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MASTERCARD SIX NATIONS RUGBY REPORT

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<strong>MASTERCARD</strong> <strong>SIX</strong> <strong>NATIONS</strong> CHAMPIONSHIP <strong>RUGBY</strong> <strong>REPORT</strong><br />

Report prepared by the Centre for the International Business of Sport (CIBS)<br />

<strong>REPORT</strong> HEADLINES<br />

Positive economic impact:<br />

The 2010 RBS Six Nations Championship will deliver a positive total economic impact of<br />

US$632.81 million, comprised of:<br />

Total economic impact of the 2010 RBS<br />

Six Nations Championship<br />

Million USD<br />

($)<br />

Million GBP<br />

(£)<br />

Million EUR<br />

(€)<br />

Impact in England 132.82 88.38 97.72<br />

Impact in Ireland 123.06 81.85 90.50<br />

Impact in France 122.10 81.21 89.79<br />

Impact in Wales 109.00 72.50 80.16<br />

Impact in Scotland 94.56 62.90 69.55<br />

Impact in Italy 51.27 34.10 37.71<br />

Healthy recorded audiences:<br />

Match day attendances for the 2010 Six Nations Championship have been high, with full<br />

or close to capacity crowds at all fixtures. An estimated 1,054,654 fans attended games<br />

during the tournament.<br />

TV figures are similarly buoyant overall, with audience figures for the tournament<br />

attracting an estimated audience of 125 million viewers.<br />

Three matches attracted a total TV audience of more than 10 million (France v Ireland,<br />

Wales v France, France v England).<br />

Positive impact of Friday evening matches:<br />

Holding a Six Nations match on Friday evening – in the second year of its trial – has again<br />

proved popular in the 2010 Championship. The 2010 match between Wales and France<br />

has attracted the second highest number of TV viewers of the competition (estimated at<br />

10.5 million across UK, Ireland, France and Italy) as well as a capacity crowd in the<br />

Millennium Stadium.


MasterCard Worldwide – Page 2<br />

MasterCard Six Nations Championship Rugby Report<br />

Increasing participation:<br />

The overall growth in rugby worldwide is estimated at 15% per year, while participation<br />

has been growing across the Six Nations, with substantial increases recorded since 2007:<br />

Nation<br />

% Growth<br />

Italy 36<br />

Ireland 33<br />

Scotland 32<br />

France 22<br />

Wales 10<br />

England 5<br />

OVERVIEW OF THE <strong>REPORT</strong><br />

Ahead of the 2010 RBS Six Nations Championship, MasterCard – a Worldwide Partner<br />

and official payment system of the Rugby World Cup 2011 – commissioned leading<br />

international sport business experts at the Centre for the International Business of Sport<br />

(CIBS) to conduct a study into the economic impact of the 2010 RBS Six Nations<br />

Championship and associated demographic trends.<br />

The report consists of the following sections:<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

Section 1: Report Aims<br />

Section 2: History of the Competition<br />

Section 3: Sport Events and Impacts Research<br />

Section 4: Sports Events and Demographic Profile<br />

Section 5: Broadcasting<br />

Section 6: Participation<br />

Section 7: Conclusions<br />

Section 8: Methodology<br />

- more -


MasterCard Worldwide – Page 3<br />

MasterCard Six Nations Championship Rugby Report<br />

SECTION 1: <strong>REPORT</strong> AIMS<br />

The aims of this report are:<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

To identify the economic impact of the 2010 Six Nations Championship on the host<br />

countries<br />

To indicate how these impacts might be felt across product categories/ industrial<br />

sectors<br />

To assess the likely impact that emerging from the recession has had<br />

To consider the socio-demographic profile of rugby fans in relation to the above<br />

To analyse the popularity of the Championship on TV<br />

To examine the implications of the Friday night fixture<br />

To compare to other televised sports events<br />

To outline participation figures in rugby union across the nations involved in the<br />

tournament<br />

To highlight areas of growth by demographics<br />

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MasterCard Worldwide – Page 4<br />

MasterCard Six Nations Championship Rugby Report<br />

SECTION 2: HISTORY OF THE <strong>SIX</strong> <strong>NATIONS</strong> CHAMPIONSHIP<br />

The Six Nations Championship is the oldest and most high profile rugby union<br />

tournament in the Northern hemisphere. Contested annually by six of Europe’s rugby<br />

playing nations (England, France, Ireland, Italy, Scotland and Wales), the tournament<br />

consists of 15 matches, with each nation playing the others once. Home advantage<br />

alternates year by year. In the 2010 edition, England, Scotland and Italy played two ties<br />

at home, while Ireland, France and Wales played three 1 .<br />

England and Scotland contested the first official rugby union international in 1871 and<br />

following occasional friendly matches between the two over the next 12 years, the<br />

Home International Championship was introduced in 1883. This was a tournament held<br />

between the four home nations of England, Ireland, Scotland and Wales. Though France<br />

played in the tournament four times previously, it was not until 1910 that they officially<br />

joined and it became known as the Five Nations Championship.<br />

The tournament reverted back to the Home Nations in 1932 after French teams were<br />

found to have been illegally paying their amateur players 2 and this remained the case<br />

until 1939. The competition had breaks for the two world wars, then the Five Nations<br />

resumed in 1947. The competition grew in popularity, and by the 1970s matches were<br />

all ticket events and coverage on television was becoming increasingly popular. The<br />

tournament was again renamed in 2000 when the addition of Italy made it the Six<br />

Nations Championship.<br />

In its first decade of existence, France has been the Six Nations winner most frequently,<br />

with Scotland and Italy never having been Champions.<br />

Table 1: Past Six Nations Winners<br />

Year<br />

Winning nation<br />

2000 England<br />

2001 England<br />

2002 France<br />

2003 England<br />

2004 France<br />

2005 Wales<br />

2006 France<br />

2007 France<br />

2008 Wales<br />

2009 Ireland<br />

2010 France<br />

1 This scenario will be reversed in the 2011 edition.<br />

2 Rugby Union turned professional on 27 th August 1995.<br />

- more -


MasterCard Worldwide – Page 5<br />

MasterCard Six Nations Championship Rugby Report<br />

The Six Nations Tournament receives consistently high attendance figures and compares<br />

very favourably with other tournaments of its type, in many cases beating the<br />

attendance of other high profile major events.<br />

Table 2: Attendance at Selected Competitions between National Representative Sides<br />

(sorted by average match attendance)<br />

Tournament Sport Host nation Games Total<br />

attendance<br />

Average match<br />

attendance<br />

1994 FIFA World Soccer USA 52 3,587,538 68,991<br />

Cup Finals<br />

2009 Six Nations Rugby England, 15 981,963 65,464<br />

Championship Union Ireland,<br />

Scotland,<br />

Wales, Italy,<br />

France<br />

2006 FIFA World Soccer Germany 52 3,353,655 52,401<br />

Cup Finals<br />

2007 Rugby Rugby France 48 2,274,037 47,376<br />

World Cup<br />

2009 Rugby<br />

Union Tri-<br />

Nations<br />

2007 FIFA<br />

Women’s World<br />

Cup Finals<br />

Union<br />

Rugby<br />

Union<br />

Australia,<br />

New Zealand,<br />

South Africa<br />

9 399,907 44,434<br />

Soccer China 32 1,190,971 37,218<br />

Euro 2008 Soccer Austria, 31 1,140,902 36,308<br />

Switzerland<br />

2004 AFC Asian Soccer China 32 1,000,025 31,258<br />

Cup<br />

2006 Rugby<br />

League Tri-<br />

Nations<br />

Rugby<br />

League<br />

Australia,<br />

New Zealand,<br />

Great Britain<br />

7 163,769 23,395<br />

2009 Baseball<br />

Classic<br />

2004 World Cup<br />

Of Hockey<br />

2007 Cricket<br />

World Cup<br />

Baseball<br />

Various, USA<br />

final<br />

39 801,408 20,549<br />

Ice<br />

19 303,630 15,981<br />

hockey<br />

Cricket West Indies 51 672,000 13,176<br />

Attendances reported for the 2010 competition suggest that overall attendance is<br />

similar but higher than the 2009 event. An estimated 1,054,654 fans attended games<br />

during the 2010 tournament, compared to 981,963 for the 2009 Championship.<br />

- more -


MasterCard Worldwide – Page 6<br />

MasterCard Six Nations Championship Rugby Report<br />

SECTION 3: SPORT EVENTS AND IMPACT RESEARCH<br />

A large number of studies analysing the economic impact of sporting events have been<br />

produced in the past. Amongst these studies is a view that sporting events can be<br />

categorised in the following way:<br />

<br />

<br />

<br />

<br />

Global sporting event – irregular, one-off, major sporting events that generate<br />

significant economic activity and media interest e.g. FIFA World Cup, Rugby World<br />

Cup<br />

Domestic sporting event – major spectator events, generating significant economic<br />

activity and media interest which are part of an annual domestic cycle of sporting<br />

events e.g. FA Cup Final<br />

Irregular sporting event – one-off, major spectator/competitor events generating<br />

considerable economic activity albeit less than global sporting events e.g. UEFA Euro<br />

2008<br />

Major competitor event – generates limited economic activity and are part of an<br />

annual domestic cycle of sport events e.g. national championships<br />

However, the Six Nations Championship does not readily fit into any of the categories<br />

identified. Instead, a new category of event is proposed:<br />

<br />

Continental/Hemispheric sporting event – part of a regular cycle, major sporting<br />

event that generates significant economic activity and is of interest to media outlets<br />

across the world<br />

In addition to the Six Nations Championship, this definition also accounts for events like<br />

the Tri-Nations rugby union tournament in the Southern Hemisphere.<br />

- more -


MasterCard Worldwide – Page 7<br />

MasterCard Six Nations Championship Rugby Report<br />

Various studies have examined the economic impact of sporting events, the majority of<br />

which are multi-sport in nature or are held over an extended time period. Although the<br />

methodologies used in each are likely to have been different, one report reveals the<br />

following as the ten sporting events that generate the largest economic impact:<br />

Table 3: Top 10 Sporting Events by Economic Impact<br />

Rank Event<br />

$<br />

(billion)<br />

£<br />

(billion)<br />

€<br />

(billion)<br />

1 Olympic Games 11.34 7.53 8.32<br />

2 FIFA World Cup 9.16 6.08 6.72<br />

3 America's Cup 6.98 4.63 5.12<br />

4 FIA F1 World Championship 3.05 2.03 2.24<br />

UEFA European<br />

5 Championships 2.18 1.45 1.60<br />

6 Baseball World Series 1.09 0.72 0.80<br />

7 NFL Superbowl 1.09 0.72 0.80<br />

8 Rugby World Cup 0.34 0.23 0.25<br />

Athletics World<br />

9 Championship 0.34 0.23 0.25<br />

10 Cricket World Cup 0.16 0.11 0.12<br />

NB All impacts are global<br />

To enable comparisons to be made between events of various sizes, the economic<br />

impact of a selection of other sporting events is presented below:<br />

Table 4: Economic Impact of Selected Events<br />

Event<br />

$<br />

(million)<br />

£<br />

(million)<br />

€<br />

(million)<br />

1997 World Badminton<br />

3.29 2.18 2.41<br />

Championships, UK<br />

1999 MLB All-Star Game, US 65.43 43.42 48.00<br />

1999 NFL Superbowl, US 226.82 150.51 166.40<br />

2000 MLB World Series, US 218.09 144.72 160.00<br />

2000 NFL Superbowl, US 254.73 169.03 186.88<br />

2001 Cooper River Bridge Run, US 5.32 3.53 3.90<br />

2001 Girls Fastpitch World Series, US 3.49 2.32 2.56<br />

2001 NCCA Basketball Last Four, US 95.96 63.68 70.40<br />

2001 St Giles Youth Soccer Classic, US 1.47 0.98 1.08<br />

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MasterCard Worldwide – Page 8<br />

MasterCard Six Nations Championship Rugby Report<br />

2002 Breeders Cup, US 49.73 33.00 36.48<br />

2003 UEFA Champions League Final, 12.98 8.61 9.52<br />

UK<br />

2003 NFL Superbowl, US 327.14 217.08 240.00<br />

2003 World Gymnastics<br />

26.17 17.37 19.20<br />

Championship, US<br />

2005 European Eventing, UK 2.77 1.84 2.03<br />

2005 Open Golf Championship, UK 39.82 26.42 29.21<br />

2005 British F1 Grand Prix 36.35 24.12 26.67<br />

2006 NFL Superbowl, US 348.95 231.55 256.00<br />

2006 World Rowing Championships, 4.84 3.21 3.55<br />

UK<br />

2007 FIFA U-20 World Cup, Canada 110.97 73.63 81.41<br />

2007 UEFA Cup Final, UK 28.22 18.72 20.70<br />

N.B. All impacts are local<br />

Specifically in the context of rugby, various studies have provided estimates of economic<br />

impacts. Table 5 lists some of the main findings:<br />

Table 5: Economic Impacts of Rugby Events<br />

Event<br />

$<br />

(million)<br />

£<br />

(million)<br />

€<br />

(million)<br />

2002 Scotland v South Africa Autumn Test Match,<br />

18.08 12.00 13.27<br />

Scotland<br />

2002 Scotland v Fiji Autumn Test Match, Scotland 6.03 4.00 4.42<br />

2002 Scotland v Romania Autumn Test Match, Scotland 6.03 4.00 4.42<br />

2003 IRB Rugby World Cup, Australia (national impact) 183.85 £122 134.88<br />

2007 Scotland v Ireland Six Nations Match, Scotland 39.18 26.00 28.74<br />

2008 RBS 6 Nations Championship, Overall 592.84 393.40 434.92<br />

2008 RBS 6 Nations Championship, England 124.47 82.60 91.32<br />

2008 RBS 6 Nations Championship, Ireland 115.28 76.50 84.57<br />

2008 RBS 6 Nations Championship, Scotland 88.61 58.80 65.01<br />

2008 RBS 6 Nations Championship, Wales 102.17 67.80 74.96<br />

2008 RBS 6 Nations Championship, France 114.38 75.90 83.91<br />

2008 RBS 6 Nations Championship, Italy 48.07 31.90 35.27<br />

2009 Heineken Cup Final, Scotland 33.15 £22 24.32<br />

2009 Super League Magic Weekend, Scotland 16.58 11.00 12.16<br />

2009 Emirates Airline Edinburgh 7s Festival, Scotland 4.52 3.00 3.32<br />

2009 Heineken Cup Quarter Final Match, Limerick,<br />

Ireland<br />

110.94 73.62 81.39<br />

- more -


MasterCard Worldwide – Page 9<br />

MasterCard Six Nations Championship Rugby Report<br />

The positive economic impact of sporting events is likely to be evident at four levels:<br />

<br />

<br />

<br />

<br />

Local level – within the host cities, where the 2010 Six Nations Championship is held<br />

Regional level – this will include the political and geographic area within which the<br />

tournament is staged<br />

National level – more broadly and generally across each of the six nations<br />

International level – there will be a multiplicity of impacts across Europe and the<br />

world that can be attributed to the Six Nations Championship. Interest in the<br />

Championship will have an economic impact.<br />

The impacts attributable to the 2010 Six Nations Championship will take one of a<br />

number of forms including:<br />

<br />

<br />

<br />

Direct effects – includes the market revenues directly attributable to the individual<br />

matches either at the time of the event or in the future once the event has finished<br />

Indirect and Induced effects – normally generated following an investment in<br />

infrastructure (e.g. stadium developments), also wider impacts from increased sales<br />

etc which has a multiplier effect on economic activity amongst those with direct and<br />

indirect links to the initial investment<br />

External effects – includes non-market factors that benefit communities linked to<br />

the host venue such as improving the image of a locality and raising local economic<br />

growth<br />

In the context of the above commentary the range of positive impacts for the host cities,<br />

local area and for countries participating in the Six Nations in general, that one would<br />

normally expect from such an event are:<br />

<br />

<br />

<br />

<br />

<br />

Ticket sales<br />

Food and beverage sales<br />

Merchandise and related sales<br />

Visitor use of accommodation<br />

Visitor numbers at host venue attractions<br />

Research undertaken at previous sporting events (shown in Table 6 below) indicates<br />

which forms of expenditure are most likely to be influenced by people attending either.<br />

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MasterCard Worldwide – Page 10<br />

MasterCard Six Nations Championship Rugby Report<br />

Table 6: Profile of Expenditure at Sporting Events<br />

Rank Gratton et al.<br />

(2000)<br />

Bernthal<br />

& Regan<br />

(2004)<br />

Haug et<br />

al. (2004)<br />

1 Accommodation Tickets Tickets &<br />

event<br />

spending<br />

Lee & Taylor<br />

(2005)<br />

Culture &<br />

recreation<br />

Saayman (2005)<br />

Entrance<br />

Daniels &<br />

Norman<br />

(2006)<br />

Hotels &<br />

lodging<br />

UK Sport (2006) Wilson (2006)<br />

Accommodation Food & drink<br />

2 Food & drink Food Food Shopping Food Meals Food & drink Accommodation<br />

3 Shopping &<br />

souvenirs<br />

Shopping Hotels Accommodation Alcoholic drinks Sport Shopping and<br />

souvenirs<br />

Shopping &<br />

souvenirs<br />

4 Travel Travel Transport Tours &<br />

transport<br />

Accommodation Retail Programmes &<br />

merchandise<br />

Programmes &<br />

merchandise<br />

5 Entertainment Event<br />

Food &<br />

Transport Automobiles Travel Travel<br />

spending<br />

beverages<br />

6 Programmes &<br />

merchandise<br />

Recreation Souvenirs Entertainment Entertainment Entertainment<br />

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MasterCard Worldwide – Page 11<br />

MasterCard Six Nations Championship Rugby Report<br />

One might also expect there to be a direct or indirect economic impact in the host cities,<br />

in the wider six participating nations and/or across Europe on the following:<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

Increased amount of electronic and print media advertising<br />

Increased use of telecommunications and new media services<br />

Activities and sales based around event officials<br />

Activities and sales based around officials from commercial partners and sponsors<br />

Place marketing benefits and image improvement<br />

Magazine, newspaper sales and other related sales<br />

Sales of sport apparel, equipment and related items<br />

Sales of official merchandise and memorabilia<br />

Increases in betting and gambling services<br />

There is also evidence to indicate that sporting success can have a positive economic<br />

impact on the national economy of the winners, previous studies highlighting positive<br />

share price movements linked to winning.<br />

ECONOMIC IMPACT OF THE 2010 RBS <strong>SIX</strong> <strong>NATIONS</strong>:<br />

Considering the above, and on the basis of all available data, it is projected that the<br />

2010 RBS Six Nations Championship has delivered the following positive impact:<br />

Table 7: Projected Economic Impact of the 2010 Six Nations<br />

Total economic impact of the 2010 RBS<br />

Six Nations Championship<br />

Million USD<br />

($)<br />

Million GBP<br />

(£)<br />

Million EUR<br />

(€)<br />

Impact in England 132.82 88.38 97.72<br />

Impact in Ireland 123.06 81.85 90.50<br />

Impact in France 122.10 81.21 89.79<br />

Impact in Wales 109.00 72.50 80.16<br />

Impact in Scotland 94.56 62.90 69.55<br />

Impact in Italy 51.27 34.10 37.71<br />

In total, it is estimated that the cumulative economic impact of the 2010 RBS Six<br />

Nations Championship has amounted to upwards of $632.81m (£420.94m).<br />

This economic boost results from a short term positive commerce flow through fan<br />

spending in bars, clubs, shops, hotels, city attractions, transport, bookmakers and inside<br />

the stadia, along with sponsors and organisations spending on marketing in the cities.<br />

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MasterCard Worldwide – Page 12<br />

MasterCard Six Nations Championship Rugby Report<br />

Research suggests that major rugby events such as the Six Nations, tend to be<br />

characterised by significant numbers of travelling supporters. As international visitors<br />

bring significant new consumer spending into the economy, they tend to provide the<br />

primary source of additional income to a host. The differences in the boost for each city<br />

relates heavily to the attendance of non-local visitors to games, which is in turn<br />

influenced by stadium capacity.<br />

The projected boost to the English economy of $132.82 million compares very<br />

favourably to the Italian boost which is estimated to be closer to $50 million. There are a<br />

number of reasons for this difference. Firstly, capacity utilisation for the tournament is<br />

invariably high, thus the grounds with the highest capacity clearly have a greater<br />

potential to accommodate the demand for tickets to games.<br />

A major reason for the greatest impacts being felt in England, Ireland and France,<br />

therefore, is because of these nations’ bigger stadiums, which means they are more<br />

capable of meeting the demand for tickets.<br />

Table 8: Average Attendance and Capacity Utilisation for the 2009 Six Nations<br />

Nation Ground Capacity Average<br />

Attendance<br />

(2009<br />

Championship)<br />

England Twickenham 82,000 82,000 100<br />

Ireland Croke Park 82,300 80,500 98<br />

Scotland Murrayfield 67, 130 61,000 91<br />

Wales Millennium 74,500 73,813 99<br />

Stadium<br />

France Stade de France 81,338 79,800 98<br />

Italy Stadio Flaminio 30,000 28,683 96<br />

Source: Six Nations Match Reports, statbunker.com<br />

Capacity<br />

Utilisation (%)<br />

Given the ease of access to all of the host cities from the other competing nations, and<br />

also the crowds for the 2009 tournament which fell at the height of the credit crunch, it<br />

was reasonable to expect a significant number of additional fans to travel to the host<br />

cities for the 2010 competition.<br />

-more-


MasterCard Worldwide – Page 13<br />

MasterCard Six Nations Championship Rugby Report<br />

Attendance demographics<br />

Research suggests that on average more than 85% of fans attending matches are drawn<br />

from the host nation, with 10% from opposing teams and the remaining 5% from other<br />

fans of rugby in general. Of course this changes according to which teams are playing.<br />

For example in 2006, the Wales v Scotland match in the Six Nations Championship<br />

resulted in 85,499 visitors to Cardiff, generating a total of £16.4 million ($24.73, €18.14)<br />

for the Cardiff economy. Of this total estimated 85,499 visitors, 87% were ticket holders;<br />

92.6% were Wales supporters; 7.5% were Scotland supporters and 0.01% were neutral<br />

supporters.<br />

In 1997, estimates indicated that visitors attending Six Nations games spent on average<br />

€469 ($638, £423), with other out of state visitors (non-attendees at games) spending<br />

on average €379 ($516, £342). Further research based on fans attending an Ospreys<br />

match, who have a similar demographic profile to those watching the Six Nations rugby<br />

suggests that on average €527 ($715, £474) was spent per visiting supporter, with 27%<br />

being spent on accommodation and 68% on food and beverages in the team’s home<br />

city.<br />

To add to those travelling to the match venues, a large number of people watch the<br />

games in pubs, clubs, bars or cafes, as well as at home. The projected economic impacts<br />

also incorporate a potentially longer-term economic legacy for the hosts, through<br />

increased tourism, civic sponsorship and a greater likelihood of repeat visits. Some<br />

visitors also incorporate watching a match into a longer visit and travel with additional<br />

friends and family, thus also increasing the economic impact.<br />

In addition, success at such a tournament can encourage increased participation, which<br />

in the long term can deliver significant health benefits and have a positive impact on<br />

community cohesion (Discussed in section 6 below) and contribute to employment (full,<br />

part time and temporary) and entrepreneurship as well as generating increased revenue<br />

from sales of equipment and sporting goods.<br />

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MasterCard Worldwide – Page 14<br />

MasterCard Six Nations Championship Rugby Report<br />

SECTION 4: SPORTS EVENTS AND DEMOGRAPHIC PROFILE<br />

Given the diverse population of the geographic area of the Six Nations, it is difficult to<br />

generalise about the nature and characteristics of people involved in consumption in<br />

and around the tournament. Nevertheless, there are inevitably a large number of<br />

people who are engaged in consuming the Six Nations product.<br />

Interest in rugby across all of the six nations is strong and growing. The IRB World Cup<br />

2007 generated an unprecedented interest in rugby in France, with the France-England<br />

Semi-Final watched by 18.3 million people and the Quarter-Final against the New<br />

Zealand All Blacks by 16.6 million, while two of the three pool matches had audiences of<br />

more than 14 million.<br />

Additionally, the total attendance for the French championship reached 3.2 million<br />

spectators in the 2007-2008 season, which was accompanied by an increase from<br />

400,000 to 500,000 for the French national team's matches, and from 400,000 to<br />

500,000 for the European Cup matches. Evidence indicates that 29% of French people<br />

follow rugby, as opposed to 30% who follow football; while the French national rugby<br />

team's progress is followed by 41% of French people, as opposed to 40% who follow<br />

football. 62% of the public gives rugby a favourable rating of between 8 and 10, as<br />

opposed to only 36% who give a similar rating to football.<br />

In Italy too, the sport is developing rapidly. Despite the North of the country still being<br />

classed as rugby’s heartland, a sell-out crowd of 80,000 attended the recent Italy-New<br />

Zealand match at the San Siro in Milan. Such is the demand for rugby that two Italian<br />

sides are set to join the Magner’s League next season. This is likely to create ‘superclubs’<br />

similar to those in Wales and Ireland.<br />

The addition of the Italian sides would benefit not only the development of Italian rugby<br />

but have a positive effect on the other sides and their surrounding economy too with a<br />

rise in the number of games likely to induce a corresponding increase in the number of<br />

spectators, thus generating additional revenue for the clubs and regions. Related to this<br />

additional exposure, and with an additional market for brands to sell in, the value of<br />

sponsorship would be expected to increase, as would the brand of the competing sides<br />

and locations. This also impacts the broadcast market which is discussed further in<br />

section 5.<br />

There is evidence from the UK that approximately 2.8% of the population paid to watch<br />

rugby union in 2008, compared to 2.5% in 2004 (2.7% cricket, 9.4% football). This<br />

increases to 22% regarding people who watched rugby union on television, and 38%<br />

follow the sport media reports. (Mintel, 2009).<br />

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MasterCard Worldwide – Page 15<br />

MasterCard Six Nations Championship Rugby Report<br />

Additional information on socio-economic characteristics of rugby supporters in the UK<br />

suggest that rugby supporters are traditionally from higher economic groups compared<br />

to the average of the population. While 24% of the adult population are from group AB,<br />

54% of those that play rugby or watch and attend rugby are from the top social<br />

grouping. In Ireland, as with the other Six Nations participants, the socio-demographic<br />

profile of rugby union supporters is predominately male, although approximately 30% of<br />

attendees at international fixtures are female. In Scotland too, the majority of people<br />

who express an interest in rugby are drawn from classes A, B and C1, with over 65%<br />

being male (Mintel).<br />

This interest from relatively wealthy social groups is associated with greater spending<br />

capacity than fans of some other sports. This higher propensity to spend translates<br />

favourably in terms of economic impacts and the ability for rugby to recover strongly<br />

from the credit crunch. This is likely to be reflected in the number of overnight stays, the<br />

overall spend (research suggests that rugby fans spend more than football fans overall<br />

on attending sports events). Additionally they are more likely to travel in groups with<br />

family members and stay for longer than just the match visit.<br />

Location impacts<br />

The Six Nations Championship hosts benefit from being in popular capital city locations<br />

so trips which are planned around the rugby but perhaps include an extended stay are<br />

more likely. Large numbers of travelling fans from high-income groups tend to bring<br />

significant additional expenditure. Research suggests that fans travelling further<br />

distances tend to spend more during their stay in the host nation.<br />

For example evidence from two 2002 Six Nations matches suggests that French fans<br />

visiting the UK tend to have a higher spend than the home nations fans and also tend to<br />

travel outside of the host city. High end events recover quickly because the market they<br />

attract is still wealthy, but value for money is also important.<br />

Emerging from the global economic downturn<br />

While the previous two years competitions have taken place in the grips of the global<br />

downturn, the competing nations are now all technically out of recession. In previous<br />

reports it has been argued that major sporting events would be largely resistant to the<br />

negative impact of the economic downturn, and that new supporter groupings would<br />

emerge to consume the sporting product in different ways (Chadwick, 2009) – in<br />

particular the stay at home audience and the way in which they engage.<br />

Indeed, despite the slow economic recovery, reports suggest that the demand for<br />

corporate hospitality in the UK, for example, will exceed £1.25b (€1.38b, $1.89) by 2013<br />

(MBD Commercial Due Diligence UK Corporate Hospitality Market Development Report,<br />

2009).<br />

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MasterCard Worldwide – Page 16<br />

MasterCard Six Nations Championship Rugby Report<br />

At Twickenham, following a 35% decrease in sales revenue from corporate packages for<br />

the 2009 Championship (causing the RFU to lose £2m, (€2.21m, $3.02m)) 2010 has seen a<br />

great recovery with a 60% rise in hospitality sales. Demand has outstripped supply of<br />

boxes and hospitality seats for the Ireland game and the situation is similar against<br />

Wales. Reports indicate that RFU could have filled 82,000-capacity Twickenham twice<br />

for both of England's home matches this season, despite a 2.5% increase in ticket prices<br />

following recent VAT rise.<br />

Similarly hotels in close proximity to the grounds have experienced strong demand. The<br />

Marriot Hotel, located in Twickenham’s redeveloped South Stand, sold out for both<br />

weekends of England’s home 2010 Six Nations matches. This is particularly good news<br />

for the service sector who have been hit hard in the recession, especially at a time of<br />

year when traditionally hotels are facing low occupancy rates.<br />

While corporate entertainment suffered heavily in the downturn, events offering value<br />

for money have been among the first to recover. As public criticism has been strong for<br />

corporates wasting money over indulging at events, the recovery has seen a shift with<br />

companies keen to keep their activities more low key. However rugby union appears to<br />

have bounced back strongly, with Twickenham having sold out its hospitality area for<br />

the Ireland game, and achieved sales of 4,000 tickets for the game against Wales<br />

(compared to sales last season of 2,800 and 3,000 against Scotland and France<br />

respectively) in advance of the start of the tournament.<br />

Brands are being careful with how they are seen to be spending but have rejoined the<br />

market in force. Experiential and bespoke events have proved popular, particularly<br />

those involving meeting players, and the Unions have reacted to this. Scottish rugby<br />

have launched a series of innovative partnerships with local hotels to offer bespoke<br />

packages for the Six Nations matches to ensure any additional revenues from corporate<br />

hospitality can be reinvested into the game by boosting the union’s revenues instead of<br />

fans buying unofficial packages.<br />

However, growth in corporate sales has not been repeated across all nations. In Ireland<br />

companies continue to curtail their hospitality spend. While hospitality packages are still<br />

selling, this tends to be on a smaller scale. Despite sport sponsorship in Ireland growing<br />

by 2% to €133m (£120.26m, $181.39m) in 2009, it is expected to fall by up to 6% in<br />

2010, compared to a predicted 5% rise in Europe overall (Onside Sponsorship Report).<br />

While technically, based on growth in GDP, Ireland exited recession in December 2009,<br />

this was mainly due to higher profits of multinationals which use Ireland for tax<br />

purposes. Without this effect, GNP would have decreased by 1.4%, suggesting that most<br />

of the Irish population are still in the grip of recession. Ireland’s recession has been one<br />

of the deepest, with its economy shrinking by 10% in 2009. Clearly this has filtered<br />

through to corporate sales.<br />

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MasterCard Worldwide – Page 17<br />

MasterCard Six Nations Championship Rugby Report<br />

However, Ireland’s Central Bank has predicted that the country will exit recession in the<br />

second half of this year, and recovery is expected for the 2011 edition of the<br />

Championship.<br />

The 2010 Championship is expected to be the final time in the modern era that Ireland<br />

will play their home games at Croke Park. The Aviva Stadium, built on the site of the old<br />

Landsdown Road ground is due to open later this year. Though the reduction in seating<br />

capacity from 82,000 at Croke Park to 50,000 at the Aviva Stadium will inevitably mean a<br />

reduction in attendances, the new stadium is designed to accommodate premium and<br />

hospitality guests. There are 10,000 seats at premium level and a further 1,300 at box<br />

level.<br />

While the Six Nations tournament draws its attending audience primarily from existing<br />

rugby fans in the participating countries, it is popular throughout the rest of Europe and<br />

the rest of the world.<br />

Categorising the Six Nations audience<br />

Drawing from observations made in previous CIBS reports for MasterCard, and also from<br />

observations made above, one should expect the composition of people expressing an<br />

interest in the Six Nations Championship to include:<br />

<br />

<br />

The Mobiles: people predominantly from the participating nations, but also rugby<br />

fans across Europe, who travel to one or more of the host cities to watch a match<br />

(this group in turn will consist of a series of further consumer segments, each of<br />

which display distinctive characteristics – see below); the Mobiles are more likely to<br />

be male, middle class, earning an above average income and be aged 20-44 years<br />

old.<br />

The Engagers: people who engage with the Final at some level but stay in their<br />

home nation to watch it; the most engaged are likely to be existing rugby fans, and<br />

potentially fans of the teams from which players are drawn and spend money<br />

around the matches on e.g. food and drink, replica shirts and other merchandise<br />

etc.; the least engaged are likely to be aware of the tournament, may watch it given<br />

that it is the most prestigious northern hemisphere tournament and may spend on<br />

e.g. drinks and snacks, newspapers etc.; given the breadth and depth of people with<br />

an interest in rugby, it is difficult to characterise the demographic characteristics of<br />

the Engagers, although we can predict that large numbers of people talk about the<br />

tournament, read about it, watch it, spend around at and have at least some interest<br />

in it. However, those most engaged are likely to be from a high social grouping,<br />

reflecting the general socio-economic profile of those with an interest in rugby.<br />

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MasterCard Worldwide – Page 18<br />

MasterCard Six Nations Championship Rugby Report<br />

<br />

The Recession-Resisters: people and organisations who deliberately seek to engage<br />

with the Six Nations in some way in order to displace the pessimism associated with<br />

harsh economic conditions. Amongst these, people will engage with the tournament<br />

because it will help them to forget other problems they have which have been<br />

caused by economic hardship; people will engage because it excites them at a time<br />

of pessimism and concern. Amongst some organisations such as advertisers etc.,<br />

there will be a feeling that the tournament constitutes a safe-haven and good value<br />

for money given the exposure and profile it provides.<br />

Across the Northern hemisphere and the rest of the world, there is also considerable<br />

interest in the tournament. Although a categorisation of whom these interested parties<br />

are and what their interest in the tournament might be proves difficult, the following<br />

provides an indication:<br />

<br />

<br />

<br />

<br />

<br />

<br />

They may be fans of a player competing in the tournament<br />

They may be fans of the Six Nations<br />

They may be fans of a particular nation/ patriotic<br />

They may be fans of rugby generally<br />

They may be fans of sporting spectacle<br />

They may be fans of good entertainment<br />

As was identified above, there are likely to be a sizeable number of ‘Mobiles’ who travel<br />

to the host cities to watch matches, some of whom have (or secure upon arrival) match<br />

tickets.<br />

Others, who are more likely to be domestic fans, travel to watch the game in bars and<br />

cafes, or to experience the feeling of being associated with a major sporting event.<br />

Kurtzman (2005) identified that visitors to cities hosting major sporting events, can be<br />

classified in the following way:<br />

<br />

<br />

<br />

<br />

<br />

Preluders: visitors who travel to a host city ahead of a sporting event<br />

Attenders: visitors who travel to a host city specifically for a sporting event<br />

Retainers: visitors who remain in a host city after a sporting event has finished<br />

Residuals: visitors who return to a host city up to 24 months after a sporting event<br />

Continuers: visitors who return to a host city during a period 2-5 years after a<br />

sporting event<br />

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MasterCard Worldwide – Page 19<br />

MasterCard Six Nations Championship Rugby Report<br />

The work of Preuss et al. (2007) helped to further clarify these categories by identifying<br />

the following groups of visitor who travel to sporting events:<br />

<br />

<br />

<br />

<br />

Event visitors: those who travel to a host city specifically because of a sporting event<br />

Extensioners: those who travel to a host city anyway but stay longer because of a<br />

sporting event<br />

Home stayers: local residents who opt to stay in a host city and spend their money<br />

on attending a sporting event rather than on a vacation out of the region at some<br />

other time in the year<br />

Time switchers: those who wanted to travel to the host city at another time but<br />

bring their journey forwards to coincide with a sporting event<br />

On the basis of evidence presented elsewhere, this report proposes that the following<br />

groups of people associate themselves with the Six Nations:<br />

<br />

<br />

<br />

<br />

The Buzzers: people who arrive before the day of the match in order to get the buzz<br />

of being in the city, soak up the atmosphere and enjoy the experience; stay in local<br />

accommodation, as well as eating and drinking in the capitals; buy souvenirs and<br />

merchandise; may or may not have tickets upon arrival and may not necessarily<br />

make it to the stadium, instead watching the game in a bar or café.<br />

The Acclimatisors: people who arrive before the day of the match in order to<br />

establish themselves in the city before the match takes place and the majority of<br />

fans arrive; stay in local accommodation, as well as eating and drinking in the host<br />

city; visit local tourist attractions and buy souvenirs and merchandise; may or may<br />

not have tickets when they arrive but are intent on attending the match rather than<br />

watching from outside the stadium e.g. in a bar or café.<br />

The Instant Hitters: people who arrive in, and leave, the host city within a short<br />

space of time (possibly less than 24 hours); want to get the buzz of being in the city<br />

for the match, particularly if it’s their team against high profile opposition, soak up<br />

the atmosphere and enjoy the experience i.e. they either want, or only have time<br />

for, a short, sharp hit; likely to spend their money mainly on food and drink; may not<br />

have tickets upon arrival and may not necessarily make it to the stadium; likely to<br />

have other professional or domestic commitments that dictate their short stay in the<br />

city.<br />

The Late Landers: people who arrive in, and leave, the host city within a short space<br />

of time (possibly less than 24 hours) i.e. they land at the airport, eat, drink, watch<br />

the game and leave; spending focused on food and drink; may or may not have<br />

tickets when they arrive but are intent on attending the match rather than watching<br />

from outside the stadium e.g. in a bar or café; likely to have other professional or<br />

domestic commitments that dictate their short stay in the city.<br />

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MasterCard Worldwide – Page 20<br />

MasterCard Six Nations Championship Rugby Report<br />

<br />

<br />

<br />

<br />

The Indulgers: people who choose to stay in the city once the match is over; keen to<br />

immerse themselves in either the ecstasy of victory or the pain of defeat, and<br />

recognition by locals of either state; stay likely to be less than a week and<br />

expenditure will be focused on food, drink and merchandise; may not have a<br />

permanent base in the city and may or may not have attended the game; are keen<br />

to assert their credentials as true fans for staying once the main event is over.<br />

The Tourers: people who choose to stay in the city once the match is over; likely to<br />

enjoy the post-match atmosphere, and the recognition amongst locals that this<br />

brings; mainly stay in the city to sight-see and take in tourist attractions, possibly<br />

having brought forward a similar such trip or substituted the trip for another they<br />

were going to take elsewhere at a later date; focus of expenditure likely to be on<br />

accommodation, food, drink, tourist attractions and souvenirs.<br />

The Returners: people who return to the host city at least once in the period up to<br />

two years after the match; in the event of their team’s victory, return will be<br />

motivated by desire to relive the memory of winning; may also return to visit<br />

attractions they were unable to see or spent little time visiting around the time of<br />

the match; focus of expenditure likely to be on accommodation, entertainment,<br />

visitor attractions etc.<br />

The Long-Termers: people who return to the host city on more than one occasion in<br />

the period up to five years after the match; in the event of their teams victory,<br />

return will be motivated by desire to relive the memory of winning; may also return<br />

to visit attractions they were unable to see or spent little time visiting around the<br />

time of the match; may have a particular bond with the local area such as friends, a<br />

partner or a deep liking for the host city/country; focus of expenditure likely to be on<br />

accommodation, entertainment, visitor attractions etc.<br />

In addition to people visiting the host cities to watch or be associated with the Six<br />

Nations Championship, it is also likely that residents of the city, and from elsewhere in<br />

the host countries, contribute to the economic impact of the Championship. The group<br />

consists of people who are most likely to generate economic activity in the following<br />

areas:<br />

<br />

<br />

<br />

<br />

Ticket sales<br />

Transport<br />

Food and drink<br />

Merchandising<br />

For those people who travel from outside of the host cities, additional economic activity<br />

may be associated with accommodation and visits to tourist attractions.<br />

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MasterCard Worldwide – Page 21<br />

MasterCard Six Nations Championship Rugby Report<br />

SECTION 5: BROADCASTING<br />

The TV market has shown a keen interest in rugby in recent rights cycles with both the<br />

IRB Rugby World Cup and Six Nations Championship rights attracting higher sums. In<br />

France for example, the Six Nations’ broadcaster recently renewed its contract for €100<br />

million ($136.40 million, £90 million) over four seasons, an increase of 28%. The average<br />

audience for Six Nations matches is just over 3 million, while French Championship<br />

games attract approximately 500,000 viewers.<br />

Table 9: Current Contracts for Six Nations Broadcasting<br />

Value per year (million)<br />

Country Broadcaster € £ $ Terms<br />

UK BBC 44.00 39.79 60.01 2010-2013<br />

France<br />

France<br />

Televisions 25.00 22.61 34.09 2010-2013<br />

Ireland RTE 5.00 4.50 6.82 2010-2013<br />

Italy Sky Italia 10.00 9.00 13.64 2010-2014<br />

Source: SportCal, SportBusiness, National press<br />

In 2002 total viewing figures averaged just under 5 million per game, with no game<br />

exceeding 10 million viewers (RBS, 2008). By 2004, BBC reported average viewing figures<br />

of 4.1 million and by 2009 BBC coverage alone attracted record peak audience viewing<br />

figures averaging 6.2 million, and average viewing figures of 4.3 million per match,<br />

representing an increase of over a third since 2002.<br />

As table 10 shows, in 2009 Ireland v France, Wales v England, France v Wales and<br />

England v France all attracted an average audience of over 10 million across the six<br />

territories. In 2009, four of Ireland’s most watched sporting events on television were<br />

Six Nations games. According to the BBC, the 2009 Six Nations tournament reached – or<br />

at least was watched at some point – 65% of the population of Wales and 41% of the UK<br />

as a whole.<br />

The third weekend of the 2009 competition was the most viewed overall, attracting a<br />

total audience of 26,649,968.<br />

In the 2010 competition, the tournament is estimated to have been watched by 125<br />

million people across the UK, Ireland, France and Italy, with the France v Ireland, Wales<br />

v France and France v England matches attracting over 10 million viewers in total from<br />

the six participating nations. The final match of the tournament (France v England) is<br />

thought to have attracted almost 15 million viewers.<br />

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MasterCard Worldwide – Page 22<br />

MasterCard Six Nations Championship Rugby Report<br />

Table 10: Six Nations 2009 Average Audience Viewing Figures<br />

Match UK (BBC) France Italy (LA7) Ireland Total<br />

(France 2/3)<br />

(RTE)<br />

England v 4,600,000 2,175,310 994,479 262,000 8,031,789<br />

Italy<br />

Ireland v 4,800,000 5,323,785 411,007 702,,000 10,534,792<br />

France<br />

Scotland v 4,100,000 1,889,085 427,936 256000 6,673,021<br />

Wales<br />

France v 3,700,000 4,178,885 397,028 240,000 8,515,913<br />

Scotland<br />

Wales v 7,200,000 2,690,515 467,000 348,000 10,705,515<br />

England<br />

Italy v Ireland 2,900,000 2,003,575 749,720 558,000 6,211,295<br />

France v 4,400,000 5,896,235 327,586 384,000 11,007,821<br />

Wales<br />

Scotland v 3,100,000 1,717,350 633,311 230,000 5,680,661<br />

Italy<br />

Ireland v 6,100,000 2,690,515 282,971 888,000 9,961,486<br />

England<br />

Italy v Wales 2,900,000 1,889,085 709,238 230,000 5,728,323<br />

Scotland v 4,100,000 2,232,555 306,577 670,000 7,309,132<br />

Ireland<br />

England v 4,900,000 4,808,580 312,330 249,000 10,269,910<br />

France<br />

Italy v France 2,000,000 3,377,455 626,829 143,000 6,147,284<br />

England v 4,400,000 2,175,310 309,047 293,000 7,177,357<br />

Scotland<br />

Wales v 6,000,000 2,347,045 468,389 955,000 9,770,434<br />

Ireland<br />

TOTAL 65,200,000 45,395,285 7,423,491 6,408,000 124,426,776<br />

Average per 4,346,667 3,026,352 494,899 427,200 8,295,118<br />

game<br />

Source: Ofcom<br />

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MasterCard Worldwide – Page 23<br />

MasterCard Six Nations Championship Rugby Report<br />

Benefits of the Friday evening match<br />

A Friday night match (France v Wales) was introduced as part of a two year trial,<br />

following the success of Friday night matches in the IRB Rugby World Cup. 2009 viewing<br />

figures show that this was a popular decision, attracting the second highest total<br />

audience of the Championship.<br />

The Friday evening game was repeated for the reverse fixture (Wales v France) in the<br />

2010 event and has also proved extremely popular, with a live audience of around 10.5<br />

million viewers, including almost a quarter of the television audience share in France<br />

and approximately 65% in Wales (NB as the match was shown on BBC across the UK, not<br />

just Wales, the available figure cited is 17% of the UK total). Viewing figures suggest that<br />

this was the second most viewed match of the 2010 tournament.<br />

Comparing viewership<br />

In 2007, the year of the IRB Rugby World Cup in France, rugby replaced football at the<br />

top of the sports viewing charts in the majority of television markets across Europe.<br />

Matches from the IRB Rugby World Cup were the most watched events in France and<br />

the UK, according to the annual survey by TV Sports Markets. The biggest audience was<br />

attracted by France’s semi-final match against England which attracted 18.3 million<br />

viewers, the biggest sports audience in any of the 17 countries surveyed.<br />

ITV’s live coverage of Brazil v Ireland international football (Tuesday 2 March 2010)<br />

averaged just 3.3 million viewers, while the UEFA Cup match between Sporting Lisbon<br />

and Everton drew in an average of 1.6 million viewers on Channel 5 (25 February 2010).<br />

ITV1’s coverage of the UEFA Champions League match between Arsenal and Porto<br />

(Wednesday 17 February 2010) was watched by considerably more people, attracting<br />

average viewing figures of 4.8 million and a peak of 6 million viewers.<br />

In contrast, over 7 million viewers watched the BBC show the climax of the England v<br />

Wales Six Nations rugby match on the first weekend of the Six Nations Championship<br />

(Saturday 6 February). Live coverage of the rugby averaged 6.4 million viewers, and<br />

peaked at 7.3 million in the final 15 minutes of the game.<br />

It is estimated that revenue generated by the Six Nations Championship amounts to<br />

approximately 30% of total commercial revenues (including broadcast, marketing,<br />

ticketing and hospitality) earned by the domestic governing bodies from the premier<br />

rugby union competitions in the Northern hemisphere. The rest of the revenue is<br />

generated from the Autumn internationals and main club competitions (including<br />

Heineken Cup, Challenge Cup and domestic / cross-nation leagues).<br />

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MasterCard Worldwide – Page 24<br />

MasterCard Six Nations Championship Rugby Report<br />

As table 11 shows, Italy is the only country where the live broadcaster of the<br />

Championship is not a terrestrial channel. As rugby continues to grow in popularity and<br />

participation throughout Italy, pay per view channel Sky Italia has taken over the live<br />

broadcasting of the Six Nations from La7 from 2010. The channel also holds the rights to<br />

the IRB Rugby World Cup 2011, Tri Nations and the Heineken Cup. Early estimates show<br />

that while figures for live viewing of the matches in Italy are significantly lower than<br />

those of in 2009 3 , the delayed coverage on La7 combined with the live Sky Italia footage<br />

is likely to amount to figures very similar to those of last year. As would be expected, the<br />

matches involving Italy have proved to be Sky Italia’s most popular.<br />

Table 11: Exclusive television broadcasting rights to the championship<br />

Country 2002 – 05 2006 – 09 2010 – 13<br />

UK BBC BBC BBC<br />

Ireland RTE RTE RTE<br />

France France Televisions France Televisions France Televisions<br />

Italy La7 La7 Sky Italia<br />

Healthy sponsorship agreements<br />

Related to this increasing popularity, many major firms appear in rugby clubs' customer<br />

portfolios. For example, in France: Renault (Stade Français, Clermont), Axa (SF &<br />

Perpignan), Afflelou (Bayonne), Peugeot (Toulouse), Capgemini (Biarritz), Seat (Brive),<br />

Mercure (Castres), and Sony (Dax) among others.<br />

The French rugby union league has a number of loyal major partners: in 2008, all of its<br />

big contracts (Orange, EDF, PMU, GMF, and Société Générale) were renewed for an<br />

additional four years: a total of €12 million (£10.85, $16.36) per season. The French<br />

National team attracts major sponsorship revenue, with leading deals worth between<br />

€6m (£5.43m, $8.81m) and €9m (£8.14m, $12.27m) over 5 years. The Scottish national<br />

team also has several large sponsorships including with Murray International, which is<br />

worth £2.7 million (€3m, $4.07m) over 3 years. Welsh Rugby Union also recently signed<br />

a one-year extension to one of its leading sponsorship deals, amounting to a value of<br />

almost £500,000 (€553,000, $753,000)<br />

3 A similar situation was true in the 2001-2 season when England v Wales at Twickenham attracted a Sky<br />

Sports audience of under half a million. A year later the same teams in Cardiff attracted a BBC audience of<br />

6 million (Review of Free to Air Listed Events, 2009).<br />

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MasterCard Worldwide – Page 25<br />

MasterCard Six Nations Championship Rugby Report<br />

SECTION 6: PARTICIPATION<br />

While the game at the professional level is clearly healthy, with record attendances,<br />

sponsorship deals and television viewing figures, grass roots sport is a key part of the<br />

game, without which, the elite level could not exist. Following stagnation and decreases<br />

in participation and interest in rugby through the 1990s and early 2000, the governors of<br />

the game now see participation as the key to expansion.<br />

The Six Nations sides are well represented in terms of participation worldwide. England<br />

the world’s largest rugby playing nation (35% of the participants in the top ten rugby<br />

playing countries) and France is in third place with 272,000 (16%) players. Overall it is<br />

estimated that the game has grown by over 16% worldwide since the last rugby world<br />

cup; with England, the largest country, growing by over 4%. Table 12 sets out the<br />

number of participants in each major country divided into Adult, Youth and Mini/Junior<br />

categories as recorded by the IRB.<br />

Table 12: Estimated Rugby Participation in Top 10 Countries in 2008<br />

2004 2007 2008<br />

Adult Youth Mini/Jun Total<br />

Share<br />

(%)<br />

Share<br />

(%)<br />

Share<br />

(%)<br />

England 177 89 420 686 32.70% 37.60% 34.60%<br />

South<br />

Africa 69 144 274 487 30.30% 25.50% 24.60%<br />

France 91 106 75 272 11.50% 11.80% 13.70%<br />

New<br />

Zealand 29 38 62 129 6.70% 7.50% 6.50%<br />

Ireland 25 38 39 102 2.70% 5.00% 5.10%<br />

Australia 36 18 26 80 7.30% 3.70% 4.00%<br />

Argentina* 21 24 46 91 2.60% 2.90% 4.60%<br />

Italy 14 22 22 58 1.90% 2.40% 2.90%<br />

Wales 47 0 0 47 2.90% 2.30% 2.40%<br />

Scotland 11 13 8 32 1.40% 1.40% 1.60%<br />

Totals 520 492 972 1984 100.00% 100.00% 100.00%<br />

Source: IRB, RFU<br />

All Six Nations countries feature in the top ten for participation worldwide and there is<br />

estimated to have been overall growth in European participation of around 8% between<br />

2007 and 2010. England is the biggest market boasting over 2 million registered players,<br />

with 678,000 thought to be active, while the other six nations countries have<br />

experienced recent growth. Of the top ten, Argentina appears to be growing at the<br />

fastest rate, demonstrating similar development to that of Italy in the 1990s. Their<br />

addition to the Tri-Nations in 2012 will be timely.<br />

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MasterCard Worldwide – Page 26<br />

MasterCard Six Nations Championship Rugby Report<br />

The growth or decline in the number of clubs, shown in table 12, is interesting in that<br />

clear differences are seen between the nations which are still developing and those that<br />

are established. While the number of clubs in England and Ireland have stayed relatively<br />

constant, those in Italy have continued to increase, suggesting that the sport is gaining<br />

in popularity in new areas.<br />

However, the sizes of clubs are very different with those in Ireland servicing<br />

approximately 490 players each, while the average number of players at clubs in Italy is<br />

80. In terms of increases in participation, Italy has the strongest growth of the six unions<br />

with a 36% rise since 2007. This is to be expected as it started from the smallest base.<br />

Future growth would also be predicted following Italian sides joining the Magners<br />

League. The sport is enjoying greater popularity than ever before in terms of fans,<br />

players and media coverage, with rugby union especially popular in Rome, L’Aquila,<br />

Treviso, Milans, Genoa, Parma and Bologna. This surge in popularity has seen a large<br />

improvement in the domestic player quality in Italy which has in turn led to a flow of<br />

Italian players being bought by other European clubs.<br />

Table 13: Number of Registered Clubs and Players in the Six Nations<br />

Nation Clubs (2010) Clubs (2008) Registered players<br />

France 1,734 1,683 273,084<br />

England 1,900 1,900 2,146,140<br />

Italy 744 718 61,487<br />

Ireland 207 208 152,830<br />

Scotland 241 234 32,817<br />

Wales 325 239 46,324<br />

TOTAL 2,712,682<br />

Source: IRB<br />

Table 14: Estimated Participation Growth from 2007 – 2010<br />

Nation<br />

% Growth<br />

Italy 36<br />

Ireland 33<br />

Scotland 32<br />

France 22<br />

Wales 10<br />

England 5<br />

Source: BARB, Media Guardian, Sportcal<br />

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MasterCard Worldwide – Page 27<br />

MasterCard Six Nations Championship Rugby Report<br />

The growth in participation figures for the other Six Nations countries can be explained<br />

in a number of ways:<br />

As the largest rugby playing nation it is difficult for participation figures to grow<br />

substantially. Success in the IRB Rugby World Cup 2003 provided the catalyst for further<br />

development of the game in England and was built upon by reaching the Final in 2007.<br />

Participation rates have been steadily increasing in the years following. With this has<br />

been increased investment in facilities and infrastructure to ensure that clubs can be<br />

well run.<br />

For France, the IRB Rugby World Cup 2007 generated an unprecedented interest in<br />

rugby in France and participation since has grown. Rugby in France has a highly<br />

geographically specific constituency, with most clubs located in south-western and<br />

southern France, or in Paris.<br />

Scotland too has a rugby heartland traditionally based in the border regions. However,<br />

the two Magners League sides are based in Glasgow and Edinburgh and there has been<br />

a year-on-year growth in rugby participation, at both adult and youth levels. The SRU<br />

restructured in 2006 introducing new initiatives to encourage engagement, and<br />

following this, participation has been growing strongly at both the junior and adult<br />

levels.<br />

Though the headline figures are healthy, they mask to a certain extent some of the<br />

challenges the governing bodies are facing. In England for example, while 72% of the<br />

active participants are involved in the mini/junior game, there is a sharp decline at the<br />

youth level (13%, the lowest of all of the top ten), suggesting that in the past the game<br />

has found it difficult to retain their players as they enter their teens, but have a good<br />

recovery in participants returning to the game as adults shown in table 15.<br />

Table 15: Participation by Age<br />

Adult Youth Mini/Jun<br />

England 25.80% 13.00% 61.20%<br />

South<br />

Africa 14.20% 29.60% 56.30%<br />

New<br />

Zealand 33.50% 39.00% 27.60%<br />

France 22.50% 29.50% 48.10%<br />

Australia 24.50% 37.30% 38.20%<br />

Ireland 45.00% 22.50% 32.50%<br />

Wales 23.10% 26.40% 50.60%<br />

Scotland 24.10% 37.90% 37.90%<br />

Italy 34.40% 40.60% 25.00%<br />

Totals 26.20% 24.80% 49.00%<br />

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MasterCard Worldwide – Page 28<br />

MasterCard Six Nations Championship Rugby Report<br />

Table 16: Participation by Gender (%)<br />

Country Mini/Jr<br />

Male<br />

Mini/Jr<br />

Female<br />

Youth<br />

Male<br />

Youth<br />

Female<br />

Adult<br />

Male<br />

Adult<br />

Female<br />

Overall<br />

Male<br />

Overall<br />

Female<br />

France 97 3 97 3 95 5 96 4<br />

England 91 9 100 0 99 1 99 1<br />

Italy 90 10 97 3 94 6 94 6<br />

Ireland 90 10 95 5 90 10 92 8<br />

Scotland 99 1 97 3 93 7 96 4<br />

Wales 99 1 97 3 96 4 97 3<br />

While proportionately rugby is very male dominated, there is evidence of an increasing<br />

numbers of girls being involved at young ages. New formats and versions of the game<br />

have made rugby more accessible for females, with many young girls playing tag and<br />

touch rugby up to the age of 13 within a mixed gender environment in clubs and<br />

schools.<br />

Rugby appears to be most popular for girls in Ireland. However the proportions do not<br />

translate directly to attendance at rugby matches where the percentage of female fans<br />

is much higher. Overall, there are more participating rugby players in the Leinster region<br />

(57,001) than anywhere else in Ireland (the next is Ulster with 44,216);<br />

Growth in participation is a key aim for all of the national federations with each putting<br />

strategies in place to achieve this. This is also likely to have an impact on the<br />

demographics of those playing and watching rugby as targeting different groups will<br />

lead to a broader base of fans across all social groups.<br />

The inclusion of Rugby Sevens in the Olympic programme is also likely to have a positive<br />

effect. The socio-economic benefits of sports participation have been particularly<br />

prominent in recent years as the benefits of health and social cohesion are increasingly<br />

identified as important. Estimates suggest that an increase in participation in sport for at<br />

least 1 hour per week of 10% overall for the UK would lead to a reduction in health<br />

spending of in the region of £100m (€110.57m, $150.79m).<br />

The World Health Organisation has provided evidence of the link between people's<br />

physical activity and their health. However, trends show that young people in particular<br />

are not doing enough physical exercise and that a growing number of young people are<br />

affected by obesity. A recent Eurobarometer survey suggests that only 15% of youths<br />

are active in sports and that the average EU citizen spends more than six hours per day<br />

seated.<br />

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MasterCard Worldwide – Page 29<br />

MasterCard Six Nations Championship Rugby Report<br />

Overall, the number of children not participating in any sporting activity is constantly<br />

rising across the Northern hemisphere. In response to the perceived benefits and the<br />

debate on how to boost sports participation, governing bodies, with the support of<br />

national governments, are making a concerted effort to engage with communities and<br />

their potential fans and future players.<br />

Clearly the economic impact of rugby in the Six Nations countries must not be ignored<br />

both in terms of economic impact from rugby events and also utilisation of stadia for<br />

other activities which generate large sums for the local economy as well as the<br />

additional benefits accruing from increased participation and the knock on effect on<br />

health and public services.<br />

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MasterCard Worldwide – Page 30<br />

MasterCard Six Nations Championship Rugby Report<br />

SECTION 7: CONCLUSIONS<br />

The Six Nations Championship is one of the world’s most important sporting events and<br />

one of the most popular events of its sort in the world.<br />

Not only does the tournament routinely attract around 1 million visitors (an estimated<br />

1,054,654 in 2010) to its host cities each year, television viewing figures show that the<br />

tournament may be watched by as many people as 125 million people worldwide.<br />

Added to this there are large numbers of people who buy related merchandise,<br />

consume food and drink in and around the venues, read about it in newspapers and<br />

magazines and place bets on the outcome of matches, as well as large numbers of<br />

officials and commercial partners travelling to the matches.<br />

This means that the tournament represents a bonanza for a range of organisations from<br />

the nations taking part through to sportsware manufacturers and venue managers at<br />

the stadiums in which matches take place.<br />

The economic impact of the tournament is therefore profound; it is financially<br />

significant, reverberates across time and spans international boundaries.<br />

The profile and significance of the Northern hemisphere’s premier rugby competition<br />

retains a value that places it alongside the most valuable other sport events properties<br />

in the world. The fact that this is an annual event makes the impact even more<br />

significant.<br />

For many industries, and indeed for sports, the economic downturn has had a profound<br />

effect, resulting in unprecedented levels of pessimism. However, as major events such<br />

as football’s UEFA Champions League Final and the NFL Superbowl have shown, major<br />

sporting events are of such a nature that they can be recession busting in their impact.<br />

Indeed, further evidence suggests fans, broadcasters and commercial partners seek safe<br />

havens during times of economic hardship. That is to say they consume or invest in<br />

products that provide them with the best value for money.<br />

One can therefore argue that rugby properties provide this value, with signs that<br />

corporates are again engaging with the sport and the Six Nations Championship.<br />

While the tough economic climate has of course had an impact on demand with 2009<br />

estimates suggesting it was harder to sell tickets and hospitality, there are signs that the<br />

tournament is emerging from those hard times stronger, adapting by necessity to create<br />

more bespoke offerings for fans which can attract a premium fee.<br />

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MasterCard Worldwide – Page 31<br />

MasterCard Six Nations Championship Rugby Report<br />

It is also likely that the prestige and profile of the tournament has caused more people<br />

to buy into the event as it provides an escape from the tough economic conditions.<br />

Rugby fans tend to be young, males with a relatively high disposable income and travel<br />

in large numbers. Additionally, the fact that the majority of rugby consumers belong to<br />

the highest socio-economic groups means that events such as the Six Nations are<br />

rebounding from the recession more quickly.<br />

Even when people chose not to travel to the host cities to be at the event in person<br />

during the worst of the downturn, the TV audience figures showed that the spectacle<br />

has remained popular, with record numbers of fans tuning in.<br />

This also results in the generation of economic and commercial activity, based around<br />

for example, expenditure on food, beverages and merchandise. It is also essential to<br />

note that the vast majority of the reduction in fans travelling will be those without<br />

tickets – as the attendance figures show demand is still high with the stadiums filled<br />

close to capacity and in some cases could have been sold out more than once.<br />

The TV market for rugby is stronger than ever, with assessments suggesting record<br />

numbers of viewers are tuning in to matches across the host nations. This is in line with<br />

the increases in rights fees received for the competition.<br />

While live viewing figures for Italy are significantly lower following the move away from<br />

terrestrial TV, there is a commitment from the broadcaster (Sky Italia) to a range of<br />

rugby events which will doubtless engage the Italian viewers. The slightly delayed<br />

terrestrial coverage has proved very popular.<br />

The addition of a Friday night fixture has proved popular overall. While there are<br />

inevitable difficulties for fans to travel on a work day, and for transport networks to<br />

cope with the demand, the fixture still proved very popular with a sell-out crowd,<br />

including a strong away contingent.<br />

The timing is certainly not thought to have had an adverse effect on attendance or<br />

spend, particularly given that French fans may have been inclined to stay longer in the<br />

Welsh capital and surrounding area for the weekend after the match. The Friday night<br />

timing, while new for the tournament, is a proven popular slot in both the Magners<br />

League and LNF and it is expected that this will be kept for future editions of the<br />

tournament.<br />

Similarly, the Friday night fixture has been popular with the TV audience, with estimates<br />

suggesting that it was the second most watched game of the tournament with 10.5<br />

million viewers across the six participating nations, behind only the France v England<br />

finale to see if France could secure the Grand Slam.<br />

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MasterCard Worldwide – Page 32<br />

MasterCard Six Nations Championship Rugby Report<br />

Compared to some recent televised football games in the same territories, the Six<br />

Nations has been extremely popular. In fact, this continues the general trend shown in<br />

2007 when the IRB Rugby World Cup replaced football at the top of the sports viewing<br />

charts in the majority of television markets across Europe for that year.<br />

The six competing nations have very different relationships with rugby. While in Wales it<br />

is the national sport and televised matches can attract two thirds of the audience share,<br />

in other nations though popular overall, there tend to be pockets of regions that are<br />

rugby fans in terms of both participation and viewing.<br />

Participation overall is growing strongly with the Six Nations unions all recording<br />

significant growth over the past decade. As the strategic plans are implemented by the<br />

governing bodies of rugby it is expected that more and more people from ethnic<br />

minorities, lower social groups and females will become engaged.<br />

While rugby is experiencing great popularity on all fronts, with passionate fans travelling<br />

in large numbers, it is important that the custodians of the game do not become<br />

complacent. With the commercial revenues of high profile competitions providing much<br />

needed resources to the grass roots level, it is important that the governing bodies are<br />

able to respond to changing preferences and opportunities. Embracing different formats<br />

of the game are evidence of this already occurring.<br />

The addition of Sevens Rugby to the Olympic programme for Rio 2016 is likely to have a<br />

great impact in promoting the sport around the world and have knock on effects on<br />

participation.<br />

Increases in participation displayed by the Six Nations countries alone are likely to save<br />

the economy millions through the reduction in obesity and health improvements as well<br />

as benefits for community cohesion through reductions in crime and anti-social<br />

behaviour.<br />

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MasterCard Worldwide – Page 33<br />

MasterCard Six Nations Championship Rugby Report<br />

SECTION 8: METHODOLOGY<br />

MasterCard commissioned the Centre for the International Business of Sport (CIBS) in<br />

Coventry University, England, to develop a report that examines the economic impact of<br />

the 2010 RBS Six Nations Championship and associated demographic trends.<br />

CIBS:<br />

Compared the tournament with other major sports events, with particular reference<br />

to analysis of attendance, TV audience, visitor spend and other economic indicators<br />

Reviewed previous economic impact studies of the tournament<br />

Calculated an estimate of the economic impact of the 2010 competition at the<br />

national level for the six host countries by collating data then calculating the direct<br />

and indirect expenditure<br />

Appropriate benchmarks have been sourced from previous economic impact studies<br />

where available, to aid interpretation and ensure consistency. Information presented in<br />

previous published reports has been extracted in order to model the economic impacts.<br />

In addition, a wide variety of publicly available data has been provided by organisations<br />

including the International Rugby Board (IRB) and national federations, and in annual<br />

reports as well as data accessed through sources such as Mintel and EBSCO.<br />

In all cases we have relied upon existing data to be correct and have not carried out<br />

additional audit of them.<br />

Please note, all USD, GBP and EUR currencies are calculated using www.xe.com.

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