Marketing Consultancy Report - Papa Massata Diack CEO, Pamodzi Sports Consulting Presented to: IAAF Marketing Commission 3rd May 2015, Bahamas

Content

•  Foreword •  Personal Background •  Key Milestones •  Achievements •  Summary

2

Foreword

It is an honour and privilege to have worked since 2007 with IAAF & its exclusive worldwide marketing partner, Dentsu INC. to sell the number one Olympic sport, Athletics. The background of the relationship dated back to May 2001, when ISL Marketing AG was declared bankrupt and I was consulted informally by the IAAF President, Mr. Lamine Diack and IAAF Vice President & Marketing Commission, Prof. Dr. Helmut Digel, to give advise on the selection of a replacement company. It was only in July 2006 when I first attended the IAAF Marketing Commission meeting at IAAF World Junior Championships Beijing 2006 when my personal contribution was then formally requested based on my suggestion to reach out to Emerging Markets including BRICS (Brazil, Russia, India, China South Africa) Asia (including Middle East), NACAC and Oceania regions. My appointment was confirmed by IAAF President in September 2007. Then in 2009, the IAAF Council introduced the IAAF Continental Programme in its decentralization policy and my company was appointed as the main coordinator for this property. Thanks to all the stakeholders that have made this journey possible and especially Athletics Management & Services AG (AMS) with whom I co-operate with closely in order to achieve these goals. I am grateful for their total dedication to service Athletics and to strengthen the business model of IAAF & Dentsu over the years. 3

Personal Background

Started in 1989, attended the 5th IAAF World Cup in Athletics in Barcelona Spain, where I met ISL Marketing AG executives (Peter Sprogis & Craig Thompson). Hired by the two most well respected sports marketing professionals in the world, Klaus Hempel & Jürgen Lenz.

Joined ISL in 1990, where I work with Athletics, Olympics and Football departments until 1996. This duration allows me to support clients like:

•  ExxonMobil (previously Mobil Oil Corp.), handling the IAAF World Athletics Series Events from 1990 to 1994, IAAF Grand Prix Series and the Mobil Africa Athletics Project in 9 countries.

•  Coca Cola •  Organized the 1995 FIFA World Youth Championships in Qatar

•  Organized the 1996 Africa Cup of Nations in South Africa

4

Personal Background

•  Founded Pamodzi Sports Marketing in April 1997 in Johannesburg South Africa

•  Helped Coca Cola with 1998 Africa Cup of Nations in Burkina Faso •  Organized the 1999 FIFA World Youth Championships in Nigeria by the

Federal Government •  Exclusive Marketing Agent of the 2000 Africa Cup of Nations in Ghana/

Nigeria and the 2003 All Africa Games, Abuja •  Marketing Representative of Fédération Sénégalaise de Football from 2002

till 2006 including the widely successful campaign for 2002 FIFA World Cup Japan/Korea, generating 10.9 million euros (min. guarantee 3.5 million euros)

•  Marketing Commission Member for CAF, ANOCA (2002 – 2014) •  Marketing Advisor for African Fencing Confederation, African Judo Union,

Senegal National Olympic Committee (2003 – 2008) •  Marketing Representative Togolaise Federation de Football for 2006 FIFA

World Cup Germany •  IAAF Marketing Advisor from 2007 to 2015 5

Key Milestones

6

2001 Helped negotiate

Dentsu’s 2001-2009 marketing rights contract with Dr.

Helmut Digel & AMS

2006Helped negotiate

Dentsu’s 2010-2019 marketing rights contract with Dr.

Helmut Digel & Luis Carulla

2007 •  Appointed IAAF

Marketing Consultant

•  Brought in IAAF’s first Russian partner, VTB

2009 •  Brought in IAAF’s first

Korean partner, SAMSUNG for WAS & Diamond League

•  Helped negotiated IEC 2010-2013 broadcast contract

2010 •  Brought in IAAF’s

first Chinese partner, SINOPEC

•  Implemented IAAF Continental Programme

2011Extended VTB’s

2012-2015 sponsorship contract

Key Milestones

7

2012 Concluded IAAF’s historic cooperation from 2014-2019 with China’s CCTV 5

2013 Helped negotiated WCH

Moscow 2013 LOC broadcasting contract and

loss made for IEC in Sports agreement

2014 •  Brought in Abu Dhabi Media, Middle East & North Africa broadcasting partner •  Concluded WCH Beijing 2015 LOC CRA agreement •  Helped negotiations for Dentsu’s 2020-2029 marketing rights contract with Dr.

Helmut Digel & Essar Gabriel

Achievements

IAAF World Relays Challenge IAAF Continental Programme Clients

9

“I believe strongly that the greatest strength of

the IAAF is Universality” - Lamine Diack, IAAF

President IAAF Centennial

Celebrations, Barcelona

IAAF World Relays Challenge

10

Alongside Mr. Essar Gabriel, Mr. Luis Carulla Pauline Davies-Thompson, we managed to convince the government of Bahamas to host this new event. Widely successfully, IAAF World Relays Bahamas 2014 was broadcast in 156 territories for almost 300 broadcast hours. Cumulative viewership topped 9.5 million individuals. 3 World Records was set!

IAAF Continental Programme

•  IAAF President’s vision is to universalize and decentralize major athletics events, particularly at regional level

•  Full support from Dentsu INC., and AMS •  Generated US$16.85 million in terms of sponsorship from

sponsors

2010 This led to the development and implementation of the IAAF Continental Program which spans across the five IAAF Area

Association regional events

2009IAAF Council in Berlin entrusted IAAF HQ Marketing Department with the specific mission of identifying additional

resources for Regional competitions, in line with recommendations made in World Athletics Plan 2003-2012

Sponsors Contribution (Cash + VIK)

US$9,500,000

US$1,500,000

US$2,000,000

US$3,850,000

Summary

53 events organized More than 750,000 spectators have attended

Global TV viewership exceeds 620 million with more than 350 broadcasting hours

More than 250 Area & National Records were broken!

•  IAAF, Dentsu/AMS approved the appointment of Pamodzi Sports Consulting to be the event coordinator for 9 to 11 events from 2010 to 2015; all reports are available on the MSD of IAAF

•  Pamodzi had the full cooperation of IAAF Senior Marketing Manager, Ms. Cinzia Molinari & MSD Senior Manager, Mr. Jee Isram for the proper implementation of this programme throughout the period. Special thanks to IAAF Development & Member Federations Relations Department Director, Mr. Malek El Hebil

Clients

14

Abu Dhabi Media Company, United Arab Emirates

15

Media & Broadcasting US$8,346,000 (projected to US$5,000,000) Leading media organization in the Middle East, employs 1900 people across its operating units which include publishing, television, radio, digital media, distribution, and printing. the official media organization of the government of Abu Dhabi.

•  TV Rights for Middle East & Africa 2014-2019 •  Deal under review to buy back 2019 for subsequent sales to beIN

Sports for WCH Doha 2019, final value to be reduced by US$3 million

Adidas AG, Germany

Sportswear & Sports-shoes US$9,500,000 Adidas is the largest sportswear manufacturer in Europe and the second biggest in the world, after Nike. Annual revenue of more than US$ 14 billion and ranked 70 World's Most Valuable Brands

•  Sponsorship rights for 2010-2019 IAAF Continental Programme •  Thanks to persistence efforts of IAAF President and Dr. Helmut Digel,

adidas fully cooperated in the introduction of the IAAF Continental Programme by providing equipment to all Continental Area Associations in their Senior, Junior & one day meets

•  Special thanks to Ms. Cinzia Molinari for handling all VIK management for Area Associations with dedication and professionalism

16

China Central Television, People’s Republic of China

Media & Broadcasting US$3,410,000 2008 Summer Olympics coverage on CCTV resulted in an aggregate 41% audience share across its network. More than 90% household penetration and accessible to more than one billion viewers.

•  Historic co-operation to boost coverage of Athletics in

the People’s Republic of China, signed personally by IAAF President and Director of CCTV 5.

•  Special thanks to Mr. Anderson Yeo and Mr. Ianton Tan for client servicing in People’s Republic of China.

17

Dentsu INC., Japan

Advertising Agencies US$492,450,000 No.1 brand agency globally on Advertising Age with a global network that now incorporates 124 countries and territories around the world with around 40,000 employees worldwide. Annual revenue of US$ 22.45 billion.

•  Marketing rights for IAAF World Athletics Series 2001-2029 •  Throught the period of 2007 till 2014, Dentsu INC. Sports Division

currently headed by Executive Officer Kiyoshi Nakamura, has provided full support for Pamodzi Sports Marketing team worldwide

18

WCH Beijing 2015 LOC, People’s Republic of China

National, Regional & Local Government Bodies US$4,000,000

•  Category Release Agreement for WCH Beijing 2015 •  Special thanks to former Mayor Mr. Guo Jinlong Mr. Sun Kanglin and

Mr. Li Yingchuan and their team

19

WCH Moscow 2013 LOC, Russian Federation

National, Regional & Local Government Bodies US$4,800,000

•  TV Production & Rights Fees for WCH Moscow 2013 in conjunction with IAAF General Secretary Mr. Essar Gabriel & IAAF Honorary Treasurer, Mr. Valentin Balakhnichev

•  Terrestrial TV rights of around US$1.2 million •  Special thanks to Russian Federation Minister for Sports, Mr. Vitaly

Murkov

20

IEC in Sports, Sweden

Media & Broadcasting US$76,000,000 IEC in Sports, based in Stockholm, which is a wholly owned subsidiary of the Lagardère Sports group, has offices in Lausanne, Dubai, Hong Kong and Sydney. IEC in Sports manages over 300 events annually and has wide experience in the field of media rights sales, distribution and production.

•  European TV Rights from 2010 to 2013 for IAAF WAS events

•  Worked with former IAAF Marketing Director, Mr. Luis Carulla

21

Samsung Electroncis, South Korea

Consumer Electronics US$29,100,000 Ranked 8th world’s most valuable brand on Forbes 500, Samsung‘s annual revenue was equal to 17% of South Korea’s $1,082 billion GDP at US$208.9 billion •  IAAF WAS Events 2009 to 2011 •  IAAF Diamond League Title Sponsor 2010 to 2012 (42 meets) •  IAAF Continental Programme 2010 to 2012 •  The longest and most difficult negotiations encountered; April

2006 till the conclusion in March 2009 •  SAMSUNG was supposed to be involved in WCH Paris 2003 •  One of the most active OIP in promotion & activation of their

sponsorship rights worldwide and domestically

22

China Petroleum & Chemical Corporation People’s Republic of China

Energy, including oil and gas US$20,625,000 World’s largest company by revenue and second largest chemical producer. SINOPEC is ranked 3rd on Fortune 500, and the largest company in China. Annual revenue of US$445.3 billion.

•  IAAF WAS Events from 2010 to 2015 •  Title Sponsor for IAAF World Half Marathon Championships Nanning 2010 •  IAAF Continental Programme 2010 •  Prize Money for WCH Beijing 2015 paid to IAAF directly saving US$7 million

from IAAF Budget and creating new milestones for WCH bids. Host Cities also have to guarantee Athletes’ prize money for IAAF Council

23

VTB Bank, Russian Federation

Banking and Financial Services US$30,367,000 Fortune 500 company, 2nd largest bank in Russia, present in more than 20 countries across the CIS, Europe, Asia and Africa. Annual revenue of US$22.79 billion

•  IAAF WAS Events 2007 to 2015 •  Title Sponsor of IAAF Continental Programme 2010 to 2015 •  Title Sponsor for IAAF World Athletics Final 2008/2009, IAAF

Continental Cup Split 2010 •  Official Partner IAAF Centennial Gala Dinner 2012

24

25

Participated in generating 2% of IAAF’s Marketing & TV Revenue

from 1992 till 2029

Average revenue generated per year from

2007 till 2029 increases by

300% compared to 992 till 2006

Summary

This cooperation with IAAF and Dentsu/AMS has created a new milestone for the commercial success of Athletics and I hope that

it will continue to grow beyond 2015

Working with the emerging economies of the world and alongside major companies in the whole world has developed a new

relationship for IAAF & Dentsu/AMS in such a manner to enhance the profile of Athletics

Very privileged to be working together with talented sports administrators, sports marketing professionals and media

professionals that have added value to my sports marketing career. Thank you

26

Special Thanks to : Mr. Lamine Diack Dr. Helmut Digel Mr. Kiyoshi Nakamura and his predecessor Mr. Haruyuki Takahashi Team from AMS especially Mr. Stephan Bruchacher, Mr. Magnus Guthrie-Brown and Rowena Samarasinhe (AMS) Mr. Valentin Balakhnichev Mr. Park Jung Ki Mr. Du Zhaocai Mr. Pierre Weiss Mr. Essar Gabriel Mr. Luis Carulla Ms. Cinzia Molinari

27

Also: Local Organizing Committees and Member Federations from all EVENTS, Team from Dentsu INC. AMS, Management from JSC Sportima Russia, Colleagues from Pamodzi Sports Marketing, Consultants from People’s Republic of China, OlympAfrica Foundation for their assistance in implementation of the IAAF Continental Programme in Africa and Caribbean