cover ; sportcal insight ; sportcal · the repeated doping scandals in the sport. ... respected...

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3Sportcal Insightwww.sportcal.com February/March 2016

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Where on the sports scandal Richter scale does doping sit?

For executives at Adidas it appears to resonate well above bribery and vote-rigging.

When news broke in late January that the German sportswear giant was planning to end its sponsorship deal with the IAAF, athletics’ world governing body, four years early, the easy (lazy?) assumption was that the doping scandal engulfi ng the sport was too much for it to bear.

Adidas had to get out. It had to distance itself from such evil. It had to protect its brand.

Yet the idea that Adidas had suddenly found its moral compass was at least questionable. This, after all, is the same company whose footballs have been kicked at every Fifa World Cup since 1970, and will continue to be until 2030.

As Fifa’s foundations crumbled with each revelation of dodgy deals sealed via brown paper bags stuffed with bank notes, Adidas stayed mute, apparently reluctant to press for reform.

Then the doping scandal hit the IAAF, and suddenly, it seemed, Adidas found its voice.

Adidas has, at the time of writing, yet to speak publicly about its decision to pull out, commenting only that it has “a clear anti-doping policy. Therefore, we are in close contact with IAAF

Jonathan RestDeputy editorSportcal Insight

Bayern Munich are getting £75 million ($107 million) and €60 million a year, respectively, from their kit deals, also from Adidas. Sports sponsorship involves huge outlays, and as with any business, there must be adequate returns.

Soccer is a commercial success, athletics isn’t.Adidas has shareholders to appease and a market

position to maintain.Maybe it hasn’t discovered a conscience; perhaps

it merely seized an opportunity to get out of a sport that wasn’t generating the necessary returns.

“Adidas has shareholders to appease. Perhaps it merely seized an opportunity to get out of a sport that wasn’t generating necessary returns”

And it is the ease with which it made the decision to do so that should concern IAAF president Sebastian Coe (once he’s completed the small matter of cleaning up the federation).

How can he make athletics interesting again outside the blue riband 100-metres fi nals at the Olympic Games? How can he make it so commercially viable that its biggest sponsors will stay mute when scandal strikes?

For a start, athletics needs its fl agship World Championships to be staged in packed-out stadia, not in front of swathes of empty seats. London 2017 in the Olympic Stadium will certainly provide a boost in that regard.

A fi rst-ever World Championships in the mass US market, in Eugene, the country’s track and fi eld capital, in 2021 will also help.

But, then, that’s another issue for Coe entirely…

to learn more about the reform process.”Of course, there is precedent for German

commercial organisations taking a stance against doping. ARD and ZDF, the public-service broadcasters in Germany, decided against being part of the European Broadcasting Union deal, running from 2012 to 2015, for live coverage of cycling’s iconic Tour de France, despite the prevalence of top German cyclists, thanks to their disillusionment with the repeated doping scandals in the sport.

But could the truth behind the IAAF exit actually lie in reports emanating from Spain that Adidas has agreed to extend its kit supply deal with Real Madrid for another 10 years, paying the Spanish soccer giants an eye-watering €140 million ($152 million) a year, which would be by the far the biggest contract of its type in the sport?

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5Sportcal Insightwww.sportcal.com

Contents

Subscriptions: Sportcal Insight is a bi-monthly publication. An annual subscription costs £195 and can be arranged by calling +44 (0)20 8944 8786 or emailing [email protected]

Mark Lichtenhein is Chairman of the Sports Rights Owners Coalition.

Rob Clark is a freelance sports journalist and author

Tim Crow is CEO of sports marketing and sponsorship agency Synergy.

News analysis 06 Track Cycling World Championships set to benchmark future events. 09 How ESPN’s entry to the market will galvanise TV sports in India.10 The sports still struggling to get to grips with social media.13 Fan engagement in the era of the connected stadium.

Opinion16 Tim Crow on the Olympic Games.17 Mark Lichtenhein on sports rights.

Cover story18 As the Chinese digital sports rights market booms, we take a look at the trends and ask how sustainable it is, and who will ultimately benefi t.

Deals of the year 201524 The winners and losers in a turbulent year for sport.

Casey Wasserman30 The media group chief on his vision for LA2024 and the changes facing agencies.

Corporate hospitality 36 It’s more than just prawn sandwiches in a £1 billion a year UK market.

Keith Pelley40 The chief executive of golf’s European Tour refl ects on his fi rst six months.

Index45 Key information on the events, people and deals driving the sports business.

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Mike Lafl in, Sportcal CEO, founded Sportcalin 1991.

Callum Murray, editor, specialises in the IOC and international federations.

Daphne Chan, head of research, oversees global data analysis and research.

Jonathan Rest, deputy editor, Sportcal Insight, writes on events, bidding and US major leagues.

Martin Ross, online news editor, is a broadcast rights and sports agencies expert.

Simon Ward, deputy editor, Sportcal, specialises in sponsorship, Asian TV, agencies market and US sports.

Krzysztof Kropielnickimanages sponsorship research.

TALK DIRECT mike.lafl [email protected]

Contributors

February/March 2016

6 News Analysis

No pressure for hosts Great BritainThis year’s Track Cycling World Championships at the London 2012 Olympic velodrome will set a benchmark for future editions, say the UCI and British Cycling

Insight 02-03-2016

Team GB dominated the medals table for track cycling at the London 2012 Olympic Games, winning seven golds, a silver and a bronze. No other country won more than one gold medal in the velodrome. The market for track cycling is evidently highly developed in Great Britain, so how will the discipline benefit from holding its World Championships in London in March this year?

“Clearly, they [the organisers] will set a benchmark of what we can expect from this event,” says Cyrille Jacobsen, head of marketing at the UCI, the sport’s world governing body. Speaking in late January, he adds: “It’s a very mature market and already we know it’s going to be very successful in terms of tickets sales. It’s the last chance for athletes to qualify [for this year’s Olympics in Rio], so all the best athletes will take part. There’s no doubt it’s going to be the most successful and

Sir Chris Hoy of Great Britain celebrates victory in the men’s keirin event at the 2012 Olympics

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“We’re thrilled. It will be great for Indian sports fans and for both companies” Mike Morrison, vice-president and general manager, ESPN Asia Pacifi c

“Sport has been slow to move to personalised fan engagement”Jim Rushton, global leader/partner, Sports and Entertainment Practice, IBM Interactive Experience

highest level of Track World Championships ever seen.”

No pressure then, for event organiser British Cycling, one of the world’s best-funded national governing bodies for the sport, with an annual budget of around £25 million ($35.8 million), more than many international federations of Olympic sports.

Jonny Clay, British Cycling’s cycle sport and membership director, and the event director for the world championships, accepts the UCI’s challenge with equanimity, telling us: “I hope we’re not arrogant, but the environment we work in allows us to think about being best in class, rather than developmentally. Clearly certain disciplines could do with developing on different continents but it’s important in terms of revenues that properties are seen to be best in class.

“The UCI is having discussions around [renewing] four-year sponsorship deals, so it needs to demonstrate from time to time what this event can look like. It’s to our mutual benefi t. I hope the event goes very well and we can say: ‘This is what a Track World Championships can look like’.”

The budget for hosting the event is £2.4 million. “By far the biggest source of income [about 50 per cent] is ticket sales,” says Clay. “That’s refreshing, because apart from track we don’t generate much [from ticket sales] for other disciplines because they’re mostly free-to-view. Now we’ve sold out every evening session, which is a fi rst for a Track World Championships. There are 4,400 seats for sale each

session, and we’ve sold out all but a few morning and afternoon sessions. In fact we had to create more sessions to generate revenue.”

Other sources of revenue include UK Sport, the national sports funding and administration body, and other local partners including the London Legacy Development Corporation, the body responsible for the legacy use of Olympic facilities.

The UCI retains a proportion (between 30 and 50 per cent) of the sponsorship inventory for its own sponsors – Tissot (timing), Shimano (cycling components), Santini (cycling clothing) and El Moto (maker of electric ‘derny’ bikes used for pacing riders in some races). The rest is available for the organising committee, but for the local organiser, Clay admits: “Sponsorship has been a struggle, if I’m honest. We’ve brought in £100,000 to £150,000. It’s been the hardest work, really.”

Local sponsors signed up by British Cycling are Fiat, the car company, and Sky, the pay-television broadcaster that is a major sponsor of cycling in the UK. In July last year Sky announced, however, that it is to end its partnership with British Cycling this year, after eight years, but will continue

“The next generation sports fan wants to be behind the scenes, between matches and in the heads of the athletes”Marcello Fabiano, head of sport at Social Chain

to support Team Sky, the eponymous professional team.

Sky’s presence appears to be at odds with that of the BBC, the exclusive UK broadcaster of the event, whose rights fee goes towards paying the costs of Vsquared TV, the specialist and experienced company that is providing television production of the event. Not so, according to Clay, who points out that this is not the fi rst cycling event in the course of Sky’s eight-year relationship with the governing body that it has sponsored without holding broadcast rights.

He says: “They’ve become comfortable with it over the years. The BBC will have Chris Hoy [the former UK track star who commentates on cycling for Sky] as a pundit, and to do that it had to get Sky’s agreement. [In return] the BBC allowed Sky to have a presence [at the track] from a news and broadcast point of view.”

International media rights for the event are distributed by the UCI, via its commercial partner Infront Sports & Media, and it’s on track to match the level of coverage achieved by last year’s edition held in France in the French Cycling Federation’s new velodrome on the outskirts of Paris, according to Jacobsen. He says: “There should be almost 40 broadcasters reaching 150 countries. Based on last year, we’re at the same level. We have a multi-year agreement with most of our broadcasters, and we’re coming to the end of a four-year cycle, so there shouldn’t be any big change compared to last year.”

A total of about 600 hours of

“I hope we’re not arrogant, but the environment we work in allows us to think about being best in class rather than developmentally”

WHAT THE DIGITAL REVOLUTION MEANS FOR SPORT, P10

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coverage will be broadcast to a cumulative audience of around 170 million, based on figures produced on behalf of the UCI by Repucom, Jacobsen says.

Another source of revenue for British Cycling is hospitality, and here, once again, Clay claims a first for a Track World Championships in that the demand has been so great that provision will spill out from the track and into a specially-erected marquee near the velodrome entrance.

The budget envisaged revenues of £100,000 from this source, and Clay admits: “Hospitality is new to us, so we contracted with Sports Travel & Hospitality Group (STH).” STH, formerly Prestige Ticketing, is a joint venture between Sodexo (the French-owned food services and facilities management company) and the Mike Burton Group, which was the sole commercial rights holder for corporate hospitality at the 2012 London Olympics. It also ran the hospitality programme at last year’s Rugby World Cup, hosted by England.

Clay continues: “It was a hefty income line which was making me nervous, so we got security by sub-licensing, and we will more than achieve

the budget of £100,000. It’s a very small place the velodrome, and when you get to an event of this size and scale, all the space is taken up. It’s not the best place to work in terms of use of the full facility, so you’ve got to bring infrastructure in. The hospitality marquee is 50 metres from the entrance, and it’s the first time we’ve done that. There are also three other marquees for the media and other services. I’m not aware this has been done before.”

British Cycling’s relative affluence means that it is one of a limited number of national cycling federations that could contemplate taking on the financial and organisational challenge of a Track World Championships. But why did it want to do so?

Clay’s answer perhaps betrays the nature of his day job at British Cycling. It’s about home advantage for the British team, he says, adding: “We do have a specific major events strategy, but it works around the Great Britain cycling team’s ambitions. It’s the final scoring event for gaining points for [qualification for] Rio.

“Of course, you can’t guarantee [Team GB] will be successful, but we’d rather drag some of our opponents across the continent to compete for points. The Track World Championships were in Melbourne four years ago [before the London 2012 Olympics] and that was not just a happy accident for the Australians. It means the team can prepare in the right environment; they can focus on what they need to do.”

“I hope the event goes very well and we can say: ‘This is what a Track World Championships can look like’”

£25mANNUAL BUDGET OF THE BRITISH CYCLING

ORGANISATION

4,400SEATS AVAILABLE FOR

EACH SESSION OF THE 2016 TRACK CYCLING WORLD CHAMPIONSHIPS AT THE OLYMPIC VELODROME

1,000NUMBER OF HOURS OF

ORIGINAL PROGRAMMING THAT ESPN WILL OFFER

SPN EVERY YEAR

PERCENTAGE ANNUAL GROWTH OF TELEVISION ADVERTISING IN INDIA

15

7GOLD MEDALS WON BY GREAT BRITAIN’S TRACK

CYCLING TEAM AT THE 2012 LONDON OLYMPICS

Great Britain’s Katy Marchant in action in January


The Walt Disney-backed ESPN had been absent from the Indian TV market for nearly three years when it was announced last October that it had signed a long-term deal with Sony-owned broadcaster Multi Screen Media to co-brand channels and digital platforms and share content.

This came to fruition in January when MSM, now rebranded as Sony Pictures Networks India (SPN), and ESPN rolled out the Sony ESPN and Sony ESPN HD channels in time to offer live coverage of tennis’ Australian Open, part of a strong commitment to the sport that also includes men’s ATP events.

Sony ESPN replaced Sony Kix, a channel which launched last April to show matches from cricket’s high-profile Indian Premier League, but also other sports, including tennis, soccer, American football’s NFL, basketball’s NBA and

control. A three-year non-compete clause formed part of that deal, but ESPN was eager to return to the burgeoning Indian TV market, and is said to have spent 18 months weighing up the options before the alliance with Sony.

Mike Morrison, the vice-president and general manager of ESPN Asia Pacific, said: “It’s really a terrific opportunity to collaborate on sports. We’re thrilled with the fit. It will be great for Indian sports fans, and great for both companies.”

The partnership with SPN differs from ESPN Star Sports in that it is not a joint venture, but a collaborative agreement that entails the sharing of content and rights across platforms, co-promotion and cross-promotion, co-operation on programming development and other mutually beneficial initiatives. There is no set policy on joint bidding for rights, with properties to be considered on a case-by-case basis.

The aim is to launch two further co-branded channels in the next 12 months although Singh stressed that this timescale and market share “depends on the sports rights we have,” when there is competition from the likes of Star India and Ten Sports owned by Zee Entertainment Enterprises.

Given the popularity of cricket in India, the IPL remains SPN’s key sporting asset, with the Twenty20 tournament, which is held in April and May, having an urban-only reach of 192 million in 2015.

Indeed, there has been talk that the tie-up with ESPN was in part motivated by the desire to retain the rights when the present lucrative deal expires in 2017.

However, there are other resources that will prove complementary, notably ESPNcricinfo, regarded as the world’s leading cricket website, which has ensured that, in reality, ESPN has not actually been absent from India in the last three years.

Both SPN and ESPN are looking at ways in which television and online cricket content can be cross-promoted, with the IPL the most obvious example.

Morrison says: “We have a great legacy in India with ESPNcricinfo. I’m excited as to how we can integrate [the TV offering]

Sania Mirza winning the 2016 Australian Open Women’s Doubles

ESPN exploits Indian TV legacy

The return of ESPN, the renowned international sports broadcaster, to the Indian landscape is expected to galvanise a burgeoning market now embracing sports other than cricket

By Simon Ward

“In India, ESPN has a very strong legacy. Even though they have not been operating here for a long time, the brand recall is still very strong”

mixed martial arts’ UFC.The new outlets complement Sony Six,

the more established sports channel, which launched in 2012 and features the IPL and other premium events, and any further channels will be co-branded.

ESPN will offer its new partner 1,000 hours of original television programming each year, including studio programmes that support major events, and there will also be collaboration on digital platforms, harnessing the strong market position of Sony Liv, the video-on-demand streaming service, and globally popular ESPN websites such as ESPNcricinfo (cricket) and ESPNFC (soccer).

While the Sony sports channels have been able to acquire an impressive portfolio of sports rights and increase audiences, the company felt it could not afford to pass up the chance to partner with ESPN, which operates 35 TV networks and related businesses reaching over 60 territories worldwide.

NP Singh, the chief executive of SPN, tells Sportcal Insight: “When the opportunity to launch co-branded channels with ESPN came up, we evaluated it because ESPN is the leading brand in sports and we are a leading brand in India.”

He added: “In India, ESPN has a very strong legacy. Even though they have not been operating here [on TV] for a long time, the brand recall is still very strong.”

The legacy derives in large part from ESPN Star Sports, the pan-Asian broadcaster that was a joint venture with News Corporation’s Star India and operated for 18 years until 2012 when Rupert Murdoch’s media empire took full

10 News Analysis

content creators. By co-ordinating their activity, Social Chain is able to control what gets talked about online, creating a social media buzz that brands crave.

In minutes, a brand’s story can be shared through Social Chain’s near 200 million-strong network of social media influencers, pages and communities.

Social Chain is now starting to make waves across all sports, with contracts in place with clubs, broadcasters, rights owners and sponsors eager to put those powers to good use and break through the online noise with authenticity and relevancy.

Marcello Fabiano, head of sport at Social Chain, tells Sportcal Insight that brands need to be both top of mind and accessible.

He says: “Originally, influencer marketing or social marketing was about getting big celebrities with large social media followings on board. But people are realising now that is a very expensive way of maximising reach, not engagement.

“We have the ability to understand more about the audiences you are trying to find, what they like and don’t like, who they talk to and where, and then build content around that. How do they want to engage with each other? You may not need the biggest celebrities in the world.

“Eighty-three per cent of sports fans will check social media sites while watching a soccer game on TV and there is this need for engaging content, particularly video, that feeds this desire for the next generation of sports fan to be the first to know and have an opinion on something. When choosing only one

A Manchester City fan kills time ahead of a game by checking his phone

All you need to do is listen

Even the most digitally-reluctant stakeholder in sport has grasped the concept of social media, but not all organisations, whether they fit into the category of teams, governing bodies or brands, are succeeding

By Jonathan Rest

Twitter, Periscope, Instagram, Facebook, Vine. While rights-holders understand the need to get their message out there in order to engage with consumers, they don’t always know how best to do it.

Costly, celebrity-driven marketing might be an immediate hit, but is it hitting the desired audience?

This has led to the rise of ‘disruptive’ social media influencers, such as Social Chain. Disruptive by its own admission, Social Chain has quickly established itself as Europe’s largest influencer marketing agency.

Founded by a group of university dropouts, Social Chain counts behemoths likes Puma, Unicef, Universal Studios and Disney as clients.

In little over a year, the company has brought together some of the most successful and popular social media

with ESPNcricinfo-branded programming. We will be seeing something in the not too distant future.”

ESPN’s strength in the digital sphere was a key element in the agreement with SPN, with ESPNFC assuming increasing importance in India as soccer audiences grow. There are plans for TV programmes aimed at the domestic market, a localised version of the general sports website ESPN.com and a multi-sports mobile app in the coming months.

Morrison describes Sony Liv as having a “terrific presence,” and the platform, which is available via the internet and on Android and iOS mobile apps, had an early-year showcase in the shape of live streaming of the Australian Open tennis.

While audiences for sports other than cricket remain relatively small, SPN has been prepared to invest in potential, claiming to be the ‘home’ of global soccer in India, with rights to properties such as Euro 2016, the 2018 World Cup, Spain’s LaLiga, Italy’s Serie A and England’s FA Cup.

The only major competition missing from SPN’s portfolio is England’s Premier League, the rights to which have been retained by Star India in a three-year deal running until the end of the 2018-19 season.

Singh claimed that it was important to have access to diverse content in order to connect more effectively with young people who show the most interest in overseas sport.

He says: “We started to see this trend a few years ago. When we launched Sony Six, we did it on the back of UFC and NBA. We saw that the youth of India is following a lot of non-cricket sports, including on digital platforms.”

Sony Six was the most viewed sports television channel in 2014, with an annual viewership of 181.3 million, placing it ahead of Star India’s Star Sports 1 on 172.3 million and Star Sports 3 on 169.2 million.

International media companies such as ESPN are being drawn to India by the prospects for growth, with television advertising continuing to grow by about 15 per cent per year. Cable networks are increasingly committed to digital.

Morrison says: “It’s quite a dynamic and fast-moving market. This collaboration sets us up well for fans. We’re prepared to adjust and adapt to how the market will evolve.”

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or two channels/influencers to broadcast, you miss out on creating that feeling that everybody is talking about something that fuels this desire.”

So why are companies getting digital wrong?

For Fabiano the main reason is because brands are suffering from what he refers to as, ‘Cool Dad Syndrome’.

He explains: “The next generation sports fan does not digest sports content the same way. They want relevancy and authenticity, and prioritise digital content over traditional mediums. They want to be behind the scenes, between matches, in the heads of the athletes.

“Unfortunately, many rights holders and brands fail to maximise their potential. Social Chain is different. Our average age is only 21, we have 50 of the

most creative people in social working for us to take risks on behalf of our clients, and we are constantly engaging to our ever-changing audience.”

And in marketing terms, that means access to lucrative data. Every website visit, social ‘like’ and picture posted online can be stored and analysed, yielding vital data about your target market.

“Data is crucial,” Fabiano notes. “It underpins everything we do and helps us not only control the narrative of conversation for our clients but justify spend as well.”

Social Chain believes sponsors are failing to activate sufficiently in the digital marketplace, particularly those which have deals with soccer clubs where they could be competing with dozens of other

Fans taking a picture of their matchday ticket and (below) checking other results online

brands for exposure.Fabiano continues: “You’d be surprised

how many organisations lack the ability to activate sponsorship successfully within this next generation audience. They talk about executing digital or social activations, but when you look under the surface it’s not really as deep as it should be or getting as much value as perceived.

“Some clubs may have as many as 50 partners globally, spending money every year in sponsorship. From the clubs’ point of view, it’s about how can you give them [sponsors] more value every year to grow the relationship, while looking at attracting larger, more lucrative sponsors for next season.

“It’s also about educating the brands paying millions of dollars to these rights-holders that are using traditional media which the next gens are just not engaging with. Yet they are spending more and more every year. That is a problem. It’s so important for brands to explore new and exciting ways to activate those sponsorships with online/offline and even guerrilla initiatives.”

On the broadcasting side, Fabiano believes rights-owners must embrace, rather than clamp down on, new technologies. English soccer’s Premier League has striven hard to block Vines of goals to protect the value of its as-live clips, while golf’s PGA Tour has banned the use of Periscope at major tournaments.

Fabiano warns: “We are working closely with some major sports broadcasters already and we know that if you look at the average age of people that attend a live game it’s still very high, 40 plus. These guys are not necessarily the audience that are engaging on social or even care about the ‘virtual pub’ that exists nowadays. You have to understand that it is always going to be there because people want to absorb and digest sport in different ways.

“Next generations want highlights, clips, behind-the-scenes footage. They want more engagement and are quickly moving on to new platforms like Snapchat, Periscope, or even Instant Messenger - what plan do broadcasters have for adopting these successfully?

“Rights-owners need to think about how they can support this ever-changing environment. There’s a lot of money being spent in broadcast, and of course you want to protect that asset. However, there are also new revenue opportunities that fans everywhere are screaming about - all you need to do is listen.”


Making the right connections One of the major benefits of the ‘connected stadium’ now is the ability it gives a club to learn more about its fans and generate new revenue streams, according to IT giant IBM

major players in: construction and design; infrastructure technology, software and IPTV; communications solutions provision; and fan experience consulting and data management integration.

The IBM Sports & Entertainment Consortium was launched towards the end of last year, and comprises firms that have worked with 250 sports venues worldwide and will offer joint products and services, exchange intellectual property and collaborate on design and global deals to ensure that fans have the best possible experience at events.

The consortium line-up is as follows: Construction and Design: AECOM; HOK; Whiting Turner Infrastructure Technology/Carriers: Alcatel/Lucent; Anixter; Commscope/TE,Corning; Juniper; Ruckus Wireless; Schneider Electric; Smarter Risk; Tellabs; Ucopia; Zebra Technologies; YinzCam; Zayo; Zhone Communications Providers: AT&T; Level 3; Verizon Fan Experience Consulting & Data Management Integration: IBM

IBM also unveiled a Sports, Entertainment and Fan Experience consulting practice, headed up by Jim Rushton, whose previous roles include that of chief revenue officer at the NFL’s Miami Dolphins and the team’s Sun Life Stadium.

Explaining the need for the consortium, he tells Sportcal Insight: “Today, in technology, it would not be wise for an organisation to say it can do everything on its own so we’ve brought best-in-breed to deliver that. We’re acting as the master

An iPhone charges at one of the many charging stations at Levi’s Stadium

By Simon Ward

83$700BN

30

PERCENTAGE OF SPORTS FANS WHO WILL CHECK

SOCIAL MEDIA SITES WHILE WATCHING A GAME ON TV

ANNUAL AMOUNT GENERATED BY THE GLOBAL

SPORTS INDUSTRY

40AVERAGE AGE OF

FANS ATTENDING LIVE SOCCER GAMES

TERABYTES OF WIRELESS DATA EXPECTED TO HAVE

BEEN USED AT SUPER BOWL 50

15.5

PERCENTAGE OF FANS AT THE 49ERS GAMES WHO USE THE DEDICATED APP

Having an efficient network infrastructure in a sports venue is increasingly imperative to meet the demands of spectators looking to enhance and share the experience of attending an event, and offers benefits to clubs in that they can better engage with fans, one of the leading players in the market claims.

A lack of connectivity at large stadia has been a bugbear of spectators in first-world markets, but the situation is improving as clubs team up with major telecoms and IT corporations to roll-out enhanced wi-fi services or move to new homes already kitted out with state-of-the-art technology that enables users to enjoy an experience akin to that at home on a computer or on the move on a mobile device.

IBM, the USA-based multinational technology and consulting giant, is looking to accelerate the process still further by leading a consortium including

14 News Analysis

integrator, bringing IBM expertise, but also other solutions to provide a seamless engagement platform.”

Rushton, global leader, IBM GBS Sports & Entertainment, adds that there has been mounting interest in the work of the consultancy in the first few months of its existence: “That’s growing. It’s looking at different models to show clubs how to get return on investment and save on capital expenditure. Really it’s driven by consumer demand and the nature of fans.”

At the time of the launches, IBM cited figures from research group A.T. Kearney showing that sport generates nearly $700 billion a year around the world and that the market is growing faster than the gross domestic product in almost all countries.

However, Rushton says that sport “has been slow to move to personalised fan

engagement,” and that there is a need to embrace the benefits of in-stadium technology to give fans a similar level of experience to that they enjoy via media platforms in other environments.

The areas of focus are seen as infrastructure, data management and the delivery of this experience, be it via a video screen, a mobile phone or a tablet.

Rushton says the traditional relationship between clubs and fans was the exchange of tickets for cash, but that connectivity enables stadium operators to tap into this loyalty to find out who is attending a match, and in what ways they are using mobile devices, making it possible to customise services and drive revenues.

Rushton says: “Sport needed to catch up and take advantage of its unique characteristics. In sport, there have been

Super Bowl 50 was held at the San Francisco 49ers’ Levi’s Stadium in Santa Clara, California

millions of fans, but very few customers.”He adds that it is necessary for clubs to

tailor their offering to different segments, saying: “Folks who consume sport in a venue are a community, those who do so in a pub are a community and those who do so at home are a community. It is a question of how do you use digital to monetise them?”

Rushton adds: “Connectivity is a big part of it. But let’s not just have connectivity for the sake of it, but to learn who is in the building.”

In addition, there is a value in giving fans access to social networks such as Facebook and Instagram as they can publicise their attendance at a particular event. Rushton says: “That’s going to create some level of fear of missing out and future opportunities. When friends see friends having that experience, they are going to want it themselves.”

However, the online benefits go beyond ticket sales at the stadium, with the IBM executive claiming: “There are a lot of third-party opportunities within the facility and in unifying that offering. There are concessions companies, merchandising, security – a whole lot of people operating in the same space.”

The potential of a ‘connected venue’ was on display at Super Bowl 50 at the state-of-the-art Levi’s Stadium in Santa Clara, California in early February when wireless data used was expected to total 15.5 terabytes, up from 6.6 terabytes a year earlier and 2.5 terabytes in 2014.

The Levi’s Stadium, which opened in 2014, is home to the San Francisco 49ers, and VenueNext had already launched an app used by 30 per cent of the fans who attend the team’s games. VenueNext developed a dedicated app for Super Bowl 50 which gave fans access to services such as instant replays, the ability to order food and drink or merchandise to be delivered to their seats and even to find out how long the queues were for vendors and bathrooms.

IBM is looking to build on its long experience in sport, including providing technology services at events including golf’s US Masters and US Open and tennis’ Wimbledon, US Open, French Open and Australian Open championships, and in supporting the England rugby union team.

Rushton says: “IBM is primarily involved in sport activating existing sponsorships. Now it’s a case of positioning, saying we’ve learned a lot through this activation, but we’re extending out into three areas – fan engagement, team performance on and off-the-pitch and venue optimisation.”

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16 Columnist Opinion

The tears of joy that marked Rio’s winning Olympic Games bid are a distant memory, replaced by troubled preparations, crisis in Brazil and the spectre of doping.

Back in 2009, Rio’s winning bid was sold as a showcase for Brazil’s booming economy and the Carioca vibe. Seven years on, Brazil’s economy has tanked, a corruption scandal has engulfed the government and big business, and civil discontent is raging. No modern Games has been staged against such a crisis-riven domestic backdrop.

There’s more. Athletics is uniquely important to the Olympics’ image and credibility. And the spectre that haunts the Olympics is doping – in particular in athletics. So, following the IAAF’s disgrace and the exposure of Russia’s state-sponsored doping, the IAAF decision in March on whether to allow Russia to compete in Rio is of huge signifi cance. Whichever way it goes, it will be key to the Games story – and possibly credibility.

But it’s going to be a great party, right? Well, maybe. Against this background, here’s my guide to eight issues to look out for in the run-up to August’s extravaganza.1 On the track, one man above all will once again carry athletics, and the Games itself, on his shoulders: Usain Bolt. Rio’s story will also be the story of Bolt’s last Games. Few, if any, have been as important to the Games, to their sport, and to sport itself, as Bolt. Rio will quite rightly be a celebration of that. 2 A great Games off, as well as on, the track is critical for the IOC. Worldwide, cities and their citizens are increasingly sceptical about the benefi ts of hosting the Games, leading to fewer and fewer bidders. Rio’s legacy - chiefl y, its effect on the city’s infrastructure - will therefore be a major talking point. But the biggest scrutiny will be on Games-time operations. Organisational failure is not an option. 3 Famously, the Olympic ethos is that ‘the most important thing is not winning but taking part’. Whereas, if you know Brazil, you’ll know that for

Brazilians, sport is all about winning! The interplay between these two contrasting philosophies will be fascinating – especially with Brazil likely to win far more Paralympic than Olympic medals.4 Creatively, this Games could be special. The creative collisions between Brazil and Rio and the Olympics and Paralympics should be really inspirational for all the brands involved in the Games. I’m hoping they rise to the occasion, particularly the global Olympic Partners, and raise the bar for Olympic and Paralympic Marketing.5 With the average age of an Olympics fan now over 50 and rising, 2016 is Year Zero for the IOC’s new digital channel – an attempt, above all, to sell the Olympics to the young. How well the Olympic Channel’s athlete- and lifestyle-focused content succeeds in reaching new audiences will be one of the stories of this Olympic year.6 Rio will be a testing ground for one of the biggest changes to the Olympic sponsorship ecosystem in years – non-sponsors of the Games being offi cially allowed to use athletes in marketing campaigns around Rio, following the IOC’s decision to bow to athlete pressure. Which brands are given waivers, and to what extent their activity impacts Games sponsors, will likely be the biggest sponsorship story of Rio 2016.7 London 2012 was the fi rst truly Socialympics, but Rio will take this to new heights given that Brazil leads the world in time spent on social media. And for the Brazilian consumer, one platform will be an incredibly infl uential force during the Games – WhatsApp, which is used by 93 per cent of mobile internet users in Brazil, or 78 million people. Rio will be the fi rst WhatsApp Games.8 Every Games evolves the Olympic and Paralympic brands. All the signs are that Rio will have a more profound effect than most, with the outcome uncertain. Rarely has so much been at stake for the Games, its host city and the IOC. Rarely has sport been in such crisis. Let’s hope that when we look back on Rio, we remember it for all the right reasons. And for being a great party too.

Tim Crow joined Synergy in 1999 and became CEO in 2007, since when he has led the agency through a period of rapid and sustained growth. He has advised brands in over 50 countries and is a frequent contributor to the national and international media on the business of sport and sports marketing

Rarely has so much been at stake for the Olympic Games, its host city and the IOC’

‘

LEADING INDUSTRY VOICES FEATURE DAILY AT www.sportcal.com/news


Ever since European Commission president Jean-Claude Juncker called for a Digital Single Market in November 2014, sports rights owners and their broadcasters have been trying to work out exactly what the consequences for their respective businesses might be.

The commission’s fi rst communication in May 2015 set alarm bells ringing in creative industries across Europe, with its talk of cross-border access to digital audio-visual content, unjustifi ed geo-blocking and modernisation of the European copyright framework. Sport, fi lm, entertainment, music and their respective broadcasters, studios and distributors have been seeking audiences with the commission ever since to explain how its ideas risk achieving the exact opposite of their stated intent. Instead of increasing choice for consumers, lowering prices and reducing piracy, the likely consequence of cross-border access to content will be pan-European licensing and a one-size-fi ts-all solution across the EU.

MODERN FRAMEWORK On 9 December 2015, the commission published its proposal for a European regulation to “ensure the cross-border portability of online content services in the internal market,” together with a new communication “towards a modern, more European copyright framework.” Overall, sport has given a cautious welcome to the proposed portability regulation. It upholds the principle of territorial licensing whilst introducing a portable solution for consumers when travelling to another member state for temporary periods. There are still details to be ironed out, particularly around authentication mechanisms, duration of portability and the transitional provisions, but these issues seem solvable with further consultation.

Far more concerning is the communication on copyright. The commission does not seem able to let go of its belief that there needs to be wider cross-border access to content, irrespective of demand. The Commission’s own Eurobarometer

survey in August 2015 found that only 2 per cent of its representative EU consumer sample tried to access content through online services generally meant for users in other member states. These fi ndings underline the fact that sports content is very culturally specifi c. Fans want to watch their own teams, countries and individuals competing in sport, with commentary in their own language and cultural context.

TERRITORIAL MODEL It is this market demand that underpins the model of territorial licensing, ensuring that consumers across Europe have access to the content they want to watch. And it is precisely this territorial model that has led to such a rich and diverse offering of sports content across the EU. But territorial exclusivity and cross-border access are mutually exclusive; the two cannot co-exist.

Unlike the single market for energy or commodities, there is no uniform demand and value for the same sporting competitions within the EU. The value of cricket rights in France or Germany bears no relation to the value of the same rights in the UK. The value of winter sports rights in Austria is completely different from their value in Portugal. Even in sports with equivalent European followings such as football, individual leagues and teams have, unsurprisingly, far greater value in their home markets than outside.

Imposing a Digital Single Market where no underlying single market exists will only encourage rights owners to license their content exclusively to a single European bidder, effectively creating a pan-European licence. Consumers in smaller countries would have to buy the content from that single source, almost certainly at a higher price and not in their language of choice.

Free market dynamics operate in every sport and in every market. But these markets are fi ercely regional, not pan-European. Let us not make the error of trying to create a Digital Single Market where none exists.

Mark Lichtenhein is the Chairman of the Sports Rights Owners Coalition (www.sroc.info), and former Head of Television, Digital Media and Technology at the PGA European Tour. Prior to his career in sport, Mark held a number of positions in the European software industry with Siemens and the Cap Gemini Group

There is no European single market in sport waiting to be digitised’

‘

18 ChinaMedia

Digital rights in China: Boom or bust?

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TTY


The frantic rush for exclusive sports content among China’s online players has delivered inflated fees for federations, leagues and agencies alike in the last 18 months. Martin Ross examines whether the spending is sustainable and who might last the pace

The Chinese market used to be a headache for rights-holders. Dominant state broadcaster CCTV had held on to

major properties for years at a tiny cost, thanks to a shortage of challengers in spite of the lure of the country’s massive audience. Now all that has changed, and while CCTV will continue to have its place, those selling the rights are reaping the benefits of the Chinese government’s drive to turn the country’s sports sector into a ¥5-trillion ($760-billion) industry by 2025.

The government-backed spending has helped to entice leading soccer players to the Chinese Super League, with wage packets hitting $350,000 per week, and the spending on rights has been equally eye-catching. Basketball’s NBA is earning $500 million in media rights alone through its exclusive five-year deal with Tencent. Spain’s LaLiga netted a 500-per-cent rise in the value of its rights through a tie-up with PPTV. Women’s tennis’ WTA Tour brought in a nine-figure sum from an exclusive 10-year agreement with iQiyi.

And all this is against a backdrop of the recent Chinese stock market crash. The spending continues unabated, motivated not only by the government’s backing, but also by an urge to tap into the internet generation and a middle class willing to spend heavily on leisure pursuits.

Various new names have surfaced in the bid to grab a slice of China’s market of 700 million regular internet users, around three-quarters of whom watch video online. Leading the pack in terms of spending and rights acquired has been Le Sports, the sports arm of the burgeoning digital company recently rebranded from Letv to LeEco. Over 200 sports properties have been signed up by Le Sports, which joined Tencent in promoting itself heavily at the Sportel trade fair in Monaco last year.

Even considering China’s huge internet audience, a growing middle class eager to spend money on leisure pursuits and the ability of the country’s internet giants to absorb losses on their sports projects, the industry is thought unlikely to support the current number of digital players long term. Some form of consolidation is considered inevitable.

Arguing that consolidation will begin within a

Opposite, top: Chinese football fans at Mong Kok Stadium in Hong Kong; bottom: Tim Cahill of Shanghai Greenland Shenhua celebrates

Wanda: Buying from the top

The name of Wanda, the Chinese property and entertainment giant, first surfaced in sports business circles in November 2014 when its interest in Infront Sports & Media, the agency it eventually acquired for €1.05 billion, became public.

Wanda has adopted different tactics from the likes of Le Sports and Tencent, sidestepping the tussle for exclusive media rights at inflated prices and taking the approach of owning IP “from the top” by becoming the rights-holder.

The Infront acquisition was followed last year by a $650-million deal to buy the World Triathlon Corporation, organiser of Ironman long-distance triathlon events, amid a government-led focus on mass participation events. Lagardère Sports’ endurance division (once known as Upsolut) became Wanda’s latest sports investment when an agreement was announced in January, adding 21 mass participation events to the Ironman stable.

These investments, along with the existing Wanda Sports China operation, now sit in the recently-established Wanda Sports Holding division. Group chairman Wang Jianlin, China’s richest man with a net worth of $23.1 billion at the end of January 2016, has promised more investments this year and has vowed to “create the world’s first sports company with an annual income of more than $10 billion.” He has also invested €45 million in 20-per-cent of Atlético Madrid.

Wanda Sports, which has established its headquarters in Guangzhou, has predicted revenues of ¥7 billion in 2016, 19.3-per-cent up on 2015. The figure would appear conservative given the turnover at Infront and WTC alone, along with Wanda’s seemingly insatiable appetite to invest in sport.

Wang also teamed up with Jack Ma’s private equity firm last year to buy into Le Sports by taking part in a ¥800-million fundraising.

year, Yu Hang, Le Sports’ vice-president of strategy, tells Sportcal Insight: “Five years ago we saw the video streaming sites and some of the names have gone. Most of the players [now] come from very strong groups, like Baidu, Alibaba and Tencent, and have financial support. For a single business, they care about losing money but there is another purpose for them, for branding purposes [for example] and using sport as an entry point for users.

“There is also the defensive solution that platforms need sports content or all the sports-related users will go to other platforms. I think in the long run, some names will survive and some may not but there will definitely be consolidation, which may happen in a very short time.”

However, for Sam Li, Sina Sports’ head of content acquisition and strategic partnerships, the “government’s big blank cheque” to spend on sports will ensure that there remain several players in the market. Looking ahead, he observes: “The government has made certain that this is going to be a very big industry so I don’t think that there are just going to be a few players. Each player in the market could have a different space and niche.”

One source from a leading international federation predicts that consolidation could come more from the form of cross investment by the bigger groups already seen with the likes of Alibaba backing Le Sports and Sina, or Wanda’s

20 ChinaMedia

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rights spending spree in the last 18 months has rocketed Le Sports, an arm of the rebranded LeEco group, to the top of the market in terms of content. Along with live streaming, the business also organises events (such as soccer’s ICC in China), manufactures smart TVs and sports-related portable hardware (including ‘smart bikes’) and creates sports-related apps. Exclusive rights to MLB, Ligue 1, MLS, Serie A, countless other soccer leagues (allowing customers to bet on games as they watch the action), ATP Tour and Wimbledon are among those signed up. In Hong Kong, exclusive Premier League rights (for around $130 million a year) and the 2018 Fifa World Cup were also secured. A second funding round held last year valued the firm at $3 billion and observers have predicted that Le Sports (vice-president Yu Hang is pictured top, right) is beefing itself up for a sale, a theory the company rejects. Olympic broadcast guru Ma Guoli has also been recruited from Infront to help lead the sports push.

Tencent: One of the global internet giants, Tencent’s services include social networking, e-commerce and gaming. It operates QQ.com, one of China’s largest portals, along with the popular WeChat instant messaging service. Tencent, which holds non-exclusive rights to the Champions League, Bundesliga and Premier League, made its major sports move at the start of 2015 by landing the NBA rights. A subscription video-on-demand platform – still a rarity for sports coverage in China – was subsequently launched by Tencent for the NBA coverage and it also offers the NBA League Pass streaming service. Tencent this year linked with ESPN to launch an exclusive digital partnership in China with exclusive ESPN content in Mandarin on the QQ Sports portal, focusing on NBA and international soccer.

iQiyi: Owned by Baidu, the leading search engine and the first Chinese company to be included in the NASDAQ-100 index, iQiyi shot to prominence at the end of last year through exclusive long-term streaming deals with women’s tennis’ WTA Tour and golf’s PGA Tour. The former allowed the WTA Tour to increase its Chinese

media rights income from $2.2 million over four years to over $100 million from 2017 to 2026. iQiyi also showed non-exclusive Wimbledon coverage in 2015. Baidu, Alibaba and Tencent are China’s three internet giants and known by the BAT acronym.

Ali Sports: E-commerce giant Alibaba Group, founded by Chinese business magnate Jack Ma, is becoming increasingly involved in acquiring digital sports content since its purchase of the remainder of Youku Tudou, the online video provider known as ‘China’s YouTube.’ Ali Sports was launched in September 2015 as Alibaba vowed to “transform China’s sports industry” by teaming up with Sina and private equity firm Yunfeng Capital on the venture. Deals

have been signed by Ali Sports with the Chinese Boxing Association, boxing world body AIBA and the NFL (non-exclusively). A partnership with basketball’s FIBA was also discussed in January when Ma visited Switzerland.

PPTV: A live streaming platform in which Chinese electronics retailer Suning holds the largest stake, PPTV’s flagship offering is exclusive rights to Spain’s LaLiga for which it is investing up to $75 million per season in a deal that includes the sale of league merchandise in over 300 Chinese cities and towns. Exclusive deals for Dutch soccer’s Eredivisie and MMA’s UFC have followed. PPTV also operates channels for various Chinese soccer clubs. The company was valued at $560 million upon PPTV’s swoop for a 44-per-cent stake in October 2013.

Sina Sports: The first Chinese company to provide live streaming from both the Olympics and World Cup, Sina Sports has taken a more cautious approach amid the lavish spending elsewhere, choosing to focus on editorial content on its traditionally popular website and partnerships with the likes of UFC and Dakar Rally, plus the exclusive carriage of Manchester United’s channel, deals that do not involve the hefty acquisition of rights. Critics say that Sina will be left behind with its ‘web 1.0’ model, while Sina claims it is wise to sidestep “unsustainable” rights spending. Sina is already involved in the Ali Sports venture, though, and amid reports that Alibaba could invest in Sina.

Best of the rest: Arguably the most eye-catching rights investment so far was the five-year Yn8-billion contract between the Chinese Super League and Ti’ao Dongli, the Beijing-based sports media firm, worth 20 times the previous fee. Shanghai Media Group’s BesTV was the first Chinese IPTV service to hit the market and holds Premier League rights, while Sohu, Netease and Phoenix operate sports news portals, but fail to match the audience of Sina. Elsewhere, the Shanghai-based Hupu mainly focuses on basketball.


Wang Jianlin’s buying into Le Sports.But he welcomes the change brought about by

the flurry of exclusive digital deals, saying: “China has been a state-run monopoly for too long on the media side with CCTV playing the market. CCTV will still have its place but there is a digital space developing next to it. The question is who is built on a solid business plan and who isn’t?”

Asked whether all rights-holders should be making hay while the sun shines and selling their rights now for the next decade to the highest bidder, he said: “An international federation could still be underselling itself in a long-term deal. Of course the market could implode, but, on the other hand, what sounds like a fantastic deal now might not be, as the market could go the other way.

“I think an IF needs to build a deal with the necessary [financial and other] guarantees. It might be wiser to take an offer from a massive group with a lot of promotional and financial power than an offer of 10 or 20 per cent more from somebody that might explode.”

Sina remains adamant that the various digital platforms’ investment in sports rights cannot be financially supported in the long run.

“We don’t see their model being sustainable in the long term,” says Li. “You are paying $100 million or $200 million for particular rights and you don’t have any way of making that revenue back, then how long will you stay in business for?” He claims that Sina is unique as “we’re here for the fans and we care about what content they want to see.”

Li also reserves particular criticism for Le Sports, asking, “If you look at their 30 different football leagues around the world… do the Chinese fans really want to see the Russian football league or the Belgian league? Our fans are not telling us that they want the live rights to every single football league in the world.”

Sina Sports has pointed to research that found that its website accounted for 39 per cent of daily users of sports websites in China in the first five months of 2015, ahead of Tencent with 17 per cent, and insists that the strength of its editorial output and content partnerships, not weighty rights deals, will keep them at the top.

Le Sports’ Yu, who was previously with Sina Sports, argues that such a model will not succeed as users will migrate to other platforms offering exclusive streaming of popular sports, citing the example of Tencent, which he says increased its users by three or four times when it started showcasing NBA rights.

“Where are the [Tencent] users coming from?” he asks. “Not nowhere, they are coming from the other platforms.”

So what does Yu make of the unsustainability argument? He admits: “The market is not a rational market as the competition is fierce,” but adds, ”whether there is overspending remains a

From top: The Golden State Warriors take on the Cleveland Cavaliers; Guangzhou Evergrande celebrate Asian Champions League success; a fan tunes in via tablet at the Wuhan Open tennis tournament in China

question. If you don’t have a resource at an early stage then how can you keep your users amid this fierce competition?”

There remain several sceptics in the market about the viability of Le Sports’ business model, but Yu insists the company will be returning a profit from 2018 onwards. In fitting with LeEco’s bold goals, he states: “We see at that time after the consolidation, we will be one of the survivors with maybe three players in the market, redesigning the structure of the sports industry in China.”

The key to a sustainable model, once the frenzied scramble for rights eventually dies down, will naturally rely on the monetisation of users that can be lured to the various platforms, which will come in part through subscription revenue, until now scarce in China, given the country’s rampant piracy problem.

Le Sports and Tencent have set up pay walls for their Premier League and

NBA coverage, respectively, and Yu is confident that the SVOD (subscription video-on-demand) model that is now so prevalent in the rest of the world can be effective in China too.

Yu notes: “We feel the pay model will come sometime in the near future. Even the companies with huge financial support are also looking for the

commercial model. At the end of the day they are running a business. Globally everyone follows the pay model so I don’t see China as an exceptional case and that’s why we are trialling it now and we will put more resource into the subscription base service.”

Chinese consumers are still reluctant to pay for sports or film content, according to Yu, but he is

buoyed by LeEco customers’ willingness to pay for exclusive television drama content and the ease with which the transactions can be made online, be it through WeChat or Alibaba’s ‘Alipay.’ There is also a pertinent argument that piracy will now be taken seriously by rights-holders in China, as for the first time they have a vested interest in defending massive outlays.

Yu concludes: “The question is what content will they [potential subscribers] pay for and how much they can afford? I don’t see paying for content as the problem… there always needs to be a balance between the percentages of free and paid content.”

Meanwhile, the international federation source states: “It will come and it will need to come. The digital players are not paying hundreds of millions of dollars for content to stream everything free to everyone.”

Whether subscription revenues and increased advertising revenue for free content can offset the swollen rights fees remains to be seen.

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24 Media Deals of the Year 2015

Has there ever been such a turbulent year in the international sports industry? Which broadcasters and rights-owners were behind the top media rights agreements of the year? Who made a splash in the sponsorship arena? Which moves in the sports agency world grabbed the headlines? What were the year’s most eye-catching bids to host major sports events? On the pages that follow, you’ll fi nd our choice of all the highs and lows, the winners and losers, the deals and scams of 2015. By Callum Murray, Martin Ross, Simon Ward and Jonathan Rest

DEALS OF THE YEAR 2015

OLYMPICS The most high-profi le sports rights acquisition at Eurosport funded by new owner Discovery Communications came in late June as a €1.3-billion contract for the Olympics rights in Europe from 2018 to 2024 was unveiled at the IOC’s headquarters in Lausanne.

The agreement, which excludes Russia, put paid to suggestions that Discovery’s investment plans in Eurosport were ‘overhyped’ and left various European Broadcasting Union members to bemoan the news as “surprising,” “disappointing” and “a serious blow.”

The fi gure shelled out for four games might have raised eyebrows, but Discovery paid only a modest increase (per games) compared to the 2014-16 cycle, when Sportfi ve’s €250-million outlay was complemented by direct deals in Europe’s ‘big fi ve’ markets and Turkey, bringing in fi gures such as €152 million from pay-TV’s Sky Italia.

CHINESE DIGITAL EXPLOSION Spending on media rights in the world’s most populous country has revolutionised a market once dominated by state broadcaster CCTV and plagued by piracy, and the spending in 2015 was headlined by the NBA’s $700-million streaming agreement with Tencent until 2021 (see story on page 18). Incredibly, the NBA boasted that it received a higher bid before plumping for Tencent’s offer, and lavish spending in China has also included iQiyi’s deal worth more than $100 million over

PREMIER LEAGUE Executive chairman Richard Scudamore delivered a blow to Europe’s other heavyweight leagues in February as the English top fl ight’s new £5.136-billion live rights deals from 2016-17 to 2018-19 with pay-TV’s Sky and BT were announced at Mayfair’s plush Millennium Hotel.

The staggering 70-per-cent uplift exceeded analysts’ predictions and left observers to suggest that Sky, which is responsible for the lion’s share (£4.2 billion for 126 games per season), had overpaid.

The deal means that the Premier League will receive more per match - £10.1 million - than some smaller leagues in Europe receive per season for their rights, as Sky pays £11.05 million per fi xture and BT £7.62 million per match for its package of 42 games.

BROADCAST RIGHTS

TOP 5 BROADCAST DEALS IN 2015

1. Premier League’s £5.136bn three-year live rights deals with Sky and BT 2. €1.3bn Olympics contract in Europe with Discovery/Eurosport

3. NBA tapping into Chinese rights infl ation with $700m Tencent streaming agreement

4. LaLiga’s record €2.65bn sale of two premium live rights packages to Movistar Plus and BeIN Sports

5. AFL’s A$2.5bn deal with Seven and Foxtel, the largest sports broadcasting deal ever in Australia

Sportcal Insightwww.sportcal.com 25February/March 2016

AGENCIES10 years with women’s tennis’ WTA and Le Sports tying up the rights to over 200 sports events, while also spending nearly $400 million on Premier League rights in Hong Kong.

LALIGA Spanish soccer’s return to collective rights selling was vindicated in December when the Liga won a 47-per-cent increase in the value of its domestic revenues for its premium live rights packages from 2016-17 to 2018-19 in deals with pay-TV’s Movistar Plus and BeIN Sports.

A record €2.65 billion was raised, with rights to the ‘partidazo’, the fi rst-choice match of the week for both the fi rst and second divisions, sold to Telefónica’s Movistar Plus for €250 million per season.

Rights to eight other fi rst-division matches, all Copa del Rey matches, with the exception of one second-choice match reserved for free-to-air broadcast, the semi-fi nals and the fi nal, were acquired by BeIN Sports (which is operated jointly by the Mediapro agency and the BeIN Media Group) for a fee of €633 million per season.

AFL Records tumbled in August as Seven Network, Foxtel and Telstra signed Australia’s biggest-ever sports rights deal, penning a A$2.508-billion six-year domestic agreement for Australian rules football’s AFL from 2017 onwards.

The deal eclipsed the A$1.8 billion raised by rugby union’s NRL for its new fi ve-year domestic contracts (with Nine, Fox and Telstra) and also means that, on a per-season basis, the overall cost of the AFL rights will rise by 67 per cent, from A$250 million to A$418 million.

INFRONT SPORTS & MEDIA The year kicked off with a mega-deal that had been brewing for several months: the acquisition by Wanda Group of Infront in a deal worth €1.05 billion.

Then, in November, Wanda’s sports spending spree continued with the $650-million acquisition of World Triathlon Corporation, the organiser of Ironman long-distance triathlon events that invariably sell out around the globe. Wanda is looking to make further moves in the mass participation area and Ironman followed up its own acquisition by buying Lagardère Sports’ endurance division.

The business is to be brought under a new organisation, Wanda Sports Holding, which has boldly targeted over $10 billion in annual income.

LAGARDÈRE SPORTS In June, the Sportfi ve agency whose name disappeared in September as it was absorbed into its parent company’s rebranded Lagardère Sports, held on to one of its key properties, signing a 12-year extension to its media and

TOP 5 AGENCIES DEALS IN 2015

1. Wanda’s €1.05bn takeover of Infront and $650m swoop for WTC

2. Lagardère Sports’ $1bn deal for CAF’s media and sponsorship rights from 2017 to 2028

3. WPP’s GroupM launches ESP and acquires Two Circles

4. Mediapro acquires LaLiga’s centrally-sold international rights, fending off IMG

5. IMG and SUM win Copa América Centenario media and commercial rights


sponsorship rights deal with CAF, the African soccer federation.

The new agreement, which runs from 2017 to 2028, is worth a minimum guaranteed sum of $1 billion, a hefty increase on the current deal. A similar agreement with the Asian Football Confederation, Lagardère Sports’ other headline commercial property, is expectedto be renewed beyond 2020.

ESP/TWO CIRCLES In May, WPP’s GroupM announced a major development in its engagement with sports rights-holders with the launch of a new global agency brand, ESP, and the acquisition of Two Circles, the UK-based data-driven sports agency.

The move brought GroupM into more direct competition with established international sports agencies such as IMG, Infront Sports & Media and MP & Silva.

The company aims to work with rights-holders such as federations, leagues, events, teams, publishers and venues, albeit it could yet also fi nd itself collaborating with rights-holding sports agencies.

MEDIAPRO Also in June, Mediapro was appointed by the LFP, the Spanish soccer league, to sell the international broadcast rights to LaLiga from 2015-16 onwards, fending off a rival bid from IMG.

The agency agreed to pay a “very high” minimum guarantee for the coveted contract, according to one source, and was hopeful of earning substantially more than the €220 million brought in from international rights sales in the 2014-15 season.

IMG/SUMIn December, IMG and Soccer United Marketing were awarded the media and commercial rights to this year’s Copa América Centenario, the centenary edition of the South American soccer championships due to be held in USA in June. Conmebol and Concacaf, the two soccer confederations in the Americas, took the rights in-house in late October after a settlement was reached with Datisa, the troubled agency that had previously held the rights.

OLYMPICS The International Olympic Committee ended its long search for a major automotive partner in March as Toyota became a TOP sponsor in an eight-year deal worth a reported ¥100 billion that comes into effect in 2017, and will include the 2020 Olympic Games in Tokyo.

Toyota is the 12th TOP partner but the fi rst ever in the mobility category. It is also the third from Japan, joining electronics giant Panasonic and tyre maker Bridgestone. The trio are all committed until 2024.

Toyota will not have worldwide rights until next year because rival Nissan is a domestic sponsor of the 2016 Olympics in Rio de Janeiro in a deal worth $270 million.

NFL One of sport’s most lucrative sponsorship associations was prolonged in November as Anheuser-Busch InBev, the world’s largest brewer and parent company of the Budweiser brand, signed up until after the 2022 Super Bowl.

The extension is worth more than $1.4 billion, a 15-per-cent

SPONSORSHIP

TOP 5 SPONSORSHIP DEALS IN 2015

1. Toyota’s eight-year, ¥100bn deal to become an IOC TOP sponsor from 2017

2. NFL extends its partnership with Anheuser-Busch by six years in a $1.4bn agreement

3. The $1bn deal under which Nike will take over as the kit supplier of the NBA for eight years from 2017-18

4. PepsiCo to pay up to €70 million per year to become a new major sponsor of the Uefa Champions League until 2018

5. ATP signs its “biggest sponsorship deal,” worth at least $50 million, for Emirates to serve as presenting sponsor for fi ve years


Fifa, Blatter and Platini On 27 May, 2015 seven senior soccer offi cials, including two Fifa vice-presidents, were arrested on allegations of corruption in dawn raids at a Zurich hotel, in a dramatic development ahead of the federation’s annual Congress.

So began surely sport’s biggest-ever corruption scandal, the reverberations of which are set to continue for years to come.

By the end of the year, some 66 people, named or unnamed, had been implicated in a US Department of Justice probe, with the vast majority, likely over four-fi fths, originating from the Americas, refl ecting the fact that the scandal centred on bribes said to have been paid to offi cials in exchange for media and sponsorship rights to competitions in the region, including the Copa America, South America’s national teams competition.

SCANDALS AND DISASTERS

increase, according to US reports.Anheuser-Busch’s Bud Light remains

the brand partner of the NFL in USA and Canada, a status it has held since 2010, and Mexico, added in 2014.

NBA Nike strengthened its presence in USA’s major leagues in June as it clinched an eight-year deal to become the kit supplier of the NBA, starting with the 2017-18 season.

The contract was reported to be worth $1 billion, up from the $400 million over 11 years that arch-rival Adidas has been paying. The Nike logo will appear on the jerseys of all 30 NBA teams, a fi rst for the league.

Adidas has since concluded a seven-year agreement said to be worth nearly $500 million to replace subsidiary Reebok as the kit supplier of the 30 NHL teams from 2017-18.

UEFA CHAMPIONS LEAGUE The most signifi cant change in the sponsorship programme for the new three-year cycle of the Uefa Champions League has been the addition of soft drinks and snacks giant PepsiCo as a major partner.

PepsiCo sits alongside six other offi cial partners of the Champions League – Nissan, Gazprom, Heineken, MasterCard, PlayStation and UniCredit – estimated to be paying up to €70 million per year to be associated with the prestigious tournament.

ATP Emirates became the premier partner of the ATP in a fi ve-year deal confi rmed at the end of the 2015 ATP World Tour Finals in November. The Dubai-based carrier replaces Corona Extra in “the biggest sponsorship deal in the history of the ATP,” worth at least $10 million per year.

Chris Kermode, the ATP’s executive chairman and president, said that the governing body had attracted a record $160 million in sponsorship deals over the next fi ve years.

TOP 5 SCANDALS IN 2015

1. Arrest of Fifa offi cials in Zurich, Blatter and Platini banned

2. IAAF doping crisis

3. Vizer’s anti-IOC outburst and resignation

4. Hamburg pulls out of 2024 Olympic race

5. Tokyo 2020 stadium and logo design fi ascos

In December, Sepp Blatter, the outgoing Fifa president, and Michel Platini, the head of Uefa and a Fifa vice-president who still had aspirations for the top job in the global game, were banned for eight years from all soccer-related activities by the Fifa ethics committee over a “disloyal payment” of SFr2 million made by Blatter to Platini in 2011, allegedly for consultancy work carried out between 1999 and 2002, but for which there was no written contract.

The IAAF and Russian athleticsIn November an explosive report by an independent commission appointed by the World Anti-Doping Agency and chaired by Dick Pound, the outspoken (some would say bloody-minded) Canadian IOC member, accused Russian athletics of “state-supported” doping.

Even more seriously for the sport worldwide, it linked individuals with close ties to the IAAF to the allegations, and identifi ed “systemic failures” in the IAAF that prevented an “effective” anti-doping programme being put into action.

Coupled with the high-profi le claims of corruption at Fifa, Pound admitted that, in the current climate, major federations had a job on their hands to restore credibility, saying: “Public opinion is going to move to the view that all sport is corrupt.”

“Toyota is the 12th Olympic TOP partner, the fi rst in the mobility category, and the third from Japan, joining Panasonic and Bridgestone”


EVENTS

OLYMPICS Beijing will make history in 2022 when it becomes the fi rst city to stage both summer and winter Olympic Games. Despite concerns over a lack of snow, pollution and a dispersed venue plan, the Chinese capital saw off stiff competition from Almaty, Kazakhstan, winning by 44 votes to 40.

Beijing was no doubt aided by the fact that many International Olympic Committee members had visited the city for the 2008 summer games, with some of those venues to be used again in 2022.

The award of the games to Beijing drew to a close a diffi cult public relations process for the IOC, with Oslo, Stockholm and Krakow all having withdrawn from the race because of cost concerns, while Lviv in Ukraine pulled out on political grounds.

IAAF WORLD CHAMPIONSHIPS Eugene was handed the 2021 edition in April without the traditional bidding process, and almost a year later the decision remains clouded in

controversy and recrimination.Key to the award was a guarantee

from NBC, the broadcaster of the Olympic Games in USA, to televise the championships. Track and fi eld struggles for national exposure in USA in between editions of the Olympics and the IAAF had sought – but failed to receive – such a guarantee in relation to Eugene’s bid for the 2019 edition, which went to Doha.

But the decision caused anger in much of the athletics community, none more so than at the Swedish Athletics Federation, which wanted to stage the championships in Gothenburg.

French prosecutors subsequently launched an investigation into the IAAF decision to award Eugene the championships.

RYDER CUP Italy was the surprise choice to stage golf’s Ryder Cup for the fi rst time in 2022, defeating bids from Germany, Spain and Austria in the process. The Marco Simone Golf and Country Club in Guidonia is located just 17 kilometres from the centre of Rome, and the decision highlighted the importance that the European Tour now places on staging the prestigious Ryder Cup near major cities in preference to famous, yet more remote, golf courses.

The 2018 Ryder Cup will be staged at Le Golf National on the outskirts of Paris.

TOP 5 EVENTS DEALS IN 2015

1. Beijing beats Almaty in bid to host 2022 Olympic Games

2. Eugene controversially awarded 2021 IAAF World Championships unopposed

3. Rome wins four-way battle to land 2022 Ryder Cup

4. Durban makes history as fi rst Africa host of Commonwealth Games in 2022

5. Olympic capital Lausanne thrashes Brasov in 2020 winter Youth Olympic Games race


STAY UPDATED. DAILY INDUSTRY NEWS www.sportcal.com/news

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Vizer Marius Vizer resigned as president of SportAccord and from his position on the International Olympic Committee’s co-ordination commission for the 2020 Olympics in Tokyo after taking on the IOC and losing in a speech regarded by most astonished observers as suicidal at the SportAccord convention in Sochi.

In the speech Vizer called the IOC system "expired, outdated, wrong, unfair and not at all transparent” and questioned the viability of IOC president Thomas Bach’s Agenda 2020 reform programme.

The attack alienated many of the international federations that Vizer purported to represent as SportAccord president (some of which rely for a large part of their funding on the IOC), and led to mass resignations and suspensions by international federations of their SportAccord memberships. It also led to Lima in Peru quitting as host of the SportAccord World Combat Games in 2017.

Hamburg 2024In November, Hamburg sensationally dropped out of the race to host the 2024 Olympics after a small majority of residents of the city and of Kiel, proposed host of the sailing

competition at the games, voted against proceeding with the bid in a referendum.

An editorial in the Frankfurter Allgemeine Zeitung, was brutal in its assessment, claiming that “The revulsion and distrust of sport are focusing on the organisation with the rings, the billion-[dollar] business, IOC,” and calling the result “a slap in the face” for the IOC’s Bach, who is himself German.

Tokyo 2020 The organising committee for the 2020 Olympics became, perhaps a little unfairly, the object of ridicule when, in quick succession, plans for a new national stadium that will act as the main stadium for the games were scrapped after costs ballooned, and Tokyo 2020 was forced to ditch its own logo amid plagiarism claims from the designer of a logo for a Belgian theatre.

Although a new, cheaper stadium design was chosen and a competition launched to fi nd a new logo, the stadium issue cannot be said to have been fully resolved, amid rumblings about possible legal action by the original spurned designer, the powerful and world-renowned 'starchitect' Zaha Hadid.

The 2022 Ryder Cup forms part of what Rome hopes will be a “golden cycle” of sports events in the capital, including four matches at European soccer’s Euro 2020 already guaranteed, and bids having been submitted for the 2023 Rugby World Cup and 2024 Olympic Games.

COMMONWEALTH GAMES To put a positive spin on it, the Commonwealth Games will break new ground in 2022, heading to the continent of Africa for the fi rst time. Yet in truth the Commonwealth Games Federation had no option but to select Durban, the only bidder, after Edmonton in Canada pulled out of the race in early 2015.

It was a familiar story, with Manchester (2002) and Melbourne (2006) also having been unopposed in the bidding, while it was a two-horse race in 2010, 2014 and 2018.

The struggle to attract bidders is an issue that new CGF president Louise Martin is addressing head on. Elected in September, when Durban was rubber-stamped as host of the 2022 games, she has vowed to empower smaller Commonwealth nations to bid for the games, by ensuring that “the facilities and the events on the sports programme are not going to be cost-prohibitive.”

YOUTH OLYMPIC GAMES The result of the 2020 winter Youth Olympics host city vote was emphatic: Lausanne 71, Brasov 10.

The outcome was never in doubt with the Romanian city unable to overcome the familiarity and effi ciency of the Swiss city’s bid.

The Youth Olympics have plenty of critics – those who question the need and value of the initiative introduced by former IOC president Jacques Rogge – yet having the winter edition in the ‘Olympic capital’ will surely help boost its profi le.

It will also mark Switzerland’s return to hosting an Olympics (St Moritz staged the 1928 and 1948 winter games), and re-engaging the Swiss public with the IOC in 2020 could pave the way for a full winter Olympics bid over the next decade.

30 Media Agencies

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TYING DOWN CASEY WASSERMAN IS NO EASY TASK. After all, he counts 1,500 of the world’s top sportsmen and

women as clients of his Wasserman Media Group, the sports and media company that has enjoyed exponential growth since he founded it in 2002.

If that isn’t enough, he offers his advice and expertise as a board member of numerous influential companies, and plays an active humanitarian role with the Wasserman Foundation.

Casey Wasserman: sports agent, businessman, philanthropist. And for the next 18 months, you can add bid leader to the business card.

Wasserman, Los Angeles born and bred, is chairing the bid to bring the Olympic Games back to his city in 2024. And, while sports agents are renowned for being hard negotiators, this was not the case with Wasserman when it came to LA2024.

“For me it was a pretty easy decision,” he tells

Casey Wasserman wants to add the 2024 Olympic Games to an impressive list of career achievements. Jonathan Rest caught up with him to discuss the LA24 bid, growing up in Los Angeles and the changing face of the agency business in USA and Europe

Sportcal Insight over breakfast (omelette and bacon – extra crispy – for the record) at a five-star London hotel.

“I love, was born and raised, and made my life and career in Los Angeles. I love the city. I’m very passionate about LA and a big believer in the future of Los Angeles. The Olympics were an important part of my childhood. The opportunity to take my skills and relationships, obviously our amazing mayor and his leadership, and put those together to do something that is frankly a once in a lifetime opportunity was really special. I was more than happy to jump in.”

Dealing with multi-million sports stars on a daily basis – some 20 per cent of NBA basketball players are on WMG’s books – Wasserman is arguably the most powerful figure in Californian sport and one of the most well-known figures in the industry across USA.

Now the man who counts the Clintons among his close friends (Tony Blair is an acquaintance) is playing the role of global diplomat, regularly pressing the flesh with International Olympic Committee members.

Sportcal Insight first met Wasserman at a meeting of the Olympic movement in Washington DC in late October, 2015. He spent the week alongside Los Angeles mayor Eric Garcetti meeting with key IOC officials – not with the intention of making an overt LA2024 sales pitch, but just to listen to their demands and concerns.

The agent and the City of Angels

32 Media Agencies

The Garcetti-Wasserman politician-sports agent double-act made for compelling viewing.

So is the-grey suited world of the Olympic movement one the tanned, good-looking 41-year-old is feeling comfortable in?

“Our business at WMG is a lot broader than just sports stars,” he says. “I understand the business and the language of sport, and I feel very comfortable, at least so far, being in the movement.

“This is about a lot of listening and learning, as opposed to a lot of talking. It’s hard to listen with your mouth open. It’s important. This is the world they live in, they have much more experience than we do, and all we can do from that is benefit and learn.

“This is about connecting with and earning respect and trust individually over a period of time. That is not a process you outsource. That is a process you own.”

BUILDING RELATIONSHIPSThe importance of making and retaining relationships is something that was imposed on Wasserman from a young age by his grandfather Lew, fondly dubbed the Last Mogul of Hollywood.Wasserman senior’s influence on his grandson’s life cannot be overstated. Lew played the role of surrogate father to Casey Myers – he later changed his name – following the breakdown of his only daughter’s marriage.

Wasserman is widely considered, even in

tight-knit LA circles, a private person, but while he noticeably perks up when pressed on WMG’s future, or the wider sports industry sector, he doesn’t shy away from personal questions about issues that helped shape his life and career.

Of his grandfather’s impact, Wasserman says fondly: “He was, long before I was, keenly aware that I wasn’t going to have a relationship with my father and made a very conscious decision to make a commitment to play that role in my life, and not to play that role in my life some of the time, but all of the time.

“It wasn’t about once a week. It was every day, all day commitment he made for the rest of his life. And that without question was the most incredible thing he did for me. That parental influence is super important.

“Having said that he also happened to be an unbelievably successful businessman and so to be able to have a father figure, a mentor and a friend be such an important part of my life every day for the first 24 years of my life was pretty extraordinary.”

Lew died in 2002, the same year that WMG was formed. The company grew with each new sponsorship deal signed and each new sportsman on the books.

Cynics have suggested that the change of surname to reflect his influential grandfather’s served to open doors for Wasserman junior, but the response is quick, unequivocal: “I waited until I

Above: Wasserman launches the LA Olympics bid at Annenberg Beach House last September


was 18 to change my name because you don’t need parental consent when you’re 18,” he says. “I probably saw my father 20 times in my life. People can be as cynical as they want but there’s not a human being who knew me and my grandfather that didn’t know he was my grandfather, no matter what my name was.”

WMG is now a powerhouse in the sports and entertainment industry, covering athlete management (it is the largest soccer players representation agency in the world), media rights, sponsorship and consultancy.

PERSONAL TERMSSo did the Wasserman name bring it with added pressure? “There’s nothing I’m more proud of than being his grandson but that is not who I am,” Wasserman says. “Hopefully the work I have done has proven that I am capable of doing my own thing, on my own terms, based on my own work.”

That work has been relentless.Last year alone, WMG was active in 15 countries around the globe, with over 1,885 event days, and negotiated over 150 deals in 53 international markets.

In November 2014, it brokered the largest contract in the history of American sports for Giancarlo Stanton, as the slugging outfielder signed a 13-year, $325-million contract with Major League Baseball’s Miami Marlins.

Seven months later, WMG negotiated the largest contract in NBA history for its client Anthony Davis: $145 million over five years to stay with the New Orleans Pelicans, to be exact.

There’s been success in golf, too, with Australian Jason Day winning his first major, the PGA Championship at Whistling Straits in August.

The plaudits, of course, do not go to Wasserman alone, but he has created a structure in a relatively short timeframe that has enabled his agents to be among the most-revered in world sport. How?

“Part of being a CEO is managing an organisation and managing people. We have 600 people. My job is to identify the most talented, most capable people and managing the businesses we have. I think we have that. Our ability to recruit, retain is based on our culture and our environment and I’m very proud of our track record in that.

“Being a CEO is much more about identifying great people and giving them the opportunity and to create a culture. You can’t be the CEO and remove yourself from the details though. My job is to be a resource, whether that is for good or challenges, and at any time a client, whether that is an athlete or a brand, needs me, I’m available, and if they don’t need me our people are super-talented and more than capable.”

As with all entrepreneurs, the Wasserman CV features some low points. His Los Angeles Avengers franchise pulled out of the Arena Football League, the US indoor American football league, in 2009. There was also a failed project to build an NFL stadium in Los Angeles, despite brokering a $700-million naming rights deal with Farmers Insurance.

For Wasserman, “failure is a part of life.” He continues: “If you are not failing, you are not trying. I don’t spend a lot of time worrying about the past. I’m much more focused on what we are doing

today and what we are doing in the future.”

That focus is now very much on growth.

“Our business will continue to grow because our people have attracted incredible clients and we need to be able to continue to serve those clients well. The sports business has been fortunate in the last 10 years, and I think that will continue.

“That does not mean there won’t be ups and downs, that’s in every industry, but I think most people would trade places with the sports industry any day of the week given the challenges they face in their industries.”

GLOBAL PERSPECTIVEIn November 2014 WMG strengthened its European soccer player representation business with the acquisition of Dutch agency Sport-Promotion – which represents a range of Netherlands international players, such as Daryl Janmaat, Marco van Ginkel and Daley Blind – from Rob Jansen, a respected agent who is also president of the European Football Agents Associations.

It is a model that Wasserman is keen to replicate. “We pride ourselves on sitting in Los Angeles and not being myopic about the world,” he says. “Without question football is the biggest sport in the world. I’m proud of the fact that we are by far the biggest football agent in the world, and yet you can’t do that just by sitting in Los Angeles, and you also can’t do that just by sitting in London.

“Certainly you can manage the business out of London, but to be the biggest soccer agent in the Netherlands, we had to go buy Robbie Jansen’s business and his leadership and position in the marketplace.

“If there are opportunities that are similar to that in other markets, we will absolutely pursue them. It is a very important part of our business and a very meaningful opportunity.”

Wasserman is fiercely defensive of his team and his industry. While agents’ work is sometimes glamorised in USA, where they are regarded as vital cogs in the workings of the sports industry, they are often viewed with suspicion in Europe, principally in soccer, for instigating player transfers or lucrative contract renewals. They are, in many

Top: Giancarlo Stanton of the Miami Marlins in action. Above: The New Orleans Pelicans’ Anthony Davis slam dunks

34 AgenciesMedia

people’s eyes, ‘Mr 10 per cent’.The perception irks Wasserman. The tone of

voice is calm and the pleasantries remain, but the message is direct: “The agents in the UK at the core of our business were part of SFX [the major soccer agency]. SFX was a publicly-traded company, there was a high level of transparency in that kind of business, and I couldn’t be more proud of our football agents here. They are extraordinary talents doing business the right way. Every business has people who do things the wrong way, and I think the only thing you can do is judge people on what they do.

“Our football agents act with honesty and transparency around the world. Bad actors deserve bad reputations, and that is not unique to being a football agent.”

The sports agency business has always been a competitive one, but you get the sense that Wasserman does not spend time worrying about others (if he could even find the time in the day to do so).

BUSINESS FOCUSHe firmly believes that there is only one thing you can control in your life - your own effort. “There’s always going to be lots of competitors,” he says. “We are very focused on our business and how we do our job and if we do those two things well, we’ll continue to be successful, and if we don’t, it doesn’t matter.

“Those two things, frankly, aren’t particularly dependent on our competitors, while at the same time a good competitive marketplace makes everybody better.”

Wasserman expects the sponsorship industry in USA to increase in competitiveness over the next decade as major sports leagues move ever closer to allowing brands to advertise on team jerseys.

Jersey sponsorship has been a successful revenue-driver for European sports teams, but Wasserman warns it is not a one-size-fits-all model that can be easily replicated in North America, where there is an emphasis on equality across all franchises.

He explains: “The challenge is how do you do that in a way that creates value for sponsors, how do you do that in a way that is fair, for example in the NBA, for all 30 teams. It is quite complicated, more complicated than people would probably appreciate. Is it sold locally or nationally? Who owns what inventory? How do you handle pricing competition among teams?

“It is a challenge, but I tell you, in 10 years, I’d be surprised if most professional sports leagues in the US didn’t have some sort of commercial inventory on their uniforms other than the manufacturer.”

While Europe has the upper hand on shirt sponsorship, it has been left some way behind USA when it comes to stadium naming rights deals.

Wasserman is quick to dismiss suggestions that sports fans in Europe are more opposed to commercialisation than their brethren in USA, where there is a long history in franchise relocation.

He interjects: “I don’t think Europe has a reluctance to name stadiums; football teams have car companies on their shirts, which in America is sacrilege. The issue is building a stadium in Europe where development and construction is hard, and facilities have some historic relevance.

“We were involved when they built the Emirates [Arsenal’s stadium in London]. They had to move a

waste recycling plant to build a stadium. Look at what is going on in some of these other cities in Europe, where there are big soccer clubs, to build a new stadium, it’s impossible. I mean how long have they been talking about building a new stadium in Milan for those teams, how long have they been talking about a new Stamford Bridge [for Chelsea]?

“It just doesn’t happen easily. That speaks to the market. It is a hard thing to do in Europe. In the US, development and innovation and those things happen in a different pace with stadiums, so when you build a new stadium you put a new name on it.

“I don’t think there is reluctance in Europe to name stadiums. I just think building stadiums in Europe is really hard, even for things as meaningful as soccer clubs.”

Away from the sports field, Wasserman is a board director of numerous California-headquartered organisations, most recently joining Activision Blizzard, one of the world’s largest gaming companies, which has given him first-hand insight into the rapidly-growing eSports sector.

With tournament earnings exceeding those on offer at tennis and golf majors, will the gamer – once the archetypal spotty teenager in his bedroom – need traditional agency representation?

“I think the mistake is to apply the same economic analysis to eSports as you would to maybe a stick and ball sport,” says Wasserman. “Truthfully, the approach and economics of stick and ball sports are different to individual sports, each individual sport is totally different, so you can’t apply those same opportunities.”

HOMETOWN BOYWhile much of his life is spent in airport lounges travelling to his global properties, Wasserman’s loyalty lies in Los Angeles and in contributing to the prosperity of his hometown.

The Wasserman Foundation, set up by grandparents Lew and Edie in 1952, has poured tens of millions of dollars into local causes, covering the education, arts and health sectors. It also funds programmes for the Los Angeles Fire Department and Los Angeles Police.

For a UCLA graduate (B.A in political science),

Top: Wasserman with Bill Clinton. Above: Lew Wasserman, Casey’s grandfather and mentor


ONLINE: Breaking news on media at www.sportcal.com/media

who lives in luxurious Beverley Hills, the philanthropic work is all about giving something back to the community.

Wasserman calls the foundation the “most demonstrable legacy of my grandparent’s life.”

He continues: “Giving back in my family was never an optional thing; it was an important and integral part of my life from a very young age. And the ability to be a steward of that as long as I’m alive is one of my greatest responsibilities.

“Our work is mostly focused in Los Angeles and being able to help the community I care about in a very meaningful way is a big responsibility, and I take it very seriously.”

LEAVING A LEGACYLeaving his own legacy is not something Wasserman is overly concerned about at this stage in life. Taking on the family business is certainly not being pushed on his young son and daughter.

“I was raised by my grandfather who had a no-nepotism policy. His goal for me was always to make my own path, even if it wasn’t the same industry as him, and I want my kids to do the same. If they want to work in the sports industry they are going to have to earn their way. But they should do what they are passionate about.

“The most important thing in life is to find your passion and pursue it with everything you have. Just because I’m passionate about the business of sport doesn’t mean my kids should be.”

Until September 2017, Wasserman will focus his passions on landing the 2024 Olympic Games for his city. As a 10-year-old at the 1984 Olympic Games in Los Angeles, Wasserman was the envy of his school friends. With his grandfather as one of the co-chairs of those games, Wasserman had the chance to carry the Olympic torch, before being “quite active” as a spectator.

How active is ‘quite active’? “The opening ceremony, track and field finals, Mary-Lou Retton winning [five medals in gymnastics], Stefan Edberg in the tennis, baseball at Dodgers stadium.

“It was a magical time in our city and I was lucky to be there as a 10-year-old.”

So for the successful sports agent, businessman and philanthropist, where would ‘Olympics bid winner’ rank in Wasserman’s list of achievements?

“The chance to do something that is truly special and rare in our world is an exciting thing to do,” he says. “I’m not big on ranking things but it would certainly be a massive achievement in my life.”

And when the process is over, will there be a well-earned rest for the self-confessed “home boy” of Los Angeles?

“Well before this Olympic bid, I was training for a half Ironman,” he reflects. “This [LA2024] sort of got in the way a little bit!”

The most important thing in life is to find your passion and to pursue it with everything you have”

“

36 Events Hospitality

Corporate hospitality at sporting events has long been considered a slightly murky concept, with media coverage

tending to take the form of articles lazily shouting, ‘look at all those empty seats!’ or decrying what former soccer hard man Roy Keane famously described as the ‘prawn sandwich brigade’.

What Keane was referring to in that memorable phrase was the notion that certain sections of a crowd attending a Manchester United match might, possibly, be more interested in the food and drink on offer than the football. But is that actually the case? Is there any evidence that spectators availing themselves of the hospitality are actually any less committed to the action on the pitch, court, turf or track than any others?

Jonathan Cocke, senior vice-president at IMG, who wrote a seminal article in June 2012, shortly before the London Olympics, entitled Hospitality Works Hard for your Business, tells Sportcal Insight: “You need to pick the right event for the right person. You need to make it as enjoyable and fruitful for the client as possible. The more interested they are, the more invested they are going to be in the relationship.”

Neil Cunningham, managing director of hospitality specialists MatchPoint, agrees, saying. “If you ask the right guy to the wrong event, or into the wrong environment, that can be counter-productive; it can even become a negative. For

Sports hospitality is just a case of catering for the ‘prawn sandwich brigade’ – isn’t it? Well, there’s a bit more to it than that, Rob Clark discovers

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37www.sportcal.com Sportcal InsightFebruary/March 2016

emotions is a good element to add,” says Cocke. “It helps to create a relationship which remote contact does not. As human beings we enjoy that level of dialogue and that in turn makes it a more productive relationship.”

“Trust is key to business relationships,” says Chris Morris of Twickenham Experience Ltd, which arranges hospitality at the home of English rugby. “We cannot be solely dependent on electronic communication to deliver and maintain this.”

“Trust is a big thing,” agrees McKenna. “Am I trusted to deliver what I say I am going to? By understanding the business and the person, I can deliver what they want. For example, there are something like 10 different hospitality options at Twickenham and it’s my personal experience which enables me to choose the right one, to decide what is going to suit any given client.”

A GROWN-UP BUSINESSIn recessionary times, in particular, businesses are more likely to want a personal touch: they want to be made to feel special and, more importantly, they want their clients and/or staff to be made to feel special too.

“Today’s business is much more sophisticated and effective,” says Neil MacLaurin, former managing director of Keith Prowse. “We invest when appropriate, we have excellent technology and information flow, the management information we possess is far more enhanced and we work off objective data. Today’s approach is very professional and well planned.”

“Although we believe that hospitality is an excellent business tool, which can be very effective, we understand that it is an easy thing for an MD to put a red line through,” says Cocke.

“Businesses realise that if they are not inviting their best clients, a competitor probably will be,” says Tony Barnard, formerly of Prestige Ticketing (now Sports Travel & Hospitality Group (STH)), a joint venture between Sodexo (the French-owned food services and facilities management company) and the Mike Burton Group, which was the sole commercial rights holder for corporate hospitality at the 2012 London Olympics.

STH is also an official provider of hospitality for Euro 2016, and its dedicated website for the competition this summer in France says that both the packages available will offer three hours of pre-match hospitality and 90 minutes after: plenty of time for that relationship building. “Corporate hospitality has become a legitimate and integrated part of any modern consumer management programme,” says Barnard. “In times of economic uncertainty and turmoil it is vitally important to cementing key business relationships.”

“Does hospitality still have a business benefit?” asks McKenna, rhetorically. “The short answer is ‘yes’ or firms wouldn’t be doing it.”

Opposite page: Service at Bayern Munich’s executive lounge. Above, from top: Jonathan Cocke; hospitality at London’s Wembley Stadium; Former England cricket star Andrew Flintoff samples the hospitality at Lord’s

example, golf tends to be quite low-key and relaxed – you get a bit of a walk and a bit of a chat. A cup final on the other hand is a more intense atmosphere. You have to know your customer.”

The whole business of hospitality at sporting events has become both more competitive and more demanding: it’s no longer a ‘jolly’ to suit a chairman or CEO’s personal proclivities as it might have been, on occasion, in the past. “Classic events get repeat business because givers and receivers both enjoy those types of events,” says Cocke. “But people are looking for new activities and experiences as well, particularly ones with that ‘money-can’t-buy’ element such as walking on the pitch before an international. Those types of add-ons are of great value because by definition you can’t do that many of them.”

“People want to be at the big events because most people can’t be,” is how Cunningham puts it.

“We actually find the most expensive packages are the most popular,” says Richard McKenna of hospitality group TN4. “Particularly ones with celebrity guests. Even CEOs are like small children meeting these top sportsmen and women – well we all are, aren’t we? And that adds value.”

BUILDING RELATIONSHIPSFrom a business perspective, however, the sine qua non of sporting hospitality remains the opportunity for undivided ‘face time’ with people with whom companies wish to build, or maintain, relationships. Unlike a business meeting, which will almost certainly be time-limited and conducted in what might be a more pressurised environment, sporting hospitality offers a setting which will almost certainly be more relaxed, and could be inspirational.

Well-known hospitality provider Keith Prowse produced an infographic in 2012 which indicated that 62 per cent of respondents felt corporate hospitality engages the client (as opposed to 38 per cent who felt a meeting did the same), while a staggering 94 per cent agreed that ‘downtime with clients builds for stronger relationships’.

“These days we all ping off emails all the time, but interaction in an environment which sparks

“Corporate hospitality has become a legitimate and integrated part of any modern consumer management programme. In times of economic uncertainty and turmoil it is vitally important to cementing key business relationships”

38 Events Hospitality

According to numbers crunched by research specialists Key Note the total value of the UK corporate hospitality market (including events, dinners, attendance at sporting events) fell by 2.5 per cent between 2007 and 2011. However that still represents a business worth in excess of £1 billion ($1.4 billion) in the UK alone. Furthermore, all the indications are that the market has bounced back, as it bathes in the halo effect of London 2012; last year’s Rugby World Cup was another huge success, off the pitch at least, and confidence has returned to the industry. Although held in the UK, both of those events are pan-global competitions which will next be held in Brazil and Japan respectively.

“The value of products is going up,” says McKenna. “Companies have a huge amount invested in these relationships, so what they spend on corporate hospitality is loose change to them. OK, so a company might spend, say, £27,000 for four days at Monaco, but against

the size of the business it secures…” McKenna doesn’t need to finish that sentence, it’s easy to do the maths, as they say.

Formula 1 is a particular favourite for overseas trips, not least because as Sir Frank Williams once said: “For six and a half days a week, F1 is a business, then on Sunday afternoons it becomes a sport.” Which means that a two- or

three-day trip affords plenty of time for those all-important business conversations.

THE NEW PARADIGMTEL’s Morris is quick to point out that sporting hospitality means different things to different people, which is why there are such diverse offerings on the table. “Sport hospitality caters for many options,” he says, “giving businesses the flexibility to create a bespoke experience, dialling up hospitality or offering a more informal experience, depending on who is being entertained and what is appropriate.”

The younger generation, especially, are leaning towards a more informal style of day out. They want an exclusive experience, but they are generally less keen on a sit-down, three-course meal, for example. MacLaurin says: “We have addressed a growing trend for less formal dining and created menus that quite literally allow guests to set their own pace.”

MatchPoint was one of the first companies to notice this trend, introducing MyCricketBox at the Oval cricket ground in London and RugbyDen for the 2013 British and Irish Lions rugby tour to Australia, which offered beer and wine, and food, but at clients’ seats at the Oval and in a more relaxed, club-style atmosphere at the rugby. Cunningham says the cost is about half that of traditional hospitality and is an area he feels will become increasingly popular.

“People expect the food, drink and service to be very good,” says McKenna, “but of course the result of the match or race can influence people’s comments about the food and drink!”

“There is an expectation that the food and drink are going to be of a high quality,” agrees Cocke. “But if what you are trying to do is impress someone with great food, we’d be recommending that you take them to a Michelin-starred restaurant rather than a sporting event. At a sporting event, the sport should be a hero – and it generally is.”

OFFICIAL STAMP OF APPROVALAnother challenge with which sports hospitality companies have had to cope over the years is the proliferation of unofficial packages and offerings. There is a danger that to the man on the street, hospitality is hospitality and they don’t pay all that much attention to who is providing it. That would be a massive mistake, according to Cocke. “Official sources of hospitality are heavily invested in the sports in a way that unofficial providers aren’t,” he explains. “Official providers like us put money back into the game in a way that unofficial ones do not. During the London Olympics it was a criminal offence to sell on tickets at above face value which helped reduce the scope of the unofficial hospitality market, and that worked well.”

“Official hospitality is endorsed by the relevant governing body and they care about the customer experience and satisfaction,” says Cunningham. “The quality of the day out is important to them. Plus, yes, the premium you pay official suppliers goes back into the game. A corporate hospitality strategy should never be just about the money, and it should be long-term. Companies trust us to run an event for them so they can relax and spend time with their guests to the benefit of their business.”

Cocke concludes: “Corporate hospitality should be a well-thought-out, strategic investment which forms part of your marketing strategy. It’s a good business tool and can be a very effective part of the marketing mix, alongside advertising and more direct forms of marketing. Used in a targeted and professional way the rewards can far outweigh the costs of the event.”

The many flavours of hospitality at, from top: one of the Euro 2016 stadiums, the Monaco Grand Prix and at the Rio 2016 Olympic Games

“If what you are trying to do is impress someone with great food, we’d be recommending that you take them to a Michelin-starred restaurant rather than a sporting event. At a sporting event, the sport should be a hero – and it generally is”

2016 WORLD UNIVERSITY

INTERNATIONAL UNIVERSITY SPORTS FEDERATION

ATHLETES

SPORTS

CHAMPIONSHIPS

34

COUNTRIES25

8,000

MORE DETAILS CONTACT championships@fi su.net WWW.FISU.NET

EXPECTED VOLUNTEERS4,000

SEE U THERE!

40 Federations Keith Pelley

New to golf and new to the UK, Keith Pelley could be forgiven for having wanted a few months to familiarise himself with his new

surroundings when he parked up at European Tour HQ at the plush Wentworth Golf Course on the south-western fringes of London for the first time on 3 August 2015.

Yet within a month the chief executive had strengthened ties with the Asian Tour – seen by many as a precursor to a full merger – controversially given Rory McIlroy special dispensation to play in the Tour’s Final Series even though he’d failed to play the minimum number of events, and upset some by refusing to sanction the 2016 edition of the WGC-Bridgestone Invitational in the USA, one of four prestigious World Golf Championships events, because of a clash with the European Tour’s Open de France.

Quite a baptism of fire for the Canadian, who joined the European Tour from Rogers Media, where he was president of the group whose interests include television channels, radio stations, publications and digital properties.

Reflecting on those frantic first few months, Pelley, who replaced the long-serving George O’Grady, tells Sportcal Insight: “I had to become operational almost from day one with the Asian Tour, the Rory decision, the Bridgestone announcement. Often you get a chance as a CEO to sit back and reflect, create a vision and then move into execution mode. But there were some issues that were pressing and unfortunately they

Keith Pelley is now six months into his tenure as chief executive of the European Tour. Jonathan Rest met him to discuss empowering players, his plans to rival USA’s PGA Tour and what golf must do to entice millennials

Right: Keith Pelley talks in the media centre during last year’s BMW PGA Championships at Wentworth

Right: Pelley in action during the Pro-Am prior to the start of the Sky Sports-televised BMW PGA Championships

Right: With European Senior Tour Order of Merit winner Colin Montgomerie (left); Race to Dubai winner Rory McIlroy (centre); and signing the 2022 Ryder Cup agreement with Italian Golf Federation President Franco Chimenti (right)

Into the swing

couldn’t wait until I’d had a chance to listen, learn and go through the process of understanding the entire facets of the business.

“I have never worked in golf before. I had never worked extensively in England before moving my family over here. It was quite an eye-opener.

“Usually you’d like to talk to as many people as you possibly can before you start to formulate opinions, but opinions were being formed very quickly, based on necessity.”

PROMOTING EUROPEAt the top of his to-do list is stopping Europe’s top players from defecting to the more lucrative PGA Tour. Pelley is reluctant to use the word ‘challenge’ when discussing the PGA Tour, instead choosing to focus on the “opportunity of creating a viable alternative.”

The 52-year-old says: “The greatest asset that we have is our players, and our players have an unwavering passion for the European Tour and its will to succeed. There is no question that there has been a discussion about the migration of players to the US. We are committed to building the organisation so that our players do not have to go to America just to make money, because a lot of our players want to play here, they love playing here. Even a lot of the American players love it. When you have a conversation with Patrick Reed [the top 10-ranked American] and see how much he enjoys playing here, the diversity we have is one of our greatest strengths. We have 45 tournaments in 26 countries in four regions of the world this year. We are the global golf tour, undeniably.”

In a bid to keep the players on board, Pelley has driven development of a ‘players-first’ philosophy. Membership rules have been rewritten to ease the burden on the tour’s best players – the minimum number of events required to retain Tour status is now down from 13 to five, excluding majors and WGC events.

Pelley explains: “We have an open line of communication with all our players. I have met with as many as I possibly could over the last few months. First and foremost, I’m totally comfortable with the fact that they are global players, and it’s OK for them to play on two tours. But I want them to play as much as possible over here, so that means I have to provide a viable alternative, which means I’m going to have to increase the prize funds, understand their needs and put them first.

“We are a members’ organisation. I work for the players and from a cultural perspective that is what our entire organisation has to understand. They are the recipe for success, and there is no question we are going to have to raise the prize funds.”

Pelley pulled no punches in November when discussing the BMW PGA Championship at Wentworth in this context: “A lot of people talk about Wentworth as being a flagship event. Wentworth [prize money] is €5.1 million. The other event in the US that week is €6.1 million. That’s unacceptable. Wentworth needs to be $8 to $10

41Sportcal Insightwww.sportcal.com February/March 2016G

ETT

Y

Top: Steve Nuttall, senior director, YouTube, EMEA. Above: Javier Tebas, the charismatic LaLiga president responsible for making Spanish football available on YouTube

42 Federations Keith Pelley

million… I don’t see it as our flagship event.”The chief executive is confident that the

commercial interest is there to fund his growth plans, so long as the sales pitch is tweaked.

“I believe that we have significant opportunity in the sponsorship world. Based on the fact that we are the global golf tour, we need to align ourselves with global brands, we need to be able to create value propositions and we need to be able to have a consumer focus. We need to change from being a business-to-business organisation to being a business-to-consumer organisation.

“It’s very important that there is a significant difference between advertising sponsorship and partnerships. I want to move the Tour towards the partnership, which means you need to understand all aspects of the business’s needs.

“Gone are the days when companies just put this logo on and hoped people buy their product. There has to be an analytical look at sponsorship.”

To lead that new sponsorship drive, one of Pelley’s early decisions was to task Odgers Berndtson, the same London-based headhunters that enticed him from Rogers Media, with recruiting a first group commercial director, a position he hoped to have filled by the end of the first quarter of 2016.

There have been high-profile exits too, with popular head of television, digital media and technology Mark Lichtenhein, who spent 16 years at the organisation, and Scott Kelly, the long-

standing group marketing director, who joined the Tour in 1989, both leaving shortly after Pelley’s arrival. Pelley believes “fresh eyes” are needed to take the Tour to the next level.

BUILDING ON THE LEGACY“Ken Schofield [European Tour executive director from 1975 to 2004] did a marvellous job for 29 years. George [O’Grady] built the tour as well. I’ll try to build on their legacies, but I’m looking at it differently. Often when a CEO comes in, they restructure, they put their own people in place. That is what we are doing on the commercial director side.

“We need to look at it from a global perspective and I believe the skillsets we need right now are going to help us significantly as we build not only the brand, but the Tour going forward.”

Having worked closely with franchises and athletes from Major League Baseball, American football’s National Football League and ice hockey’s National Hockey League, Pelley understands the importance of brand awareness; so much so that he has engaged international brand consultancy Landor to define the European Tour’s future.

With events staged in Europe, Asia, Africa and Australasia, does the ‘European Tour’ brand even make sense anymore? Is a name change in order?

Nothing, Pelley says, is off the table in this period of evaluation.

Right: Pelley describes his 13-year-old son Jason as “a great research group”


45THE NUMBER OF

TOURNAMENTS ON THE EUROPEAN TOUR IN 2016

5THE MINIMUM NUMBER OF EVENTS A GOLFER MUST PLAY TO RETAIN HIS MEMBERSHIP OF

THE TOUR IN 2016

26HOW MANY COUNTRIES THE EUROPEAN TOUR WILL VISIT THIS YEAR

$10mTHE AMOUNT OF PRIZE

MONEY PELLEY BELIEVES SHOULD BE ON OFFER

AT THE BMW PGA CHAMPIONSHIPS

He tells Sportcal Insight: “There are two schools of thought. We play in 26 countries in four continents of the world. When you look at our three biggest tournaments in terms of prize funds, they are South Africa, Turkey and Dubai, and none of them are in Europe. But on the other side, more than half of our events are in Europe, and 75 per cent of our members are European.

“I believe in brand, I believe the brand needs to fit the promise and I do believe that we need to re-energise our brand. We will see where that plays out over the coming months. We have definitely not in any way determined that the brand needs to change. Are we looking at it? Absolutely. Is it possible? Absolutely. But we are not doing anything without forensic analysis.”

Pelley also wants to work more closely with the Asian Tour. During a 16-year relationship between the two Tours, there have been 93 co-sanctioned events. There will be another five this year alone.

In August, the two tours unveiled a ‘joint vision’, including a union of their respective memberships, meaning that there will be further synergies and that a wider selection of players will be eligible to compete in their respective events.

While the tours described the announcement at the time as a “natural extension” of their existing partnership, the move prompted talk of a prospective merger, with joint calendar, management and headquarters.

Peley notes: “We felt that Asia was a pretty integral part of our growth plan and our global golf strategy. I’m optimistic they [the Asian Tour] will understand that the relationship we are trying to create here is incredibly positive, from a playing opportunity perspective as well as from a financial perspective.”

MEDIA FRIENDLY FOR THE MILLENNIALSWhen the European Tour announced Pelley’s appointment in April 2015, it stressed his knowledge of rights dealings, pointing to his involvement in orchestrating the largest sports rights contract in Canadian history, Rogers’ 12-year, C$5.2-billion (then $4.7-billion) multi-platform deal with the NHL in November 2013.

During his five years at Rogers, Pelley was credited with reinvigorating the media business for the digital age, and is now setting his sights on ensuring golf remains relevant as a media property.

He says: “I look at ourselves as being in the content entertainment business. Golf is our platform. I’m in the midst of evaluating all our TV deals. Television is changing dramatically based on the way people are consuming media. People want to watch what they want, when they want, how they want and on what device they want.

“The conversations I am having with all our broadcasters are really focused on the promotion and exposure of our products. We are into some long-term deals and hopefully by the time those deals end we’ll be a much stronger product and it

will be a different offering anyway based on the way the landscape has changed.”

With his media background Pelley knows what entices broadcasters. Golf, he argues, must not be afraid of experimenting with innovative formats, albeit not at the expense of tradition.

“There will always be the traditional 72-hole tournament as a key cornerstone of golf,” Pelley insists. “But what you see right now in sport is that everybody is trying some new different approaches because of people’s attention, or attention deficit you could call it. The need for faster entertainment products is what the millennials are thriving on.

“I have a great research group – my 13-year-old. I watch the way Jason and his friends consume sport and they’re seldom doing it on one device. It’s all about moving at a very, very fast pace, so we will experiment with different formats.”

Such experimentation could include six-hole or 36-hole tournaments and speed golf. Pelley continues: “We’ll try different things over the next number of years and see what resonates with consumers, because at the end of the day that is what it is all about, the consumers.

“If the players are playing a format that generates incredible excitement, especially for a younger demographic, that is going to be good for golf worldwide.”

Pelley also outlines his vision for future golf courses: a direct pathway back to the clubhouse every six holes. “Whether you want to play six holes or 12 holes or 18, you can. Six holes takes an hour and 15 minutes after work. It’s quick, it’s accessible.”

Speed, or lack of it, is something that grates with Pelley. Since taking the reins, he has spoken out regularly against slow play in golf, and insists that his is a widely-held view.

“Anything I say is not an opinion generated just from my thoughts,” Pelley notes. “It always comes from discussions with our members, and that is exactly where this came from. I always ask members two questions: what are the five things that made you determined to play the game; and what are the three to four things you want to see improved in our game. And when I ask the second question, often what comes to the top is slow play. We need to move it along quicker. We can’t play five-hour rounds.”

Quicker golf resonates with broadcasters too, Pelley argues.

“As far as broadcasters go, ratings are a form of currency,” he says. “So we are going to do as much as we possibly can to generate higher ratings for our product, which will generate higher revenue. If that means we need to move faster, be more graphically creative, or tweak the format, then that’s what we have to do.”

And where will all that position the European Tour by 2020?

“We’ll be a completely different tour from where we are today,” says Pelley decisively. “I have no doubts about that.”

sportelsportelasia.com

15-17 MARCH 2016

S INGAPORE

MEET THE ELITE

Directory 45Sportcal Insightwww.sportcal.com Index February/March 2016

STAY UPDATED. DAILY CALENDAR UPDATES www.sportcal.com/calendar

Sports calendar

Key information on the events, the people and the deals driving sports business, all in one easy reference section. For up-to-the-minute information, visit www.sportcal.com and subscribe to one of our packages.

CALENDAR 45 SPONSORSHIP 46 EVENTS 47 MEDIA DEALS 49 MARKET MOVES 51 CONFERENCES 53

DATE SPORT EVENT LOCATION TV DISTRIBUTOR ORGANISER

1-6 Archery 13th Indoor Archery World Championships 2016

Ankara, Turkey European Broadcasting Union;World Archery

Turkish Archery Federation

2-6 Track Cycling UCI Track World Championships 2016

London, England Infront Sports & Media British Cycling

5-6 Speed Skating

World Allround Speed Skating Championships 2016

Berlin, Germany European Broadcasting Union;International Skating Union

German Speed Skating Federation

8 MAR- 3 APR

Cricket ICC World Twenty20 2016

Various, India Star India;Star Middle East

Board of Control for Cricket in India

11-13 Short track speed skating

World Short Track Speed Skating Championships 2016

Seoul, Korea European Broadcasting Union;International Skating Union

Korean Skating Union

18-20 Athletics IAAF 16th World Indoor Athletics Championships 2016

Portland, USA Dentsu Inc;European Broadcasting Union;TV Media Sport

USA Track & Field

19-27 Curling Ford World Women's Curling Championship 2016

Swift Current, Canada

Infront Sports & Media Curling Canada

28 MAR- 3 APR

Figure Skating

World Figure Skating Championships 2016

Boston, USA European Broadcasting Union;International Skating Union

US Figure Skating

28 MAR- 4 APR

Ice Hockey IIHF World Women's Championship 2016

Kamloops, Canada

International Ice Hockey Federation

Hockey Canada

2-10 Curling World Men's Curling Championship 2016

Basel, Switzerland Infront Sports & Media Swiss Curling

7-10 Golf The Masters Tournament 2016

Augusta, USA Augusta National Golf Club Augusta National Golf Club

8-9 Synchronized Skating

World Synchronized Skating Championships 2016

Budapest, Hungry European Broadcasting Union;International Skating Union

Hungarian National Skating Federation

25-27 Fencing Fencing World Championships 2016 (Rio 2016 test event)

Rio de Janeiro, Brazil

International Fencing Federation

Brazil Fencing Federation

MA

RC

HJA

NU

AR

YA

PR

IL

Index

46 Index Sponsorship

SPORT EVENT/TEAM/ORGANISATION

SPONSOR CATEGORY TERRITORY PERIOD

BASKETBALL FIBA Beijing Enterprises Group

Beverages: Alcohol Global 2016-2019

BASKETBALL NBA Anheuser-Busch InBev

Beverages: Alcohol North America

2015-16 to 2018-19

CRICKET International Cricket Council

MRF Tyres Automotive: Tyres Global 2016-2019

CYCLING Tour de France Tissot Watches & Jewellery France 2016-2020

GOLF United States Golf Association

Deloitte Financial Services: Brokerage & Consulting

USA 2016 onwards

HANDBALL European Handball Championships

Engelbert Strauss Retail: Clothing Europe 2016-2018

MOTOR RACING Indianapolis 500 PennGrade Motor Oil

Automotive: Lubricants USA 2016-2018

MOTOR RACING McLaren Formula 1 Santander Financial Services: Banks Global 2016-2020

OLYMPICS Australian Olympic Committee

Optus Telecommunications Australia 2016-2026

PARALYMPICS Paralympic Games Coca-Cola Beverages: Soft Drinks Brazil 2016

RUGBY UNION World Rugby Puressentiel Personal Care: Cosmetics Global 2016-2019

RUGBY UNION Rugby Football Union Old Mutual Wealth

Financial Services England 2016-2019

RUGBY UNION Welsh Rugby Union Under Armour Apparel: Athletic Wales 2016-2025

RUGBY UNION British and Irish Lions Standard Life Financial Services: Insurance & Pensions

UK 2017

SOCCER European Championships

Hisense Household Appliances & Consumer Electronics

Global 2016

SOCCER English Football League Sky Bet Lottery & Gaming UK 2016-17 to 2018-19

SOCCER Premier League Nike Sports Equipment UK 2016-17 to 2018-19

TENNIS ATP World Tour Emirates Travel: Airline Global 2016-2020

Key sponsorship dealsCorporate

hospitality - not just prawn sandwiches,

p36

$50mThe outlay of Emirates

to become the new premier partner of the

ATP World Tour in a fi ve-year agreement

€400MExpected total

sponsorship revenues for Euro 2016 as programme

completed with 10th global partner Hisense

$5mReported value of the three-year deal under

which PennGrade Motor Oil became presenting

sponsor of Indianapolis 500

ONLINE: Up-to-the-minute information on 75,000 sponsorship deals and 15,000 brands at your fi ngertips at www.sportcal.com/sponsorship



February/March 2016

Key eventsChina’s

sporting portfolio comes

to the fore,p18

SPORT EVENT EVENT DATE WINNING BID BID AWARD DATE

ARCHERY 50th World Outdoor Target Championships

2019 s-Hertogenbosch, Netherlands

14 December

ATHLETICS IAAF World Race Walking Team Championships

2016 Rome, Italy 7 January

CURLING World Men’s Championship 2018 Las Vegas, USA 5 November

EQUESTRIAN Longines FEI World Cup Jumping Final 2018 Paris, France 11 November

FENCING Fencing World Championships 2018 Wuxi, China 21 November

FLOORBALL Floorball Men’s World Championships 2020 Finland 11 December

FLOORBALL Floorball Women’s World Championship 2019 Switzerland 11 December

GOLF Ryder Cup 2022 Italy 14 December

GYMNASTICS – ACROBATICS

FIG Acrobatic World Championships 2018 Antwerp, Belgium 8 December

GYMNASTICS – AEROBICS

FIG Aerobic Gymnastics World Championships

2016 Incheon, Korea 21 November

GYMNASTICS –RHYTHMIC

Rhythmic Gymnastics World Championships

2018 Sofi a, Bulgaria 8 December

HANDBALL Men’s World Handball Championships 2021 Egypt 6 November

HANDBALL Men’s World Handball Championships 2023 Poland & Sweden 6 November

MODERN PENTATHLON

UIPM Biathle and Triathle World Championships

2018 Hurghada, Egypt 9 November

VOLLEYBALL FIVB Men’s World Championships 2018 Bulgaria, Italy 9 December

BIDDING

AWARDED

4Nations that were

bidding for the Ryder Cup 2022 (Italy, Germany,

Spain and Austria)

8,000 Capacity of the Orleans Arena that will host the

World Men’s Curling Championship in 2018

3London was unveiled as the host of the ATP World Tour Finals for a further three years

SPORT EVENT DATE BIDDERS BID STATUS AWARD DATE

ATHLETICS European Athletics Indoor Championships

2019 Glasgow, Scotland;Minsk, Belarus; Apeldoorn, Netherlands; Torun, Poland

Confi rmed bid 23 April

AMERICAN FOOTBALL

Super Bowl LIII or LIV 2019 or 2020

Atlanta, USA;Miami, USA;New Orleans, USA;Tampa, USA

Confi rmed bids 23 – 25 May

MA

YA

PRIL

CONSULTINGEDUCATIONRESEARCH

FIFA Master

The International Centre for Sports Studies (CIES) provides a link between the theoretical study of sport management and its practical application. Using a multi-disciplinary approach, CIES provides research, top-level education and consulting services to the sports world, with the aim of overcoming the complexities of sport in today’s society and improving how it is governed and managed. CIES is where academic research meets practical management, resulting in research-based solutions that can be adapted to local needs and requirements.

www.cies.ch

20 years at the Centre of Research, Education and Consulting in Sport



February/March 2016

Casey Wasserman on how agencies are changing,

p30

SPORT EVENT BROADCASTER/AGENCY* TERRITORY PERIOD

AMERICAN FOOTBALL

Super Bowl W9 France 2016 to 2018

CHESS FIDE events (including World Championship)

NRK Norway Until 2020

GAMES Commonwealth Games ESPN USA 2018

GAMES Commonwealth Games TVNZ New Zealand 2018

HORSE RACING Racing in the UK ITV Sport UK 2017 to 2020

MOTOR RACING FIA Formula One World Championship

Channel 4 UK 2016 to 2018

OLYMPICS Summer and Winter Olympics

Globo TV Network Brazil 2018 to 2032

RUGBY LEAGUE NRL Premiership Nine Network, Fox Sports and Telstra

Australia 2018 to 2022

RUGBY UNION Six Nations Championship TV3 Ireland 2018 to 2021

RUGBY UNION SANZAR test matches and Super Rugby

Fox Sports Australia 2016 to 2020

SOCCER Copa Libertadores and Copa Sudamericana

Fox Worldwide 2016 to 2018

SOCCER Fifa World Cup beIN Sports (all matches) and TF1 (28 top matches)

France 2018 and 2022

SOCCER French League Cup Canal Plus and France Télévisions

France 2016-17 to 2019-20

SOCCER Israeli Premier League Charlton Israel 2016-17 to 2019-20

SOCCER Norwegian Tippeligaen Discovery Networks Norway Norway 2017 to 2022

SOCCER Portuguese Primeira Liga NOS (rights to 10 clubs, including Benfi ca, Sporting)

Portugal 10- to 12-year deals from 2016 or 2018

SOCCER Premier League Altice France 2016-17 to 2018-19

SOCCER Premier League IMG* 27 countries in Central/Eastern Europe and Central Asia

2016-17 to 2018-19

SOCCER Premier League Perform German-speaking territories

2016-17 to 2018-19

SOCCER Uefa Champions League fi nal

D8 (sub-licensed from beIN Sports)

France 2015-16 to 2017-18

SOCCER Spanish Liga beIN Sports and Telefónica Spain 2016-17 to 2018-19

TENNIS ATP World Tour Multi Screen Media Indian subcontinent 2016 to 2020

TENNIS ATP World Tour Le Sports China 2016 to 2020

Media deals

€1.3BNNOS’ spend in long-

term deals with 10 Portuguese league clubs

*Dis

trib

utio

n/ag

ency

dea

l

$32m

Annual value of Charlton’s exclusive

Israeli Premier League contract

$2.65BNCombined value of

LaLiga’s rights contracts with BeIN

Sports and Telefónica

Directory 51Sportcal Insightwww.sportcal.com

STAY UPDATED. DAILY CALENDAR UPDATES www.sportcal.com/news

Index February/March 2016

Market movesSeamus O’Brien, deputy chairman of the executive committee at Lagardère Sports, the sports arm of the France-based media giant, stepped down in mid-January. O’Brien, the founder of World Sport Group, the Singapore-based agency acquired by Lagardère

in 2008, assumed the executive committee position nearly two years ago amid a management restructure while Andrew Georgiou, his right-hand man at WSG, assumed the chief operating offi cer role. O’Brien will remain involved on certain projects.

Keith Pelley, CEO of golf’s

European Tour, is interviewed

on p40

AGENCIESLucien Boyer resigned as president and global chief executive of Havas Sports & Entertainment, the brand engagement network of the French advertising fi rm, to become chief marketing offi cer of Vivendi Village, a division of the French media giant. Boyer was replaced by Pedro Avery.

Sophie Goldschmidt quit as chief commercial and marketing offi cer of the Rugby Football Union, the sport’s governing body in England, to become group managing director at CSM Sport & Entertainment, the UK-based sports marketing company. Goldschmidt, who begins her new position in March, counts basketball’s NBA, women’s tennis’ WTA and international sportswear giant Adidas as former employers.

EVENTSHans-Peter Zurbruegg was appointed as the Europe, Middle East and Africa managing director of the Ironman organisation owned by the World Triathlon Corporation. Zurbruegg remains as head of the Active Lifestyle & Endurance business of the Infront Sports & Media agency. Both WTC and Infront are ultimately owned by Wanda Group, the Chinese property and

Lucien Boyer

Hans-Peter Zurbruegg

Jean Gracia

Guo Jinlong

Kasper Rorsted

Joyee Biswas

entertainment giant. Zurbruegg replaced Thomas Dieckhoff, who had been chief executive for three years until he left in November 2015.

FEDERATIONS AND LEAGUESFrance’s Jean Gracia was appointed interim chief executive and general secretary of the IAAF, the sport’s governing body.

Charles Hill joined Major League Baseball International as the managing director of MLB Europe, Middle East and Africa, based in London. Hill joined from Hill Alphabet Inc., Google’s access and energy organisation.

World Sailing named Andy Hunt as its new chief executive following the departure of Peter Sowrey. Hunt is the former chief executive of the British Olympic Association. Sowrey quit in December 2015 after just fi ve months in the job.

North America’s National Lacrosse League appointed long-serving Major League Soccer offi cial Nick Sakiewicz as its new commissioner, replacing George Daniel, who had been in the post since 2009.

Sheikh Talal Mohammad Al-Sabah was elected as the new president of World Bowling, the international federation for nine-pin

and 10-pin bowling. Predecessor Kevin Dornberger, who had been president for eight years, took on a chief executive role for the next three years.

OLYMPICSGuo Jinlong, Beijing’s Communist Party chief, was appointed head of the organising committee for the 2022 winter Olympic Games in the Chinese capital.

Budapest 2024, the Hungarian capital in the running to stage that year’s Olympic Games, established its offi cial bid committee. Hungary’s IOC member Pal Schmitt, the former president of the country, was named president, with government commissioner Furjes Balazs chairman. The mayor of Budapest, Istvan Tarlos, and the president of the Hungarian Olympic Committee, Zsolt Borkai, are also on the committee.

SPORTSWEARAdidas, the German sportswear giant, named Kasper Rorsted as its new chief executive. Rorsted will join as a member of the executive board on 1 August, and work with the departing Herbert Hainer over a two-month transition period. The 53-year-old Dane will join from Henkel, Germany’s

household goods company, where he has been chief executive since 2008. Hainer has been at the helm since 2001.

TELEVISIONEleven Sports Network, the international pay-TV broadcaster, hired Joyee Biswas as managing director for Asia, based in Singapore. Biswas joined from Singtel, the telecoms group and pay-TV broadcaster in Singapore.

Todd Myers took up the newly-created position of vice-president of programming, acquisitions and development at One World Sports, the cable and satellite sports broadcaster in USA and Canada having spent 16 years at ESPN.

Hernan Lopez quit as chief executive of Fox International Channels, the international television unit at 21st Century Fox, to launch the Wondery podcast network, following a restructure.

Jan-Erik Aalbu was named sporting director at Discovery Networks Norway, the Discovery Communications’ owned Norwegian media group whose portfolio of channels includes Eurosport Norway. Aalbu was once a football commentator and a sports director at Valerenga, the Norwegian soccer club, and at the Norwegian Golf Federation.

Index market mov ; Sportcal Insight ; Sportcal 51 16/02/2016 14:42

Directory 53Sportcal Insightwww.sportcal.com Index February/March 2016

Conferences

STAY UPDATED. DAILY UPDATES ON CONFERENCES www.sportcal.com/conferences

DATE CONFERENCE WEBSITE CITY COUNTRY

1-2 The Sport Business Summit www.leadersinsport.com New York USA

5 The Sport Performance Summit www.leadersinsport.com Los Angeles USA

14-15 City Events 2016 www.cityevents-sport.com Paris France

15-16 Business of Sport Summit sportsleaders.com.au Sydney Australia

15-17 SPORTELAsia www.sportelasia.com Singapore Singapore

SPORTEL welcomes international sports marketing and media leaders to the next edition of SPORTELAsia in Singapore. The objective of the 2016 Asian convention is to inspire and offer a platform to interact, overcome oceans for cross continental business opportunities and to determine the future of sports media in Asia. For over 26 years, SPORTEL conventions have gathered the highest level executives from all over the world, representing the sports marketing and media industry. More information on www.sportelasia.com

17-18 FIFA Executive Committee Meeting www.fi fa.com Zurich Switzerland

17-18 14th Sports Marketing Days dms.sportwin.pl Warsaw Poland

17-19 Tennis Europe Annual General Meeting

www.tenniseurope.org Chisinau Moldova

22 The UK Sponsorship Awards 2016 www.sponsorship-awards.co.uk London England

On the 22nd of March 2016, at the prestigious London Marriott Hotel Grosvenor Square, the organisers of The UK Sponsorship Awards and their sponsors and supporters will have great pleasure in presenting the winning campaigns with their well-deserved and highly-coveted UK Sponsorship Award trophies. No other Awards reward effectiveness and excellence across all sectors of the sponsorship industry and across all budget bands. For more information on the Awards, please visit www.sponsorship-awards.co.uk

8-9 European University Sports Association (EUSA) General Assembly 2016

www.eusa.eu Wroclaw Poland

17-20 IEG Sponsorship Conference 2016 www.sponsorship.com Chicago USA

17-22 SportAccord Convention 2016 www.sportaccordconvention.com Lausanne Switzerland

SportAccord Convention is the world’s premier and most exclusive annual event in the service of sport. It is a 6-day event focused on driving positive change internationally and dedicated to engaging and connecting rights holders, organising committees, cities, press and media, businesses and other organisations involved in the development of sport. The SportAccord Convention brings together representatives from more than 100 International Sports Federations and enjoys a close collaboration with the International Olympic Committee. More information at: www.sportaccordconvention.com

21 23rd Think! Sponsorship Conference www.thinksponsorship.com London England

5-8 FIG Executive Committee and Council Meetings 2016

www.fi g-gymnastics.com Bangkok Thailand

8 LEN Elective Congress 2016 www.len.eu London England

MA

RC

HM

AY

AP

RIL

Read our verdict on the highs and lows

of 2015, p2420%

Percentage increase in entries to the UK Sponsorship Awards

6Number of days of SportAccord

Convention

26Number of years for

which SPORTEL has been running conventions

HIG

HLIG

HTS

HIG

HLIG

HTS

HIG

HLIG

HTS

Index conference ; Sportcal Insight ; Sportcal 53 16/02/2016 14:43

54 Index The Big Numbers

£1BN

Callum Murray Editor

Jonathan RestDeputy Editor

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John KilpatrickPicture Editor

Angela DerbyshireProduction Director

Rob Manning Production Manager

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© Progressive Customer Publishing (PCP). All rights reserved. The views expressed herein are not necessarily shared by Sportcal Global Communica-tions Ltd (Sportcal). If you want to reproduce or redistribute any of the material in this publication, you should first get the written permission of PCP. No responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication can be accepted by Sportcal, the publishers or the author(s). While every care is taken to ensure accuracy, Sportcal, the publishers and the author(s) cannot accept liability for the errors or omissions. Data included herein is published in good faith and is the best information possessed by Sportcal, the publishers or the author(s) at the stated time of publication. The published data does not constitute advice and should not be relied upon by any person in making (or refraining from making) any decision.

1,500 NUMBER OF SPORTS

STARS ON THE

BOOKS OF WASSERMAN

MEDIA GROUP

ESTIMATED VALUE OF UK SPORTING CORPORATE HOSPITALITY MARKET

NUMBER OF YEARS SPORTEL HAS BEEN

RUNNING CONVENTIONS

NUMBER OF TOURNAMENTS GOLF’S EUROPEAN TOUR WILL

STAGE THIS YEAR

26

45REVENUE GENERATED BY

SPORT EACH YEAR ACROSS THE WORLD, ACCORDING TO RESEARCH BY A. T. KEARNEY

$700,000,000,000$760,000,000,000

CHINESE GOVERNMENT TARGET FOR THE VALUE

OF THE COUNTRY’S SPORTS MARKET BY 2025

1,000HOURS OF ORIGINAL

PROGRAMMING ESPN, ALONGSIDE PARTNER

SONY, WILL OFFER INDIA’S TV AUDIENCES EACH YEAR

Big numbers ; Sportcal Insight ; Sportcal 54 16/02/2016 14:43

UNPRECEDENTED CHANGES IN THE SPORTS MARKETPLACE DEMANDA NEW TYPE OF AGENCY,

WITH TWO CIRCLES AS PART OF OUR TEAMWE PARTNER WITH RIGHTSHOLDERS TOINCREASE REVENUE BY UNDERSTANDING, ENGAGING AND GROWING THEIR AUDIENCES.

ONE DRIVEN BY DATA AND INSIGHT.

ESP Properties is part of WPP,the world leader in marketing communications.

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