new objective increase the commercial value of...

OBJECTIVEINCREASE THE COMMERCIAL VALUE

OF OLYMPIC CLASS SAILING AT ALL LEVELS AND FOR ALL NATIONS

Presentation by Mark Turner, Executive Chairman of OC Sport

ISAF COUNCIL 15th November 2013, Oman

Firstly to introduce myself and OC Sport Global Sports Marketing and Events company specialising in outdoor events - running, cycling, professional sailing

I want to mention a few of our projects, not to make a sales promotion about us not here for that - but so you can understand better the experiences we have had that might have shaped how we have come at this problem.

I am sure there are other solutions to what we have proposed - but this is the vision we have developed, interacting with a great number of different stakeholders along the way and leaning on our own experiences of the past 21 years of OC.

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Managed TEAMS and ATHLETESBeen in the place myself, and with the athlete with no funds but a big dream

CREATE AND MANAGE EVENTS- Purely COMMERCIAL sector, deliver to the brands or fail

understand high performance training - we run Artemis Offshore Academy for solo sailors who compete in the very competitive Solitaire du Figaro

OC Sport has operated all over the globe

Creation of the Extreme Sailing Series Event Owner & Organiser

Creation of the Barcelona World Race Event Co-Owner & Co-Organiser

Extreme Sailing Series on 4 different continents Event Owner & Organiser

Artemis Offshore Academy Creation & management

Geneva Marathon Event Owner & Organiser

Creation of the Haute Route Alps Event Owner & Organiser

MOD70 Euro Tour Event Organiser

French Riviera Marathon (Nice-Cannes) Event Co-Organiser

Creation of the Haute Route Pyrenees Event Owner & Organiser

Creation of the Gabon Marathon Event organiser

Route des Princes Event Organiser

The Transat First event organised by OC Sport

Nick Moloney Skandia Vendée Globe campaign

Ellen MacArthur Kingfisher Victory in the Route du Rhum

Ellen MacArthur Kingfisher 2nd position Vendee Globe Campaign

Sebastien Josse - BT Vendee Globe campaign

The Artemis Transat Event Owner & Organiser

Oman Sail Creation & Management

2000-2001 2002 2004 2007 2008 2010 2011 2012 2013

Ellen McArthur B&Q Solo non-stop round the world record

2005

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And whilst still relatively small, we’re global - we’ve worked in many different cultures - 16 countries this year alone.

Building legacy, and creating future talent, has been a core part of our most successful projects

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Lot of talk about looking after the developing nations - In 2007 - Oman Sailandnow North Africa an Academy projectand Extreme Sailing Series promoting sailing to new audiences every year in guess where - Singapore, Turkey, Russia, China, Brazil, Oman…not the ‘rich’ sailing nations.

And 10 days ago we announced a Chinese entry in the Volvo Ocean Race - Objective - up to half the crew ChineseWith Team Dongfeng we hope to inspire a new generation of Chinese to sail competitively

Over 130million Euros of sponsorship has been successfully managed by OC Sport since its creation in 1997, with over 200 brands and host venues

And we understand what big brand sponsors want

Enough about us - on to the mission that I’ve been very happy to help Carlo and the team develop these past few months.

Matt Belcher - conf call 3 months ago - no question about the extraordinary talent - but i’ll maybe shock you, and I apologise, but I had never heard of Matt until then. His main request in a new vision - was RECOGNITION, and not just once every 4 years.

Athletes shine at Olympics, sailing manages to shine too - the Olympic currency is strong - not necessarily the Sailing Currency otherwise we would have a lot more exposure in between!

Class National Champs; Other National & Regional Regattas

Major international multi-class regattas; Class Continental Championships, Major Regional Games

ISAF Sailing World Championships (every 4 years)

10 Olympic Class World Championships

Up to 40 ISAF Sailing World Cup winners

Current Situation

Olympic Games

Problem is that the pathway is neither clear, or valuable, to the sailornor to the outsiderAnd certainly not to a sponsor new to the sport

Not even talking about the other 300 or so World Champions out there…just in the top part of the sport, the word ‘World’ doesn’t even define the best.



So Carlo asked us to work with him and others in a process of change - with this at the heart - for the SAILORS the MNAs and their TEAMS the CLASSES the EVENT ORGANISERS and ultimately inc ASSET VALUE for ISAF

Class National Championships; Other National & Regional Regattas

Major international multi-class regattas; Class Continental Championships, Major Regional Games

Olympic Games

Proposed Structure

ISAF Sailing World Championship (every year)

You have hopefully read the papers that introduced in outline the vision for the future. The step to a commercially successful new ‘sports product’ has of course risks - risk for everyone for sure. No big game-changing shift is free or dangers or uncertainty. But what I am certain of, is that no amount of little tweaks is going to solve the problem - a problem that I sense a very large majority accept does indeed need fixing.

This is what it looks like…

T I T L E

Short video to summarise where the vision must take us - a journey that could take ISAF several years to accomplish——



Why is it important for Olympic Sailing to become more professional and realise more of its commercial value??

- ISAF certainly, but probably all of us, have a duty to develop this sport. To develop needs great ideas, passionate and smart people, but also MONEY.MONEY for athletes - national teams - event organisers- those also driving grass roots participation like the Classes. ALL of these stakeholders.

A dirty word??

Events Committee (EC) comment - “Its all about the dollars - many of the details go away if there is sufficient funding.” Absolutely right!

Many ISAF events have been locked in a loop for years at a subsistence level, unable to make big developments, held back. It is THE EVENTS that provide the platform for THE ATHLETES that market our sport.

Rest of the sport of sailing has got on and developed over last decade in particular, bringing in brands, venues, even countries.

Not saying nothing has been done - great people, initiatives, volunteers, outstanding

entry fees - we might call it mass participation model - but THAT is mass…40,000 people paying. 1000 sailors with expensive services … NO.

Many events are stuck in a low leverage model, break even is good, and expansion / investment is difficult

So ONLY other major revenue stream is brand sponsorship - which a few notable exceptions, remains very undeveloped.

So what are the fundamental requirements for sponsors looking to partner in a sport -++++ great values, good fit, powered by wind, inspirational, great imagery, accessible athletes…sure BUT, the deliverables -

MORE AND MORE - A GLOBAL PLATFORM visiting key expanding markets+STRONG TV AND MEDIA PLATFORM - GLOBALLY

Place holder text

A hospitality delivery - global standard

And a money can’t buy experience for the sponsor’s guests.

Sailing TICK. Clients can try it - even if never done before - and alongside the pros - whilst 4 up in a 470 isn’t going to work, the coach boat, the masterclass from a pro, the fascination of the Olympic medal…there is a great package there.

And thirdly interest, on site or online, from the PUBLIC

So to attract major sponsors today we need - GLOBAL / CONSISTENT STANDARDS on and off waterGLOBAL TV / QUALITY CLIENT EXPERIENCE / SUFFICIENT LOCAL PUBLIC

A clear hierarchy of events, that provides clearer goals and allows progress to be measured more accurately

To build a clearly understood and professionally organised annual Olympic sailing calendar

that each year produces one undisputed World Champion in each Olympic class

So how to increase sporting & commercial value to all parties beyond the Olympic Games???

To build a clearly understood and professionally organised annual Olympic sailing calendar

A clear hierarchy of events, that provides clearer goals and allows progress to be measured more accurately

that each year produces one undisputed World Champion in each Olympic class

—— and i make no apology in this pres about naming Class World Championships, the Open Round of the SWC, or the Pro-Am Worlds, etc - realise there is a compromise on this for now until 2016, but it WILL be harder to sell with more than one World Champion per class

Elite v Elitist

“a select group that is superior in terms of ability or qualities to the rest of a group”

e.g. an elite athlete

I wonder how many proposals at ISAF fail because of slight misinterpretations of words…a challenge for such a global sport of course.

MATT BELCHER U R ELITE ATHLETE

WANTS AND DESERVES RECOGNITION FOR REACHING THAT LEVEL

“adhering to or promoting the belief that society should be governed by a select group of gifted and

highly educated individuals”

But not ELITIST!

Fear comes from that misunderstanding maybe?

Professional sport = Commercially savvy

Malcolm Page talked about Professional not Elite - that works tooAnd in reality means behaving in a way that increases the Commercial value

Parity?

Another EC comment - its an excellent quality to have in some parts of the sport -

I’m sorry though, this is not what we are missing…its not about changing what is there, but its about adding Annual Elite-level, competition. The best of the best competing globally on an annual circuit.

IOC view? Archery Level C above sailing.

IOC wants -More commercialto create more STARSPromoting the sport to new audiences, ALL GOOD.

Universality requirement of IOC - MISUNDERSTOOD

NOT at EVERY event, not at every moment - but the overall system, the access is what matters.

T I T L EFLEET SIZE

Round 1e.g. Oceania

Round 2e.g. Europe

Round 3e.g. Americas

Round 4e.g. Asia

Top 25 in Rounds

1-4

Round 5Class

Championships Rounds

Open entry to Round 5 providing a

pathway into the SWC for

tomorrow’s stars

ISAF Sailing World Championships Grand Final

Top 10 battle it out in ‘winner takes all’

Grand Final

20-25 TOUR CARDS - we need an event that focuses on a smaller number of athletes - and that the logistical costs are managed. Nothing stopping combining with a pre-regatta, with as many boats you like, but our model is about a 3-4 day event focusing on the top 25. Plus the Class Open Championships, Pro-Am, or Class Worlds as they are currently.

UNIVERSALITY - look at just the TOP TEN even- 7-9 nations in each class, BUT IMPORTANTLY 23 nations overall at Super-Elite level, significantly more at TOP 25 based last full set of World Championships.

EVEN IF A NATION NOT IN 25, EVEN VIA WILDCARD - STILL BENEFICIAL The creation of Elite Level competition will help the smallest developing nation as much as the mature team.

A better more professional and career pathway - for the guys that area already in the sport, but also the 14 year old in Asia whose parents stop him going further as they can see no ‘career/job/salary’ (Examples in Dubai - Singapore - developing sailing nations)

An elite level to aim for every year

A platform that develops the sport globally - and therefore helps everyone - TV distribution that sells the sport, will help an MNA defend the sport against the others wanting the funding

Measures - rankings, Class Championship positions, nothing changes for the >25, —- 25% turnover ensures there is the chance for the newcomers to get in.

WILDCARDS —- unseeded players analogy from tennis - through the Class open event, or from a regional perspective where the regatta is held, or from a pre-regatta. ITS A GREAT STORY ‘Wild Cards’ also allocated for commercial, media and/or transition purposes ENHANCE not suppress other events

Majority of Round 1-4 entries via ‘Tour Card’

Sailors must commit to take part in all Rounds

New entrants via ISAF Rankings

Tour cards awarded early e.g. in June 2015 for 2016

‘Forced’ 25% turnover pa

So our mechanism for entry to the SWC is via an annual ‘Tour Card’.

Perhaps the Tour Cards could be presented / communicated by the classes - even if still controlled by ISAF?

This is a two-way commitment between the sailor and the event that gives the sailor the certainty he or she requires to go out there and raise the funds he or she needs. It’s also what the Event organiser needs to convince him it’s worth running a top-quality event – secure in the knowledge of who is going to turn up.

Tour cards will be awarded to the top sailors in the world as determined by the ISAF Ranking (this will drive participation in ‘all-comer’ events in the level below)

There will be no (or very little) nationality restrictions in place – in order to maximise media attention on this flagship event for our sport we need to be pitching this as a no-holds-barred competition for the best-of-the-best

Tour cards will be awarded in plenty of time so that athletes and teams can have max time to raise the necessary funding

Tour-Card allocation designed to achieve approx. 25% turnover (promotion/relegation) of athletes each year

Every year we will force a ‘talent refresh’ by relegating the bottom 25% finishers in the SWC and promoting the top ranked sailors from outside of the SWC competitor list to take their place

Class World Championships

Two World Champions each year? Fudges are never that helpful for progress - that may well be ok, or may well derail - many sponsors will certainly ask the question in their due diligence. Having more than one World Champion is a problem - there are already 300 or so to compete with…have more than one at the Elite level is hard to explain

There is a strong feeling in some classes that somehow this downgrades their event or position - I would argue the contrary. And no class is going to lose financially in this vision, to the contrary what the global series should be able to do is add to the media and sponsor platform for their event

back to the money

MNA really going to that finishing 35th in Class Worlds Round, or in ISAF rankings, is now not valid. not the case.

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FORMAT

Don’t worry its not about Stadium sailing! Many formats can work, as they are now.There needs to be an arena, an entertainment package, which could be anything.Ultimately if we get this right, the SWC platform could also be widened to include offshore sailing championships, solo champs etc - the true ISAF Championships event across wider elements of the sport.

not again…but yes it comes down to it.

It will cost more money…for everyone - if it doesn’t its a failure.If the budget to compete at the top of the sport doubles, but the funding raised by the sailor, the MNA anywhere in the world, the event organisers, matches or more - this is PROGRESS.

The transition has challenges - things like shipping boats around the world is something the SWC Organiser needs to find ways to help on initially at least.

A World Cup event now costing 300k might be 1.3mTo sell this, once again, needs us to be able to sell a cleaner,easier to understand, product.

Rollout Plan

2013 2014 2015 2016 2017

Agree to take a proper step!

Further engage MNAs, athletes, events, classes, etc to develop details

Reflect in contract renewals & ISAF 2018 Worlds bid process

The sooner we can formally announce and clean up this initiative the sooner we can start to engage properly with all of the key stakeholders (athletes, teams, events, media, etc) and with potential sponsors too …

Still lots of details to be worked out – and of course these details will naturally evolve over time as lessons are learned and the event is continuously improved.

2013 2014 2015 2016 2017

Oct/Nov: Standalone “Concept Development” event

Our only objective for 2014 is to run a standalone ‘proof of concept’ Grand Final event in Oct/Nov - subject to funding.

ISAF CONTINUE CONSISTENCY in existing World Cup, plan 2015

2013 2014 2015 2016 2017

First full year of the ‘ISAF Sailing World Championships’

Tour Card introduced for the first time

Likely still in transition ...

First full year of the ‘ISAF Sailing World Championships’

Tour Card introduced for the first time

Likely still in transition ...

2013 2014 2015 2016 2017

Commercial Rights clarity

Olympic Year so Grand Final is run mostly as a sponsor activation event

Clearer commercial rights to sell over time- allowing more and more investment back in to the event to grow it.

2016 is an Olympic Year so Grand Final is run mostly as a sponsor activation event - very valuable still to have it. Medalist get wildcards to grand final even if not on Tour.

2013 2014 2015 2016 2017

Following Rio 2016 we should be able to deliver the event fully ‘on-Vision’

Quite a few steps, lots of details to evolve along the way, lots of challenges, and will need to stay fixed on the vision - the steps are not easy.

ITS A VISION - and everything EVOLVES. The timeline as well. But your President has a strong desire to fast track this.

RISK - - EVERY STAKEHOLDER.

BIGGEST RISK OF ALL, Whether its OC Sport or another company that partners with ISAF on this journey, there is a very long term investment required to turn this risk in to reward.

Rather than quote a philosopher - Mark Zuckerberg creator of Facebook - The biggest risk is not taking any risk...In a world that is changing really quickly, the only strategy that is guaranteed to fail is not taking risks.

I hope you will be brave, ISAF World Sailing CAN have a great future.



Presentation by Mark Turner, Executive Chairman of OC Sport

ISAF COUNCIL 15th November 2013, Oman

MERCI, SHUKRAN, XIE XIE, THANK YOU.

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