” focusing on the role being played by Caroline Baxter Tresise Sport policy fast-developing media and technologies ON THE AGENDA specialist, Unesco and co-ordinator, in maximizing engagement with the fans Asia-Pacific Youth and Sport Task Force and, consequently, the next generation Development of players. Karen Doubilet Managing director, Representatives of national federations Peace Players International discuss effective basketball development Society Vlad Constantinescu Founder, strategies covering their roles; A focus on basketball’s proven power Sport Arena. schools and colleges; expectations on to change lives, drawing on examples For further information go to governments; achieving the best ROI; and which illustrate the success of projects www.fibawbs.com the development of young pro players. in areas where society is suffering

@SportBusiness | www.sportbusiness.com 29 30

MILWAUKEE BUCKS A the fundingto stadium anew develop to stickortwist. hehadto Either find then-owner, Herb Kohl, waswhether weneed.” kinds ofamenities house spaceyouneed,doesn’thave the “It doesn’thave thesortofback-of- thousand square feettoo small,”hesaid. hundred isafew the league,thisarena Center home. thought aboutitsantiquated Bradley he lettheteam exactlywhathe know just fivemonthsbefore hissuccession, ontheMilwaukeean event lakefront inlatecommissioner 2013.Speakingat Ben Cronin festivals andevents concerts, calendarof designed to support sitearound newstadium Thirty-acre www.sportbusiness.com | a ‘realestateandcontentcompany’ Move to Forum Fiserv seesBucksbecome The conundrumfortheBucks’ “Compared to in arenas modern other prepared toprepared take asNBA over Bucks onnoticeashe theMilwaukee time putting didn’twastedam Silver any @SportBusiness arena, matching $100m from the new matchingarena, $100m from thenew to money of hisown build thenew in2014,andgifted Edens $100m(€86m) fund investors LasryandWes Marc want theteam to fleeto state.” another finance that,”Feigin says. didnot “They able to coordinate thatandbeingableto passed through thelegislature, being take that ontheresponsibility ofgetting would have to and arena buildthenew who purchased theMilwaukee Bucks in theprocess. hundred milliondollars forsaking afew didn’trelocate owners new –mostlikely the team upforsaleontheconditionits the state forhissolutioninwhichheput Feigin Kohl explains how waslaudedin Peter president The Bucks’current theteam.face theprospect ofmoving in oneoftheNBA’s markets smaller or and contentcompany’ basketball operation to a‘realestate Team transitions from apure Kohl soldtheteam to New York hedge- thatanybody “It was arequirement

accommodate roughly 100outdoor builtto that surrounds ithas been plaza andentertainment district home gameswhiletheeight-acre to theBucks’ and events supplement sweat throughout theyear. can withanassetthey them provide team theirgeographical locationand by the economichandicapplacedon designedtodeal –hasbeen overcome firm Fiserv’s 25-yearnaming-rights Fiserv Forum localfintech following calledthe –now venue That new developer Basketball teamto real-estate demands. onSilver’s itcoulddeliver how cost, theteam couldstartto thinkabout $524m venue’s ofthenew remainder Senate later abillto approved the cover group. theWisconsin ownership When increase demand limited innewvenueorderto Luxury suiteinventory deliberately It will support a calendar of concerts It ofconcerts willsupportacalendar (Jeff Phelps/MilwaukeeBucks ) MILWAUKEE BUCKS festivals, food and beverage events, concerts, farmer’s markets and an ice rink. In a further development, the team will also rent out residential and commercial properties on the wider site. “We’ve gone overnight from being a basketball club to a real estate company and a content company and a footfall company,” says Raj Saha, the new arena’s general manager. “I think people are so sick of me saying two things: ‘content is king and footfall is our friend’. We have to energise this district

365 days a year.” (Jeff Phelps/Milwaukee Bucks) The Bucks rent the 30-acre site – including the stadium – from the state, albeit for a nominal fee of $1m per year. of 40 such events annually – which he The executive team considers the arena Their lease runs for 30 years, with the argues is a complete departure for a and the outdoor plaza as two separate provision for two five-year extensions. market that “has never seen more than pieces of property to activate, but on The team is responsible for all 12 or 13 top-quality concerts a year”. game day Saha says the most important operations and maintenance expenses thing is the connection between the but retains all of the profits (or losses). “I think people are so sick of me interior of the venue and the district The Bucks’ executive team worked outside. Thus, the arena incorporates with the CSL division of the Legends saying two things: ‘content is large areas of glass frontage and a stadium consultancy to create a king and footfall is our friend’. mezzanine-level club lounge overlooking revenue model for the new facility We have to energise this a giant internal atrium and the plaza. “It’s that maps out potential sponsorship, all open and people will be intertwined event, seat and plaza activation district 365 days a year.” between events, seats, concessions and opportunities. Key to the business plan Raj Saha | general manager, Fiserv other experiences,” he says. is the ambition to create a universal Forum The decision to place food and entertainment space that appeals to beverage concessions on the outer audiences outside Milwaukee. walls of the arena has allowed for the “We did a lot of research on travel The Bucks will rent out 100 construction of open concourses around times. One of the distinct advantages residential properties on the wider site the lower and upper seating tiers. “If we have is we are about 40-50 miles and carried out social research into the you leave your seat and go out to the from the border of Illinois and the sort of amenities that would encourage concourse you are still in the arena and outer counties of Chicago, which has a people to live in the district. “We’ve can still watch, see, hear and smell the massive population we’ve never really done a lot of due diligence about how arena from the rail,” says Feigin. targeted as a prospective fanbase or we evolve these 30-plus acres into a The distribution of seating reverses event participant base,” says Feigin. neighbourhood,” Feigin says. These the Bradley Center’s counter-intuitive “We understand that if someone studies informed the inclusion of a seating plan, which incorporated 11,000 lives a six-hour drive away they might supermarket, gym and “safe public seats in its upper tier but only 6,000 not come to 41 Bucks games but we areas” in plans for the district. seats in its more expensive lower section. can create fandom in a variety of Pazaras says the residential areas The 17,500-seat Fiserv Forum flips this ways,” adds Matt Pazaras, senior vice- won’t be a big revenue driver: their layout, including 10,000 seats in the president, business development and main function is to generate footfall in lower bowl, 6,000 in the upper tier and strategy. “They might come to a handful the 30-acre district. A further four city 1,500 in a premium level. When the floor of games, they might watch us on TV, blocks are to be developed once an area of the arena is used for concerts it will they might buy merchandise and then housing the old arena and construction have an overall capacity of 18,000. we start to see results there.” equipment for the new venue are In addition, the new venue contains Twenty concerts are so far scheduled cleared. Here the team hopes to attract 34 luxury suites, down from 44 at the for the main arena to attract both commercial tenants to generate even Bradley Centre – a deliberate choice by the local populace and this wider more footfall. the Bucks to maximise demand. demographic, and the club has started “That, again, creates density on a day “We wanted to create a higher an outreach programme with promoters with no event on,” he says. “People are premium on them, finish them stronger to make the arena a destination for big coming and going to work, people are and create less of them, just to create touring acts. Pazaras estimates the venue eating lunch – we need it to be active all demand,” Feigin says. “One of the will eventually be able to offer a calendar the time.” interesting things we found is whether

@SportBusiness | www.sportbusiness.com 31 32

MILWAUKEE BUCKS in theNBAforthis metric,andison season tickets, one ranking itnumber season. Theteam hassold2,500new are soldoutforthecoming arena team walkoutinto asthey thearena. a humantunnelandinteract withthe to more willbeallowed paid even form of theplayer Fans entrance. whohave steps from thelocker rooms atthebase a longcounter at the rear, located just –thatfeatures ofthearena three rows to inthefirst about450peoplesitting creation ofanevent-level club–open Manchester City’s‘Tunnel Club’inthe groups of180. groups of20-30peopleormuchlarger can be reconfigured to incorporate small loft spaceswithretractable wallswhich suites. features adaptable arena Thenew flexible approach to thedesignofclub that thisledtheteam to take amore terms yourpricingcango”and ofwhere 600,000 population“placeslimitsin thesame.” never they’re and then orten-year five,seven contracts, they’re forthefirstphase,whether perfect It’s arena. usually orbuiltanew arenas suite renovated they product their when their team, overbuilt almosteverybody football team in thecountryorNBA we thinkit’sthemostsuccessfulNFL Milwaukee BuckspresidentPeterFeiginshowsofftheFinservForum interior(JeffPhelps/MilwaukeeBucks www.sportbusiness.com | Suites andclubspacesforthenew Feigin recognises thedebtto He explainsthatMilwaukee’s @SportBusiness “The buildinghassomany benefits, they cancreate they benefits, thatemotional teams andgivingaccessother withhometown partnering but by abouttheir banks necessarily emotional toentrance thestadium. the locker rooms andhasadedicated sponsored theevent-level clubsuite by fortheteam’spartner has arena, former Bank ofChicago,thenamingrights A goodexampleistheway BMOHarris “physical core assets”tonew sponsor. and suite partners configuration offers Pazaras stadium explains that thenew Sponsorship assets Center.the Bradley more ticketing cent 35 per than revenue Feigin says willgenerate arena thenew onlastseason. point improvement at a92-per-cent rate renewal –afour- course to sell10,000full seasontickets whether it’s signage, whether it’ssignage,whether whether it’shospitality, whether Milwaukee Bucks more assets to leverage, more assetstoleverage, it’s IPTV, it’sdigital,” whether Peter Feigin |president, “They’ve saidto“They’ve me,peoplearen’t

) has been stark:Feiginhas been says annual prospects on theBucks’commercial time.” have alotmore peopleandspace to demographic wider market to, sowe like a –itjustgivesthem familyshows’ said: ‘welike theBucksbutwealso thatweworkwithhavepartners space andalsoaudiences. Now there’s That givesusmuchmore physical building, we control allthecontent. now additional inventory. andtheplazaoutside,createsarena and festivalprogramme, bothforthe the banksponsors. Equally, theconcert messages, forexample,intheclubareas so theteam couldchooseto play BMO dice” digitalsignageanyway itwants, the Buckscontent team to “sliceand Fiserv Forum. Pazaras says thisallows networkinthe (IPTV) Protocol TV with theinstallationofanInternet addressed and digitalsignagehasbeen College ofWisconsin. Coors andtheFroedtert &Medical three beingJohnson Controls, Miller forthestadium–other partners are customers oftheirs.” do isgivespecialaccessto people that likeconnection, sopartofwhatthey to The impact of the impending move move The impactoftheimpending atenant“Before wewere ina Center’sThe Bradley lackofstatic The bankisoneoffourfounding MILWAUKEE BUCKS sponsorship income has doubled over the stadium is complete. “Commercial Erpenbach told the USA Today network. the past two and a half years (work real estate has nothing to do with Feigin defends the building’s reliance began on the arena in June 2016). this naming rights deal,” says Feigin. on public subsidies by arguing that “The building has so many more “As a group we’re always open to the multi-purpose nature of the new assets to leverage, whether it’s opportunities but as it pertains to building will boost the state’s tax take. hospitality, whether it’s signage, Fiserv, we didn’t discuss anything, and “You’ve got people building and you’ve whether it’s IPTV, whether it’s digital,” we didn’t make it an element of the got land being developed, which are real he says. “The new arena actually gives naming-rights deal.” estate taxes, and then you’ve obviously us the content to be able to increase The deal does, however, make it more got income state taxes, primarily for the revenue against it.” likely that the company will remain NBA players themselves who have a large The cornerstone of the stadium’s based in the region. The fact that the payroll tax, as well as the 300 full-time contracted revenue is the 25-year sponsorship comes less than a year employees we have and the 1,000 part- naming-rights deal struck with Fiserv after Wisconsin lawmakers agreed to time employees. towards the end of July, just a month give Fiserv up to $12.5m in tax relief “The maths in everything is keeping before the grand opening. The financial if it kept its headquarters in the state an NBA team in the city which obviously terms of the deal were not made public, did not sit well with some who argued generates tens of millions of dollars in but it has been reported at between $6m that the partnership represents a tax income in a given year.” Z and $7m a year. further state subsidy. “Maybe the state Although Fiserv is a local firm with can sell naming rights on that new To read a Q&A with Peter Feigin about offices in Brookfield, Wisconsin, (Fiserv) headquarters and get some the naming rights deal go to the online Feigin thinks the deal rewards the of the money back,” state senator Jon version of this article. Buck’s positioning of the arena as an international platform. “I think they feel that attaching themselves with a global NBA team is one of the next steps FUTURE-PROOFING THE FORUM in awareness and growth around the world,” he says. Robert Cordova, chief technology newer technologies.” The firm’s technology is used by officer for the Bucks, thinks the greatest Key to the arena’s operation is its banks, merchants and billers to move difficulty in designing a new stadium network of about 250 miles of fibre money around and allows customers to is future-proofing it against changes in ethernet, says Cordova. “Over that same fibre we carry the wireless connectivity, check their balances online, which leads technology. In particular, he thinks the mobile industry is at an ‘inflection point’, we carry voice-over-IP calls, we carry inevitably to questions about whether where cellular networks and 5G will the data for control, we carry all of the it will activate by streamlining the become of such a high standard that digital sign information that’s going up payment system in the new arena. mobile operators will be able to offer on the eight hundred-plus digital signs “That is really one of the things unlimited data packages and end-users around the arena.” we’re looking forward to,” says Feigin. will begin to move away from using Wi-Fi. The network will also transmit video “How do we work with Fiserv and really “One of my main goals is to make from broadcasters and the Buck’s in- use the arena, the retail, the food and sure that the technology in the arena is house production room and an adjoining beverage and our core businesses as extensible,” he says. “We’ve taken great AV data centre to screens around the pains to make sure that we have a full stadium. Smartphones will have access pilot programmes and test labs for new distributed antenna system for cellular via Wi-Fi or cellular networks to replays ways to transact?” connectivity and also we have a full Wi-Fi and other services through the team’s The Fiserv brand will feature network there as well.” mobile app. prominently on the exterior façade, To cover current technology Cordova says the technology was playing surface, rooftop and throughout requirements, the technology team so advanced at the time the team the facility. Feigin describes the has integrated Wi-Fi antennas into the was designing the stadium that company as the team’s pre-eminent handrails of aisles around the stadium. manufacturers hadn’t even started business partner with access to all of Cordova prefers this to the solution of making the equipment yet. But it integrating them below seats because he also represents a less fussy solution team’s assets, including the players, is uncomfortable with the idea of having compared with the RF modulated buildings, hospitality, and, of course, an RF transmitter so close to customers coaxial cabling that broadcast video is branding on the team’s broadcast and because it will be easy to adapt traditionally carried over. games. The ‘Fiserv Forum’ name is a when 5G becomes more mainstream. “There are actually fewer moving parts nod to the fintech firm’s annual client “We can leverage all of the Wi-Fi with this sort of all-IP-based design and experience event. antennas down the down the road to system,” he says. “And with less moving Contrary to some reports, the deal really become those 5G ones as well,” parts there’s less mean-times to failure. doesn’t include an option for Fiserv he says. “It’s important to think of this In many ways it’s easier to debug and as an extensible thing so you don’t maintain and obviously during a live to move into the commercial district have to do a forklift upgrade of your production event you want it to be as that the team plans to build on the technology footprint to accommodate easy as possible to troubleshoot.” adjacent plot of land now that work on

@SportBusiness | www.sportbusiness.com 33

Answering the most important questions in the sports industry A preview to SportBusiness Summit in Miami

DATA-DRIVEN OPPORTUNITIES IN GLOBAL SPORTS 360 words SPORTBUSINESSSUMMIT 2018

he inaugural SportBusiness which provide benchmarks for the future. Summit marks another The format of the SportBusiness milestone in our organisation’s Summit reflects our goals in the US: entry into the North American providing a global perspective with data- Tmarket and the launch of a new standard informed analysis – infused with insight of sports business data, news and from the key decision-makers. analysis for the US market. Case studies of best-in-class business SportBusiness has served clients in the strategies can be taken from companies United States since its launch in 1996, all over the world and we have amassed but the opening of our office in Miami a stellar line-up of international sports earlier this year and the appointment of executives to talk through a range of key US-based editorial staff responsible for issues affecting all stakeholders in the tracking and analysing the development Ben Speight sports industry, including how to engage Chief Executive, of the market is a watershed moment. SportBusiness and grow fan bases; embracing the new Historically, North America has broadcast platforms; understanding how always been a leader in the sports many respects, but its sports companies technology is not only disrupting but business. It is where game-changing are no longer the only players in the game. enabling change; amongst many others. decisions are made and ground-breaking SportBusiness aims to help US-based We’ll also be informing the discussion deals are done. In terms of sports media sports businesses to perform even more with exclusive data insights prepared by and marketing, the US was generally effectively in an increasingly global our expert in-house team using our own celebrating a home run while the rest of marketplace by providing a trusted proprietary market-leading data from our the world remained at first base. source of data and analysis from around product portfolio. But the world of sport outside of the the world. Our data helps businesses The next few pages preview the US, most notably within Europe, has to make the right decisions at the right Summit. We look forward to meeting new caught up, and changing technology and time. It helps businesses identify trends, and old clients in Miami and if you can’t economic development opens up fresh understand how fans/customers differ join us, we’ll be sharing the key insights opportunities in new markets on every from market-to-market and delivers in our daily news and social media continent. The US remains dominant in financial data about completed deals channels on the days of the event. Z

KEYNOTE SPEAKERS

Javier Tebas Charlie Stillitano Terrence Burns Charles Baker President, Executive Chairman, Executive Vice-President, global Partner and Co-Chair, LaLiga Relevent Sports sports, Engine Shop O’Melveny’s Sports

@SportBusiness | www.sportbusiness.com 37 The evolution of content SUMMIT2018 Streaming partnerships, OTT platforms and the promise of enhanced audience data; and how the US’ legislation of sports betting has affected digital platforms.

Streaming commercial opportunities provided by being presented on digital platforms. partnerships digital disruption and the evolution of They will also explain how betting data with social the media landscape. is being used to better understand media Laura Froelich, senior director, audiences, refine the presentation of companies head of US content partnerships at live sport and how betting data could and the Twitter, will talk about the social media be integrated into the sports content of development platform’s growing presence in sport the future. SPORTBUSINESS SUMMIT 2018 SUMMIT SPORTBUSINESS of direct-to- and the powerful influence of social Lastly, Wayne Sieve, executive MODERATOR: consumer media on the sector. She will talk about vice-president at Thuuz will talk about Ben Cronin sports platforms Twitter’s multiple relationships with how the company’s data insights have are allowing rights-holders to develop major rights-holders like the PGA helped rights-holders and broadcasters a two-way relationship with their fans, Tour, MLB and sports broadcasters like to market their content, automate gather increased levels of consumer ESPN, and explain what the platform highlights and refine their content data and develop a much more nuanced has learned from these partnerships. offerings. Thuuz has worked with clients understanding of their audiences. She will also talk about the way data is like the NFL to identify where their This offers them the chance to tweak transforming sports presentation and content fails to excite audiences leading formats, evolve the way they present marketing and the way sponsors activate the league to implement rule changes their content and target sponsorships around major events. informed by its data. Most recently it more effectively. A senior executive from Sportradar worked with Fox Sports to create a fully- In this panel Ben Cronin, editor of will talk about the impact of US betting automated Fifa World Cup highlights SportBusiness Professional, examines the legislation on the way US sports are generator. Z

SPEAKERS

Laura Froelich Wayne Sieve Sportradar Senior Director, Head of US Content Executive Vice-President, Senior Executive Partnerships, Twitter Thuuz Sports

Laura leads US content partnerships at Wayne is executive vice-president at The Sportradar group is an international Twitter, bringing exceptional content from Thuuz Sports, an AI-based metadata organization, employing over 1,900 people sports, news and entertainment publishers and content curation platform for Sports in more than 30 locations around the to the most receptive audiences in real- content distributors. In this role, he world. time, while driving reach and revenue for oversees all commercial relationships Its rapid growth is driven by these strategic partners and Twitter. including those with leagues, media technological innovation and an Prior to joining Twitter in February networks, and production companies. understanding of its clients’ business 2014, she spent five years at CBS A native of Silicon Valley, Wayne has needs, with a commitment that makes Interactive, devising product marketing worked at the intersection of sports, Sportradar the trusted partner of more and monetization strategies for premium media, and technology for the past 22 than 1,000 companies in over 80 countries sports content including NCAA March years with executive roles at EverSport, and occupies a unique position within the Madness, NFL and college football, the Ustream, 5to1, Yahoo, Foote, Cone, and sports, media and betting industries. Masters, PGA Tour golf, as well as the suite Belding. During his tenure, he has worked Sportradar aims to empower its clients of fantasy games from CBSSports.com. closely with a variety of professional with sports data and digital content Her efforts led to multiple years of record- leagues, player associations, media solutions, fueling the passion of sports setting revenues for the properties. networks, agencies, governing bodies, fans across the globe. athletes, and content creators.

38 www.sportbusiness.com | @SportBusiness SPORTBUSINESSSUMMIT 2018

Private equity in sports SUMMIT2018 What’s driving current investment trends? How sustainable is PE’s current appetite for sports? And what is the potential impact of investors’ natural desire to minimise risk on the structure of sport?

This panel Attendees will hear from those experience with the need for alignment briefing will executives in the field and hear across all levels of equity participation. provide a closer answers to questions on: dealflow, geo- All too often, the major deals in business view on the targeting and media arbitrage as a deal drive the larger narrative. However, outlook for accelerator. Behind closed doors, this frequently the smaller, yet more sports teams; event will offer a deeper dive into what intricate transactions are providing new leagues; investors, owners and rights-holders greater returns across the industry, and sports-related need to know now before continuing or this panel will also address these unique MODERATOR: tech; rights- considering any investment format in entry points as well. Chris Lencheski holders; and the global sporting world. Globally there exists an almost future media. We’ll also be covering In this panel, Chris Lencheski – a insatiable thirst for all manner of sports the implications for current and future 20-year veteran of the sports and and social-oriented, mass-consumer investments by those who have been entertainment industry, with team gatherings. At the nexus of these successfully negotiating for some of ownership and c-suite roles at Comcast opportunities are the private and public the largest private transactions and Spectacor, IRG and his own agency, dollars that will fuel the growth. The companies in sports, IP, licensing and SKI & Company, will distill the current actionable insights from this panel media – covering everything from legal private equity environment with these will afford attendees the privilege of to M&A. Insight into this very exciting, panelists, who are in the day-to-day advanced understanding, leading to yet exclusive community will afford management of M&A and deal-making better, more sustainable planning across a wider-lens on the next tranche of across multiple leagues in many silos. the many silos in the sport-related tech opportunities for all. The panel will showcase their ecosystems. Z

SPEAKERS

Bob Caporale Rick Perna Josh Empson Michael Goodman Chairman and Co-Founder, Managing Director/Founder, Managing Director, Founding Partner, Game Plan Greenwich Advisory & Company Providence Equity Partners Granite Bridge Partners Bob is chairman and co- Rick’s experience in the sports Josh Empson is a managing Michael D. Goodman is a founder of Game Plan, which industry spans over 20 years, director of Providence Equity founding partner of Granite has provided consulting, earning him industry awards Partners, a global private equity Bridge Partners, a private financial advisory and including the Chairman’s Award, firm with $50bn in assets under equity firm that makes control investment banking services to ranking him among the top 20 its management. investments in lower middle the sports industry since 1994. bankers in North America. At Providence, Josh market companies. Prior to founding Game Having specialized in sports focuses on media, with a Before forming Granite Plan, Caporale had a lending and M&A, Rick brings particular emphasis on sports Bridge Partners, Michael was substantial national sports and deep transactional experience and entertainment. He is also a managing director at Wafra entertainment law practice, and high-level relationships a current director of NFL/PEP Partners LLC and principal at representing professional across all major North Ventures. Equinox Investment Partners. sports teams, team owners, American professional sports Previously, Josh was Prior to that he was vice- leagues and facilities. He leagues such as MLB, MLS the a partner at NantCapital; president and senior originator was part-owner of the Boston NBA, the NFL, and the NHL as and managing director at of leveraged finance at Chase Breakers, one of the original well as international leagues Forstmann Little & Co., where Manhattan Bank. franchises in the National such as the Bundesliga, the he led the firm’s investment in Women’s Soccer League. EPL, Ligue 1 and Serie A. IMG Worldwide.

@SportBusiness | www.sportbusiness.com 39 The US betting revolution SUMMIT2018 What are the opportunities and challenges created by the de facto legalization of sports betting in the US? How can clubs, leagues and others navigate this new ecosystem and sense the opportunities for growth?

Arguably the other limited locations. Some states have embraced it but most significant The repeal of PASPA by the Supreme some will never allow it. The betting development Court heralded unprecedented operators are about to enter an arms in US sport speculation as to the effect of sports race for marketing and sponsorship for many years betting on US sport for years to come. spend for customers, but when will they occurred in May But no-one really knows what is actually make money? How will the 2018, just as the going to happen or how big legal sports threat to the integrity of US sports be SPORTBUSINESS SUMMIT 2018 SUMMIT SPORTBUSINESS Golden State betting could be. dealt with? What role will technology MODERATOR: Warriors were Mark Cuban, the owner of the Dallas play in placing bets, receiving winnings Simon Greenberg whitewashing Mavericks, claimed the value of NBA and protecting sport? What do the the Cleveland Cavaliers in the NBA Finals. franchises doubled overnight, such was athletes themselves actually think? And Among the common phrases in US the opportunity presented by betting. what will happen to the illegal sports sport such as touchdown, three-pointer Meanwhile, analysts and bankers can’t betting market, which is claimed to be and home run, the acronym PASPA agree how much it could be worth worth $150bn annually? (the Professional and Amateur Sports financially, with estimates ranging from All this and more will be debated Protection Act) did not probably figure $5bn to $10bn within five years. by our panel of experts at the very highly or mean much to US sports There are many other open questions. SportBusiness Summit, offering fans. But it has had a huge impact. It Major US sports franchises have insights, knowledge and predictions meant they could not place a bet on conflicting positions on the issue: some about how the US sports betting market sports outside of casinos in Nevada and in favour, some against, some unsure. will evolve. Z

SPEAKERS

Angela Ruggiero Matteo Monteverdi Jamie Shea Chief Executive and Co-Founder, President, Sportradar US, Head of sportsbook digital operations, Sports Innovation Lab Sportradar DraftKings Angela Ruggiero is a leading figure in Matteo joined Sportradar in June In July 2018, Jamie joined DraftKings as the sports world, having served as an 2018, bringing more than 20 years of head of digital sportsbook operations after administrator, elite athlete, educator, experience in digital transformational 10 years as a sportsbook and racebook advisor, board member, and investor in the initiatives for B2B and B2C organizations. director in Las Vegas. He is currently world of sport. Matteo oversees the strategic direction based in Hoboken, New Jersey. She is the chief executive and co-founder for Sportradar US and provides leadership DraftKings is an innovative sports-tech of the Sports Innovation Lab, a technology for all US business units. and media entertainment platform that is and data-powered market research firm Prior to Sportradar, Matteo worked changing the way consumers engage with focused on the intersection of sports and for International Gaming Technology their favourite sports, teams and athletes innovation – with a focus on identifying (IGT), where he was senior vice-president, by bringing fans closer to the game. trends and evaluating technology products global digital products, and played a key Previously, Jamie worked as a sport and services driving the future of sport. role in GTECH’s acquisition of IGT. He betting and playspot specialist at IGT; An Olympic Gold Medalist and member was instrumental in leading the product director at National Casino Marketing; of the Hockey Hall of Fame, Angela has portfolio strategy for both companies and regional sales director at Caesars leadership positions at the highest levels in forging new and successful business Entertainment Corporation; and director of sport, including a role on the executive partnerships. Prior to IGT, Matteo was of race/sports and poker with Station board of the International Olympic executive vice-president, sales and Casinos. Committee, where Angela guides the marketing services at Lottomatica. strategies of major sports organizations.

40 www.sportbusiness.com | @SportBusiness Different sports, same cutting edge insights.| Bring your fans closer to the action next season with our market leading APIs, Widgets, Game Streams and Social Media Cards.

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This is where city representaaves, desanaaon marketers, event owners and suppliers from all over the world meet to network and learn from each other. www.hostcity.com #HostCity2018 [email protected] +44 (0)203 675 9530 SPORTBUSINESSSUMMIT 2018

Lessons of the global game SUMMIT2018 What is cutting-edge commercial practice at European football clubs, leagues and federations? How can these strategies and practices be incorporated into the management of US soccer bodies?

Germany’s its holistic nature, effectively balancing Concacaf is the governing body for Bundesliga the needs of clubs and national teams. football in 41 countries in North and has enjoyed Robert Klein became chief executive of Central America and the Caribbean, an accelerated Bundesliga International in November including the US. On the back of one commercial 2017. of its most turbulent periods, Victor growth in recent Italy is one of the most successful Montagliani was elected Concacaf years. Through football countries in the world, president in May 2016 as a modernising its Bundesliga at national team level – including force in the game. In a short time, MODERATOR: International youth teams – and through it Serie A Montagliani has set about demonstrating Frank Dunne arm, it has championship. Michele Uva, who was the benefits of transparency, and driven the brand globally and increased appointed chief executive of the Italian has been working with major sports its TV rights-income. In Germany, the Football Federation (FIGC) in September marketing agencies such as Lagardère league has worked to put ‘fan experience’ 2014, has long been recognised in Italy Sports and IMG to help expand the at the centre of all major developments. as one of the country’s most forward- footprint of Concacaf club and national The Bundesliga, with 36 clubs across thinking sports administrators. In 2016, team competitions around the globe. two tiers, has become a byword for the FIGC overhauled its ‘Club Italia’ Montagliani, Klein and Uva will innovation in everything from youth concept – launched in 2002 to impose discuss how the commercial and development to elite performance a coherent approach on national team governance aspects of the game monitoring, through a willingness to development at all levels – to ensure that are evolving and how the European embrace new ideas and technologies. it was operating at the cutting-edge in experience can provide models to help Meanwhile, the league is part of a four key areas: medical; match analysis; drive growth in North America, at both governance culture which is unusual in scouting; and performance and research. club and national team level. Z

SPEAKERS

Victor Montagliani Michele Uva Robert Klein Vice-President, Fifa/ Vice-President, Uefa/ Chief Executive, President, Concacaf Chief Executive, Italian Football Federation Bundesliga International As a player and administrator, Victor Michele Uva is a highly-experienced and Robert Klein joined Bundesliga Montagliani’s passion for the game has respected sports administrator, with a International in May 2017 as chief led him to become a leader within the 30-year career spanning several sports commercial officer. In January sport. Montagliani was elected Concacaf organizations. 2018, he took over the role as chief president and Fifa vice-president in May He is currently chief executive of the executive, becoming responsible for the 2016 in the Concacaf XXXI Ordinary Italian Football Federation, which oversees internationalization of the Bundesliga Congress held in Mexico City. He also the Italian domestic leagues and national brand, subsequently driving the Bundesliga serves as chairman of the Fifa Football team. Since 2017 he has also been Uefa to become one of the most innovative and Stakeholders Committee. vice-president. exciting football leagues globally. Montagliani served as president He previously held leadership positions Before his career at Bundesliga of the Canadian Soccer Association at some of Italy’s most prestigious clubs, International, Robert headed the sports until May 2017. In addition to his vast including Parma and Lazio. He is also an rights department at Red Bull Media knowledge and experience within the associate professor at the Foro Italico House, a globally distributed multi-platform game, Montagliani has concluded studies University of Rome and frequently lectures media company, with a focus on sports, in Political Science, Public Administration, in Italy and abroad. culture and lifestyle content. French and Spanish.

@SportBusiness | www.sportbusiness.com 43 Understanding your fan SUMMIT2018 What do sports businesses need to understand about local consumer culture, habits and preferences if they are to build strong brands and maximise revenues from overseas markets?

When the opportunities for leagues, franchises International expansion presents international and clubs to develop new and lucrative sports rights-holders with the challenge sports industry fanbases overseas. of understanding and engaging a talks about So just how difficult is it to engage vastly more diverse and broad range of benchmarks in fans in other countries? Data presented audiences than ever before, with issues fan engagement, by SportBusiness at the SportBusiness such as language, culture and physical one or more Summit demonstrates how different distance being just the beginning of the SPORTBUSINESS SUMMIT 2018 SUMMIT SPORTBUSINESS of America’s fan profiles and behaviours are from complexities to be navigated. So where MODERATOR: major league market to market – that what drives do you start? Simon Cory-Wright franchises will fan interest in one market will not In this panel on Fan Engagement, inevitably be part of the conversation. necessarily drive interest in another. So we will be asking Lara Price and Chip From creating the ultimate match- while a sports property may be a top- Bowers to share how two major league day experience to innovation in social tier product at home, in other markets franchises – the Philadelphia 76ers media engagement, American sport has it may be considered second- or and the Miami Marlins – are meeting long set the standard in many areas. third-tier. How do we go about building this challenge. Keith Bruce from But how good are American sports awareness and engagement across QuintEvents will share the perspective at building fanbases beyond their such different market environments? of the truly global environment that is own shores? Rapid developments in How much of what we do at home can Formula One, plus we’ll find out what technology are changing the sports be replicated elsewhere? Is it a case of fan engagement strategy looks like media landscape, offering more adapt and adjust, or must we treat each for sports outside the ‘big four’ major sport, more flexibly, to more people. market as unique and start with a blank leagues, with Major League Lacrosse This in turn is providing attractive sheet of paper in each case? Commissioner, Sandy Brown. Z

SPEAKERS

LOW RES

Lara Price Chip Bowers Keith Bruce Sandy Brown Chief Operating Officer, President, Business Operations, President, Commissioner, Philadelphia 76ers Miami Marlins QuintEvents International and Major League Lacrosse Formula One Experiences Lara oversees the Philadelphia Chip Bowers is a highly- Alexander “Sandy” Brown is the 76ers’ business operations, experienced sports executive, In July 2017, Keith was named commissioner of Major League corporate and team having worked extensively president of QuintEvents Lacrosse. He is the second communications and public in both the NBA and MLB. International and Formula One commissioner in the 18-year relations and community He currently leads business Experiences, which houses history of the league. engagement. With 20-plus operations for the Miami the company’s Formula One Brown, who joined MLL years’ experience, Price acts as Marlins, overseeing media and business. A veteran of the in February 2018, is an the team’s primary intermediary sponsorship rights, as well as sports and event industry, Bruce accomplished executive with with the league office and is the its fan engagement strategy. works with all 21 F1 events over 20 years of leadership key liaison between the 76ers’ Chip was previously chief across the globe. experience, including business and basketball arms of marketing officer at the Golden F1 Experiences was launched spearheading the launch and the organization. State Warriors, where he played in summer 2017. It provides fans growth of multiple sports media Lara is also a 2015 honoree a leading role in signing the and corporations with a full range outlets. He was formerly the of the Women in Sports & Chase Center sponsorship of experiential, hospitality, travel president and chief executive of Events (WISE) Woman of the agreement for the Warriors’ new and ticket packages for the entire One World Sports and president Year Award. home in San Francisco. F1 race series. of Univision Sports.

44 www.sportbusiness.com | @SportBusiness SPORTBUSINESSSUMMIT 2018

New trends in media rights SUMMIT2018 What is the impact of the tech giants buying sports rights? What does it mean for rights-holders and traditional broadcasters? Which markets/territories are most likely to be affected?

For years, unsuccessfully bid $610m for digital in the Middle East and North Africa. people said rights to the Indian Premier League in Although it has been facing concerted it was only a the subcontinent over 10 years. Saudi piracy of its content in the region, matter of time And while the tech giants have been beIN has successfully become a global until the tech plotting their assault on sports rights, player in the sports-rights industry, with giants bought entrepreneurs have been establishing operations in France, Turkey, Australia, sports rights. OTT operations around the world – New Zealand, the US and Canada, as Google such as Perform’s DAZN, while Eleven well as across Southeast Asia. MODERATOR: dabbled in Sports has launched OTT-only in The company’s senior vice-president Robin Jellis sports rights certain markets. of content strategy, Daniel Markham, in the late 2000s/early 2010s but has Perform’s chief commercial officer will be an expert speaker on the panel, been unwilling to pay the guarantees John Gleasure will join me in this panel to discuss how beIN has adapted during requested for premium sports rights. at the SportBusiness Summit to discuss the rise of OTT operators. Apple has long been mentioned as a the future for his company and for the Uefa’s club competition rights are stalking horse. Twitter has agreed some industry more generally. among the most sought-after around content partnerships with rights-holders The launch of OTT operations and the world. How well-positioned is the but has resisted the urge to pay big fees. the growing pervasiveness of internet governing body to take advantage of In 2017, the sports-rights ambitions connectivity has led traditional the proliferation of digital players, and of two huge companies became clear: broadcasters and media groups to adapt in which markets are such deals most Amazon acquired global NFL streaming their strategies. likely to be struck? Marketing director, rights to the 2017 season for $50m One such company is beIN Media Guy-Laurent Epstein, will be on hand to in April; and in September, Facebook Group, the dominant sports broadcaster provide the answers. Z

SPEAKERS

Daniel Markham John Gleasure Guy-Laurent Epstein Senior Vice-President, Content Strategy, Chief Commercial Officer, Marketing Director, BeIN Sports DAZN and Perform Group Uefa Events Daniel joined beIN Media Group in July John is one of the founders of Perform Guy-Laurent Epstein is the marketing director 2014 and is senior vice-president of Group, which has set about changing of Uefa Events SA, which was set up in content strategy, responsible for content the way the world consumes sport. He 2009 as a wholly-owned Uefa subsidiary. acquisition and group strategy. He is also is currently the chief commercial officer It manages the marketing and commercial the managing director of beIN Media of DAZN and Perform Group. Over the interests of Uefa. Group’s UK business. past 11 years, John has overseen all In 2002, Guy-Laurent joined Uefa as Daniel joined beIN’s team from the commercial partnerships and rights TV and sponsorship manager and soon NBA, where he had several roles including relationships and its international global became head of marketing activities. In senior vice-president of media distribution; expansion. 2005, he created the Media Rights Unit, managing director for emerging markets in John has over 23 years’ experience which is responsible for the overall sales of EMEA; and joint head of that region. in the sports, entertainment and music broadcast rights for Uefa competitions. In Having worked for almost 25 years industries, having worked as brand 2010, he was appointed marketing director, in senior positions in the sports and manager at Sky Sports, marketing responsible for the ongoing development entertainment industry, Daniel is seen as director at Sportal and head of sport at of all marketing and commercial activities, one of the most experienced and highly- Hutchinson Whampoa. He also held roles including brand, media and sponsorship regarded executives in sports business. at EMI Records and Sony Pictures. across all Uefa competitions.

@SportBusiness | www.sportbusiness.com 45 Partnerships beyond borders SUMMIT2018 Where and how can US sports properties most effectively and profitably find new commercial partners worldwide? And how can US brands grow through overseas sports partnerships?

Last year, The increasingly global reach of the programmes. research Premier League has been transformative Joanna Todd, vice-president, global by Sports to sponsorship income across the league. partnerships and strategic alliances Sponsorship Three-quarters of the 20 clubs in the at Marriott International, has defined Insider league had domestic main shirt sponsors the brand’s overarching partnership estimated that in 2002. Today, international brands development strategies that push football clubs account for 90 per cent of main shirt revenue, support business objectives and SPORTBUSINESS SUMMIT 2018 SUMMIT SPORTBUSINESS from the top- deals, with half of these from Asia. drive value across 19 Marriott brands MODERATOR: five European To understand the opportunities globally. How the brand engages with Matthew Glendinning leagues made arising from international exposure, the fans from all over the world across the more than $1.7bn from their main shirt SportBusiness Summit has invited Will NBA’s marquee events is a lesson in and technical apparel deals, with the Brass, head of sales and marketing at the how to leverage brand partnerships English Premier League contributing Premier League, to the panel. Brass has internationally. around 42 per cent of the total. been responsible for leading the digital The panel’s aim is to identify the Premier League clubs have transformation, commercial strategy, most effective practices that will help US a particularly strong appeal to partnership sales, marketing and brand sports teams reach out and get a greater international sponsor brands with the development. slice of its revenue from overseas. With ‘big six’ of Arsenal, Chelsea, Liverpool, In the US, the property that most- this in mind, we have Ari Mark, senior Manchester United, Manchester City and closely rivals the Premier League for director, corporate partnerships the Tottenham Hotspur among the dozen international reach is the NBA. It is NFL’s Miami Dolphins – one of the most or so elite European clubs able to drive an ideal partner, in particular, for the admired and marketable US sports team growth through commercial revenue Marriott International hotel group, brands – on our panel to discuss the hot rather than broadcast revenue. which uses the NBA in its brand loyalty issues. Z

SPEAKERS

Ari Mark Joanna Todd Will Brass Senior Director, Corporate Partnerships, Vice-President, Global Partnerships and Head of Sales and Marketing, Miami Dolphins and Hard Rock Stadium Strategic Alliances, Marriott International Premier League Ari is entering his first season leading Joanna leads the Maryland-based team As the Premier League’s head of sales corporate partnership sales for the Miami that develops global partnerships and and marketing, Will is responsible for all Dolphins and Hard Rock Stadium, a global strategic alliances across all verticals marketing and brand activities. He has entertainment destination and home of the including sports, music, film, culinary, also been responsible for building up a Miami Dolphins; Miami Hurricanes; Miami fashion, travel and financial services. partnerships function. Open; and Super Bowl LIV. He oversees In addition, her team is responsible for Will started his career as a lawyer, new business across a wide portfolio of multicultural marketing. before working at Rothschild as an sponsorship assets and events. Joanna’s prior positions at Marriott adviser to various European football Prior to this role, Ari spent nearly a include vice-president, segment clubs, an experience which led to him decade in global business development marketing, where she was responsible joining Tottenham Hotspur as head of at the NBA, securing domestic and global for the marketing strategy for key B2B business development. He subsequently sponsorships across the NBA, WNBA, G and B2C customer segments including represented the interests of various high- League and USA Basketball. He was key in small business and sports, and global profile sports teams and talent clients at negotiating partnerships with YouTube TV, programmes and promotions. Creative Artists Agency, prior to arriving at MGM Resorts, and Marriott International. the Premier League in February 2016.

46 www.sportbusiness.com | @SportBusiness In association with

Harnessing the power of sport through Victoria’s tourism drive VISIT VICTORIA “Our goal is not to be recognised simply as an events organiser, but as a holistic events marketing company.” Peter Bingeman, chief executive, Visit Victoria

elbourne’s success in a global sports hub but, as Bingeman winning the Best Event puts it, “the creative and cultural capital Strategy and Best Large of Australia and Asia”. City Awards in this “This is a ‘to do’ city where you can Myear’s SportBusiness Ultimate Sports come out of your hotel and whether you Cities Awards will have come as little turn right or left you’ll discover a choice surprise to those who have seen the of things to do, from sport during the Victorian capital triumph on many day to cultural events and great cuisine occasions since the awards were in the evening. introduced back in 2006. “Of course, we have a wonderful But this year’s success has to be sports infrastructure and sport accounts put into context and may have been for about 50 per cent of our major event- all the sweeter as it was the first since based tourism activity and spend. We the job of attracting major events to (Visit Victoria) pride ourselves on a calendar of events

Melbourne shifted to Visit Victoria, the Peter Bingeman, chief executive, Visit Victoria – both sport and non-sport – which organisation responsible for all aspects stretches right across the year and adds of the State’s tourism business. predecessors Tourism Victoria and to the tapestry of the city,” he said. Melbourne is, of course, a true ‘sport’ Victorian Major Events Company were Ensuring the Melbourne and Victoria city. In any given year it hosts a glorious “two teams each doing a great job”, product remains world class is a key array of international and domestic there was an advantage to be gained by element of the marketing story. A sports events from Australian Rules bringing them together. A$1bn, three-phase project to enhance football, which has its historical roots in “We wanted to tell the story of facilities at Melbourne Park, home the state, to the Formula One Australian Melbourne and Victoria through its of tennis’ Australian Open and the Grand Prix and tennis’ Australian Open. events in a more marketing-driven and adjacent Olympic Park which houses Sport is part of the city’s identity and creative way,” he said. the 100,000-seat Melbourne Cricket its iconic stadia and grand prix circuit Tourism is seriously important to the Ground as well as the AMI Park, the are known to fans around the world. Victorian economy and Visit Victoria 30,000-seat stadium which is home to In the highly-competitive tourism has a target of generating A$36.5bn per the city’s two soccer clubs, is currently business, major sports events are a key year by 2025 which Bingeman says is underway. The result is a greatly- attraction but, it should be stressed, “well within our grasp.” enhanced and more cohesive experience are only part of the proposition for a “In fact,” he says, “tourism is growing for visitors to either the Melbourne Park city and state which prides itself on at twice the rate of the overall Victorian or Olympic Park areas. the range and diversity of events and economy and has increased by A$6.4bn Across town, the State government attractions it has to offer. in the last three and a half years.” has pledged over A$200m to develop It was the opportunity to pull these “We have three target segments: the the AFL-owned Etihad Stadium, threads together which led Peter international market, Australia and extending the precinct to link it to the Bingeman to become the inaugural Victoria itself,” Bingeman explained. Central Business District. chief executive of Visit Victoria “And we are seeing growth across According to Bingeman,the when it was launched in 2016. With all those segments, in particular investments add value to the visitor a background in international fast- internationally from India, China and experience and will help Visit Victoria moving consumer goods marketing South East Asia, where we have recently to fulfil its objective of not simply and a knowledge of Australia’s run targeted marketing campaigns.” hosting events but building long-term neighbouring Asian markets, Bingeman The fact is that Visit Victoria has great partnerships with the events and their says that while Visit Victoria’s raw material to work with. It’s not only owners.

@SportBusiness | www.sportbusiness.com 47 VISIT VICTORIA VISIT In association with

(Visit Victoria)

Melbourne globally, highlighting the the thousands of visitors that come to depth and breadth of the experiences our city from around Australia and the available to those that visit our great world every year. city and the state of Victoria. How does Visit Victoria partner with How do you sum up the offer to sporting federations, event-owners sporting federations, event-owners and rights-holders to build their and rights-holders? brand, as well as ‘brand Melbourne’? We present ourselves as genuine The most important thing to partners to sporting federations, event- understand when working to build owners and rights-holders. the brand of Melbourne, and that of (Michael Dodge/ Getty Images) If you look back at the Brazil v our event partners, is knowing what Argentina football match two years sporting federations, event-owners and Q&A with Damien de Bohun, general ago, the upcoming Australian Boomers rights-holders are looking for through manager, major events, Visit Victoria v Team USA basketball series and our their relationship with Visit Victoria. formidable calendar of golf, you’ll note One thing that we do carefully is take How has Victoria’s strategy toward that we are working collaboratively in time at the front end of the partnership major events developed in recent everything that we do. to understand why they are bringing times? In 2020, Melbourne will host the their event to Melbourne and how we can Victoria is focused on acquiring the men’s and women’s final of the ICC support achieving their desired aims. ‘best of the best’, to ensure that we World Twenty20 at the MCG. Obviously, every event acquisition is maintain and develop our position as a We are in regular communication predominantly commercial in nature, major events city. We are committed to with the local organising committee but nowadays they are also so much positioning ourselves alongside London, to ensure a hand-in-glove approach to more than that. New York and Paris. developing marketing programs that It is about making our city their city. The Victorian Major Events Company ensure that their success is our success. And when do that we see fabulous was a world-leading agency and Visit This is the cornerstone of everything results for the event we are hosting Victoria’s mandate expands on their that we do. and for Melbourne that relishes the work. We are both a major events A partnership with Visit Victoria not outstanding contribution that major company and a great tourism marketing only provides you with access to some events make to our visitor economy. organisation. of the best sporting facilities in the Our strategy now sees us not only world, it provides you with an extension What new events are in the pipeline secure and manage a world-class of your communications and marketing and why are they exciting? major-events calendar, but also to use team, dedicated to selling out your Melbourne is fortunate enough to have those acquisitions to tell the story of event to not only Melburnians, but a number of, what we call ‘pillar events’

48 www.sportbusiness.com | @SportBusiness In association with VISIT VICTORIA

Caption and photo credit etc

(Visit Victoria) (Visit Victoria) and these continue to move from does not stop at sport either. Harry that can welcome up to 70,000 people strength to strength. Potter and the Cursed Child will open when the field of play becomes available The Australian Open Tennis exclusively here in February, direct for seating. It will be technologically Championships, the Formula One from London and New York, before masterful, embracing the ‘e-generation’ Grand Prix and the Melbourne Cup Come From Away takes to the stage at event goer. Carnival are three global events that the Comedy Theatre in our East End Melbourne Park is another example of feature on our calendar every year Theatre District. continued rejuvenation. The Australian and their ongoing expansion and Of course, there are several other Open Tennis Championships, one of development continues to ensure the opportunities we are exploring, with only four grand slam events alongside increase of their economic impact, exciting new announcements always on those held in London, New York and which is wonderful. the horizon in Melbourne. Paris, is now being revitalised to include These will be complemented in the state-of-the-art media and broadcast near future by the Australian Boomers Are there any new facilities in the facilities; new dining options; pedestrian facing the USA men’s national basketball pipeline and how will they enhance thoroughfares; and exciting new team in 2019, at the purpose-built court Melbourne’s offer to sporting precincts that expand the footprint of at Melbourne’s Etihad Stadium. It is soon federations, event-owners and events held at what was originally the to be renamed Marvel Stadium, and what rights-holders? 1956 Olympic Park. a spectacle it will be to see our national One thing that Melbourne has basketball team take on the world’s best always been proud of is its sporting What are Melbourne’s event-hosting as they make final preparations for the precinct and this array of stadia was ambitions in the years ahead? Fiba World Cup in China. recently recognised by your team at Melbourne is dedicated to maintaining Melbourne is also set to host the SportBusiness, via the Ultimate Sport its position as a global event city and 2018 World Cup of Golf, before the Cities Awards. we will continue to acquire events that Presidents Cup returns here next year. We are not resting on our laurels support this. This is a coup and complements the though. The Victorian Government has That is everything from the Olympic Melbourne Sandbelt, a stunning array of for decades invested in the facilities that Games to one-off opportunities that eight world-class courses on the fringe allow us to acquire the best events and celebrate experiences unrivalled. of the city centre. this continues. We are a global event city that The Australian Open of Golf returns Our 55,000-seat stadium at embraces major events – both sport and to Melbourne in 2020 and 2022, with Docklands, which is multi-purpose and creative – better than almost any city Melbourne fast becoming a home of golf enclosed, is set for a more than A$200m on earth and we are committed to being in Australia for both professional events upgrade that will ensure its continued bigger, bolder and braver with the way and those seeking travel experiences of position as one of Australia’s best, we bring the events we have acquired the sporting variety. playing host to regular Australian Rules to life. Melbourne’s major-event calendar football matches and special events

@SportBusiness | www.sportbusiness.com 49 50 In association with VISIT VICTORIA “To bringtheUSA basketball men’s Basketball Australia: Anthony Moore,chiefexecutive, coming to Australia in2020.” many international visitors whowillbe well givingawarmwelcometo the key andthecommunityas partners role to play inhelpingbringtogether about teamwork. VisitVictoria hasakey sportingevent.” at awomen’s world record forthehighestattendance a key partof theambitionto setanew is and supportingmajorsportingevents Melbourne’s track record forhosting biggest sportingstadium,theMCG. both finalsto beplayed atAustralia’s tournaments having equalbilling, with andmen’s importance ofthewomen’s canbepartof.”celebration thateveryone make theICCWorld T20aspectacular into thevisionand opportunityto process, theteam atVisitVictoria bought selection “Throughout thevenue World Twenty20:ICC Nick Hockley,chiefexecutive,2020 we willalways lookto comeback.” have somanytimes,andwhy here been partner. anobvious them That’swhy we in Australia andaround theworldmake tobringing ourmajorevents lifeboth collaborate withthePGATour in Sandbelt in2018and2019respectively. both are setto return to thefamed Cup–and of GolfandthePresidents cities,includingtheWorldevents Cup togolfers oneoftheworld’struemajor pleasure ofbringingtheworld’sbest now, VisitVictoria. We’ve hadthegreat Victorian Company, Events Major and Victorian through the Government relationship withMelbourne andthe “PGA Tour have alongstanding Presidents Cup: PGA Tour andexecutivedirector, Matt Kamienski,vice-president, In thewordsofourpartners… “Major events ofthisscaleare all events “Major the alsoquicklyidentified “They “The effortsofVisitVictoria to confirmed andlessthanoneyearaway. withus. isnow on thejourney Theevent daring enough to major agency event come perfect venue for what will be a moment forwhatwillbeamoment venue perfect Basketball Australia, andVisitVictoria isa by onhomesoilisaboldmove Boomers team to compete againstourAustralian (art exhibition) (art Melbourne WinterMasterpieces June: Rip CurlPro (surfing) April: Festival Melbourne InternationalComedy Melbourne Food &WineFestival Fashion Festival Virgin Australia Melbourne Formula OneAustralian Grand Prix Avalon AirShow(aviation) March: World CupGymnastics FIM World SuperbikesChampionship Six-Day Cycling Jayco Herald Sun Tour (cycling) (theatre) Harry Potter andtheCursedChild February: Festival ofSails Cadel Evans GreatOceanRoadRace Australian Open Tennis Championships January: VICTORA EVENTS CALENDAR2019 “Melbourne’s EtihadStadiumis the

AFL FinalsSeries September: (basketball) Australian BoomersvUSADream Team Melbourne Writer’s Festival Melbourne InternationalFilmFestival August: Come From Away (theatre) July: Boxing Day Test (cricket) Presidents Cup(golf) December: Melbourne MusicWeek Melbourne CupCarnival (racing) November: Cox PlateCarnival (racing) Caulfield CupCarnival (racing) Australian Motorcycle Grand Prix Festival Melbourne InternationalArts October: Melbourne Fashion Week Melbourne Fringe Festival (Australian rulesfootball) the world.”Z Melbourne, across Australia andaround basketball andsportsfansfoundin two-match to series thethousandsof deliver, market andcommunicate a we make aconcerted effortto develop, Victoria have as agreat partner been in Australian sportinghistory andVisit

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SPORTBUSINESS_210X265.indd 1 19/02/2018 13:41 ASCOT Ascot digs into customer data to help double hospitality revenues in five years

Racecourse adopts a data-driven New ‘data warehouse’ developed Hospitality revenue grew 98 per approach to fine dining sales to collate hospitality records cent between 2014 and 2018

(Ascot)

David Walmsley provide the facilities needed to support wider trend over the same period and its ambition of establishing itself as the resolved to be guided by the numbers in scot’s Royal Meeting is one finest racecourse in the world. doing so. of the high points of British Over the next decade, the UK Chief commercial officer Juliet horse-racing’s flat season, with hospitality market went through Slot says: “We could see fine dining eight Group One contests a prolonged period of downturn hospitality had real potential to grow Aamong its 30 races and £7.3m (€8.1m/ following the 2008 recession, but has at a faster rate than it had been doing $9.4m) in prize money at stake. returned to growth in recent years. and we knew the impact that a data-led But it is just as well-known to the Ascot shared in that upturn, with sales approach had had on other areas of the wider British public for its associations in its fine dining business growing by business – particularly ticketing – so it with the monarchy, the traditions of about 10 per cent across all racedays made sense to apply the same principles its dress code and its garden party between 2014 and 2015. here too.” atmosphere. That appeal means Industry forecasts indicated that hospitality has long been a central part higher rates of growth were possible, Data acquisition of the Ascot business model, especially with the wider hospitality market Ascot had been working with sports since the Royal Meeting generates projected to expand 15 per cent across marketing agency Two Circles since approximately 70 per cent of the the five years to 2019. As a result, 2013 on a range of projects across course’s annual revenue. Ascot’s commercial team turned its sponsorship, conferences, events In 2006, the track completed a £230m attention to priming its business to and ticket sales, and it extended the redevelopment of its Grandstand to match – or ideally outperform – the relationship into hospitality strategy.

@SportBusiness | www.sportbusiness.com 53 54

ASCOT already meeting. highlight anyproduct needs itwasnot gaps inthemarket itcouldfilland to, itto enabling bothpickuponany theracecourse couldrelateexperiences which sportsandvenues other identify should be)situated withinit,andto was(and offer theAscot where hospitality market, bothto determine UKsportandentertainment wider buildingapicture ofthe sources by context to theinformationfrom these specialistexternalsupplied by agencies. – numbers andemployee as turnover on individualsandcompaniessuch income-profiling data–key information rounded customer records through addedtowas then create richer, more would like to see. they additional facilitiesandservices anychangesor and understand experiences feedback abouttheirevent telephone to andonlinesurveys gather hospitality customers through research conducted amongAscot supplemented additionalqualitative by ofcovers. purchasing; andnumber of type ofproducts purchased; frequency location;racedays spend; purchased; (individual,corporatebuyer oragency); pointscollatedData included:thetypeof behaviours andpurchasing patterns. alonglinesofdemographics, audience that segment andthen hospitality buyers records to buildapicture offinedining drawn sales from theracecourse’s own future valueandvolumegrowth. should prioritiseasprimarysources of it it facedandpinpointtheelements hospitality offer, thechallenges identify types ofdatato health-checktheexisting we coulddraw onstraight away.” andevidence pre-existing experience uplift forhospitalitywehadalotof wewantedSo when to targetasimilar racedays too, thenexttwoyears. over Royal Meeting butacross allother increase ticket sales,notjustforthe That ledusto focusonusingdatato streams.across arange ofrevenue datacouldhelpdrivegrowthhow strategy project aimed atidentifying Slot explains:“We started outwitha www.sportbusiness.com | Finally, theproject soughtto add A layer ofthird-party information This quantitativedatawas First-party customer datawas targetingspecific The project beganby @SportBusiness “We theimpactthata knew – particularlyticketingsoit • teamscommercial with: the warehouse to Ascot’s provide alongside platform wasdeveloped from external providers. income-profiling informationboughtin withtheadditional enriched and then fine diningcustomers collated were onits the racecourse hadgathered data warehouse withinwhichallrecords Ascot creating anew which beganby Two managedby Circles, were elements The dataprocessing andanalysis Analysis andinsight a whole. UK sportsandentertainment market as market research conducted around the hospitalitybusinessesand holders, rights- through theirworkwithother Two establishedby Circles benchmarks Juliet Slot|chiefcommercial officer, Ascot Racecourse on other areas ofthebusiness on other made sense toapplythe same made sense principles here too.”principles here data-led approach had A visualisation and segmentation A visualisationandsegmentation collectedData inthisphaseincluded all hospitalitypurchasers drawn from theaccumulated dataon Adetailedsingle-customer view a means of identifying high-potentiala meansofidentifying as the UKandlocal businessuniverse Ascot hospitality and index them against profile thetypesofbusinessesthat buy target groups forindividualsales,and dining customer baseto highlightkey and socio-economicprofiles ofthefine effortstoled by builddemographic spent. muchthey purchased andhow often lastpurchased, how they they recency, andvalue–i.e.when frequency and creating customer baselinesaround time; volumeandvalueover sales by corporateof consumer; andagency acomparison specifics suchasenabling analysisfocusedon Benchmarking key targetareas forfuture growth. andidentify performances and current to to thedatainorder past benchmark thetwomainprocesses applied were marketed to andexistingclients. new andthewayoffer inwhichitwouldbe finedining future shapeoftheAscot mine forinsightsthatwouldinformthe team arichseam ofinformationto purchase records, givingtheproject years ofhistoric hospitality customer • • Development-focused analysiswas andbehaviouralProfiling analysis The datawarehouse containedthree marketing processes. track theimpactoftheirsalesand A real-time monitoring capabilityto marketing communications lines to create more targeted andbehaviouralalong demographic The abilityto audiences segment (Ascot ) ASCOT customer groups the racecourse was not used it to inform the design of new and processes that now allow our sales and already serving. improved products. We also started marketing teams to adjust their tactics As well as improving Ascot’s by rebranding our high-end offer to during the sales process according to knowledge and understanding of its being fine dining whilst still continuing the results they are seeing in real time.” customer base and highlighting priority to offer hospitality offers at the lower These actions had four key impacts groups for future sales and marketing price points. on the racecourse’s hospitality business: efforts, the analysis phase of the “We were also able to make sure those project proved particularly valuable in products were being marketed to the 1) Improved customer retention and identifying a number of challenges the right groups, businesses and individuals acquisition leads racecourse needed to overcome in order in the right way, and having access to Being able to understand more about to be able to present an attractive offer real-time data enabled us to set up some existing clients’ purchasing habits and to the new and existing clients it would new systems and processes that allowed the interests of potential target groups be looking to target. These included: us to match results to actions and adjust enabled Ascot’s sales and marketing our strategies according to what the data teams to generate higher-quality leads • A falling spend per customer – down was telling us. by identifying which products and price nine per cent between 2014 and 2016 points are most appropriate for which audience segments. Actions taken • Static customer retention levels “The data gave us a much included: better understanding of what • A mismatch of clients to products potential future customers of • Using this improved understanding that meant corporates of all shapes of the profile and characteristics of and sizes were buying inventory different types wanted from an existing and previous purchasers to across the board Ascot experience.” target lookalike customers through client acquisition tools like LinkedIn Juliet Slot | chief commercial officer, • Insufficient sales and marketing Sales Navigator Ascot Racecourse reporting tools • The identification of the professional • Un-optimised sales teams and services, wholesale/retail and customer-sales targeting “So, for example, carrying out a more information technology sectors sophisticated analysis of our customer as priority acquisition targets in • An over-reliance on agents data improved the quality of our lead corporate sales identification because we were able • Unsold inventory to profile potential clients and assign • A further focus for Ascot racedays’ them to the appropriate segment and corporate sales on small-to-medium- • A wider shift in demand across the then point them toward the products sized enterprises, companies in UK market toward a broader range we knew would have the most appeal to lower-turnover bands and those of products, from formal to informal that particular group. based in the M4 corridor and premium “We also recalibrated our marketing London area as being most likely to around the same sort of data insights buy at these racedays • A corresponding need for a to inform the timing and content of significant shift in range and pricing sales communications to maximise their • Prioritising individual retention of products to deliver against market appeal and potential response rates and and acquisition measures expectations for different offers at were able to establish new evaluation around younger, more affluent different price points. and reporting demographics.

Actions and outcomes 2) More responsive marketing These insights highlighted a number and sales processes of actions that Ascot could take to There were also a develop both its hospitality offer and number of changes the way in which it was marketed and sold. Slot explained: “The data gave us a much better understanding of what potential future customers of different types wanted from an Ascot experience. This was in-depth knowledge that we didn’t have before and we

@SportBusiness | www.sportbusiness.com 55 56

ASCOT and communications 3) Moreeffective marketingstrategy • • • would generate themostvalue: in areas inwhichthedataindicated they resources toand enable beconcentrated improve of the sales efficiency operations In particular, madeto changeswere sales andmarketing teams thatworked. on thesupplysideinracecourse’s www.sportbusiness.com |

commission structures. and benefits led incentivisation KPIsrelevant andcustomer- with targeted accountmanagement, nature ofthebusiness,working to segmented reflect thedata-driven, Sales teams alsorestructured were ‘tail’ ofthecustomer base to drivesaleswithinthelower-value while themarketing team wasbriefed value andmost-likely-to-buy clients, one relationships withthehighest- torepresentatives cultivate one-to- to re-engineered were sales enable teams Sales andaccountmanagement opportunities topersonnel focusonhigher-worth scale bookingsandfree upsales to capture lower-value, smaller- introduced towere website theAscot self-serviceOnline functionalities @SportBusiness • • • • Measures implemented included: andmarketpreferences conditions. immediately to changesincustomer time according to results andreact in beingableto adjust activityinreal targeting content anddelivery, but hospitality offer, notjustinterms of able to communicate theracecourse’s marketingmeant thatAscot’s team was Access to more-detailed customer data

better optimisation ofmarketingbetter and third-party media, enabling communications impactsonowned More sophisticated of reporting and exhilarating see themeetingasunique,uplifting more likely thanreturning onesto are attendees occasion, whilenew of itssense as beingsetapartby wasidentified example, Royal Ascot marketingimprove messaging. For feedbacktoThe useofsurvey segment client across theyearforeach up anddown the team to dialmarketing activity New campaignplanningthat enabled targeted were they andatwhichtimes dictated thechannels through which individual customer that segments Bespoke marketing strategies for • • 2014-18: theperiod Over proposition hadindicated possible. were theinitial and predictions ofgrowth performances well aheadofprevious with agreater degree ofinformality. more entertainment-focused product Clubasa oftheVilliers repositioning more informalLawn Club; andthe and the expansionofmodern SandringhamRestaurant; entry-level category ofthe includedtheremoval specific facilities. Changesinthelatter signage andthefooddrinkinsome toimprovements parkingfacilities, range ofproducts available. changestosome more fundamental the andtoof theexistingfinediningoffer insomeareas ofimprovements number intelligence pointed toward Ascot a hospitalitymarketdata withwider The combinationofcustomer feedback offering 4) Refreshedhospitalityproduct Ascot’s 2018 commercial results were results were 2018commercial Ascot’s include Examples oftheformer Covers sold increased by 93 per cent 93per soldincreased by Covers cent 98 per increased Hospitality revenues targeting.timings anddemographic messaging, platforms used,campaign (Ascot ) ASCOT • Occupancy rates were up 19 ASCOT RACECOURSE HOSPITALITY OCCUPANCY RATES, 2014-17 percentage points, from 78 per cent to 97 per cent. 98% Customer retention rates also 94% improved between 2015 and 2018, up to 43 per cent from 35 per cent for 78% corporates and 36 per cent from 30 per cent for individuals, while average spend per client grew five per cent between 2017 and 2018 for corporates and 10 per cent for individuals. Ascot has also reduced its reliance on agency sales, cutting the number of agents used by 52 per cent between 2016 and 2017 alone, while seeing a fall in 2014 2017 2018 revenue from agents of only 12 per cent over the same period. Source: Ascot/SportBusiness Group Ascot’s adoption of a data-driven approach to hospitality sales has a number of implications of its own for ASCOT RACECOURSE HOSPITALITY RETENTION RATES, 2015 V 2018 rights-holders with similar objectives:

The value of employing both 2015 2018 quantitative and qualitative data. Ascot had a rich set of customer 43% information data to mine for insights, but many of the actual changes that 36% were made to the hospitality offer were 35% informed by the qualitative research 30% and broader market analysis conducted alongside. Feedback surveys identified many of the product improvements that would prove most popular, while competitor analysis and market intelligence enabled the marketing team to consider what it had learned about its own client base in a broader context and identify some new gaps Corporates Individuals and opportunities as a result.

The importance of segmentation. Source: Ascot/SportBusiness Group Audience segmentation is one of the basic building blocks of data-driven real-time analysis to continually test data told us. marketing but is no less important for its marketing and communications “The obvious answers are in what it. Being able to segment the customer output to refine its effectiveness and your audience looks like, which base along demographic and behavioural allocate sales resources more efficiently segments are the most valuable and lines was essential to enabling Ascot’s by concentrating them on the areas in what sort of offers these groups are marketing team to build the targeted which they could deliver the most value. most likely to respond to, but if you campaigns and communications that can drill down into that even further raised the efficiency and effectiveness of Slot says of the overall impact of by asking them what specific changes its sales performance. the data-led strategy: “Taking this they would like to see and look at those approach to hospitality sales was a responses in a wider context than just A willingness to change processes as natural next step from the similar work what is happening inside your own well as products. we had already done in other areas of gates, then you can generate some much Ascot’s data-driven approach did not the business, so we were able to build deeper insights and make some really stop at what the racecourse sold but on that approach and take a really hard far-reaching changes to how you do informed how it did so too, using look at all the implications of what the business as a result.” Z

@SportBusiness | www.sportbusiness.com 57 DATAPOWA Feel the POWA

How a new sponsorship data and valuation engine could be set to become the industry standard

hile it remains to be seen how Cristiano Ronaldo’s €112m ($130m) summer In association with switch from Real Madrid Wto Juventus will affect the balance of European footballing power on the pitch, CR7’s move has already had a significant impact on the commercial firepower of the two clubs. According to the newly-launched POWA index from dataPOWA, Ronaldo’s transfer saw a significant shift in the respective values of the two clubs as sponsorship platforms, with Real falling from top place in the index – to be replaced by the United States’ NBA – and Juve shooting up the table to 11th. So how do we know all this? The impact of Ronaldo’s personal brand magnetism on the sponsorship appeal of a club is just one of the sponsorship subplots identified by dataPOWA chief

executive Michael Flynn, using the Michael Flynn, chief executive, dataPOWA system he and his team have developed to provide the sponsorship industry 60 unique data sets including Facebook, ability to make comparisons between with an affordable tool which generates Twitter, Instagram, YouTube, sports different types of properties – such a host of digitally-derived data to guide media sites, broadcast output and as clubs and leagues – which makes it better decision-making. financial information. such a valuable tool. Launched in September 2018, The results are then ‘cleaned and “We call it the Sponsorship Scout,” by London-based dataPOWA, the categorised’ before being analysed using explained Flynn, who has 30 years’ POWA index delivers a live dashboard advanced machine-learning techniques experience in the sponsorship sector. graphically displaying the sponsorship to produce the output streams which “It’s there to provide a first point of power of sports, clubs, leagues and are delivered via real-time personalised reference and the assistance needed by events based on a massive basket of dashboards that allow users to those working in sponsorship to identify digital and social media inputs. The access, interrogate and compare the the properties which are the best fit to result is a detailed sponsorship picture information they require. help them reach their objectives at the of each listed property highlighting its At the time of writing, the POWA right price.” performance across major social media index displays the NBA as the world’s Flynn certainly knows his stuff. platforms and websites, and delivering most powerful sponsorship vehicle, As director of sponsorship at the UK vital data around associated keywords ahead of Real Madrid, which is followed brewer Bass, he was responsible for and demographic analysis which by the NFL, Barcelona, Manchester Carling’s award-winning sponsorship identifies not only the age and gender United, the Uefa Champions League and of the English Premier League, before of fans and followers but their locations the English Premier League. moving on to explore and pioneer around the world. While the ranking of top clubs may aspects of digital marketing through The output is produced by a process not come as much of a surprise, it is companies including Fast Web Media. which begins with sourcing the data by the breadth of information offered by Beyond sport he and his team at combing trillions of data points across the POWA index, together with the Fast Web Media were responsible for

58 www.sportbusiness.com | @SportBusiness In association with

developing WeatherFIT – technology are Manchester United or Macclesfield and strategic thinking. Beyond that, I’m which enables online traders to sell Town. Multi-user license fees will be sure the next generation of executives products tailored to the weather in based on turnover. will find intuitive ways to use this tool any part of the UK, allowing them to “It is a very different product package that we haven’t even considered yet. DATAPOWA decide which products to promote from those offered by the major media “The POWA index also works – before going on to build and sell a monitoring and analysis companies. for properties themselves as it company which developed software “Our customers know their own enables them to compare their that matched second screen advertising business better than we ever can, own performance as a sponsorship to programming on mainstream so they are the experts…we are platform against their immediate television. just providing a service which puts competitors and against a wider range His love of sport, sponsorship and information at their fingertips and of opportunities. Our data highlights data is clear and in dataPOWA it enables them to make comparisons and the areas in which a property is appears he has found a way of bringing ask the right questions before making a performing well or underperforming them all together. decision,” he said. and enables them to take action to “The use of data in sponsorship has The dataPOWA business model is rectify any issues. always fascinated me,” he explained. based on volume of sales and Flynn says The POWA index additionally offers “It goes back to my days with Bass as customers will be drawn from all sides a bespoke service – delivered by experts director of sponsorship and handling of the sponsorship equation. who draw upon data generated by the Carling Premiership. the system before applying a series of “It was a fascinating sponsorship and “For years a lot of sponsorship contextual cross-checks – which delivers after the initial years of working to make an accurate assessment of the monetary sure we achieved name recognition we has had a ‘hit and hope’ market value of any given sponsorship. switched focus to really getting closer to feel to it because the research “This is where we apply a necessary the fans. That’s when I became aware of and data which was available human element to support the the Opta Index which, for the first time, technology and ensure that we deliver delivered really detailed data about what was difficult to access and the most accurate figure possible,” was happening in a football match and extremely expensive for Flynn explained. the performance of individual players. “Together with all the other reference “I was looking for social currency all but the wealthiest clubs and comparison points delivered by the and the Opta scores from each game and properties.” POWA index, this gives users the ability were becoming part of the conversation to negotiate deals more effectively.” Michael Flynn | chief executive, around every game. Our deal created dataPOWA Flynn believes that the POWA index the Carling Opta Index and it really can change the sponsorship industry by broke new ground in the papers, on making everybody working in it better- television…everywhere.” “The information we deliver is informed. It’s low price point puts With dataPOWA he appears to be central to brands looking to identify timely, decision-critical information breaking new ground once again with a the properties which will best deliver in the hands of all stakeholders in the product which delivers access to a broad the engagement and audiences they sponsorship process, helping reduce range of essential live data about the need to reach. It allows them to the reliance on hunches and educated sponsorship performance and value of compare the sponsorship performances guesswork which has, to date, been an clubs, leagues and sports, graphically not only of sports teams but to look inevitable part of the process. presented in personalised dashboards. at those against events and leagues so “This sort of information has never “For years a lot of sponsorship has that they have all the information they before been so widely available,” he said. had a ‘hit and hope’ feel to it because the need to make a decision. “We’ve lived in a world where research and data which was available “Naturally the agencies which supplying data on which decisions was difficult to access and extremely advise brands will be able to use the could confidently be made was the expensive for all but the wealthiest clubs POWA index to make better-informed preserve of major research companies and properties,” he said. recommendations to their clients which charged big fees. That’s no “We have deliberately made the and I feel the service could drive an longer the case and the POWA index POWA index really accessible with a improvement in the service offered by has been designed to allow every price point of £2,500/$3,500 because we agencies which will be able to instantly subscriber to do their own effective want everybody to have access to the look at a broader range of properties, desk research so that they can same level of information whether they helping to guide their in-depth research confidently focus on the big picture.” Z

@SportBusiness | www.sportbusiness.com 59 60

WPP T have farmore thanIMG’srevenues.” we hadinsport,wewould everything McCormack hadsaid.“Ifwepulledout account executive Mark forIMGfounder WPP,” themanwhostarted outasan “Effectively, anIMGwithin there’s year, hadlongmadehisambitionclear. Sorrell, whostepped inAprilthis down andchiefexecutivefounder SirMartin would be.Buthedidn’tneedto. WPP kidontheblock”.new SportBusiness atthetime.“We’re the business,”Kristicktoldcentralised basis anditwillbeoperated asa communityonaglobal rights-holder group toESP Properties the serve could.agencies brands to inaway properties other few and marketing to agencies deliver WPP’s constellation of advertising that itwouldbeableto tapinto Two Circles.consultancy boutique data-driven newly-acquired folded into thebusiness, aswasthe IEG,acquired in2006,was consultancy East.and theMiddle WPP’ssponsorship in to inEurope, Africa runoperations Kentaro director Jonathan Hill brought Footballand former and Association John Kristickappointed chiefexecutive ISL,Kirch andInfrontformer executive management team was put in place, with that objectiveinmind.Aheavyweight with GroupM launchedESPProperties sports marketing powerhouse. ambition ofcreating asingle,global to isnocloser its achieving agency Frank Dunne business under Two Circles brand IEG inUSandbringsrights-holder and GroupM sellsoffESPProperties www.sportbusiness.com | GroupM shufflesthepack to make Two Circles flagshiprights-holderfacingagency Kristick wouldn’tsay whoESP’srivals “We have clearlypositioned avery A key partofESP’sarmourywas In June 2015,WPPsubsidiary world’s largestmarketing last monthsuggeststhe sports marketing assetslate he restructuring ofWPP’s @SportBusiness added: “There are a vast number of are avast number added: “There market had“putpaidto ESP”. He soft”sponsorship said that“avery parts ofAsia. relationships inItalyexisting client and are there brand where Properties GroupM willcontinuewiththeESP goneforayearandnotreplaced. been Circles lastyear. KristickandHill have foldedintohad already been Two ofESPProperties employees remaining agency. TheUKactivitiesandfew to BruinSportsCapital’sEngineShop ofESPProperties the USoperations digital, data-drivenmodel sponsorship industrytowards amore Changes reflect evolution ofthe Founder Sir Martin Sorrelloncedreamedofcreating”anFounder SirMartin IMGwithinWPP” One independent sponsorship adviser sponsorship adviser independent One Last month,GroupM soldIEGand CAA, WassermanCAA, Its andOctagon. the likeschallenge ofIMG,Infront, longwayis avery from beingableto consultant,it specialist data-driven tothe clients” asa continuegrowing thecredibility and “the knowledge, points outthatwhileTwo Circles has WPP’srivalInterpublic, by owned agency,of footballattheOctagon smart businessidea.” a sweetspotaround data.It wasavery was there when Two Circles emerged But for results andfordifferentiation. are struggling,and mostofthem both outthere sponsorship salesagencies sports marketinggiant sports WPP’s ambitionto createaglobal Restructure seenasscalingbackof Phil Carling, managingdirector (MarkRunnacles /Getty Images ) WPP turnover is thought to be in the low tens twice about putting IMG on a shortlist sponsorship, which don’t operate on of millions of pounds. The revenues because of their wide experience. But a the same kind of commission basis. It of the majors are measured in the lot of clients don’t recognise the depth messes up their business model.” hundreds of millions. of sporting talent and knowledge within He suggests that the lesson from the “As long as they are saying, ‘Two WPP. Part of the original vision of ESP Interpublic experience, and from similar Circles are carrying the baton for us’, it was to be able to build that out. But with issues that WPP has faced, is: “Don’t means there is a short-term to long- each of the agencies operating in their go there unless you have worked out term retreat from having a proper own silos, it proved more difficult than how everything gets paid for and you sports marketing player within the WPP was expected.” can create a collaborative environment portfolio,” he said. ESP’s struggle to leverage its in which everyone shares clients and Any interpretation of the restructure relationships with other WPP provides the best possible solution for which includes notions of failure or subsidiaries has a precedent: Interpublic those clients.” retrenchment, however, is not one that and Octagon. Launched by US the company shares. Dominic Grainger, advertising giant Interpublic in 1997, Two Circles the chief executive of GroupM EMEA Octagon is now one of the established Two Circles is one of the success and of the Sports Practice at WPP, sees industry majors. But its first five to six stories of the industry in recent years, it as natural evolutionary step. years were fraught with difficulty. The a fact underlined when it was crowned “At GroupM, it was always our goal word ‘synergies’ didn’t exist in those days agency of the year at last year’s BT Sport to give clients one holistic approach to but the much-vaunted benefits of being Industry awards. Founded in September how we work with sports rights-holders part of a constellation of advertising 2011 by Matt Rogan and Gareth Balch, across the board and around the world agencies simply didn’t materialise. it set out to be a new kind of sports – which is why we united our rights- marketing agency: digital first and holder facing businesses under the ESP driven by data. It didn’t take long for the Properties umbrella three years ago. “There is tremendous sporting company to come across Payne’s radar. “In today’s data-driven environment knowledge and talent within “When I first saw what they were we continue, through Two Circles, to the group, but WPP has doing, it was the first company I had help sports rights-holders in the US and come across that had begun to properly Europe drive growth across every area of struggled to present a unified, identify the potential depth of digital their business – including sponsorship, coherent sports agenda.” mining and how to turn that into where our focus is helping rights-holders tangible products for sports bodies, ensure they satisfy the demands of brands Michael Payne | adviser to WPP & connecting the dots and helping them to former IOC marketing director by delivering access to highly-engaged understand what it all means. My advice audiences effectively, and measurably, to WPP was that this is very much the through rich digital channels.” direction the industry is going,” he said. Octagon’s Carling explains why: Expansion in North America will be Tougher than expected “It all comes back to P&L. There is no helped by the launch of a Los Angeles Michael Payne, the former marketing way that you will get those big agencies office later this year, to add to the director of the International Olympic to pay you money or allow you to share existing New York base. The agency Committee, has been an adviser to WPP in the money that is being paid by a has doubled its staff in London, from for over a decade and helped broker client because it affects their P&L. 50 to 100, since the takeover. But it is GroupM’s acquisition of Two Circles. We found that pretty rapidly we were understood that GroupM has no plans Given the rapid growth of Two Circles frozen out. The notion that you will to morph the company into a full- since 2015 and its increasingly long create collaborative ventures always service agency by adding new disciplines list of blue-chip clients, Payne echoes fails when it comes to dividing the to those areas where it has identified a Grainger’s view that to see the gradual money up.” successful niche business opportunity. phasing out of the ESP Properties Some basic differences in how The new kid on the block turned brand as a failure is to misunderstand advertising agencies and sponsorship out to be Two Circles rather than ESP the nature of the company. But he does agencies work also became apparent. Properties, at least as far as brand accept that creating a sports marketing “The planning and buying model that identity goes. It will be one of WPP’s monolith has proved tougher for WPP has been built over the last 100 years multiple sports assets, alongside than many had anticipated. is based on media commissions. There TSE Consulting, which is owned by “There is tremendous sporting are established commission structures WPP subsidiary Burson-Marsteller, knowledge and talent within the group in everything from outdoor through to and strategic stakes in companies but WPP has struggled to present a magazines and television. There is not Bruin Sports Capital, CSM Sport & unified, coherent sports agenda. That’s a remote possibility that a planning Entertainment and the Mediapro agency. partly because of the corporate structure, and buying agency is going to want Multiple, but separate. Sorrell’s dream where the different units are competing money coming out of traditional and of creating a new IMG from within WPP against each other. People wouldn’t think linear media and going into things like remains elusive. Z

@SportBusiness | www.sportbusiness.com 61 INTERNATIONAL CHAMPIONS CUP Relevent Sports’ International Champions Cup reaches ‘the point of profitability’

Securing control of sponsorship Repeat business with stadiums Organizer says ICC is a money- and media rights crucial to and training centres leads to more spinner for clubs and a chance to organizer’s commercial fortunes favourable deals leverage power over Uefa

Relevent Sports executive chairman Charlie Stillitano (Jan Kruger/Getty Images)

Bob Williams According to Stillitano, the ICC is now of a Barcelona-Real Madrid derby “at the point of profitability”, though outside Spain (the first a largely- elevent Sports’ International Ross’s financial backing remains crucial forgotten friendly in Venezuela in 1982). Champions Cup – founded to its success. Ross has invested over Eight teams contested the first by Miami Dolphins owner $100m – “a good deal of money,” he told ICC across seven venues. This year’s Stephen Ross and organized Time magazine in 2017 – over six years event included 18 teams in 23 venues Rby veteran American soccer promoter to keep the event going. “But I really over three continents (Asia, the US Charlie Stillitano – has changed the face believe that in the long term, this is what and Europe). A women’s and boys’ of the football off-season. America wants to see,” Ross added. tournament have been added while next Consolidating series of club- The ICC replaced the World Football year there will be a girls event. organized mini-tours and one-off Challenge after Creative Artists Agency The ICC has always taken place in the friendlies – and expanding upon sold the rights to the tournament US, with Asia staging matches since 2015. US-based predecessors to RSE Ventures, Relevent’s parent Europe has hosted four tournaments ChampionsWorld and the World company, in 2012. Investment vehicle while Australia provided venues in 2015 Football Challenge – has created a RSE was co-founded by billionaire real- and 2016. Clubs are willing to travel global tournament in which Europe’s estate developer Ross and his business further during years when there are no elite now spend every summer. partner Matt Higgins, a former New major competitions such as the World The ICC attendee list reads like the York Jets executive. Cup or European Championship. Last Champions League last 16 and the The competition has developed year there were seven games in Asia tournament has become so desired that significantly since its 2013 launch, and none in Europe; this year, following Turkish club Fenerbahçe offered to pay reaching a high with last year’s El Russia 2018, there were three matches in to take part this year. Clasico Miami, just the second staging Asia and seven in Europe.

@SportBusiness | www.sportbusiness.com 63 64

INTERNATIONAL CHAMPIONS CUP team, themore peoplewillpay to gosee broken to: down themore popularthe Stillitano tells SportBusiness.“It canbe band,” than youwouldforasmaller orLyon.Benfica more than andBarcelona getting Madrid their stature andpopularity, withReal ratesare paiddifferent according to $3.425m (€3m)to $6.85magame.Clubs the ICC’scosts,withclubsearningfrom Participation feesare the majorityof thekeycost Participation tours.as thetimingoftheirsummer in whichtheclubswantto play, aswell determined andcities thecontinents by in 2017. Butthefixture listislargely Houston both andElClasico Miami, arranged, like in theManchester derby Inter Milan. and same pointsasBorussiaDortmund aftergoal difference finishingonthe matches. Tottenham Hotspur wonon for thefirsttime,contesting three team,single-league formatwithevery competition (2015-17) to, thisyear, a (2013-14) to league-based acontinental competition withknockout rounds from agroup-stage the years,moving www.sportbusiness.com | 2018 ICC PARTICIPANTS BY POSITION IN THE DELOITTE FOOTBALL MONEY LEAGUE “You pay more fortheRolling Stones Some match-ups are specifically The formathasalsochangedover €486.2m €272.5m €676.3m 13 7 1 th st th @SportBusiness €674.6m €486.2m €262.1m 15 2 8 nd th th says: “We stillarrange thehotels, the greaterby participationfees. Stillitano and travel costs,butthisismitigated executive Karl-Heinz Rummenigge. available,” says Bayern Munich chief “We tryto always bring thebestteam buy into inthemain. thisagreement bringing their best players, and the clubs of clausesthatpunishteams fornot easy ones.” determine butthe parameters are pretty sales. It’s notalwaysand TV easyto do withwhattranslates to ticket sales thanthatanditallhastoreally lower team’.you’re aB+level noone There’s team,A+ level team, you’re anAlevel model atall.Now wesay, ‘you’re an don’t wantto pretend it’sacomputer time,I over modelthat’sevolved own have now, are doing–it’sour they how the club,legacy, whatplayers they popular intheStates than others. in theStates, andsome teams are more widely popularinJapan butlesspopular becauseateamdisagreements may be teamown are healthy, andthere honest than theircolleagues. fee getpaidahigher they andthen them Relevent no longer pays nolonger Relevent clubs’hotel Clubs’ contracts containanumber “It’s candidlybasedonthehistory of fightsfortherightsoftheir “Everyone €648.3m €424.2m €198.3m 21 3 9 rd th st €191.7m €587.8m €405.7m 22 10 4 th nd th €527.7m €171.8m €355.6m are treated more like afixture on the NFLstadiums.different Ross, asanNFLowner, in haspartners relationships inthatMr different customers. thestadia,wehave With hotels,centres, etcetera, weare repeat to fortraining venues: thedifferent it. We have goodclient becomeavery and USBankStadium. Field Stadium,Soldier Bank ofAmerica Stadium,StubHub– Michigan Center, 2016 thatdidnotparticipate lastyear Hard Rock Stadium–plusfivefrom Stadium,RedBull Stadium, Levi’s Arena, from 2017–theMetLifeUS venues deals. ThisyeartheICCrepeated four business hasledto more favourable andtherepeat and training centres, ofstadiums withanumber agreements enters now intoRelevent multi-year It’s fullservice.” and wewillnegotiate the feeforthem. Seasons, theRitz-Carlton orwhatever three hotels willstay andthey attheFour hotel We dealsforthem. them willshow market –wewillget –theUS orAsia is becauseweare localandinadifferent wehave ofthebenefits everything. One meals, theairline,theirflights–wedo “Because we are an annual event, we “Because weare anannual event, Stillitano adds:“Trust isabigpartof isthesecondarycost.Stadium rental 24 11 5 th th th Source: DeloitteFootball MoneyLeague2018 €487.6m €332.6m €157.6m 12 30 6 th th th INTERNATIONAL CHAMPIONS CUP calendar. That helps as we’ve been able “The sanctioning fees do affect your higher participation fees. By 2017, the to cut better deals as they know we’re bottom line. I would be lying if I said it tournament was generating closer to going to come back every year. We now doesn’t affect us,” Stillitano says. $20m in media-rights revenue. have a lot of cities that are interested Stillitano says: “As our reputation in us and the visitors’ bureaus go out of Relevent’s revenue drivers grows we’re getting better and better their way to help us.” Having shelled out for the participation national TV deals. We’ve gone from On top of paying rent for the fees, stadiums and training centres and six-figure incomes to good seven-figure stadiums, in many cases Relevent will other related costs, Relevent has three incomes for national TV. It’s changed have to share match-day revenue with main sources of income: ticket sales, drastically over the years. The fees the venue owners as well. “In some media rights and sponsorship. have probably tripled over the past stadia you will share concessions, Ticketing delivers about two thirds couple of years. As our reputation in some you won’t. Some you will of the ICC’s income, and is by far grows we’re getting better and better share parking, some you won’t,” says the biggest income stream. A precise national TV deals.” Stillitano. “It depends on the different figure for total revenue is not available Greatest interest comes from stadium deal and I would say they have because of the complex income-sharing European countries where the

got better over the years.” agreements in place with some stadium participating teams are located, and the The ICC was noted for a dearth of owners. However, Stillitano told The US. “The rights fees in the States have sell-out games this year – partly due to Guardian in July: “There were 492,000 come strong,” he says of the deal with number of stars resting after the World [tickets] sold in 2013, 642,000 in 2014, ESPN, which ran from 2016 to 2018 and Cup – with Tottenham v AC Milan 985,000 for 2015, 964,000 in 2016 and was worth about $1.5m in its final year. achieving an attendance of 31,264 in 903,000 for 2017. And we think this year “Before we almost bought time on the 66,655-capacity US Bank Stadium we’re on track for 1.1m.” TV – they were decent deals just to get in Minneapolis, and 29,195 fans coming the games on a good network, now we to see Bayern Munich v Manchester “The most important thing have several networks pushing to get City in the 65,326-capacity Hard Rock the games and that obviously pushes up Stadium in Miami. is that Relevent is showing the fees.” Relevent does its best to react Fifa and Uefa that the clubs, “It’s better that there’s one company appropriately to ticket demand by, for that makes deals with the TV stations,” example, this year moving Manchester together with a private says Stefan Mennerich, Bayern United v AC Milan from the Rose Bowl company, can do the job Munich’s director of media, digital and to the smaller StubHub Center in maybe better than them.” communications. “If Charlie is able to Los Angeles. But often the company’s sell many matches to the TV stations in hands are tied by the demands of the Karl-Heinz Rummenigge | chief each respective region that helps to have clubs and host cities in which stadiums executive, Bayern Munich negotiating power. That improves the they play, as well as the multi-year income again.” venue deals. Relevent tries to strike one-year “This is a World Cup year so we have Tickets often cost more than $100, deals for ICC rights, backing its ability our challenges,” Stillitano concedes. which has led in part to the lack of to grow their value year-on-year. “You always have to look at where the sell-outs. Stillitano defends the price Multi-year deals are usually at the market’s going, what year it is, what points, saying: “Ticket prices are high broadcaster’s urging and come with players are here – but it’s really driven compared to European games but steep escalators. by where the manager and commercial they’re not high compared to a Knicks Participating clubs with their own department want to be and what the ticket or a Broadway show. As we grow channels, such as Manchester United city is offering us. Sometimes they will sponsorship and TV that will make it and Liverpool, are given the option to say they want us at a certain stadium. easier to pay the teams and it won’t just buy rights. It may seem to make more sense to be be based on tickets. That’s been the big Clubs, too, can also buy back at a different size stadium but the city shift over the years.” sponsorship inventory in the stadiums, wants you somewhere specific.” Sponsorship and media-rights such as perimeter advertising, as Adding to Relevent’s costs are revenues have risen since Relevent took Manchester United and Bayern Munich sanctioning fees that must be paid to control of these rights in 2014. In the do for their respective partners the United States Soccer Federation, first year of the tournament, 2013, teams Chevrolet and Audi. Rummenigge says: set at five per cent of the gross gate retained the media rights in their home “In our case we have to involve Audi in receipts of every ICC match. countries, with Relevent’s remaining perimeter sponsors at the games as our The 2012 ruling that the USSF has rights “not worth much” according to tour is called the Audi summer tour.” authority over foreign national and Stillitano. SportBusiness research suggests This year the ICC has 13 sponsors, club teams playing in the US – and the they were worth about $600,000. with Heineken the main ‘Presenting right to charge organizers sanctioning Relevent bought these rights from the Partner’ – having replaced Guinness fees – eats into Relevent’s income. teams the following year in return for in 2016. Avocados from Mexico, Hertz,

@SportBusiness | www.sportbusiness.com 65 66

INTERNATIONAL CHAMPIONS CUP out of planning summer tours.out ofplanning summer “It’s the feesare onlyone. clubs participatingintheICC, ofwhich advantages to are several There major Power to theclubs well-received thusfar.”very their sponsorshipsandbrand. It’s been we wantto activation around givethem inpre-season, just takingcare ofthem want to givemore to theteams than can integrate itinto ourmarketing. We we candoitcost-effectively andwe events. It makes as alotmore sense for theclubsto hire usto dotheactual Plusisanopportunity events. Relevent watchwould provide partiesorsponsor that clubs wouldhire outsideagencies activation forteams and theirsponsors. Plus,providing called Relevent endeavourscommercial viaasubsidiary help someclubswiththeiroverseas interested.”now andtheUS,Heineken Asia between is play three gamesandwe’re tiedtogether it’satournament now andeachteam interest insinglegamesbutbecause didn’thavea goodexample.They an go outandmonetizethat. Heineken is sponsors, ICCsponsors...now wecan ofclub Before itwasahodgepodge changed thedynamicoftournament. sponsorship rights,too. Thathasreally territory rightsforTV, webought allthe sponsorship,” hesays. out andcreate atour around that that mightbeandtheclubwouldgo Malaysia ortheUSChina’wherever would say, ‘weneedyouto dogamesin the ICCbutasateam, alotofsponsors clubstouredthe modelwhen notas friendlies.summer “Thinkingbackto for has increased sponsorshiprevenue almost four-fold increase on2014. rose torevenue around $23min2016,an Partners’ from 2017. Sponsorship and XYIENCEcontinuingas‘Official deals, withAlly, Gatorade, VividSeats abletoICC hasbeen secure multi-year thetournamentAs hasmatured, the Partners’ ‘Official new forthisyear. McDonald’s andRakuten, are theeight Hennessy, Konami, LaLiga,Mastercard, www.sportbusiness.com | It alsotakes someoftheeffort Stillitano says: “We foundthatalotof From nextyear, willtryto Relevent weboughtallthehome “When Stillitano says theICCformatitself @SportBusiness sense of “collegiality and camaraderie of“collegiality andcamaraderie sense but headmitsthe ICChelpsmaintaina withbothUefafriendship” andFifa “a strong relationship” and“good long-term success. andgivinggreatereasier payouts for makingqualification and Spain–by four leagues–England,Germany, Italy forthetoplife easier clubsofitstop leaguewasalsoontheagenda. super discuss theICCbutformationofa Manchester United –nominallyto ManchesterLiverpool, Cityand Chelsea, from Arsenal, representatives Stillitano heldtalksinLondonwith situation. In 2016,to much controversy, significant role inthisever-evolving Stillitano andRoss play asmallbut breakaway have since. continuedever date backto 1998andrumoursofa body. footballgoverning the continent’s Europe’s top withUefa, clubs’leverage logistics ofthosegamestoo.” to besoyoumay aswelldealwiththe a gameinmarket you’re going where “You don’twantthoseteams on putting andtheclub,”saysmanager Stillitano. on that. That’s almostacourtesy to the We stillarrange thatandtake therisk will askfortwogamesoutsidetheICC. Earthquakes Stadium. atLevi’s StadiumandagainstSanJosePhoenix attheUniversity of Club América Manchester United’s matches against outsideoftheICC,friendlies suchas preliminary fixture listbeformulated. cana then ortheUS.Only Asia play summer, inthefollowing generally intend they whichcontinent toknow tournament theclubsletRelevent ends, to trust.” some comfort,andthatcomfortleads to workwiththeirpeopleandgivethem territory,new easy. it’snever We’re able running atour yourself...and youare ina Ulipresident Hoeness. the country,” says Bayern Munich’s in the stadium,organizationhere co-ordinates thedates, everything: tomuch better have someonewho Stillitano insists Relevent maintains Stillitano insistsRelevent It wasn’t longafter thatUefa made League Plans foraEuropean Super Playing intheICC alsoincreases like“Some managers, Jose Mourinho, alsoarranges summer Relevent Almost immediately after one Stillitano notes: youare “When pocket.” Z so badto have asecond optioninyour than them.” company, canmaybe dothejobbetter that theclubs,together withaprivate Fifa isshowing Relevent andUefa League. of playing intheChampions eachother wayconvenient withoutthepressure of oursandit’sniceto ina meetthem club youplay becausemostare friends friendships. which Soitdoesn’tmatter clubs like are big –there eachother Rumminegge says. “Theinternational the samedirection asthebigclubs,” sentiment. “TheICCisthinkingin thebigEuropean teams”.between ICC SPONSORS,ICC 2018 Hoeness adds:“Sometimesit’snot “The mostimportantthingisthat Bayern, for one,agree, withthis PRESENTING PARTNER OFFICIAL PARTNERS C

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