Marketing Consultancy Report - Papa Massata Diack CEO, Pamodzi Sports Consulting Presented to: IAAF Marketing Commission 3rd May 2015, Bahamas Content • Foreword • Personal Background • Key Milestones • Achievements • Summary 2 Foreword It is an honour and privilege to have worked since 2007 with IAAF & its exclusive worldwide marketing partner, Dentsu INC. to sell the number one Olympic sport, Athletics. The background of the relationship dated back to May 2001, when ISL Marketing AG was declared bankrupt and I was consulted informally by the IAAF President, Mr. Lamine Diack and IAAF Vice President & Marketing Commission, Prof. Dr. Helmut Digel, to give advise on the selection of a replacement company. It was only in July 2006 when I first attended the IAAF Marketing Commission meeting at IAAF World Junior Championships Beijing 2006 when my personal contribution was then formally requested based on my suggestion to reach out to Emerging Markets including BRICS (Brazil, Russia, India, China South Africa)Asia (including Middle East), NACAC and Oceania regions. My appointment was confirmed by IAAF President in September 2007. Then in 2009, the IAAF Council introduced the IAAF Continental Programme in its decentralization policy and my company was appointed as the main coordinator for this property. Thanks to all the stakeholders that have made this journey possible and especially Athletics Management & Services AG (AMS) with whom I co-operate with closely in order to achieve these goals. I am grateful for their total dedication to service Athletics and to 3 strengthen the business model of IAAF & Dentsu over the years. Personal Background Started in 1989, attended the 5th IAAF World Cup in Athletics in BarcelonaSpain, where I met ISL Marketing AG executives (Peter Sprogis & Craig Thompson). Hired by the two most well respected sports marketing professionals in the world, Klaus Hempel & Jürgen Lenz. Joined ISL in 1990, where I work with Athletics, Olympics and Football departments until 1996. This duration allows me to support clients like: • ExxonMobil (previously Mobil Oil Corp.), handling the IAAF World Athletics Series Events from 1990 to 1994, IAAF Grand Prix Series and the Mobil Africa Athletics Project in 9 countries. • Coca Cola • Organized the 1995 FIFA World Youth Championships in Qatar • Organized the 1996 Africa Cup of Nations in South Africa 4 Personal Background • Founded Pamodzi Sports Marketing in April 1997 in JohannesburgSouth Africa • Helped Coca Cola with 1998 Africa Cup of Nations in Burkina Faso • Organized the 1999 FIFA World Youth Championships in Nigeria by the Federal Government • Exclusive Marketing Agent of the 2000 Africa Cup of Nations in Ghana/ Nigeria and the 2003 All Africa Games, Abuja • Marketing Representative of Fédération Sénégalaise de Football from 2002 till 2006 including the widely successful campaign for 2002 FIFA World Cup Japan/Korea, generating 10.9 million euros (min. guarantee 3.5 million euros) • Marketing Commission Member for CAF, ANOCA (2002 – 2014) • Marketing Advisor for African Fencing Confederation, African Judo Union, Senegal National Olympic Committee (2003 – 2008) • Marketing Representative Togolaise Federation de Football for 2006 FIFA World Cup Germany 5 • IAAF Marketing Advisor from 2007 to 2015 Key Milestones 2006 2001 2007 Helped negotiate • Appointed IAAF Helped negotiate Dentsu’s 2010-2019 Marketing Dentsu’s 2001-2009 marketing rights Consultant marketing rights contract with Dr. contract with Dr. • Brought in IAAF’s Helmut Digel & Luis Helmut Digel & AMS first Russian Carulla partner, VTB 2010 2009 • Brought in IAAF’s first 2011 • Brought in IAAF’s first Chinese Korean partner, SAMSUNG for WAS & Extended VTB’s partner, SINOPEC 2012-2015 Diamond League • Implemented IAAF sponsorship contract • Helped negotiated IEC Continental 2010-2013 broadcast 6 Programme contract Key Milestones 2013 2012 Helped negotiated WCH Moscow 2013 LOC Concluded IAAF’s historic cooperation broadcasting contract and from 2014-2019 with China’s CCTV 5 loss made for IEC in Sports agreement 2014 • Brought in Abu Dhabi Media, Middle East & North Africa broadcasting partner • Concluded WCH Beijing 2015 LOC CRA agreement • Helped negotiations for Dentsu’s 2020-2029 marketing rights contract with Dr. Helmut Digel & Essar Gabriel 7 Achievements IAAF World Relays Challenge IAAF Continental Programme Clients “I believe strongly that the greatest strength of the IAAF is Universality” - Lamine Diack, IAAF President IAAF Centennial Celebrations, Barcelona 9 IAAF World Relays Challenge Alongside Mr. Essar Gabriel, Mr. Luis CarullaPauline Davies-Thompson, we managed to convince the government of Bahamas to host this new event. Widely successfully, IAAF World Relays Bahamas 2014 was broadcast in 156 territories for almost 300 broadcast hours. Cumulative viewership topped 9.5 million individuals. 3 World Records was set! 10 IAAF Continental Programme 2009 IAAF Council in Berlin entrusted IAAF HQ Marketing Department with the specific mission of identifying additional resources for Regional competitions, in line with recommendations made in World Athletics Plan 2003-2012 2010 This led to the development and implementation of the IAAF Continental Program which spans across the five IAAF Area Association regional events • IAAF President’s vision is to universalize and decentralize major athletics events, particularly at regional level • Full support from Dentsu INC., and AMS • Generated US$16.85 million in terms of sponsorship from sponsors Sponsors Contribution (Cash + VIK) US$9,500,000 US$2,000,000 US$1,500,000 US$3,850,000 Summary 53 events organized More than 750,000 spectators have attended Global TV viewership exceeds 620 million with more than 350 broadcasting hours More than 250 Area & National Records were broken! • IAAF, Dentsu/AMS approved the appointment of Pamodzi Sports Consulting to be the event coordinator for 9 to 11 events from 2010 to 2015; all reports are available on the MSD of IAAF • Pamodzi had the full cooperation of IAAF Senior Marketing Manager, Ms. Cinzia Molinari & MSD Senior Manager, Mr. Jee Isram for the proper implementation of this programme throughout the period. Special thanks to IAAF Development & Member Federations Relations Department Director, Mr. Malek El Hebil Clients 14 Abu Dhabi Media Company, United Arab Emirates Media & Broadcasting US$8,346,000 (projected to US$5,000,000) Leading media organization in the Middle East, employs 1900 people across its operating units which include publishing, television, radio, digital media, distribution, and printing. the official media organization of the government of Abu Dhabi. • TV Rights for Middle East & Africa 2014-2019 • Deal under review to buy back 2019 for subsequent sales to beIN Sports for WCH Doha 2019, final value to be reduced by US$3 million 15 Adidas AG, Germany Sportswear & Sports-shoes US$9,500,000 Adidas is the largest sportswear manufacturer in Europe and the second biggest in the world, after Nike. Annual revenue of more than US$ 14 billion and ranked 70 World's Most Valuable Brands • Sponsorship rights for 2010-2019 IAAF Continental Programme • Thanks to persistence efforts of IAAF President and Dr. Helmut Digel, adidas fully cooperated in the introduction of the IAAF Continental Programme by providing equipment to all Continental Area Associations in their Senior, Junior & one day meets • Special thanks to Ms. Cinzia Molinari for handling all VIK management for Area Associations with dedication and professionalism 16 China Central Television, People’s Republic of China Media & Broadcasting US$3,410,000 2008 Summer Olympics coverage on CCTV resulted in an aggregate 41% audience share across its network. More than 90% household penetration and accessible to more than one billion viewers. • Historic co-operation to boost coverage of Athletics in the People’s Republic of China, signed personally by IAAF President and Director of CCTV 5. • Special thanks to Mr. Anderson Yeo and Mr. Ianton Tan for client servicing in People’s Republic of China. 17 Dentsu INC., Japan Advertising Agencies US$492,450,000 No.1 brand agency globally on Advertising Age with a global network that now incorporates 124 countries and territories around the world with around 40,000 employees worldwide. Annual revenue of US$ 22.45 billion. • Marketing rights for IAAF World Athletics Series 2001-2029 • Throught the period of 2007 till 2014, Dentsu INC. Sports Division currently headed by Executive Officer Kiyoshi Nakamura, has provided full support for Pamodzi Sports Marketing team worldwide 18 WCH Beijing 2015 LOC, People’s Republic of China National, Regional & Local Government Bodies US$4,000,000 • Category Release Agreement for WCH Beijing 2015 • Special thanks to former Mayor Mr. Guo JinlongMr. Sun Kanglin and Mr. Li Yingchuan and their team 19 WCH Moscow 2013 LOC, Russian Federation National, Regional & Local Government Bodies US$4,800,000 • TV Production & Rights Fees for WCH Moscow 2013 in conjunction with IAAF General Secretary Mr. Essar Gabriel & IAAF Honorary Treasurer, Mr. Valentin Balakhnichev • Terrestrial TV rights of around US$1.2 million • Special thanks to Russian Federation Minister for Sports, Mr. Vitaly Murkov 20 IEC in Sports, Sweden Media & Broadcasting US$76,000,000 IEC in Sports, based in Stockholm, which is a wholly owned subsidiary of the Lagardère Sports group, has offices in Lausanne, Dubai, Hong Kong and Sydney. IEC in Sports manages over 300 events annually and has wide experience in the field of media rights