infront sports media presentation

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BEING SUCCESSFUL IN THE WORLD OF SPORTS

FIS Organisers’ MeetingCavtat-Dubrovnik,May 23, 2009

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INFRONT SPORTS & MEDIA

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Content

1. Introduction: external forces and internal challenges

2. Key levers for success


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Key revenue sources are under pressure• Decreasing sports

sponsorships• TV rights under pressure • Sports licensing and

merchandising is stagnant

Increasing influence of commercial partners • Schedule and format

influenced by commercial partners

• Licensees and sponsors increasingly sophisticated and demanding

Pressure to professionalise sports bodies • Mismatch in skills and

expertise between demand and supply-side

• Sophistication of sports industry

Sports market under pressure

Sports markets are under pressure from external forcesIncreasing competition from competing formats• Entertainment driven TV and

viewership growing • Major events viewership in

decline


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Increased competition from other content formats

FIS events are not only competing against other sports but against many other forms of entertainment

Other entertainment formats

DanceTheatre

Concerts

Movies

Music

Reading

Gaming

OperaSkiing / Snowboard

Competitions

Other sports


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2000 2001 2002 2003 2004 2005

Offering by genre (based on televised time)

Sport is still key content but coming under pressure

2000 2001 2002 2003 2004 2005

Consumption by genre (based on reach)

** ***

36 36 37 38 44 44

16 17 1721 22

22 22 23 22 18 1811 11 12 11 10 9

14 11 9 8 7

20

15

42 42 41 40 41

16 17 15 20 20

19 20 20 20 19 19

15 19 16 19 166 5 5 4 3 3

42

19

17Others

Sports

Fiction

Information

Entertainment

100% 100%


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Monetisation of assets

Com

pelli

ng to

con

sum

ers

with

reac

h

Hig

hM

ediu

mLo

w

Low Medium High

ATP/WTA

FIVB

PGA

NFL

MLB

Eur. LeagueFootball

NBA

Formula 1

Premium events

Non premium events

Premium sports events combine two areas: consumer appeal (1) andmonetization potential (2)

Turning “minor” properties into premium events


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7*National football leagues not included; Source: PWC, Wilkofsky Gruen, sportsbusiness.com

Premium sports with higher growth rates (1/2)

'98 '99 '00 '01 '02 '03 '04 '05 '06

+9% p.a.

+3% p.a.

Global TV sports rights

CHF million

16.0 16.519.4 19.6

22.420.5

21.9 21.5

25.2

'98 '99 '00 '01 '02 '03 '04 '05 '06

+0% p.a.

Other sports

+3% p.a.

'98 '99 '00 '01 '02 '03 '04 '05 '06

Premium sports

26% p.a.8% p.a.

3.14.7

6.6 5.37.8

5.98.3

6.1

10.4

12.9 11.8 12.814.3 14.6 14.6 13.6

15.4 14.8

• NFL• NBA• FIFA World Cup• Formula 1• UEFA

Champions League

• WTA/ATP• PGA• EHF Champions

League• Winter Sports• etc


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Premium sports with higher growth rates (2/2)

Key questions:• Status of FIS competitions today?• Key levers to make a sport more attractive?


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Six internal challenges that every sport faces

Challenges

Athletes’ salaries 1 Changes in technology2

Ticket pricing 3 Internationalization4

Innovation 5 Illegal activities6


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Content

1. Introduction: external forces and internal challenges

2. Key levers for success


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Scoring in the world of sports along six levers

• Excitement and appeal of competition1. Transforming the sport

• Consistent story to follow • “Know when and where”

2. Circuit structure(calendar and format)

• Star and fan appeal • Country rivalries3. Star/hero development

• Identification with the brand4. Coherent branding

• Consistent year-round communication activation5. Effective PR & promotion

• High quality partner6. Professional organisation


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1. Transforming the sport – example Biathlon

• Calendar• Race formats• TV graphics and production• Centralised marketing


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1. Transforming the sport – example FIS Optimisation Project

• Media– TV Production– Websites

• Marketing & Communication– Brand Identity, Sponsorship Concept,

PR & Promotion

• Event Management– Fan Experience, Hospitality


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2. Circuit structure – example Formula One

• Fix long-term calendar

• Fix dates for “classics”

• Create clearly defined and consistent sport “product”

• Increase value to Members and other key stakeholders


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3. Developing stars – example WTA• To promote its most talented

and popular players in ways that guarantee them maximum exposure. If the equity of the players goes up, this pays directly back into the sports and the federation


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4. Coherent branding (clear brand definition) – example ATP

Brandbenefits

Brandattributes

Rational benefits

Emot

iona

l ben

efits

Tang

ible

attri

bute

sBrand vision/core:

best in (men’s) professional tennis

Intangible attributes

Emotional benefits• Makes me feel like a pro• Gives me pride and confidence• It must be of a high-standard• An association with the world of

professional tennis

Rational benefits• Entertainment and excitement• Ensures high quality of

professional tennis products and services

• Access to tennis related information

• Access to worldwide tennis stars

What does the brand stand for?

What is the brand?

Intangible attributes• Authenticity• Integrity• Passion• Stature• Champions• Worldwide

Tangible attributes• Brand logo/mark• Rankings• Tournaments• Players• Promotional Programs• Website• Publications • Partners


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4. Coherent branding (clear brand architecture) – example FIFA

Other

FIFA world ranking

FIFA Women’s World Cup

FIFA World Cup

FIFA U 17/19

Um

brel

la b

rand

Eve

nt b

rand

Sup

porti

ng b

rand

FIFA medicine FIFA goal


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5. Improved PR and promotion – example WTA

• Gives the brand a foundation of awareness throughout the year, regardless of season or performances of the players

• Allows for broader base of support for fans and more opportunities for players off the court

• Maximise PR potential– Promotion of players’ lifestyles and interests outside of the sport

• Targeted– Support for equal prize money to demonstrate social concern – Creation of role models and international stars (UNESCO ambassadors)

• Strategic alliances– Global / pan-regional media co-operations– Worldwide partnership with UNESCO

• Centrally controlled– Outdoor advertising campaign in host cities in support of tour– Joint promotion activity with local tournaments

Consistent year round communications activation


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6. Professionalise the organisation – examples

• Creation of vision and mission• Changes in organisation initiated in 1998 and

completed in 2002 (e.g., introduction of 5 divisions)

• Changes in organisation initiated in 1999, completedin 2000 (e.g., creation of CEO position)

• Total review of overall governance (e.g., decrease of number of committees from more than 20 to ~10)

• Streamlined organisation in 2001 into four areas – Member services– Finance and administration– Marketing and event management– Media and communications


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6. Professionalise the organisation – federation example

Time

Organisational restructuringDevelopment

of "Vision" and "Dual Mission"

Development of federation Business Plan/Department Management Plans

! Correct strategy

! Correctstructure

!

Proof of success

Development of action programme to implement plans

!

Best cross-divisional co-operation and shared performance commitments

!

! Impact-oriented review of lived organisation and performance culture, etc.

1998: Administrator

of associations

2002:Professional

service provider for associations

Individual goals/strategies, based on Vision/Mission

Implementation of biggest sports development program ever


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6. Example – vision and mission of a global federation

Universality

For the game… …for the world

Federation family

Trust

Dem

ocra

cy

Sol

idar

ity

Quality


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6. Example – mission statement USOC

RationaleCritical elements Test

Inspirational • Focused on excellence and inspiration!

Brief • One sentence long!

Clear• Prioritises competitions

and athletes• Balances ends against

means!

Actionable • Results can be measured!

Consistent • Focused on goals, not enablers!

“To support U.S. Olympic and Para-lympic athletes in achieving sustained competitive excellence and preserve the Olympic ideals, and thereby inspire all Americans”


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Scoring in the world of sports along six levers

4. Coherent branding

5. Effective PR & promotion

6. Professional organisation

1. Transforming the sport

2. Circuit structure(calendar and format)

3. Star/hero development


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Definition of vision for skiingAction today

• National Ski Association programme and activities, also taking into account the six levers for success

Rolling back the future

Today 2015

• What does “Premium skiing” look like?• What are our aspirations?• What should skiing be recognised for?• What are incentives/risks for each member

of the family?

Conclusion – our recommendation as partner of the FIS and the National Ski Associations


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THANK YOU!

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