June 2020 Issue no. 262

www.sportbusiness.com The shape of things to come INFRONT’S BRUNO MARTY ON PRIVATE EQUITY, MEDIA RIGHTS AND THE NEED FOR CO-OPERATION

INSIDE THIS ISSUE

Bundesliga ‘ghost games’ Legal challenges ‘inevitable’ 5 technologies to Coca-Cola’s Riccardo provide backdrop for after pandemic leaves get fans back into Fort on Tokyo 2020 sponsorship reset mark on football calendar stadiums postponement Veronika Muehlhofer, CEO at Millionsports ADVERTISING FEATURE and FIFA Master Alumna The Austrian Veronika Muehlhofer is one of the leading figures in the sport of Return-to-Play measures and concepts in the rugby today. She is the CEO of the Swiss Rugby Union, the national federation second one. At the same time, I tried to make for the sports of Rugby in Switzerland, she sits in the Board of Rugby Europe, sure the 7 employees of the Swiss Rugby the continental federation, as well as on the Council for World Rugby, the Union keep getting their salaries paid, and the international governing body for the sport. Additionally, she runs her own events organization stay alive and in business through consultancy company, Millionsports, which provides services to local organising the crisis, when it had to completely shut down committees of major events such as the Olympic and Paralympic Games. all its activities. I was also invited to participate in various working groups dealing with the Veronika, a graduate from 4th edition of the FIFA Master (2003-04), started pandemic and its aftermath, both on the sport- her career in sport quite early on, still when she was at Stanford University, in technical side, as well as an organizational side California, where she worked at their sports department, organising sports and in media operations. events. After graduating from the FIFA Master, Veronika joined the Organising Committee of the Torino 2006 Winter Olympic Games, as the Deputy What will sport look like when this crisis is past? Will it go back to what it was? Competition Manager for Ice Hockey. After the Games, she was recruited I think sport as it is played at the grassroots level will go back to the way it as Event Manager by the International Ice Hockey Federation (IIHF), where was before. Professional sports and events, however, will not go back to being she stayed for approximately five years. After that, it was time for a bigger exactly as before, and in part I think that’s a good thing. This type of disruption challenge. “In 2011 I decided to start my own company: Millionsports. I left the also provides an opportunity to rethink certain practices, and to improve the IIHF with excellent relations and they were actually my first client. I then applied things which seemed to be rigidly stuck in their ways before. I think the biggest to become a sub-contractor for London 2012, and those two first project really lesson is that every challenge also brings enormous opportunities, and that we helped me to get my consultancy business off the ground”, Veronika recalls. need to be organizationally, culturally, mentally, and psychologically prepared Here is more of the talk with Veronika Muehlhofer: to seize them.

How has the current pandemic affected your work? What would you say was your biggest achievement so far? With the pandemic, all my events I had lined up in what is normally the busiest There are a number of things I am proud of: delivering the men’s and time of the year, between March and August, were cancelled within the space women’s Olympic Ice Hockey tournaments in Torino 2006 under challenging of just 3 days. As I was already used to a “Work from Anywhere” type of rhythm, circumstances, to the highest standard of quality and organization; being voted long before the pandemic, my working style did not change much through the to the council of World Rugby; helping to found the Swiss Women’s national lock-down. However, while I normally travelled a lot to events and to meetings team and coaching it to its first European Championship qualification, and to a and conferences, that has certainly changed, with all meetings now held on silver medal at the European Championship are some of them. Zoom or Teams or Skype. How important was the FIFA Master for your career? During the pandemic, despite all sports and all events being cancelled, my work The FIFA Master has been instrumental for my career. It prepared me for a was very busy. I was working a lot for Swiss Rugby, and international rugby, career in sports management and I would absolutely recommend it to anyone in putting in place the lock-down measures in the first instance, and then the wishing to start a career in sports management.

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

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www.cies.ch CONTENTS

June | Issue no. 262

Worldview

5 No player is bigger than the sport – really? 6 Labor angst to restart 2020 season leaves MLB at crossroads 7 Asian football’s overhaul 8 Covid-19, Race and Gen Z

Covid-19 10 Organised, timely and efficient: German football shows the way out of lockdown 22 Technology firms and entrepreneurs prepare for the 22 return of fans to stadiums 32 Bundesliga ‘ghost games’ provide backdrop for sponsorship re-set 64 How the AFL used its biggest asset to tackle Covid-19 financial woes

Agencies 14 Bruno Marty: Sticking to guiding principles is key to building the post-Covid-19 future

Finance and Law 18 Legal challenges ‘inevitable’ after pandemic leaves mark 28 on football calendar 61 Nic Couchman | The long view – investment opportunities in the rebuilding of sport

Events 28 World TeamTennis poised to set significant precedent for staging events in front of fans

Sponsorship 36 Four years on, LaLiga’s international focus is paying off 32 in sponsorship 42 Coca cola’s Richard Fort: Tokyo Olympics will be a great sign of the recovery 58 Rise of the Red Devils drives new Belgian FA partnership strategy

Fan Engagement 50 MLB looks for audience lift in reformatted Draft

Business Development

54 Andrew Messick, Ironman: “There’s going to be a strong 50 54 trend towards localisation.”

TWITTER@SportBusiness | www.sportbusiness.com 3 4 4

WORLDVIEW | LONDON – really? I A growing group offansfollow theirfavourites from clubto club(MARCOBERTORELLO/AFP viaGettyImages) players thanteams rather andswitching individual and more fansare following play.they Inon,more fact,hewent theirfavouritefollow players wherever from leaguesaround theworldand can because fanshave accesstocoverage TV makes heexplained, nodifference, facing thesportssector rightnow. It highlights oneofthemajorchanges relationship withhomefans. home countryhadanimpactontheir stars whoallplay forclubsoutsidetheir was asked having whether ateam of Worldview |London www.sportbusiness.com | No player is bigger than the sport No playerisbiggerthanthesport Kevin Roberts, Editorial DirectorKevin Roberts, His wasilluminating, answer and Royal BelgianFootball Association, marketing andcommunicationsatthe Leroy, Manu (p58), Review headof n aninterview forSportBusiness TWITTER @SportBusiness

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The deal represents something of a long-held notion that no player is bigger Head of Media Sales coup for the company and vice-president than the club or the sport itself. Cristiano [email protected] + 44 (0) 2072 654182 Misha Sher sees it as a timely and logical Ronaldo has already made us question move. “Never before have athletes the truth of that statement and, as the www.sportbusiness.com had such an incredible opportunity to industry gets to work to create the Published by: transcend their sport and develop a next generation of globally connected, SportBusiness, a division of SBG strong, personal brand that’s relevant profesionally branded superstars, it will Companies Ltd, Park House, 116 Park Street, London, W1K 6AF in culture,” he said in the official come under further pressure. Z T: +44 (0) 20 7265 4100 F: +44 (0) 20 7265 4220

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TWITTER@SportBusiness | www.sportbusiness.com 5 6 WORLDVIEW | NEW YORK W around the world, there was troublearound theworld, there major USteam sport. camps thatthreaten MLB’sstatusasa the divisionsbetween forward deep the publichealthcrisishasalso brought in areas suchasgamblingandticketing, sportsindustry trends long-emerging broad, other isaccelerating pandemic negotiations. scheduled round ofcollectivebargaining and unionheadinginto nextyear’s theleague relationship between exposedanalready fracturedfurther andthelaborsaga season’s length, formandatingtheregular powers guy,” wasforced to usehisunilateral Rob aself-described Manfred, “deal oftheresumption ofplay.components a negotiated fornumerous agreement thatnotablyfailedtoepisode produce oftheseasonrestart, an implementation process thatledto theleague’s bruisinglabornegotiation the deeply average innearly80years? finish withtheleague’sfirst.400batting abbreviated to ahitter seasonallow pitching matchups looklike? Couldthe week mighttheopening What Series? odds foreachteam to wintheWorld regular are season?What thegambling totals duringthe forthcoming60-game team projections ofalltypes. community wasabuzzwithplayer and the 2020season,onlinebaseball www.sportbusiness.com | Worldview |New York leaves MLBatcrossroads Labor angst to restart 2020season Labor angstto restart Eric Fisher, USEditor Long before thevirustook hold Just astheongoingCovid-19 Instead, leaguecommissioner But thesequestionsquicklyforget areWhat eachclub’sestimated win finalizing plansto restart MLB Players Association League Baseballandthe ithin hoursofMajor TWITTER @SportBusiness

“The publichealthcrisis will be allowed limitedwill beallowed fansatbestin seasons, declines insixof thelastseven as MLBisgrappling withattendance needs,particularly the sportcurrently without similarlaboracrimony. arestart plan anddevelop of Covid-19 was ableto managethecomplexities this. majorUSsportsleague other Every comingoutof formal laborgrievances several will beatleastone,andperhaps each direction, anditisexpected there in shotacross thebow “bad faith”were step.at every for 2020,somethingtheunionrefused reduction uponprorated player salaries proposals callingfora ownership included orfullycontemplated. agree onwhatthatinitialdocument even Butthetwosidescouldnot pandemic. to restart play andpay players amidthe forhow that allegedlylaidoutprovisions struckinMarch was aninitialagreement existing tensions into There overdrive. operating. markets free agent recent how were young players of andrisingconcerns timemanipulationforsome service issues, includingallegationsof structural of misgivingsonnumerous Already, players andunionhadplenty inbaseballlaborcircles.brewing has brought forward deep divisions that threaten MLB’s divisions thatthreaten status asamajorUSsport.” The ongoingsituationisthelast thing oftheuglysaga,words By theend That soonmanifested inmultiple The pastthree monthskicked those e [email protected] apparent magicbullets.apparent Z darkening are no laborclouds,there and the ofbaseball’sissuesnow depths playing. currently talent Butamidthe ofhistoric-level isplenty time? There this help thesportregain momentum steroidsullied by revelations). home runchases(albeitonesultimately nottodevelopment, historic mention Media, stadium andarunofnew teams, theformationofMLBAdvanced sharingamong revenue comprehensive wave of ofleagueexpansion,theadvent New York Yankees’ dynasty, another consecutive gamesplayed streak, the includingCalRipkenperiod, Jr.’s and industrymilestones duringthat majorhistorical several aided by fiscal footingagain,aprocess greatly part ofadecadeforbaseballto findits to take hold. beginning divides withinthesportwere was palpableandtroubling economic World Series. Fan outrage withthegame led to thecancellation oftheprioryear’s a fifthdueto laborcrisisthat another averagewhen plummeted attendance by similarly all-consumingcrisiswas1995, initsmore than150-yearhistory.other finds itselfatacrossroads like none LeagueBaseball,MLB within Minor of financialstress andnegotiatingangst involving twoteams, amounts and deep stemming from cheatingscandals USsportsproperty.any other lost more gamesto than thepandemic lossesthisyearithasalready revenue slow,being overly andisfacingmassive 2020, carriesanimageofitspaceplay What circumstances and events will circumstancesWhat andevents It wouldultimately take thebetter The lasttimebaseballfounditselfina Add inmore negativeenergy WORLDVIEW |SINGAPORE

Worldview | Singapore

Kevin McCullagh, Senior Analyst, Asia [email protected] Crunch time for AFC overhaul

ommercial overhaul” stories in the sports business are often fascinating. The most interesting are ambitious, Cexpensive, delivered with grand rhetoric, and put big reputations and accepted wisdom to the test. Liberty Media’s takeover of Formula One is one example. The belief was that the previous owners had let the series stagnate, particularly by neglecting (Koki Nagahama/Getty Images) digital media. Bernie Ecclestone’s observation that teenagers don’t buy clear opportunities to improve the AFC than anyone else - Seamus O’Brien, then Rolexes sounded absurdly out of touch product. Tournaments were considered at MP & Silva, and Andrew Georgiou, and seemed to encapsulate the sense ripe for format changes. Their branding then at Lagardère Sports. O’Brien and that F1 was in need of fresh thinking. But looked dated. The quality of broadcast Georgiou’s World Sports Group agency three years, $4.6bn, and several high- production across the continent had had sold the AFC rights for the previous profile executive changes later, and it’s been inconsistent. Some said digital 27 years. hard to say that Liberty Media’s overhaul rights could be exploited more smartly. With eight months to go until the first has so far been a success. Underpinning this were strong matches, just three deals announced, The biggest live commercial overhaul fundamentals that pointed to certain reports from the market that big story in the Asian sports business long-term growth - the Asian markets asking prices are going unmet, and the is entering a critical phase. Football have massive populations, growing global economy stunned by Covid-19, Marketing Asia, the newly named economies and hundreds of millions the pressure on FMA to deliver is agency with the exclusive mandate of football fans. China was the ace intensifying. to commercialise Asian Football card, with a government eager to build Murphy recently told me that a raft of Confederation rights from 2021 to 2028, a world-beating football industry and further deals are completed and waiting will in the second half of 2020 begin host a Fifa World Cup in the next for announcement, that all commitments delivering on its $2bn-plus contract. couple of decades. to the AFC had been fulfilled to date, and The AFC’s competitions will be FMA’s Chinese joint-owners that he was confident his company could rebranded and consumer-facing DDMC were the key to unlocking deliver an overhaul of the AFC properties marketing campaigns for them will the market. Their sports marketing that would pay off for all stakeholders, begin. Commercial partners will start to subsidiary Super Sports Media is one including the confederation, commercial be incorporated into those campaigns of the most successful in China, and partners, and fans. and a flurry of media and sponsorship its understanding of the market was With the possible exception of rival rights deals is expected in the lead-up expected to yield strong results. agencies that fancy their own chances to the first matches of the new cycle in But it was clear that FMA, then called with the AFC rights, one expects most March 2021. DDMC Fortis, had a mountain to climb. in the Asian business will hope FMA FMA is led by Patrick Murphy and It far outbid rival agencies to secure the can deliver on the great promise of the David Tyler, once of Team Marketing, rights and committed to a minimum partnership. the agency that so successfully revamped guarantee that amounted to a more-than- At a time of massive uncertainty Uefa’s club competitions in the 1990s. fourfold increase in the AFC’s rights across the business, many would Their involvement has inevitably led to income. welcome some of the beliefs on which comparisons with that project. Furthermore, the two closest rival the deal is based - particularly Asia and When their deal was announced bids were led by the two executives that China’s continued ability to deliver in 2018, industry experts pointed out arguably knew the AFC rights better revenue growth - proving accurate. Z

TWITTER@SportBusiness | www.sportbusiness.com 7 8 INSIDE TRACK I No sportsman hasbeenasoutspokeninfavour ColinKaepernick( oftheBlackLivesMattermovementNo sportsman thanquarterback www.sportbusiness.com | sports executive needsaprofessional breed of for instantdata. Thenew technology, globalisationandtheneed unprecedented rate, by driven atan and consumedismoving afforded white colleagues. and comewithoutthefiscalbenefits positionsare honorary BAME senior one BAMEchiefexecutive. Frequently, we have and onlyoneBAMEmanager in1992,yet2020 league’s inception League hasmore thandoubledsincethe inthePremier BAME footballers fans. In England, theproportion of Covid-19, Raceand GenZ and saysattitudespractices mustchangeforhuman,socialandbusinessreasons. As muchoftheworldreflectsonattitudes towards race andequality, underthemicroscope Tony Simpsonputssport Inside track Tony &Media Practice atSavannah andhead ofthe Sports Group Simpson,partner Change in how sportisadministeredChange inhow reflect theirparticipantsor leading sportsinstitutionsdonot boardrooms ofmosttheworld’s factthatthe t’s anundeniable TWITTER @SportBusiness and implement sustainablepositives and implement to orhow working environment, extract effectively respond to apost-Covid-19 to are notsure how business leaders on socialmedia,Isuspectmany Looking attheblizzard ofinformation ofrace. concepts me butalsotheirown was theirneedto notonlychallenge chairs, onethingthatalways struckme sector’s leadingchiefexecutives and in allitsforms,withmanyofour In 2020, that’sjustnotgoodenough. andsociocultural heritage. experience whoreflect theirown members working withadvisorsandboard Unfortunately, manyare out ofstep, the abilityto reality. handlethisnew toolkit and thatincludesempathy Having discussedrace and diversity, Carmen Mandato/Getty Images – all are a blend of different cultures. ofdifferent – allare ablend music welisten to, theholidays weseek cultures.different Thefoodweeat,the are populatedwe follow athletes by of experiences. Thesportsteamsdifferent together ethnicitieswith ofdifferent acoming will bethosethatencourage itself isaprivilege. education iswrong when a benchmark judged equally. Using educationaloneas tothe barriers sothatallcanbe entry on colour, butremove hire onmerit, hire andcompassion.Don’t leadership critical, requiring emotionally-secure the rightthingto doandit’sbusiness- It’susing ourpositionsofinfluence. movement. from theBlackLivesMatter Businesses thatthrivepost-Covid-19 But weneedto thischange embrace ) INSIDE TRACK Yet executive power remains steadfastly planning, but once successful, nearly of line at airports on a regular basis, white and predominantly male. always results in an explosion of not being told that restaurants/hotels/ In a post-Covid-19 world, companies performance and productivity. As I’ve clubs are full when they’re clearly not, will need to be globally ready, and the said many times: ‘You can’t be what you never having to give your children that winners will be those with diverse can’t see’. heart-breaking talk, never having to internationally-oriented boards. The And just to be clear, make sure your watch your daughters search for non- fastest growing, most innovative, BAME head count is representative Eurocentric standards of beauty. disruptive and prosperous urban throughout the business, not just over- I could go on, but you get the picture. centres, New York, Berlin, London and indexing around Executive Assistants, It’s because of this unconscious bias Paris, all have something in common: Doormen and Catering staff. that brand and corporate authenticity they are melting pots with a high What is happening on our TV screens need to be genuine, sustainable and concentration of immigrants. There’s and across social media may seem culturally embedded. It is important for a direct correlation between high- like a personal attack on the values corporations to step up and advocate skilled immigration and economic and systems you have worked in and for diversity and tolerance on a public performance. benefitted from. Here is a different platform. This can only happen when Employees with diverse backgrounds perspective. Asked recently, by a woman you have diverse executives at the top help create organisations that are of colour, why a particular ’White table who are part of the debate and resilient and effective, regularly Male’ was so angry with the Black Lives decision-making process. outperforming those that don’t invest in Matter movement, I noted the quote, Generation Z, race and a new post- or understand the values of diversity. ‘When you’re accustomed to privilege, COVID-19 working environment are According to the Deloitte Global equality feels like oppression.’ My own all intrinsically linked. Merit-based Millennial Survey 2020, 74 per cent team has seen this first-hand in letters diversity and inclusion are the only of working millennials believed their from incredulous candidates who didn’t options if your business wishes to organisation was more innovative with a get senior positions they felt entitled harness the power of a new and culture of diversity and inclusion. to. All lives matter, it’s true. But if you energised global population group. Z For those who seek a return to truly believe that statement, you’ll ‘normal’, it’s just not going to happen. understand why #BlackLivesMatter is so Tony Simpson is a partner and head of In 10 years’ time it’s anticipated that up important. You can’t have one without the Sports & Media Practice at human to 80 per cent of the global workforce the other, and if you disagree, you are capital solutions firm. Savannah Group. will be made up of Millennials – a group unconsciously part of the problem. Beyond his executive search career, he has that will start to occupy the majority So, let’s tackle the elephant in the been chief executive of an AIM-listed sports of leadership positions. Will your room. What is white privilege and marketing agency and launched a Middle leadership team be ready to do business what does it have to do with you? Eastern based global news channel. Tony with this new value-focused client base? White privilege is people not being is a trustee of the Black Cultural Archives, Savannah Group’s The Business of surprised that you’re articulate, never an advisory Board member for Special Global Content Report revealed that being followed by store detectives in Olympics GB, and a regular presenter on out of 100 of the world’s largest Sports, your 40s and 50s, not being pulled out the benefits of a diverse workforce. Media and Entertainment companies, ‘80 per cent were unable or unsure how to develop content monetisation strategies for Gen Z’. Imagine the commercial possibilities of a brilliant young and diverse team tackling this issue. The new breed of CEOs will challenge preconceptions with flexibility, putting people and HR at the centre of their decision-making process. Such leadership traits will be necessary for small companies and large corporations alike. Corporate culture needs to be updated. Workplace diversity is an asset for businesses and their employees. It incubates innovation, creativity and empathy in ways that homogeneous environments seldom do. It takes careful nurturing and conscious (Spencer Platt/Getty Images)

TWITTER@SportBusiness | www.sportbusiness.com 9 10 COVID-19 – EVENTS T www.sportbusiness.com | Callum McCarthy league and clubs from government, cohesive effort Bundesliga’s return downto the seasonifpossible, butcategorically beginning thatwe intended to finish wasacleardirection setatthe “There International, told SportBusiness: DFL’s globalmarketing armBundesliga able to theproject. derail butnothing has been postponements, positive tests, protocol breaches and have football.There of German been played across thefirstand secondtiers league’s return, 52matches have been restart possible. thisplan,makingthe has underpinned government theGerman response by responsibility. Theorganised,proactive andcollective principles ofpersonal foundedonthe a medicalconcept league, clubsandplayers hasenabled work wasfarfrom easy. Organised, timelyandefficient:German football showsthewayoutoflockdown Martin Meissner/Pool viaGettyImages) (Martin Robert Klein,chiefexecutive ofthe Across thethree matchdays sincethe the A cohesiveeffortbetween sports industry, butmakingit sighs ofrelief across the Bundesliga hasprompted he return oftheGerman TWITTER @SportBusiness

and thepublic inspired confidence from partners Commitment to transparency in place. announced, along withthemeasures put Köln players tested positiveanditwas immediately,” hesaid.“Three FC theclubstoby thelocalauthorities and somethingthatwascommunicated anticipated, themedicalconcept, asper way, butthisissomethingthatwas also akey ofthecomeback. element clubsandplayers was local government, theleague, communication between thatclear return, butKleinbelieves to central been theBundesliga’s to work.” tohappen –to befootballers getback to findasolutionforworkers –who butinfacttrying special treatment done ontop ofthat,it wasn’tabout testing week.Our 500,000 per wasonly of government theGerman made by going to affectthe testing commitment which,from theget-go,concept wasnot paramount. communities, players andstaffwas stating thatthehealthandsafetyof “There have“There hiccupsalongthe been Testing andsocial distancinghave “It wasaboutcreating amedical

records broke international viewership v Schalke onMay 16 Dortmund five European leaguesto stop playing sponsorship andmatchday income. €750m ($834m)across mediarights, league andclubscouldhave lostupto cancelled altogether, itisestimated the manner. Shouldtheseasonhave been the DFLhadnotresumed inatimely if faced thepossibilityofinsolvency the top football of German twotiers football. Thirteen ofthe36clubsin have catastrophic forGerman been A failure to restart theseasonwould Domestic peril in thisform.” the leaguewouldnothave possible been therestart of Herrlich said.“Otherwise colleagues didnotactsothoughtlessly,” the team thatweekend. from coaching upandwithdrew owned of toothpaste. Realising hiserror, he left theteam hotel andboughtatube Wolfsburg, Herrlich absent-mindedly days priorto histeam’s match against illustrated thatbuy-inperfectly. Two The Bundesliga was thelastofbig “I amgladandgrateful thatmy17 Augsburg head coach Heiko Herrlich

COVID-19 –EVENTS partners than originally agreed but there was unanimous recognition that in both sporting and financial terms, something was better than nothing. In the end, the DFL, Bundesliga International, and the clubs could not realistically have hoped for a better result.

Time to shine Immediately after German professional football was shut down, Bundesliga International ramped up its activity. Klein and his team maintained near- constant contact with the league’s international partners to ensure they (Tobias Hase/Pool via Getty Images) made use of the huge amounts of archive and ancillary content available and has been the first to return. But in not to agree a deal was Discovery, as part of their deals. the interim, the DFL had to manage its owner of commercial and pay-television “It shone a light on the DFL as a relationships with domestic broadcast broadcaster Eurosport. Discovery media group and enabled us to take partners to ensure media-rights sublicensed its rights to streaming advantage of all the innovation that’s payments reached the clubs. platform DAZN prior to the start of the happened over the past few years; When the league was postponed on 2019-20 season but is still responsible whether that’s one of the richest March 13, Bayern Munich chairman for paying the league. archives in football, legends activities, Karl-Heinz Rummenigge voiced his After failing to reach an agreement or social media for ourselves and our concerns over domestic broadcasters with Discovery, its deal was cancelled partners,” Klein said. withholding the last of four media-rights and a new one struck directly with To make sure it kept up with demand payments due in the 2019-20 season: “At DAZN. It is understood the DFL will for stay-at-home live content, the the end of the day, it’s about finances receive less from each of its broadcast Bundesliga Home Challenge – an and the big outstanding TV payments esports competition that incorporated to clubs.” “There was a clear direction professional players and referees – was He continued: “Everyone should set at the beginning that we distributed to all of the Bundesliga’s understand what ending the season international broadcast partners and would mean for clubs. Most of the intended to finish the season.” generated two million unique viewers revenue comes from the TV sector. If Robert Klein | chief executive, per weekend. this sector were to fail, there are fears Bundesliga International While the broadcast partners were many small and medium-sized clubs looked after, they were also kept will experience liquidity problems. We hope this [the postponement] will end quickly.” On April 23, the DFL announced it had reached agreements with its primary broadcast partner Sky Deutschland and public-service broadcasters ARD and ZDF to ensure that at the very least, part payments would be made to clubs in the top two tiers. Sky, by far the Bundesliga’s biggest financial contributor, committed to release half its final payment a month early in return for an overall reduction of the amount due when the league restarted. It was a compromise that needed to happen and, again, helped secure buy-ins from the clubs. Head coaches Heiko Herrlich and Steffen Baumgart bump elbows prior to the Bundesliga match between FC Augsburg The only domestic broadcast partner and SC Paderborn 07. (Matthias Hangst/Getty Images)

TWITTER@SportBusiness | www.sportbusiness.com 11 12 COVID-19 – EVENTS www.sportbusiness.com | Bundesliga match before the shown was 725-per-cent thanthelast higher vSchalke ofDortmund that viewership rights to ESPNfrom 2020-21–reported Fox Sports–whichwillloseBundesliga to theleague’spostponement. onBT priorBundesliga’s peakaudience doublingtheof 192,000viewers, Eintracht Frankfurt attracted apeak Borussia Mönchengladbach and gamebetweenviewers. Theevening Schalke 04 averaging about500,000 and BorussiaDortmund between with theweekend’s marquee match 3:30pm kick-offs (2:30pmUKtime), tuned into watch theleague’sfour through theroof around theworld. onMayscreens 16saw ratings go The Bundesliga’sreturn to international Ratings andsuccess choose to gothisway.” ifthey do that,butwewillsupportthem wantto they whether dothatandcan todecision isdown thebroadcasters of their free-to-air channel.Ultimately, the have broadcast a3:30pmkick-off on first twomatchdays, SkyDeutschland matches free-to-air,” Kleinsaid.“For the tothe partners wouldshow seeifthey major markets. made available to publicin thewider had hopesthatsomematches couldbe often atreduced prices. However, Klein backonboard,get lapsedsubscribers live Bundesligamatches usedto were thanever.more eyeballs International benefited from reaching leagues, theDFLandBundesliga top-levelno competitionfrom other and 5:15pm. 2:45pm livegamebetween every show BTSporttoBundesliga’s UKpartner temporarilybeen lifted, the enabling footballassociationshad and Scottish blackout theEnglish by ruleenforced matchday –manyforthefirsttime. top-tier Bundesligamatches played each allnine showed most broadcast partners live gamesaspossible.In majormarkets, to couldprepare so they asmany show informed ofthetimetableforareturn In theUS,pay-television broadcaster apeakof625,000viewers In the UK, have“There discussionswith been For mostpay-television broadcasters, In theBundesligafaced atimewhen theSaturdayIn theUK, afternoon TWITTER @SportBusiness “They are workingtoprovide “They leaving itto to eachpartner decidethe distributed to broadcasters, instead sound effectsto theraw feeds International decidedagainstapplying the spectacle. full ofpassionate fansformakey partof touchy oneinGermany, stadiums where stadiums oraddedto broadcasts –isa inthe noise–either of piped-incrowd baying forlivefootball.Butthesubject facedwithapublic go farwrong when of liveBundesligato theirscreens.” keenwho were to maximisethe return withbroadcastersmany conversations all 211territories, have butthere been can’t say in thatallgameswillbeshown Kleinsaid.“I broadcasting allofthem,” the matches and willeffectivelybe excited to have theavailability of 230,000 watching thelivegoalsshow. that match onSky Italia, withafurther an average of155,000 watched viewers Netherlands, doublethenorm.In Italy, of203,000onFoxaudience Sportsinthe league’s postponement. the best football experience the bestfootballexperience Bundesliga International during thisuniquesituation.” Robert Klein |chiefexecutive, Robert The DFLandBundesliga mightthinktheBundesligacan’t One “A very were ofpartners number The samematch attracted apeak Alexandre Simoes/Borussia Dortmund viaGettyImages) (Alexandre Simoes/BorussiaDortmund situation.” Z duringthisunique football experience are workingtoand they thebest provide havebe amplified. They doing tests been shot; allthesesoundscouldpotentially and received, aballtaken onthechest,a best atmosphere.” testingwere to seewhatcreated the and inthefirstround ofmatches they technology lookingatit soyes,they’re sophisticatedand extremely sound matchday per cameras uses several belongs to theDFL[Sportscast] still the liveproduction outfitthat action viavideoandsound. to toon how closer bringviewers the focusing closed doorsbutiscurrently production ofgamesplayed behind testing techniques new to improve noiseintheUK. only ambient matchesthe US,whileBTshowed with broadcast matches noisein withcrowd one way orthe other. Fox Sports the sameoptionandreceive matches the Skyfeedare unableto giveviewers the fixture beingplayed. to noiserelevant ambient theteams and reactions and songs, chants,crowd via alivesoundboard ofpre-recorded option to noiseproduced hearcrowd matches,its own gave the itsviewers best courseofaction. He continues:“Passes are beingmade “In line withthemedicalconcept, Klein says theDFL isconstantly International broadcasters thattake whichproduces Sky Deutschland, Giving agencies, brands & rights-holders true added value through sponsorship deal data, activation campaign case studies and daily news

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Request a demonstration at: sportbusiness.com/sponsorship Email: [email protected] or call: + 44 (0) 2072 654100 14 AGENCIES T ability to some adjustandbeinnovative, ontheir and,depending will suffer hesaid. at amore balancedlevel,” willcomeback but some ofthisgrowth years inmanymajorsportsand I expect thelast20 have over hugegrowth seen soon.Weand Ithinkitwillbebackvery countries of theeconomiesdeveloped withfans.engage technologyconditions andemploy to ability to adaptto changingmarket willbedeterminedand losers the by the bedrock ofsuccessandthatwinners willremain andtheirpartners owners long-term rights relationships between sport willreturn strong, thatenduring, to thecrisis,firminhisbeliefthat it faces. opportunities andattendant challenges the way thesector isshapingupto the on perspective him auniqueinsider’s the heartofdeal-makingandgives media andmarketing sales. aswell sportsoperations, summer thefootball,winteroverseeing and encompasses vice-president senior Infront hisrole as companywhere divisionatthe leads theProSports accelerated thatprocess. hiatushas thattheensuing believe technology,by figures andmanysenior toevolve flourishinaworldchanged being forced to itmust how consider theindustrywasalready a timewhen ecosystemsport’s commercial hitat www.sportbusiness.com | Kevin Roberts than exclude established agencies Privaterather Equityfirmscanpartner is keyto buildingthepost-Covid-19 future Bruno Marty: Sticking to guiding principles Bruno Marty: “In theshort-term some ofthesports “Sport isanincredibly importantpart He unruffledinhisapproach remains It isapositionwhichputshimat isBrunoMarty,Among them who shocktoThe Covid-19-induced across thesportssector. appears to begainingtraction kill youmakes youstronger he notionthatwhatdoesn’t TWITTER @SportBusiness there are noone-size-fits-all solutions.there I has toevent belooked atseparately as individual solutions. sportand Every andyourkeyholders andfind partners a reality. You talkwithyourrights- becoming and inmanycasesthisisnow andlong-termpartnerships cooperation At thesametimepeopletalkabout carefully lookingatitscashpositions. thanconfrontation. rather co-operation says,Marty atimefor more thanever bottom ofthesportsfoodchain.It is, issue fororganisationsfrom top to more important has becomeaneven thanothers.”will survivebetter Bruno Marty, senior vice-president,Infront Bruno Marty, needed to address liquidity crisis Co-operation notconfrontation “Every company and federation is companyandfederation “Every dryingup,liquidity cashflows With (combat) anyliquidity shortages.” years. You to now helpeachother is to worktogether forthenext10-20 have taken placebecausetheintention Hockey Federation, gooddiscussions suchastheInternationalclients, Ice are noevent-related costs. our With there are noevents soifthere events, isrelatedamount oftheirspending to to have. more thanthey spend Alarge careful abouttheirliquidityandtrynot short-term. term inthe andhelping eachother talks (goingon)focussingonthelong- are lotsofinteresting there understand financial impactonbroadcasters will limit Swift returnof live sport That said,therealities of anybusiness are quite federations “In general, AGENCIES sector are that a shortage of cash hard hit by the lack of live sport, raising tech giants, which have so far chosen to creates a buyer’s market and an upturn concerns over the prospects for highly remain bit-part players in sport, to make in interest in sport from private equity leveraged OTT operations whose a more determined move into the space. firms – which was evident event before complete reliance on sports revenues “The reality is that the door is Covid-19 – is unlikely to fade away if appears to make them more vulnerable already open to them. It is clear that there are good deals to be done. than more diverse operators. The hit the younger generation is expecting to With organisations such as CVC taken by established sports broadcasters consume sport on different channels already invested in prime rugby and a potential damping down of the and whenever they want, taking all the properties and now circling Italy’s sports rights market has also led to social media platforms into account and Serie A it might appear that the new renewed speculation that this could be I think those players are already looking forms of ownership of sport could put the moment for some of the cash-rich at sports,” Marty said. the established agency model under pressure. But Marty feels that the model has evolved sufficiently to ensure that agencies have an enduring role. “Maybe 10 years ago rights owners saw agencies purely as a bank for refinancing their events, but this has already changed. In many aspects we are now a service provider, still paying significant amounts to them but doing much more than sending a paycheck once a month. “Private equity firms do things for the sake of profit which has to arrive within a limited amount of time. We also want to be profitable, but we are taking into account a longer period of say 10 years or more, because we work in partnership to help sports grow. “It’s difficult for me to know exactly what it means when PE enters relationships in sports directly, but I hope the sports entities don’t only look for short-term liquidity and forget about the long-term commitments.” The sentiment is based not just on philosophy but the realities of the current situation around Italian football. While CVC’s proposal – believed to involve a €2.2bn ($2.5bn) stake in a new company to market Serie A rights – is under consideration, Infront is working on a proposal to extend its own advisory role with the league. “While I don’t know what CVC is discussing with the league I have the feeling (the two proposals) are not necessarily in conflict with each other. One is about financing and getting something in return, while we are talking about how to commercialise for the next three-to-six years. “My feeling is that, with our specific expertise, we can cooperate with the CVCs of the world which have the capability to finance such activities.” Media companies have also been Football, but not as we knew it. (Martin Meisner/Pool via Getty Images)

TWITTER@SportBusiness | www.sportbusiness.com 15 16 AGENCIES www.sportbusiness.com | broadcaster. for markets youmightnotfinda where issupplemental OTT At themoment who manageleagues,notone-off events. will probably onlybefeasiblefor those focussing ontheOTT-only option.That broadcasters andchannelsbefore really still distributes itto thetraditional the programming ofitscontent but takes afederation That iswhere over hybrid modelismore likely to beused. solutionbutintheshort-termOTT a top to rights-holders goforanown term itmight beanoptionforthe go direct-to-consumer? platformsand to OTT launchtheirown rights market leadmore rights-holders you talked to fiveyearsago.” you talkto additional parties to those small. in financialconstraint willberather on traditional broadcasters ofbeing this yearand2021,Ithinktheimpact fully backin,say, thelastquarter of of thecrisislasts. Ifallthesportsare longtheimpact onhow that depends Serie A,attracting Private Equityinterest.( “I am convinced that OTT will remain willremain “I amconvinced thatOTT “My clearbeliefisthatinthelong ofthe So, couldanydampingdown anyway.“But thisishappening Today faster ithappen “Will Well now? TWITTER @SportBusiness Emilio Andreoli/GettyImages “We allhavetoadaptnew That meansmakingtheright at theirfinancesanditisabout haveleveraged to carefully lookvery those companieswhichare highly time partial solution.Atthecurrent or asanindependent in place,either the sport,adapt to technologies new , andexcitingwith new ways to play rethink theirformatsandcomeup who are willingandableto adjust,to audiences. with more deeply andengage eyeballs sports butontheirabilityto attract bigandsmall on adistinctionbetween But this,hesays, willbebasednotonly sportsproperties.polarization between ofa of thecrisiswillbeacceleration the long-term.” tobut bothsideswantthem in bethere discussions may bequite challenging individual talksto findsolutions. Those president, Infront technologies and be innovative. technologies andbeinnovative. choices..” Bruno Marty | Bruno Marty “Those whosucceedwillbethe ones thatonekey believes Marty impact ) Bruno Marty, seniorvice- Bruno Marty, company…it’s apeoplebusiness.” have to therightpeopleinour attract forget we andwenever rights-holders strong relationship wehave withour factor. abusinessbasedon the human remains it believes the future ofsport,Marty ups outthere. andallthestart- developments the new means makingtherightchoicesfrom all technologies That andbeinnovative. product. often have thetechnology butnotthe towith them products asthey develop companiesandtrytoinnovative partner Infront wefind Innovation Labwhere andwecreatedfor bigproperties, the activation andmonetisationconcepts platforms andtechnologies andfan digital whichdevelops Omnigon, Infront. In thattimewehave acquired at inthelastfiveyearshere difference we adaptto technology isthebiggest who don’t. separate thosewhosucceedfrom those production andinvolvefans. Thatwill integrate digitaltechnologies into their “At thecore ofourbusinessisthe But whiletechnology may bedriving “We allhave to adaptto new speaking,“Generally theway that Z Introducing a new report from

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For more information and to purchase the report visit: https://sprt.bz/GMR2019 email: [email protected] or call: +44 (0) 2072 654100 18 FINANCE AND LAW F www.sportbusiness.com | Adam Nelson of legal action League or EFLdon’t risk some kind “No scenario” in which Premier highly compressed end tohighly compressed end theseason, conclusion behind closeddoorsina is playing its2019-20campaignto and theneedsofsponsors. ofbroadcastersof clubs,thedemands staff safetywiththeeconomicinterests ofbalancingpublic, playerchallenge and facedtheunenviable league’s organisers a hugelycomplicated endeavour. The break dueto was pandemic theCovid-19 Legal challenges ‘inevitable’ afterpandemic leaves markon football calendar Even now that the Premier League thatthePremier now Even restart after enforced alengthy League,planningits Premier partsasthe as manymoving or asportingcompetitionwith TWITTER @SportBusiness

concerns, andcommercial contracts integrity,safety,economic sporting Leagues attempting to balance all potential legalclaims,because I he says “it’snotaquestionofavoiding to entitled were they receive.” paidfororhaven’tthey received what going to haven’t feelthatthey gotwhat “Whatever thesolutionis,someoneis Russell Speechlys,tells SportBusiness. in corporate sportslaw atCharles Satish Khandke, andspecialist partner party,” noaggrieved there’s where outcome almostunavoidable. is unfair, to with legalchallenges any the gamewhofeelfinaloutcome besomewithin willinevitably there squeezing 92fixtures into six weeks, For LeagueandtheEFL, thePremier anyscenario “I don’tthinkthere’s season inadvance ‘coronavirus proofing’ the 2020-21 Leagues shouldalready be clubs may arguethatthecircumstances it willbeplayed to completion,relegated conditions, withtheseasonlooking like thepresent under flight issecured. Even unlesstheirstatusinthe toptreatment towhom are almostcertain claimunfair threatened relegation, someof by those clubs Leaguewere the Premier proposed solutionsputforward by loudest objectors to manyofthe saidthandone.The That iseasier Potential legalchallenges amount ofdamage”. the available pathways creates theleast needto they What lookatiswhichof would say that’sprobably impossible. ( Visionhaus viaGettyImages) FINANCE AND LAW

The Premier League is playing out the remainder of the season behind closed doors, but legal challenges from clubs are not out of the question. (Shaun Botterill/Getty Images) compromise the sporting integrity of “I don’t think there’s any leagues have breached contract by not the competition, says Khandke. scenario where there’s no upholding their end of the deal.” In opposition are the Championship clubs who were anticipating ascending aggrieved party.” Sporting integrity to the Premier League. Satish Khandke | partner, Charles Dutch clubs SC Cambuur and De For a club such as Leeds United, Russell Speechlys Graafschap, which were set for top of the second tier going into the promotion to the Eredivisie when the break, the stakes could not be higher. 2019-20 campaign was declared null The club did not publicly comment On the other hand, if the Premier and void, have confirmed they are on its intentions should it be denied League reaches a conclusion while the taking legal advice with a view to suing promotion due to Covid-19, but its EFL doesn’t, “then it would be harder the Dutch FA (KNVB). SC Cambuur owner, Andrea Radrizzani, made pointed for the EFL to justify why it hasn’t done manager Henk de Jong had urged Leeds comments on Twitter about the early so, and Leeds would probably have a United and West Brom to follow suit decision taken in France to call an end case to bring against the EFL”. should the English Championship have to the season. As it stands, the EFL has cancelled been similarly curtailed. The issue of promotion from the the seasons for League One and Likewise in France, at least three Championship to the Premier League League Two but the Championship clubs have outlined their intentions is difficult because the agreements is underway, something Cassels says to take legal action after the country’s which ensure it are between multiple had to happen due to the nature of its Ligue de Football Professionnel parties. Leeds United, for instance, is relationship with the Premier League. curtailed the season with the current not a member of the Premier League “I’d have thought that the EFL should standings counting as final. Lyon, who and therefore has no direct contract try and mirror whatever the Premier miss out on European qualification and with the league regarding promotion League does, because they’re going potentially tens of millions of euros and would be unlikely to be able to act to create all sorts of problems for in revenue, and Amiens and Toulouse, against it. themselves if they don’t.” whose relegation to Ligue 2 has been “But if promotion had been cancelled “The simplest way to think of it is that confirmed, all claim the outcome lacks unilaterally by the Premier League, the Premier League’s and EFL’s rules are sporting integrity. then the legal case would probably be effectively contracts between them and That, says Cassels, will have been brought against it by the EFL, because their clubs,” Khandke explains. “If one among the Premier League and EFL’s there is an expectation between the side fails to abide by the rules, around highest priorities as they negotiated the two which says the Premier League the criteria for European qualification, restart. will accept three promoted teams from promotion, relegation, they’re probably “If they change the rules mid- the Championship,” says Tom Cassels, breaking a contract and will be open season, if they take any action that dispute resolution partner at Linklaters to legal action. The legal burden would disadvantages one club or another, legal practice. be on the clubs to prove that the then there’s a far stronger case for

TWITTER@SportBusiness | www.sportbusiness.com 19 20 FINANCE AND LAW there isanywaythere to sporting preserve gotisIdon’tthink “The difficultythey’ve That isunjustandwhollywrong.” formula to expelaclubfrom theEFL. inusingamathematical whatsoever Monday. isabsolutely “There no integrity do so,”hewrote inaclubstatement on playing, theopportunity to butisdenied reasonable chanceofavoidingevery itby forcing relegation onanyclubthathas – hasalready objected on thesegrounds. their seasononapoints-per-game basis through withitsplantofollow decide to theNational League shouldtheEFL bottom ofthatdivisionandberelegated side Stevenage –whichwouldfinish country andbeyond.” that have mooted already been inthis also behindsomeofthelegalchallenges claimed wasanunfairdisadvantage.It’s which therelegation-threatened clubs venues, behind therulingoutofneutral legal action,”hesays. “That’swhatwas www.sportbusiness.com | Liverpool. (Paul Ellis/AFPviaGettyImages A messageurgingthepublicto stayathomeduringthenationwidelockdownbecauseofCovid-19 outbreakisseenoutsideEverton footballclub’s stadiumGoodisonPark in Unfortunately, asCasselspointsout: “I don’tseeanyintegrity inarbitrarily Phil Wallace, chairmanofLeagueTwo TWITTER @SportBusiness ) “The difficulty they’ve gotisI “The difficultythey’ve Tom Cassels |disputeresolutionpartner, the government decideditwasn’tsafe the government season onthepitch, because either was nofeasibleway ofconcludingthe being ableto demonstrate thatthere in asportingsense. not advantageordisadvantageanyone season –ismore legallysound,as itdoes –completelylatter’s voidingthe2019-20 approaches, Casselssuggeststhatthe Comparing theFrench andDutch conclusion ‘Null andvoid’ versusplayingto foraclaim.” door isopen means thatwhatever youdo,Ithink,the able to comeup withanything, which integrity available. No one’sreally been Linklaters preserve sportingintegrity.”preserve don’t think there isanywayto don’t thinkthere It relies, however, ontheleague 2020-21, accepting three teams2020-21, accepting from the Leaguetothe Premier 23teams for tocompromise hadbeen simplyexpand a way to complete the season.” to strong incentive find That isapretty played, is£340mdown. andeveryone thegamesdon’t get isn’t anagreement: ifthere worth lookingatwhathappens you thinkaboutthesethings,it’salways may litigate onforsometime,butwhen manageable,”Casselssays.they’re “It important,but football are obviously contractual obligationsfortheseason. broadcasters ifitfailsto fulfilthe £340mto over collectively owe its Leagueclubswould that thePremier rights partners. TheBBChasestimated League’s relationships withitsmedia- to theimplications forthePremier option ofabsolute last resort due an wasonlyever the seasonentirely ran outoftimeto complete. toenough play, simply orbecausethey One proposed solutionfor One “The legalthreats from within thatwritingoff Cassels believes FINANCE AND LAW Championship but relegating no one. be, ‘no, you haven’t been hard done Ligue 2,” read the club’s statement. Even had that played out, there were to’. It will be, ‘yes, you have suffered a With regard to the Premier League, likely to be dissenters from the smaller detriment, but not disproportionately, Khandke says, “that means they’ll Premier League sides who are more and it wasn’t unreasonable for us to take need to be able to prove they took heavily dependent on their share of the that decision, taking everything that every reasonable action available to broadcast money, says Khandke. “The we’re responsible for into account’.” them to finish the season, and that deal is that the media-rights fees are Cancelling the season could their response to the crisis has been shared equally among 20 teams next potentially have become an option if reasonable.” season, and a club that’s relying on the Premier League was able prove Even with a generally amicable their one-twentieth share of the money there was no way to have completed solution now arrived at for this will say, ‘hang on, we should still get it. “Frustration is a legal concept that year, “the next season is even more that five per cent, not a one-twenty- basically says you can’t perform the problematic,” says Cassels, who urges third share.’” contract anymore,” says Cassels. “And the leagues to use this opportunity to if you can demonstrate that there’s no draw up more robust plans for similar Balancing act way you can perform the contract, then scenarios in the future. That, says Khandke, is a demonstration you are immune from consequences “There’s no guarantee they’ll be able of the point that there is no situation and failure to perform.” to start the 2020-21 season in August or that does not lead to someone claiming Lyon’s legal challenge, for instance, September, nor any guarantee they’ll be unfair treatment. has so far been based on the accusation able to finish the season if they start it. Even with competition back that the LFP acted prematurely, that And the results of any legal challenges underway, the Premier League the situation as it stood, and the regarding this season are going to and EFL must continue to work prevailing guidance from the French have long-lasting implications and set towards solutions that “take into government, did not represent a precedents for the future. So if I were account everyone’s positions, allow frustrating event, and that the league them, I’d be trying to wrap up a much representations to be made, and are could have waited longer and made a better codification of what you would robust enough and inclusive enough greater effort to conclude the season. do in the event of another Covid-19 to be defensible in some way”, says “This government position did not outbreak, as part of any and every Khandke. “The defence [against any seem to impose in a prohibitive way deal they do, be it with the clubs, the potential legal action] isn’t going to such a final stop today from Ligue 1 and broadcasters, or anyone else.” Z

The Ligue de Football Professionnel curtailed its season with the current standings counting as final. Aurelien( Meunier – PSG/PSG via Getty Images)

TWITTER@SportBusiness | www.sportbusiness.com 21 22 COVID-19 – TECHNOLOGY Technology firms and entrepreneurs Technology firms and entrepreneurs A before. from anythingthatwent removed watching livesportwillbealongway of early signsare thattheexperience the of deathsduringthepandemic, registered arelatively smallnumber stadiums. spectators backinto are allowed sports is gradually startingto arrive when phases toward norm’,thetime the‘new www.sportbusiness.com | Ben Cronin brokerage to health equipment supply TSA Group pivots from rights prepare for thereturnof fansto stadiums When Hungary’s top-tierWhen football inregions whichhaveBut even slowly move through the move slowly lockdown restrictions and begin to easeCovid-19 s countriesacross theglobe TWITTER @SportBusiness would consider attending aprofessional attending would consider saidthey cent found thatonly 17 per adultsinApril poll of4,429American AReuters/IPSOSgovernments. opinion lightfrommore thanjustthegreen ofthevirusmayincidence welltake stadiums incountrieswithahigher capacity.cent tothe hostarena befilledto just20-per- for Virginia, healthguidelineswillallow tournament, scheduled forJuly inWest the World TeamTennis mixed tennis occupied invenues. In theexampleof for nomore thanoneseatinfourto be social distancingregulations allowed returned inMay, strictgovernment league, theNemzeti Bajnokság, develop health certificates Ticketing companiesworkingto The job of encouraging fansbackintoThe jobofencouraging executive ofMalaysia-based TSA Group, Luer,Marcus andgroup chief founder cleaningpractices.rigorous venue safety measures andimplemented installed to organisers ifevent arenas would bemore comfortablereturning more optimisticpicture, suggestingfans Morningadults by Consultpainted a meant waitingayear. ifthat until avaccineisfound–even wait wouldrather saidthey cent 39 per while sportreopens, stadiums whenever wouldreturn to saidthey cent 42 per inthepreceding year,a sportsevent thosetothe public.Of have attended to re-open oncethey sporting event expensive and not infallible Automated temperature scanners For like entrepreneur aserial of2,200American An Aprilsurvey ( Bay Ismoyo/AFPviaGettyImages) COVID-19– TECHNOLOGY TECHNOLOGY the need to reassure fans combined are within acceptable limits. protected wallet. with the commercial imperatives of Rights-holders will have to carry One such provider, SecuTix, helped sport have created a rich opportunity out cost-benefit analysis to determine Uefa replace its standard distribution for traditional and non-traditional whether the outlay for some of the of printed tickets for last year’s Nations technology suppliers to the sector. more expensive equipment is justified League finals in Portugal with a Normally a sponsorship and media when government guidance for the blockchain-protected ticketing system, rights broker, Luer has switched resumption of sport continues to be to gain a greater degree of control to sourcing scanning and hygiene scarce and the chance of a Covid-19 over ticket transfers and to eliminate equipment for rights-holders to prepare vaccine could render some equipment forgeries. Following the success of the them for the resumption of spectator obsolete. initiative, the ticketing company was sport. Having witnessed the start of the contracted to provide the same solution pandemic in Asia, and the measures “Nobody will go back into sports for Euro 2020, before the tournament implemented in public spaces in the stadiums or these types of was postponed to next year. region, he says he was able to develop Blockchains can be configured to relationships with Asian suppliers early public places if you don’t have require each transaction to comply enough in the crisis to meet western correct screening in place.” with a digital ‘smart contract’, which demand for safety products. sets out the conditions that must be Marcus Luer | founder and group chief “Nobody will go back into sports met for a new block to be validated executive, TSA Group stadiums or these types of public places and added to the chain. This could be if you don’t have correct screening in particularly relevant to sports venues place,” he tells SportBusiness. “Let’s and rights-holders looking to ensure give people the sense that you’ve done Health certificates traceable by that only those people with valid health the basics right: that you’re checking blockchain certification are granted access into fans, your staff are well-trained, well- What if technology developed to prevent stadiums. The smart contract could protected and they have all the right sports tickets from falling into the hands prohibit the transfer of a ticket to things in place.” of touts could also be used to prove the anyone else or require that secondary Although no technology exists to health of fans visiting sports stadiums? purchasers or recipients of tickets also completely prevent the possibility of a Several ticket providers have already provide a health certificate. fan contracting Covid-19 at an event, announced ideas for certification tools David Hornby, UK and Ireland Luer argues there is plenty of equipment that could combine proof of identity, an managing director at SecuTix, says and measures that organisers can invest event ticket and a government-approved sister company TIXnGO has now in now to reassure spectators that risks health certificate in a blockchain- adapted the technology so that it could

TIXnGo’s health certification tool Health-n-Go

TWITTER@SportBusiness | www.sportbusiness.com 23 24 COVID-19 – TECHNOLOGY www.sportbusiness.com | thesafety offans,”hesays.ensure managing thesocial distancingrulesto ways to selltickets for livegameswhilst crisis. Thesportssector islookingat will partiallyortotally after persist the behaviour shiftsweare seeingtoday that thesocialdistancingandnew fans.amount ofcontactbetween whileminimisingthe and arenas backinto crowds smaller allow stadiums his companyto explore ways to safely and Lancashire Cricket Club,are asking Rugby Saracens Everton FC, theR&A, whichalsoinclude clients, holder Hornby says someofSecuTix’srights- social distancing observe Reconfigured seatingalgorithmsto system.health certification creation ofareliable andtrustworthy onthe are dependent solution, they holders. But,aswiththeSecuTix ‘sports healthpassport’forrights- Enterprises adigital isalsodeveloping firmVST while UKcybersecurity toolcertification alongsimilarlines, has announcedplansforahealth it’sprintedworth themoney on.” or viaanaccredited process, it’snot abonafidepartylikeissued by theNHS, unlessit’s –butfundamentally sense –it’squite them copy secure inthat youto wouldn’tallow them, enforce systemcoming from? Our would could dothat,”hesays. certificate, technically, then yes,we issuedaclear can track whohasbeen to it putasituation inplacewhere 30,000 season-ticket andwants holders – hasgota40,000-seatstadiumand ascanner.QR coderead by onrequest andthewhich canbeshown a specificwalletontheirsmartphone, could keep theirhealthcertificates in to isattached it.identity Individuals encrypted andcompletely traceable issued intheplatform,aunique, accredited certificate. Covid-19 the medicalcommunityto an develop and the firmwouldneedgovernments anything like thisto beimplemented, or healthorganisationatscale.Butfor distribute certificates from adoctor “From speakingto it’sclear clients, Fan platformSocios engagement are thosecertificates“But where “If aclub–let’ssay ‘ABC United’ Each timeahealthcertificate is TWITTER @SportBusiness “New behaviourshiftsweare “New director, SecuTix totally persist after thecrisis.” after totally persist seeing todaywillpartiallyor David Hornby |UKandIrelandmanaging David Hornby,UKandIrelandmanagingdirector, SecuTix you canallsittogether,” hesays. thatnetworkand with, youcanidentify your networkthatyouhave living been group, orsomeonewithin or aknown you’re comingwithyourfamilygroup, individual seatsaround agroup, soif or wecanblockoutrows where Hungary. in ofthekindseen requirements mandatedobserve socialdistancing could bereconfigured to fansto allow ataparticularpricepoint in avenue to thebest-available identify seats ticketingtypically usedby platforms “We couldputasituationinplace He suggests thesamealgorithms having removed 500 of 700 seats in its its in having 500of700 removed seats in Germany, re-opened, whichrecently low-tech approach adopted atheatre by operatorsvenue couldlearnfrom the sure fanssitindesignated areas. For this, distancingrules.”if youlookatproper cent be25per capacity –oritmighteven cent at50per from operating them allthestewards onprevents putting thestadiumand the costofopening mightdecidethat clubs,they for other relevant, some clubsthatmightbevery distancing andspacing. Butagain,for rights-holders. realities formostclubsor commercial solution wouldalsohave to the consider occupancy. Hornbysays anytechnical asafedegree ofstadium represent from Hungary –aboutwhatwould official guidanceinmostmarkets –aside isstillno this function,butthatthere isn’t to getthetechnology to perform A further challenge will beto challenge A further make “We’re lookingatsolutionsfor again,however,Once thechallenge COVID-19– TECHNOLOGY TECHNOLOGY

Automated cameras from Pixellot have helped the International Hockey Federation to streamline production. (Pixellot). main auditorium to allow audiences to and delivery could help rights-holders investment in cleaning equipment. adhere to government requirements of a to argue that they should be allowed In Morning Consult’s April survey of 1.5m safety distance. to keep important food and beverage US fans, 77 per cent of those polled said revenue streams open. the inclusion of hand-sanitisers would Staggered queues, pre-paid food Pre-ordering facilities and the ability make them more comfortable attending and beverages, and cashless to process cashless transactions will live sports events. And 74 per cent of payment facilities also be important in allowing club those surveyed said they would also be Even with lower levels of stadium stores to re-open at a time of the year more or somewhat reassured if a venue occupancy, clubs and event organisers when there is usually an uplift from next operator clearly communicated that a will need to prevent fans from coming season’s shirt sales. facility was being sanitised. into close contact in the constrained For a retail experience totally free entrances to seating blocks and stadium of any interaction with shop staff, Robotic cameras and automated concourses. sports teams could look to the example production Hornby suggests staggered entry times set by Amazon and its chain of self- As part of Project Restart, the Premier to avoid bottle necks at entrances. He checkout Amazon Go retail stores, League’s broadcast partners were asked says SecuTix provides a timeslot solution where payment is automated thanks to work out the minimum numbers of whereby fans are required to select an to the big tech firm’s proprietary Just staff required at the closed-door matches entry time so stadiums can have strict Walk Out technology. Last year, San to lower the number of interactions control of the entrance flow to limit the Francisco 49ers president Al Guido between people and reduce the risk of proximity of fans. told SportBusiness he was looking at spreading the virus. For the resumption Queuing for concessions could introducing a similar concept in the of Hungary’s Nemzeti Bajnokság last also prove problematic – provided NFL team’s Levi’s Stadium in Silicon month, no cameras were allowed government guidance allows for fans Valley. alongside the field of play for similar to eat food at sports venues at all once But even in those cases where reasons. restrictions are eased. Pre-ordering drink interactions are minimised, retail One solution would be to use a and food apps like Preoday, Seatserve outlets will have to observe official combination of robotic and static and FanFood could help to limit fan guidance. UK government guidance for cameras and automated production numbers, manage congestion in stadium shops advises storing returned items for techniques for less staff-intensive concourses and minimise contact 72 hours before putting them back on coverage of matches. between catering staff and spectators. sale and frequent cleaning of surfaces Robotic cameras enabled a skeleton The cashless mobile ordering provided that are touched regularly such as production crew to provide coverage of by these apps combined with staggered self-checkouts, trolleys and shopping the Professional Bull Riders’ successful collection times and non-contact pickup baskets, which will necessitate further return to competition on the CBS Sports

TWITTER@SportBusiness | www.sportbusiness.com 25 26 COVID-19 – TECHNOLOGY www.sportbusiness.com | wasthebest equipment, screening Co., afirm thatproduces temperature reported thatWuhan GuideInfrared to soar. In late February, Bloomberg detection fever that develop systems hascausedshares incompanies Covid-19 temperature scanners Handheld andnon-contact sports wouldbewillingto accept. might beacompromise thatfansofsome thedearthofsportavailable,Given this and lessimportantsecondaryrights. toholders monetiselong-tailcontent conceived to help lower-tier rights- production techniques originally were in production quality. Automated willbeadrop-off thatthere accept willhavea similarapproach, they to ofpeoplerequired on-site.number graphics andofficiatingalsoreduced the to whileautomated thecoverage, provide rooms andcommunicated viaintercom production operators worked inseparate from May 1-4. TennisGerman Point ExhibitionSeries tocameras ofthe coverage provide used acombinationofrobotic andstatic Israeli companyPlaySight Interactive in late April.Similarly, Sportradar and Network RidePass andstreaming service An attendeehastheir temperature checkedbyNascar securitypriorto theNascarCupSeriesatDarlington RacewayinMay.( Should other rights-holders take rights-holders Should other In example,justtwo thelatter TWITTER @SportBusiness from Singapore-based manufacturer from Singapore-based manufacturer requirements. an operator andreducing stafftraining theneedfor people,removing moving can detect temperature on differences thatare fullyautomatedscreeners and –optionismassterminal more expensive has contaminated hesays. the device?” waved thisthing at,andwhatifsomeone manypeoplehashe two,how “Number waving thisthing inyourface,”says Luer. thisguywhois one, youdon’tknow theoperatorbetween andfan.“Number and thefactitrequires closecontact ofpeopleatonce process largenumbers carrying thevirus. temperature consistent levels with public to determine have ifthey elevated an operator of canpointatamember handheld temperature that scanner two forms. andcomesinoneof 2003 Sarsepidemic duringthe large publicspacesinAsia in airports,shoppingmallsandother the companyfirstbecameafamiliarsight sincethebeginningofyear. cent per exchange, itspricehaving 128 surged by stock ontheShenzhen performer But withanautomated solution The second–more advancedand The disadvantagesare aninabilityto optionisa The lessexpensive produced by The sortofequipment Jared C. Tilton/Getty Images its events. Z tobe allowed race, volunteer orworkat of greater than100.4ºF/38ºC shouldnot say individuals with abodytemperature guidelines,which Health Organization Worldof races, itsaidwouldfollow issued guidelinesforthesaferesumption people whogenerate apositivereading. with guidelines fordealingsensitively protocols forstopping fansanddevelop willhave they equipment, to create and teams decideto installsimilar stops you,”hesays. could benaturally highandthescanner because itishot,yourbodytemperature experience. which creates anegativecustomer cangiveafalsepositive, the equipment not detect allsufferers. temperature might equipment screening means forCovid-19 incubation period duringthe can suppress afever that someover-the-counter medications offans.numbers pay machinesto forenough large screen mightstruggleto holders source and (€17,900) and$25,000,mostrights- $20,000 retailing atbetween Omnisense When the Ironman Group recently theIronmanWhen Group recently Should western organisers event wehave“Here inAsia that theproblem saysLuer alsooccasionswhen there Health have experts alsopointed out ) SOCCER 2,500 DEALS, 78 CLUBS, 4 TOP LEAGUES, 1 DIGITAL PLATFORM

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Web: www.sportbusiness.com/soccerpro Email: [email protected] Call: +44 (0)20 7265 4100 28 EVENTS W season willtake placefrom July 12-30, Springs, West Virginia.Theregular resort inWhiteThe Greenbrier Sulphur at its 45thseasonasathree-week event league hasannouncedthatitwill hold this summer. season atasingleneutral-site venue theorganizationstagesits2020when front ofspectators inNorth America www.sportbusiness.com | Bob Williams Virginia thissummer season at The GreenbrierinWest Mixed-gender league to hold entire World TeamTennis poisedto setsignificant precedent forstagingevents infront offans The mixed-gender professional tennis live sportscompetitionin marker for thereturn of to lay asignificant down orld TeamTennis ispoised TWITTER @SportBusiness San Diego Aviators,San Diego Vegas Rollers, Storm,Orlando Philadelphia Freedoms, CountyBreakers,Empire, Orange team ChicagoSmash,New York United States. are: expansion They a home-and-away formatacross the 14-match, regular-season schedulein Greenbrier. seat outdoor tennis stadiumatThe 10am, 2pm,and7pmET–atthe2,500- three matches day per –dueto startat 63 matches 19days, over withatleast on August 1andAugust 2,respectively. andfinaltowith thesemifinals follow front of limitedspectators one of first inUS to be held in Three-week tournament willbe Traditionally, teams play WTT a In willbe the regular season,there

In orout.( to suit. follow are alsoplanning League Soccer Major National Basketball and Association League,whilethelikesSoccer ofthe Lacrosse LeagueandNational Women’s organizations, suchasthePremier to beadopted team-based other by single venue. has decidedto stageitscampaignata from state to state, theorganization health andsafetyprotocols thatdiffer andthevarious pandemic, Covid-19 Lasers.reigning championsSpringfield Washington Kastles, andtwo-time since unveiling plans since unveiling plans interest from players and sponsors Organization has had increased It isaninitiativethatscheduled However, inthewake oftheglobal Tony viaGettyImages) Quinn/IconSportswire EVENTS Most notably, WTT will become will take place over a far longer time include the likes of 2020 Australian one of the first sports organizations in period, which will require greater Open champion Sofia Kenin North America to resume competition testing and screening for coronavirus (Philadelphia Freedoms), 2017 US Open in front of spectators amid the ongoing for its competitors, staff members, champion Sloane Stephens (Chicago health crisis. media, and spectators. Smash), and leading United States In accordance with state health A growing number of states, such as men’s doubles team Bob and Mike Bryan guidelines, WTT will allow up to 500 Texas, are beginning to allow spectators (Vegas Rollers). fans, which represents 20 per cent of at sporting events in the coming weeks Since WTT announced its return, capacity, to attend outdoor matches and months. As such, many eyes are there has been significant interest from at The Greenbrier. Spectators will be expected to be on The Greenbrier as the agents of numerous tennis stars spaced out to ensure social distancing. sports organizations look to adopt best who are eager to get back to competitive The Greenbrier, a luxury resort which practices. action. WTT is considering how best to is owned by West Virginia governor Jim accommodate these marquee players; it Justice, has already opened to guests “Its great to feel we’re is possible that each team will gain an to a limited extent, with temperature leading the charge back extra player to their five-person rosters. checks for employees, social distancing As well as providing more star power, for customers inside its restaurants, and for live sports” the addition of extra players is likely to employees sanitizing door handles, light help participants avoid injuries due to switches, and other high-touch areas. the expected wear and tear of playing so And it was specifically the allowance Significantly, WTT will also many matches in a condensed period. to play in front of spectators that essentially herald the return of All games at The Greenbrier will led WTT to choose The Greenbrier professional tennis in the United be distributed on CBS, CBS Sports over a number of other potential States, with the Association of Tennis Network, Tennis Channel, and ESPN+. locations, including Las Vegas, Austin, Professionals, Women’s Tennis The main CBS broadcast network will Jacksonville, and Carlsbad, California. Association, and International Tennis air a regular-season match on July 19 WTT is poised to follow in the Federation having postponed their and the WTT Final on August 2, while footsteps of Professional Bull Riders, respective seasons until at least early CBS Sports Network on cable will carry which has planned an event in front of August. A small number of exhibition 13 regular-season matches and both live crowds in South Dakota on July events are taking place globally in the semi-finals on August 1. 10-12. The WTT tournament, however, interim period. The WTT is also increasing prize involves many more participants and At present, participating players money to a record $5m, with an

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TWITTER@SportBusiness | www.sportbusiness.com 29 30 EVENTS (Tony viaGettyImages) Quinn/IconSportswire www.sportbusiness.com | in mindanddoingittherightway, that hassaid,thatwithsafety the governor inWestThe Greenbrier Virginiathat live sports. like we’re leadingthatchargebackfor also great forallofus,thestaff,to feel abletothat they’re comebackbutit’s maybe pay somebills. It’s great forthem neededto thatmanyofthem knowing months agojustto say thankyouand our players a$1,000giftcoupleof support ourplayers allalong. We sent We’veinto here. getting tryingto been It feelsgreat, alotofhard workwent back amidtheCovid-19 pandemic? professional tennisorganization TeamTennis to bethefirst What doesitmeanforWorld the coronavirus crisis. competition infront ofspectators amid a first-mover inthereturn to sporting andopportunitiesofbeing challenges executive CarlosSilvaaboutthe King Trophy willgeta$500,000bonus. Theteamcompensation. whowinsthe Playoffsadded $1mawarded inWTT It’s at really great withourpartners SportBusiness spoke chief to WTT TWITTER @SportBusiness “Our formathasmusicand “Our everyone aligned. everyone to it’salotharder of constituencies, get you’re abigorganizationandhave alot toeasier make decisionsquickly. When smallgroup soitmadealot it’s avery to comeback.I’ve gotagreat board and from thoseorganizations need approval inthiscase,wedidn’t and WTA...[but] We’re bigsupporters oftheITF, ATP you want? freedomto dowhat have acertain tours, aswelltheITF, andthatyou not affiliatedwiththeATP orWTA How muchdoesithelpthatWTT is stands isgoingto befabulous. havingNBA experience, 500fansinthe bitmore likemusic andfeelsalittle an spectators butwithourformatthathas in thestadium.Allsportsthriveon we canhave alimited offans number the standswillbefabulous.” experience. Having500fansin experience. feels alittlemore likeanNBA bowls and there willprobably beaVIP andthere bowls pricesforthetwoabout different we’vethought andrightnow bowl andanupper bowl isalower There socialdistancinginthestadium.proper prices sothatwe’llbeableto create the We’re goingto create acoupleofticket about ticket prices beingnormal. Tickets are limited butwe’vethought at thesameregularprice? in thearenaorareyoukeepingthem than usualastherearesofewseats Will ticketpricesbealittlehigher So ultimately thatwasthetippingpoint. back andbringfanswasWest Virginia. likethat they’d to helpbringlivesports these decisions,theonlystate thatsaid week, whichwasourdeadlineto make season inanyoftheseplaces. oflast As great venues. We wouldhave hadagreat Nevada, were andCalifornia,allofthem from Florida,Texas, West Virginia, states possibilitiesforus, thatwere welookedAs across allthedifferent location oftheevent? and didthatultimatelydeterminethe stage yourseasoninfront offans– foryouto Why wasitsoimportant EVENTS

(Tony Quinn/Icon Sportswire via Getty Images) package that will include some food to existing teams because in part none announced the prize money back in and beverage. of these players, apart from a few November and we wanted to honor the instances, have had any competitive salaries of the players who signed up How much interest has there been play. Now they are going to come in and as well as the prize money. We’ve got a from players not in WTT – and are even though our sets are a little shorter, great ownership group and they’ve all you able to accommodate them? players will be serving the ball harder supported us in this decision. We had a great roster before the and running faster than in practice so it pandemic hit, it was a great line- could be beneficial to have more players What do you think the WTT up. I would say that other than the as people have to get through 14 regular- comeback means for the wider top players – Roger Federer, Novak season matches. return of tennis globally this year? Djokovic, Rafael Nadal, Serena The thing about the sports industry is Williams... – we’ve had calls from Since the announcement have that we all work together but we’re also nearly every agent of all the others to you had an influx of interest from all competitive. So when I saw a UFC come to play. A few of them are from companies looking to sponsor the fight happen and the Bundesliga come international countries so they’re event? back and a Nascar race happen, it made not exactly sure what the rules and There has been a lot of interest over me want to come back too. So I know regulations will be in terms of traveling the past few weeks but now that we’ve when people have heard that we’re to the US. But also many of them have announced Greenbrier...and indicating coming back on July 12 on schedule stayed in the US as many came for that fans are going to be allowed, with fans, I’m sure all the sports, Indian Wells [which was canceled in everyone who said ‘let me know’ is now including tennis, are thinking, ‘Well, if early March] and never left. calling us back saying, ‘let’s talk about World TeamTennis can do it, we can We’re trying to figure it out. We’ve opportunities and partnerships.’ figure it out.’ talked about holding an interim draft In sports and in life, we’re all a bit and bringing in some of those players How exactly have you been able to competitive so I hope [our comeback] into the teams as extra players. You increase prize money at a time when does help pull us along. One of the could launch a 10th team but I think money is tight? things we wanted to do in coming back that’s a more complicated scheduling We had always planned on doing is that we want to show everyone that thing with our television partners than if this before money got tight so we’ve we can go to a place and be safe and we added, say, one player to each team, really stuck to our guns to do what stage our season in a modified format which would be nine extra players. we always said we were going to do. but it will still be complete and still More likely, we’ll likely add players We didn’t want to back off of that. We be real. Z

TWITTER@SportBusiness | www.sportbusiness.com 31 32 COVID-19 ­– SPONSORSHIP W Bundesliga ‘ghostgames’provide existential step forbothusandthe was anabsolutely necessaryand “The resumption ofmatch operations board ofInterwetten told SportBusiness: a market thatiskey to itsrevenue. clubs itsponsors,butalsoto take betson opportunity to withfansofthe re-engage was doublyimportantinthatitan Interwetten theresumption inplay inmid-March.was suspended gone largelyunusedsincetheleague reawakening ofsponsorshipsthathad among footballfansworldwide,anda May 16,itignited awave ofinterest www.sportbusiness.com | Matthew Glendinning games. reticent to activate without live Some sponsors have been backdrop forsponsorshipre-set As Dominik Beier, Dominik As speaker ofthe For firm theMaltese betting action onSaturday, behind-closed-doors Bundesliga presented theGerman hen TWITTER @SportBusiness

Hoffenheim also offers Interwetten a InterwettenHoffenheim alsooffers a homematch. per coverage advertising on six-to-eight minutes ofLEDperimeter and black logo is visible distinctive yellow both clubs. at main shirtsponsorandkitsupplier Partner’ the justbelow ‘Premium tier Hoffenheim andWolfsburg inthe Augsburg vVfL Wolfsburg. andHoffenheim vHerthaBerlin, matchesre-opening intheformof had stakes inlesswell-publicised andSchalke,Dortmund Interwetten Borussia between on the‘Revierderby’ stadiumthannotplayan empty atall.” of ourbusiness. play Andwe’drather in precautions andrestrictions. thewell-known clubs, albeitunder and sleeve inventory sales of ‘commoditised’ shirt to boost Return of live sport At Hoffenheim, the gambling brand’s At Hoffenheim,thegamblingbrand’s isasponsorof Interwettten muchoftheworld’sfocuswasWhile “At oftheday, theend itisthebasis

on thevideowall inthestadium. area, promotions on-site to advertising the eliminationofactivationsin theVIP stadiums,” hesaid.“Thisranges from normal dueto thelossofvisitors inthe than quality ofthesponsorshipislower IP.these assets,aswellother he callsthe“ghostgames”interms of season. in mediavalueper worth hundreds ofthousandseuros kicks,abespokepenalty thatis offering as wellexclusive at LEDcoverage of front andbackLEDboard rights, pack’similar rightsincludinga‘power after theresumption, Interwetten gets intheweek didagainstDortmund they homegame. carpets per LED wallandbranding rightsto twocam spacebehindthe large staticadvertising inevitably scalebackspend. means some sectors will Covid-19’s economic impact “It thattherange and isobvious weighsupthevalueofwhat Beier WolfsburgWhen play athome, as ( Michael Sohn/Pool viaGettyImages)

COVID-19 “Our TV relevant advertising material Liga 2 and Asteras Tripolis in the Greek per cent of the value. In the absence of will, of course, retain its value. It could Super League. “The strong digital reach live sport broadcasts, even assets that even be argued that they are now even of our partner clubs proved to be an seem removed, i.e. not exposure-based, more effective as stadium visitors are excellent fit and was very important for significantly dilute in value for brands.” now more likely to watch the matches us to be able to spend the sports-free Haddad observes that brands have SPONSORSHIP ­ – on TV. time,” he said. been highly reticent to activate their “Nevertheless, the overall sponsorship IP in the period without presentation of the brand clearly “The overall presentation of live matches and may not rush back at suffers from an empty stadium and the the brand clearly suffers from once. “A healthy audience, driven by situation in general. The image transfer live content and strong media-rights is certainly not as positive as normal.” an empty stadium” partners, is essential in delivering value Interwetten’s approach in the two Dominik Beier | Interwetten to sponsors to provide the relevance months preceding the return, he said, they need to create and execute were characterised by improvisation campaigns. and creativity. “In those times, our “However, we would expect there partnerships were very valuable and European football still to be some form of lag until we see important for us. The loss of a large With the Premier League, LaLiga and sponsors committing meaningful budget part of the betting offer not only leads Serie A all running timetables towards and resource to sponsorship activation to a loss of sales, but also becomes a the unveiling of sport behind closed – firstly, a period of stability will be challenge from a communication point doors in the coming weeks, agencies needed so that some level of confidence of view. are gearing up to support the return of will return and allay fears that the “This makes it much more difficult sponsors activations across Europe. sporting calendar could be subject to to produce content and remain present. According to Dan Haddad, head of further delays and cancellations which Together with our partner clubs we commercial strategy at the Octagon could cause activation campaigns to be came up with creative and extraordinary agency in the UK, the return of live pulled and spend to be wasted. activations to generate attention in their sport, even in a ‘fanless’ environment, “Secondly, it would be naïve to community and beyond.” is “an essential starting point for the believe that the sponsorship campaigns These ranged from interactive social return of meaningful sponsorship and messaging will be prioritised over media challenges to the organisation of activation as it brings a return of broader brand communications over an international Fifa game tournament relevance”. the short-term, even with the return of with its partner clubs, which also Haddad continues: “This crisis has live sport. “ include Sporting de Gijon in Spain’s La confirmed the message that ‘live’ is 99 The betting sector, however, is one

(Ronald Wittek/Pool via Getty Images)

TWITTER@SportBusiness | www.sportbusiness.com 33 34 COVID-19 ­– SPONSORSHIP www.sportbusiness.com | noting whatbumps intheroad, ifany, the NBAismonitoring thesituationand SportBusinessunderstands US, where notjustinEurope butinthe properties, closely watched sports other by isbeing The Bundesligaexperience NBA sponsors many forthetimebeing.” will nodoubtquashsuchambitionsfor rights feereduction. Theneedforcash ifthatmeantashort-termassets even fortheirmostprominent from betting speaking oftheirdesire to away move ofclubswere as anincreasing number afillipformanyclubs.provide to will operations resume meaningful sectorfact thatthebetting willbeable become increasingly commoditised.The sponsorshipsthathaveshirt andsleeve opportunitiessuchas exposure-driven particularly fortheheadlinebrand the sponsorshipsalesmarketplace, ashotinthearmfor provide certainly energy, according to Haddad. which may return withanincreased “There isaninteresting“There dynamichere, “The return oflivesportwill TWITTER @SportBusiness “The crisis confirms the message “The crisisconfirmsthemessage brands. excitingproviding opportunitiesfor chance fortheNBAto innovate, while a grounds willoffer games onneutral Worldwide, thatspectator-less believes marketing ofMomentum officer accelerate positivechangeinthesport. and away gamemodelhaspotential to most likely locations. Hotel &CasinoinNevada beingthe Florida andtheMGMGrand LasVegas WorldDisney Resort inOrlando, latervenues thisyear, withtheWalt resumption atoneormore central forlatethe NBAispreparing July the way. along leagueexperiences the German that live is 99 per cent of the ofthe cent that liveis99per value” Dan Haddad |Octagon Kevin McNulty, andchief president For some,this disruptionto thehome After itsmid-March suspension, ( Kevork Djansezian/GettyImages) distribution ofsponsorships intheUS team.” League more thanatypicalPremier disadvantage atypicalNBAteam way inventory, mostTV over isgoing to broadcast-led control model,withlittle more toSo theimpactofmoving a inventory theleague. iscontrolled by property. league’s favour thanatypicalEuropean and ateam assetare more stacked inthe aleague explains: “Thelinesbetween consulting atTwo Circles intheUS SamYardley,As vice-president, senior sponsors oftheNBAteams themselves. The sameoptimismmay notapplyto NBA teamsponsors optimistic.” very more andbrands canbepartofthat. I’m players before games?Fans for are eager additional content, orspecialaccessto can brands play orcreating inproviding tofor itsreturn. Better askwhatrole onthecontrary,NBA, are eager they time to exitaleague deal. hold”, McNulty arguesthisisnotthe back, andon-site are on experiences assets like stadiumsignage, business that“physical deals withtheNBAgiven theexperience.” and enhance canaddreal value ifthey sports Ilove I welcomebrands bringingbackthe andentertainingin new ways? afan, As from yourlocalteam into yourhome technology to bringwhatyoulove the masses. sponsor to itstechnology demystify to agreat What wayexperience? forthat ofthatfan-enhanced as theenabler Azure andwithMicrosoft experience the applicationofAIinviewing experience. viewing its theleaguedelivers it redefines how play role withtheNBAas anenabling Verizon andSAP are well-positionedto greater.in thefirstplace–iseven which isprimarilywhy brands sponsor could arguethevalueofthosefans– thosesportsreturn, you sport, sowhen Yardley addsthatthevalue more oftheTV-visible “In the NBA, “People are notturnedofffrom the theirown brandsWhile are evaluating Verizon“Or their5G leveraging “For example,doesitaccelerate “Brands weworkwithlike Microsoft, “Fan are starved oftheirfavourite COVID-19 also tend to be skewed more towards Steve Martin, global chief others may have money to spend, event activations than sponsorships of executive of M&C Saatchi Sport & according to Peter Honig, senior vice- European properties. Entertainment, points to the success president, consulting at CSM Sport & “The nature of play in a sport like of the TaylorMade-led Driving Relief Entertainment. basketball, with multiple timeouts charity skins event featuring Rory “There have been some noticeable SPONSORSHIP ­ – and stoppages, creates lots of time for McIlroy, Dustin Johnson, Rickie Fowler shifts in consumer sentiment and sponsored activations. Without fans and Matthew Wolff in May. purchase behaviour during the Covid-19 present that value goes away, which is “Even though there were no fans pandemic,” says Honig. “The shelter-in- a significant portion of teams’ pitches present at the event, it was still a live place mandates have elevated certain to potential partners. The ticketing and broadcast and allowed TaylorMade industry sectors and these trends are premium seating rights those clients get to own much of the communication an opportunity for rights-holders to are also worthless in a behind-closed- digitally and socially before, during and capitalise on. doors scenario. “ post the event. It was broadcast globally “Many CPG (consumer packaged to millions, so having fans in attendance goods) companies benefited from On-site v digital would only have added a few thousand pantry loading as supply chain fears Outside the main US team sports, many to that number.” became a trending topic on many news properties are equally driven by the Martin believes that when the likes outlets in the early days of the crisis. requirement for on-site assets that work of Formula 1 starts again, sponsors will As social distancing and self-isolation only in relation to large gatherings of switch their activation from on-site to became the norm, the demand for people. digital assets. “Big sponsors such as digital entertainment, food delivery “A sport like golf, which will have low Heineken will have a plan to activate in service and at-home fitness apps levels of TV-visible inventory – most the build up to the race like they would increased dramatically. golf sponsor logo exposure is driven normally. But this will be done digitally “Work from home requirements by players, not the tournament, relies and socially and will be pointed at the gave rise to a new arms race for online heavily on at-event assets, things like home viewing audience instead. There meeting supremacy, featuring the hospitality rights and event activations,“ will be no engagement at the event usual suspects in Verizon (BlueJeans), says Yardley. “For automotive partners itself of course, apart from paid-media Microsoft (Teams/Skype) and Cisco the value of having new models in front branding. So the more a brand is set up (WebEx), along with a new rival in of tens of thousands of wealthy golf fans digitally for these moments the better.” Zoom. is actually pretty high. “Finally, the health and security That said, the appetite for live sport New deals? protocols that will be implemented that the shutdown has engendered Whether this gets the market for new across the industry will undoubtedly means that sponsors may recoup some deals going is more difficult to tell. accelerate the adoption of contactless lost value through additional broadcast Some sectors, like airlines and travel payment providers like Apple, Samsung and digital consumption. businesses, will inevitably scale back, and Google Pay, among many others.” Z

( Mike Ehrmann/Getty Images)

TWITTER@SportBusiness | www.sportbusiness.com 35 36 SPONSORSHIP S www.sportbusiness.com | Matthew Williams pace of regional commercial growth from scratch has helped increasethe Network oflocal delegates grown been vitaltobeen thisgrowth. to allpartsofLaLiga’sbusiness –has ofspecificterritoriesbring knowledge whose role itisto employees permanent 2019, thecreation of46 ‘delegates’ – andmarketingcommercial inJune joining LaLigaasheadofinternational globalsponsorship salessince overseen portfolio five-fold. itssponsor and asaresult, grown international to presence 84countries, league operator hasincreased its Four yearson,LaLiga’s international focus ispayingoffinsponsorship According to Fergus Geekie,who has plans in2016,theSpanish growth heart ofitscommercial internationalisation atthe ince LaLigaput TWITTER @SportBusiness grassroots footballor exposure that reinforce itsownappealthrough League targets regional partners sponsorship aswell asinmedia,which strategy since2016. itsinternationalisationunderpinned strand thathas identification the talent LaLigaaspartofits‘Global Network’,by communicating.” activatingand that canhelpwhen that wehave resources ontheground andprospects and globalpartners usto allow they demonstrate to local Colombia. have inplaceslike or Vietnam,Nigeria wewouldnototherwise knowledge thelocalmarket canprovide they agreat assetforusbecause “They’re Aggressive internationalisation –in Most ofthedelegates developed were are alsoimportantbecause “They Speaking to SportBusiness,hesaid: expects to bounce back quickly FMCG, insurance and IT as areas it As Covid-19 rages, leaguetargets but theleaguehas alsobuiltstrong deals are focused solely onSpain, agreements. Eightoftheseregional and38regional partnerships holdsnineglobal LaLiga currently Zero to thirty Manchester United andLiverpool. Leagueclubslike Premier leagues butby rival as possible–wasinspired notby on theground inasmanylocations boots allongetting value placedabove president. ofJavierincumbency Tebas asits Leagueduringthe English Premier to gapto bridgethecommercial the attheheartofLaLiga’sattempts been is thepriorityformostleagues–has But theway done –with ithasbeen ( Tim Clayton/Corbis viaGettyImages) SPONSORSHIP portfolios in Asia (13 partners) and made mineral water brand NongFu the same level as the Premier League.” Africa (10 partners). Spring the league’s Official Drinking Geekie is keen to see existing All these regional partners have Water Partner in China until the end regional partners take the step up been signed since 2016, and the rate of of 2021-22. LaLiga brought its media to the global level, and SportBusiness growth is increasing. Of the Asian deals, partner, streaming platform iQiyi, into understands that conversations with a four were struck in the past year; of a three-way deal in order to create a US brand were progressing well before the African deals, four were also struck more appealing package of rights by the Covid-19 pandemic struck. in the past year. LaLiga has added five including broadcast advertising. He also encourages his regional leads deals since 2016 in China alone. Geekie’s regional commercial heads to expand partnerships within their While the delegates provide local are encouraged to be creative in the regions. “In Africa,” he points out, know-how for all aspects of LaLiga’s way that they package rights and in “we’ve had success with telco brands, business, the pure commercial team the industries that they target. As we’ve got the likes of Orange Egypt, under Geekie consists of five commercial Ivan Codina, the league’s managing MTN Iran, Zain Sudan, and Safaricom heads located where they can tackle director for the South East Asia in Kenya, all as local partners. It’s the key regions for the league: the US, region, Australia, Japan and South unlikely they’ll become global partners Mexico, India, Singapore and Africa. Korea, says: “[This] allowed us to be but because of LaLiga’s strength in Geekie says he hopes to hire a Chinese the first league and one of the first Africa, the next phase of our strategy commercial lead in the near future. rights-holders to have a partnership is to look to grow them to cover Each commercial head seeks in the cryptocurrency space with additional markets in the region.” agreements independently and runs GCOX. Whether from a B2B or B2C their own P&L, but partnerships perspective, there are many different Beyond Covid-19 are signed off centrally and must fit possibilities that can happen.” While Covid-19 has put a freeze on LaLiga’s overarching strategy: bringing LaLiga’s sponsorship partnership the league closer to its fans. Stepping up development – the league has paused Geekie explains: “It’s about Signing new global partners is a central ongoing conversations – its commercial communicating a central strategy from part of Geekie’s remit. Six have been team is planning tactics for after HQ and then sharing it out among added since the internationalisation the pandemic recedes. Already, the the regional markets – with them strategy started in 2016, and two were league’s analysis has identified FMCG, understanding what we’re driving. signed since Geekie’s June 2019 arrival. insurance and IT brands as sectors The markets can then work to develop Those partnerships were with Indian likely to bounce back quickly. and localise our strategy and drive tyre manufacturer BKT – until the end Geekie says: “We’ve become commercial opportunities from there.” of 2021-22 – and US brewer Budweiser, even more reliant on our insights He adds that the league seeks to worth €6.5m per season. department during this period as we leverage international deals to reinforce “It shows the increasing strength have revised our commercial approach. its own appeal. of LaLiga,” says international Whilst some sectors are suffering, we’ve There are the partnerships that development director Oscar Mayo. “Six been looking to identify those outside encourage international fans to or eight years ago, it was impossible to the usual targets that might have better experience live matches – as in the think that a brand like Budweiser would outlooks using a multitude of resources agreement with travel agent H.I.S. (the be closing a global deal with LaLiga on and robust data.” Z league’s first official partner in Japan). And there are partnerships that aim to develop the game of football in a specific territory. LaLiga has made this a central plank of increasing its appeal worldwide: Tebas has previously stated his belief that by growing in-country football fandom, LaLiga can become the number two league everywhere. The January 2020 deal with gambling platform Hollywood Bets in South Africa hit both bases: bettors are offered the opportunity to win match tickets while the partnership also contributes to the development of grassroots football in South Africa. Regional idiosyncrasies within the global strategy can be seen in deals (Maria J. S./AFP7/Europa Press Sports via Getty Images) like the January 2020 tie-up that

TWITTER@SportBusiness | www.sportbusiness.com 37 FEI

Adjusting to a new reality: The FEI’s

In association with In association experience with Covid-19

The FEI is playing the long game with its strategy to mitigate the impact of Covid-19 and position the federation for a smooth return to action.

he Fédération Equestre to receive exposure and build brand pressure on organisers, we have waived Internationale (FEI), like equity at competitions. all calendar fees for events taking place all sports organisations and between March 15, 2020 and the end governing bodies, is facing an Easing pressures of the year, and we’ve reduced annual Tunprecedented set of challenges due to Without the usual content to feed to subscriptions for our 137 national the Covid-19 pandemic. FEI media rights licensees worldwide or federations by 50 per cent for 2020. The cancellation of more than 700 FEI.TV, the federation’s OTT platform, “From an internal perspective, we international equestrian sports events the sport has had to look at new ways of put 60 per cent of our workforce on around the world since March 2020 engaging with its established fan base temporary partial unemployment as of has translated into a drop in revenue of and expanding its reach. April 15 and recruitment is currently approximately €15m for the FEI. “Our first duty has been to ensure on hold, except for two director- In the absence of live events, human health and wellbeing, as well as level appointments for jumping and organising committees across the maintaining the focus on horse welfare, endurance. world have seen a significant portion and we’ve had to react quickly to help “In addition to the temporary partial of their turnover – sourced from ticket our community survive during this unemployment of our HQ staff, we are sales, hospitality and trade stands economically difficult time,” says FEI taking all possible cost-saving measures – effectively dry up, while the FEI’s secretary general Sabrina Ibáñez. to reduce our expenditure, including partners have lost the opportunity “To ease some of the financial postponing all non-essential projects.”

38 www.sportbusiness.com | TWITTER@SportBusiness In association with

Taskforces community, even if the event cannot on a protocol for the safe resumption On a sporting front, the FEI acted take place or needs to take place behind of international equestrian events. It proactively to establish a series of closed doors,” Ibáñez says. requires the national federations and discipline-specific taskforces to evaluate “Our first priority is to protect organisers to carry out a risk assessment FEI the overall impact on the FEI calendar, the health and welfare of our entire to host safe competitions and put in both of the Covid-19 pandemic and the community, from the athletes to the place a set of recommended discipline- resulting postponement of the Tokyo fans and of course our officials, and we specific guidelines at all events, 2020 Olympic Games until 2021. must do everything necessary to make working in line with national and local The taskforces have met virtually competitions possible and above all safe restrictions. on a regular basis to decide key points in these challenging times as this virus related to the sporting calendar, as well continues to have an impact upon all Commercial partnerships as to create greater flexibility for date our daily lives.” With live events paused and thus fewer applications and modifications to help The FEI is currently working in close opportunities for the FEI’s sponsors to organisers to reschedule events. collaboration with national federations, build relationships with equestrian fans, With stakeholder communication stakeholders, organisers and the World the federation has been working closely a key aspect of its crisis management Health Organisation to ensure that all with its commercial partners to create plan, the FEI moved swiftly to create precautionary measures are put in place brand awareness. a comprehensive Covid-19 section as the sport gets back up and running. “The sports world has never on its website with all of the latest In May, the FEI Board mandated seen anything like this before, and news and resolutions, as well as the the FEI Medical Committee to work understandably there has been a composition of all calendar taskforces, tendency to hold back on some their scheduled meetings and their activities that are perceived as business recommendations to the FEI Board. “Our first duty has been to non-essentials,” says FEI commercial The section also includes an extensive ensure human health and director Ralph Straus. list of frequently asked questions and wellbeing.” “But we felt there was a real answers in relation to Covid-19, which opportunity to work closely with our are updated regularly. Sabrina Ibáñez | secretary general, commercial partners and come up with “We’ve done our best to keep the Fédération Equestre Internationale ideas that would keep the momentum lines of communication open with all going and offer other avenues for brand our stakeholders and we have taken building and visibility. every short-term measure we believe necessary, as well as looking further ahead into 2021,” Ibáñez adds. “However, we still have no idea how long this will all last and what the impact will be in the long term. All we can be sure of right now is that this pandemic is destined to change the sporting landscape and we need to accept that we may have to permanently change the way we work and the way our sport is delivered and consumed.”

Reimagining events While the pandemic has underscored the need for rapid decision-making and, as a prerequisite, a free flow of information, it also demands creative solutions to re-starting the live event experience. “Some of these events have a long history and tradition and we’re exploring every avenue to engage the

TWITTER@SportBusiness | www.sportbusiness.com 39 FEI

“We realised we needed to reinvent Cup™ series Quiz to replace the precipitated the creation of different some of the working practices we Fantasy Game, which could not be digital offerings as the FEI experiments are so accustomed to, and so we conducted due to the absence of live with new forms of content. held various sessions with our events this year. On every Monday until “The equestrian world is not just a commercial partners to create unique September, fans are given 10 multiple- sport, but a lifestyle, and it is the horse In association with In association initiatives that effectively build on our choice questions to answer against the which brings together our diverse fan partnership objectives.” clock, with the fastest times earning base,” adds Straus. “This opens up a One result has been the creation points to climb up the leaderboard. multitude of digital opportunities to of #HorseOClock with Longines, the While these digital activations are keep entertaining our audience and FEI’s Top Partner. This is a consumer a creative way of staying top-of-mind engaging with them while there are engagement campaign run on the FEI’s when on-site brand building activities no live events and people have been digital channels where fans are able to are not possible, the FEI has also confined to their homes. answer equestrian-related questions to offered additional opportunities for “The FEI had a great year of digital determine the watch that matches their visibility through its digital channels to exposure in 2019 with over 220 personality. each of its commercial partners. million video views on the federation’s “In these challenging times, we “We felt it was important to give channels alone – a significant growth want to stay in touch with our fan our sponsors the platform to highlight from the figure of four million in 2015. base, especially within the equestrian projects that reflect their wider But we have witnessed a noteworthy community with whom we are strongly company mission and values,” Straus increase in our digital numbers across associated all around the world,” explains. all our channels over the last few explains Longines vice-president of “Our official apparel partner, months.” marketing Matthieu Baumgartner. Horse Pilot, for example, is currently Instagram takeovers, like the one “Today our commitment is stronger producing washable masks made out hosted recently by Australian eventer than ever, even without competition of the textiles used to produce their Andrew Hoy, gave fans an insight into being held. By joining forces with the clothing lines. It’s a non-sport-related the day-to-day life of a triple Olympic FEI in the project #HorseOClock, we project that conveys the company’s gold medal-winner, resulting in more seize this opportunity to emphasise focus on social responsibility and than 2.6 million impressions. the close link between Longines and means that they have been able The FEI has also created the equestrian world, between time to connect with our fan base in a unique campaigns like and horse lovers, in other ways: by meaningful way.” #ForTheLoveOfEquestrian, with the presenting our watches in a playful support of digital agency Redtorch, way!” Deeper fan content to encourage fans to take part in the Other online fan activities include Ironically, even though the sport content creation process. American the Longines FEI Jumping Nations has been on hold, the pandemic has actress and avid equestrian Kaley

40 www.sportbusiness.com | TWITTER@SportBusiness In association with FEI

Cuoco is the voice of the FEI’s latest “It is time for all of us in the partners by making our archives digital campaign. available to them, free of charge,” “The #ForTheLoveOfEquestrian industry to look for the silver Straus says. “Opening our library of campaign is a celebration of our fans’ linings, capitalise on them and moving images to our partners, has love of all things horse-related and the push ourselves to innovate.” resulted in new content features passion that underpins the equestrian including a new original series called sport lifestyle,” Straus explains. Ralph Straus | commercial director, Icons.” “It invites everyone from elite to Fédération Equestre Internationale Icons is a six-part series that looks amateur and leisure riders to share back at the careers of some of the most their incredible stories. It brings our successful and influential equestrian community together under a clear house overseeing the planning and athletes of recent years.Each 26-minute and positive campaign that does not creation of all content, its channel episode focuses on a specific athlete focus on the medals, prize money and management and performance and the moments that defined their victories, but on the unique bond we measurement. career and cemented their names in the have with the horse and our dedication Working in close coordination with history books. The series is intended to the sport. FEI broadcast partners such as IMG to immerse the equestrian audience in “The video, which was also featured and the European Broadcasting Union, some of the most exciting moments on Kaley Cuoco’s own channels, the FEI was able to create new forms of equestrian action from past FEI garnered close to a million views over of content, including features focusing championships and series. the first weekend after the launch. It exclusively on the horse and the stories “If we want to survive and return to just goes to show that a strong and around these wonderful creatures. thrive as a federation and as a sport, meaningful campaign can make a big The current situation has given the it is clear that we need to embrace the impact on our work, even during a FEI and its broadcast partners the changing reality created by Covid-19,” difficult time like this.” space to broaden their relationships. says Straus. “Now, more than ever, it “While we’ve made FEI.TV free is time for all of us in the industry to Media initiatives to subscribers and non-subscribers look for the silver linings, capitalise on In 2017, the federation created the ‘FEI since mid-April, we have also been them and push ourselves to innovate Media Stables’ – a central production committed to supporting our broadcast more.” Z

TWITTER@SportBusiness | www.sportbusiness.com 41 42 SPONSORSHIP R Danone, Kellogg,Danone, onthree andUnilever with priorstops atVisa,Groupe cancelledorpostponed. all either regular seasonandtheTokyo Olympics thestartof theMLB Madness, as March activation plans,withkey such events short manyofthebrand’s 2020sports www.sportbusiness.com | Eric Fisher World CupandBeijing2022 Coca Colacontinuespreparingfor Qatar With The Tokyo Olympic Gamespostponed, NCAA, amongothers. NCAA, Fifa, LeagueBaseballandthe Major the International Committee, Olympic withincludes large-scalealignments brands that consumer venerable assets foroneoftheworld’smost a massivecollectionofworldwide industry,portfolios intheentire and entertainment sponsorship Coca cola’s RichardFort: Tokyo Olympics Ricardo Fort, Coca-Cola’sRicardo Fort, partnerships vice-presidentofglobalsports will beagreatsignoftherecovery A veteran globalsportsmarketer hascut pandemic But theCovid-19 one ofthelargestsports overseessports partnerships, ofglobalvice-president icardo Fort, Coca-Cola’s TWITTER @SportBusiness pandemic? changed amidthe ongoing portfolio the brand’s marketing sports How hasyour management of days.future prospect ofbetter the the publichealthcrisisandeyeing Georgia-based companyisnavigating editor EricFisher theAtlanta, onhow Cross. fortheInternationalcomponent Red andJuly,now andincludesacharitable from artists’homesbetween concerts Cola to asthe titlesponsorof100 serve platform #BeAppthatcallsforCoca- live-streaming deal withemerging esports property, aswellaseparate rights forNascar’s officiallysanctioned extension ofthecompany’spresenting industry’s tentative recovery. to nimblyguide thebrand into the Fort continents, different seeking isnow Fort spoke withSportBusinessUS isan moves Among hismore recent stadiums Cola sponsorships happen away from Vast majority of the benefits of Coca to in wecanhelpthem figure outhow and rights-holders with thepartners timeworking spending we’ve been postponedorcancelled, that were For now, happening theevents ones Eastandsoon. China, intheMiddle continue to workwithourteams in haven’t impacted been whatsoever. We for theFifa World Cup. Thoseprojects Winter workingwithQatar Olympics, working withBeijingforthe2022 long.very work from forprojects isusuallyvery, that isinteresting isthatthetimingwe areas. thing busy inmanydifferent One quiteand sponsorships,we’vebeen asitrelatesback end, to marketing to run,whichare ourpriorities. the On continues making sure theoperation relates to takingcare ofpeopleand bigpicture, particularlyasit overall sponsorships andmarketing sitinthe It’s where aboutunderstanding Today, forexample,weare busy view. allows taking a long-term Having longtermcontracts

SPONSORSHIP re-planning. We’re working with our next year are still totally relevant. But of different ways. There are a few local teams in Japan [about the 2020 I would say most of it will be perfectly measures related to the business Summer Olympics postponed to next fine to use next year. So we’ve put a lot performance, so we are capable of year], in Europe for the Euros that were of things on hold, but we know that forecasting and tracking the sales also postponed. We’re working with our when we are back that we’ll be able to volume, increases in revenues, business teams to redesign the plans and figure use most of it again. growth, profitability, and we do this by out how we’ll use the communication There are some things in the short country, by brand, and have a pretty we developed in the future. term related to operations that you detailed model of how to predict and to have to pause and restart next year, track the actual results of activations. How does that change your overall things like the Olympic Torch Relay And then there is the other side sponsorship strategy and the kinds or the work that we do with the Tokyo of the ROI model which is about the of opportunities you prioritize? Organizing Committee in concessions. impact of the events, the relationships There are some changes, but they’re not For those types of things, the plans we have, and the way that people see as dramatic as they might be for other are ready, we know what we need to the brand. Do they like us more? Do companies. Because we are a sponsor do, we’ve put everything on hold, and they feel better being seen drinking our of all these events, and have been for a when the time is right, we’ll be back in products, and all of that? We have a list long time and have contracts that will implementation mode. of indicators that reflect the sentiment last ideally well beyond the crisis, we of people towards the brands so we also always take a very long-term view on The situation we are living measure that. These are things that we everything we do. So, yes, the [Tokyo] in is pushing rights holders measure for every event, and we are Olympics were postponed. We know going to measure again next year. So they will happen next year. We have to accelerate a lot of their the approach to ROI hasn’t changed. a contract with [the IOC] until 2032. development and that’s great. It’s just a move in the timing of how it’s There are a few things in the short term happening. that we had to adjust. But most of the work we have done, and I’ll use the What is your level of optimism that Olympics as an example, is timeless. So What kind of change do you the Tokyo Olympic Games will indeed we can still use most of our work for foresee with regard to evaluation of come off and be what you originally Tokyo next year. Of course, we’ll have marketing efficacy and measuring intended them to be this year? to look at how consumer sentiment return-on-investment? I’m very optimistic that when it is going to evolve to make sure the We measure the return on investments happens, it’s going to be a great sign of messages we’re going to communicate in our sponsorships in a couple the recovery of the world, and it’ll be

Denny Hamlin, driver of the #11 FedEx Delivering Strength Toyota, celebrates after winning the eNASCAR iRacing Pro Invitational Series North Wilkesboro 160 at virtual North Wilkesboro Speedway (Chris Graythen/Getty Images)

TWITTER@SportBusiness | www.sportbusiness.com 43 44 SPONSORSHIP www.sportbusiness.com | managing activity. up. Soit’saboutmanaging staffand theworkinChinaset ingetting them helping,now consultingChinato assist so someofthosepeopleinJapan are months, thenext few over be slower side, whatweare doinginJapan will positive side. use ofthesamecampaign,andthat’sa toevents, someextent, the benefits close. Sotheproximity ofthetwo strategy, elseisallvery everything the approach to communications, the marketing similar, campaignsare very thanthat,the Butother for them. and thatmay beabitofstretch hopingwouldalsoworkinChina,were the peoplethatwehave inJapan we bittooa little closebecausesomeof From standpoint,itis anoperations impact yourbrands? Olympics inBeijing.Howwillthat Games andthe2022Winter gapbetweenthe shorter Tokyo The postponementmeansamuch crisis. We optimisticwiththat. are very a goodway to celebrate ofthe theend To addsomethingonthepeople TWITTER @SportBusiness That hasn’tchanged. I spend 70-80 per cent ofmy cent 70-80per I spend going to watch We baseball [invenue]. Baseball because ofthepeoplethatare that are goingto Japan League orMajor becauseofthe people the Olympics remotely.happening We don’tsponsor sponsoring anyofthingsthatwe doare of that, thevastmajorityofbenefits action thatismissing. Buthaving said isapieceofthe without fans,there of theevent. Ifyouwatch anyevent ofcourse,impactsthemood venue, offansin orabsence The presence activations? changes alter howyouthinkabout go wayup. To whatextent dothose broadcast ratings conversely setto zero andmany orseverely curtailed, norms withattendance either at looking atsomevery different termwe’re inthe short team sports, AmericanWith respect to the North Our work is international and workisinternational Our time on video conferences – time onvideoconferences a partnership withtheReda partnership Cross. with supportto communitieswith entertainment. We are combiningthis of things. First, weare offering with thisprogram isacombination andwhatweare doingpeople engaging positive.Weresults are very seealot of doing thisfortwoweeks. Buttheinitial streaming oftheconcerts. We’ve been that we’re doingwith#BeApp,the results onthespecificprogram It’s still earlyto onthe comment that canbeappliedto sports? learnings have youtakenfrom there active onthemusicfront. What During thepandemic,you’vebeen have ways other to compensate forthat. peopleattending. are fewer there Butwe on-site consumption, of course,because we needto do. will stillbepossibleto dothe workthat watching andconsuming remotely, it as theinterest peopleare isthere, activitiesthatwedo. long different As lot ofpeoplethrough media,through wecanreach a associating withthem thatby do allofthatbecauseweknow There is a little bitofanimpacton isalittle There ( BEHROUZ MEHRI/AFPviaGettyImages ) SPONSORSHIP And we are also testing a model in growing faster now are things that But over these now 11 weeks working which people are rewarded for their we either have evaluated and have from home, things are moving pretty engagement with our content. The talked to people before, so we were well, and I think everybody’s adapting. more you interact, the more benefits kind of aware. To give you an example, The relationship piece can never be you get, and that can come in the form the partnership with #BeApp, we’ve fully replaced by any virtual form of of merchandising, or access, or a shout- been talking to them long before conversation. But I think it’s a good out from one of the artists. And this is the coronavirus started. So when we proxy for these weeks that we’re living a model that can be replicated in other launched into the crisis, we adapted in. Eventually, we will be back. But a areas of sports and entertainment. We the plans but we had identified them lot of what we were doing before can are learning with that and hopefully as a potential partner. The same is be done virtually and is being done will serve a model for us to do more happening in other areas. virtually. digital-driven content in the future in The overall situation we are living in The nature of the work that we other areas of our partnerships. is pushing teams and leagues, rights- do at Coca-Cola, because we are so holders in general, to accelerate a lot of international, is virtual by default. In a We’ve also seen emergence of their development, and that’s great and normal week in the office, my team and various sports properties not adds a lot of value to partnerships. It’s I probably spend 70, 80 per cent of our necessarily among the top tier of the all new tools in our toolbox. time in video conferences, conference traditional stick-and-ball entities. I’m For you personally, your work relied calls with people abroad. So that hasn’t certainly referencing esports, but a lot on being present at events and changed a lot, and I think we can there certainly have been others. To building relationships face-to-face. navigate through these few months what extent, do you see opportunities How has that been impacted by having without much damage. And then in these areas for your brands? to work remotely? eventually we’ll be back going to events The outreach of potential partners We, of course, were so accustomed and have to be on site anyway. But for happens on an ongoing basis. We to being physically present at events. now, we are not suffering as much as are constantly talking to people in And I think we convinced ourselves I thought we were going to a few the market. All the things that are a that that was the only way to do it. months ago. Z

(Rich von Biberstein/Icon Sportswire via Getty Images)

TWITTER@SportBusiness | www.sportbusiness.com 45 LALIGA Laliga is back to win

After spending lockdown supporting communities and health services, LaLiga’s re-start was heralded by a global promotional campaign and delivered using the latest in virtual TV graphics. In association with In association

l Gran Derbi, the clash of the pandemic and the government- for the competition itself but to the Seville’s Laliga clubs FC Sevilla ordered lockdown was among the national economy. and Real Betis is always a most comprehensive and restrictive. But while planning for a return fixture that stirs the blood in a In the midst of the biggest medical and continued amid the ever-changing Esoccer-mad city. economic crisis in living memory, sport backdrop of the pandemic, LaLiga and But Sevilla’s 2-0 victory against their may not have been a top priority for the clubs got to work using digital media neighbours on June 11 had a significance national or local politicians, but despite and social channels to maintain their which extended beyond the city to an the lack of on-field action, LaLiga and links to fans, and driving projects to expectant and excited world. its clubs stepped up to use their profile help their communities at their time of The match, played out in front of and influence within their communities greatest need. empty tribunes at Sevilla’s 42,000 to make a real difference during the Under the campaign banner capacity Ramon Sanchez-Pizjuan crisis, and support medical initiatives #LaLigaSeJuegaEnCasa (LaLiga is stadium, was the first LaLiga fixture to while investigating all options for the played at home) a range of initiatives be played since the competition was eventual return. were rolled out. Players and coaches postponed on March 12 because of the used club channels and social media to coronavirus pandemic which went on Supporting communities and share their health and fitness regimes to kill more than 27,000 people across medical efforts during lockdown, clubs played a series Spain, where death rates peaked at With football accounting for 1.37 per of virtual fixtures on FIFA 20 and LaLiga nearly 1,000 per day. cent of Spain’s gross domestic product itself embarked on a range of ambitious, Spain was one of the first European (GDP) and some 185,000 jobs, plotting engagement-driven digital projects in countries to be brutally affected by a course for a return was vital not only conjunction with partners.

46 www.sportbusiness.com | TWITTER@SportBusiness In association with LALIGA 47 The return of LaLiga was orchestrated of LaLiga was orchestrated The return from the experiencesfrom of other major were protocols intricate leagues as back safely bring players developed to as travel such and for areas training to of the be managed ahead and security to restart. a splash and create build excitement to the banner the world. Under around a together the league put #BackToWin, series of 160 national and international and in- initiatives including digital person events, media campaigns, prize competitions and influencer draws, their resources towards funding vital towards their resources equipment and protective medical and banks. community food contributing to return Key steps to and the While clubs, players support their league continued to closely worked communities, LaLiga regional with the Spanish and governments and health authorities said that Having plan for a restart. to was not an cancellation of the season was Tebas option, President Javier learn insight and share to determined Spanish esports commentator and commentator Spanish esports Elsewhere, a further €1m was raised an event 50 million people watched also LaLiga clubs and their players Second-tier club RC Deportivo joined influencer of one Ibai Llanos inspired Within the most remarkable initiatives. idea an of him Tweeting days three competition for an e-sports football from players by first team contested up and his LaLiga clubs, 18 had signed Drawing idea had become a reality. experience of the on their extensive digital team e-sports world, LaLiga’s deliver a competition which to worked through millions on Twitch, entertained LaLigaTV media channels, and social partners. broadcast and via international The event than €900,000 more raised combat fund UNICEF’s effort to help to Covid-19. a of LaLigaSantanderas a result Fest, virtual global charity festival held to and population a locked-down entertain support the medical effort. bring music and football designed to artists the festival featured and together, Bisbal, Sanz, David including Alejandro – performing and Lang Lang Luis Fonsi their homes – as well as from The event byappearances LaLiga stars. was organised by LaLiga and made the collaboration possible thanks to Music, Universal of Banco Santander, LaLiga management firm GTS, of the and clubs, and a host players competition’s sponsors. a plethora devised and implemented help their of innovative schemes to communities during the epidemic. put its Camp Nou FC Barcelona complex stadium and surrounding at the disposal of the local health a programme authorities and instigated support the elderly the through to Madrid the made Real Likewise, crisis. Santiago Bernabeu Stadium available for the distribution of medical supplies as well as making a significant financial UNICEF. donation to actively promote with RC Celta to forces a vital blood donation campaign while many other directed clubs 48 In association with LALIGA and LaLiga. countries andcultures through football are designedto unite different colours andvaluesofthecompetition, Paris. Theseartworks,displaying the Paulo, Lagos,Hong Kong, Londonand includingMexicocontinents, City, São art project in12citiesacross five and international development. LaLiga’s director ofbusiness,marketing celebrate Mayo, itinstyle,”saidÓscar a longtimeforandwe’re goingto thatsomanyhaveis amoment waited Thereturn ofLaLiga counting onthem. fans thatwe’re #BackToWin andwe’re helpustellglobal image.They our LaLiga’s whichstrengthens continents cities across theworld. mapping andurbanartexhibitionsin12 photos onto iconicbuildingsusingvideo Spanishcities,projecting fan above exhibitions ofLaLigaclubkitshanging campaigns. Activitiesalsoincluded Major companies and partners of companiesandpartners Major Among theinitiativeswasanurban five “These initiativescovered team colours. offansinhome arepresentation deliver graphics into thebroadcast feedto virtualstandswhichfeed develop with Norwegian companyVIZRTto aspossible,LaLigaworkedexperience Spanish football. one ofthehallmarkstop-level whichhasbecome noisy atmosphere at oddswiththecolourful,intense and entirely promised anexperience viewers whichforTV echoingbowls, in empty world’s greatest players performing faced theprospect ofsomethe instadia,LaLiga nofansallowed With Enhancing the experience TV VITALDENT, Boxes Mail andRENFE. delAtrio, Marques Danone, Mazda, Panini, Allianz,STIHL, Deliveroo, LiveScore, ElCorte Ingles, Samsung, Sports, Budweiser, Rexona, BKT, such asBancoSantander, EA Puma, LaLiga alsosupported thereturn, Virtual standsandfansare toEager ascloseto provide anormal than 2.7billionglobally, LaLiga,which ofmore reaches acumulativeaudience broadcasts worldwide. onmatchfeatured on-screen coverage the #SpainAwaitsYou hashtag, which safe sportandtourism by powered to promote Spainasadestinationfor (CEOE), LaLigalaunchedacampaign andIndustries ofSpain of Employers andConfederation with thegovernment associated businesssectors. Working important tourism industry and toand influence boostSpain’smassively opportunity to useLaLiga’sglobalreach an The return ofLaLigaalsoprovided industry Spainanditstourist Supporting a goalto anear-miss orfoul. toof thecrowd onthepitch events from the soundreflects thereal-life reaction Sports’ FIFA, LaLiga’sofficialsponsor, audio library incollaboration withEA Audio from LaLiga’s feed.Produced complemented anAtmospheric by As an entertainment platform which anentertainment platformwhich As In association with

is an element of ‘Brand Spain’, gives competition resumed. 130%) and Denmark (over 46%) of worldwide visibility and delivers a clear Some regions of the world saw particular note. message that just as football is back in extremely sharp increases in viewing Mayo said: “We’re very pleased with business, Spain’s door is open to visitors. figures on the first matchday after the the exponential growth in the figures LALIGA restart. For example, in Africa there for LaLiga’s international audience. Immediate Impact was a rise of over 73%, while in specific We knew that fans around the world Figures from international consultants countries such as South Africa the were keen to enjoy the excitement and Nielsen Sports show that LaLiga’s increase amounted to more than 210%. entertainment we offer. Achieving a meticulous planning and creative In Asian countries such as India, rise of almost 50% in our international approach to re-launching its season where LaLiga is broadcast on Facebook, audience is a reflection of the hard work had paid-off with international viewing an increase of over 72% was detected. put in by our international broadcasters, figures up by more than 48% on the In Europe, the upturn was over 56%, the clubs and the competition itself over first matchday (Matchday 28) after the with countries such as Belgium (over these last few months.” Z

Q&A WITH LALIGA PRESIDENT JAVIER TEBAS

know the important role football plays digital channels including eSports in society and have created initiatives to tournaments and online concerts, which provide support to bars, hospitals, and entertained fans, and also raised money care homes, among others. for health services. More recently we We also know that football is a key launched campaigns including the part of the international brand of Spain, Applause to Infinity initiative and the so our success locally impacts how United Streets of LaLiga, which saw the country is seen around the world. urban artists create LaLiga murals in 12 Football is seen around the world like cities around the world. Through all of a postcard from Spain. It is our duty to this, we provided content and offered help promote Spain as a destination for collaboration with our partners. Their tourism and business, which includes support has been important in bringing working with the government on the us to where we are today. #SpainAwaitsYou initiative. What are the key learnings from the What have been the major challenges in restart experience? How important has it been to restart restarting LaLiga? I think the experience has proven LaLiga, for the clubs and the wider We encountered some opposition and that football is far more than a game. economy? pessimism early on in the process when Despite not showing live matches Restarting is an important step towards we made our intentions clear to resume there has been huge interest in football the “new normal”. We are not there yet. the competition. Some people asked why campaigns and content around the The next step will be finishing the season we would even consider doing so. It was world, not just from LaLiga. We have safely, but this journey does not finish at a time when the virus was naturally also seen players making a huge until the stadiums are full with fans once the only topic being discussed, but we difference by creating new fundraising again. We have a responsibility to clubs, had to try to look past that and develop initiatives or entertaining their fans the Spanish economy and our fans to a plan for safely returning to action. from home, while clubs have mobilised create the strongest league possible and It has been key to work together with communities and given relief to some to protect the 185,000 jobs that depend the government, the Spanish FA, clubs, of the most vulnerable members on Spanish football. players – all stakeholders. of society. Everyone has used their platform for good. More broadly, how important has it been As a global brand, how have you Above all else, we have seen that to the Spanish people who have endured engaged with fans and partners sports competitions and governing such hardship in lockdown? overseas during this critical period? bodies need to be organised. With so Football brings hope to millions of In times of uncertainty it is important to many stakeholders in our industry, clear people and it’s a part of everyday life in provide as much clarity as possible and leadership is needed to set the direction Spain. Bringing the competition back is we made sure our stakeholders were and get consensus, while representing important for us but it transmits a wider always kept up to speed with our plans. everyone’s needs fairly. Without this, the message that we can overcome the We created several global events through industry is at risk. challenges this virus has presented. We

TWITTER@SportBusiness | www.sportbusiness.com 49 50 FAN ENGAGEMENT M Association afargreaterAssociation spotlight. Football LeagueandNational Basketball fortheNational of comparable Drafts historically existed intheshadows deep World that andgivetheevent Series, Nebraska, site oftheNCAA’s College set to itthisyearto move Omaha, Secaucus, New Jersey, theleaguewas on-site atMLBNetwork studiosin www.sportbusiness.com | Eric Fisher D.ManfredJr.Major LeagueBaseballCommissionerRobert makesanopeningstatementduringthe2020MajorLeagueBaseball Draft ( rounds to five amid pandemic Annual event cut from typical40 MLB achieves audienceliftin reformatted Draft Then the Covid-19 pandemic hit. pandemic theCovid-19 Then After adecade ofstagingtheDraft Year Player Draft. plans forthe2020First- big initially hadsomevery ajor LeagueBaseball TWITTER @SportBusiness Association sawAssociation significantsurges NFL andWomen’s National Basketball plan. Boththe original Omaha-based the thatdrove fortheDraft prominence of level new aimed foranentirely markets. made theirpicksfrom theirrespective Secaucus, whileteam executives all and key in were personnel operations Rob only MLBcommissioner Manfred also shifted to aremote formatwhere 40 rounds to five. Theevent amere 10-11, wasslashedfrom itscustomary heldJunehealth crisis,the2020Draft, and societalimpactsfrom thepublic respective markets Team personnel stayed in their Despite thosechanges,MLBstill Because oftheresulting economic than thecomparable figure from 2019. for itsnight,atotal higher cent 102per average of615,000viewers viewership Network andESPN, generated an growth. format registered similaraudience changes to realign andtruncate the after even therecent theevent March, hiatusin of thepandemic-imposed type fortheleaguesincebeginning ofany the firstpublic-facinghappening competition. amid theongoingdearthinlivesports fortheirvirtualDrafts in viewership resembled NFL, WNBA Drafts production Remote-based TV MLB Network again ledtelevision onboth MLB shown The event, represented theMLBDraft And given Alex Trautwig/GettyImages ) FAN ENGAGEMENT coverage of the Draft, as it has since its been paid to lower-round draft picks. drastically reduce opportunity and 2009 debut. But league media partner And the bonuses for the remaining talent and talent pools, it stunts growth ESPN was also involved for the first Draft selections will also be significantly and diversity at all levels and is really a time since 2008, and produced its deferred over the next two years. self-inflicted sabotage of the long-term own coverage for the first round and Teams can sign unlimited numbers health and popularity of the game.” competitive balance round on June 10 of undrafted players for a maximum Sword, however, said this year’s Draft for the main ESPN network, and then signing bonus of $20,000 each. format is just for 2020, and that he showed rounds 2-5 the following day “We sought to make some trade- believes top athletes will still gravitate on ESPN2, with companion Spanish- offs between still getting the very best to baseball. But MLB can cap next language coverage. amateur players into the system as year’s Draft at 20 rounds, still half the “We appreciate that MLB Network, soon as possible while limiting some of level of prior levels. And the league is ESPN, and ESPN Deportes are bringing the club’s [financial] exposure,” says still pressing forward on related efforts this year’s Draft to a wider audience,” Morgan Sword, MLB executive vice to dramatically overhaul the affiliated said Manfred as he opened the event. president of baseball economics and minor leagues. “We look forward to members of this operations. “We are confident that baseball will class one day joining the great players in The cutbacks drew widespread continue to be an attractive career option the major leagues.” criticism from player agents, many of for top talent,” he says. “We will have whom represent emerging baseball some players, though, that elect this year Ownership Trade-offs talent, who argued the move could to go to college or otherwise defer their The MLB Draft since its 1965 damage the development and growth of entrance into [professional baseball].” formation has faced a decidedly uphill baseball at large. And though lower- challenge compared its NFL and NBA round Draft selections statistically Reimagined Broadcast counterparts. High school and college have not made as much of an aggregate Manfred didn’t announce the first- baseball players that make up the pool impact upon MLB, Baseball Hall of round selections from his home, like of MLB Draftees don’t enjoy the massive Famers John Smoltz, Ryne Sandberg, his NFL counterpart Roger Goodell did national media exposure given to and Mike Piazza were each selected in April in his basement, and Manfred college basketball and football players in or after the 20th round, and many certainly wasn’t as casually dressed before they join the NBA and NFL. And former All-Stars and Most Valuable as the sweater- and then T-shirt- when the baseball players are selected, Players were also found within the clad Goodell was. But in many other they each then typically require several lower rounds of the Draft. respects, the production of MLB Draft years of toiling in the minor leagues “Particularly given the negligible looked a lot like those for both the NFL before reaching the majors, and more economic impact to what’s already a and WNBA during the earlier stages of time before achieving any sort of cheap acquisition cost [for talent], that the pandemic. stardom. Conversely, football and approach is grossly shortsighted,” said MLB Network had video access to basketball are replete with stories of Jeff Berry, co-head of CAA Baseball, more than two dozen Draft hopefuls, rookie stars making sizable impacts last month to the Associated Press and much like the NFL did before, upon their teams just months after regarding the shortened format. “To has sent remote camera equipment to being drafted. Those factors help explain why the start of the 2019 MLB Draft averaged 304,000 viewers on the MLB Network, a mere fraction of the average US audience of 6.1m viewers the NFL Draft generated last year, and the average viewership of 3.09m for the NBA Draft in 2019. MLB’s Omaha-based plan, formally announced last December, was designed in part to close that gap. But when the pandemic hit the US in force in March, the league and MLB Players Association struck a deal to cover numerous related issues that contained several trade-offs. As part of that agreement, the league gained the ability to cut the size of the Draft, which it exercised. The cutback eliminated nearly $30m (€27m) in total (Alex Trautwig/Getty Images) signing bonus money that would have

TWITTER@SportBusiness | www.sportbusiness.com 51 52 FAN ENGAGEMENT www.sportbusiness.com | (Alex Trautwig/GettyImages) “We share inthesadnessandoutrage said. and alsopainfultimes,”Manfred unprecedented timesinourcountry, United forChange.” up signsreading “BlackLivesMatter/ 30 clubsparticipatingremotely allheld Matter, from all andallrepresentatives with astatement supportingBlackLives broadcast theevent alsoopened Manfred itselfonracial justiceissues,as event wasaheightenedDraft focuswithinthe rounds 2-5. selectionscovering Draft VasgersianMatt announcedtheday two for viewers. ofintimacy level anenhanced provided WNBA productions, thoseelements homes. Andmuchlike theNFLand team executives setto appearfrom their 30 clubs,withmanyoftheindividual channel alsohadaccessto eachofthe production. The link upwiththeevent toinstructions onhow setitupand each ofthosefuture prospects with “For manyreasons, theseare Perhaps thekey fortheMLB difference MLB Network andESPNsportscaster TWITTER @SportBusiness “As body, the sportinggoverning Jon Ridgeon |chiefexecutive,World Athletics the answers.” we’re supposedtobeproviding MLB Draft hasapproached. MLB Draft and praised theirhelpfulnessasthe counterparts thepasttwomonths, over inclosecontactwiththeirNFL were said. Manfred active participantsinsocialchange,” ourgametoby benotonlyallies,but We wantto utilizetheplatformafforded its effortsto racism andinjustice. end solidarity withtheblackcommunityin theillsthatexist,toacknowledge show united forchange. andthatweare That blacklivesmatter baseball candomore asaninstitution. that weeachdomore to help. That problems, inequality are devastating industry, thatsystemic racism and recognize, onbehalfofourentire they officialsas 30 clubbaseballoperations Taylor, andothers. Tonight, Ijoinour AhmaudArbery,George Floyd, Breonna tragedies thatincludethedeathsof that hasresulted from the national “The NFLandthewholesports Executives from theMLBNetwork isacallto“This moment action,to something like thisfor theDraft.” Z “That putusinagoodplaceto do shesays. workflows,” a lotofdifferent really teed usupandmaderethink athomehas andtalent announcers virtuallyandhavingshows alotofour standpoint. doingfrom aproduction had been much ofwhattheMLBNetwork haverequirements already refocused anditssocialdistancing the pandemic house.” in of thesestreams andbringingthem infrastructure teams to aggregate all with our[informationtechnology] and coming upwithasolutioninternally up butweended on theNFLDraft, ofworking also hadtheexperience talkedcertainly to andESPN them, andengineering.operations “We Network of vice-president senior learned,” saidSusanStone, MLB about bestpractices andlessons transparent very community hasbeen “The past12weeksdoingour Stone alsosays breadth of theentire The most accurate data on media-rights deals you’ll find anywhere plus peerless insight and analysis around every deal

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Request a demonstration at: sportbusiness.com/media Email: [email protected] or call: + 44 (0) 2072 654100 54 BUSINESS DEVELOPMENT “There’s goingto beastrong trendtowards T together. bringing largecongregations ofpeople such alargeextent onrace feesand recourse forasector to thatdepends and mitigate isnosuch losses,there action to shore uptelevision revenues major leaguescanscheduleclosed-door business. thanthemassparticipation vulnerable www.sportbusiness.com | Ben Cronin or cancelled because of Covid-19 Over 140 Ironman events postponed Ironman chiefexecutiveAndrewMessick( localisation” |Andrew Messick,Ironman Andrew Messick,Andrew chief executive of top-tierWhile footballandtheUS segment more acutelysegment hard to thinkofan industry to it’s theimpactofCovid-19, sportsare immune hough few TWITTER @SportBusiness Alex Grimm/GettyImagesforIronman) as Wanda itsinvolvement dialsdown the signingand closing ofthedeal, between ‘waxing andwaning’period inwhathedescribesasthe Review faced afairamountofupheaval recently. andyoucouldsaypandemic, hehas weeksintoCapital justafew the to andOrkila AdvancedPublications unrelated,entirely sale ofthecompany inWandaThrow SportsGroup’s, not globally. 140events or postponeover havingMarch, hadto cancel either out ofbusiness”sincethemiddle that hiscompanyhas“largelybeen mass participationbusiness,concedes the Ironman Group, theworld’slargest restrictions to rescheduled races based on travel Staff have tried to matchcompetitors Messick speaksto SportBusiness decade old.He’s someonewe have a positions. before takingupexecutiveevents the business,competinginIronman similarroutesand thepairfollowed into recruitedpersonally Messick fortherole prior to Wanda’s Bey involvement. Du Partners’ inIronman, investment Equity from thetimeheledProvidence Jesse Capitalfounder Orkila Bey Du the factthatMessick already knows expected to concludeinJuly. the$730m(€642m)saleis approval, with thebusiness. Subjectto regulatory and Advancedbeginsto acquaintitself allowed in New Zealand events now Mass participation “My relationship withJesse isa The transition willbehelpedby BUSINESS DEVELOPMENT great relationship with and have an Ironman’s response has followed we can to help athletes who still want enormous amount of respect for, and three distinct phases. In the first, the to race, who still want to participate in he understands our business,” says company’s 600-plus employees in 26 events, but who may want to take on a Messick. “The Advanced team are offices around the world have worked different profile in terms of travel.” scrambling up the learning curve, and with host cities to push events back we’re helping them. So far we have to September, October or November. Five principles found them to be very insightful and They have then taken advantage of the The next phase has been to conceive thoughtful partners – particularly as we company’s global scale to match supply of a plan for how races might safely find ourselves coping with the impact of with demand, as Messick suggests, by resume before a vaccine is found for the a global pandemic.” encouraging competitors to move from virus. one event to another, according to the In late May, Ironman released a set Travel restrictions prevailing travel restrictions. of five guidelines for the resumption Like many businesses that operate of events based on World Health globalised models, and which depend “There’s going to be a strong Organisation standards. The measures heavily on international travel, one trend toward localisation include plans to increase spacing imagines the new owners will be between competitors, enhance hygiene helping Messick to wrestle with some and we’re going to see fewer at events and encourage athletes to fundamental questions. athletes have an appetite to get carry their own hydration and nutrition “I think it is fair to say that in the to minimize interactions with staff and immediate term at least, there’s going on airplanes to go to events.” volunteers. to be a strong trend toward localisation The group estimates that the and we’re going to see fewer athletes “We’re encouraging athletes, and principles could help eliminate up to have an appetite to get on airplanes to athletes are reaching out to us saying: 90 per cent of interactions during a go to events,” he says. “We’re looking ‘I still want to race but maybe I don’t typical race. But Messick stresses that at our portfolio of events and how we want to get on an airplane and fly from events will continue to be led by health market that to our athletes and how Denmark to Brazil. What I’d like to do guidance in different race jurisdictions we marry supply and demand on a is drive from Copenhagen to Hamburg and the company’s own principles global basis. How do we rebalance that, and race there’. will not override any government somewhat?” “We’re being as accommodating as regulations.

Andrew Messick crosses the finish line in a 2018 Ironman event in Lake Placid, New York (Ezra Shaw/Getty Images for Ironman)

TWITTER@SportBusiness | www.sportbusiness.com 55 56 BUSINESS DEVELOPMENT Professional triathleteSarah Piampianowearsafacemaskontraining ride( where staff are no longer required staffare to nolonger where is theonlyoneinworldoffice there whilethe Ironmanparticipation events just lifted itsrestrictions onmass Consequently, thecountryhas be completely free ofCovid-19. onitsambition tohad delivered example, whichatthetimeofwriting, staff training inNew for Zealand, and forscreening requirement thatmakerace experiences sense.” those publichealthauthoritiesto craft athletes thatwe’re working closelywith and wewantto to giveconfidence our are thecommunities, and ourpartners the others. We’re trusting ourpartners, than oneapproach isbetter whether differently,”openness hesays. publichealthandeconomic off between stateevery –isapproaching thetrade- country –andwithintheUnited States, setofcircumstances inevery every forward because canmove organisers www.sportbusiness.com | This means there willbealesserThis meansthere “We donothave on apointofview “We thinkthat’stheonlyreal way that TWITTER @SportBusiness “We wanttogiveourathletes experiences thatmakesense.” experiences closely withpublichealth thatwe’re working confidence guidelines have more helpful proven since1978].” [host oftheevent come from theBigIsland ofHawaii athletes few very Championships, where the spectrumisIronman World says Messick. sideof “The other Northoverwhelmingly Island Kiwi,” Kiwi,andit’s it’s overwhelmingly big marathon thatwebought, whichwasthefirst Marathon, country’s cleanbillofhealth. company to take advantageofthe thea localizedmodelandwillallow more readily to themselves also lend the company’sportfolioinregion work remotely. in Someoftheevents authorities tocraft race The Ironman Group’s safety “If youlookattheAuckland Ezra Shaw/GettyImages ) owners, whowanttoowners, usethelatest thecompany’snewunnoticed by forthelackofliveraces.them exposure forsponsorsto compensate housebound athletes andadditional have aphysical outletfor provided technology andfitnesstracker apps, onlineusingwearable one another athletesallow to compete against series. Messick says which theevents, tosuit, hasbeen launch avirtualracing around theworldto events other follow company’s strategy, whileitwaitsfor The third andfinalplankofthe racing Virtual tolerances. public canbekept within acceptable thattheriskstoreassured them the competitorsspacing between have indicated thatmeasures to increase June have cangoahead. Localleaders race scheduledforthearea inlate Lubbock, Texas, thatanIronman 70.3 in reassuring publicauthoritiesin The venture won’thaveThe venture gone BUSINESS DEVELOPMENT generation of connected fitness wouldn’t divulge if these are paid or Centralised model applications like Zwift, Strava and value-in-kind deals. Messick has previously joked about his Rouvy to deepen engagement with “I think that more broadly, we have obsessive attention to detail and his Ironman participants and integrate the a bigger, broader digital vision for the desire to control every aspect of events Ironman brand even more into their business,” says Messick. “And that is – even including the types of buoys daily lives. really becoming more engaged in the used in the swimming legs – and there “We have more than 100,000 people journey of our athletes and in using a lot is no sign of this abating under the new on the Ironman platform and we have of the tools and techniques that we’ve owners. north of 50,000 people on the Rock pioneered here within virtual racing to The last time he worked with Du ‘n’ Roll [marathon] platform if you are be able to support athletes as they train Bey during Providence’s stewardship racing with us virtually every weekend,” and prepare for ‘real’ Ironman events – of the business, they sought to own says Messick. outdoor racing – again.” and control more Ironman events “The creation of virtual racing, Messick believes the take-up of the centrally, moving the company away the administration of virtual racing, virtual product proves how passionate from a business model of licensing the integration with our partners, and engaged the Ironman community its intellectual property to local the creation of live content with our is. The crisis also appears to provide organisers. When asked if he regrets professional athletes, all of that we have further proof that triathlon is becoming not being able to devolve some of his largely created from scratch in in the one of the preferred sports of c-suite current problems to licensees, Messick last few months.” executives and is taking on some of says the crisis has only given him To date, the company has taken the golf’s reputation for being the sport more confidence in the centralised decision not to charge competitors to of business networking. He says some approach. take part in the virtual events, although well-placed triathletes have helped “Fundamentally, we don’t think Messick says they have helped to the company in its attempts to source anything has changed in the way we generate increased merchandise sales. temperature screening technology and manage the Ironman brand. And our The company has developed a range other devices to prevent the spread of belief in being able to control the of finisher medals and virtual reality the disease at races. experience is one that, if anything, is headsets branded with Ironman and “There are lots of passionate Ironman more important now. Rock ‘n’ Roll marathon logos to coincide athletes in in all parts of the economy. “We’ve always had a true north with the new venture. Virtual racing And many of them have reached out to around athlete experience and safety equipment suppliers Technogym and us to help secure various things in this and for these next months and Rouvy have also signed as sponsors situation that will enable us to return to potentially years, that’s going to be even of the new series, although the firm racing perhaps a little bit quicker.” more important.” Z

TWITTER@SportBusiness | www.sportbusiness.com 57 58 SPONSORSHIP U www.sportbusiness.com | Kevin Roberts The BelgiumXIaheadoftheUefaEuro 2020QualifieragainstCyprus( Belgium are now top oftheworld Once as low as #66 in Fifa’s ranking, turnaround for ‘The Red Devils’ who turnaround for‘The Red Devils’ ChampionsofEurope. crowned amongthefavouritesand were to be the Fifa rankings forthepasttwoyears whose star-studded team has topped Royal BelgianFootball Association, forthe isaparticularblow summer competition’s rescheduling fornext these are farfrom normaltimes. The in Euro 2020. Belgian FA strategy partnership Rise oftheRedDevils drivesnew That status represents a remarkable aremarkable That statusrepresents that But nobodyneedsreminding would currently be immersed beimmersed would currently Europe andaround theworld millions offootballfansacross normalcircumstances, nder TWITTER @SportBusiness strategy left money on the table But legacy ofold-schoolpartnership infrastructure behindithad failedto heights onthefield, thecommercial right.own many have becomeglobalstarsintheir biggest clubsintheleagues and ply theirtrade atsomeoftheworld’s Those playersand hassinceflowered. wasmaturing oftalent generation new a asitwithered, rankings but,even the team slumpedto 66thintheFifa the sportandcountry. Atonestage darkdays thosewere Association, for marketing attheRoyal BelgianFootball World Cupsof 2006or2010. Euros in2004, 2008and 2012ortheFifa failed to qualifyforthefinalsof But whiletheteam wasreaching new According to Leroy, Manu director of Charlotte Wilson/Offside/OffsideviaGettyImages ) heart is being rolled out heart A new approach with digital at its company,” says Leroy. ministry into commercial amodern FA from whatwasasortofsports that onthepitch. way under isnow revolution to mirror guidance andfocusacommercial programme, vital ‘Grow’ hasprovided conducted withthehelpofUefa’s An extensive exercise, Benchmarking of theleadingNational Associations. with theaimofmakingBelgiumone strategycommercial developed hasbeen thatischanging.management, Anew missed. oneswere new develop streams and on establishedrevenue keep upand opportunitiesto build “It’s abouttransforming theBelgian Now, RBFA thenew under SPONSORSHIP “We are in the best possible place partners have been with the Belgian FA that up so that we are able to extract sporting-wise, so we want to be on over the long haul and Leroy admits data, segment it and give other types of the same level in every other respect, that their loyalty during the bad times return to the to our partners.” including the commercial side. made it difficult to increase fees to Data and content are central to the “Working with Uefa, we benchmarked reflect the new reality. new proposition. Work on a brand-new against Spain in terms of performance, “But now they understand that we digital platform is due to start shortly Portugal in terms of being a similar are #1 in the world and that prices for completion by early 2021. size of market, and Holland and the have gone up. But they are not just “That’s when the magic will start Nordics in relation to a population with paying for the same level of service. We to happen and when we will be able similar spending power. We wanted to are building new layers on top of the to deliver on our digital promise,” see where we sat in terms of different visibility and ticketing part. explains Leroy, who expects to categories of sponsorship. What we see usage ramp up ahead of the learned – and what I already had a gut “Our goal is to have a clearer rescheduled Euros next June. feel about – is that we were not making structure that will protect our His vision is of a virtuous circle that the most of the opportunity we now sees fans signing up to download an have. most valuable asset, player IP.” app, which delivers a feast of unique “When the team was not qualifying Manu Leroy | director of marketing, content, and the personal data they for the finals of competitions it was Royal Belgian Football Association agree to provide in return becomes like a commercial desert. Now we are valuable currency for the Belgian FA turning around a strategy which was when pitching to brands and pricing a bit old-school to make it far more “For instance, producing branded partnerships. modern and more measurable. In content is really important because we “Branded content has an important doing so it is our ambition to become have a gigantic reach. We are the biggest role. It is produced by us as a sort less dependent on team results by influencer in Belgium, so we want to of media house and has our tone of establishing new parameters and leverage that for our partners and use voice. The key thing is that it has to building a database so that we can the data we have. be relevant and make people want to always give value to partners even if we “Luckily the predecessors here watch it. That means using players and fall down the rankings.” invested in in building a solid database. coaches and going behind the scenes Many of the current roster of 12 We’re actually in a process of cleaning to produce things you just won’t see on

Manu Leroy, director of marketing, Royal Belgian Football Association

TWITTER@SportBusiness | www.sportbusiness.com 59 60 SPONSORSHIP www.sportbusiness.com | don’t allpay theexactsamefee.That inventory andopportunities,but they much thesame getpretty partners structure inwhichmostofthe12main FA’s sponsorship proposition lies. that muchofthevalueBelgian says. Leroy there,” hemoves when becomeaReal fan and then Madrid Hazard atChelsea Eden might follow So,afan withthem. move and then playbecome fansoftheclubsthey for thing wehave noted isBelgianfans are.play Theinteresting they wherever people have pay-TV andcanwatch them play intheBelgianleaguebecausemost play. they wherever Belgianfans by fortunes are followed all anditisagroup ofplayers whose sayThey thatultimately trumps talent ethnicities.and regions anddifferent players cities whocomefrom different language divisions. complicated itsregionalism and by face ofacountywhich,says Leroy, is and painted theunited facesrepresent major tournament. Theflags,shirts Belgiumplays whenever ina evident across Europeof starsscattered is classical media,”hesays. Belgium’s EdenHazardduringtheEuro QualifiervSanMarino( “Right now, wehave quite aflat And itisinaccessto thoseplayers don’t “It thatthey doesn’t matter But arisingfrom thatisagroup of toThe hunger associate withateam TWITTER @SportBusiness entertainment like post-game concerts the stadium,and wehave introduced who have sectionwithin theirown fans loyal our fanclub,whichrewards hesaid. these canbeachallenge,” games againstlessinteresting teams and (for thetop seeds)wealways have King BaudouinStadiuminBrussels. qualifying gamesatthe50,000capacity it more difficultto selltickets for blaséaboutsuccess,making a little kicks-in.” have pyramid acleansheetasthenew existingdealsare finishedandwe when after the2022Worldfor thecycle Cup clarity andadditionalvaluepropositions deals sowhatweare doingiscreating access….it’s worth alot. feeto level entry a certain getthat thatyouhavethat andensure to pay but weneedto beable to control time withtheplayers forcommercials our mostvaluableasset,theplayer IP. have structure thatwillprotect aclearer goalistomore andreceive more. Our ofsponsorsget number which asmaller our partners. sometimes causesfrustration among Soccrates/Getty Images “To address this,we’vereactivated “Now thatweare always inPot One saysLeroy that fanshave become wehave ”Right now somelegacy “In gotshooting thepastallpartners “We toward are moving in apyramid ) area for them toarea forthem on.” Z leverage sponsors whothink it’sanimportant andthat’sagoodmessage for diverse areas. amazingteam Our isincredibly create andallother ingender diversity inthecomingyears to our federation backgrounds. It’s abigambitionwithin connect withthosepeoplefrom different beableto we’llnever otherwise really football isthatweneedto mirror society of sponsors. is inlinewiththemoodandaspirations be celebrated across footballandwhich says Leroy reflecting adiversity must backgrounds andsectionsofsociety, the youngsters are drawn from all inFifa’sremaining top 10. decade orsoofsuccess,definedas country canlookforward to another pipeline isingoodshapeandthatthe thatthe isconfindence and there system anddevelopment identification hasputinplaceatalentMartínez position dip. Head coachRoberto maintain thatvalueshouldformand while itisontop oftheworldand the valueofBelgiannationalteam the firsttime.” teamwomen’s to publictelevision for We have alsosoldmediarightsto the to attheopportunity. lookseriously agency, brands are beginning andother topartnership Connections,atravel have team-only soldourfirst women’s team.the women’s We’re delighted to withjust partner companies cannow opportunities to brands so different explains.Leroy are nomorethe case,there free rides,” part ofthesamedeal.That’snolonger teamthe women’s inas wasthrown opportunity. time, treated asaseparate and entity teamFlames women’s is,forthefirst strategy. mobileRed Theupwardly which issubjectto commercial thenew beginning to work. November suggeststhatthestrategy is againstCyprusin Euro 2020qualifier one-sided foraninevitably crowd game more ofanevent.” A42,000 and half-time DJ setsto make each “I think the big message for all of “I thinkthebigmessageforallof Like crop ofsuperstars, thecurrent strategyLeroy’s aimsto maximise team “The women’s different offers “In thepastifyousponsored themen teamIts senior snotonlythemen’s FINANCE &LAW Nic Couchman | The long view – investment opportunities in the rebuilding of sport

Nic Couchman, head of sport at Charles Russell Speechlys, considers the role that private equity might play in the building of ‘Sport 2.0’.

Nic Couchman

s the impact, operationally and economically, of Covid-19 continues to rampage through the sports industry, Arestructuring and new investment is becoming essential to achieving a sustainable and profitable future. Sports bodies, events and leagues own unique assets of considerable attraction to investors, from control of sporting calendars, regulations and commercial rights, to valuable data sets and heritage brands. For well-funded private equity investors with the right ‘partnerial’ approach and long-term vision, opportunities exist to benefit significantly from a new sport industry environment.

Sport in crisis Right now it’s hard to imagine the reset and rebuild that will inevitably take place. Sport has been sideswiped in the most brutal way and yet the continuing and grassroots development. Reserves of investment in sports marketing in appetite to play it and watch it is such in most sports are minimal, with many favour of focusing on business survival. that even virtual horse racing and highly reliant on Olympic distributions Added to this, the ongoing risk charity golf matches are generating or public subsidies. of second and third waves of viral record audiences, and immense efforts The sports industry essentially has escalation, the rigid and much restricted have been made to get top level football mass social gatherings at the very regulatory environment in which matches played behind closed doors and heart of its business model and so sports will now have to operate even back on our screens. Covid-19 is about the worst unforeseen as lock down measures ease, and the Our industry has seen decades of event imaginable. For sports with an understandable fear factor that will more or less continuous growth and is international dimension, the problem is no doubt continue to permeate the now experiencing its worst economic exacerbated. sports fan community, and the return to disaster perhaps in living memory. The Different and changing pandemic anything resembling normal conditions long growth story, however, obscured situations and regulations in different for sport looks a very long way off. some financial truths now increasingly countries mean border closures and Public funding of sports will also no apparent. major travel disruption will likely doubt be under enormous pressure, For all its many successes in creating continue for an indefinite period to whether for vulnerable mega events or revenue streams from commercial come, making international fixtures, grassroots sports, as other calls upon rights exploitation, the sports industry series and tournaments very difficult to the public purse take precedence in is in most areas undercapitalized. Most organize profitably. depressed economies. And there will be a of the income that comes into the The global recession that is highly limit to the extent that the larger sports sports goes out into event operations, likely to follow presents a double bodies, such as the IOC, can provide player wages, prize money, agency whammy as corporates and brands will financial support to their membership. commissions, infrastructure investment look to control or reduce their level It’s too early to tell how much

TWITTER@SportBusiness | www.sportbusiness.com 61 62 FINANCE & LAW www.sportbusiness.com | of reasons: returns from. investment control andgeneratesufficiently something itcouldreliably quantify, as trends, all itsubiquityandgrowth abletonot been ofsport,for perceive driving motive,andprivate equityhas as businesseswithprofit asaprimary least becausemanysportsare notrun stakeholders and private equity, not sports in manyinstancesbetween sport itself. casetocompelling investment investin andforprivateproviders, equityto seea withprivate seriously engage capital from someareasreticence ofsportto categories, however, hasbeen there the capitalmarkets. ofthese Outside orhaveinvestment raised fundson haveproviders, alsolonghadprivate to andtech sport,suchas agencies at ateam Specialistsuppliers level. especially andownership, investment racing have private longembraced private equityinvestment. technological transformation, and on thesector, inparticulardigitaland already impacting thatwere phenomena feature together of withtheacceleration willall events cost control andfewer conditions, reduced budgets,tighter Tougheremerge. market andregulatory chapter, forsportisbeginningto A new, potentially radically different 2.0’ Investing in‘Sport needed to gettheindustrybackontrack. atitscore, willbe a spiritofinnovation andtochallenges, reset andrebuild. strategies bothto meettheimmediate staff lay-offs, etcetera –andexamine shortagesand income, cashflow massivelyreduced cancelled events, having to realities – lookatthenew sportis environment, challenging run into multiplebillions. In thisvery $700bn industry, butitwillclearly inflicteddamage hasbeen onthis • All thatissetto change,foranumber acultural clash hasbeen There US sport,footballclubsandmotor A new, mindset,with entrepreneurial

underwrite itsshortto medium- cash resources to stabiliseand its future, itneedssecurityand forcapitalized andconcerned Sport isindistr ess; under- TWITTER @SportBusiness • • •

R A M lifetime’ opportunity. to actnow, ormissa‘oncein for investors. Investors may need undoubtedly features attractive brand valueandexclusivity are Latentsubstitutable orreplicable. Sports assetsare noteasily economic traumas andsurvived. which have previous endured value,with substantiallegacy internationally brands known roots, andsome deep and very of whichhave decades ofheritage ofavailablenumber assets,some term asaresult digitalpremium valuations potentially carryalong exploitable andsportsasset and livedatabecomeincreasingly pronounced. Customer, athlete termin thelonger becomesmore and strong, monetisablefanbases thevalueofcontentpandemic, accelerated theimpactof by afloat need to adaptspeedilyto stay forced uponsport,anditwill be muchlower. Changeisbeing insportwillamongst leaders resistance toout above, change term position,andto rebuild arity. Sportcomprisesalimited s globaldigitaltransformation is oreover, forthereasons set investors. the conditionsto private attract andrationalized toremodeled optimize clubs andathletes, may wellneedto be leagues, sportsbodies,events, between collectively bargainedarrangements it. and frameworks, Thecommercial thevalueliesandwhocontrols where whichIP,are investingin,whoowns naturally wantto whatthey understand a deterrent foroutsideinvestors. They streams canbe structures andrevenue making sportmore investable. eliminating someofthe‘oldways’, and accelerate changesto sports governance, investment. crisiswill TheCovid-19 is, however, apre-requisite forgood globalization ofsport. Goodgovernance not kept and pacewiththegrowth insporthave frameworks Governance have adeterrent been to investment. in sport,from dopingto corruption, implications. Theintegrity breaches irrespective ofthecommercial sportingandregulatoryover affairs, wouldexpecttofinanciers see. that have arrangements thegovernance structured asbusinessesanddon’t others. Sportshave nottypicallybeen than sports, somelessapparent to private in equityinvestment haveThere impediments several been New investmentmodels Equally, thecomplexnature ofsports wishtoThey retain autonomy FINANCE &LAW On the flip side, one of the financial security from which to build to structure more flexible and discrete fundamental problems for private value over the long-term but without arrangements with commercial agencies equity investment in sport has been its undue interference in sporting or and partners. Investors can seek to own business model, typically requiring regulatory affairs, is the formula likely achieve a measure of protection from a buy out, followed by a three to five to find most acceptance with sports going ‘all in’ in these hazardous times year drive to enhanced profitability and stakeholders and owners. by linking some of their funding to an exit for their investors, and to earn Investment funds are increasingly performance metrics, e.g. the unfettered the coveted ‘carried interest’ for fund looking at a more blended approach, return to live sport. managers. Sport does not lend itself at for example with minority equity stakes Investors naturally like to reduce all easily to this investment model – it combined with debt finance structures, risk, and so issues such as cost controls, essentially doesn’t want to be bought, allowing some protection against the salary caps, and relegation/promotion built up and sold on. Nor does it want downside, whilst maintaining a sizeable rules also play a material role in investor to part with, or be perceived as having interest in the upside. These are rare decisions, and it is of course likely that sold, the ‘family silver’. In many cases, and complicated transactions. Our own increased investor involvement will lead sports bodies will look at themselves as experience advising the International to changes in traditional formats and custodians, rather than owners of the Tennis Federation on its investment approaches to these matters. sports they manage. arrangements for the Davis Cup, for In a sports context, successful private example, involved a challenging process Future opportunities investment has to be attuned to this of balancing and reconciling the interests Private equity has large reserves of philosophy. There are signs that it of sports custodians and investors. deployable capital, and looking at is becoming so. Initially reported as The sports market has now, finally, long term growth trends for sport as seeking a majority stake in Premier reached the stage where intelligently we start to emerge from the depths Rugby, for example, private equity giant crafted, bespoke investment partnership of the current crisis, will see unique CVC finally settled on a 27-per-cent arrangements are achievable to enable opportunities to enter the sports market stake in the league, and more recently sport to continue to grow and to at a time of great need and lower prices. a 28-per-cent stake in Pro 14 rugby. meet its many objectives, from elite From once being perceived as CVC is now reported to be exploring a competition to grassroots development. controversial imposters or ill-suited minority investment in Italy’s Serie A. To some extent, private equity can partners with sport, smart private replace the role customarily played equity money could yet become the A ‘partnerial’ approach by the larger agencies as long term cavalry that an increasingly embattled A more partnerial approach, helping business partners to sport, bringing sports sector needs, assisting in the sports reset and develop their both capital and commercial acumen re-emergence of a viable and profitable commercial platforms, providing the to the board table, and allowing sports industry. Z

(JAVIER SORIANO/AFP via Getty Images)

TWITTER@SportBusiness | www.sportbusiness.com 63 64 COVID-19 – FINANCE I www.sportbusiness.com | Tom King Stadium against itsMarvel secured aloanof more thanA$500m The Australian Football Leaguehas revenue torevenue thecountry’smajor sports. thepipelines of the actionsevered strict socialdistancingmeasures. But andenforcing closingitsborders by contain thespread ofthevirusquickly Australia. Thecountrymanagedto asavagedelivered to blow sportin business downturn. Australian sports facingtheCovid-19 in auniquelystrong positionamong How the AFL used its biggest asset How theAFLuseditsbiggestasset to tackle Covid-19 financial woes The National Rugby League, Cricket markets, inother As has Covid-19 Melbourne puttherights-holder Stadiumin ofMarvel ownership the Australian Football League’s itton enabling secure financing, TWITTER @SportBusiness venue to actually own a properties sports The AFLis one of few Australian Stadium, theAFL hassecured strong to aparticularasset. sponsorship rightsincomeasopposed secured againstfuture broadcast and lenders. Theloanamountwas Australian by turneddown it hadbeen a A$250m($172.7m/€154m) loanafter and financialinstitutionsintheUKfor or noassetsto assecurity. offer through. Unlike theAFL,mosthave few sought loansfrom banksto helpthem cut 47 ofits142full-timestaff. forexample,recently difficulties. RA, A-League are allfacingfinancial Australia, Rugby Australia andfootball’s Thanks to the54,000-capacity Marvel toLast month,theNRLwent banks Some oftheorganisationshave holders during Covid-19 position than other Australian rights- The loan put theleagueinastronger nominal A$30fee. to take ofitin2025fora ownership Stadium,theAFLwas entitled Marvel of the constructionandoperation andoperatedowned venues. teams inAustralia play atpublicly- grounds, thevastmajorityofmajor league suburbanrugby of somesmaller play they venues at. the exceptions With or have the substantialcontrol over Few leaguesandteams inAustralia own Prescient move more thanA$500m. National Australia Bank,inadealworth major bankinggroups, ANZand financial supportfrom twoofAustralia’s Under the agreement that governed thatgoverned Under theagreement The Marvel StadiuminMelbourne,AustraliaThe Marvel COVID-19 –FINANCE position than the NRL vis-à-vis upcoming talks with their domestic broadcast partners. As in other markets around the world, Australian broadcasters are seeking compensation for the interruption to the flow of live matches this year. The AFL and NRL are Australia’s two most valuable media rights properties. The NRL was essentially forced to renegotiate its domestic media-rights deals with free-to-air broadcaster Nine and pay-television broadcaster Foxtel this month. The league was running out of money fast and was pushing hard to get its season restarted. The broadcasters took the opportunity to negotiate down their rights fee commitments over the coming years. The talks were not all negative for the league, as it also secured a five-year extension to its deal with Foxtel. The AFL’s broadcasters are also seeking talks about their deals. But the league’s relatively healthy finances

Melbourne Demons v St Kilda Saints at Marvel Stadium (Graham Denholm/Getty Images) are considered to put it in a stronger negotiating position than the NRL. But in October 2016, the league as AFL matches, it hosts home fixtures “Nine and Foxtel with rugby league agreed to pay A$200m to take control for A-League football side Melbourne and Foxtel with the FFA (Football of the management rights and freehold Victory, Twenty20 cricket matches, and Federation Australia) are among those ownership from the super fund and one-off rugby union and rugby league who are negotiating, or have already institutional owners, nine years early. matches. It is also firmly established as negotiated, amended terms with lower The AFL’s acquisition of Marvel Melbourne’s major concert venue, and valuations,” Karg says. Stadium four years ago was something has hosted artists such as U2, Taylor “It is expected that the AFL and of a gamble, but it has paid off in Swift and Ed Sheeran – all earning extra others will inevitably be subject to the unexpected fashion, giving the AFL revenue for the AFL. same. As such, the level of security owned a billion-dollar asset against In 2018, in a deal said to be worth provided for the league from the which to borrow. more than A$70m, the Walt Disney stadium deal creates a major point of The deal was also a positive company in Australia secured the difference.” development for its tenant AFL clubs naming rights to the stadium for eight North Melbourne, the Western Bulldogs years, rebranding it the Marvel Stadium Caution ahead and St Kilda. The AFL is leasing the to promote its superhero film and The Marvel Stadium may have provided stadium to them under more favourable content studio. A substantial Marvel- the AFL with a substantial financial terms than the previous owner. themed retail store is now housed buffer, but the AFL will not be resting The Victoria government is within the facility. easy for the next few years – the full committed to funding upgrades of “The rights change in 2018 to Marvel extent of the business downturn caused the stadium and development of the as a partner provided a good refresh and by Covid-19 will take months or years surrounding area under an agreement scope for new innovations in delivery to play out. Australia is set to enter its in April 2018 that includes a guarantee alongside the Marvel brands,” says first technical recession for 30 years this by the AFL that its annual showpiece Adam Karg, associate professor and quarter. Grand Final would be played in director, Sport Innovation Research “While this financial safety net means Melbourne every year until 2057. Group at Swinburne University of the AFL may be better placed to counter Technology in Melbourne. the Covid-19 fallout, there is still a Revenue generator significant financial impact on the AFL The Marvel Stadium is a multi-purpose Negotiating position and clubs that will be felt for a while, entertainment and sports venue and The AFL’s stadium-backed finance particularly the longer it stays without also the headquarters of the AFL. As well deal looks to have put it in a stronger crowds,” says Karg. Z

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