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SIR KEITH MILLS<br />

On the America’s Cup and<br />

changing sport’s rules on<br />

environmental engagement<br />

AHMED HUSSEIN<br />

On the economic and<br />

strategic aims behind Abu<br />

Dhabi’s sporting expansion<br />

PAUL SAMUELS<br />

On sporting responsibility<br />

and making sponsorship<br />

sales easier, not harder<br />

ISSUE No. 152 • 12.09<br />

SportBusiness <strong>International</strong> • Issue No. 152 • 12.09<br />

TOP<br />

BLATTER HEADS ‘MOST INFLUENTIAL’ POLL<br />

MAN<br />

INFORMATION, INSIGHT AND ANALYSIS FOR THE GLOBAL SPORTS SECTOR


WHERE SPORT<br />

MEETS<br />

SportAccord is the new collective name for over 100 member associations including <strong>International</strong> Sports Federations<br />

and Rights Holders. Together, they award rights to more than 1,000 <strong>International</strong> Sports Events each year.<br />

The SportAccord <strong>International</strong> Convention is your annual opportunity to meet them and the global sport business<br />

community to exchange ideas and create partnerships that will define and shape the future of sport.<br />

If you only attend one networking event in 2<strong>01</strong>0, make sure it counts.<br />

www.sportaccordconvention.com<br />

DUBAI<br />

25 – 30th April 2<strong>01</strong>0<br />

ATLANTIS HOTEL, THE PALM<br />

SportAccord Convention 2<strong>01</strong>0 Gold Sponsors:


12.09 CONTENTS<br />

SportBusiness <strong>International</strong> • No. 152 • 12.09<br />

REGULARS<br />

08 Agenda<br />

Looking ahead, comment<br />

and analysis<br />

14 Brands and Marketing<br />

Visa renews with the IOC and<br />

US professional teams join<br />

forces to beat the recession<br />

18 Media<br />

The EPL’s success in Asia<br />

and growing boxing’s reach<br />

22 Events<br />

Events the NFL way, Qatar’s<br />

2<strong>01</strong>8 ambition and ticketing<br />

26 Headliner<br />

Sir Keith Mills,<br />

Principal, TEAM ORIGIN<br />

66<br />

VOICES<br />

PAGE 26<br />

“This has been an unhappy period for the<br />

Americas Cup which is indicative of the<br />

fact it is governed by an out of date<br />

structure. There is a ground swell of<br />

opinion - including the Defender and the<br />

Challenger - that a new governance<br />

structure needs to be put in place.”<br />

Sir Keith Mills<br />

Principal, TEAM ORIGIN<br />

26<br />

22<br />

70 Big Debate<br />

Which incidents have had<br />

the greatest impact on the<br />

business of sport in 2009<br />

72 Most Influential...<br />

Sport ’s Top 20 People<br />

82 People<br />

Mark Hargreaves, COO,<br />

Knowledge MGI<br />

FEATURES<br />

30 It’s All in a Name<br />

The fresh thinking driving naming rights deals<br />

34 Shaping up to the 21 st Century<br />

The stadia, arena and facilities pushing boundaries of innovation<br />

38 The Gold Standard<br />

The SportBusiness Sports Event Management Awards<br />

48 Motoring On<br />

The lowdown on F1, Rally, Nascar, MotoGP and SuperBikes<br />

62 Jumping for Success<br />

Rights Focus: Jump Racing<br />

66 An Increasing Influence<br />

<strong>International</strong> Focus: The Middle East<br />

PAGE 66<br />

“It’s a good start for motor sport in Abu<br />

Dhabi. To compete in [the wider]<br />

economic sense, we need these kind of<br />

activates as a catalyst to build more<br />

infrastructure for better growth.”<br />

Ahmed Hussein,<br />

Head of Sports & Events Marketing,<br />

Abu Dhabi Tourism Authority<br />

PAGE 70<br />

“Commercially it is going to be another<br />

tough year. Teams, governing bodies<br />

and owners are going to have to<br />

perform, behave and play by the rules<br />

- they need to make the sponsorship sell<br />

easier not harder.”<br />

Paul Samuels,<br />

Executive Director,<br />

AEG Sponsorship<br />

62


UPDATA 12.09<br />

www.sportbusiness.com<br />

DEAL oF THE MoNTH<br />

Global financial services<br />

provider Barclays agreed a<br />

three-year deal to extend its<br />

title sponsorship of the English<br />

Premier League.<br />

About the deal<br />

Barclays has been sponsor of<br />

the Premier League since 20<strong>01</strong>,<br />

using its Barclaycard brand from<br />

20<strong>01</strong> to 2004. The deal <strong>cover</strong>s<br />

the global title sponsorship<br />

of the Premier League and<br />

includes exclusive worldwide<br />

marketing rights, UK and<br />

international TV programme<br />

accreditation, extensive<br />

advertising packages, matchday<br />

tickets and hospitality. Barclays<br />

will also continue to include the<br />

biennial pre-season tournament,<br />

the Barclays Asia Trophy.<br />

What drove the deal<br />

“The Barclays Premier League<br />

sponsorship has been very<br />

successful for Barclays and<br />

the strategic fit is stronger<br />

than ever. The sponsorship is a<br />

very important element of our<br />

marketing mix and provides a<br />

cost effective method to market<br />

our organisation, helping us in our<br />

ambition to be one of a handful of<br />

banks leading the global financial<br />

services industry,” said Barclays<br />

president Robert E. Diamond Jr.<br />

What’s it worth<br />

$134.5 million over three years.<br />

ToP 30 SPoNSoRSHIP DEALS: OCTOBER 2009<br />

Sponsor Value Duration Deal<br />

No Sponsor Industry Country Event or Activity type ($m) (years) type<br />

1 Barclays Financial Services - Banking UK Barclays Premiership Event 134.5 3 R<br />

2 Staples Office Equipment USA Staples Center Organisation 100+ R<br />

3 ING Financial Services - Banking Netherlands Holland Team 40 8 N<br />

4 Mars Financial Services - Other UK English Football Association Organisation 40 5 N<br />

5 Thomas Cook Travel UK London Olympics 2<strong>01</strong>2 Tier Two sponsor Event 35 3 N<br />

6 Garmin Consumer Electronics USA Garmin-Slipstream Team 18 3 R<br />

7 Repsol Oil/Petrol <strong>International</strong> Honda team in Moto GP Team 16 1 R<br />

8 Enterprise Rent-A-Car Car Rental USA NHL Organisation 12 3 N<br />

9 Puma Clothing - Sports Czech Republic Tomas Rosicky Personality 10+ N<br />

10 TW Steel Watches/Timing <strong>International</strong> Renault Team 10+ 3 N<br />

11 Mercedes Cars/Automotive USA US Open Event 10+ 4 N<br />

12 Babolat Clothing - Sports USA Andy Roddick Personality 10 4 R<br />

13 Nordea Financial Services - Banking Sweden Scandinavian Masters Event 9 3 N<br />

14 adidas Clothing - Sports UK Scottish Football Association Team 8 4 N<br />

15 Lindt Food - Confectionery <strong>International</strong> Roger Federer Personality 7.5 5 N<br />

16 Jacobs Creek Drinks - Wine Australia Australian Open Event 7.5 3 N<br />

17 Rolex Watches/Timing USA Andy Roddick Personality 5 - 9.9 R<br />

18 Valero Energy Energy/Power/Gas/Electricity USA Alamo Bowl Event 7.2 4 R<br />

19 Omega Watches/Timing Dubai Dubai Desert Classic Event 6 5 N<br />

20 Ford Cars/Automotive New Zealand New Zealand Cricket Team 5.4 3 N<br />

21 FedEx Couriers/Freight Europe Heineken Cup Event 5 4 R<br />

22 Efes Pilsener Drinks - Beer <strong>International</strong> Euroleague Basketball Event 4.2 3 R<br />

23 Friends Provident Financial Services - Insurance UK Friends Provident T20 Event 4 N<br />

24 McDonalds Restaurants Thailand Thailand Team 2.96 N<br />

25 John Smith’s Drinks - Beer UK John Smith’s Grand National 2<strong>01</strong>1 to 2<strong>01</strong>3 Event 2 3 R<br />

26 Visa Financial Services - Credit Cards UK Olympic Games Event 2 3 R<br />

27 Fujitsu General Engineering UK V8 Supercar Series Event 2 2 R<br />

28 Copart Cars/Automotive USA Roush Fenway Racing Team 2 1 N<br />

29 UMB Bank Colorado Financial Services - Banking USA Denver Botanic Gardens’ amphitheater Organisation 1 - 2.49 3 N<br />

30 Totinos Pizzas Restaurants USA Winter Dew Tour Event 1 - 2.49 1 N<br />

Notes: Fees are reported/estimated. (N) - New deal; (R) - Renewal<br />

Source: The World Sponsorship Monitor produced by Sports Marketing Surveys. Contact: nigelg@sportsmarketingsurveys.com<br />

SNAPSHoT<br />

BETTING INDUSTRY GRoWING STRoNG IN SHIRT SPoNSoRSHIPS<br />

Football shirt sponsorships<br />

have defied the credit crunch<br />

and stabilised across Europe’s<br />

six key leagues at a total of<br />

€395.5 million, according to<br />

SPORT+MARKT’s 11th European<br />

Jersey Report.<br />

Banking / Financial services / insurance<br />

Energy Supplier<br />

Telecommunications<br />

Betting/ Lottery<br />

Travel/ Tourism/ Accomodation<br />

Others<br />

The betting industry has been a<br />

driving force in avoiding a fall in<br />

value in the shirt sponsorship<br />

market for the 2009-10 season,<br />

despite operators having to<br />

find their way around betting<br />

restrictions in certain European<br />

markets, including France.<br />

“With the international exposure<br />

of English and Spanish teams,<br />

they provide a perfect global<br />

advertising platform to reach<br />

football fans across all markets,<br />

worldwide,” said Gareth Moore,<br />

SPORT+MARKT <strong>International</strong><br />

Sales Director.<br />

29.0<br />

43.4<br />

48.3<br />

Source: SPORT+MARKT European Jersey Report 2009/10<br />

142.8<br />

Total<br />

395.5m<br />

56.4<br />

75.6<br />

4 SportBusiness <strong>International</strong> • No.152 • 12.09


UPDATA 12.09<br />

FERRARI SLUMP SEES RATINGS PLUMMET<br />

FoRMULA oNE television<br />

audiences in Spain and Italy<br />

fell drastically in the 2009<br />

season, reflecting disappointing<br />

performances by Spanish driver<br />

Fernando Alonso and Italian<br />

constructor Ferrari, which suffered<br />

its worst season in 16 years.<br />

According to the latest sports<br />

viewing survey from Eurodata TV<br />

Worldwide and TV Sports Markets,<br />

the big falls in Spain and Italy<br />

were partly counterbalanced by<br />

a significant lift in UK audiences.<br />

Viewership in the other two top<br />

European markets, France and<br />

Germany, remained broadly stable.<br />

Audiences in Spain dropped<br />

29 per cent on 2008, with Alonso’s<br />

worst-ever season coinciding with<br />

<strong>cover</strong>age shifting from what was<br />

the country’s leading commercial<br />

broadcaster, Telecinco, to smaller<br />

rival La Sexta. La Sexta’s live<br />

<strong>cover</strong>age averaged just under<br />

three million viewers per race.<br />

Audiences for Italian publicservice<br />

broadcaster Rai’s <strong>cover</strong>age<br />

fell 21 per cent against 2008, when<br />

Average live television audiences for Formula one<br />

Market 2009 season 2008 season % change<br />

000s Share (%) 000s Share (%) 08 v 09<br />

France 3,119 30.4 3,096 29.2 +0.74<br />

Germany 5,206 38.2 5,145 39.0 +1.19<br />

Italy 5,587 40.3 7,1<strong>01</strong> 50.0 -21.32<br />

Spain 2,962 31.1 4,194 46.0 -29.38<br />

UK 4,743 47.7 4,079 41.0 +16.3<br />

Sources: TV Sports Markets, Eurodata TV Worldwide / Mediametrie - BARB - AGF/Gfk<br />

Fernsehforschung - AUDITEL - TNS Audiencia de Medios - All Rights Reserved<br />

Ferrari won the championship,<br />

averaging some 5.6 million viewers<br />

per race.<br />

In the UK, Jenson Button’s<br />

championship season provided<br />

a perfect start for public-service<br />

broadcaster the BBC, which took<br />

over the rights at the start of this<br />

year from commercial rival ITV.<br />

In France, audiences for<br />

commercial broadcaster TF1 rose<br />

less than one per cent to<br />

3.1 million. Some 33 per cent of<br />

the audience was women, slightly<br />

lower than the gender split for<br />

Champions League football, where<br />

35 per cent of TF1’s audience is<br />

women. In Germany, RTL averaged<br />

5.2 million viewers per race, with<br />

the penultimate race of the season<br />

in Brazil attracting the season-high<br />

of 7.2 million viewers and a<br />

28-per-cent audience share.<br />

The full 2009 F1 season’s viewing will<br />

be released in the Yearly Sport Key<br />

Facts Special Report from Eurodata<br />

TV Worldwide/Mediametrie.<br />

Eurodata TV Worldwide is the leading<br />

provider of sports television audiences,<br />

with access to ratings and programming<br />

details for 2,000 channels over five<br />

continents. Eurodata TV Worldwide<br />

offers a range of services to help clients<br />

successfully market TV programmes and<br />

monitor their broadcasts.<br />

Florent Simon<br />

Eurodata TV Worldwide Sport Manager<br />

Email: fsimon@eurodatatv.com<br />

Tel: +33 171 099 307<br />

TVSPORTSMARKETS<br />

TV Sports Markets is No.1 for the<br />

business of TV sports. With its unrivalled<br />

knowledge of TV rights deals and<br />

markets around the world, it provides<br />

market-leading analysis of the sector<br />

in a range of publications and bespoke<br />

research products.<br />

Ben Speight<br />

Head of Research, TV Sports Markets<br />

Email: ben@tvsportsmarkets.com<br />

Tel: +44 207 954 3505<br />

SportBusiness <strong>International</strong> • No.152 • 12.09 5


www.sportbusiness.com<br />

SPORTBUSINESS IN NUMBERS


COMMENT<br />

“The deal <strong>cover</strong>s all territories<br />

where the Festival of Christmas is<br />

celebrated. This is a true partnership.<br />

Boogaloogaloo Santa will become far<br />

more efficient as a result of the deal.”<br />

PUBLISHING<br />

Editorial Director:<br />

Kevin Roberts<br />

newsdesk@sportbusiness.com<br />

Editor:<br />

Miriam Sherlock<br />

Designer:<br />

Charlie Thomas<br />

Production Manager:<br />

Craig Young<br />

production@sportbusiness.com<br />

Production Assistant:<br />

Laura Head<br />

Publishing Director:<br />

Philip Savage<br />

<strong>International</strong> Business<br />

& Sales Director:<br />

Stuart Lewis<br />

Marketing Manager:<br />

Shona ODonnell<br />

Advertising Sales:<br />

Adam Colthorpe<br />

Cyril Dujacquier<br />

mediateam@sportbusiness.com<br />

Information Sales Manager:<br />

Adam Barker<br />

Sales Executives<br />

Alfie Waring<br />

Emile Ben-Atar<br />

Brian Williams<br />

Chris Beadle<br />

Subscriptions and<br />

Information Sales:<br />

subs@sportbusiness.com<br />

T: +44 (0) 20 7954 3481<br />

www.sportbusiness.com<br />

Published by:<br />

SportBusiness, a division of SBG<br />

Companies Ltd, 33 - 41 Dallington<br />

Street, London, EC1V 0BB,<br />

T: +44 (0) 20 7954 3515,<br />

F: +44 (0) 20 7954 3511,<br />

www.sportbusiness.com<br />

Cover Photo: Getty Images Sport<br />

Printed in the UK by:<br />

The Magazine Printing Company<br />

www.magprint.co.uk.<br />

SportBusiness <strong>International</strong><br />

is published monthly © SBG<br />

Companies Ltd 2009. All rights<br />

reserved. No part of this publication<br />

may be reproduced or transmitted<br />

in any form or by any means, or<br />

stored in any retrieval system of<br />

any nature without prior written<br />

permission, except for permitted<br />

fair dealing under the Copyright<br />

Designs and Patents Act 1988.<br />

Application for permission for use<br />

of copyright material including<br />

permission to reproduce extracts<br />

in other published works shall<br />

be made to the publishers. Full<br />

acknowledgement of author,<br />

publisher and source must be given.<br />

ISSN 1757-5346.<br />

KEVIN ROBERTS ON THE DIFFICULTIES IN GENERATING NEW REVENUES<br />

WHILE SECURING THE CONTINUED SUPPORT OF THE FANS...<br />

THE GLOBAL MARKETING COMMUNITY applauded<br />

a significant breakthrough in late November when<br />

emerging Asian search engine operator Boogaloogaloo<br />

announced a wide-ranging deal with the government of<br />

Lapland to become title sponsor of Santa and his portfolio<br />

of elves, reindeer and other helpers.<br />

A key element of the agreement is an initial five-year<br />

naming rights deal for Santa’s Grotto which will become<br />

known as: The Grotto@boogaloogaloo.com.<br />

All lead reindeer, including the world-famous Donner<br />

and Blitzen are included in the multi million Dollar<br />

agreement, although Rudolph, who remains under<br />

contract to the Red Nose Organisation, is excluded.<br />

“This is an excellent deal for Boogaloogaloo,” said<br />

its CEO. “It is the result of painstaking market research<br />

which revealed that to compete in a global marketplace<br />

we had to take steps to gain brand recognition and real<br />

traction among the key 5-12 years age group. After all,<br />

children are our future.”<br />

“The deal <strong>cover</strong>s all territories where the Festival of<br />

Christmas is celebrated or where Santa is recognised.<br />

And that represents most of the world. This is a true<br />

partnership. Boogaloogaloo Santa will become far more<br />

efficient as a result of the deal. Our technology will enable<br />

kids to enter an on-line examination to determine whether<br />

they have been Good or Bad in the previous 12 months.<br />

The results of these will determine what types of presents<br />

they will be allowed to select from the offerings of the<br />

specially chosen and quality controlled suppliers chosen<br />

by and accessed via Boogaloogaloo.com<br />

“Once verified by Boogaloogaloo chief Elf, their<br />

gifts choices will be delivered by a sleigh guided by<br />

our specially developed SantaNav. This eliminates the<br />

possibility of children being disappointed by receiving the<br />

wrong presents.”<br />

A spokesman for the Lapland government, Mr S. Kimo,<br />

described the deal as “a truly mould-breaking partnership<br />

which will change the face of Christmas.” Asked by<br />

journalists to comment on the moral stability of Santa - who<br />

has previously been caught Kissing Mummies under the<br />

Mistletoe and drinking Sherry - Mr Kimo said: “We have<br />

no concerns. This is dealt with by a part of the agreement<br />

known as the Santa clause. This provides strict guidelines for<br />

Santa’s behaviour 365 days a year. We want him to be a proud<br />

ambassador for Lapland and Boogaloogaloo and to share and<br />

exemplify our brand values…whatever those may be.”<br />

The Boogaloogaloo deal is widely seen as pushing<br />

the sponsorship envelop in new directions and has been<br />

described in some quarters as ‘simply unbelievable.’ In<br />

fact, that scenario may be slightly more believable than<br />

an earlier deal which saw Mike Ashley, owner of English<br />

second tier football club Newcastle United announcing<br />

that the club’s historic stadium was to be named for his<br />

company, Sports direct.<br />

In an inelegant attempt at compromise, the ground is<br />

now known as sportsdirect.com@StJames’Park, a move<br />

which flies in the face of common sense, respect for fans<br />

and more or less every chapter in the Sponsorship text book.<br />

It is not our job to lecture Mike Ashley on making money.<br />

While accepting that there may be some clever<br />

accountancy reasons for the Sports Direct naming rights<br />

deal, it appears to fall down in more or less every other<br />

respect. Let’s start with the fans…who hate it. Newcastle<br />

is a one club city and the passion for everything Black<br />

and white runs deep. For the fans, St James’ Park means<br />

something special and the addition of an ugly commercial<br />

moniker is seen as desecration.<br />

Second, if the fans aren’t going to embrace the new<br />

name you can be sure that the media won’t. It’s difficult<br />

to imagine a single broadcaster referring to the ground<br />

by its new name. You can lead media horses to water but<br />

not make them drink. Legend has it that when Fosters<br />

first sponsored The Oval cricket ground, the BBC taped a<br />

notice to the commentary box wall reminding its staff that<br />

‘This Is The Oval -Not The Fosters Oval.<br />

Attitudes have, of course, relaxed significantly over the<br />

years and the media is now far more comfortable with the<br />

use of commercial names. But the fact remains that they<br />

really only seem natural when the facility in question has<br />

absolutely no history (see feature on pages 30-32). At a new<br />

facility, fans can embrace the sponsors, maybe even feel a<br />

little grateful that their cash has helped in some way with<br />

the creation of the stadium of arena. But to impose a name<br />

- particularly such a clumsy one - on a much loved and<br />

revered venue is simply asking for trouble. In many ways it’s<br />

the equivalent of sticking two fingers up at your customers.<br />

But looking on the bright side, even Newcastle United<br />

doesn’t have to deal with the same issues as the Colorado<br />

Rapids who play in Major league Soccer. Their impressive,<br />

purpose-built stadium is considered something of a<br />

masterpiece but it rejoices in the name of its sponsor….<br />

Dick’s Sporting Goods Field.<br />

Naturally, Fans know it simply as The Dick. Quite what<br />

that does for the sponsor brand is anybody’s guess!<br />

SportBusiness <strong>International</strong> • No.152 • 12.09 7


AGENDA<br />

SHORTSTOP<br />

Super 15: Melbourne was chosen as<br />

the location for the 15th franchise in the<br />

expanded Super Rugby competition from<br />

2<strong>01</strong>1. The Australian city was chosen by<br />

independent arbitrators after SANZAR,<br />

the body representing the rugby unions<br />

of South Africa, New Zealand and<br />

Australia, failed to reach an agreement<br />

between Melbourne and a competing bid<br />

from South Africa’s Southern Kings.<br />

MLB: The New York Yankees win in the<br />

MLB’s World Series was worth $59.6<br />

million in direct spending to business<br />

in New York City. Each of the playoff<br />

matches played at the Yankees’ stadium<br />

brought in $6.7 million from visiting<br />

fans, players and media, according to<br />

research by the Economic Development<br />

Corporation.<br />

Formula One: The Brawn GP F1 team<br />

will be renamed Mercedes Grand Prix<br />

from next season, after it was bought<br />

by carmaker Daimler AG and Abu<br />

Dhabi-based investment fund Aabar<br />

Investments PJSC. Daimler bought<br />

a 45.1 per cent stake and Aaber 30<br />

per cent. Team manager Ross Brawn<br />

retains a shareholding along with four<br />

other directors.<br />

BSkyB:UK pay-operator BSkyB said a<br />

review panel’s recommendations on<br />

protected sporting events for freeto-air<br />

UK TV could have a “disastrous<br />

impact” on the long-term health of UK<br />

sports bodies. The panel, led by former<br />

English Football Association executive<br />

director David Davies, recommended<br />

that Ashes Test matches, home and<br />

away international football qualifiers,<br />

the Open Championship, the whole of<br />

Wimbledon, the entire Rugby World Cup<br />

and Welsh Six Nations should be added<br />

to the current list.<br />

MCC: Marylebone Cricket Club chief<br />

executive Keith Bradshaw denied<br />

reports that the organisation is to<br />

consider selling the naming rights of<br />

the Lord’s cricket ground alongside<br />

a massive redevelopment scheme to<br />

modernise the stadium.<br />

European Football: German police said<br />

“high ranking European leagues” are<br />

involved in a match-fixing operation it<br />

has un<strong>cover</strong>ed. Uefa has supported the<br />

investigation, providing the police with<br />

data on unusual betting patterns.<br />

Premier League: Manchester United<br />

manager Sir Alex Ferguson said the<br />

growth of foreign ownership of English<br />

Premier League clubs has made club<br />

chairmen more impatient for results.<br />

RAISING THE BAR<br />

Paul Deighton, LOCOG chief<br />

executive, said the Olympics and<br />

Paralympics would generate around<br />

£400 million from ticket sales.<br />

DEIGHTON ALSO SAID that he was aiming for<br />

between £600 and£700 million from private<br />

sponsorship, with £550 million already secured.<br />

Speaking at the Sport Event Management<br />

conference, he said: “If you look at the revenue<br />

we have yet to capture, the principal component<br />

will be from ticketing. Something like £400<br />

million will come through ticketing. We are<br />

building business plans for each of the sports to<br />

make sure that we can get tickets in the hands of<br />

the people who most want to be there.”<br />

Speaking before the announcement of BMW<br />

as LOCOG’s seventh Tier 1 sponsor, Deighton<br />

said it had been tough raising sponsorship cash<br />

in the economic downturn. “If I can point to<br />

the most gravity defying accomplishment of the<br />

project so far it’s raising that money in the light<br />

of extraordinarily difficult economic conditions.<br />

“It says a lot about the power of the Olympic<br />

and Paralympic brands, it says a lot about the<br />

BRAND BUILDING<br />

McCann Worldgroup promises to<br />

communicate the ‘truth’ when it<br />

takes control of the the ‘look and feel’<br />

the London 2<strong>01</strong>2 brand.<br />

“NEVER BEFORE has the public had a greater<br />

ability to scrutinise and control the messages we<br />

send,” said Brett Gosper, President & CEO of<br />

McCann Worldgroup EMEA. “Truth, more than<br />

ever is a brand’s most valuable asset.”<br />

As LOCOG’s Official Marketing Services<br />

Provider, McCann Erickson, supported by<br />

other Interpublic agencies, will be responsible<br />

for advertising, promotion and digital<br />

communications in relation to 2<strong>01</strong>2. It will work<br />

with Greg Nugent who took the newly created<br />

role of brand and marketing director. Nugent is<br />

tasked with building the 2<strong>01</strong>2 brand, reporting<br />

into Paul Deighton, who will concentrate on<br />

driving further commercial revenue.<br />

The agency will offer services worth up to<br />

£10 million in value-in-kind in return for<br />

obtaining third-tier sponsorship rights. It beat off<br />

competition from rivals WPP Group.<br />

“Every agency in London worth its salt went<br />

for the first round of the tender,” said Nick<br />

Sykes, managing partner, McCann Erickson. “It<br />

became obvious that LOCOG were looking for<br />

something quite different in terms of the tender,<br />

a genuine partnership for three and a half years,<br />

across every discipline”.<br />

Not yet on sale - Getty Images Sport<br />

appetite of this country to be involved in making<br />

this an incredible success.” He also defended<br />

the decision to abandon plans for a temporary<br />

venue for badminton and rhythmic gymnastics<br />

meaning athletes will journey across the capital<br />

to compete at existing venue Wembley Arena.<br />

“In this economic environment it’s not really<br />

acceptable to taxpayers to build a temporary<br />

venue when you already have an acceptable one.<br />

“It’s hard to say we were not prepared to send<br />

athletes another 15 minutes on the road... that<br />

we’d rather spend a lot more money and build<br />

something that we are then going to take down.”<br />

Truth behind the brand - Getty Images Sport<br />

It is the first time any Olympic Organising<br />

Committee has ever secured such a groundbreaking<br />

agreement for a marketing services<br />

partnership. Success for McCann, Sykes says,<br />

will be defined in three ways. “It will allow us<br />

to showcase our work in front of a huge global<br />

audience. Secondly, we will have proved the<br />

business case for bidding for the work in the<br />

first place. And thirdly, and this is more of a soft<br />

measure, it makes us one of the most attractive<br />

employers in the UK communications scene.”<br />

Lord Coe, chairman of LOCOG, described<br />

London 2<strong>01</strong>2 as the two largest sporting events<br />

on the planet and said “marketing them has to<br />

be one of the most complex tasks that any agency<br />

can face. McCann Worldgroup is one of the few<br />

companies in the UK which has the breadth and<br />

depth of capability to help us deliver the Games.”<br />

8 SportBusiness <strong>International</strong> • No. 152 • 12.09


INSIGHT<br />

MIRIAM SHERLOCK<br />

Editor<br />

SportBusiness <strong>International</strong><br />

“The way the America’s Cup works is that you<br />

have to win it to have a say on how it is run,”<br />

explains Paco Latorre, communications director<br />

for America’s Cup Management and spokesman<br />

for Alinghi<br />

In agreeing to race in Valencia in February and<br />

in publishing the Notice of Race - the rules and<br />

regulations that will govern the next edition of the<br />

event - Cup holder Alinghi has seemingly ensured<br />

the next chapter of the America’s Cup will actually<br />

unfold next year. But beyond that, the future of the<br />

competition is unclear.<br />

Arguments over the structure of the<br />

competition have led to a crippling two-year court<br />

battle between Alinghi (as the Defender) and rival<br />

BMW Oracle. Primarily a battle over who was the<br />

legitimate Challenger following the 2007 Cup, the<br />

legal issues have also stretched to <strong>cover</strong> disputes<br />

over the race Protocol and the venue.<br />

Latorre says despite resolution on the venue<br />

there are still three lawsuits pending and there<br />

remain a number of technical issues about how<br />

the 2<strong>01</strong>0 race will be carried out. Nevertheless, he<br />

says, these should not stop the boats from sailing<br />

off the Spanish coast early next year.<br />

And it is once they are on the water that real<br />

resolution may come. At stake will be the Cup,<br />

but also the right to decide how its next editions<br />

will be managed. To the victor will go the role of<br />

de-facto promoter and the chance to shape the<br />

future structure of the competition.<br />

Fundamental changes to the Cup format can<br />

only be made by amending the 1857 Deed of Gift,<br />

through the New York Supreme Court where the<br />

document is registered. But to do so, the winners<br />

will need a consensus that has been sadly lacking<br />

over the past two years.<br />

The signs are, that should Alinghi once more<br />

emerge victorious, it will have the backing of<br />

other teams in its attempts to modernise both the<br />

2<strong>01</strong>0 should see an America’s Cup - Getty Images Sport<br />

TO THE WINNER, THE SPOILS<br />

Alinghi may well have guaranteed that an America’s Cup race will now<br />

take place in early 2<strong>01</strong>0. But longer-term, the competition’s future may<br />

depend on who emerges victorious next year. By Bernardo Domingues.<br />

structure of the Cup management and the format<br />

of the competition.<br />

Sir Keith Mills, the principal of the British<br />

entry for the next Cup, TeamOrigin, has described<br />

the current structure as “not fit for purpose” and<br />

has said he will work with whoever wins the best<br />

of three America’s Cup races next February.<br />

Mills (see our Headliner interview, page 26)<br />

advocates a third party group of management<br />

advisers brought in to draw up a new, workable<br />

blueprint which everyone could adhere to.<br />

Ideally, any new structure would offer stable<br />

day to day management of the competition, both<br />

on the water and also commercially, while still<br />

protecting the rights of the Cup Defender.<br />

What Mills seems to be proposing is not too far<br />

removed from the structure Bertarelli sought to<br />

install after he first won the Cup in 2003, through<br />

an independent organiser AC Management.<br />

“Certainly, Bertarelli has been discussing<br />

changes with Sir Keith Mills and other<br />

stakeholders as well,” says Latorre, “but first we<br />

must contest the 33rd America’s Cup.”<br />

Should BMW emerge victorious the future for<br />

the America’s Cup may be something different.<br />

According to the existing Deed of Gift, it is the<br />

Challenger of Record’s prerogative to open up the<br />

field to other competitors. BMW Oracle won a<br />

legal action earlier this year to be considered the<br />

Challenger of Record and then chose not to open<br />

up the field - a move which deprived all the other<br />

teams of the opportunity to take on Alinghi for the<br />

Cup, for next year at least.<br />

Whatever the outcome, the legal battles of the<br />

last two years have created an uncertainty which<br />

has derailed the momentum the competition<br />

achieved with the successful 32nd America’s Cup.<br />

It can only be hoped that, with a firm plan to get<br />

out onto the water in 2<strong>01</strong>0, the spirit of sporting<br />

competition will put the sport back on track.<br />

IT WAS OUR very great pleasure here<br />

at SportBusiness, last month, to<br />

once again sponsor the Sports Event<br />

Management Awards.<br />

The Awards, presented at a<br />

prestigious Black Tie Ceremony at<br />

Lords Cricket Ground, London, are now<br />

in their third year and recognise the<br />

innovation and skill of the individuals<br />

and organisations that make sports<br />

events happen. They truly celebrate the<br />

Gold Standard in in each of the many<br />

sectors of event management.<br />

Such is the growth in popularity<br />

and scope of the Awards since their<br />

inception, that over 150 entries were<br />

received this year, meaning the judges<br />

really had their work cut out, and over<br />

200 guests attended the Ceremony.<br />

For the full list of worthy winners as<br />

well as the notable runners up, see our<br />

extended feature on pages 38-44.<br />

And it struck me while reading our<br />

Headliner interview this month - the<br />

subject is that guru of events marketing<br />

and organisation, Sir Keith Mills - that<br />

perhaps there might be scope next<br />

year for a new award category, based<br />

around the area of ‘sustainability and<br />

environmental impacts.’<br />

Sir Keith is running TeamOrigin, the<br />

UK entry for sailing’s America’s Cup<br />

and, as he explains on pages 26-28, is<br />

aiming not only to win the prestigious<br />

trophy but also, in partnership with<br />

environmental partner the Carbon<br />

Trust, to change the rules of sporting<br />

engagement forever. His mission: to<br />

lead the way in using sport to improve<br />

the environment and persuade<br />

companies and consumers to change<br />

their behaviours.<br />

The Vancouver 2<strong>01</strong>0 Olympics will be<br />

the first Games to go carbon-neutral,<br />

with help from 25 corporate sponsors<br />

and local and national governments.<br />

Its partners too are offsetting some of<br />

their own carbon emissions related to<br />

the Games. Then the FIA has proposed<br />

that the total activity of putting on a<br />

motor sport championship or series<br />

should be carbon neutral - quite some<br />

undertaking for the organisers and<br />

teams. These are just a few of many<br />

such worth initiatives… And, just<br />

maybe, early entries for the Sport Event<br />

Management Award for Sustainability.


AGENDA<br />

SHORTSTOP<br />

ESA: The European Sponsorship<br />

Association (ESA) launched a<br />

23-page guide for small sports<br />

rights-holders and newcomers to<br />

sponsorship looking to take their<br />

first steps into the industry.<br />

AF1: Arena Football One (AF1),<br />

the indoor American Football<br />

league founded in 2009 to replace<br />

the indefinitely suspended Arena<br />

Football League (AFL), submitted<br />

a formal offer to purchase the<br />

assets of the AFL. Formed in 2009,<br />

the coast-to-coast AF1 League will<br />

commence its inaugural season in<br />

the spring of 2<strong>01</strong>0.<br />

SOCHI 2<strong>01</strong>4: The organisers of<br />

the 2<strong>01</strong>4 Winter Olympics in Sochi<br />

published an environmental<br />

strategy drawn up in conjunction<br />

with the United Nations<br />

Environment Programme (UNEP)<br />

and the Russian Government. The<br />

organisers say the strategy will<br />

see the natural environment in the<br />

region surrounding Sochi not just<br />

protected, but enhanced.<br />

AUSTRALIA: An independent<br />

review of Olympic sport in Australia<br />

commissioned by the government<br />

said the focus on winning Olympic<br />

medals was hitting participation<br />

rates and choking funding need by<br />

for grassroots sports.<br />

EHF: Austria-based betting<br />

company bet-at-home.com<br />

agreed a new deal to be an official<br />

partner of the European Handball<br />

Federation’s (EHF) European<br />

Handball Championships taking<br />

place in Austria in 2<strong>01</strong>0.<br />

USL: Seven football clubs<br />

previously part of US professional<br />

league the United Soccer Leagues<br />

broke away to form a new league<br />

and begun seeking recognition<br />

from football authorities.<br />

NFL: The 80,000-seat Silverdome<br />

stadium in Pontiac, Michigan, which<br />

cost more than $55 million to build<br />

in 1975, has been sold at auction<br />

for $583,000 by the debt-ridden<br />

city authorities which own it. The<br />

stadium is the former home of the<br />

National Football League’s Detroit<br />

Lions, who left for a new stadium in<br />

downtown Detroit in 2002, and once<br />

hosted the Super Bowl.<br />

EXCEPTION PROVES THE RULE<br />

Barry Wilner on success breeding success in the NHL this year, according to the Forbes<br />

annual valuation. All except for the team at the top of the money rankings.<br />

IT PAYS TO BE an original<br />

member of the National Hockey<br />

League. Big time.<br />

The Original Six are among the<br />

seven most valuable franchises<br />

in the NHL, according to Forbes’<br />

annual rankings. Only the<br />

Philadelphia Flyers, who joined<br />

the league in the first wave of<br />

expansion in 1967, broke up the<br />

old boys club.<br />

For the fourth straight year,<br />

the Toronto Maple Leafs are on<br />

top, which is quite impressive<br />

considering they have not made the<br />

playoffs in four years and don’t look<br />

likely to make them this season.<br />

According to Forbes, they are<br />

worth $470 million, an increase of<br />

5 per cent over last year and far in<br />

front of the New York Rangers at<br />

$416 million, up just 1 per cent.<br />

The Montreal Canadiens are<br />

third ($339 million), followed by<br />

the Detroit Red Wings<br />

($337 million), Philadelphia<br />

($273 million), the Boston Bruins<br />

($271 million) and the Chicago<br />

Blackhawks ($258 million).<br />

Chicago’s rise is the most<br />

noteworthy. The Blackhawks have<br />

been tailenders on the ice for much<br />

of the decade, which damaged<br />

their overall worth. But aggressive<br />

marketing by owner Rocky Wirtz<br />

and strong drafting have made<br />

the Blackhawks so attractive that<br />

they regularly sell out the United<br />

Center. And they will be a Stanley<br />

Cup contender for the 2009-10<br />

season, having made the Western<br />

Conference final last spring.<br />

2009 NHL VALUES<br />

TEAM<br />

“The common denominator is to<br />

win and we wanted to move the<br />

organisation ahead,” Wirtz has said.<br />

“I see us perennially going to the<br />

playoffs and, once we get there,<br />

anything can happen.”<br />

What has happened in the past<br />

year is the NHL’s biggest rise in<br />

value, up 26 per cent.<br />

The next biggest increase is by<br />

the Washington Capitals, up 15 per<br />

cent to $183 million.<br />

Of the top 10 franchises - Dallas<br />

is eighth ($246 million), Vancouver<br />

ninth ($239 million) and New Jersey<br />

10th ($223 million) - two actually<br />

decreased in value: the Flyers and the<br />

Stars, who dropped by 10 per cent.<br />

Winning the Stanley Cup did not<br />

catapult the Pittsburgh Penguins<br />

into the Top Ten. They are 11th at<br />

$222 million, but that is a<br />

14-per-cent-increase in value,<br />

which certainly has to do with<br />

being the champions. Look for the<br />

Penguins to move up further next<br />

Toronto Maple Leafs top the money table - Getty Images Sport<br />

2009 Value<br />

(in millions)<br />

One-Year<br />

Change (%)<br />

Revenues<br />

(in millions)<br />

Toronto 470 +5 168<br />

NY Rangers 416 +1 139<br />

Montreal 339 +2 130<br />

Detroit 337 +11 130<br />

Philadelphia 273 -1 1<strong>01</strong><br />

Boston 271 +3 108<br />

Chicago 258 +26 108<br />

Dallas 246 -10 97<br />

Vancouver 239 +1 109<br />

New Jersey 223 0 97<br />

League Averages 223 1 94<br />

year when their new arena opens.<br />

New Jersey’s value, which is the<br />

same as in 2008, is also the leaguewide<br />

average, a slight increase over<br />

the $220 million of last year.<br />

By contrast, the average value of<br />

an National Football League team<br />

this year is $1.042 billion, and the<br />

lowest-ranked team, the Oakland<br />

Raiders, are worth $797 million,<br />

dwarfing the NHL’s Maple Leafs.<br />

The Toronto team is also top in<br />

terms of operating income, with<br />

$78.9 million, more than double<br />

the $31.3 million for runners-up,<br />

the Canadiens. Toronto revenues<br />

were also top, at $168 million,<br />

followed by the Rangers at<br />

$139 million. At the other end<br />

of Forbes’ chart are the Phoenix<br />

Coyotes. Their ownership issues,<br />

which have existed for years and<br />

dragged on for months in the<br />

courts, drop their worth to $138<br />

million. Stunningly, that is only 3<br />

per cent down on last season.<br />

10 SportBusiness <strong>International</strong> • No.152 • 12.09


aGeNDa<br />

aMerICa The ParIah<br />

rick Burton asks if it might now be another decade before the uS hosts one<br />

of sport’s major events.<br />

I oPeNeD MY NewSPaPer this morning to<br />

read that an American racing team (Charlotte,<br />

North Carolina’s US F1) was thinking of joining<br />

the Formula One circuit. Interestingly, it will<br />

serve as the first US-based F1 team in 40 years.<br />

That’s quite a while.<br />

It’s been even longer - 42 years - since an<br />

American-based team won an F1 race - Dan<br />

Gurney in his black No. 36 Eagle-Weslake in<br />

1967 at Belgium’s Spa-Francorchamps - and<br />

more than 30 years since an American (well,<br />

okay, a naturalised American - Mario Andretti)<br />

won the FIA world title in 1978.<br />

Those are only trivial tidbits (including the<br />

fact America has not hosted an F1 race since<br />

2007 in Indianapolis) but it caused me to think<br />

about America’s future involvement in global<br />

sports and the act (or art) of playing with the<br />

other kids in the world’s sand box.<br />

The most obvious place to start was with<br />

the Olympics and dissecting Chicago’s firstround<br />

departure from bidding to host the 2<strong>01</strong>6<br />

Summer Olympic Games. As we all know,<br />

Chicago and the US Olympic Committee lost<br />

badly and since then much has been written<br />

about the Americans not really understanding<br />

FACT OF THE MONTH:<br />

how the IOC really works (see Communiqué).<br />

That is undoubtedly unfair to the many<br />

Americans who worked tirelessly for Chicago’s<br />

bid during the last three years because those<br />

individuals always knew the USOC was standing<br />

outside the IOC’s Swiss-based windows looking<br />

in. They simply couldn’t change the physical<br />

choices and statements made by various USOC<br />

representatives during the last 10 years. The<br />

damage, if that’s what one would call how<br />

America conducted itself overseas, ran very deep.<br />

Or as Kurt Vonnegut often wrote in<br />

Slaughterhouse-Five, “So it goes.”<br />

Regardless, with Chicago leaving the party<br />

early, Rio de Janeiro went on to win big, thanks<br />

largely to a great branding campaign. Americans<br />

quickly returned to their North American-only<br />

National Football League (NFL), Major League<br />

Baseball, NCAA college gridiron and launch of<br />

another NHL season.<br />

But here’s an interesting statistic: With<br />

the US now out of hosting the 2<strong>01</strong>6 and 2<strong>01</strong>8<br />

Olympic Games and unlikely to bid for the 2020<br />

Summer Games (possibly sulking after losing<br />

2<strong>01</strong>2 to London and then 2<strong>01</strong>6), it is likely at<br />

least a decade will go by before a major global<br />

three hIll WInS often reQuIred to BeCome four hIllS ChAmPIon<br />

The annual Ski Jumping Four Hills Tournament takes place in December and January. Five of the last<br />

10 overall winners of the competition have won at least three of the four hills on their way to the title.<br />

overall four hills Tournament winners with at least three hill wins in one season<br />

# name nation oberstdorf garmisch Innsbruck Bischofshofen Season<br />

4 Sven Hannawald Ger 1 1 1 1 20<strong>01</strong>/2002<br />

3 björn Wirkola Nor 1 1 1 2 1968/1969<br />

3 Jens Weißflog GDr 2 1 1 1 1983/1984<br />

3 matti Nykänen FIN 2 1 1 1 1987/1988<br />

3 Toni Nieminen FIN 1 2 1 1 1991/1992<br />

3 Janne Ahonen FIN 1 1 1 2 2004/2005<br />

3 Wolfgang Loitzl AUT 2 1 1 1 2008/2009<br />

3 olav björnstad Nor 1 1 1 3 1953/1954<br />

3 björn Wirkola Nor 3 1 1 1 1966/1967<br />

3 Andreas Widhölzl AUT 3 1 1 1 1999/2000<br />

3 Toralf engan Nor 1 1 1 4 1962/1963<br />

3 Sigurd Pettersen Nor 1 1 4 1 2003/2004<br />

3 max Wolkart FrG 1 1 1 5 1958/1959<br />

3 Kazuyoshi Funaki JPN 1 1 1 8 1997/1998<br />

3 Helmuth recknagel GDr 1 1 1 15 1958/1959<br />

event plants its flag on American soil again. It<br />

seems likely the 2<strong>01</strong>8 <strong>FIFA</strong> World Cup will go<br />

to a European country and we know Rugby’s<br />

World Cup and the Cricket World Cup have both<br />

been bid out through 2<strong>01</strong>9 (meaning 2023 is the<br />

next available date). That’s three more Summer<br />

Olympics and three more <strong>FIFA</strong>, IRB and<br />

ICC World Cups (each) all closed out through<br />

2020. And no possibility of a US-based Winter<br />

Olympics until 2022.<br />

Even in the short term, just one single year,<br />

no F1 races will take place in the US in 2<strong>01</strong>0 nor<br />

is there an America’s Cup or golfing Ryder Cup,<br />

which heads to Wales in October 2<strong>01</strong>0. Even in<br />

the Davis Cup (tennis), the Americans open on<br />

the road in Serbia.<br />

That means no international events in the<br />

US in 2<strong>01</strong>0 except the familiar major tennis<br />

tournaments (i.e., US Open or a later round of<br />

the Davis Cup) and major golf tournaments (the<br />

Masters, etc.).<br />

And lest anyone feel I am deliberately leaving<br />

out the biggest international federations, let’s<br />

address those sports here and now.<br />

To the best of my research capabilities, it<br />

appears FINA’s 2<strong>01</strong>1 and 2<strong>01</strong>3 swimming world<br />

championships are going to Shanghai and<br />

Dubai; the IAAF’s 2<strong>01</strong>1 and 2<strong>01</strong>3 world athletics<br />

championships will play out in Daegu (South<br />

Korea) and Moscow; the FIG 2<strong>01</strong>0 and 2<strong>01</strong>1<br />

world artistic gymnastics championships are<br />

headed to Rotterdam and Tokyo and the 2<strong>01</strong>0<br />

and 2<strong>01</strong>1 world figure skating championships<br />

are slated for Turin and Nagano.<br />

Plus - and I write this as the former<br />

commissioner of a basketball league with teams<br />

in Australia, New Zealand and Singapore - FIBA’s<br />

2<strong>01</strong>0 and 2<strong>01</strong>4 men’s basketball championships<br />

will take place in Istanbul and Madrid with the<br />

women’s world championships for those years in<br />

12 SportBusiness <strong>International</strong> • no. 152 • 12.09


COMMUNIQUE<br />

November 2009,<br />

New York<br />

InternAl AnAlySIS And WrAnglIng Are<br />

unSurPrISIngly the reSPonSe to ChICAgo’S<br />

fAIlure to BrIng home the olymPIC gAmeS.<br />

US rejection and dejection Getty Images Sport<br />

the Czech Republic and India respectively.<br />

So here’s my concluding fact: it now falls to US<br />

Soccer (bidding for the 2022 World Cup) and the<br />

city of Denver (a possible candidate to bid for the<br />

2022 Winter Olympics) to bring the world back<br />

to the US. Simple maths says 20 years will have<br />

passed since the US hosted the scandal-plagued<br />

2002 Winter Olympics in Salt Lake City, Utah.<br />

Two decades is a long time in a digital age and<br />

it might suggest the world’s sport site selectors<br />

are quietly determining they can sustain their<br />

championship business despite America’s wealth<br />

and modern stadia infrastructure. That or they<br />

are determining other places are better suited, or<br />

more deserving, for global sports celebrations.<br />

Does it mean America is falling behind in<br />

something that isn’t quite a race Does it suggest<br />

Americans need to start joining (or getting<br />

elected to serve as members on) the federations<br />

that make these decisions<br />

My sense is an unqualified ‘yes’ and I write<br />

that knowing America has been well placed with<br />

selection for many of the major IF events in the<br />

past (Olympics, <strong>FIFA</strong> World Cup) although not<br />

for rugby union, cricket or athletics.<br />

I also know that no country is better than any<br />

other country and all are deserving if they are<br />

capable of managing the logistics and generating<br />

the appropriate local/national community support.<br />

As a first-generation American, though, I can<br />

only quietly (and humbly) hope that my country<br />

of birth, with its many resources, will fully<br />

support US Soccer and the USOC to get America<br />

back in gear by 2020 or 2022. Otherwise, I will<br />

need to keep my passport active.<br />

Rick Burton is the David B. Falk Professor of Sports<br />

Management at Syracuse <strong>University</strong> in Syracuse,<br />

N.Y and a former chief marketing officer of the US<br />

Olympic Committee.<br />

The fallouT from the failed Chicago<br />

bid could last for years, perhaps<br />

decades. “It’s very real,” Doug Logan,<br />

Ceo of USA Track and Field, told The<br />

Associated Press, “and for us to take<br />

our rightful place, we have to have an<br />

understanding of what’s really going<br />

on out there.”<br />

one thing that is going on - and is a<br />

positive for the US olympic movement<br />

- has been the upheaval within the<br />

USoC ranks since the failure in<br />

Copenhagen. Stephanie Streeter,<br />

who replaced Jim Scherr as Ceo has<br />

stepped aside. A search is on to find<br />

a leader with stronger connections to<br />

the international olympic community.<br />

There certainly won’t be any plans<br />

for future US olympic bids until<br />

new leadership is in place at the<br />

USoC after what Swiss IoC<br />

member Denis oswald<br />

called “a defeat for<br />

the USoC, not for<br />

Chicago.”The<br />

United States may<br />

well contribute<br />

more money<br />

to the olympic<br />

movement than<br />

any other nation,<br />

but the USoC’s<br />

infighting and<br />

perceived arrogance<br />

contributed to the loss<br />

of face. “I’m incredibly<br />

saddened by the developments, which<br />

I lay largely at the feet of the USoC,<br />

which has clearly lost its way,” said<br />

NbC Universal Sports and olympics<br />

chairman Dick ebersol.<br />

The well-connected Scherr believes<br />

it is more complex and that rio was<br />

destined to win hosting rights for the<br />

2<strong>01</strong>6. Games.<br />

“The headline should be: rio won<br />

the bid. Chicago did not lose the bid<br />

and Chicago did not lose by bidding,”<br />

said Scherr, who was forced to resign<br />

in march, a move that agitated many<br />

national governing bodies within the<br />

US olympic movement.<br />

“The IoC and the IoC president<br />

Jacques rogge wanted to plant the<br />

flag of the olympic movement and<br />

the olympic Games in South America.<br />

Jacques rogge wanted that, I believe,<br />

as part of his legacy as president of<br />

the IoC, to go to another continent<br />

with the olympic Games.”<br />

Still, Scherr concurs that the<br />

tumult within the USoC couldn’t have<br />

helped his country’s case for 2<strong>01</strong>6 and<br />

could continue to damage US chances<br />

in future bidding.<br />

“This wasn’t something new in the<br />

last six or seven months,” Scherr<br />

said. “The Salt Lake City bid scandal,<br />

what the IoC felt was the overcommercialised<br />

Atlanta Games, the<br />

Iraq War, America’s role in the global<br />

economy... All of these issues have<br />

affected the USoC and its standing in<br />

the IoC for a long time.<br />

“If the United States chooses to<br />

bid again, it’s going to be a very<br />

long and difficult process to<br />

address those issues<br />

so that a US city<br />

really has equal<br />

footing and an<br />

opportunity to<br />

win the right<br />

to host an<br />

olympic and<br />

Paralympic<br />

Games.”<br />

All of<br />

which does<br />

not mean the<br />

United States has<br />

become a non-player<br />

on the olympic stage.<br />

“I don’t think you’re ever going<br />

to abandon hope,” USA Swimming<br />

executive director Chuck Wielgus<br />

said at the time. “but the recent<br />

happenings at the USoC - certainly<br />

some of those things have probably<br />

not helped in the minds of IoC<br />

members who have long memories.”<br />

So what next for the USoC As bob<br />

Ctvrtlik, a former IoC member who<br />

was part of the initial Chicago 2<strong>01</strong>6<br />

bid team puts it: We’ll just have to<br />

see. When we said it was the right<br />

place, the right time, we meant it. I<br />

don’t think it’s anti-American. I think<br />

we still don’t have the horsepower<br />

to do the politicking. ... <strong>International</strong><br />

engagement takes a lot of time.”<br />

Barry Wilner<br />

AP and SportBusiness <strong>International</strong><br />

SportBusiness <strong>International</strong> • no.152 • 12.09 13


BRANDS & MARKETING<br />

SHORTSTOP<br />

MARETIN<br />

REAL MADRID: Cristiano Ronaldo,<br />

the world’s most expensive football<br />

player who moved from Manchester<br />

United to Real Madrid this summer,<br />

has not matched the sales boom<br />

when David Beckham made the<br />

same move in 2003. According<br />

to Bloomberg, sales of adidas<br />

shirts are as much as 75 per cent<br />

lower from data gathered across<br />

six sports stores in Madrid. Team<br />

income went up 27 per cent in the<br />

year after David Beckham signed for<br />

the club and 22 per cent of revenue<br />

came from sales of team apparel.<br />

BMW: The car maker signed up as<br />

the latest top-tier domestic sponsor<br />

of the 2<strong>01</strong>2 London Olympics, in a<br />

deal worth an estimated 40 million<br />

pounds ($67 million) in cash and<br />

services. BMW will provide about<br />

4,000 vehicles to transport athletes,<br />

officials and other members of the<br />

Olympic community.<br />

BARCLAYS: Global financial<br />

services provider Barclays<br />

extended its title sponsorship of<br />

golf’s Singapore Open until 2<strong>01</strong>2.<br />

Under the terms of the agreement,<br />

prize money will remain at least $5<br />

million, the field size will increase<br />

from 156 to 204 players and the<br />

event will move to Week 46 of the<br />

annual golf calendar for 2<strong>01</strong>0.<br />

ING: European financial services<br />

provider ING extended its title<br />

sponsorship of the New York City<br />

Marathon for another three years.<br />

The contract - which now runs until<br />

after the 2<strong>01</strong>3 race - was originally<br />

signed in 2003 and has been renewed<br />

twice<br />

IZOD: Clothing brand Izod signed a<br />

multi-year deal with the Indy Racing<br />

League (IRL), the sanctioning body<br />

for the IndyCar Series, to become<br />

title sponsor from the 2<strong>01</strong>0 season.<br />

The deal marks the sport’s first title<br />

sponsorship since 20<strong>01</strong>. Under the<br />

agreement Izod will also retain its<br />

label of official apparel partner of<br />

the Indy Racing League, which began<br />

in 2008.<br />

188BET: English Premier League<br />

club Liverpool signed online gaming<br />

and entertainment company 188bet<br />

as its betting sponsor. The deal will<br />

run for three years and aims to step<br />

up Liverpool’s profile in Asia.<br />

Phelps is exclusive to Visa - Getty Images Sport<br />

TAKING CENTRE STAGE<br />

Visa is signed up with the IOC for next 11 years, a particularly notable deal and<br />

fee in difficult economic times. Barry Wilner explains the company’s rationale.<br />

CREDIT CARD COMPANY VISA extended its<br />

contract as official global sponsor to the IOC<br />

for the 2<strong>01</strong>6 Summer Games in Rio and onto<br />

the Summer Olympics in 2020. With the<br />

going rate for February’s Winter Olympics<br />

in Vancouver just under $100 million for<br />

the quadrennium, it’s a significant financial<br />

commitment by Visa.<br />

“The Olympic Games transcend political and<br />

geographical boundaries to deliver incomparable<br />

international exposure,” said Joseph Saunders,<br />

chief executive officer of Visa Inc. And analysts<br />

estimate Visa could spend as much as another<br />

$300 million promoting the tie-in with the<br />

Games through the 2<strong>01</strong>4 Winter Olympics in<br />

Sochi. Those are never numbers to dismiss, but<br />

they are particularly notable in these times.<br />

Visa also recently extended its NFL<br />

sponsorship for five years, a deal worth about<br />

$40 million overall. Why the big spend And<br />

why now For one thing, Visa is able to attract<br />

athletes like Michael Phelps to represent the<br />

company, and that association pays huge<br />

benefits. Only Visa, for example, will have an<br />

affinity card with Phelps’ likeness.<br />

Also, Visa and its member banks have<br />

exclusive rights to Olympic symbols, something<br />

they use heavily in advertising. The company<br />

estimated that brand equity increases by 25 per<br />

cent among consumers who know about Visa’s<br />

Olympic sponsorship.<br />

Visa’s recent Olympic promotions have led<br />

to large increases in applications, including a<br />

40 per cent jump at banks for its platinum card<br />

prepared for the 2008 Beijing Olympics. Those<br />

Olympics were viewed as a grand opportunity<br />

to open up the biggest untapped market on the<br />

planet, and Visa dived in by adding 90,000<br />

ATM machines, with more than 200,000<br />

merchants accepting Visa in China.One US<br />

retailer estimated an increase in Visa spending<br />

at 9 per cent for Olympic promotions.<br />

The IOC deal also ensures Visa has a<br />

monopoly on the two biggest global sports<br />

events, the Olympics and the World Cup. “One<br />

wonders whether Visa would still spend as much<br />

as they are if they were guaranteed that their<br />

competitors would not purchase (such) rights,’’<br />

said Craig Depken, an economics professor at<br />

the <strong>University</strong> of North Carolina-Charlotte who<br />

specialises in sports economics.<br />

“This is potentially the case in many<br />

sponsorship situations: Do firms purchase<br />

sponsorship (be it a stadium name, a NASCAR<br />

car, or Olympic naming rights) because they fear<br />

what their competitors will do This is famously<br />

called the `prisoner’s dilemma.’ Furthermore,<br />

Visa has been a primary sponsor for the USOC<br />

and IOC for quite some time. To abandon the<br />

relationship at this point might raise more<br />

questions than Visa cares to answer - specifically<br />

concerning their financial well-being.”<br />

Visa is one of nine global sponsors for the<br />

Vancouver Games, along with McDonald’s,<br />

Coca-Cola, Panasonic, Acer, Atos Origin, General<br />

Electric, Omega, and Samsung. Panasonic and<br />

Samsung also remain affiliated through Soch<br />

2<strong>01</strong>4 and Rio 2<strong>01</strong>6. Dmitry Chernyshenko, CEO<br />

for the Sochi 2<strong>01</strong>4 Games, said Visa’s extension<br />

helped his city raise its sponsorship budget to<br />

$850 million - five years before any skiers or<br />

skaters compete.<br />

14 SportBusiness <strong>International</strong> • No. 152 • 12.09


PARTNERING UP<br />

Barry Wilner on an emerging US trend. Rather than battle each other for the<br />

entertainment dollars during the economic downturn, some professional<br />

teams from across the leagues are joining forces.<br />

THE LATEST US FRANCHISES to partner up are<br />

Chicago’s Bears of the NFL and Blackhawks of the<br />

NHL. Their cross-branding promotional initiatives<br />

include commercials and representation inside<br />

Soldier Field, home of the Bears, and the United<br />

Center, where the Blackhawks play.<br />

It’s the first such partnership between an NFL<br />

club and an Original Six franchise from the NHL.<br />

“Partnering with the Blackhawks is a unique<br />

relationship that showcases two storied Chicago<br />

franchises,” said Bears senior director of sales<br />

and marketing Chris Hibbs. “The collaboration<br />

of the two teams and our star athletes is<br />

something we hope the passionate Chicago<br />

sports community can rally around.”<br />

On the surface, it would seem the Bears have<br />

less to gain from such an arrangement than the<br />

Blackhawks. Only the Cubs can rival the Bears<br />

for attention in the Windy City. The Blackhawks<br />

rank behind the Chicago Bulls (NBA) and White<br />

Sox and Cubs (MLB). A closer look though,<br />

shows why such a concorde works.<br />

Barring making the playoffs, the Bears play<br />

only 10 homes games (eight regular-season,<br />

two pre-season). The Blackhawks have 41 home<br />

dates, which provides months of extra exposure<br />

at sporting events for the Bears.<br />

Plus, the young Hawks have a growing<br />

legion of youthful players who seem bound for<br />

stardom: Jonathan Toews, Patrick Kane, Patrick<br />

Sharp, Brent Seabrook and Brian Campbell. The<br />

Bears can’t match that.<br />

A set of five commercials featuring those<br />

skaters and Bears players Jay Cutler, Devin<br />

Hester, Robbie Gould, Lance Briggs and Greg<br />

Olsen have been planned. It’s an opportunity<br />

for both teams to expand their horizons among<br />

Chicago’s fans. For the Blackhawks, the benefits<br />

are obvious. “We are honoured to partner with<br />

one of the most recognised brands in the world,”<br />

Blackhawks senior vice president of business<br />

operations Jay Blunk said. “This will give our<br />

players and organisation exposure to millions of<br />

loyal Bears fans.”<br />

Two states east in Ohio, Major League<br />

Baseball’s Cleveland Indians and the NHL’s<br />

Columbus Blue Jackets have also partnered up.<br />

The Indians have attendance issues, so<br />

attempting to draw fans from the middle of the<br />

state, where Columbus sits, has always been<br />

attractive. Unlike the NFL and NHL, the schedules<br />

for baseball and hockey barely intercede, so the<br />

partnership makes sense calendar-wise.<br />

As for the Blue Jackets, they have barely<br />

made a dent in the Columbus community so<br />

dominated by Ohio State football and basketball.<br />

They are the only major league hockey team in<br />

the state, too.<br />

The pact calls for shared advertising and<br />

hospitality and special ticket offers to fans via<br />

e-mail and direct mail. The Blue Jackets were<br />

promoted at Indians games during the 2009<br />

season, with the Indians now being showcased<br />

at Nationwide Arena during the hockey season.<br />

Also included in the deal are opportunities<br />

to reach each team’s fan base, in-ballpark/<br />

arena presence at each team’s venue for select<br />

games, and media exposure across broadcast<br />

partner channels, according to the Indians and<br />

Blue Jackets. “Our new partnership with the<br />

Blue Jackets is just another example of two<br />

organisations taking a creative approach in<br />

marketing the product of professional sports<br />

entertainment within the same region,” said<br />

Indians senior vice president of sales and<br />

marketing Vic Gregovits.<br />

Look for such partnerships to crop up<br />

elsewhere in the USA.<br />

Cutler of the Chicago Bears and Toews of the Chicago Blackhawks - Getty Images Sport<br />

MARETIN<br />

EYE ON THE<br />

INDUSTRY<br />

FORMULA ONE PLUS<br />

Shaun Whatling, CEO of<br />

Redmandarin, on the momentous<br />

change afoot in Formula One.<br />

When FOM first mooted capping, it<br />

seemed a futile gesture. After all, what<br />

chance did FOM stand against the power<br />

of Ferrari, FOTA and the combined weight<br />

of the automotive industry<br />

And yet, nine months later, F1 is in<br />

a very different place - a much better<br />

one. The sudden reshaping of the F1<br />

landscape began with the withdrawal of<br />

some of the long-standing partners in<br />

2007, but it was Honda’s decision to pull<br />

the multi-million dollar plug that really<br />

turbo-charged the change.<br />

Fears that the credibility of F1 had<br />

been damaged following the McLaren-<br />

Ferrari spying scandal were fuelled by<br />

the contrived Nelson Piquet Jr crash,<br />

provoking yet more media speculation<br />

around long-term sponsor investment.<br />

F1 had already seen multiple attacks on<br />

its sponsors - the loss of tobacco money,<br />

alcohol sponsors fears, green advocates<br />

criticising the environmental impact of<br />

the sport - a ‘back to basics’ approach<br />

was long overdue.<br />

The cost-cutting moves agreed under<br />

the revised Technical and Sporting<br />

Regulations; now heavily reinforced<br />

through the Resource Restriction<br />

Agreement, although effective in terms<br />

of limiting big ticket expenditure such<br />

as wind tunnel and live testing, could<br />

never seriously dent the will of the larger<br />

automotive teams to compete in the arms<br />

race that F1 had become.<br />

Now, without Honda, Toyota, BMW and<br />

with the likely withdrawal of Renault, the<br />

RRA has found its teeth. Mercedes and<br />

Ferrari are the only automotive players<br />

and if the grid looks very different, the<br />

economic picture is radically more so.<br />

Despite the influx of new brands behind<br />

Brawn, Force India and USF1, the<br />

investment required to deliver technical<br />

advantage will be directly visible on the<br />

bottom line of every team.<br />

Team performance will ultimately<br />

be a function of balanced business<br />

performance: financial management,<br />

commercial creativity, product<br />

development and brand management.<br />

Now is the time to see if an F1 team can<br />

be run along conventional business lines:<br />

to perform on the track and produce a<br />

profit, on a year-by-year basis.<br />

We’ve seen this commercialisation<br />

in the upper tier of the Premier League,<br />

in the IPL, and it’s been a longstanding<br />

feature of the NFL. In this year of economic<br />

turmoil, change has come to the paddock.


SHORTSTOP<br />

BRANDS & MARKETING<br />

MARETIN<br />

ADIDAS: Sportswear brand adidas<br />

ended a $3 million sponsorship of<br />

the <strong>University</strong> of Central Florida’s<br />

athletic department after one of<br />

basketball star Michael Jordan’s<br />

sons played a match for the<br />

university wearing Nike shoes<br />

named after his father.<br />

ETIHAD: An English court ordered<br />

Etihad Airways and real estate<br />

developer Aldar Properties to<br />

pay the Force India F1 team<br />

$5.25 million as the result of a<br />

sponsorship dispute. Etihad and<br />

Aldar had claimed a change of<br />

livery to the Force India car, and<br />

the addition of a kingfisher logo,<br />

when it bought by Indian billionaire<br />

Dr Vijay Mallya in October 2007<br />

constituted a breach of their<br />

sponsorship agreement, and pulled<br />

out. Etihad and Aldar had entered<br />

into a three-year $20 million title<br />

sponsorship deal with the team in<br />

April 2007.<br />

MASTERCARD: MasterCard<br />

became match title sponsor for the<br />

Barbarian rugby internationals for<br />

the 2009-2<strong>01</strong>0 season. The series<br />

of matches will be known as ‘The<br />

MasterCard Trophy<br />

SCRATCH GOLF: US golfer Ryan<br />

Moore, the 2004 US Amateur<br />

champion, signed an unusual<br />

agreement with sponsor Scratch<br />

Golf that will see him take a stake in<br />

the company, with the opportunity<br />

to earn performance bonuses and<br />

additional payments.<br />

ENGLISH LEAGUE: Football club<br />

Newcastle United agreed a stadium<br />

naming rights deal with sportswear<br />

retailer Sports Direct, owned by<br />

Newcastle owner Mike Ashley.<br />

The club plans to rename its home<br />

stadium sportsdirect.com@St James’<br />

Park Stadium under a deal lasting<br />

until the end of the season, prompting<br />

an angry response from fans.<br />

ADIDAS: Andy Murray signed a<br />

new £15 million, five-year deal with<br />

sportswear maker adidas. The<br />

deal begins 2<strong>01</strong>0, ending Murray’s<br />

relationship with Fred Perry.<br />

LV=: LV= will title sponsor rugby<br />

union’s Anglo-Welsh tournament,<br />

the joint competition managed by<br />

the Rugby Football Union (RFU) and<br />

Welsh Rugby Union (WRU).<br />

WITHOUT WISHING TO READ too much<br />

into this year’s forecasts for the sponsorship<br />

industry, one can at least take heart from the<br />

statistics that predict year-on-year growth in<br />

global expenditure of between 2-3.1 per cent in<br />

2009 (GroupM/IEG June 2009 respectively) to<br />

circa $44.4 billion.<br />

Against a backdrop of a forecast 5.5 per cent<br />

fall in global advertising spend to $417 billion<br />

and a 3.7 per cent decline in other marketing<br />

services this year, those in the sponsorship<br />

industry should be feeling reasonably confident<br />

that it continues to show positive signs of<br />

progression, even in the most challenging times.<br />

In fact, global sponsorship growth has been<br />

strong over the past two decades, consistently<br />

outpacing growth in advertising and sales<br />

AIG dropped out, but AON will step in - Getty Images Sport<br />

OPTIMISING TOUCH POINTS<br />

Jeremy Clark, Managing Director, MEC Access, Europe Middle East & Africa,<br />

explains that insight is the key to a bright future for sports marketers.<br />

promotion in percentage terms. Sport continues<br />

to dominate the industry in terms of the number<br />

of deals and overall investment by brands.<br />

But a 5 per cent decrease in its total share of<br />

investment between 2007 and 2008 (Source:<br />

TWSM) is statistical evidence, if we needed it,<br />

that some brands are seeking new or alternative<br />

platforms, in entertainment and cause, to<br />

drive differentiation and deeper consumer<br />

engagement, potentially at the expense of sport.<br />

So, on the one hand the industry is in<br />

reasonable health and continuing to buck the<br />

trend. But on the other side sport must react to<br />

the increasing competition by demonstrating its<br />

true worth as one of the most effective platforms<br />

for brands to drive consumer engagement and<br />

deliver a positive return on investment.<br />

16 SportBusiness <strong>International</strong> • No. 152 • 12.09


BrandZ map - Brand equity across markets<br />

80<br />

60<br />

40<br />

20<br />

0<br />

-20<br />

10 15 20 25 30 35<br />

Source: BrandZ 2008 Base: 400 per market<br />

PartnerZ - Consumer engagement in sports (France)<br />

100%<br />

90%<br />

80%<br />

70%<br />

60%<br />

50%<br />

40%<br />

30%<br />

20%<br />

10%<br />

0%<br />

16<br />

15<br />

Mexico 2008<br />

Sweden 2008<br />

UK 2008<br />

Taiwan 2008<br />

Spain 2008<br />

Brazil 2008<br />

Japan 2008<br />

France 2008 Australia 2008<br />

Thailand 2008<br />

China 2008<br />

Russia 2008<br />

USA 2008<br />

Canada 2008<br />

Italy 2008<br />

Korea 2008<br />

Germany 2008<br />

Netherlands 2008 Denmark 2008<br />

Hong Kong 2008<br />

Czech Republic 2008<br />

Rugby Formula Football Cycling Tennis Skiing Sailing Horse Golf<br />

union one Racing<br />

Source: France PartnerZ 2008 Filter: 3,000<br />

R.O.S.E - Event’s impact on brand buying intention<br />

Event XX explains 12% of exposed XY brand buying<br />

intention<br />

75%<br />

12<br />

18<br />

India 2008<br />

12%<br />

Source: Rose 2008 Base: 461<br />

It was in last November’s issue of SportBusiness<br />

<strong>International</strong> that Editorial Director, Kevin<br />

Roberts, highlighted that the sports industry<br />

could benefit from better PR, given the<br />

disconnect between the public perception of<br />

sports marketing and the business realities.<br />

This disconnect, it was suggested, could<br />

drive some brands away from sport out of fear<br />

of upsetting and alienating the public. And sure<br />

enough, we’re witnessing it all over the world<br />

with high profile fall-out from the likes of AIG,<br />

Buick and ING, to name but three.<br />

Call it a necessary ‘correction’ or ‘spring<br />

clean’ brought about by the recession, but we<br />

should not shy away from the fact that there are<br />

some fundamental challenges in the industry<br />

that need to be addressed. Brands are rightly<br />

scrutinising every marketing dollar spent and<br />

need to understand the return that they can<br />

expect from their investment.<br />

Too often in the past sponsorships have<br />

been established without appropriate research<br />

and insights, an understanding of the role of<br />

16<br />

16<br />

8 6 4 3 2 1<br />

4 5<br />

9<br />

12<br />

16<br />

16<br />

MALE<br />

FEMALE<br />

18-34<br />

25-34<br />

UP TO $3,000<br />

OVER $3,0<strong>01</strong><br />

Event impact<br />

Love it<br />

Like it<br />

It’s OK<br />

Dislike it<br />

Not interested<br />

Unaware of it<br />

Brand impact<br />

sponsorship within the wider communications<br />

mix, the setting of clear objectives and KPIs.<br />

Rarely will a perfect partnership come from<br />

a single flash of inspiration. Research and<br />

insight should play an integral role across<br />

the sponsorship process and should feed the<br />

strategy, property selection and its activation.<br />

So where should a brand-owner start We<br />

know about all the investment that has already<br />

been pumped into associations with <strong>FIFA</strong><br />

through 2<strong>01</strong>4, and London 2<strong>01</strong>2, many of which<br />

will have built a robust business case for that<br />

investment. But beyond these there is a wide<br />

range of high-profile opportunities on the horizon<br />

in the world of sport that with the right strategic<br />

approach, brands could be capitalising on.<br />

The starting point is a thorough investigation<br />

into the brand, the appropriate platforms and<br />

properties and an in-depth analysis of the target<br />

audience. We use BrandZ, a proprietary WPP<br />

resource, which delivers in-depth measurement<br />

of brand equity and imagery across 23,000<br />

brands and 31 countries.<br />

<br />

BRANDS & MARKETING<br />

Extending this insight and research is the<br />

PartnerZ tool which moves the principles<br />

of BrandZ into the sponsorship arena and<br />

maps consumer engagement and perceptions<br />

of platforms and properties across 13 markets<br />

worldwide. Supplementing this is the extensive<br />

profiling of consumer demographics, behaviours<br />

and attitudes delivered through TGI which<br />

itself <strong>cover</strong>s the major markets worldwide.<br />

A rigorous approach such as this will help<br />

brand-owners build a compelling and objective<br />

business case for sponsorship investment.<br />

These tools help to confirm brand issues,<br />

identify property strengths and weaknesses, and<br />

ensure that the consumer is put at the heart of<br />

all strategic development.<br />

Without it brands run the risk of wasting<br />

marketing dollars on inappropriate associations<br />

that fail to drive meaningful engagement with<br />

their audience and consequently deliver a<br />

negligible return on investment.<br />

For those brand owners that have made the<br />

decision to invest in a sports property it’s critical<br />

for the long-term viability of the association that<br />

this investment can be monitored and its effect<br />

determined. In the past, much of the focus has<br />

been on measuring the output, evaluating brand<br />

exposure delivered through the association and<br />

measuring the awareness shift.<br />

However, with sports marketing having the<br />

capacity to deliver against multiple brand and<br />

business objectives this will more often than not<br />

be an insufficient evaluation of the association.<br />

The industry has been crying out for a<br />

robust model that can help isolate the effect of<br />

partnership activity and identify the direction<br />

and strength of influences between partnership<br />

activity and consumers, which in turn can help<br />

drive the credibility of the discipline.<br />

Over the past two years, such a tool has<br />

been in development within MEC Access. The<br />

recently launched ROSE© model is a unique<br />

consumer research and modelling tool that<br />

maximises the effectiveness of sponsorships.<br />

It measures the overall performance of<br />

partnerships, isolates the influence of<br />

association on brand buying intention and<br />

delivers a roadmap for future improvements in<br />

their activation. We should be in no doubt that<br />

the sports industry continues to make enormous<br />

progress and that more and more brands are<br />

realising the potential power of sponsorship.<br />

With the right strategic approach to determining<br />

the most appropriate solution, brands will<br />

capitalise on the great many opportunities that<br />

exist within sport in the years to come.<br />

Supplement this with comprehensive<br />

measurement of any partnership activity and<br />

there should be ample justification to support<br />

long-term investment in the discipline. On<br />

that basis, I believe sponsorship and sports<br />

marketing will not just maintain its position<br />

in the marketing hierarchy, but will become a<br />

driving force for the future.<br />

SportBusiness <strong>International</strong> • No.152 • 12.09 17


MEDIA<br />

SHORTSTOP<br />

Al Jazeera: Pan-Arabian broadcasters<br />

ART and Al Jazeera signed a<br />

preliminary agreement for ART’s<br />

six sports channels to become a<br />

part of Al Jazeera Sports, according<br />

to Rapid TV News. A Memorandum<br />

of Understanding was signed and<br />

although terms have not been<br />

disclosed the payment is believed to<br />

be well in excess of $1 billion. Under<br />

the deal, Al Jazeera Sport will take<br />

over ART’s existing sports contracts,<br />

becoming the exclusive provider of<br />

sports content for ART’s Arab Digital<br />

Distribution platform.<br />

IOC: The <strong>International</strong> Olympic<br />

Committee awarded South American<br />

TV rights for the 2<strong>01</strong>0 Winter Games<br />

in Vancouver and the 2<strong>01</strong>2 Summer<br />

Games in London to ESPN. Under the<br />

deal, ESPN will have free-to-air rights<br />

in Argentina, pay-television rights in<br />

Argentina, Bolivia, Chile, Colombia,<br />

Ecuador, Paraguay, Peru, and Uruguay<br />

and satellite-only rights in Venezuela.<br />

Asia meets England in the Premier League - Getty Images Sport<br />

EPL STILL SCORING IN ASIA<br />

Pay-television competition in key Asian markets continues to fuel the rise of<br />

the English Premier League’s Asian television rights fees. James Pickles of<br />

TV Sports Markets reports on the league’s latest round of deals.<br />

Serie A: <strong>International</strong> sports media<br />

company MP & Silva acquired the<br />

international media rights for Italian<br />

football’s Serie A for the 2<strong>01</strong>0-11 and<br />

2<strong>01</strong>1-12 seasons. The rights were<br />

awarded by the Italian Football League<br />

(Lega Calcio) after a competitive<br />

tender process, and <strong>cover</strong> all<br />

platforms including television, internet<br />

and mobile.<br />

Euro 2<strong>01</strong>2: Portuguese paybroadcaster<br />

Sport TV acquired the pay-<br />

TV rights in Portugal for Euro 2<strong>01</strong>2 in<br />

a deal with UEFA. Sport TV has rights<br />

for all 31 matches in the tournament,<br />

including exclusive rights for 12 group<br />

stage matches. Free-to-air rights in<br />

Portugal will be sold at a later stage.<br />

Serie A: An Italian court blocked<br />

pay-broadcaster Sky Italia’s deal for<br />

a package of rights for Italian league<br />

football for the 2<strong>01</strong>0-11 and 2<strong>01</strong>1/12<br />

seasons. Conto TV had challenged<br />

the deal, which was for the ‘Platinum’<br />

package of rights <strong>cover</strong>ing all Serie<br />

A matches. Sky Italia said it would<br />

challenge the decision.<br />

<strong>FIFA</strong>: Chinese state-broadcaster China<br />

Central Television (CCTV) acquired<br />

the rights to all <strong>FIFA</strong> tournaments,<br />

including the 2<strong>01</strong>0 and 2<strong>01</strong>4 <strong>FIFA</strong> World<br />

Cups. Under the deal, CCTV will also<br />

show matches from the <strong>FIFA</strong> Women’s<br />

World Cup and <strong>FIFA</strong> youth football.<br />

THE ENGLISH PREMIER LEAGUE extended its<br />

enviable record of television-rights-fee increases<br />

in Asia under the latest raft of deals that were<br />

agreed in October, <strong>cover</strong>ing the 2<strong>01</strong>0-11 to 2<strong>01</strong>2-<br />

13 period. Sports rights specialists TV Sports<br />

Markets estimate that the league enjoyed around a<br />

40-per-cent fee increase in deals signed in the 22<br />

territories <strong>cover</strong>ed by its main Asian tender.<br />

There were not uniform increases across the<br />

board, however. The overall rise was principally<br />

driven by big jumps in the big markets of<br />

Singapore and Malaysia, with India also seeing<br />

spectacular growth. In other territories increases<br />

were more modest and fees even fell in a couple<br />

of markets, including South Korea.<br />

The Premier League stoked up what interest<br />

there was by tweaking its rights offering to<br />

make it even more attractive for broadcasters.<br />

It liberalised internet rights, removing the<br />

stipulation in existing contracts that matches<br />

shown on the internet must be simulcast on<br />

television. It also offered broadcasters the<br />

possibility of buying a centrally-produced Premier<br />

League channel - the so-called Premier League<br />

content service - providing winning bidders with<br />

what is effectively a “plug-and-play” solution.<br />

This is thought to have been aimed<br />

specifically at helping new telecoms companies<br />

come into the market, such as Singapore’s<br />

SingTel, which stunned incumbent rights-holder<br />

Starhub with a knockout first round offer.<br />

Singapore proved to be the only territory<br />

where the gap between the highest and nexthighest<br />

bids was big enough for the league to<br />

award the rights in the opening round. Starhub<br />

was hit by a double whammy in that within<br />

hours of SingTel announcing its Premier League<br />

win, pan-regional broadcaster ESPN Star Sports<br />

said that it was shifting its sports channels from<br />

Starhub to SingTel as well.<br />

In an attempt to stem the expected subscriber<br />

churn, Starhub has since radically overhauled its<br />

sports offer. It has promised to cut the price of its<br />

premium sports bouquet by over 50 per cent when<br />

its Premier League deal expires next summer. In<br />

addition it is offering all its existing cable television<br />

customers two new sports channels for free,<br />

including the Eurosport News channel.<br />

ESPN Star Sports held on to Premier League<br />

rights in 18 territories, although it lost Vietnam<br />

to the MP & Silva agency and retained the rights<br />

in Malaysia through a joint-bid with its longterm<br />

partner Astro. The threat from Telekom<br />

Malaysia, which is gearing up to launch an<br />

IPTV service, played a key role in driving up the<br />

Malaysian price by an estimated 70 per cent.<br />

That threat took bidding into a second round but<br />

it soon became clear that Telekom Malaysia was<br />

not ready to commit yet to major investments in<br />

sports content. That battle now looks likely to be<br />

deferred until the next three-year cycle.<br />

Elsewhere, it is thought ESS will use the<br />

Premier League rights to drive carriage of a slew<br />

of new sports channels, including its recentlylaunched<br />

ESPNews channel and a high-definition<br />

offering. ESS’s new Premier League deals <strong>cover</strong><br />

Malaysia, Indonesia, the Indian sub-continent,<br />

South Korea and other smaller territories.<br />

The Premier League will sell the rights in<br />

China and Hong Kong in a separate auctions<br />

which were about to commence as this article<br />

went to press.<br />

18 SportBusiness <strong>International</strong> • No. 152 • 12.09


EXTENDING BOXING’S REACH<br />

The US market remains the top target for boxing promoters, who are seeking<br />

fans’ attention with an ever-wider array of media initiatives. Barry Wilner<br />

reports on the tactics being used, and the new overseas markets targeted.<br />

DEAL OF<br />

THE MONTH<br />

JAMES PICKLES<br />

Editor, TV Sports Markets<br />

NEVER THE TYPES to be shy about how and<br />

where they seek money for their productions -<br />

sometimes the more outlandish the source, the<br />

better - US boxing promoters are mining new<br />

areas - thinking outside the ring, if you will.<br />

Young audiences, for whom boxing is now<br />

seriously battling with mixed martial arts, are<br />

being targeted with a barrage of new products<br />

on traditional and new media. And promoters<br />

are reaching far beyond American shores and<br />

into China, a market that every forward-thinking<br />

sports entrepreneur covets.<br />

“Boxing has to reach a younger audience, a<br />

new audience,” HBO Sports vice president Mark<br />

Taffett says. “We need to connect them to the<br />

athletes to move the sport forward.”<br />

HBO has been doing this through its “24/7”<br />

behind-the-scenes programmes broadcast in the<br />

lead-up to major bouts. These fights tend to be the<br />

easiest to sell to the public, even on pay-per-view,<br />

but the idea that HBO can create new fight fans,<br />

particularly amongst youngsters, through those<br />

specials is an original one.<br />

“HBO’s 24/7 draws new fans to the sport of<br />

boxing in order to ensure boxing’s future,” Taffet<br />

said, speaking about the broadcasts leading up<br />

to US boxer Floyd Mayweather’s big victory in<br />

September over Mexico’s Juan Manuel Marquez.<br />

“The [Mayweather fights] are must-see TV that<br />

have our fans glued to their television sets.<br />

“We have made it so that wherever consumers<br />

go, watch, listen, read, tweet, text, they are going<br />

to be surrounded by Mayweather and Marquez.”<br />

There was a pre-fight show televised by Fox<br />

Sports Net, which is a stronghold for the viewing<br />

demographic promoters seek: young male sports<br />

fans. De La Hoya’s Golden Boy Promotions,<br />

Marquez’s promoter, helped things along by<br />

releasing lots of video content for broadcast prior<br />

to the fight.<br />

Golden Boy also went back to a tried and<br />

trusted broadcast method from the 1960s and<br />

‘70s and showed the fight in nearly 200 cinema<br />

theatres across the country. Theatres throughout<br />

America showed trailers advertising the bout in<br />

the weeks leading up to it.<br />

The one million-plus pay-per-view buys<br />

for Mayweather-Marquez suggests that the<br />

promoters’ approach to the media, combining<br />

traditional methods with new, definitely works.<br />

But the US is no longer the only market the<br />

promoters think they can make big money in.<br />

Dino Duva and businessman Richard Davimos<br />

have formed D&D Global, which has reached<br />

agreement with the Chinese Boxing Federation<br />

to train and market its amateur fighters.<br />

“This is the chance to develop them right to<br />

the pros,” Duva says. His company is the first<br />

overseas player to do a broad, comprehensive<br />

deal with the Chinese in boxing.<br />

In addition to training Chinese boxers - many<br />

already have spent time at camps in the States<br />

- D&D Global gained exclusive rights to market<br />

them. Several sponsors, including adidas, are<br />

already on board.<br />

“We’re in the process of working on TV deals<br />

in China and globally,” Davimos says.<br />

“The thing that’s interesting for me is the<br />

money is there to commercialize, even while<br />

they’re amateurs. We’re talking to sponsors that<br />

would never go near boxing in the U.S.”<br />

Adds Duva: “There are markets out there<br />

where you can make more money than you can<br />

in the United States.”<br />

Juan Manuel Marquez fights Floyd Mayweather - Getty Images Sport<br />

Mumbai-based agency Nimbus<br />

Communications extended its deal with<br />

the Board of Control for Cricket in India<br />

(BCCI) for a further four years, from<br />

2<strong>01</strong>0 to 2<strong>01</strong>4. The rights, which <strong>cover</strong><br />

India’s home international matches<br />

and domestic competitions, have<br />

traditionally been the country’s most<br />

important sports rights property.<br />

What’s it worth<br />

Nimbus is paying approximately Rs20<br />

billion ($425 million) over the period, with<br />

a flat rate of Rs312 million per match.<br />

How does that compare<br />

On a per match basis, Nimbus is paying<br />

about four-per-cent less than what<br />

it pays now. The decrease is largely<br />

attributed to the changed economic<br />

environment but also perhaps tacitly<br />

acknowledges that the rights are no<br />

longer the undisputed driver in the<br />

market, given the spectacular growth<br />

of Twenty20’s India Premier League<br />

in the last two years. It is also worth<br />

remembering that Nimbus’s winning offer<br />

last time round was over $100 million<br />

clear of the next highest bid.<br />

What competition was there<br />

The BCCI was restrained from offering the<br />

rights on the open market by a very strong<br />

renewal clause in the existing Nimbus deal<br />

which gave the agency first right of refusal.<br />

Were there any potential challengers<br />

Rivals Sony and ESPN Star Sports were<br />

interested in the BCCI rights, especially<br />

Sony, which is looking at launching a<br />

dedicated sports channel to fill a gap in<br />

its present bouquet of channels. Winning<br />

the BCCI rights, which it could combine<br />

with its existing nine-year deal for the<br />

IPL, would have given Sony an impressive<br />

platform and at the same time landed a<br />

crippling blow on one of its rivals.<br />

What would have happened had Nimbus<br />

lost<br />

The BCCI rights are the backbone of<br />

Nimbus’s Neo channel, which would have<br />

seen its turnover plummet at least 80<br />

per cent if it had lost the rights, raising<br />

serious questions over its future. As it is,<br />

the new extension contains a similarly<br />

strong renewal option for a further four<br />

years up until 2<strong>01</strong>8, in effect guaranteeing<br />

Neo’s future for almost a decade.<br />

SportBusiness <strong>International</strong> • No.152 • 12.09 19


MEDIA<br />

SHORTSTOP<br />

IPL: Entertainment & Sports Direct,<br />

promoted by investment advisory<br />

and private equity company DAR<br />

Capital Grouphas, won the theatre<br />

rights for the Indian Premier<br />

League from 2<strong>01</strong>0-2<strong>01</strong>9. The tenyear<br />

deal is reported to be worth Rs<br />

330 crore ($71 million).<br />

TyC Sports: Argentinian sports<br />

broadcaster TyC Sports acquired<br />

the TV rights in Argentina for the<br />

Vancouver 2<strong>01</strong>0 Winter Olympics<br />

and London 2<strong>01</strong>2 Olympic Games.<br />

TyC Sports has had the broadcast<br />

rights in Argentina for every<br />

Summer Olympic Games since<br />

Atlanta 1996. TyC Sports also<br />

acquired rights for the IAAF’s<br />

Diamond League series of athletics<br />

meets, which begins next year.<br />

World Series: Major League<br />

Baseball’s World Series averaged<br />

an 11.7 television rating and<br />

19-per-cent audience share on US<br />

television, up 39 per cent from the<br />

record low of 8.4 and 14 per cent in<br />

2008. This year’s World Series was<br />

contested by the New York Yankees<br />

and the Philadelphia Phillies. Last<br />

year the teams were the Phillies and<br />

the Tampa Bay Rays.<br />

Eurosport: Eurosport <strong>International</strong><br />

reported an operating profit of<br />

€33.7 million for the first nine<br />

months of 2009, up over 100 per<br />

cent on the €16.7 million profit<br />

in the same period in 2008.<br />

Subscription revenues rose yearon-year,<br />

driven by the launch of<br />

the Eurosport HD channel, which<br />

launched in May 2008 and now has<br />

four million paying subscribers, and<br />

of Eurosport 2, which now has 38<br />

million paying subscribers.<br />

MTV3 Max: Finnish broadcaster<br />

MTV3 renewed its rights for Formula<br />

One for the 2<strong>01</strong>0 to 2<strong>01</strong>2 period. MTV3<br />

will continue to show live <strong>cover</strong>age<br />

on its MTV3 Max low-priced paychannel,<br />

and delayed <strong>cover</strong>age on its<br />

free-to-air MTV3 channel.<br />

IPL: Sony’s Entertainment<br />

Television <strong>Network</strong>’s channel SET<br />

Max, the official broadcaster of<br />

cricket’s Indian Premier League<br />

(IPL), is estimated to bring in over<br />

Rs 650 crore ($135 million) for the<br />

2<strong>01</strong>0 edition of the competition, 30<br />

per cent higher than in 2009.<br />

TO SELL OR NOT TO SELL<br />

Rick Burton on the timing conundrum facing the IOC when it comes to<br />

negotiating the US broadcast rights for the 2<strong>01</strong>4 and 2<strong>01</strong>6 Olympic Games.<br />

READ A NORTH AMERICAN Sports Business<br />

Journal and you will come across a treasure trove<br />

of rights fee information <strong>cover</strong>ing the various TV<br />

network sports deals for the largest American<br />

sports properties, including the Olympics.<br />

They are significant and what is particularly<br />

interesting is that the Olympics, particularly<br />

following the massive ratings success of the<br />

2008 Summer Games from Beijing, were not<br />

only the lowest dollar value of the six (which are<br />

all in a single, sophisticated market) but also that<br />

the IOC tends to only bid the Olympics in single<br />

four-year (or two Games) blocks in the US.<br />

That means the next round of bidding for<br />

the US rights, (<strong>cover</strong>ing at least the Sochi 2<strong>01</strong>4<br />

Winter Olympics and 2<strong>01</strong>6 Summer Olympics in<br />

Rio de Janeiro) are due for negotiation, logically,<br />

sometime next year, after the Vancouver Games.<br />

To that end, there are a number of interesting<br />

factors at play:<br />

● The possible number of bidders in the US<br />

(likely ESPN/ABC, Fox, CBS possibly with Time<br />

Warner and NBC possibly owned by Comcast),<br />

how these parties are likely to compete and how<br />

they will drive the pricing<br />

● Economic conditions in the US and whether<br />

they will continue to improve during the 2<strong>01</strong>0-12<br />

window when this process could take place<br />

● Vancouver’s ratings performance in the US.<br />

This is where the performances of certain<br />

American athletes will influence NBC’s outcome<br />

● Whether the selection of Rio gets ‘spun’ by the<br />

bidders as warranting a discount in the US<br />

● Whether the selection of Sochi (and its<br />

European time zone) will dictate a discount<br />

● Whether US broadcasters will act ‘coy’ about<br />

bidding for rights that only serve them for a<br />

‘couple of weeks’ in February 2<strong>01</strong>4 and August<br />

2<strong>01</strong>6. This coyness is consistent (since the<br />

networks always know the Games only last a<br />

few weeks) but will undoubtedly be measured<br />

by cash flow projections related to how much it<br />

will cost each respective broadcaster to maintain<br />

future rights with the NFL, NBA, NASCAR,<br />

NCAA and Major League Baseball (all which will<br />

go back up for grabs between 2<strong>01</strong>3 and 2<strong>01</strong>6)<br />

● The IOC’s desire to get the deal done early in<br />

order to benefit Sochi and Rio or to wait for more<br />

favorable economic conditions in the US. Dick<br />

Pound wrote in his 2006 book Inside the Olympics,<br />

that due to the economic conditions in the TV<br />

industry at the time, the longer the IOC waited<br />

to sell the US rights (after Atlanta’s selection) the<br />

more revenue the sale would generate. But Atlanta<br />

needed cash for construction of the Olympic<br />

Stadium and wanted the bidding to begin ASAP.<br />

When we consider the bidding process this<br />

time, there are two major ‘player’ developments<br />

20 SportBusiness <strong>International</strong> • No. 152 • 12.09


MEDIA<br />

Current Major US TV Deals<br />

NFL<br />

NBA<br />

NCAA<br />

Major League Baseball<br />

NASCAR<br />

Olympic Games<br />

worth noting: the emergence of ESPN/ABC as a<br />

committed bidder and the likely acquisition by<br />

Comcast of General Electric’s NBC.<br />

Up first is ESPN. The Connecticut-based giant<br />

has not been shy in announcing it will bid for 2<strong>01</strong>4<br />

and 2<strong>01</strong>6 and recently tipped its cards even further<br />

by scooping the Vancouver 2<strong>01</strong>0 and London<br />

2<strong>01</strong>2 broadcast rights in Argentina, Bolivia, Chile,<br />

Columbia, Ecuador, Paraguay, Peru and Uruguay<br />

(and satellite-only rights in Venezuela).<br />

ESPN’s executive vice president of content,<br />

John Skipper, attended the Beijing Games and<br />

brought with him a team of seasoned executives<br />

that had long been crunching Olympic numbers.<br />

He knew only too well that the IOC receives<br />

approximately half of its revenue from media<br />

rights and the US portion has traditionally been<br />

greater than the rest of the world combined.<br />

It gives a global player like ESPN (owned by<br />

Disney) notable leverage. Perhaps the only other<br />

Phelps helped exonerate Ebersol- Getty Sport Images<br />

At least $28.34-billion over eight years (through 2<strong>01</strong>3) with Fox, CBS, NBC, ESPN<br />

and Direct TV<br />

At least $7.44-billion over six years (through the 2<strong>01</strong>5-16 Finals) with ESPN/ABC,<br />

TNT, Direct TV, Dish <strong>Network</strong> and iN Demand<br />

At least $6-billion over 11 years (through 2<strong>01</strong>3) for up to 66 collegiate<br />

championships with CBS, ESPN and Direct TV<br />

At least $4.87-billion over seven years (through 2<strong>01</strong>3) with Fox, ESPN, TBS, Direct<br />

TV, Dish <strong>Network</strong> and iN Demand)<br />

At least $4.8-billion over eight years through 2<strong>01</strong>4 with Fox, ESPN/ABC, TNT and<br />

Speed Chanel<br />

At least $2 billion (for the Vancouver 2<strong>01</strong>0 and London 2<strong>01</strong>2 Games) with NBC<br />

Universal<br />

party to bring a similar big picture orientation is<br />

Murdoch’s various Fox platform.<br />

Translation: ESPN (or possibly Fox) can<br />

amortise its US investment (i.e., paying a premium<br />

in one country) by averaging out its investment via<br />

other territorial purchases.<br />

NBC has long been the rights holder in<br />

the US and long appreciated by the IOC. “The<br />

Peacock” is also fronted by NBC Sports chairman<br />

Dick Ebersol and, as 2009 was wrapping up,<br />

Ebersol was verbal about the growing overtures<br />

by Comcast and the strong possibility the two<br />

companies would complete a deal by early 2<strong>01</strong>0.<br />

As this issue went to press (mid-November) that<br />

acquisition looked imminent.<br />

Interestingly, much has been made of the<br />

suggestion (or fact) that NBC overpaid for the<br />

2008 Games in Beijing. But in return, Ebersol<br />

received morning swimming finals (featuring<br />

Michael Phelps) so the action would be seen live<br />

in prime time in the US. When Phelps delivered,<br />

the ratings went through the roof and Ebersol<br />

was exonerated.<br />

For the IOC, the continued delivery of the<br />

Games, stage-managed in a carefully-crafted love<br />

letter from Ebersol to the American public - truly<br />

benefitting the IOC and its values - cannot be<br />

underestimated.<br />

Translation: Richard Carrion, the IOC’s finance<br />

commission chairman, would logically recommend<br />

taking the highest bid. But (and these are significant<br />

disclaimers) if Comcast buys NBC because it wants<br />

to establish itself as a major sports force in the US<br />

(to rival ESPN) … and bids aggressively … and if<br />

Comcast is able to keep Ebersol engaged beyond<br />

London 2<strong>01</strong>2 … and if Ebersol is asked to remind the<br />

IOC bid evaluators of his personal contributions in<br />

growing the Games in the US then the Comcast/NBC<br />

package, if particularly creative, might receive extra<br />

attention and could win despite slightly less dollars.<br />

So when will the IOC go to market A<br />

successful Winter Olympics in Vancouver for<br />

NBC (in terms of ratings, ad inventory sold,<br />

overnight, final ratings and critical appreciation<br />

by the media) could create favourable timing for<br />

the IOC anxious to bring Comcast and ESPN<br />

into a head to head showdown by June.<br />

On the other hand, by waiting for US market<br />

conditions to continue improving and by more<br />

fully priming the pump with Fox and CBS, the<br />

IOC might truly get four legitimate bidders.<br />

Admittedly, not all four networks will bid<br />

with real intent (meaning at least one will likely<br />

submit a stalking horse bid) but for the IOC to<br />

get four major players to the table may outweigh<br />

the benefits of a early bidding process.<br />

It would also allow IOC’s administration to<br />

believe that selecting Rio was just as viable as<br />

selectin Chicago.<br />

There is no doubt that Chicago’s loss cost<br />

the IOC money and Carrion acknowledged<br />

as much immediately following the vote in<br />

Copenhagen. The question remains what the<br />

discount percentage will ultimately equal. By<br />

selecting Rio, could the IOC have missed out on<br />

maybe as much as an extra $500-million from<br />

US broadcasters<br />

No one will know for sure but in his book<br />

Rome 1960, author David Maraniss noted that it<br />

is not uncommon for the IOC president to feel<br />

the pangs of revenue lost. Current IOC president<br />

Jacques Rogge will want his fine legacy enhanced<br />

by a great gathering of financial spoils from the<br />

Americans. Odds are that if his negotiators do<br />

their jobs well, the Sochi-Rio Express will bring<br />

in at least $2-billion. It is doubtful the bidders<br />

will overpay but one never knows at an auction.<br />

Money is a quirky commodity.<br />

Rick Burton is the David B. Falk Professor of Sport<br />

Management at Syracuse <strong>University</strong> and a former<br />

chief marketing officer of the USOC.<br />

SportBusiness <strong>International</strong> • No.152 • 12.09 21


EVENTS<br />

SHORTSTOP<br />

2020 OLYMPICS: Turkish city Istanbul<br />

will bid to host the 2020 Summer<br />

Olympics. Speaking at the Sports Event<br />

Management conference in London,<br />

Prime Ministerial sports adviser<br />

Mehmet Atalay said: “We decided not to<br />

bid for 2<strong>01</strong>6 while we concentrated on<br />

trying to make sure we had everything<br />

in place to launch a serious attempt for<br />

2020.” Istanbul hosted the 2005 UEFA<br />

Champions League final.<br />

WINTER OLYMPICS: Quebec City said it<br />

is considering a bid for the 2022 or 2026<br />

Winter Games. Quebec failed in bids to<br />

host the 2002 and 2<strong>01</strong>0 Winter Olympic<br />

Games. Host cities for the 2022 and<br />

2026 Winter Olympic Games will be<br />

chosen in 2<strong>01</strong>5 and 2<strong>01</strong>9 respectively<br />

FRENCH OPEN: The French tennis<br />

federation (FFT) threatened to move<br />

the French Open from Roland Garros<br />

if plans for a new roofed centre court<br />

are not approved by Paris City Council.<br />

The FFT is facing ‘hostility’ from<br />

the Council and local residents over<br />

the development. The project was<br />

announced last May, with an estimated<br />

finish date of 2<strong>01</strong>3 or 2<strong>01</strong>4.<br />

2<strong>01</strong>4 WINTER OLYMPICS: <strong>International</strong><br />

Olympic Committee president Jacques<br />

Rogge expressed his approval for<br />

Russia’s preparations for the 2<strong>01</strong>4<br />

Winter Games in Sochi. Rogge said<br />

he was encouraged by “the pace and<br />

quality’’ of the work in the Black Sea<br />

resort area where almost all of the<br />

venues and infrastructure are being<br />

built from scratch.<br />

2<strong>01</strong>4 YOUTH OLYMPICS: Poznan<br />

announced its intention to bid for<br />

the 2<strong>01</strong>4 Youth Olympic Games. The<br />

Polish city has hosted numerous<br />

Olympic Sports events in the recent<br />

years such as the 2009 Rowing World<br />

Championships, the 2009 European<br />

Championships in Basketball, and is<br />

one of the key host cities for the 2<strong>01</strong>2<br />

UEFA EURO. The 2<strong>01</strong>4 Youth Olympic<br />

Games bid is a part of the city’s<br />

commitment to sport and to promoting<br />

a healthy life style among its citizens.<br />

QATAR BID GETS SERIOUS<br />

Matthew Glendinning, reports on the Middle East State of Qatar’s highprofile<br />

bid to host the 2022 <strong>FIFA</strong> World Cup.<br />

THE QATAR 2022 World Cup Bid team is<br />

taking its Bid message of ‘unity, progress and<br />

understanding’ to football industry conferences<br />

and exhibitions worldwide in a high-profile<br />

promotional push for the Middle Eastern state’s<br />

hosting ambitions.<br />

From the October’s ‘Leaders in Football’<br />

Conference in London to a major exhibiting<br />

presence at Soccerex in Johannesburg in<br />

November, Chairman of the Qatar 2022 Bid,<br />

HE Sheikh Mohammed Bin Hamad Bin Khalifa<br />

Al-Thani is championing what would be the<br />

first global sporting event ever to be hosted in<br />

the Middle East - and confirms that Qatar is<br />

“extremely serious” about its plans to host the<br />

World Cup in 2022.<br />

“We are not doing this just to give Qatar some<br />

publicity,” said the Qatari Royal. “We really want<br />

to host the World Cup and we are more than<br />

capable of doing so. There is a huge interest and<br />

passion across the Middle East for football and<br />

we have a track record of hosting great events -<br />

national, regional and multi-national.”<br />

Sheikh Mohammed says that he feels people<br />

do not yet know Qatar as well as he would like<br />

them to. “We’re a small nation, but we have<br />

made some huge leaps forward. We are blessed<br />

by having a very strong economy - and this is<br />

why we are able to invest in our future. Our<br />

World Cup Bid is part of that investment.<br />

“Why are we bidding Because we truly<br />

believe in the <strong>FIFA</strong> slogan ‘For the Game. For<br />

the World’. There are not enough global events<br />

in the Middle East. We want to give people in<br />

the Middle East the chance of experiencing this<br />

wonderful tournament.”<br />

In answer to those who question whether, given<br />

its small size, Qatar could host the World Cup,<br />

Sheikh Mohammed responds: “I guarantee we can<br />

host it. It’s all going to be about the fan experience.<br />

The compact size of our proposal will give fans<br />

the opportunity to see every match, without the<br />

need for travel and hotel changes. It will be highly<br />

organised, so there will be hardly any need for<br />

commuting between matches.”<br />

Nor, says Sheikh Mohammed, would the<br />

summer temperatures in Qatar be a problem for<br />

players or fans. “It’s only 2009 and we already<br />

have cooling technologies that create a very<br />

comfortable atmosphere in our stadiums, while<br />

outside temperatures are much higher.<br />

“And just look at what we have achieved in<br />

only the past few years in our country - and then<br />

please believe that in 2022 we will certainly have<br />

amazing cooling technologies for stadiums,<br />

training grounds and fan zones.<br />

“We want to do this by developing<br />

environmentally-friendly technologies - and<br />

these technologies will then be used to the<br />

benefit of other countries around the world.”<br />

Looking further ahead, Sheikh Mohammed<br />

explains that the Bid meshes with Qatar’s<br />

existing long-term infrastructure development<br />

plan, the ‘Qatar Vision 2030’. “Hosting the<br />

World Cup fits into that existing plan - and<br />

would be an important chapter in that plan. We<br />

want a Qatar World Cup to leave a long legacy,<br />

not just in Qatar but much further afield,” says<br />

Sheikh Mohammed.<br />

“We would also like to put on a really familyfriendly<br />

World Cup, where parents feel safe<br />

bringing their children to watch the match. Their<br />

young memories of a fantastic World Cup will<br />

also be our legacy to <strong>FIFA</strong>.”<br />

England lost to Brazil last month in Doha - Getty Images Sport<br />

COMMONWEALTH GAMES: Cardiff<br />

began forming a bid for the 2022<br />

Commonwealth Games which will be<br />

presented to the Welsh Assembly.<br />

Cardiff has hosted a Rugby World Cup<br />

final, FA Cup finals, rallying, Grand<br />

Prix speedway and an Ashes Test in<br />

recent years.<br />

22 SportBusiness <strong>International</strong> • No. 152 • 12.09


EVENTS<br />

SHORTSTOP<br />

RYDER CUP: London-based marketing<br />

agency The Sports Consultancy was<br />

appointed by Spain’s Real Federacion<br />

Espanola de Golf to advise on all<br />

aspects of the country’s bid to host the<br />

Ryder Cup in 2<strong>01</strong>8.<br />

THEY ARE SOME of the hottest tickets in sport,<br />

but the heat has been turned up even further in<br />

the fierce battle to prevent fans being defrauded<br />

in their desperation to see the 2<strong>01</strong>0 <strong>FIFA</strong> World<br />

Cup finals next summer.<br />

A quick search on the internet brings up a<br />

handful of websites offering ‘unbeatable’ deals<br />

on both tickets and even packages. Some are<br />

legitimate <strong>FIFA</strong>-approved tour operators, but<br />

the vast majority fall into the category of<br />

‘rogue trader’.<br />

The danger therefore is that despite<br />

warnings, numerous supporters will sign up for<br />

a package which may, or may not, get them to<br />

South Africa but will certainly not secure entry<br />

into the stadia. It is believed a vast number have<br />

already handed over money for worthless tickets.<br />

The scams vary from a simple tickets-forcash<br />

arrangement, credit card-based fraud or<br />

e-mails telling the recipient that they have won a<br />

lottery backed by the South African government,<br />

supposedly counter-signed by Nelson Mandela.<br />

The <strong>FIFA</strong> website goes to great lengths<br />

to explain that ticket-only deals should only<br />

be purchased through its offices, while those<br />

wishing to combine matches with hospitality<br />

will only be guaranteed to get what they require<br />

through <strong>FIFA</strong>’s partners MATCH.<br />

The governing body adds that the popular<br />

ticket-and-travel packages associated with major<br />

sporting events will only be available through its<br />

60 affiliated tour operators scattered around the<br />

world, and that official match tickets will only be<br />

printed a few weeks before the tournament.<br />

The <strong>International</strong> Olympic Committee also<br />

took legal action against websites that set up<br />

Olympic ticketing scams for Beijing 2008, with<br />

people paying for tickets and accommodation<br />

that did not exist.<br />

Warnings over ‘rogue’ ticket sellers - Getty Images Sport<br />

TACKLING TICKET THIEVES<br />

With the third phase of 2<strong>01</strong>0 World Cup tickets going on sale December 4,<br />

Adrian Hill investigates what the authorities are doing to try to stop tens of<br />

thousands of individuals being ripped off by rogue operators.<br />

In one instance fans paid about £30,000 for<br />

tickets and accommodation that did not exist via<br />

the website www.beijingtickets.com.<br />

The World Cup situation has become so<br />

intense that <strong>FIFA</strong> has called on the assistance<br />

of London’s Metropolitan Police, specifically<br />

its e-crime unit. ‘Operation Phyllite’ has so<br />

far closed down over 100 websites that were<br />

offering unauthorised goods connected not<br />

just with the World Cup, but Premier League,<br />

international and FA Cup matches. The Met<br />

claims it’s the biggest single cull of websites in<br />

the history of law enforcement.<br />

“Fraudsters capitalise on the victim’s desire<br />

to attend an event knowing that they will pay<br />

out for the opportunity to be present at that all<br />

important one-off event,” the e-crime unit’s<br />

Detective Superintendent Charlie McMurdie<br />

says. “The risk begins when your desire to<br />

purchase the tickets blinds your judgment, or<br />

leads you to unlawful websites. If it looks too<br />

good to be true, it probably is”.<br />

The Australian Competition and Consumer<br />

Commission (ACCC) said an international<br />

review of thousands of websites, including<br />

1,400 based in Australia, underscored the need<br />

for consumer vigilance against unauthorised<br />

websites. <strong>FIFA</strong>’s Legal Affairs team is working<br />

closely with other international authorities to<br />

spot illegal offers and then take action to put the<br />

traders out of business.<br />

The draw in Cape Town on December 4 is<br />

third of five phases of ticket sales and, with the<br />

first round matches revealed, will be the busiest<br />

of the lot as fans search frantically to find a<br />

means to watch their country on the biggest stage<br />

in football. Whether or not this will coincide with<br />

a proliferation of scammers across the internet,<br />

the authorities are primed to take action.<br />

AMERICA’S CUP: Alinghi, the America’s<br />

Cup holder, accepted the Spanish port<br />

of Valencia as the venue for next year’s<br />

race against BMW Oracle. Oracle said<br />

it was “very pleased to see that Alinghi<br />

has finally agreed with us that Valencia<br />

in February is the correct venue to hold<br />

the 33rd America’s Cup”.<br />

GERMAN SUPER CUP: The German<br />

Football League (DFL) reintroduced<br />

the German Super Cup to the domestic<br />

footballing calendar for the first time<br />

in 14 years. The proposal received<br />

majority approval and will see the<br />

Bundesliga champions take on the<br />

DFB-Pokal winners in the official<br />

prelude to the 2<strong>01</strong>0-11 season.<br />

EUROPEAN ATHLETICS: Helsinki<br />

was awarded the European Athletics<br />

Championships for a third time. The<br />

Finnish capital, which hosted the event<br />

in 1971 and 1994, was the unanimous<br />

choice of the European Athletics<br />

Council to stage the championships<br />

in 2<strong>01</strong>2. The event will take place<br />

between June 27 and July 1.<br />

2<strong>01</strong>2 OLYMPICS: UK newspaper the<br />

Telegraph reported the real cost of the<br />

London 2<strong>01</strong>2 Olympic Games is<br />

£2.7 billion more than the UK<br />

government has stated. It said the<br />

announced sum of £9.3 billion public<br />

Olympic spending “substantially<br />

understates” the true position which<br />

is at least £12 billion. The extra cost<br />

reportedly includes £1.15 billion spent<br />

to buy and clean up the Olympic site<br />

and £269 million in interest payments.<br />

RUGBY UNION: The coach of the Italian<br />

rugby union team said he wants his<br />

side to remain based at decaying Rome<br />

stadium Stadio Flaminio, despite an<br />

80,000 attendance for Italy against New<br />

Zealand at the San Siro in Milan.<br />

2<strong>01</strong>0 OLYMPICS: Organisers of the 2<strong>01</strong>0<br />

Vancouver Winter Games postponed<br />

the third phase of ticket sales because<br />

of major website problems which<br />

prevented the sale of 100,00 tickets.<br />

Officials made additional tickets<br />

available on November 14 due to the<br />

“online technical glitch”.<br />

SportBusiness <strong>International</strong> • No.152 • 12.09 23


EVENTS<br />

PLAYING IT THE AMERICAN WAY<br />

Wembley Stadium gets a US-transformation - Getty Images Sport<br />

The NFL staged another hugely successful regular season game at Wembley Stadium in October, rekindling debate<br />

over a London franchise and whether the Super Bowl could one day come to the UK. Adrian Hill looks at whether<br />

the British, and the rest of the world, need to embrace the ‘American Experience’.<br />

AMERICAN FOOTBALL’S ‘team of the decade’,<br />

the New England Patriots, exhibited the power,<br />

speed and skill that have taken them to three<br />

Super Bowl triumphs in the 21st century by<br />

crushing the Tampa Bay Buccaneers 35-7 at<br />

Wembley Stadium in October.<br />

The NFL charm offensive, which came to<br />

Wembley for the third successive year, aims<br />

to seduce not just the relatively small band of<br />

avid American Football followers in the UK but<br />

the so-called floating voters, those who may be<br />

swayed by the distinctly different atmosphere,<br />

where sport is certainly not everything.<br />

Cheerleaders, parties in the car park, an<br />

NFL cinema, live bands and video game tents,<br />

as exhibited at Wembley, are all part of the<br />

established fun of a day out at an NFL game.<br />

The stated intention is, eventually, to base an<br />

NFL franchise in London. Certainly the devotees<br />

who have flocked beneath Wembley’s famous<br />

arch on an October Sunday for the past three<br />

years would grasp the concept, but is there an<br />

appetite among the wider public For any large<br />

franchise to work the surrounding community<br />

as a whole must get behind it.<br />

Of course, the rhythm of American sports<br />

is distinctly different to what most British fans<br />

are used to. The concept of ‘time-outs’ is an<br />

opportunity for off-field entertainment, while<br />

the pulsating nature of Premier League football<br />

and Heineken Cup rugby, with very few lengthy<br />

stoppages, provide little scope for additional<br />

non-sporting entertainment. And the question<br />

is, would the fans in places such as Birmingham,<br />

Manchester and Newcastle really want it anyway<br />

Where the NFL frequently attracts some of<br />

the biggest bands in popular music, traditional<br />

British sporting occasions, such as the FA Cup<br />

final and Six Nations matches, only offer the<br />

singing of the anthems, a few fireworks and<br />

the church hymn ‘Abide With Me’. Does British<br />

sport need to learn from the ‘American-Way’<br />

Julian Marks, of event360, organised<br />

the NFL show in London and has provided<br />

entertainment at many showpiece occasions in<br />

various sports over the years.<br />

Marks and others in his field are essentially<br />

responsible for everything inside the stadium<br />

that’s not the actual sporting event - whether<br />

content for the huge display screen, music,<br />

announcements or entertainment.<br />

24 SportBusiness <strong>International</strong> • No.152 • 12.09


EVENTS<br />

“The crowd at the NFL game is a different<br />

audience,” Marks told SportBusiness<br />

<strong>International</strong>. “There are a lot of Americans and<br />

ex-pats, plus British American football fans.<br />

They expect entertainment and really buy into<br />

it - it’s not just a match for them, an NFL game<br />

is an event.<br />

“Getting a full NFL fixture in London is a<br />

big deal, and we had approximately 90 per cent<br />

of the crowd in the stadium pre-match. You get<br />

nothing like that figure in the States, where<br />

people tend to drift in before kick-off. An NFL<br />

game outside America is a real event and people<br />

want to savour it.”<br />

Difficult to change habits<br />

The next step may be to double, or even<br />

quadruple, the number of regular season NFL<br />

matches at Wembley, although the plan raises<br />

issues about damage to the Wembley pitch with<br />

the NFL season running in conjunction with<br />

the traditional sequence of autumn England<br />

international football matches.<br />

The American approach to staging sports<br />

events clearly works when transplanting one<br />

of their own into another country, but can<br />

it be successful within traditional British<br />

sporting activities, or indeed for other<br />

non-American pursuits worldwide Is there<br />

even a demand for it<br />

“British sports fans are a bit set in their<br />

ways and the clubs that could afford to spend<br />

on entertainment don’t really need to, because<br />

they could sell their tickets 10 times over as it<br />

is, so there’s no requirement to lure people<br />

in,” explains Marks.<br />

“The clubs that would have more of<br />

an interest in entertainment wouldn’t<br />

or couldn’t afford to commit the money<br />

required on a game-by-game basis. So,<br />

I think we will only really see sports<br />

entertainment happening at big matches<br />

in the UK. Football and rugby are<br />

very different to American sports.<br />

Fans like to drink in pubs,<br />

chatting to their mates and<br />

come into the stadium late. It’s<br />

difficult to change habits.”<br />

This selective approach<br />

has worked for Marks, his<br />

company having incorporated<br />

such techniques as innovative banners<br />

and fireworks at international matches and<br />

Cup finals, earning praise from governing<br />

bodies and sponsors alike who are of<br />

the shared opinion that it adds to the<br />

spectacle. And even if it isn’t well received<br />

by spectators, putting on a spectacle can<br />

still be a valuable commercial tool.<br />

“Sponsorship of sports entertainment<br />

is an opportunity for a brand to get an<br />

emotional bond with the spectator. It’s<br />

an opportunity to enhance its exposure,”<br />

explains Fred Porro, managing director of the<br />

UK arm of Ignition, a leader in the field of<br />

experiential marketing.<br />

“Everyone wants to be entertained and the<br />

key is to find out how to do that. What works in<br />

the US does not necessarily work in the UK, or<br />

elsewhere. You have to be cognisant of where<br />

you are and what your audience wants.<br />

“I think 20,000 showing up for the postmatch<br />

‘tailgate party’ at Wembley was proof that<br />

it worked there.”<br />

There have certainly been signs that<br />

showmanship is starting to be more welcome<br />

in global events recently. This year, Formula<br />

One has introduced ‘F1 Rocks’, live concerts<br />

involving some of the world’s leading artists<br />

running alongside the Grand Prix. <strong>FIFA</strong> plans<br />

an event along similar lines, the ‘Official<br />

Kick-Off Celebration Concert’, at the Orlando<br />

Stadium in Johannesburg on June 10 next year.<br />

“Music complements sport incredibly well<br />

and has intrinsic value,” Porro argues. “We’ve<br />

seen this with F1 Rocks and the show that<br />

Control Room are going to put on for the <strong>FIFA</strong><br />

World Cup Kick-Off Celebration in South Africa<br />

will also have a very big musical influence. It<br />

will be more focused than the rather theatrical<br />

performances we see at the Olympics and will<br />

be something special.”<br />

Spotlight on London 2<strong>01</strong>2<br />

The Olympic Games was the first global<br />

sporting event to adopt ceremonies and<br />

entertainment to bookend the sporting spectacle<br />

and the Chinese brought it to a new level with<br />

their lavish production last year.<br />

The question from a UK point of view at least<br />

is, following the successes of Beijing and of the<br />

NFL event on home turf, what can be done for<br />

the 2<strong>01</strong>2 Olympics but also beyond the Games<br />

“I think China missed an opportunity after<br />

the Beijing Olympics to extend the legacy,” says<br />

Porro. “Now there is a chance for Brazil, with<br />

both the 2<strong>01</strong>4 World Cup and 2<strong>01</strong>6 Olympics<br />

coming up, to really make its mark. And with<br />

the carnival spirit of Rio they have all the<br />

ingredients to put on some fabulous shows.”<br />

The concept of entertainment at sports<br />

events has certainly come a long way since<br />

marching bands at FA Cup finals and the<br />

release of doves at the Olympic Games. America<br />

is the world leader but Marks is keen to point<br />

out that each event needs to be taken in its own<br />

context, both in terms of location but also within<br />

its sector and the culture of its following.<br />

“Entertainment has been a great success<br />

in Twenty20 cricket, for example, where it has<br />

seamlessly slotted in with the action, and I can<br />

only see it growing and growing in that form of<br />

the sport,” he adds.<br />

“But I’m not sure that the same is true of<br />

Test cricket. I couldn’t see dancing girls being<br />

tolerated during the Test at Lord’s.”<br />

SportBusiness <strong>International</strong> • No.152 • 12.09 25


sAiling inTo<br />

The fuTure<br />

As PrinciPAl of TeAm origin, sir KeiTh mills hAs Two goAls - win The AmericA’s<br />

cuP And reduce globAl cArbon emissions. buT ThAT’s noT All. As he Told Kevin<br />

roberTs, he Also wAnTs To helP chAnge The wAy The world’s oldesT regulAr<br />

inTernATionAl sPorTs evenT is governed.<br />

By hIS own admISSIon, Sir Keith Mills is<br />

not the world’s best sailor. He may be a globally<br />

revered marketer and entrepreneur who has been<br />

writing the cheques that have kept Team Origin,<br />

the UK’s America’s Cup contender, in the water<br />

these past two and a half years, but he has a<br />

realistic take on where his talents begin and end.<br />

“Other team principles like (Ernesto) Bertarelli<br />

and (Larry) Ellison are both part of their race<br />

teams and are on the boat. But I won’t be sailing.<br />

The only people on a boat in Team Origin Colours<br />

will be the best in the world. In the same way, the<br />

only people in our design team will be the best in<br />

the world.”<br />

That’s more of a declaration of intent on behalf<br />

of Team Origin than an assessment of his own<br />

abilities. And it is made despite his having been<br />

part of a winning crew in the Clipper Round The<br />

World Race, a sporting achievement which would<br />

buy many people a lifetime of bragging rights.<br />

But Sir Keith isn’t about bragging. He is about<br />

influence rather than profile as evidenced by his<br />

involvement at the heart of London’s successful<br />

bid to bring the 2<strong>01</strong>2 Olympic Games to the UK<br />

capital and his role as deputy to Lord Coe on<br />

the Organising Committee. He’s also a board<br />

member of Premier League club Tottenham<br />

Hotspur and an advisor to the England campaign<br />

to host the 2<strong>01</strong>8 <strong>FIFA</strong> World Cup.<br />

Elsewhere he is in a highly publicised battle<br />

with Coutts, the private bank, over its advice and<br />

handling of his investment of some £65 million in<br />

AIG Life - an investment which cost him some<br />

£30 million of the reported £160 million share<br />

of the proceeds of the sale of LMG, the company<br />

which owned Nectar, the loyalty scheme operator.<br />

His sporting loves are illustrated in his office<br />

in Pall Mall, London, where a framed picture of<br />

Spurs centre back Jonathan Woodgate (“Oh that’s<br />

Woody”) sits alongside an impressive model of an<br />

America’s Cup Class boat in Team Origin colours.<br />

But one can only guess that, even for a man<br />

clearly adept at juggling projects, Team Origin<br />

must be top of mind right now.<br />

In many respects, Team Origin is blazing a trail<br />

for sport and sports marketing in an age where<br />

discussions over the power of sport to play a role in<br />

helping protect the environment have generated as<br />

much heat as light.<br />

There’s been a lot of talk, but action has been<br />

thin on the ground and on those occasions when<br />

sports and brands have put their heads above the<br />

environmental parapet, there have almost always<br />

been accusations of ‘greenwashing’.<br />

Team Origin is a project that Mills sees as both<br />

a “very, very serious bid to win the America’s<br />

Cup” and to have “a real impact on carbon<br />

emissions worldwide.”<br />

And that is one hell of a challenge. “Last year<br />

we sat down and talked about how we should<br />

position Team Origin and to me it was pretty clear<br />

that the world really has changed and the way in<br />

which companies are marketing their products and<br />

services has changed,” Mills says. “The levels of<br />

corporate social responsibility shown by companies<br />

and their awareness of environmental issues have<br />

changed for the better. I felt that we, as a team,<br />

needed to be reflective of those changes.<br />

“When we launched two and a half years ago we<br />

had put in place a grass roots sailing programme<br />

with the RYA called On Board and this is getting<br />

500,000 kids in the UK into sailing. But we<br />

wanted to see if we could do more that that in<br />

terms of making our contributions to society.”<br />

It became obvious to Mills and the team<br />

that their sport provided them with a unique<br />

opportunity. The America’s Cup represents the<br />

very pinnacle of a sport which delivers the most<br />

obvious and consistent example of how natural<br />

energy - the wind and waves - are used to generate<br />

excellence in sporting performance.<br />

“We asked ourselves whether there was a way we<br />

could use that extraordinary phenomenon to help<br />

reduce our carbon footprint and promote the race<br />

against climate change,” Mills explains.<br />

Consultants McKinsey were drafted in to examine<br />

the possibilities and advise on whether the vision<br />

could be turned into a marketing reality which<br />

delivered value for a range of different partners.<br />

“From the outset we were aware that we needed<br />

a partner if we were going to make this work. It<br />

is a complex area and one that we alone didn’t<br />

understand enough of.”<br />

26 SportBusiness <strong>International</strong> • No.152 • 12.09


Sir Keith Mills - Getty Images Sport<br />

After a thorough search, The Carbon Trust was<br />

selected and, earlier this year, signed a partnership<br />

agreement for The Race For Change. The Carbon<br />

Trust will - among other things - advise the team<br />

on Best Practice in minimising its own carbon<br />

footprint, something which is fundamental to the<br />

credibility of the entire exercise.<br />

For Sir Keith, the twin goals are clear. “We<br />

intend to win the America’s Cup and if we can<br />

win the race against climate change we will have<br />

accomplished extraordinary feats,” he says.<br />

The America’s Cup has always been a rich man’s<br />

sport but few individuals could personally bear<br />

the cost of designing, developing, building and<br />

refining boats and keeping a professional crew on<br />

the water without corporate support.<br />

And Team Origin believes it has a unique<br />

proposition for corporate partners who share<br />

the team’s environmental agenda and concerns<br />

and want to find a credible way of leading carbon<br />

reduction efforts by example.<br />

The quest is for four Premier partners and a raft<br />

of smaller partners who “have similar goals and a<br />

business imperative of not simply reducing their<br />

own carbon footprint but telling the world that is<br />

what they are doing and telling others to so get<br />

behind the Race For Change campaign.”<br />

In many respects sailing is the consummate<br />

standard bearer for environmental issues and<br />

the stars appear to be in perfect alignment as<br />

corporations around the world scramble to meet<br />

Sir Keith Mills,<br />

Principal, Team origin<br />

Sir Keith Mills worked for 20 years in the<br />

advertising industry and in 1988, founded<br />

Air Miles <strong>International</strong> Group BV (AMIG) to<br />

develop the AIR MILES programme.<br />

He remains Chairman of Loyalty<br />

Management Group Ltd (LMG), the company<br />

which owns and manages the Nectar<br />

programme in the UK and licenses Air Miles<br />

programmes internationally.<br />

Sir Keith was <strong>International</strong> President<br />

and CEO of London 2<strong>01</strong>2, the company<br />

that was established to bid for the 2<strong>01</strong>2<br />

Olympic Games. There he led the team<br />

and, along with Lord Coe, was responsible<br />

for developing the bid strategy and<br />

persuading the 115 IOC members that<br />

London should be granted the rights to<br />

host the Olympic and Paralympic Games<br />

in 2<strong>01</strong>2. Sir Keith remains as non-executive<br />

Deputy Chairman of LOCOG alongside Lord<br />

Coe. He is also a non-executive director of<br />

Tottenham Hotspur FC.<br />

He is a keen amateur sailor and, in 1999,<br />

was one of the crew that won the Clipper<br />

Round the World Yacht Race.<br />

the social responsibility expectations of a world<br />

which is making business choices in new ways.<br />

“Just think,” says Sir Keith. “There are no<br />

engines on these boats. They can sail at twice the<br />

speed of the wind that is propelling them. It is<br />

the ultimate demonstration of capturing natural<br />

energy and generating performance.<br />

“Our message to businesses is that you don’t<br />

have to reduce your profit to reduce your carbon<br />

footprint. Indeed we think that if you adopt<br />

carbon reduction technologies you actually make<br />

more money.<br />

“This is a way you can reduce carbon footprint<br />

by 20 per cent over as period of time and have a<br />

better performing company as a result... All that<br />

and we can win the America’s Cup together.”<br />

To date the response from the corporate sector<br />

has been enthusiastic.<br />

“We have really hit a nerve,” Sir Keith says. “A<br />

lot of companies are taking this really seriously<br />

now. It is a Key Performance Indicator for many<br />

CEOs and they know that this can really resonate<br />

relative to traditional Olympic, F1 or even football<br />

sponsorship. It is relatively inexpensive and impact<br />

could be enormous.”<br />

It is, he says, the Real Deal. No participating<br />

company will be accused of ‘greenwashing’<br />

because they will have to sign up to a programme<br />

of internal carbon reduction measures which<br />

ensures that they walk the walk as well as talking<br />

the talk.<br />

SportBusiness <strong>International</strong> • No.152 • 12.09 27


This has been an unhappy period for the<br />

Americas Cup which is indicative of the fact<br />

it is governed by an out of date structure.<br />

The Deed of Gift isn’t really fit for purpose<br />

Sir Keith draws on his experience with London<br />

2<strong>01</strong>2 to provide an example of how sports<br />

properties can work with partners and suppliers to<br />

effect change.<br />

“Between now and 2<strong>01</strong>2 the London Organising<br />

Committee will have signed 75,000 commercial<br />

contracts with companies, Every single one of<br />

those suppliers has to sign up for and demonstrate<br />

their sustainability credentials. That’s a guarantee<br />

that their products and services meet those<br />

standards - and the same applies to their sub<br />

contractors,” he says.<br />

“So you can see that the impact of that<br />

sustainability strategy is felt across tens of<br />

thousands of companies across the UK.<br />

“Bringing together partners behind Team<br />

Origin, the same will happen. Some of the people<br />

we have talked to are among the biggest companies<br />

in the world and the impact of having them<br />

practice what they preach is not insignificant.<br />

“One of the issues we face is persuading<br />

companies and consumers that unless behaviour<br />

alters we will continue to have a climate change<br />

problem and one of the most powerful tools for<br />

doing this around the world is sport.<br />

“Naturally I would like to think that what we<br />

are doing with this America’s Cup team will be<br />

the first of many initiatives where sport is used to<br />

improve the environment.”<br />

While there is no doubting Sir Keith’s own<br />

commitment to the cause, it is important not<br />

to be carried away by the notion that this is not<br />

just an environmental initiative carried by sport.<br />

Team Origin is an extremely serious contender for<br />

the America’s Cup, whenever and wherever it is<br />

eventually contested.<br />

While it is a UK entry, it is a multi-national<br />

team which beings together some of the world’s<br />

most talented sailors and technicians. Under multi<br />

Olympic Gold medal winning skipper Ben Ainslie<br />

is a hugely experienced international crew and the<br />

team is convinced that it can give anybody a run<br />

for their money, something they demonstrated<br />

during the Luis Vuitton series in Nice during<br />

November.<br />

“Ours is an international team and we are<br />

talking to big multinational companies. We may<br />

have a British skipper but many of the crew are<br />

from outside the UK. We are taking an entirely<br />

professional approach because while there are still<br />

wealthy benefactors prepared to invest their time<br />

and money in sport, behind them there needs to<br />

be increasingly professional team management,”<br />

says Sir Keith who expects initial partnership deals<br />

to be signed in the first quarter of 2<strong>01</strong>0.<br />

“Our proposals are based on a five year<br />

partnership and the companies we are talking to<br />

want to be in for the long haul. They are buying<br />

into a long-term programme and in that five years<br />

there will probably be two America’s Cups and a<br />

lot of other elite sailing competitions.<br />

“If we are successful in our goal of winning<br />

the America’s Cup, the marketing impact will be<br />

huge. It has never been won by a UK team and it<br />

will be a truly historic moment.<br />

Of course we then have the ability to host it<br />

in this country where it can be a Mini Olympic<br />

Games in respect of its ability to regenerate<br />

one of the major ports. Just look what has been<br />

achieved in Valencia.”<br />

While the scope of Team Origin’s vision and the<br />

power of the Race For Change concept are beyond<br />

dispute, there appears to be one weak link in the<br />

chain - the America’s Cup itself.<br />

The competition, and all those who are part of it,<br />

has been becalmed by a series of legal challenges<br />

which, at the time of writing mean that we don’t<br />

know where or when the next edition will take<br />

place or what format will be adopted.<br />

Ultimately the fault-line runs through the<br />

Deed of Gift, a kind of arcane covenant which<br />

ultimately governs the event. According to Sir<br />

Keith it has no place in today’s world of big<br />

money sport.<br />

“This has been an unhappy period for the<br />

Americas Cup which is indicative of the fact it is<br />

governed by an out-of-date-structure. The Deed of<br />

Gift isn’t really fit for purpose now and every 20 or<br />

30 years there is a dispute which ends up in court<br />

because it’s the only mechanism to resolve issues,”<br />

Mills explains.<br />

“Ironically, both sides recognise that is<br />

essentially the problem and there is a ground<br />

swell of opinion amongst the America’s Cup<br />

community - including the Defender and the<br />

Challenger - that a new governance structure<br />

needs to be put in place and a number of us have<br />

had discussion over a few months with all the<br />

interested parties about making that happen after<br />

the next Deed of Gift match.<br />

“We hope the America’s Cup after next, the<br />

34th America’s Cup match, will be sailed under a<br />

different structure - that’s work in progress. Look<br />

at all sports, whether F1, the Premier league or the<br />

Olympic Games and there are governance lessons<br />

to be learned. None of them is perfect and all<br />

have their strengths and weaknesses. We have an<br />

opportunity with the America’s Cup to learn from<br />

the structures of others.<br />

“We have to adopt a governance structure which<br />

is fit for purpose and which reflects the scale and<br />

complexity of the event and the way media rights<br />

are governed these days. Out of a really unhappy<br />

situation we could have a really remarkable<br />

turnaround.”<br />

Sir Keith is confident that there will be a<br />

resolution to end the current impasse. “As a team<br />

we are working on the expectation that it will be<br />

sorted some time next year.<br />

“I decided to bring the team back together<br />

again and we announced a programme of 200<br />

days of sailing training for next year. We need to<br />

get the team back in the water and race fit in the<br />

expectation that we will get into an America’s Cup<br />

cycle during 2<strong>01</strong>0,” he says.<br />

“Our sailing programme is not dependent on<br />

the America’s Cup. There is a Luis Vuitton series<br />

which races in Nice in the America’s Cup boats<br />

and we will be supplementing that sort of racing<br />

with the Audi Med Cup, a semi pro circuit.<br />

“There will be a lot of top class racing<br />

irrespective of the America’s Cup but this is a big<br />

business to keep on the water. I have funded it<br />

for the last two and a half years and have had a<br />

small number of commercial partners who have<br />

provided value in kind.<br />

“But we have not really had anything to offer to<br />

them until now,” he says.<br />

Given the strength of the America’s Cup brand<br />

and the genuine quality of the Team Origin crew,<br />

technical and management teams, the sporting<br />

components of this remarkable project are firmly<br />

in place. Now it is up to the corporate world to back<br />

the team’s environmental aspirations with money<br />

and harness the power of sport to their commercial<br />

and social objectives.<br />

Whatever the eventual outcome of the America’s<br />

Cup one thing is for sure. Team Origin and The<br />

Race For Change is set to become a textbook<br />

example and Sir Keith Mills may come to be seen<br />

as the man who helped change the relationship<br />

between sport, the corporate world and the<br />

environment forever.<br />

28 SportBusiness <strong>International</strong> • No.152 • 12.09


NAMING RIGHTS<br />

IT’S ALL IN A NAME<br />

While economic uncertainty has hit many parts of the sponsorship world, the demand<br />

for naming rights for stadia and arena remains high. Andy Fry asks why naming rights<br />

deals retain their attraction in touch economic times and looks at the fresh thinking<br />

that are being used to derive maximum value.<br />

NO ONE IN SPORTS MARKETING would<br />

really question the value or impact delivered<br />

by naming rights sponsorships. But brands<br />

considering this approach need to realise it is<br />

far more complex than simply hoisting a banner<br />

over a sports stadium.<br />

For a start, it needs to be supported by a good<br />

marketing programme, explains Gareth Moore,<br />

international sales director at sponsorship<br />

consultancy Sport+Markt: “Naming rights<br />

sponsors form a league of their own,” he<br />

says. “But to guarantee success they have to<br />

implement their partnerships through further<br />

communication. Early communication with<br />

stakeholders such as fans and journalists is<br />

important because they have to be willing to<br />

accept and transport the name.”<br />

Moore’s point about fans cannot be overstated.<br />

While most are willing to tolerate a shirt<br />

or event sponsorship, the prospect of a company<br />

buying a venue’s name is - potentially - a much<br />

more direct assault on the fan’s relationship<br />

with their chosen club or team. Get it wrong<br />

and a naming rights deal can quickly become a<br />

millstone around a brand’s neck.<br />

This is why brands mostly prefer to be<br />

involved in new-build projects rather than<br />

trying to rename existing stadia. In the former<br />

scenario, it’s possible to be seen as the financial<br />

lynchpin of a project - as Emirates Airline was<br />

when it took naming rights to Arsenal’s new<br />

stadium in Ashburton Grove.<br />

In the latter, however, there’s a real risk that<br />

both fans and the wider community will reject<br />

the sponsorship - either by criticising it overtly<br />

or refusing to use its name as required. It’s<br />

tough, for example, to imagine Liverpool FC fans<br />

accepting a new name for Anfield. It’s easier,<br />

instead, to picture a brand attached to Liverpool’s<br />

proposed new-build at Stanley Park - since fans<br />

have yet to imprint on that venue and would be<br />

grateful for financial input into their club.<br />

A timely example of this issue is the decision<br />

by Newcastle United’s board to rename its iconic<br />

soccer stadium St James’ Park as sportsdirect.<br />

com@St James’ Park. Although this is just a<br />

stopgap measure until next season - when a new<br />

naming rights partner will be chosen - fans have<br />

already made it clear that they regard the move as<br />

an attack on the heritage of the club. Any brand<br />

that chooses to step in to this breach next season<br />

will need to think very carefully before doing so.<br />

The appeal of new-builds isn’t just about sidestepping<br />

a negative fan reaction, however. While<br />

established stadia have history on their side,<br />

it’s far more compelling for a forward-looking<br />

brand to be associated with a state-of-the-art<br />

stadium than a damp, crumbling fleapit where<br />

the toilets don’t flush. Not only that, but the new<br />

generation of stadia are being integrated more<br />

effectively into communities - something that is<br />

of real value to sponsors. Spurs chairman Daniel<br />

Levy made this point recently when he said<br />

his club’s proposed 56,000 stadium had been<br />

designed to be “a vibrant area 365 days a year -<br />

not a stadium with dead space surrounding it.”<br />

This distinction between new-builds and<br />

existing stadia isn’t a hard and fast rule - since it<br />

is possible to get involved with legacy facilities<br />

in a supporting role (naming a stand, for<br />

example, or partnering one part of a complex -<br />

as Timex has just done by linking up with the<br />

New York Giants’ new practice facility - now<br />

called the Timex Performance Center).<br />

The right fit<br />

But it’s worth noting that even in the US, where<br />

naming rights is a well-established and accepted<br />

concept, fans are not always comfortable with<br />

stadia name changes. The classic example is<br />

the San Francisco 49ers’ Candlestick Park<br />

which was known for a while as 3Com Park and<br />

Monster Park. Neither brand name ever won<br />

support from hardcore fans.<br />

Of course, getting fans and journalists on<br />

board is only part of the challenge - even in the<br />

context of a new-build facility. Assuming you<br />

get both those relationships right, there’s still<br />

a lot of work to be done in terms of making<br />

such a deal work, says Trevor Watkins, head of<br />

the sports team at legal firm Clarke Willmott.<br />

“Critical to a successful naming rights deal is<br />

creating a partnership where both the rights<br />

owner and the brand feel they are achieving<br />

their goals,” he explains. “For most venue<br />

owners, naming rights will be their single<br />

biggest asset, so they need secure a true value<br />

for them. Equally, brands need to feel that the<br />

venue rights owner is a partner which will work<br />

with them to fulfil their core objectives.”<br />

At the same time, it’s important not to<br />

operate as silos with the two sides pursuing<br />

agenda in parallel. “A real partnership is one<br />

where the two sides reinforce each other’s<br />

activities,” adds Watkins - who spent a period<br />

of time as chairman of AFC Bournemouth. “A<br />

good rights owner can facilitate the naming<br />

rights partner’s integration into the wider<br />

community. Likewise, leading brands have a lot<br />

more to offer than cash.”<br />

Still on the subject of new-builds, the<br />

importance of a transparent and pro-active<br />

partnership is evident from the moment<br />

the plans for the venue are drawn up, says<br />

Watkins: “Naming rights contracts are usually<br />

very long so marketers should ensure that<br />

their requirements in terms of exposure and<br />

activation are considered right from the start -<br />

before it’s too late. Getting involved early also<br />

means that the risk of an alternative venue<br />

name being used by fans is diminished.”<br />

Moore and Watkins agree that new-builds are<br />

generally a better option than existing stadia for<br />

the reasons above. But what kind of new-builds<br />

Should brands only be interested in NFL and<br />

soccer - or do other sports have something to<br />

offer And does it have to be major clubs like<br />

Arsenal - or do smaller sports franchise have<br />

something to offer “The answer to the first<br />

question is that a lot of venues are suitable for<br />

naming rights,” says Watkins. “Within sport,<br />

we’re seeing interesting activity in cricket (eg<br />

the Brit Oval and Swalec Stadium) and I’d say<br />

horse-racing is an untapped opportunity. But it’s<br />

not just professional sports venues. I think we’ll<br />

see activity at universities and multi-purpose<br />

civic facilities.”<br />

This point is underlined by recent trends<br />

in the US, where five college sports facilities<br />

have managed to secure deals worth more than<br />

U$20m in the last few years. Looking outside<br />

sports, one of the hottest US naming rights<br />

opportunities on the market right now is the<br />

GM Building, an iconic skyscraper in the heart<br />

of Manhattan’s shopping district - available<br />

for the first time in 40 years. What, you might<br />

say, has this got to do with sports marketers<br />

Well the simple fact is that it is competition for<br />

sports rights holders - just like the O2-branded<br />

millennium dome in London. Sports rights<br />

holders that are serious about securing a partner<br />

need to demonstrate the kind of best-practice<br />

seen in other sectors.<br />

At the same time, it’s a reminder that brands<br />

need to approach naming rights with an open<br />

mind. Leaving aside the fanbase, does the rights<br />

holder have a clear strategic vision Is the venue<br />

based near a transport hub Is it close enough to<br />

retail locations to facilitate experiential activity<br />

such as sampling Is the local economy in<br />

growth or decline Watkins, for example, talks<br />

up Plymouth - whose bid to be a 2<strong>01</strong>8 World<br />

Cup city could transform its value to a naming<br />

rights partner.<br />

As for the second point, the size of the<br />

rights owner, Watkins says it’s clearly a relevant<br />

consideration. “If you’re a global brand like<br />

Emirates then you want a partnership that delivers<br />

30 SportBusiness <strong>International</strong> • No. 152 • 12.09


NAMING RIGHTS<br />

Tottenham FC/PA Archive/Press Association Images<br />

“Critical to a successful naming rights deal is creating a partnership where both<br />

the rights owner and the brand feel they are achieving their goals. A good rights<br />

owner can facilitate the naming rights partner’s integration into the wider<br />

community. Likewise, leading brands have a lot more to offer than cash.”<br />

significant exposure and fits the brand image. But<br />

that’s not to say smaller franchises can’t secure<br />

excellent deals. For them, it’s about identifying the<br />

most appropriate partners then demonstrating<br />

why their facility might have relevance.”<br />

Credit crunch<br />

Of course, all of the above has to be seen in the<br />

light of the current recession - which has had an<br />

inevitable impact on the naming rights market.<br />

Take a look at the US, for example, where<br />

financial service company Citigroup Inc signed<br />

a U$400 million, 20-year deal in 2006 for the<br />

naming rights to the new New York Mets Major<br />

League Baseball stadium.<br />

When the deal was struck, it looked like<br />

the perfect example of a naming rights deal -<br />

between a state-of-the-art sports franchise and<br />

a stable blue-chip brand. But as a result of the<br />

financial crisis, Citigroup’s involvement with<br />

the Mets is now seen by many as excessive -<br />

particularly since the company needed U$45bn<br />

of taxpayer money to survive. When the<br />

economy bounces back, Citigroup’s deal with<br />

Mets may look like good value. But for now,<br />

the criticism it is receiving is indicative of the<br />

difficulties facing financial service groups.<br />

Not only are they strapped for cash, they are<br />

subjected to opprobrium by politicians and the<br />

press if they spend it.<br />

This is a challenge for the naming rights<br />

market, which has been heavily reliant on<br />

financial services for support. Aside from Citi, for<br />

example, one of the biggest US deals of the decade<br />

was Bank of America’s 20-year link-up with NFL’s<br />

Carolina Panthers. Others to have stepped up<br />

included Barclays, Prudential and the TCF Bank<br />

of Minneapolis - which paid $35 million for title<br />

rights to the <strong>University</strong> of Minnesota’s stadium<br />

(the biggest deal in the college sector).<br />

It’s a similar story outside the US. In<br />

continental Europe, says Moore, the standout deal<br />

is the Allianz Arena - home to Bayern Munich.<br />

Also prominent are the Suncorp Stadium in<br />

Brisbane and Aviva’s support for the new national<br />

stadium in Ireland - which, from 2<strong>01</strong>0, will host<br />

the country’s rugby union and football teams.<br />

Now though, the financial services has gone quiet<br />

- which may explain why major US franchises<br />

such as The Dallas Cowboys, New York Jets and<br />

the New York Giants (see box off) have yet to sign<br />

deals for newly-constructed stadia. It may also<br />

be one reason why 2009 saw the closure of the<br />

Denver-based Bonham Group, a market-leading<br />

agency which handled 100 naming rights deals<br />

over a 20-year period.<br />

New players<br />

It’s not all doom and gloom however. While<br />

many banks and automotive groups are<br />

struggling, some other sectors are still able<br />

to flex their muscles. O2, already mentioned,<br />

has spearheaded the mobile sector’s move into<br />

naming rights (though mainly, it has to be said,<br />

in live music venues). Similarly, Etihad Airlines<br />

has joined Emirates and American Airlines as a<br />

high-profile player in the space - securing rights<br />

to the 55,000-capacity Telstra Dome stadium<br />

in Melbourne. Back in North America, office<br />

supply retailer Staples has just become the first<br />

brand in the US to sign a naming rights deal<br />

in perpetuity - extending its current 20-year<br />

deal (1999-2<strong>01</strong>9)with the Los Angeles sports<br />

arena for the lifetime of the building (home of<br />

the Los Angeles Lakers NBA team). No price<br />

was revealed - but so iconic is the so-called<br />

SportBusiness <strong>International</strong> • No.152 • 12.09 31


NAMING RIGHTS<br />

CORNERSTONE SPONSORS<br />

The O2 is a successful example Getty Images Sport<br />

Staples Center that it’s hard to see either side<br />

wanting to end the partnership. For Staples, the<br />

deal represents an onsite audience of 4 million<br />

people a year - not to mention huge swathes of<br />

media <strong>cover</strong>age. Meanwhile for AEG (the arena’s<br />

rights holders), the deal represents steady<br />

income, support via the Staples retail chain<br />

and, tellingly, a brand which is now inextricably<br />

associated with the golden era of LA Lakers.<br />

This last point harks back to something<br />

Watkins said earlier, with regard to European<br />

stadia. While the sponsoring brand may want<br />

to become deeply embedded in the fabric of<br />

a stadium, does that necessarily serve the<br />

long-term interests of the rights holder What<br />

happens if the venue owner wants to replace the<br />

incumbent - only to find that new partners are<br />

concerned about the background noise created<br />

by its predecessor. Who, after all, would want<br />

to try and rename Bolton Wanderers’ Reebok<br />

Stadium Or the Staples Center<br />

A new direction<br />

Just how significant an issue this is should<br />

become clearer once Etihad Airways beds in as<br />

naming rights replacement at the AFL Telstra<br />

Dome. Venue boss Ian Collins expects the new<br />

name “to become part of Melbourne’s sporting<br />

vernacular” quite quickly. But brands should<br />

watch and learn.<br />

Conflict with previous sponsors is not the only<br />

consideration for naming rights partners. There’s<br />

also the issue of how to juxtapose the needs of the<br />

naming rights partner with those of other existing<br />

partners. This is true in motorsports - where the<br />

diverse array of team, driver and event sponsors<br />

may be one explanation for the lack of circuit<br />

naming rights deals.<br />

It’s also an issue in soccer, where big clubs<br />

like Manchester United have shirts sponsors,<br />

official suppliers and, increasingly, partners with<br />

sets of geographic rights. Partly, the answer is<br />

to have clearly defined contracts, says Watkins.<br />

But this is another example of a situation where<br />

an effective working relationship will also help:<br />

“When you are looking at a 10-20 year contract,<br />

it’s inevitable the venue rights holders will find<br />

new ways to commercialise its facility,” says<br />

Watkins. “That’s reasonable - but it has to be<br />

done in a way that doesn’t impact adversely on<br />

the naming rights partner.”<br />

Still, for all the potential pitfalls, the general<br />

view is that naming rights is set for another<br />

surge. Moore sees potential in France and Italy,<br />

where stadia investment is needed to prepare<br />

both countries for hosting big events.<br />

The same would be true for England if it<br />

hosts the 2<strong>01</strong>8 World Cup. Further afield, there<br />

are opportunities in developing markets which<br />

have hosted, or will soon host, major events.<br />

China’s National Stadium (The Bird’s Nest)<br />

and South Africa’s Cape Town Stadium are<br />

just two of the venues looking for big brand<br />

involvement. In the case of the former, there<br />

have been reports in the Chinese media that the<br />

venue management is looking for as many as<br />

14 partners in the form of naming rights deals,<br />

partnership sponsors and suppliers.<br />

With the Chinese economy already bouncing<br />

back from the downturn, perhaps this is where<br />

we’ll start to see the first shoots of re<strong>cover</strong>y in<br />

the naming rights marketplace.<br />

Barry Wilner on a new naming rights<br />

trend emerging in the US.<br />

MORE THAN HALF A YEAR before the new<br />

$1.3 billion stadium opens in the New Jersey<br />

Meadowlands, the future home of the NFL’s<br />

Giants and Jets has four cornerstone sponsors<br />

in place. That was achieved even before naming<br />

rights were sold.<br />

Well, not precisely, because in 2008, those<br />

naming rights were about to be purchased by<br />

Allianz for approximately $30 million annually<br />

before the teams broke off negotiations.<br />

So while the Giants and Jets have proceeded<br />

slowly and carefully in that area, they had<br />

no delays in lining up the four cornerstone<br />

partners: Verizon, Pepsico, Bud and MetLife.<br />

Each of those companies will pay more<br />

than $6 million a year to have branding inside<br />

the building and on the stadium’s facade, plus<br />

signage in the concourses.<br />

“In what is a challenging time economically,<br />

the fact that we have attracted four major<br />

corporate sponsors for the stadium is<br />

significant,” said Mark Lamping, president and<br />

chief executive officer of New Meadowlands<br />

Stadium Co.<br />

In addition, the Giants previously announced<br />

a 15-year agreement with Timex for the naming<br />

rights to their training facility and corporate<br />

headquarters located within walking distance<br />

of the new stadium. That deal is worth about $3<br />

million annually.<br />

Does all of this mean that smaller<br />

partnerships with sponsors will become<br />

the norm for US stadium deals The Dallas<br />

Cowboys opened their billion-dollar palace<br />

in Arlington, Texas, without awarding naming<br />

rights, but with a collection of sponsorships on<br />

a lesser scale.<br />

“The Jets and the Giants will be playing in<br />

this facility for a long, long time,” Lamping said.<br />

“You can’t force the economics of the deal in<br />

year one or year two simply because the market<br />

may not be where it needs to be.”<br />

When Yankee Stadium opened in the spring,<br />

baseball’s most famous franchise kept the<br />

iconic name and opted instead for agreements<br />

similar to the cornerstone partnerships in the<br />

Meadowlands. The new Yankee Stadium has<br />

deals with Audi, Budweiser, Delta, H&R Block,<br />

Jim Beam, Ketel One and Mohegan Sun for<br />

such things as clubs and suites.<br />

One NFL team owner whose stadium does<br />

not have a naming rights deal, believes a trend<br />

is being set. Speaking anonymously because<br />

“I don’t want to damage any opportunities with<br />

anyone,” he added: “In this economy, there<br />

are so many large corporations - Fortune<br />

500 companies - who simply can’t make the<br />

investment or are fearful of the repercussions<br />

publicity-wise if they sink millions of dollars into<br />

naming rights.<br />

“Plus, you won’t see any automakers or<br />

airlines doing it the way they once did. Instead,<br />

they are willing to spend less for a smaller<br />

presence, perhaps with the idea that later<br />

on, when the economy is stronger and their<br />

businesses are on more solid ground, they can<br />

move up to full naming rights.”<br />

32 SportBusiness <strong>International</strong> • No. 152 • 12.09


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FACILITIES<br />

SHAPING UP TO THE<br />

21 ST<br />

CENTURY<br />

From the Middle East to Middle America the<br />

sharpest minds in design and engineering are<br />

creating a new generation of facilities which<br />

will shape the way sport is viewed and played<br />

for decades to come. In this feature<br />

Andy Stevens highlights a selection of stadia,<br />

arena and training facilities around the world<br />

which push the boundaries of innovation,<br />

creativity and engineering excellence to deliver<br />

the ultimate sporting experience while meeting<br />

critical cost and environmental criteria.<br />

Venue: Soccer City Stadium<br />

Location: Johannesburg, South Africa<br />

Open: 11 June 2<strong>01</strong>0<br />

Type: Football stadium<br />

Use: <strong>FIFA</strong> World Cup South Africa 2<strong>01</strong>0<br />

Capacity: 94,700<br />

Owner and Operator: City of<br />

Johannesburg<br />

Architect: Boogertman and Partners<br />

Architects<br />

Cost: ZAR1.5 billion<br />

EIGHT OF THE 64 matches of <strong>FIFA</strong> World Cup<br />

South Africa 2<strong>01</strong>0, including the opening match<br />

and final, will be hosted by Johannesburg’s<br />

Soccer City Stadium. The venue is being rebuilt<br />

in a project that has required the demolition<br />

of three-quarters of the original First National<br />

Bank Stadium that opened in 1989. An<br />

extension to the seating bowl will increase<br />

capacity from 80,000 to 94,700, while 99<br />

additional luxury suites will increase hospitality<br />

inventory to 184 units. The construction<br />

programme has included the installation of a<br />

new roof and facade, floodlighting and playing<br />

surface. The design was inspired by a calabash,<br />

or melting pot of African cultures, which was<br />

selected as being the most recognisable and<br />

distinctive object to represent the continent’s<br />

identity. The facade is comprised of panels<br />

in eight colours and incorporates ten vertical<br />

slots which are geographically aligned with<br />

the nine other host venues and the Berlin<br />

Olympiastadion, which hosted the final<br />

in 2006. The venue was not used for <strong>FIFA</strong><br />

Confederations Cup South Africa 2009, but<br />

<strong>FIFA</strong> and the local organising committee are<br />

confident that it will be ready for the opening<br />

ceremony of the World Cup.<br />

Venue: Donbass Arena<br />

Location: Donetsk, Ukraine<br />

Open: 26 September 2009<br />

Type: Football stadium<br />

Use: FC Shakhtar Donetsk and UEFA<br />

Euro 2<strong>01</strong>2 Poland Ukraine<br />

Capacity: 51,504<br />

Owner and Operator: Stadium Shakhtar<br />

Limited<br />

Architect: Arup Sport<br />

Cost: USD$400 million (EURÐ281<br />

million, GBP£248 million)<br />

THE GLAZED FACADE of the Donbass Arena<br />

has led to it being referred to locally as the<br />

Jewel in the Park. The 24,000 square metre<br />

curtain wall, oval footprint and sloping roof<br />

complement the landscape of Donetsk’s 25<br />

hectare Leninsky Komosol Park, which itself<br />

has received a USD$30million refurbishment.<br />

Included in the 51,504 capacity is seating<br />

for up to 830 guests who can be hosted in 45<br />

luxury suites, while 83,823 square metres of<br />

accommodation offers visitors access to four<br />

bars, three restaurants, two cafes, a lounge<br />

bar, 53 concession points, as well as a FC<br />

Shakhtar Donetsk retail outlet, museum and<br />

fitness centre. The bowl includes two video<br />

boards of 92sqm each, while the playing<br />

field will be bordered by a 267 metre digital<br />

perimeter board system.<br />

The idea for the stadium was first<br />

conceived in 1999, although the appointment<br />

of architects Arup Sport was not made for<br />

another four years. Construction then started<br />

in 2006 and was completed in less than 36<br />

months. It will be a host venue for UEFA Euro<br />

2<strong>01</strong>2 Poland Ukraine and was designed to<br />

adhere to UEFA’s standards for staging the<br />

Champions League and Europa League finals.<br />

34 SportBusiness <strong>International</strong> • No. 152 • 12.09


FACILITIES<br />

Venue: Yas Marina Circuit<br />

Location: Abu Dhabi, United Arab Emirates<br />

Open: 30 October 2009<br />

Type: Motorsports circuit<br />

Use: Formula One Abu Dhabi Grand Prix<br />

Capacity: 50,000<br />

Owner and Operator: Abu Dhabi<br />

Motorsports Management<br />

Architect: Hermann Tilke<br />

Cost: Undisclosed<br />

IN 2009, Formula One welcomed a new event<br />

and a new destination to its racing calendar<br />

when the Abu Dhabi Grand Prix and the 5.5<br />

kilometre Yas Marina Circuit were inaugurated<br />

on 30 October. With a capacity of 50,000, the<br />

venue includes a 7,000 seat grandstand and is<br />

believed to be the only motorsports venue in the<br />

world where all seats are <strong>cover</strong>ed.<br />

The Pit Building has 40 garages for teams and<br />

officials, as well as hospitality facilities, while<br />

the Driving School Building, Drag Racing Centre,<br />

Karting Centre and Business Park will serve<br />

the motorsports community. The circuit can be<br />

divided into two tracks of 3.1 kilometres and 2.4<br />

kilometres which can operate simultaneously<br />

for different motorsports events, such as drag<br />

racing and karting. Abu Dhabi Motorsports<br />

Management, which is a joint venture between<br />

the Abu Dhabi Government and the property<br />

developer ALDAR Properties PJSC, was<br />

incorporated in 2008 to oversee the construction<br />

and operations management of the circuit. The<br />

cost of the facility has not been disclosed but is<br />

Venue: Forsyth Barr Stadium at <strong>University</strong><br />

Plaza<br />

Location: Dunedin, New Zealand<br />

Open: August 2<strong>01</strong>1<br />

Type: Rugby stadium<br />

Use: Rugby World Cup 2<strong>01</strong>1 New Zealand<br />

and Highlanders Rugby<br />

Capacity: 30,000<br />

Owner and Operator: Carisbrook Stadium<br />

Trust<br />

Architect: Warren and Mahoney<br />

Cost: NZD$198.3 million<br />

CONFIGURED TO A RECTANGULAR<br />

playing field, the Forsyth Barr Stadium at<br />

<strong>University</strong> Plaza will be the home venue of<br />

the Highlanders Super 14 franchise and, in<br />

addition to rugby union, has the capacity to<br />

stage rugby league, soccer, American football<br />

and entertainment events. It will be the first<br />

stadium with a natural turf playing surface to<br />

be <strong>cover</strong>ed by a permanent roof and utilises<br />

20,558 square metres of transparent ethylene<br />

tetrafluoroethylene (ETFE) panels. Indeed,<br />

part of a $40 billion 162 hectare project which<br />

also houses The Yas Hotel - a 500 room, fivestar<br />

complex - plus the Yas Marina and the Yas<br />

Yacht Club.<br />

the three largest ETFE clad buildings in the<br />

world are all sports venues, with only Beijing’s<br />

National Aquatics Centre and Munich’s Allianz<br />

Arena exceeding the Forsyth Barr Stadium.<br />

Three matches for Rugby World Cup 2<strong>01</strong>1<br />

New Zealand have been awarded to Dunedin’s<br />

existing Carisbrook Stadium by the organising<br />

committee, Rugby New Zealand 2<strong>01</strong>1 (RNZ<br />

2<strong>01</strong>1), and a decision will be made in 2<strong>01</strong>0 if<br />

these are to be transferred to the new facility.<br />

Construction began in May 2009 with completion<br />

due by August 2<strong>01</strong>1.<br />

25,000 permanent seats will be installed in<br />

the north, east and south stands and the west<br />

stand will have temporary seating for 5,000.<br />

This can even be further expanded if necessary<br />

to 35,000 with a mixture of both seating and<br />

standing accommodation.<br />

Dunedin City Council is contributing $98.5<br />

million to a private public partnership that is<br />

formed of an alliance of national, regional and<br />

city government, the <strong>University</strong> of Otago and<br />

other stakeholders. Initially marketed as the<br />

Otago Stadium, the Carisbrook Stadium Trust<br />

announced in January 2009 that the financial<br />

services provider Forsyth Barr would be the<br />

venue’s naming rights partner.<br />

Venue: Red Bull Arena<br />

Location: Harrison, New Jersey, USA<br />

Open: 17 March 2<strong>01</strong>0<br />

Type: Football stadium<br />

Use: MLS New York Red Bulls<br />

Capacity: 25,189<br />

Owner and Operator: Red Bull Park<br />

Architect: Rossetti<br />

Cost: USD$200 million<br />

THE ORIGINAL BLUEPRINT for what is to be<br />

the eighth soccer-specific stadium in MLS<br />

was completely redesigned when the owner’s<br />

of the Red Bull Energy Drink brand acquired<br />

the franchise and venue in 2006. The Red Bull<br />

Arena will now be the first European-style<br />

MLS stadium with a fully <strong>cover</strong>ed two-tier 360<br />

degree bowl.<br />

The capacity of the intimate venue<br />

will be 25,189 and includes 30 luxury<br />

suites and 1,116 club seats. All hospitality<br />

accommodation will be located to the west of<br />

the bowl and patrons will have access to their<br />

own private club. Visitors will be served via<br />

three clubs, 65 concession stands, up to 20<br />

portable vendor carts and two retail outlets.<br />

There will be two video boards - one at each<br />

end of the stadium - plus a ribbon board and<br />

over 300 television panels<br />

The facility is owned and operated by Red<br />

Bull Park and the 12 acre site is owned by the<br />

Town of Harrison.<br />

Venue: Singapore Turf Club Riding<br />

Centre<br />

Location: Singapore<br />

Open: 16 November 2009<br />

Type: Equestrian centre<br />

Use: Singapore 2<strong>01</strong>0 Youth Olympic<br />

Games<br />

Capacity: 1,500<br />

Owner and Operator: Singapore Turf<br />

Club<br />

Architect: Undisclosed<br />

Cost: Undisclosed<br />

OFFICIALLY OPENED in November 2009,<br />

the Singapore Turf Club Riding Centre is a<br />

community sports project managed by the<br />

Singapore Turf Club and its parent body, the<br />

Government of Singapore’s Tote Board. The<br />

facility is located on a 3 hectare site next to<br />

Singapore Racecourse and has an extensive<br />

grass roots programme and is to be the<br />

equestrian sports venue for the Singapore<br />

2<strong>01</strong>0 Youth Olympic Games. Its specifications<br />

include a 5,000 square metre open arena, 5,000<br />

square metre sheltered arena, viewing gallery<br />

for 1,500 spectators with a café, retail outlet,<br />

administration building and classrooms.<br />

SportBusiness <strong>International</strong> • No.152 • 12.09 35


FACILITIES<br />

Venue: Gold Coast Stadium<br />

Location: Carrara, Queensland, Australia<br />

Open: 2<strong>01</strong>1<br />

Type: Australian Rules football stadium<br />

Use: AFL Gold Coast<br />

Capacity: 25,000<br />

Owner and Operator: Gold Coast City<br />

Council<br />

Architect: Populous<br />

Cost: AUD$126 million<br />

Venue: Vancouver Olympic/Paralympic<br />

Centre<br />

Location: Vancouver, British Columbia,<br />

Canada<br />

Open: 19 February 2009<br />

Type: Curling arena<br />

Use: Vancouver 2<strong>01</strong>0 Winter Olympic Games<br />

Capacity: 6,000<br />

Owner and Operator: Vancouver Board of<br />

Parks and Recreation<br />

Architect: Hughes Condon Marler<br />

Architects<br />

Cost: CAD$87.85 million<br />

THE VANCOUVER Olympic/Paralympic Centre<br />

will host the curling events for the 2<strong>01</strong>0<br />

Games and will also be a stage for the Cultural<br />

Olympiad with the installation of exhibits as<br />

part of the Vancouver 2<strong>01</strong>0 Venues Aboriginal<br />

Arts Program. Construction of the 10,000<br />

square metre (108,000 square feet) arena<br />

began in March 2007 and opened within two<br />

years. The Vancouver Organizing Committee<br />

for the 2<strong>01</strong>0 Olympic and Paralympic Winter<br />

Games (VANOC) is contributing $40.25 million<br />

to the capital budget and the City of Vancouver<br />

$47.60 million.<br />

In legacy mode, the facility will be converted<br />

by 2<strong>01</strong>1 into a multi-use sports and recreation<br />

complex featuring an ice pad, curling club with<br />

up to eight sheets of curling ice, gymnasium,<br />

field house, community centre, pre-school<br />

facility, library and offices. An adjacent 6,200<br />

square metre (66,500 square feet) aquatics<br />

centre with indoor and outdoor pools will be<br />

funded solely by the City and the Board of Parks<br />

and Recreation.<br />

CARRARA STADIUM is to be rebuilt to<br />

host the Australian Football League (AFL)<br />

Gold Coast expansion franchise from 2<strong>01</strong>1.<br />

The 25,000 capacity venue will include<br />

2,000 hospitality seats and 1,500 standing<br />

places, while the oval playing surface will<br />

also be able to accommodate an ICCcompliant<br />

cricket field; an IAAF standard<br />

athletics track, and it will accommodate the<br />

requirements of Australia’s bid to host the<br />

<strong>FIFA</strong> World Cup in 2<strong>01</strong>8 or 2022.<br />

The undulating wave form of the roof reflects<br />

the nearby seascape and landscape, with the<br />

stadium being designed to be a contemporary<br />

version of “footy in the park”. Food and<br />

beverage services will be located in the park<br />

rather than inside the stadium, and will be<br />

complemented by outdoor picnic and barbecue<br />

areas. Hospitality facilities will also attempt to<br />

“bring the living room to the park” with openair<br />

luxury suites and barbecue terraces that<br />

offer views of the field of play and the park.<br />

Funding from the federal, state and city<br />

governments was confirmed in May 2009,<br />

while the AFL will be investing in both the<br />

stadium and community projects.<br />

Venue: Consol Energy Center<br />

Location: Pittsburgh, Pennsylvania, USA<br />

Open: 1 August 2<strong>01</strong>0<br />

Type: Ice hockey and multi-use arena<br />

Use: NHL Pittsburgh Penguins<br />

Capacity: 18,087<br />

Owner: Sports & Exhibition Authority of<br />

Pittsburgh and Allegheny County<br />

Operator: Pittsburgh Arena Operating<br />

and SMG<br />

Architect: Populous<br />

Cost: USD$321 million<br />

THE NHL PITTSBURGH PENGUINS are currently<br />

based at the 16,940 capacity Mellon Arena which,<br />

having opened in 1961, is now the oldest venue in<br />

the league. Ground was broken on the new Consol<br />

Energy Centre at the 8 acre downtown construction<br />

site in August 2008 and is expected to open just<br />

two years later for the start of the 2<strong>01</strong>0/11 season.<br />

The facility will have 18,087 seats including<br />

62 luxury suites, four party suites, 2,000 club<br />

seats and 236 loge box seats. Although this does<br />

not represent a significant increase in seating<br />

capacity, the size and quality of accommodation<br />

and ancillary services has been enhanced, with<br />

the 6 level building offering 720,000 square feet<br />

of space compared to 420,000 at the Mellon<br />

Arena. It will boast a restaurant, banquet facility,<br />

two clubs, five retail locations and two food<br />

courts - one of which affords views of the event<br />

floor and the other overlooking the downtown<br />

Pittsburgh skyline. General admission spectators<br />

will be catered for by the provision of one<br />

concession point of sale for every 158 spectators,<br />

while an enclosed elevated walkway will connect<br />

to the adjacent parking garages.<br />

The arena has been designed specifically<br />

for the NHL, but the 29,470 square foot floor<br />

will have the flexibility to be configured to host<br />

other sports and entertainment events, including<br />

basketball, arena football, indoor soccer, tennis<br />

and volleyball.<br />

In April 2009, the Penguins and the Sports &<br />

Exhibition Authority announced their intention<br />

for the facility to be the first NHL arena to attain<br />

the Leadership in Energy and Environmental<br />

Design (LEED) Gold Certification, which is<br />

awarded for the design, construction and<br />

operation of green buildings.<br />

36 SportBusiness <strong>International</strong> • No. 152 • 12.09


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SPORTS EVENT MANAGEMENT<br />

AWARDS 2009<br />

Awards presenter Charlotte Jackson - Action Images<br />

THE GOLD STANDARD<br />

The third SportBusiness Sports Event Management Awards were presented at a glittering Gala Dinner in<br />

London which attracted key figures from all sectors of the international sports community to celebrate<br />

excellence among the individuals and organisations that make sports events happen.<br />

THE INGENUITY, creativity and management<br />

expertise of the international sports events<br />

community was celebrated at the third<br />

SportBusiness Sports Event Management<br />

Awards which saw 29 organisations and<br />

individuals recognised for their achievements<br />

and contributions during the past 12 months.<br />

The Awards were presented during a Black<br />

Tie Gala Dinner at Lord’s Cricket Ground in<br />

London, attended by many senior figures from<br />

the sports events sector.<br />

The evening proved a triumph for Olympic<br />

Games director Gilbert Felli, the City of<br />

Melbourne, leading agencies Fast Track and<br />

Nova <strong>International</strong> and many other companies<br />

recognised in 11 categories.<br />

Nigel Rushman, chairman of event<br />

organisers Rushmans praised the high quality of<br />

the entries.<br />

“This may not have been a year in which we<br />

had a mega-event such as a <strong>FIFA</strong> World Cup or<br />

Olympic Games but it was still a fascinating year<br />

of sport which demonstrated the ability of the<br />

sports events industry to continue to raise the<br />

bar of the planning and staging of events of all<br />

size,” he said.<br />

“Our congratulation to all of the winners.<br />

They thoroughly deserve their success. But our<br />

thanks also go to those who entered but did not<br />

make the cut. They will have another chance in<br />

12 months time.”<br />

Gilbert Felli, who won the Rushmans Award<br />

for Outstanding Contribution to Sports Events<br />

for his work with the <strong>International</strong> Olympic<br />

Committee, was not able to be at the ceremony<br />

but said, “It is a great honour for me to receive<br />

the Rushmans Outstanding Contribution to<br />

Sports Event Management award and I’d like to<br />

thank Rushmans and Sport Business Group for<br />

this accolade.<br />

“It is very gratifying to have your work<br />

recognised in this way and little did I think<br />

when I first started out as a young volunteer<br />

in event management almost 50 years ago,<br />

that one day I would end-up looking after the<br />

organisation of the Olympic Games.<br />

“It just shows where volunteering in sports<br />

events can take you and I hope that it may<br />

inspire a few young volunteers out there to<br />

keep giving their time and energy in the service<br />

of sports. Of course, organising the world’s<br />

foremost sporting event - the Olympic Games<br />

- is undoubtedly a team effort, so I’d also like<br />

to dedicate this award to all of the people who<br />

have helped to stage inspirational and excellent<br />

Games over the years. “It is their work and<br />

dedication that has allowed the Games to<br />

flourish and for the Olympic values to continue<br />

to be appreciated the world over.<br />

“I just hope that through my work, I have<br />

been able to contribute to keeping the Games<br />

and sport where they deserve to be, on the gold<br />

medal step of the podium.”<br />

The new Award for Brand Presentation<br />

was won by MasterCard Europe for the 2009<br />

Champions League Final. MasterCard Europe<br />

vice president and head of sponsorship, Paul<br />

Meulendijk was delighted. “Such a prestigious<br />

industry award recognises our people and the<br />

integrated approach we’re taking in activating<br />

our sponsorship properties while helping<br />

the consumers to further benefit from our<br />

involvement,” he said.<br />

“Sponsorships represent a critical component<br />

of MasterCard’s global marketing approach.<br />

It enables us to further deliver shareholder<br />

value by creating exclusive business-building<br />

opportunities for our customer financial<br />

institutions and merchants, while also<br />

offering Priceless Experiences to our<br />

MasterCard cardholders.”<br />

38 SportBusiness <strong>International</strong> • No. 152 • 12.09


SPORTS EVENT MANAGEMENT<br />

AWARDS 2009<br />

The 2009 SportBusiness Sports Event Management Awards were a celebration<br />

of all that’s best in a diverse, highly professional and ultimately fundamental<br />

sector of the global sports business – and a chance for guests to let their hair<br />

down at a Black Tie dinner at Lords Cricket Ground in London.<br />

“It was a hugely enjoyable evening and a fantastic opportunity to<br />

meet and appreciate the work of the professionals who create and<br />

manage the events on which the business of sport is built.”<br />

Phil Savage, Publishing Director of SportBusiness Group<br />

Action Images<br />

SportBusiness <strong>International</strong> • No.152 • 12.09 39


SPORTS EVENT MANAGEMENT<br />

AWARDS 2009<br />

SPORTBUSINESS SPORTS CITY AWARD<br />

Gold: Victorian Major Events Company for the city of Melbourne<br />

Silver: Senate Department for the Interior and Sport for Berlin<br />

Bronze: Qatar Olympic Committee for the city of Doha<br />

MELBOURNE’S reputation as a<br />

world-class city is well-recognised<br />

and well-deserved. Few cities<br />

approach the business of attracting<br />

and then delivering top quality<br />

domestic and international events<br />

with the professionalism and<br />

enthusiasm which the team at the<br />

Victorian Major Events Company<br />

demonstrates so consistently.<br />

And according to the winners, the<br />

true measure of a city’s worth - in<br />

sporting terms - is its passion for the<br />

major events it hosts.<br />

Melbourne, they say, is a city<br />

that lives and breathes sport. One<br />

of the key requirements of the<br />

SportBusiness Sports City Awards<br />

was to demonstrate the role played<br />

by local government, local business<br />

and the community in making<br />

sport happen. Over more than a<br />

century, political leaders of the<br />

day have demonstrated a strong<br />

commitment to major sporting events<br />

in Melbourne through ongoing,<br />

significant investment in they city’s<br />

sporting infrastructure.<br />

Melbourne has been staging<br />

major events, including and Olympic<br />

Games for many years but the key, it<br />

appears, is continually planning for<br />

the future.<br />

In the last 12 months Melbourne’s<br />

sports precinct, on the doorstep of<br />

the city centre, has welcomed a new<br />

member of the family. Joining the<br />

iconic Melbourne Cricket Ground,<br />

Rod Laver Arena, Hisense Arena,<br />

and Olympic Park is the Melbourne<br />

Rectangular Stadium which will<br />

provide the city with its first purposebuilt,<br />

rectangular pitch stadium with<br />

a world-class playing surface.<br />

In a national and regional<br />

context, the new stadium ramps up<br />

Melbourne’s competitive position<br />

as host city of choice for a range of<br />

different sporting codes, and offers<br />

event owners a new level in quality<br />

and amenity.<br />

In January, the Victorian government<br />

announced plans for a multi-million<br />

dollar redevelopment of Melbourne<br />

Park, to ensure that the Australian<br />

Open maintains its position as one of<br />

the best-loved and most successful<br />

tennis events on the calendar.<br />

The redevelopment will improve<br />

the comfort of patrons, players and<br />

media with more open space and<br />

shade, increased seating capacity,<br />

better public transport access and<br />

enhanced facilities including an<br />

international broadcast centre.<br />

In the last twelve months more<br />

than five million people have attended<br />

major sporting events in Melbourne<br />

- with a population approaching 3.9<br />

million people, this is an impressive<br />

indicator of the importance of sports<br />

events to the city.<br />

BRAND PRESENTATION<br />

GOLD: MasterCard Europe for the UEFA Champions League Final<br />

JOINT SILVER: McLaren Marketing Limited for the Formula One Grand Prix Season<br />

JOINT SILVER: The Look Company for the Sony Ericsson WTA Tour Championships<br />

THE RELATIONSHIP<br />

between events and the<br />

brands which become<br />

their partners is, at best,<br />

symbiotic. But too often<br />

brands are thought to<br />

fail to take advantages of<br />

the opportunities at their<br />

disposal, relying on the<br />

tried and tested value of<br />

perimeter boards and<br />

hospitality rather than<br />

embracing the event<br />

and applying intensive<br />

creative overlay to produce<br />

outstanding results.<br />

In the 2009 SportBusiness<br />

Sports Event Management<br />

Awards, Mastercard<br />

Europe demonstrated a<br />

commitment to creativity<br />

and a willingness to build<br />

promotions around the UEFA<br />

Champions League final<br />

which delighted the judges.<br />

The UEFA Champions<br />

League is a major element<br />

of Mastercard’s football<br />

sponsorship portfolio and<br />

the 2009 Final in Rome<br />

was MasterCard’s most<br />

successful ever event<br />

programme.<br />

The game in the<br />

Eternal City captured the<br />

imagination of the world,<br />

as Spain’s Barcelona<br />

overcame an early onslaught<br />

to beat English champions<br />

Manchester United.<br />

With a record 97 million<br />

worldwide TV viewership for<br />

this year’s UEFA Champions<br />

League Final, increased<br />

brand awareness and<br />

affiliation for MasterCard<br />

was achieved through<br />

broadcast sponsorship<br />

packages, perimeter boards<br />

and on-site branding.<br />

Mastercard Europe was<br />

the only sponsor to conduct<br />

a venue branding exercise.<br />

The branding programme<br />

included specific Romethemed<br />

materials and<br />

a replica of the Trevi<br />

Fountain in the customer<br />

hospitality suite.<br />

In a five-day festival<br />

next to the world-famous<br />

Colosseum, MasterCard<br />

ran a joint promotion with<br />

adidas that provided all<br />

fans and visitors with free<br />

UEFA merchandise for<br />

every purchase made with<br />

a MasterCard.<br />

The promotion was<br />

communicated through<br />

over 10,000 flyers, posters,<br />

giant screens, as well as<br />

a number of MasterCard<br />

hostesses. Through the<br />

exclusive hospitality area at<br />

the Champions League final,<br />

MasterCard showcased its<br />

newest payment, PayPass, to<br />

over 600 key customers.<br />

Guests were provided<br />

with specially designed<br />

PayPass watches and cards<br />

that allowed guests to use<br />

their contactless payment<br />

Charlotte Jackson and MasterCard’s Paul Meulendijk with the Award - Action Images<br />

device by tapping the watch<br />

against terminals that<br />

were positioned in front of<br />

a reconstruction of Rome’s<br />

iconic Trevi Fountain. Each<br />

tap represented the idea<br />

of throwing a coin into the<br />

fountain to make a wish<br />

and for every tap made,<br />

MasterCard donated €1 to<br />

charity. Overall, MasterCard<br />

Europe’s sponsorship<br />

of the 2009 Champions<br />

League Final in Rome was<br />

judged an an outstanding<br />

success. The brand says its<br />

programme helped deliver<br />

unique value to consumers<br />

and customers, and drive<br />

key business outcomes<br />

locally in Italy, and in key<br />

global markets. Key to this<br />

was the stadium branding<br />

activity through walk-way<br />

and Fan Zones branding,<br />

which created the perception<br />

that MasterCard was the<br />

dominant Champions<br />

League final sponsor for the<br />

72,000 fans who attended.<br />

40 SportBusiness <strong>International</strong> • No. 152 • 12.09


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SPORTS EVENT MANAGEMENT<br />

AWARDS 2009<br />

MASS PARTICIPATION EVENTS<br />

Gold: Nova <strong>International</strong> for the BUPA Great Manchester Run<br />

Silver: IMG Mass Participation Sports for the Mazda London Triathlon<br />

Bronze: Diamond Sports Events for the Bournemouth Sevens Festival<br />

MASS PARTICIPATION EVENTS was<br />

the second category making its debut<br />

at the 2009 Awards.<br />

From cycling to half marathons and<br />

Iron Man events, mass participation<br />

sports continue to gain tremendous<br />

popularity world-wide.<br />

The Award recognised the unique<br />

event management pressures<br />

required to deal with athlete<br />

management, overlay requirements,<br />

security, transport, medical services<br />

and catering in an environment where<br />

thousands of competitors as well as<br />

spectators are involved.<br />

Gold went to Brendan Foster’s<br />

Nova <strong>International</strong> agency which has<br />

worked with the City of Manchester to<br />

turn the Great Manchester Run and its<br />

associated activities into a world-class<br />

event. It attracts thousands of visitors<br />

to the region from every corner of<br />

the UK and overseas (80,000 visitors,<br />

including participants, in 2008). This<br />

programme has also been a major<br />

contribution to the Councils’ physical<br />

activity agenda.<br />

The project team work for twelve<br />

months to deliver this event with<br />

support from Manchester City Council<br />

and thousands of volunteers.<br />

The event comprises an entire<br />

weekend of activities. It features<br />

the UK’s biggest 10km run and this<br />

year, it culminated in the BUPA Great<br />

City Games, a series of 150m sprint<br />

events featuring the phenomenal<br />

Usain Bolt and a host of other world<br />

class athletes. They raced on an IAAF<br />

and UKA approved running track setup<br />

in the city centre on Deansgate.<br />

The event was free to spectators.<br />

Judges agreed that Nova, together<br />

with Manchester City Council, had<br />

delivered a uniquely innovative events<br />

programme, showcased to the world.<br />

The event plays an integral part in the<br />

city’s growing reputation as a sporting<br />

capital whilst continuing to address<br />

social issues on a more local level.<br />

Operationally, the undertaking<br />

of the road closures and traffic<br />

management to facilitate the<br />

weekend’s festival of running was on<br />

a unparalleled scale.<br />

While the involement of Usain<br />

Bolt and a host of other stars gave<br />

the 2009 event a significant level of<br />

additional visibility, judges remained<br />

Heat on the streets of Manchester - Getty Images Sport<br />

focused on the event from every<br />

angle. They praised not only the<br />

precise planning and execution<br />

required to turn a city centre into a<br />

sports venue but also the specific<br />

examples of innovation demonstrated<br />

in creating the 150 metre track to the<br />

most exacting standards.<br />

“This was a particularly difficult<br />

category for the judges to determine,”<br />

said Nigel Rushman, co-chair of the<br />

panel. “The standard was uniformly<br />

high which reflect well on all involved.”<br />

EVENT LOOK<br />

GOLD: Fast Track for the UK School Games<br />

SILVER: ICC World Twenty20 Team for the ICC World Twenty20<br />

BRONZE: Designwerk for the Victoria Cup<br />

FAST TRACK took the Gold Award in<br />

the Event Look category for its work<br />

on the fourth edition of the Youth<br />

Sports Trust’s UK School Games,<br />

multi-sport event for elite level<br />

youngsters which aims to deliver the<br />

experience and spirit of an Olympic or<br />

Paralympic Games for young athletes<br />

who may well one day represent their<br />

country on the big stage.<br />

<strong>International</strong> agency Fast Track<br />

was appointed to plan, manage and<br />

deliver the event which, this year, saw<br />

track cycling added to the established<br />

four-day event programme of<br />

athletics, badminton, fencing,<br />

gymnastics, hockey, judo, swimming,<br />

table tennis and volleyball.<br />

Among Fast Track’s challenges was<br />

to create a complete brand identity<br />

which not only provided a strong event<br />

look but which reflects what the event<br />

stands for.<br />

This includes not only providing<br />

a showcase for young talent but<br />

bringing about a ‘step change in the<br />

content, structure and presentation<br />

of competitive sporting opportunities<br />

for young people.’ Fast Track created<br />

the UK School Games (UKSG)<br />

identity featuring the running<br />

figure - a friendly, iconic, bold,<br />

distinguishable, simple and friendly<br />

figure, recognisable to children of<br />

school age.<br />

The icon is uncomplicated in<br />

its construction, making it easily<br />

transferable in its use from marketing<br />

to merchandise to signage. In being<br />

fluid and indicating movement, it<br />

works in its endorsement of active<br />

participation sport.<br />

Supporting the UKSG logo, is<br />

a series of sport-specific icons,<br />

adapted from the running man.<br />

They all dictate specific sports<br />

featured under the UKSG umbrella.<br />

With the use of their own definitive<br />

colour, they act as a cost effective<br />

and adaptable tool for depicting<br />

specific sports with use in marketing,<br />

collateral, venues and stadiums.<br />

Influenced by the running figure,<br />

are a series of circle compositions<br />

and supporting swoosh graphics,<br />

used to create a recognisable<br />

Fast Track’s Michelle Diete receives the Award from Paul Nelson of SportCentric - Action Images<br />

endorsement for any UKSG<br />

communication or branding. All<br />

marketing and communications, from<br />

in-the-hand to on-site, follow this<br />

clean and simplistic route.<br />

The aim is to give clarity with clear<br />

honest dialogue with simple straight<br />

forward typography, keeping the<br />

message and tone of language direct<br />

and informative.<br />

Steve Grainger, chief executive of<br />

the Youth Sports Trust was clearly<br />

delighted with the results. “The new<br />

look reflected the growing stature<br />

of the event and we felt it to be<br />

an important development for the<br />

athlete enjoyment and spectator<br />

experience. As with the Olympic and<br />

Paralympic Games, the look and feel<br />

of the event is integral to its success<br />

and I believe that the strides that<br />

were made fully demonstrated the<br />

professionalism of the UK School<br />

Games,” he said.<br />

42 SportBusiness <strong>International</strong> • No. 152 • 12.09


ISEMS Innovative<br />

Event Marketing 2007<br />

Ultimate Sports<br />

City 2007<br />

Ultimate Sports<br />

City 2008<br />

SportBusiness<br />

Sports City 2008<br />

SportBusiness Sports City 2009<br />

Talk to the people who know major events.<br />

Contact Brendan McClements, CEO, Victorian Major Events Company<br />

Tel +61 3 9868 4600 Email vmec@vmec.com.au www.vmec.com.au


SPORTS EVENT MANAGEMENT<br />

AWARDS 2009<br />

EVENT OVERLAY & FACILITIES<br />

GOLD: GL Events and Oasys Innovations for the <strong>FIFA</strong> Confederations Cup South Africa<br />

JOINT SILVER: Nova <strong>International</strong> Ltd for the BUPA Great City Games Manchester<br />

JOINT SILVER: NÜSSLI (Schweiz) AG for the Sony Ericsson WTA Championships<br />

THE <strong>FIFA</strong> Confederations<br />

Cup is the warm-up<br />

competition for the 2<strong>01</strong>0<br />

World Cup which will be<br />

staged in South Africa just a<br />

few months from now.<br />

The GL Events-Oasys<br />

Consortium supplied overlay -<br />

the equipment and temporary<br />

structures required to equip a<br />

venue to successfully meet the<br />

requirements of special events<br />

- at the four competition<br />

stadiums in Johannesburg,<br />

Pretoria, Rustenburg and<br />

Bloemfontein. Officials at the<br />

companies described the<br />

project as a huge challenge<br />

on a number of fronts.<br />

Significantly, it was the<br />

first time that a company was<br />

appointed as an exclusive<br />

overlay supplier on a major<br />

international football event<br />

Distance also created<br />

challenges as the South<br />

African venues are a long way<br />

from major event markets<br />

world-wide, where overlay<br />

commodities are usually<br />

stocked. Overcoming this<br />

demanded good organisational<br />

and logistic skills.<br />

With only 13 weeks<br />

between appointment of<br />

the preferred bidder and the<br />

final hand-over, time was a<br />

major factor.<br />

The project benefitted<br />

the local economy thanks to<br />

the appointment of 70 local<br />

suppliers, the hire of some<br />

500 local staff for the setting<br />

stage of the project and the<br />

purchase of rental of around<br />

two thirds of the necessary<br />

equipment. In addition,<br />

the consortium worked<br />

not only for the Organising<br />

Committee, but also for<br />

other clients such as Match<br />

Hospitality, Match Ticketing,<br />

Sponsors and Host Cities.<br />

The project involved<br />

site preparation including<br />

groundwork, the supply of<br />

27,000sqm of temporary<br />

structures; 5,000sqm of<br />

scaffolding structures;<br />

170 modular containers;<br />

100 storage containers;<br />

60 temporary toilet<br />

facilities; electrical power<br />

distribution: over 10,000m of<br />

cabling; 6,500m of cabling<br />

pathways; 1,500 distribution<br />

boxes, 8,000 plugs; four<br />

audio and simultaneous<br />

translation systems for<br />

press conference rooms<br />

34,500sqm of internal<br />

and emergency lighting<br />

22,000sqm of fire alarm<br />

systems.<br />

In addition the heating<br />

and ventilation requirements<br />

were for 100 floor standing<br />

and 15 roof top units while<br />

2.5 kilometres of internal<br />

partitioning, 26,700sqm of<br />

floor <strong>cover</strong>ing and 14,000<br />

pieces of furniture were<br />

supplied and installed.<br />

Field of play and other<br />

Action from the <strong>FIFA</strong> Confederations Cup final - Getty Images Sport<br />

equipment included 24<br />

goals, 20 team shelters,<br />

corner flags, 40 flag-hanging<br />

systems and 70 flagpoles<br />

together with the fit-out of<br />

25 TV and presenters studios<br />

50 camera platforms 600<br />

press desks and commentary<br />

positions.<br />

The entire project was<br />

delivered by a team of 50<br />

staff drawn from across<br />

Europe and Hong Kong as<br />

well as South Africa, together<br />

with 10 main sub-contractors<br />

and some 70 suppliers.<br />

Equipment was delivered<br />

from the UK, Hong Kong<br />

and France by sea freight in<br />

an operation involving 175<br />

containers - 85 from France<br />

and 90 from Hong Kong.<br />

EVENT SERVICES<br />

Gold: Creative Technology Limited for the European PGA Tour<br />

Silver: Gameday Management Group for the Super Bowl XLIII<br />

Bronze: Aesthetics Models and Events Ltd for Major Sporting Events in 2009<br />

CREATIVE TECHNOLOGY<br />

took Gold in the Sports Crowd<br />

sponsored Award for its<br />

innovative work on behalf of<br />

European Tour Productions<br />

on ‘The Race To Dubai’, the<br />

$10 million season-long<br />

competition which replaced<br />

the European Tour Order of<br />

Merit. The company’s work<br />

provides a tournamentspecific<br />

video and data feed<br />

which allows huge crowds<br />

spread around golf courses, in<br />

press centres and hospitality<br />

areas to follow and be fully<br />

engaged in the action.<br />

While tournament television<br />

has become a regular feature<br />

of major championships,<br />

every event leading up to the<br />

season-ending Dubai World<br />

Championship at Jumeirah<br />

Golf Estates in Dubai provided<br />

enhanced <strong>cover</strong>age through<br />

the innovative visuals provided<br />

by Creative Technology.<br />

Creative Technology<br />

developed a bespoke realtime<br />

production system that<br />

combines live information<br />

from broadcasters, pre<br />

-recorded material and<br />

highlights with real time<br />

graphics and scores updated<br />

from the event results<br />

system. This signal was then<br />

distributed to a network of<br />

TVs and large format video<br />

screens installed in key areas<br />

around the course.<br />

Where required the network<br />

can be expanded to include<br />

the clubhouse and/or oncourse<br />

hotels.<br />

The content production<br />

system allows for real time<br />

recording of all four days of<br />

each golf tournament, with<br />

a dedicated playout server<br />

to store and schedule clips,<br />

commercials and highlights<br />

packages produced on a<br />

separate edit system. This<br />

content is combined with a<br />

locally generated graphic<br />

wrapper, providing a live<br />

scoring and results panel<br />

which is updated from the<br />

central scoring database. The<br />

wrapper also incorporates<br />

tour and local sponsor logos<br />

and a real time clock.<br />

The signal distribution<br />

system, perhaps the most<br />

challenging element of the<br />

package, is built around<br />

a ruggedised military<br />

specification fibre system<br />

allowing fast and reliable<br />

installation of a bi-directional<br />

IPTV <strong>Network</strong>. Multiple HD<br />

Paul Sanders and Steve Purkess of Creative Technology with Kevin Roberts (left)<br />

and Glenn Kirton representing Award sponsors Sports Crowd - Action Images<br />

channels can be delivered to<br />

any suitable display device<br />

including televisions, LED<br />

displays and projection<br />

equipment. Every display can<br />

be individually controlled and<br />

monitored from the head end<br />

and all critical components<br />

are UPS protected to ensure<br />

the network is maintained in<br />

the unlikely event of localised<br />

power failure. The displays<br />

themselves vary between<br />

each tournament on ‘The<br />

Race to Dubai ‘series, but<br />

typically include an 18m2<br />

LED screen packaged in<br />

a purpose-built and fully<br />

branded mobile trailer unit<br />

and up to 100 HD televisions<br />

deployed throughout the<br />

hospitality and tournament<br />

management facilities. All of<br />

this equipment is installed,<br />

operated and removed on a<br />

weekly basis for the duration<br />

of the European Tour - a<br />

logistical challenge in itself.<br />

44 SportBusiness <strong>International</strong> • No. 152 • 12.09


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SPORTS EVENT MANAGEMENT<br />

AWARDS 2009<br />

HOSPITALITY & TRAVEL<br />

GOLD: Keith Prowse for the Twickenham Experience Rugby Hospitality<br />

JOINT SILVER: Sportsworld Group Ltd for the British Tennis Series<br />

JOINT SILVER: Air New Zealand Holidays for the 17th Golden Oldies World Rugby<br />

Festival Edinburgh<br />

IN A MARKET feeling the<br />

impact of reduced corporate<br />

budgets, the challenge<br />

facing sports hospitality<br />

professionals is to find new<br />

and exciting ways of making<br />

their match day experience<br />

fresh, exciting and valuable.<br />

This year’s Gold Award<br />

went to Keith Prowse<br />

Hospitality for its work at<br />

Twickenham stadium, home<br />

of English rugby during the<br />

2008 Autumn <strong>International</strong><br />

series, when the visitors<br />

were New Zealand, The<br />

Pacific Islanders and world<br />

champions South Africa.<br />

The Twickenham Experience is<br />

a joint-venture between Keith<br />

Prowse and the Rugby Football<br />

Union to create, develop<br />

and implement innovative<br />

packages for individuals and<br />

corporate guests throughout<br />

the stadium.<br />

November 2008 saw the<br />

launch of the redeveloped<br />

South Stand which<br />

incorporates a variety of<br />

hospitality areas, notably<br />

The Players’ Lounge and<br />

Rugby House. Guests had<br />

the once-in-a-lifetime<br />

opportunity to meet, chat and<br />

quiz some of the stalwarts of<br />

English rugby history within<br />

The Players’ Lounge. Guests<br />

were guaranteed a postmatch<br />

Question & Answer<br />

session with four of the current<br />

England squad fresh from the<br />

pitch, whether they won or lost.<br />

In addition, the introduction<br />

of the new Rugby House - a<br />

large central facility, comprising<br />

the 800 capacity Rose Suite<br />

and a number of smaller,<br />

more intimate suites, together<br />

with new hospitality packages,<br />

has secured the Twickenham<br />

Experience’s reputation as the<br />

unrivalled hospitality package<br />

at Twickenham.<br />

Peter Selby of Keith Prowse receives the Hospitality Award - Action Images<br />

On entering Rugby House<br />

guests are greeted by the<br />

sights, smells and sounds<br />

of a real rugby atmosphere.<br />

They are able to walk on the<br />

Astroturf carpet, mingle among<br />

the life-sized rugby scenes<br />

including a scrum and a<br />

changing room, before entering<br />

their suites for a champagne<br />

reception followed by a fourcourse<br />

lunch.<br />

As a result of changes<br />

throughout Twickenham,<br />

Keith Prowse has seen<br />

unparalleled demand for<br />

packages in the modern<br />

Rugby House and highly<br />

sought-after The Players’<br />

Lounge. Packages that, in<br />

recent years, have received<br />

a good degree of positive<br />

feedback are now at the<br />

height of their popularity.<br />

OUTSTANDING CONTRIBUTION<br />

Gilbert Felli, <strong>International</strong> Olympic Committee<br />

THE ACCLAIMED SUCCESS<br />

of the Beijing 2008 Olympic<br />

Games underscored just how<br />

far ‘The Greatest Show On<br />

Earth’ has come since its<br />

boycott-ridden low period<br />

in the late 1970s and early<br />

1980s, after which few cities<br />

were willing to take on a<br />

major event which appeared<br />

to be losing prestige as<br />

well as representing a huge<br />

financial liability.<br />

In the same way that the<br />

Games turned around its<br />

financial fortunes from<br />

Los Angeles onwards, the<br />

presentation and organisation<br />

of the Games has also taken<br />

significant steps forward with<br />

each successive edition.<br />

While this has undoubtedly<br />

been a team achievement,<br />

a key role has been played<br />

by Gilbert Felli, the Olympic<br />

Games Executive Director,<br />

responsible for the running,<br />

co-ordination and follow-up of<br />

all Olympic Games activities,<br />

from the candidature phase<br />

to the actual holding of the<br />

Olympic Games.<br />

Under his direction the<br />

Games have yet again become<br />

a sought-after property,<br />

whose value is highlighted<br />

by the ferocity of the bidding<br />

campaigns run by prospective<br />

hosts. Critically, he has been<br />

responsible for Games held in<br />

geographically and culturally<br />

diverse parts of the world<br />

which have been technical<br />

Sir Craig Reedie accepts the Outstanding Contribution Award<br />

on behalf of Gilbert Felli from Nigel Rushman - Action Images<br />

triumphs and strengthened<br />

the Olympic brand while<br />

holding up a mirror to the<br />

host city and country.<br />

EVENT MARKETING<br />

Gold: ICC World Twenty20 Team (part of the ECB) for the ICC World Twenty20<br />

Silver: Fast Track for the Aviva London Grand Prix<br />

Bronze: Munster Rugby for the Munster vs New Zealand Game<br />

THE INAUGURAL <strong>International</strong> Cricket<br />

Council World Twenty20 tournament,<br />

played in June, saw the newest form<br />

of the game played over 21 days at<br />

fours venues. In addition to the 42<br />

tournament matches there were 20<br />

warm-up games and the event set<br />

an international precedent with a<br />

women’s tournament taking place<br />

alongside the men’s.<br />

Despite the current popularity of<br />

Twenty20 cricket, the ultra competitive<br />

sports market meant there was no<br />

room for complacency among the ECB<br />

team responsible for marketing the<br />

event and ensuring that grounds were<br />

full. That attendance was close to 100<br />

per cent is evidence that they achieved<br />

their objectives.<br />

The UK was the tournament’s<br />

core market with a determined<br />

focus on engaging Britain’s ethnic<br />

communities.<br />

The tournament’s campaign<br />

creative strategy was based on<br />

the ICC World Twenty20 being<br />

‘Everyone’s Game’, emphasising<br />

that Twenty20 has a wide audience<br />

which encourages engagement and<br />

participation from those who may not<br />

normally follow cricket.<br />

The campaign’s media executions<br />

featured1000 poster placements<br />

on Underground and overland train<br />

stations sites over a six-week period,<br />

including digital posters; national<br />

radio advertisements; and UK regional<br />

press advertising with an audience<br />

reach of two million.<br />

Steve Elworthy of the ICC World Twenty20 team with<br />

Charlotte Jackson and John Shanley - Action Images<br />

The campaign also had a significant<br />

digital dimension. Along with pages on<br />

social networking sites, a four-week<br />

digital campaign on www.cricinfo.<br />

com resulted in over 14 million<br />

impressions. It was seen by over<br />

390,000 unique users and delivered<br />

22,000 clicks to the ticket sales site.<br />

46 SportBusiness <strong>International</strong> • No. 152 • 12.09


SECURITY<br />

GOLD: Sword Event Guard <strong>International</strong> for the Volvo Ocean Race, the<br />

Galway Stopover Festival<br />

SILVER: Controlled Solutions Group for the World Fire-Fighter Games<br />

AWARDS PRESENTER Charlotte<br />

Jackson reminded the audience<br />

of one of the fundamental truths<br />

in modern sport, announcing:<br />

“No security…no events.”<br />

The companies which<br />

plan and deliver the security<br />

programmes which enable<br />

events to take place, play a vital<br />

role yet many of their strategies<br />

and tactics inevitably remain<br />

shrouded in secrecy.<br />

However, judges were quick to<br />

applaud Sword Guard Security, one<br />

of the leaders in the field, for its<br />

work around an event which provides<br />

significant security challenges.<br />

They won Gold for their work at<br />

The Galway Stopover Festival of the<br />

Volvo Ocean Race. Galway was the<br />

only port in the British Isles to host<br />

the spectacular Volvo 70 fleet.<br />

The 15-day event attracted over<br />

600,000 visitors and was broadcast<br />

live on TV and streamed online to a<br />

two billion world-wide audience on<br />

Volvo Ocean Race TV.<br />

The maritime festival site received<br />

a location-specific analysis which<br />

enabled Sword to prepare preevent<br />

risk assessments and also<br />

allowed them to conduct precise<br />

administrative forecasting and<br />

Sword reduced the challenge<br />

of managing the security by<br />

implementing a system that they<br />

have developed through their<br />

experience at major events.<br />

Sword demonstrated both<br />

flexibility and innovation through<br />

their ability to logically adapt and<br />

redefine the same systems and<br />

procedures to meet the needs of one<br />

event to the next.<br />

This was reflected in the ability to<br />

cater for crowds 150 per cent bigger<br />

than anticipated and the late arrival<br />

of the race boats into Galway.<br />

SPECIAL AWARD FOR INNOVATION<br />

THE ALL ENGLAND LAWN TENNIS CLUB<br />

IAN RITCHIE, chief executive of the<br />

All England Lawn Tennis Club, was<br />

on hand to receive a special Award<br />

for Innovation, sponsored by Group<br />

Partners, for the completion of<br />

the far-sighted project to install a<br />

retractable roof over Wimbledon’s<br />

Centre Court.<br />

In just 10 minutes, one of sport’s<br />

most revered and iconic venues can<br />

be transformed from an open air<br />

court into a charged and atmospheric<br />

indoor arena.<br />

It represents a multi million pound<br />

investment by the All England<br />

Club which at a stroke brings<br />

one of the world’s most<br />

historic sports venues into the<br />

21st century.<br />

Judges felt that the<br />

Wimbledon roof is a perfect<br />

example of a positive<br />

investment which extends<br />

the use of Centre Court and<br />

expands its potential.<br />

The project combines<br />

enlightened investment with<br />

engineering excellence and<br />

management of an extremely complex<br />

two-year project.<br />

Above all it is entirely in keeping<br />

with the look, feel and spirit of one of<br />

the world’s best-loved sports events.<br />

Judges considered the forward<br />

thinking project as and an example of<br />

precision planning, attention to detail,<br />

utilisation of the best technology and<br />

the skilful combination of traditional<br />

structures and styles of the 20th<br />

century with the innovation and<br />

technology of the 21st.<br />

SportBusiness <strong>International</strong> • No.152 • 12.09 47


MOTORSPORT:<br />

OVERVIEW<br />

Simon Berger, IM2 CEO, is the man<br />

behind the Motor Sport Business<br />

Forum. Here, by way of introduction<br />

to our motor sport feature, he gives<br />

his overview of where the industry<br />

sits on the cusp of 2<strong>01</strong>0.<br />

In this time of economic instability, how would<br />

you say the motorsport industry has stood up<br />

I think every industry has suffered in the global<br />

downturn, just in varying degrees. Motorsport<br />

has been affected by the withdrawal of several<br />

manufacturers and sponsors from the sport<br />

and this has been compounded recently with<br />

certain global suppliers announcing that they<br />

are following suit at the end of 2<strong>01</strong>0.<br />

It is not all bad however. Several new teams<br />

will appear in various series, new sponsors are<br />

emerging as the cost of sponsorship falls and<br />

I believe that nearly all the commercial rights<br />

holders are looking to improve ‘the show’ to give<br />

more value-added to the sponsors and the fans.<br />

The banking sector has been hit hard - it is<br />

only natural that they have to look both internally<br />

and externally at everything they spend. A few<br />

have left the sport, but several have remained<br />

despite the hard times, which reiterates the fact<br />

that the ROI they receive through this medium is<br />

both quantifiable and justifiable.<br />

Is motorsport still a financially viable investment<br />

for brands and sponsors<br />

The simple answer is yes. Motorsport is still<br />

truly global and there aren’t many other sports<br />

that can say the same.<br />

It is also interesting that in F1 next year we<br />

will have at least 12 and potentially 13 teams<br />

on the grid and many of them come with new<br />

investors in the sport. You just have to look at<br />

Malaysia’s investment in the Lotus team and the<br />

fact that the founder of YouTube is investing in<br />

USF1 to see that motor sport continues to attract<br />

major investors.<br />

Is there a case for saying the recession has<br />

actually helped some of the series For example,<br />

F1 in terms of cost cuts and Rally in terms of<br />

cutting manufacturers from the series<br />

I wouldn’t say the recession has helped. But<br />

I think that F1 and WRC will be better for the<br />

changes that they have had to make. There is no<br />

doubt that the cost cuts made in F1 have paved<br />

48 SportBusiness <strong>International</strong> • No. 152 • 12.09


F1 has kept its show on the road - Getty Images Sport<br />

the way for new investors and teams in the sport.<br />

I think the same will be happening in rallying,<br />

especially since ISC signed its new 10-year<br />

promoter’s contract.<br />

What would you say is the overall value of the<br />

motorsport market at present And what is your<br />

prognosis for 2<strong>01</strong>0<br />

I think stability is the key for 2<strong>01</strong>0. Motorsport,<br />

like all industries, has suffered from the economic<br />

downturn and no doubt we will see more bad<br />

news for some series and competing teams. But<br />

the major championships such as F1, WRC,<br />

WTCC and GT will remain because they have<br />

the support and the history behind them. Next<br />

year they will hope to achieve stability but I can<br />

certainly see growth in future years.<br />

Has a season full of controversy and headlines<br />

been good for Formula One<br />

Whilst I believe there here have been far too<br />

many negative headlines this year, I don’t think<br />

it has damaged F1 too much. People almost<br />

expect intrigue and controversy in the sport<br />

and sometimes this is as interesting as the<br />

race itself. People also tend to move on to the<br />

next ‘headline’ rather quickly so whilst one day<br />

it might be about a manufacturer leaving the<br />

sport, the next all the talk is about the incredible<br />

Abu Dhabi circuit and the end of another<br />

exciting season.<br />

World Rally seems to be in better than ever<br />

shape, it has listened to its fans and looks<br />

healthy and sustainable. Could other series learn<br />

anything from WRC<br />

The major stakeholders from the World Rally<br />

Championship will participate in a special<br />

session on 9 December. Neil Duncanson,<br />

chairman of WRC promoter <strong>International</strong><br />

Sportsworld Communicators will talk about his<br />

plans for this new era in the sport.<br />

This will be followed by a presentation from<br />

Paul Hembery, director of motorsport for Pirelli,<br />

who will discuss the tyre company’s unique<br />

role as supplier, sponsor and promoter of the<br />

championship. Also speaking will be John<br />

Nolan, head of digital at ISC’s parent company<br />

North One Television, Jarmo Mahonen,<br />

promoter of the successful Rally Finland event,<br />

and a representative from one of the competing<br />

manufacturers<br />

The Motor Sport Business Forum has expansion<br />

plans - ME, America, Asia Pacific. What is the<br />

rational for the expansion<br />

The fact we are expanding further afield is<br />

indicative of the increasingly global nature of<br />

motorsport. We noticed that many executives<br />

from other regions expressed an interest in our<br />

Monaco event but weren’t able to merely hop<br />

across continents. So we decided to look into the<br />

possibility of creating an event in each continent.<br />

These events very much focus on the region<br />

they are in. The Bahrain event had a distinct<br />

Middle Eastern flavour to the conference<br />

programme, featuring presentations from the<br />

major industry players in that region.<br />

Our US event, which will be held in Orlando<br />

on 8-9 December, will be ideally positioned to<br />

host the region’s first international event that<br />

creates a wealth of networking and business<br />

opportunities to companies, corporations and<br />

individuals alike.<br />

Our aspirations are to keep growing and to<br />

continue to provide an important platform for the<br />

motorsport industry.<br />

What would you say was the key benefit in<br />

attending the forum<br />

We launched the Forum five years ago and I think<br />

a lot of motorsport executives grasped the concept<br />

straight away. They saw the value, especially from<br />

a networking point of view.<br />

Once people realised that there would be a<br />

place where they could meet and talk business,<br />

where the focus of attention is not on the track,<br />

they immediately saw its value. The Forum is like<br />

a paddock, created specifically for the commercial<br />

side of the sport.<br />

THE WORD ACCORDING TO:<br />

BERNIE ECCLESTONE<br />

“I am happy, happy, happy that a lot of<br />

new teams are coming in. And they are<br />

coming in because they realise they can<br />

be competitive with a lot less money than<br />

before. It was really a bit of a closed shop<br />

by virtue of the cost. We are now getting<br />

new and interesting teams.”<br />

“I think we have adjusted (to difficult<br />

economic times) in the right way. We<br />

have conquered the necessity to spend<br />

a lot of money to be competitive. The<br />

best thing to come out of the recession<br />

for us was that it was a wake-up call for<br />

the teams. We didn’t need to make an<br />

agreement to say you couldn’t spend… it<br />

has happened on its own.”<br />

“What happened to the Renault team<br />

was probably quite fair. Perhaps we were<br />

a little bit harsh in what we meted out<br />

to Flavio [Briatore]. He needed a bit of<br />

a slap perhaps because he is the team<br />

manager. He could have said - you can’t<br />

do that. The buck stopped with him and<br />

in fairness to him he acknowledges that.”<br />

“There have been many difference<br />

incidents over the years which have been<br />

portrayed as the beginning of the end for<br />

Formula One. But I think the brand of<br />

Formula One is so strong that these sorts<br />

of things don’t hurt it.”<br />

“The good thing about it is that when<br />

you go to a race now and somebody asks<br />

who is going to win I’d have to say I<br />

haven’t a clue. I just don’t know.<br />

Before, when Michael (Schumacher)<br />

was around we knew that if he was on<br />

pole he was probably going to win...<br />

Now we don’t know and that’s good, it’s<br />

what people want.”


MOTORSPORT:<br />

SPONSORSHIP<br />

Virgin Group...seized the opportunity - Getty Images Sport<br />

If 2009 won’t go down as a vintage year for motorsports<br />

in terms of its commercial performance, it is certainly<br />

not all doom and gloom as the sector continues to be<br />

held in high-regard by blue-chip brands. By Andy Fry.<br />

SO THE HEADLINES looked bad.<br />

General Motors was forced to file<br />

for bankruptcy in 2009, the impact<br />

of which was most keenly felt in<br />

US stock car series NASCAR. In<br />

Formula One, the crisis led to the<br />

withdrawal of both Honda and<br />

BMW from the race grid during<br />

the year and the withdrawal of<br />

sponsors, including RBS, Credit<br />

Suisse, Dell and ING. The World<br />

Rally Championship saw long-time<br />

supporter Subaru pull out while<br />

iconic motorcycle brand Kawasaki<br />

quit MotoGP. Both blamed the<br />

economic downturn.<br />

And yet, there were also positive<br />

signs. Cast your eye across F1,<br />

Nascar, rallying and two-wheel<br />

motorsport and you’ll spot new<br />

deals involving Santander Bank,<br />

Vodafone, MegaFon, The National<br />

Bank of Abu Dhabi, Shell, Lenovo<br />

and Virgin. That’s hardly a sector<br />

on the verge of collapse.<br />

The rationale for every deal<br />

varies. But there are a few<br />

core attributes that explain<br />

the continued popularity of<br />

motorsport. First, there is the huge<br />

upmarket audience it delivers.<br />

Then there are its brand-based<br />

attributes - which <strong>cover</strong> everything<br />

from technical performance to<br />

aspirational lifestyle. Finally, there<br />

is the fact that motorsports is such<br />

a great b2b platform.<br />

LG Electronics chief marketing<br />

officer Dermot Boden summed<br />

up the appeal pretty neatly when<br />

talking about his own company’s<br />

partnership with F1 - unveiled at<br />

the end of 2008. “This is a great<br />

sponsorship for LG,” he said.<br />

“F1 is one of the most dynamic<br />

sports in the world, relying on<br />

leading-edge technologies and<br />

continually pushing the boundaries<br />

of engineering excellence. LG<br />

has a similar focus on innovation<br />

and technological leadership.<br />

This, alongside a global audience,<br />

provides clear synergies for us.”<br />

Global audience<br />

The global audience referred to<br />

by Boden is the reason why F1,<br />

more than any other motorsports<br />

franchise, is well-placed to weather<br />

the downturn. You only have to<br />

look at some of the deals it has<br />

pulled off in 2009 to see the value<br />

of territorial reach. At the start<br />

of the year, for example, came<br />

Panasonic’s decision to renew its<br />

partnership with Toyota until 2<strong>01</strong>2<br />

- a deal estimated in some quarters<br />

to be worth $45 million a year.<br />

Then there was Casio’s decision<br />

to back both Red Bull and its top<br />

driver Sebastian Vettel.<br />

More recently, Santander Bank<br />

agreed a five-year deal with Ferrari<br />

reckoned to be worth around<br />

$50-60 million a year. In the<br />

same week, it renewed its existing<br />

partnership with McClaren - a deal<br />

which many expected it to end. Like<br />

LG, Santander is no doubt that F1 is<br />

doing a decent job - and has figures<br />

to back it up. Since joining forces<br />

with McLaren, it says that UK<br />

awareness of its brand has jumped<br />

from 20 per cent to 82 per cent.<br />

Even more impressive, perhaps, is<br />

the claim that every 1 invested in<br />

F1 leads to a return of 5.<br />

Bernie Ecclestone realised long<br />

ago that the circuit’s international<br />

dimension is a crucial part of<br />

its resilience, which is why he<br />

continues to open up new markets.<br />

Any new Grand Prix race gives<br />

F1 access to an enlarged pool of<br />

sponsors and investors.<br />

And Grand Prix in territories<br />

like China, Turkey and the Middle<br />

East give big brands a way into<br />

emerging markets - encouraging<br />

them to stick with F1.<br />

The fruits of this endeavour are<br />

clear in Chinese computer firm<br />

Lenovo’s link up with Williams<br />

(estimated value $190 million), the<br />

creation of the Indian-backed Force<br />

India team and the $10 million deal<br />

between Russian mobile operator<br />

MegaFon and Renault.<br />

Not to be overlooked either is<br />

the way F1 has anchored itself<br />

in the Gulf. After opening for<br />

business in Bahrain during 2004,<br />

it has seen airline Gulf Air come<br />

in as title sponsor of that race and<br />

Etihad Airlines become a major<br />

backer of the Ferrari team. Further<br />

expansion came this year when<br />

the inaugural Abu Dhabi Grand<br />

Prix secured a $4.5 million title<br />

sponsorship with The National<br />

Bank of Abu Dhabi.<br />

We’re seeing a similar pattern in<br />

Southeast Asia - where the creation<br />

of the Malaysian and Singapore<br />

GPs has brought in Petronas and<br />

Singtel as race sponsors. Now<br />

we are poised to see a Malaysianbacked<br />

Lotus team join the grid in<br />

2<strong>01</strong>0, a move which will spark yet<br />

more valuable sponsorship activity.<br />

Aside from the<br />

internationalisation of F1’s revenue<br />

base, the other big story in F1<br />

sponsorship this year has been<br />

the rise of Brawn GP and new<br />

World Champion Jensen Button.<br />

Although not viewed as a threat at<br />

the start of the season, a storming<br />

start to the 2009 campaign by<br />

Button led to a rush of deals.<br />

The most noteworthy was Virgin<br />

Group’s one-year deal in March.<br />

But this season has also seen<br />

brands like Henri Lloyd (clothing),<br />

Gieves & Hawkes (clothing)<br />

Ray-Ban (designer sunglasses)<br />

50 SportBusiness <strong>International</strong> • No. 152 • 12.09


MOTORSPORT:<br />

SPONSORSHIP<br />

Top Motorsport deals in 12 months to December 2009<br />

Report Date Sponsor Team Sport Sponsor Type Reported Value of Deal Years Deal Type<br />

Dec-08 Lenovo McLaren Formula One Team Sponsor $16,000,000 1 New<br />

Jan-09 Panasonic Toyota Formula One Team Sponsor $105,000,000 3 Renewal<br />

Mar-09 Virgin Group Brawn GP Formula One Team Sponsor $30,000,000 1 New<br />

Apr-09 Petronas Yamaha Motorcycling Team Sponsor $24,000,000 3 New<br />

Sep-09 Santander McLaren Formula One Team Sponsor $48,000,000 3 Renewal<br />

Oct-09 Repsol Honda team in Moto GP Motorcycling Team Sponsor $16,000,000 1 Renewal<br />

Source:TWSM<br />

and MIG Invest (finance) join<br />

the team. Brawn (alongside Red<br />

Bull Racing) is notable for leading<br />

a trend towards non-traditional<br />

commercial partners. Others<br />

following suit include McLaren<br />

(Marks & Spencer) and Williams<br />

(Hell Energy Drink).<br />

And Brawn has been very<br />

flexible in terms of the types of<br />

deals it is willing to do, opening<br />

up motorsports to a wider range<br />

of partners. Sony Pictures came in<br />

for the Spanish Grand Prix while<br />

other race-specific relationships<br />

entered into by Brawn included<br />

Canon (Singapore) and Cervejaria<br />

(Brazil). With a price-tag of around<br />

$100,000-$150,000, that makes F1<br />

an affordable platform for brands.<br />

F1 aside, there was also good news<br />

for rallying when Ford and Citroen<br />

elected to stay with the WRC for<br />

the next two years. Given the<br />

pressure on car manufacturers, it<br />

was a welcome boost when Citroen<br />

Racing team principal Olivier<br />

Quesnel called WRC “an excellent<br />

promotional vehicle where costs<br />

are contained”. Also positive for<br />

the WRC was the news that Edox<br />

will be official timing partner until<br />

the end of 2<strong>01</strong>2.<br />

Two wheels good<br />

In the two-wheel sector,<br />

international circuit MotoGP’s<br />

experience has, in some respects,<br />

echoed that of F1. At the start<br />

of the year it lost Kawasaki. But<br />

throughout the season, commercial<br />

rights holder Dorna Sports has<br />

managed to sign some important<br />

deals. Gaming company Bwin,<br />

for example, reaffirmed its<br />

commitment when it renewed as<br />

title sponsor of MotoGP events<br />

in Spain (at Jerez) and Portugal<br />

(Estoril). In another coup, Shell<br />

Advance became title sponsor<br />

of the Malaysian motorcycle<br />

Grand Prix - adding to existing<br />

partnerships with races in Qatar,<br />

Italy, Germany and the USA (as<br />

well as being a partner of the<br />

popular works Ducati team).<br />

And there are other<br />

stories which suggest a minibounceback.<br />

In Australia, for<br />

example, Nikon made a lastminute<br />

decision to renew its<br />

sponsorship of the Surfer’s<br />

Paradise SuperGP event - which<br />

featured V8 Supercar races. In<br />

the US, meanwhile, there are<br />

rumours that the IndyCar series<br />

may be on the verge of a big deal<br />

with Phillips Van Heusen apparel<br />

line IZOD, owner of brands such<br />

as Calvin Klein, Van Heusen,<br />

Arrow and Bass, meaning<br />

potential scope for a more broadbased<br />

partnership involving all of<br />

the above in a secondary capacity.<br />

With the global economy still<br />

fragile, it’s too early to claim a<br />

sustainable re<strong>cover</strong>y. But such<br />

developments show that leading<br />

motorsports franchises continue to<br />

be a big pull for brands.<br />

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SportBusiness <strong>International</strong> • No.152 • 12.09 51


MOTORSPORT:<br />

MEDIA<br />

Dale Earnhardt Jr in action -<br />

Getty Images Sport<br />

Storylines are the key to ratings spikes in motorsport<br />

since compelling, relevant dramas help it reach beyond<br />

the petrol-head audience. But Andy Fry dis<strong>cover</strong>s that<br />

consistency is also crucially important.<br />

THE ORTHODOX WISDOM is that<br />

fans spend more time at home<br />

during downturns because they<br />

can’t afford to go out; and that<br />

thesis certainly seems to have been<br />

borne out in the case of F1 which<br />

has delivered robust ratings across<br />

a range of territories. US stock car<br />

series Nascar the sector’s other bell<br />

weather franchise, has struggled by<br />

comparison though. So what’s the<br />

explanation<br />

While top motorsports<br />

franchises can usually be<br />

guaranteed to deliver a solid<br />

hardcore of viewers, the sheer<br />

range of digital media alternatives<br />

means that a genuine hook is now<br />

needed to boost TV ratings.<br />

For F1, this added incentive<br />

usually comes in three forms -<br />

race location, the performance<br />

of key individuals/teams and the<br />

competitiveness of the overall<br />

driver’s championships.<br />

The first point is underlined by<br />

the Mediametrie figures oppostite<br />

which show that TF1 France<br />

secured a 40 per cent share of<br />

audience for the 2009 Monaco<br />

Grand Prix - its highest rating of<br />

the year (at the time of writing<br />

before the Brazilian GP). Similarly,<br />

RAI Italy’s best figures came for<br />

the Italian Grand Prix (45 per<br />

cent share, 7.7 million). In other<br />

words, races close to home have a<br />

particular appeal to viewers.<br />

This point is even more<br />

accentuated in new F1 markets<br />

where news that a Grand Prix is<br />

on its way can have a ripple effect<br />

across the entire racing season.<br />

Take Singapore for example where<br />

ESPN Star Sports reported an<br />

increased appetite for the sport<br />

ahead of its debut GP in 2008.<br />

The most impressive figures came<br />

in the male 35-44 demographic,<br />

where audiences for live F1 races<br />

grew 127 per cent year-on-year<br />

(2008 vs 2007). Even among<br />

younger men figures were up<br />

around 20 per cent.<br />

While ESPNSS shows most<br />

F1 races, the Singapore GP itself<br />

is aired on domestic Englishlanguage<br />

network Channel 5.<br />

This year (2009), the race secured<br />

23.6 per cent of audience - which<br />

may not sound high until you<br />

consider a) it aired in primetime<br />

not daytime b) most viewing<br />

in Singapore goes to Chineselanguage<br />

Channel 8 and c) a highproportion<br />

of fans watch the race<br />

in bars. With all that in mind, the<br />

fact that the race was Channel 5’s<br />

12th best performer of the year (up<br />

to Sept 27) is pretty impressive.<br />

The impact on TV ratings of<br />

hosting a GP is only matched when<br />

one of the other key factors come<br />

into play. Take a look at the UK’s F1<br />

viewing figures, for example. Despite<br />

a five-hour time difference between<br />

the UK and the Americas, the<br />

Brazilian Grand Prix has delivered<br />

extremely strong ratings in the UK<br />

for both of the last two seasons.<br />

Home advantage<br />

The reason is simple. In both cases,<br />

the race has delivered a British<br />

World Champion - Lewis Hamilton<br />

in 2008 and Jenson Button in<br />

2009. In 2008, the race averaged<br />

8.8 milion viewers (41 per cent<br />

share) and peaked at 12.5 million<br />

for commercial network ITV. In<br />

2009, it averaged 6.6 million (35<br />

per cent) and peaked at 8.9 million<br />

for new rights holder the BBC.<br />

The impact of driver<br />

personalities in motorsports has<br />

been evident for years. Ayrton<br />

Senna, Michael Schumacher,<br />

Fernando Alonso and Kimi<br />

Raikkonen have all had a dramatic<br />

impact on F1 viewing figures<br />

in their domestic markets. By<br />

contrast, the absence of a top talent<br />

- or their retirement - generally<br />

causes the reverse effect.<br />

This was certainly the case in<br />

Germany after Schumacher retired.<br />

And it’s possibly one reason why<br />

Nascar on Fox US saw the average<br />

rating for its first ten races in 2009<br />

drop to 5.4 (8.9 million viewers)<br />

from 6.1 (10 million) year-on-year,<br />

which analysts have, at least partly,<br />

attributed to the inconsistent<br />

performance of Nascar icon Dale<br />

Earnhardt Jr.<br />

Nascar is acutely aware of the<br />

point - with Nascar Media Group<br />

president Paul Brooks saying that<br />

2009 has suffered from a lack of<br />

“storylines” - since it is these which<br />

drive viewing momentum. Usually,<br />

Nascar can rely on set-piece events<br />

like the Daytona 500 to help turn<br />

things round. But this year the race<br />

was rain-shortened - with the result<br />

that the audience was down 10 per<br />

cent on the previous year’s race.<br />

As we’ve noted above, a good<br />

story will make audiences ignore<br />

time differences. But this isn’t the<br />

same as saying time differences<br />

don’t matter - they do. In F1,<br />

Bernie Ecclestone has grasped this<br />

point - which is why he encouraged<br />

Singapore to hold a night-race<br />

(since this suited European<br />

television audiences better). It has<br />

also been noted also how much<br />

difference rescheduling race times<br />

in the likes of Australia and Asia<br />

can make to European audiences.<br />

Of course, it’s not always an<br />

easy judgment to make changes.<br />

Looking again at Nascar, for<br />

example, there is an argument that<br />

moving ad breaks away from pit<br />

stops would boost ratings since<br />

Nascar fans like pit stops.<br />

52 SportBusiness <strong>International</strong> • No. 152 • 12.09


Countries Without a Domestic F1 GP<br />

TV Data - 2009 Season (up to Brazil GP) Total Individuals<br />

rat% rat# shr%<br />

Romania TVR1 1.5 295.7 6.2<br />

Best F1 Race Bahrain GP 1.9 387.7 8.1<br />

Hungary RTL Klub 10.5 970.1 40.1<br />

Best F1 Race Brazil GP 15.1 1395.8 32.3<br />

Croatia HTV2 5.8 256.1 25.2<br />

Best F1 Race Bahrain GP 7.7 318.6 28.4<br />

Sources: Eurodata TV Worldwide - Armadata - AGB NMR<br />

Countries With a Domestic F1 GP<br />

TV Data - Local race in 2009 Season Total Individuals<br />

rat% rat# shr%<br />

Singapore Channel 5 8.3 386.5 23.6<br />

Only Singapore GP shown on channel 5<br />

France TF1 7.5 4342 39.8<br />

Best Race in France was Monaco GP<br />

Italy RAI1 13.4 7672 45<br />

Best Race in Italy was Italian GP<br />

Sources: Eurodata TV Worldwide - TNS - Mediametrie - Auditel<br />

But imagine the outcry if an ad<br />

break missed some race action<br />

instead. Likewise, fans aggrieved by<br />

Nascar rain delays have suggested<br />

that the series should be flexible<br />

enough to alter race times if the<br />

weather looks bad. But, imagine<br />

the outrage among fans who come<br />

in at the expected start time to find<br />

the TV <strong>cover</strong>age is almost over.<br />

Clearly, all of the above has to be<br />

seen in the context of the kind of<br />

broadcast deals that franchises do.<br />

The best illustration of that is<br />

IndyCar in the US. Here, flagship<br />

race the Indianapolis 500 saw an<br />

18 per cent rise in 2009 - recording<br />

a 5.3 rating and a 14 per cent<br />

share for ABC. But the rest of the<br />

IndyCar season - which airs on<br />

cable channel Versus received an<br />

average rating of 0.39 per race.<br />

Contrast that situation with<br />

MotoGP - where rights holder<br />

Dorna has focused its efforts on<br />

securing free-to-air live <strong>cover</strong>age.<br />

Dorna’s ratings for the MotoGP<br />

race at Donington Park show a<br />

record audience for the BBC (2.9<br />

million viewers, 23 per cent share).<br />

This strong figure was echoed in<br />

Spain where public broadcaster<br />

TVE attracted 2.34 million people<br />

(23 per cent share).<br />

Consistent delivery<br />

Indeed, MotoGP viewing figures<br />

perfectly reinforce the points<br />

made regarding F1 and Nascar.<br />

The undisputed star of the circuit<br />

is Valentino Rossi - a hero in his<br />

native Italy. For Italia 1, this means<br />

audience share of around 40 per<br />

cent is normal.<br />

But it gets even better when<br />

there’s something special going on.<br />

For Italy’s home race in Mugello,<br />

ratings hit an incredible 6.79<br />

million. When Rossi scored a<br />

spectacular win in Catalunya, 5.98<br />

million Italians watched. Ratings<br />

like this can have a hugely beneficial<br />

effect on a network or a sporting<br />

franchise. But, it’s important not to<br />

be hypnotised by these peaks and<br />

troughs. In the case of Nascar, for<br />

example, more important than the<br />

2009 ratings dip is the fact that<br />

the series remains one of the topperformer<br />

TV sports in the US. It<br />

was still the top sport on television<br />

six times.<br />

For sponsors, who need to<br />

plan well in advance (usually 2-4<br />

year contractual cycles), it’s this<br />

long-term consistent delivery of a<br />

young predominantly male which<br />

is important - with sudden boosts<br />

in audience regarded as a bonus.<br />

That’s why season-long circuits like<br />

Nascar, F1, MotoGP and the World<br />

Rally Championship continue to<br />

attract sponsors.<br />

Look at Mediametrie’s figures<br />

for Central and Eastern Europe<br />

for example and you can see F1<br />

regularly outperforms the network<br />

average - delivering strongly<br />

against male viewers.<br />

WRC is another classic case<br />

in point. Comprising 12 races in<br />

different locations, it attracts a<br />

cumulative audience of more than<br />

800 million in 180 countries. It<br />

provides live <strong>cover</strong>age in exotic<br />

locations and produces a range of<br />

highlights, updates and magazine<br />

shows which extend the brand’s<br />

appeal. With content also pumped<br />

out via YouTube, Facebook and<br />

Twitter, it’s exactly the kind of<br />

franchise that sponsors can plan<br />

their activation against - without it<br />

needing to deliver one-off ratings<br />

spectaculars.<br />

The full 2009 F1 season’s viewing will<br />

be released in the Yearly Sport Key<br />

Facts Special Report from Eurodata<br />

TV Worldwide/Mediametrie.<br />

Driven by Passion, Powered by People.<br />

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We’re the leading global motorsports-exclusive marketing agency. Our insider knowledge, influence<br />

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SportBusiness <strong>International</strong> • No.152 • 12.09 53


MOTORSPORT:<br />

FORMULA ONE<br />

FUELLED BY<br />

CONTROVERSY<br />

As the world’s most-watched annual sport, and with no other<br />

single-seater racing series in close competition, Formula One<br />

has built itself an almost unassailable position. Scandals don’t<br />

dent it; in fact the sport seems to thrive on them. With the<br />

twists and turns of the past 12 months it is in its heyday.<br />

By Christian Sylt and Caroline Reid.<br />

Going on strong -<br />

Getty Images Sport<br />

ON THE FACE OF IT F1 seems to have had a<br />

dreadful time over the past year. As if a recession<br />

wasn’t enough to deal with, the sport has also<br />

faced the threat of a rival series, the departure<br />

of Honda and BMW and the ousting of Renault<br />

team boss Flavio Briatore after it was revealed that<br />

he influenced the outcome of last year’s Singapore<br />

Grand Prix. Despite all this, possibly because of<br />

some of it, the finances of F1 are rosier than ever.<br />

F1 had a record year financially in 2008. The<br />

addition of a race in Valencia as well as the new<br />

Singapore night race drove the turnover of Delta<br />

3, the sport’s UK holding company, up 13 per cent<br />

to an all-time-high of $1 billion. These two races<br />

alone are reportedly paying combined annual<br />

fees of $82.5 million and F1 is building on that<br />

this year with November’s inaugural Abu Dhabi<br />

Grand Prix, another blockbuster event which will<br />

pay $45 million every year.<br />

This year a record 41 per cent of F1’s races<br />

are in Asia compared to 12.5 per cent a decade<br />

ago. Next year the balance will tip even further<br />

as South Korea joins the F1 calendar with India<br />

following in 2<strong>01</strong>1. There is good reason for F1’s<br />

drive into emerging markets.<br />

Race hosting fees bring in around a third of<br />

the F1 Group’s revenues but the teams prevent its<br />

chief executive Bernie Ecclestone from increasing<br />

the number of races. In order to raise revenues,<br />

Ecclestone has taken the sport to countries which<br />

are prepared to pay more instead.<br />

Emerging markets such as Singapore, South<br />

Korea and Abu Dhabi pay top dollar since their<br />

governments bankroll the hosting fees in order to<br />

use the race as a flagship to drive tourism. Getting<br />

an F1 race puts them on a calendar alongside<br />

developed and exotic nations such as Monaco,<br />

Malaysia and Australia. It puts them on the global<br />

sporting map and gives the country publicity to<br />

F1’s 600m annual viewers.<br />

However, since Europe is still F1’s biggest<br />

single TV market, the new Grands Prix in Asia are<br />

being held at night so that they can be broadcast<br />

live in Europe at peak time. Singapore was the<br />

first night race and Abu Dhabi takes it to a new<br />

level as it will begin at sunset and finish under<br />

floodlights. After Korea and India, Ecclestone has<br />

plans to move further into Asia. “We keep talking<br />

about Moscow but I don’t know if they are going<br />

to do anything. Probably yes,” he says.<br />

F1 isn’t immune to the economic downturn<br />

of course. It is believed to have dented the sport’s<br />

corporate hospitality revenues by as much as 30<br />

per cent this year as sponsors and their clients<br />

shied away from public displays of excess.<br />

Nevertheless, F1 has a trick or two under its<br />

bonnet to mitigate the impact of this revenue loss.<br />

Cleverly the race hosting contracts all contain<br />

an escalator clause which increases the cost by<br />

10 per cent annually. Accordingly, F1’s turnover<br />

is likely to increase by a few per cent this year<br />

despite the drop in corporate hospitality demand.<br />

F1 has also been well prepared for the<br />

downturn by being extremely lean. Staff<br />

payment is one of the biggest cost items for any<br />

company but F1 only employs 249 people with<br />

its headcount rising by 10 last year in contrast<br />

54 SportBusiness <strong>International</strong> • No. 152 • 12.09


MOTORSPORT:<br />

FORMULA ONE<br />

“Hospitality revenues have been<br />

dented by as much as 30 per cent<br />

this year as sponsors and their clients<br />

shied away from public displays of<br />

excess. Nevertheless, F1 has a trick<br />

or two under its bonnet to mitigate<br />

the impact of this revenue loss.”<br />

to the cuts made by most businesses. Indeed,<br />

the sport’s employees are so productive that,<br />

according to research by F1’s industry monitor<br />

Formula Money, they each generate more revenue<br />

than those at any company in the FTSE 100, the<br />

<strong>International</strong> Olympic Committee, <strong>FIFA</strong> and<br />

leading entertainment rights holders such as<br />

Marvel and Nintendo.<br />

One cost which F1 couldn’t keep down was<br />

the amount of prize money paid to the 10 teams.<br />

This accelerated 52.3 per cent to $521 million<br />

under a new agreement which gives the teams 50<br />

per cent of F1’s underlying profits. This doubled<br />

their previous take from the sport and was a key<br />

condition they demanded to prevent them from<br />

leaving the sport.<br />

It served its purpose as in August the teams<br />

signed an extension to the Concorde Agreement,<br />

the contract committing them to F1, until 2<strong>01</strong>2.<br />

The increased team payments sent Delta 3’s<br />

operating profit down from $206 million in 2007<br />

to $86.4 million last year.<br />

The biggest risk to F1 of course comes from<br />

the teams and their not quite annual threat to<br />

quit the sport. In response to the question of<br />

how he can prevent teams leaving F1 Ecclestone<br />

bluntly says “you can’t. The manufacturers won’t<br />

commit. Are they going to write that they commit<br />

to race for seven years, or ten years, five years<br />

They won’t. They don’t know what they’re going<br />

to do next week,” adds Ecclestone.<br />

The teams themselves have put in place a cost<br />

reduction programme, due to be implemented<br />

over the next few years. Ecclestone says that<br />

“it’s not in the Concorde Agreement that’s been<br />

signed...they’re doing it amongst themselves.”<br />

One of the best indications of the outlook on<br />

F1 is its debt price. When private equity firm<br />

CVC bought F1’s commercial rights-holder in<br />

2006 it used $2.8bn of debt from Royal Bank of<br />

Scotland (RBS) and Lehman Brothers. This must<br />

be paid back by 2<strong>01</strong>4. That debt has since been<br />

sold by the banks and the price of the debt gives<br />

a good indication of the sport’s health. The better<br />

the sport is perceived to be doing, the higher the<br />

price of its debt.<br />

After Honda pulled out the debt price<br />

plummeted reaching a low of 48.7p in the Pound<br />

at the end of March according to Markit Group,<br />

which charts credit pricing. This level was lower<br />

than the mean price on Markit’s iTraxx LevX<br />

Index, a gauge of high-risk, high-yield loans<br />

in Europe, which fell to a record low of 68p in<br />

March over debt default concerns. However, the<br />

signing of the Concorde Agreement boosted<br />

F1’s debt price by 9.2p to 84.1p at the end of<br />

August. Since then the debt price has<br />

risen further hitting 90.8p at the<br />

beginning of October - its highest<br />

price in 12 months.<br />

Clearly the scandal<br />

surrounding Flavio Briatore,<br />

which engulfed F1 in September, had<br />

no impact on investor confidence in<br />

the sport. In fact, it seems it may just<br />

have had the opposite effect.<br />

Why Well perhaps the<br />

answer lies in the response,<br />

back in 2005 to an FIA survey<br />

of 93,000 fans. When asked,<br />

amongst other questions,<br />

‘what attributes are perceived<br />

as essential to F1’ some 56<br />

per cent of the surveyed fans<br />

replied ‘intrigue’. No wonder<br />

then that F1 has gone from<br />

strength to strength.<br />

Photos cour tesy of Netball Singapore, Lexus Cup (IMG) & Singapore Spor ts Council<br />

SportBusiness <strong>International</strong> • No.152 • 12.09 55


MOTORSPORT:<br />

RALLY<br />

ON<br />

THE<br />

RIGHT<br />

TRACK<br />

Rallying now has two thriving series, the World Rally Championship<br />

and the Intercontinental Rally Challenge. Despite the economic<br />

downturn, both series have developed and innovated in 2009 and,<br />

for different reasons, finish the year in pretty good shape.<br />

IN DECEMBER last year it looked<br />

like the wheels were coming off<br />

the World Rally Championship.<br />

Within a 24-hour period it lost<br />

two manufacturers as Suzuki<br />

and Subaru announced that they<br />

would pull their teams out of the<br />

series. That left WRC with just<br />

two manufacturer teams, Ford and<br />

Citroen, puncturing its pride but<br />

not exhausting it.<br />

In fact, it gave WRC a clean slate<br />

to create a path to fortune. Learning<br />

from some of the problems in<br />

Formula One, which has more<br />

manufacturers than podium places,<br />

Neil Duncanson, chief executive<br />

of North One, the production<br />

company which owns ISC, made a<br />

crucial decision.<br />

“I decided I didn’t want more<br />

than four significant manufacturers<br />

because any more than that and<br />

they can’t win,” he said, adding:<br />

“I’ve got one or two who I think will<br />

come in.”<br />

Fiat recently entered one<br />

round of the Rally Finland with<br />

Ferrari’s F1 driver Kimi Räikkönen<br />

who famously rolled the car and<br />

Duncanson says “if we mix it up<br />

with Fiat and Volkswagen, and<br />

whoever else coming in, they need<br />

to win rallies.”<br />

To give its chances an added<br />

boost, WRC will introduce a<br />

1600cc turbo engine in 2<strong>01</strong>1. “This<br />

brings WRC in line with the way<br />

the automotive industry and public<br />

opinion is moving towards more<br />

energy efficient engines,” says<br />

ISC’s chief executive Simon Long.<br />

“At the same time, this will<br />

further support our efforts to<br />

attract new manufacturers and<br />

car brands into our sport with the<br />

prospect of more cost effective and<br />

relevant WRC car regulations.”<br />

“Subaru were a real part of our<br />

DNA and that [their departure]<br />

really hurt us. I’d like to think they<br />

will come back to WRC at some<br />

point,” says Duncanson.<br />

As the road to economic<br />

re<strong>cover</strong>y becomes smoother<br />

there are good reasons why car<br />

companies may pull in to WRC.<br />

“Manufacturers can subscribe to<br />

World Rally at much less cost than<br />

F1,” says Duncanson.<br />

Running a top rally team costs<br />

a car manufacturer around $20<br />

million annually - around five per<br />

cent of the investment required for<br />

an F1 campaign.<br />

“I think the future of World<br />

Rally is very positive and the<br />

reasons are because it is not<br />

Formula One, it is real cars with<br />

real drivers in real locations.”<br />

The cars in the series are roadlegal<br />

and race on tracks which are<br />

more akin to everyday conditions<br />

than F1 circuits. That means<br />

manufacturers can legitimately<br />

use success in WRC to advertise<br />

the quality of the everyday vehicles<br />

they sell.<br />

These attributes are also<br />

attracting other companies to<br />

WRC. We will not go far away from<br />

last year’s very small operating loss<br />

for the next financial year and in<br />

the current climate that is a very<br />

significant advertisement for what<br />

we are doing,” says Duncanson.<br />

Motorsport’s governing body<br />

the Fédération <strong>International</strong>e de<br />

56 SportBusiness <strong>International</strong> • No. 152 • 12.09


MOTORSPORT:<br />

RALLY<br />

l’Automobile (FIA) seems satisfied<br />

with ISC’s trajectory since, in<br />

February this year, it was reappointed<br />

as global promoter of<br />

WRC until the end of 2020.<br />

“With our new powers as global<br />

promoter we now set the calendar.<br />

We’ve just signed a five year deal<br />

with Rally Finland and others will<br />

follow shortly,” says Duncanson.<br />

Freedom trail<br />

ISC has given promoters more<br />

creative freedom when it comes to<br />

the format of races.<br />

“We need to make more of<br />

a virtue of the sheer variety of<br />

experience and geographical reach<br />

which WRC can offer,” says Long.<br />

“By allowing organisers more<br />

flexibilty over the make-up of their<br />

event we anticipate being able to<br />

Ordinary cars... extraordinary action - Getty Images Sport<br />

connect with a wider landscape of<br />

communities, places and fans. The<br />

prospect of mixed surfaces will<br />

only add to the unpredictability and<br />

challenge which characterises the<br />

sport of rallying.”<br />

This particular opening up of<br />

the calendar may be something<br />

that the WRC has learned from<br />

its increasingly successful rival<br />

series, the Intercontinental Rally<br />

Challenge (IRC) which fans forums<br />

praise for its geographical range,<br />

varied calendar and roughly 50-50<br />

mix of asphalt and gravel rallies.<br />

For the IRC, 2009 certainly<br />

kicked off with a bang with the<br />

legendary Monte Carlo Rally, an<br />

emblematic event on the world<br />

sporting calendar and the most<br />

prestigious of all rallies. Monte-Carlo<br />

made the switch from the WRC to<br />

the IRC this year and will stay with<br />

IRC for 2<strong>01</strong>0, again providing a<br />

buzz to start the season.<br />

Since its inception in 2007, IRC<br />

has attracted a lot of attention not<br />

only from the public, but from rally<br />

promoters and car manufacturers<br />

(it now has seven on board).<br />

Manufacturers like the series,<br />

in part because of the number of<br />

rallies that are run per season (10<br />

in 2009 and 12 for 2<strong>01</strong>0) and in<br />

part because the series is less costly<br />

for them and for their drivers.<br />

Organisers like it because<br />

the IRC is less restrictive than<br />

the WRC and organisers,<br />

manufacturers and fans alike say<br />

the series retains the spirit of rally,<br />

harking back to what they perceive<br />

as the ‘good old days.’<br />

The 2009 IRC calendar<br />

continued the tried and trusted<br />

formula of combining well-known<br />

classic rallies with new events in<br />

emerging markets and next year<br />

will see new rallies in Argentina,<br />

Sardinia and Cyprus for the season<br />

finale. These geographical changes<br />

reflect the increasing prominence<br />

of the IRC in world motorsport<br />

after a successful and highly<br />

competitive 2009 season.<br />

For Geraldine Filiol, director<br />

general of Eurosport Events which<br />

created, owns and promotes the<br />

IRC, the series is a key plank of the<br />

company’s events portfolio.<br />

“We created the series because<br />

we saw a gap in the market, an<br />

opportunity to create a property to<br />

showcase and promote a number<br />

of rallies that were lacking in<br />

exposure. We created an umbrella<br />

brand and, through its promotion<br />

on Eurosport and elsewhere,<br />

we have healthy, growing,<br />

commercially successful and<br />

profitable series.”<br />

Next year will be season four<br />

for the IRC and it has grown to<br />

the point where Eurosport is now<br />

talking to potential title sponsors.<br />

Up until now, each individual rally<br />

promoter has had local sponsors,<br />

Filiol explains, but the series has<br />

not had a main partner.<br />

“We are now in a position where<br />

we are offering a mature, attractive<br />

property, with three seasons of<br />

growth and exposure behind it.”<br />

With Eurosport Events as<br />

its owner and promoter, a high<br />

quality of TV <strong>cover</strong>age and wide<br />

exposure were never in doubt. But<br />

2009 has seen a clear step change<br />

in innovation in terms of IRC<br />

broadcast and production.<br />

Broadcast innovation<br />

“We have the helicopter camera,<br />

the on-board cameras and this<br />

year we introduced live split times<br />

for each stage, as you would get<br />

in skiing. That means the viewer<br />

really has all the information to go<br />

with what they are seeing unfold.<br />

This year we have also produced<br />

more live <strong>cover</strong>age than ever<br />

before, with multiple stages<br />

<strong>cover</strong>ed live at three events in<br />

our calendar. Next year, five or six<br />

events will benefit from this live<br />

<strong>cover</strong>age of stages.”<br />

And the 2<strong>01</strong>0 Calendar will also<br />

see Eurosport providing a world<br />

premier with fully live <strong>cover</strong>age of<br />

all 14 stages of the Rally of Monte-<br />

Carlo, a feat so-far unprecedented<br />

in rally <strong>cover</strong>age.<br />

Filiol says that for Eurosport<br />

as promoters, the end game is to<br />

see IRC distributed worldwide via<br />

broadcast and online platforms,<br />

beyond Eurosport itself.<br />

This happens with another<br />

Eurosport property, the FIA WTCC.<br />

Filiol is confident that that scenario<br />

is not too far off.<br />

“In just three seasons, we have<br />

created a big buzz around our brand<br />

and around the series.<br />

“That has driven attendances<br />

and, of course, TV viewing and a<br />

wider exposure. It has really been a<br />

truly virtuous circle.”<br />

IRC viewing<br />

Year Events Total Reach (Different European viewers)<br />

2008 10 16.2 million<br />

2009 10 (so far this year) 25 million<br />

SportBusiness <strong>International</strong> • No.152 • 12.09 57


MOTORSPORT:<br />

NASCAR<br />

for fans, has been delayed.<br />

So has construction of new ticket<br />

and merchandise sales buildings.<br />

“We’re a small state with a small<br />

population and we need all the help<br />

we can get,” Dover Motorsports<br />

president Denis McGlynn said.<br />

“With the economy the way it is<br />

and the finance industry so slow<br />

to lend money, we’ve got to wait a<br />

little while. Maybe another year or<br />

two, but we’re going to do it.”<br />

HITTING THE NUMBERS<br />

Barry Wilner says the surge in popularity and revenues experienced by Nascar earlier<br />

in the decade has subsided and the tough economy has inflicted some damage. But<br />

the stock car series remains one of America’s top sports.<br />

IT HAS BEEN an awful year for the<br />

US auto industry, with bankruptcy<br />

filings, rising unemployment, weak<br />

sales and a distrust of General<br />

Motors, Ford and Chrysler among<br />

the American public.<br />

Some of that negativity has<br />

filtered over to Nascar, yet the<br />

series still keeps company with<br />

baseball, college and pro basketball<br />

and college football in the US<br />

sporting landscape. All chasing the<br />

NFL of course.<br />

But there have been some<br />

setbacks for Nascar and heading<br />

into 2<strong>01</strong>0, they are issues the sport<br />

is attempting to address.<br />

“We’re always looking at ways<br />

to lower costs for the teams related<br />

to travel and everything that that<br />

means,” Nascar chairman Brian<br />

France said, noting that more twoday<br />

weekends might be scheduled<br />

to save on expenses.<br />

“The schedule has already been<br />

announced. The testing policy is<br />

out. We saw some (changes), but it<br />

won’t be dramatic.<br />

“We have people in every<br />

division that understand everything<br />

from the team owners’ direct cost<br />

to the per-event cost and everything<br />

in between. We have quite a<br />

command of that.’’<br />

On the sponsorship side,<br />

Nascar has had to adjust to<br />

sponsor defections more often<br />

in the last two years than anyone<br />

would have projected. For 2<strong>01</strong>0,<br />

Richard Childress Racing has lost<br />

Jack Daniels, the famed bourbon<br />

distillery and a loyal participant<br />

in the sport for years. “While it is<br />

difficult for us to end our formal<br />

relationship with RCR, the current<br />

economic environment has<br />

compelled us to re-evaluate our<br />

spending, and we’ve concluded<br />

that other areas in the marketing<br />

mix require additional investment,”<br />

said Tim Rutledge, vice president<br />

and brand director for Jack Daniels.<br />

Investments on hold<br />

Petty, the most successful driver<br />

in stock car history and Nascar’s<br />

resident icon, searched long and<br />

hard for a partner who could keep<br />

his company afloat.<br />

RPM had not won since 1999,<br />

but when it merged with Gillett-<br />

Evernham Motorsports to begin<br />

2009, Petty’s group got star driver<br />

Kasey Kahne into one of its cars.<br />

Kahne won at Sonoma in the<br />

spring, then qualified for the Chase<br />

for the Sprint Cup, a first for any<br />

Petty-associated driver.<br />

But Chrysler’s deep financial<br />

problems plagued all of the RPM<br />

teams, with the Dodge brand<br />

offering less and less factory support<br />

throughout the season. Finally, in<br />

October, Petty agreed a merger with<br />

the Yates team for 2<strong>01</strong>0.<br />

Dodge though remains<br />

committed to the sport.<br />

Ralph Gilles, the new head<br />

of Dodge’s car brand, says the<br />

manufacturer will remain in<br />

Nascar because development and<br />

marketing of Dodge vehicles “still<br />

works’’ through its participation<br />

in Nascar.”<br />

Then there were the tracks.<br />

Even Nascar’s most popular<br />

track, Bristol Motor Speedway<br />

in Tennessee, had issues in the<br />

sponsorship area this year.<br />

“We had a lot of corporate<br />

sponsors actually cut their<br />

allocation because of the economy,<br />

so a lot of fans who had been<br />

wanting to come to our race<br />

for years but hadn’t been able<br />

to get tickets actually had that<br />

opportunity,” said BMS spokesman<br />

Kevin Triplett.<br />

“We’ve had to spend more in<br />

advertising than we ever have. We<br />

haven’t advertised Cup tickets in 13<br />

years. But we had to do that.”<br />

Darlington Raceway, which<br />

has a Cup race on Mother’s Day<br />

weekend in May, has already cut<br />

ticket prices on more than half<br />

of its seats for the Southern 500.<br />

Darlington executives surveyed<br />

customers and found that many<br />

planned to stay away because ticket<br />

costs were too high.<br />

“We’ve faced hardships before,”<br />

Darlington president Chris<br />

Browning said. “We always seem<br />

to be able to adjust. Hopefully,<br />

the whole country will adjust and<br />

move on.”<br />

Some racetracks have put<br />

upgrades, whether for fan comfort<br />

or racing considerations, or both,<br />

on hold.<br />

At Dover Downs, where the two<br />

Nascar weekends each year are the<br />

only significant sporting events<br />

held in Delaware, work on a new<br />

garage, including rooftop viewing<br />

On-site gambling<br />

One intriguing way for the tracks<br />

to enhance revenue streams could<br />

be through on-site gambling.<br />

Dover is considering it, with live<br />

gaming tables to go with slot<br />

machines that already exist.<br />

Nascar has yet to pass judgment<br />

on such a proposal, and McGlynn<br />

notes that Las Vegas is a regular<br />

stop on the circuit.<br />

Plus, Delaware has legalised<br />

sports betting on a limited basis.<br />

“I think the sports betting could<br />

have had the ability to draw new<br />

people into Nascar just to give<br />

them some other reason to watch,”<br />

McGlynn said.<br />

Not as many eyeballs are<br />

watching on TV, although no<br />

trends are certain because some<br />

races just before and early in the<br />

Chase saw increases in viewership.<br />

Nascar’s contracts with Fox,<br />

ESPN/ABC, Turner and SPEED<br />

have four more years to run and<br />

net $4.48 billion for the eight-year<br />

deals. That makes one area where<br />

stock car racing is in excellent<br />

shape, although make-goods to the<br />

broadcasters are possible should<br />

ratings slip excessively - something<br />

NBC has done in the past for lowrated<br />

Olympics.<br />

As for the folks in the stands,<br />

well, when you are still averaging<br />

six-figure crowds, how negative<br />

a slant can anyone place on your<br />

sport Yes, some tracks have<br />

struggled to fill up, particularly<br />

those outside racing hotbeds. But<br />

others venues remain touch tickets.<br />

“This year, obviously, everyone<br />

has seen changes in attendance,<br />

but we’re still averaging about<br />

110,000 fans per event,” said<br />

Nascar spokesman Ramsey Poston.<br />

“Two or three years ago, the<br />

average was closer to 120,000.<br />

“But given where we are in<br />

the country with the economy,<br />

we think this shows how strong<br />

Nascar is. To keep hitting those<br />

numbers is very reassuring.”<br />

58 SportBusiness <strong>International</strong> • No. 152 • 12.09


As one of motor racing’s top-3 and fastest growing events, the<br />

production bike series FIM Superbike World Championship (SBK)<br />

features the world‘s leading manufacturers Aprilia, BMW, Ducati,<br />

Honda, Kawasaki, Suzuki and Yamaha. It stages 13 rounds in<br />

12 countries, making it a truly global event with two billion TV<br />

contacts every year.<br />

SBK is arguably the most exciting form of motor sports offering a<br />

format of two races plus the FIM Supersport World Championship<br />

and its support classes.<br />

With superstars like Max Biaggi (ITA), Troy Corser (AUS), James<br />

Toseland (GBR) or Nori Haga (JAP) and fast newcomers including<br />

Max Neukirchner (GER), Jonathan Rea and Leon Haslam<br />

(both GBR), SBK is really a fantastic viewing. All Superbikes are<br />

competitively engineered to boost performance, with top speeds<br />

exceeding 300 km/h.<br />

As promoter of the FIM Superbike World Championship and<br />

partner of the Fédération <strong>International</strong>e de Motocyclisme (FIM),<br />

Infront Sports & Media exclusively holds all types of commercial<br />

rights to the FIM Superbike World Championship and provides<br />

clients with a top TV product, a first class sponsorship platform<br />

and high quality event services.<br />

Infront – Racing action at its best.


MOTORSPORT:<br />

MOTORCYCLING<br />

Rossi rides high - Getty Images Sport<br />

Both MotorGP and World<br />

Superbikes continue to<br />

defy the downturn with<br />

new TV deals and the<br />

addition of new sponsor<br />

partners. But is MotoGP,<br />

at least, basing too much<br />

of its value on its biggest<br />

star, Valentino Rossi<br />

By Richard Gillis.<br />

IN THE HECTIC HOURS after<br />

Valentino Rossi secured the 2009<br />

MotoGP World Championship<br />

in Malaysia, his fourth with the<br />

Yamaha Racing team and ninth<br />

overall, Lin Jarvis, the team’s<br />

managing director was hedging<br />

questions as to the future.<br />

It’s not news that Yamaha are<br />

desperate to keep him: “I don’t<br />

think I can convince Valentino to<br />

continue racing (after 2<strong>01</strong>0, when<br />

his contract runs out), that’s up to<br />

him, but I’ll certainly do my best to<br />

make sure he’s on a Yamaha if he<br />

does,” said Jarvis.<br />

Rossi is arguably the greatest<br />

ever, reaching the rarefied air<br />

occupied by that small group of<br />

stars for whom history can talk<br />

louder than money. Ahead of him<br />

is Giacomo de Agostini’s record of<br />

123 grand prix career wins, a mark<br />

that Rossi, who has amassed 102<br />

career victories, has admitted to<br />

‘thinking out loud about’.<br />

To keep their man, Yamaha are<br />

making a legacy play, with talk of<br />

a brand ambassador role and long<br />

term tie-ups: their hunch is that<br />

the Italian will sell bikes long after<br />

he’s stopped riding them.<br />

But Rossi’s future is not just an<br />

issue for the Japanese motorcycle<br />

industry. It holds the key to<br />

commercial future of the entire<br />

sport. “It’s hard to overstate how<br />

important Rossi is to motorbike<br />

racing,” says David Emmett,<br />

editor of motomatters.com, the<br />

influential website. “He’s a oncein-a-generation<br />

type, combining<br />

riding genius with real charisma.”<br />

When energy drinks brand<br />

Monster consolidated its move into<br />

motorsport, it was Rossi they chose<br />

as their Trojan horse, signing up a<br />

two year deal worth in the region<br />

of $3.2 million to the rider, plus an<br />

extra $650,000 for claiming this<br />

year’s MotoGP title.<br />

But Rossi’s retirement date,<br />

2<strong>01</strong>1 is mentioned regularly,<br />

For now at least, the sport<br />

continues to reap the benefit of<br />

his participation. In 2008, rights<br />

holders Dorna hired IMG to sell<br />

media rights outside the core<br />

markets of Italy, Spain and UK,<br />

which Dorna handles in-house.<br />

This led to a spate of TV deals<br />

in key markets, with free-to-air<br />

terrestrial a significant component<br />

of the strategy. In the UK, the BBC<br />

bought five years of MotoGP’s<br />

full inventory, including exclusive<br />

rights to show all races - 125cc,<br />

250cc and MotoGP itself, plus<br />

qualifying sessions.<br />

60 SportBusiness <strong>International</strong> • No. 152 • 12.09


MOTORSPORT:<br />

MOTORCYCLING<br />

Of these, only MotoGP races<br />

will be shown live on the BBC’s<br />

main free-to-air channels, with<br />

the rest shown on their interactive<br />

service and online. Additional<br />

<strong>cover</strong>age of MotoGP races will<br />

also be available on the hugely<br />

successful BBC iPlayer.<br />

Filling the gap<br />

In France, the AB Groupe and<br />

Eurosport France signed for<br />

three years 2<strong>01</strong>1, with the digitalterrestrial<br />

channel NT1 taking all<br />

18 MotoGP races while cablesatellite<br />

channel Eurosport France<br />

screening practice and qualifying<br />

sessions and all three races live<br />

on Sunday. Likewise, in Germany<br />

DSF committed to 170 hours of<br />

<strong>cover</strong>age per year.<br />

From a sponsorship point of<br />

view, MotoGP can also look back at<br />

the end of 2008-09 with at a roster<br />

of new partners. The credit crunch<br />

came at a time when motorsport<br />

was still weaning itself off tobacco<br />

money, and new categories of<br />

partner - betting, insurance,<br />

finance and most recently, energy<br />

drinks such as Monster - have<br />

helped fill the gap.<br />

But there does remain a gap,<br />

something Dorna Sports have<br />

never been afraid to acknowledge.<br />

Part of the answer may lie in cost<br />

cutting. But cost cutting is a trigger<br />

issue for MotoGP. Slash budgets to<br />

suit the new economic reality and<br />

the series runs the danger of losing<br />

its bleeding edge image, narrowing<br />

the gap between MotoGP and<br />

Superbikes, its perennial rival.<br />

The annual cost for a<br />

manufacturer team in MotoGP<br />

varies between 5 million and<br />

10 million per annum and<br />

beyond. The smaller, privately<br />

owned teams budget for up to<br />

2 million. For Superbikes, team<br />

costs are considerably lower due to<br />

harmonisation of parts and tyres,<br />

and the fact they race on-road bikes<br />

rather than prototypes.<br />

One obvious place where cost<br />

cuts may come in is in the riders’<br />

contracts. Along with Rossi,<br />

the front of the MotoGP grid is<br />

dominated by Jorge Lorenzo, Casey<br />

Stoner and Dani Pedrosa - all tied<br />

to multi-million Euro contracts.<br />

But from fifth place down - there<br />

is often twenty seconds between<br />

fourth and fifth place - the salary<br />

cuts might be deep.<br />

“The riders were paid crazy<br />

amounts,” says Herve Poncharal,<br />

team owner of the Monster Tech<br />

3 Yamaha team, who suggests the<br />

market, rather than legislators, will<br />

deal with the issue.<br />

The riders that are coming to<br />

the end of their contract in 2009,<br />

he says will see sharp falls in<br />

fees. ‘Apart from the Untouchables<br />

- it will be 50, 60, 70 per cent<br />

down. That will be a big, big<br />

saving. We always talk about the<br />

bike, but the riders department is<br />

sometimes bigger than the cost of<br />

the bike.”<br />

As Formula One has shown,<br />

with the Brawn GP team in<br />

particular leading the way,<br />

lowering costs means that the price<br />

demanded of sponsors for title<br />

partnerships, the key commercial<br />

revenue stream for most teams, is<br />

lowered, raising hopes of drawing<br />

a broader constituency of brands<br />

into the sport.<br />

This is something that should<br />

perhaps be the aim of both<br />

MotoGP and Superbikes.<br />

As ever, broadcast exposure<br />

will be critical in determining<br />

sponsor revenues and in October<br />

2009, Infront Motor Sports,<br />

the commercial rights owner of<br />

Superbikes, struck an important<br />

and wide ranging TV deal with<br />

Eurosport Group, which gave the<br />

pan-European broadcaster the<br />

TV and digital rights to the FIM<br />

Superbike World Championship<br />

(SBK) for the 2<strong>01</strong>0, 2<strong>01</strong>1 and 2<strong>01</strong>2<br />

seasons. The deal includes the<br />

support classes FIM Supersport<br />

World Championship and FIM<br />

Superstock 1000 Cup.<br />

This pan-European agreement<br />

includes all 59 territories <strong>cover</strong>ed<br />

by Eurosport which promises<br />

an increased number of live<br />

broadcasts and that 24 out of 26<br />

races will be shown live or delayed<br />

on either Eurosport or Eurosport 2.<br />

Superbkes - Getty Images Sport<br />

“We have not only signed a very<br />

significant TV agreement with<br />

Eurosport, but also secured<br />

additional media <strong>cover</strong>age across<br />

Europe and Asia during the last<br />

two years,” explains Stephan Herth,<br />

executive director of Summer<br />

Sports, Infront Sports and Media.<br />

“The sponsorship market has<br />

been slower, but is looking brighter<br />

for 2<strong>01</strong>0 although our targets for<br />

hospitality remain conservative.”<br />

Hospitality matters<br />

The hospitality side of the<br />

business, he says, is a real point of<br />

difference for Superbikes, allowing<br />

VIPs to get very close to the teams<br />

down in the pit. This informality is<br />

attractive, and broadens the appeal<br />

of the sponsorship.<br />

On the key difference between<br />

motorcycling’s top two series,<br />

Herth says. “MotoGP is more<br />

about R&D while Superbikes<br />

is about marketing for the<br />

manufacturers, that’s why all major<br />

brands are in the series, compared<br />

to say four of the manufacturers<br />

who remain in MotoGP. For the<br />

manufacturers, World Superbikes<br />

offers greater benefits in terms of<br />

a direct link between what fans see<br />

on TV and the type of bikes they<br />

can go and buy on the high street.<br />

“The great advantage we have<br />

is that we have seven major<br />

manufacturers in the series, which<br />

is a tangible sign that they see<br />

value in Superbikes.<br />

“For MotoGP, Rossi is very<br />

outstanding and the TV rights<br />

market responds quickly to<br />

personalities,” says Herth,<br />

“Without local heroes it makes<br />

the job of selling media rights<br />

more difficult. It is up to Dorna<br />

to find a new Rossi, and that is a<br />

formidable challenge.<br />

It certainly is and with the man<br />

himself, aged 29, stating, “I will<br />

ride until I’m 31 or 32 at most,”<br />

earlier this year, the curtain calls<br />

on the great rider’s career will be<br />

watched closely by a varied group<br />

of stakeholders, from fans and<br />

rival team members, through TV<br />

executives and sponsor directors<br />

through to the rights owners of<br />

both MotoGP and Superbike series.<br />

SportBusiness <strong>International</strong> • No.152 • 12.09 61


RIGHTS FOCUS:<br />

JUMP RACING<br />

JUMPING FOR<br />

SUCCESS<br />

The National Hunt horse racing season is in full swing, attracting large<br />

crowds and betting revenues. As Adrian Hill explains, British Jump racing<br />

is in rude health.<br />

BY ANY REASONABLE MEASURE the British<br />

Racing industry is at the forefront of the UK<br />

sporting and leisure markets, and the Jump<br />

racing sector plays a major part in that success<br />

story. The quality and breadth of the National<br />

Hunt scene in the British Isles is unrivalled<br />

anywhere else in the world.<br />

The Grand National and the Cheltenham<br />

Festival are renowned as two of the UK’s<br />

top sporting events, attracting extensive TV<br />

<strong>cover</strong>age. While 5.7 million spectators attended<br />

the 60 tracks operating in Britain in 2008, a<br />

figure second only to football among UK sports.<br />

Bearing in mind that the highlights of the<br />

National Hunt season occur during the winter<br />

and early spring months, a tally of two million<br />

people going through the gates to see steeple<br />

chasing is some achievement.<br />

According to the British Horseracing<br />

Authority’s Economic Impact report, UK<br />

racecourses produced revenue of £456 million<br />

in 2008 - a sum bettered only by football and<br />

£90 million more than the third-placed sport,<br />

rugby union.<br />

“I think British racing is in a pretty healthy<br />

state,” says Alan Switzer, director of the Sport<br />

Business group at Deloitte which produced the<br />

study. “Our report relies mostly on data from<br />

2008. Due to the recession, in some instances<br />

the figures might show peaks for some time. But<br />

attendances, the number of racehorse owners<br />

and media <strong>cover</strong>age are all in a healthy state.<br />

Crowds in 2009, up until the end of September,<br />

were marginally up too.”<br />

The report also reveals that the UK<br />

government was handed £325 million in tax<br />

income from British racing and its role as a<br />

very significant employer. Only a handful of<br />

British rugby stadia could accommodate the<br />

18,600 working full-time within the core racing<br />

industry, while if those who earn a living from<br />

related fields, such as betting, are included<br />

even Twickenham would not be big enough. An<br />

estimated 100,000 people directly or indirectly<br />

look to racing for their livelihoods. Success<br />

comes from investment and £706 million<br />

worth of capital resources were spent on the<br />

racecourses from 2004 to 2008. This added<br />

to the annual £400 million that the 50,000<br />

racehorse owners contribute, a significant<br />

proportion of which is inbound from major<br />

overseas benefactors.<br />

The effect of the recession has made the<br />

loyal band of owners dwindle slightly. Racing<br />

is an expensive sport, although unlike its Flat<br />

counterpart, Jump racing at the highest level,<br />

is not the sole playground of the extravagantly<br />

wealthy. Switzer reports that owners are feeling<br />

the pinch.<br />

“The number of owners has gone down this<br />

year, but has by no means fallen off the cliff.<br />

Where we have seen a marked decline is in<br />

bloodstock, the buying and selling of horses.<br />

However, the big yearling sales in October held up<br />

reasonably well, thanks to the support of wealthy<br />

benefactors such as the Maktoum family.”<br />

Affluent patriarchs<br />

The seriously affluent racing patriarchs tend to<br />

concentrate on the Flat, where the long-term<br />

bounty available from the breeding of champion<br />

racehorses dwarfs prize money. A top-class<br />

stallion earns a five-figure stud fee, with recently<br />

retired Derby and Prix de l’Arc de Triomphe<br />

hero Sea The Stars expected to attract nearly<br />

£100,000 every time he is matched with a mare.<br />

The practice of gelding top-class National<br />

Hunt performers means that avenue is not<br />

open to its owners and a major attraction<br />

of the winter sport is the continuity<br />

provided by its top horses returning<br />

season after season. Followers identify<br />

with them and there is a clear structure<br />

to the campaign, with Cheltenham and<br />

Aintree providing a rousing climax.<br />

Take the two superstars of the respective<br />

racing codes in Europe this year. Sea The Stars<br />

has been packed off to stud after a career of only<br />

two years while Cheltenham Gold Cup winner<br />

Kauto Star aims to retain his crown next March<br />

to round off a sixth campaign in the UK, having<br />

previously raced in France.<br />

“It’s a fantastic storyline for broadcasters<br />

and the public at large,” says Peter McNeile,<br />

Cheltenham’s sponsorship director. “If Channel<br />

4 were to ever lose the Festival, their interest<br />

in racing would probably wane. If a horse wins<br />

a race in December there is always talk about<br />

which race at the festival it is being aimed at - it<br />

engages the occasional viewer.”<br />

Cheltenham - Getty Images Sport<br />

62 SportBusiness <strong>International</strong> • No. 152 • 12.09


Thanks to Channel 4, whose racing output is<br />

paid for by the sport to the tune of £3 milion per<br />

year, Jump racing has two hours of terrestrial<br />

broadcasting time every Saturday during the<br />

winter, a regular audience of 1m viewers<br />

each week. Add in nearly 15.7 million<br />

watching the BBC’s <strong>cover</strong>age of the Grand<br />

National meeting and the cumulative reach<br />

for Jumping each year is in excess of 46<br />

million viewers.<br />

In addition to that, Racing UK (Sky 432, Virgin<br />

536, Corus ntl 411) broadcasts more than 650 live<br />

flat and jump meetings a year, with commentary,<br />

debate and tipping from 30 of the UK’s top<br />

racecourses. The specialist channel is indicative<br />

of the enduring appeal of horse racing. Despite<br />

reverting to independent status following the<br />

departure of Pay TV partner, Setanta, from the UK<br />

in May, it now boasts more than 38,000 residential<br />

subscribers, 5,000 more than it had as a standalone<br />

channel pre-Setanta.<br />

During a recession, racing more than ever<br />

needs the stimulus that the characters of the<br />

jumping game provide. The Levy (the sport’s<br />

revenue from betting) has fallen, due in large<br />

UK Racecourse Revenues<br />

2005<br />

£m<br />

2008<br />

£m<br />

Admissions 98 120<br />

Catering (raceday) 80 100<br />

On-course betting 11 9<br />

Media 42 57<br />

Sponsorship 16 20<br />

Other commercial 51 61<br />

Levy distributions 89 89<br />

Total revenue 387 456<br />

Source: BHA; Racecourse financial statements and BHA<br />

returns; Deloitte estimates.<br />

part to external influences at work, which<br />

Switzer believes need to be challenged. “It’s<br />

down to three factors,” Switzer explains. “Firstly,<br />

there has been an increase in online offshore<br />

betting operators (who are not compelled to<br />

contribute to the Levy). Secondly, there’s the<br />

so-called `high roller effect` - the large punters<br />

who have not been participating as much as in<br />

previous years - and lastly the underlying general<br />

decline in betting.<br />

“Racing really needs to address this, perhaps<br />

by creating new bets where punters do not<br />

require a great knowledge of the sport but gives<br />

the prospect of a low stake-high return.<br />

“The on-course Tote has suffered due to a<br />

fall in the level of average stake, rather than the<br />

number of bets made. People are still going<br />

racing; they are just putting less money on per<br />

bet. Corporate hospitality is down by 20-25%, as<br />

has happened with other sports. Companies are<br />

being more cautious about being seen to make<br />

this kind of spend these days.”<br />

Corporate sales<br />

Racing is certainly not alone in seeing a<br />

downturn in corporate sales, but it is only one<br />

of the instruments racecourses use to generate<br />

their impressive revenue streams. Admissions,<br />

catering, broadcasting, advertising and betting<br />

all add to the pot and the average day’s racing<br />

offers half-a-dozen gilt-edged opportunities<br />

SportBusiness <strong>International</strong> • No.152 • 12.09 63


RIGHTS FOCUS:<br />

JUMP RACING<br />

for sponsors to put their names against races,<br />

earning local <strong>cover</strong>age but also national and<br />

international visibility through the vast network<br />

of betting shops and the web and print media.<br />

The majority of racing’s backers are in related<br />

fields but the sport in anxious to widen its net.<br />

“My nirvana is to have sponsors for most<br />

of our races who are not directly connected<br />

with racing,” McNeile confirms. “It’s great to<br />

have the bookmakers and others in the racing<br />

industry, but they don’t always have to be the<br />

lead partner. We need to garner sponsors from<br />

other walks of life. They will open doors for new<br />

opportunities for sale.<br />

“Our relationship with Ryanair (sponsor of a<br />

top race at the festival) is an example.<br />

Selling bundles<br />

“I often sell bundles of races to a sponsor, races<br />

that are not necessarily held at Cheltenham or<br />

other Jockey Club racecourses - so it benefits the<br />

sport at large. The Pertemps series has one race<br />

in Ireland, four in France and two outside of the<br />

Jockey Club Racecourses group.”<br />

Another example of that strategy is the<br />

Jewson Novices Hurdle Series - 16 races across<br />

6 months, which impresses the Jewson brand<br />

on the racing audience through newspaper and<br />

television. UK Jump racing’s wide geographical<br />

spread; with courses as far apart as Perth and<br />

Newton Abbot and Bangor and Folkestone, offers<br />

companies backing such series a chance to easily<br />

reach customers in a variety of locations.<br />

There are also options beyond event activity.<br />

“Obviously, the advertising and sponsorship<br />

market has been turbulent over the past year,”<br />

says Racing UK commercial director Nick<br />

Mills. “Overall we are very pleased with our<br />

retention. We have a very defined audience –<br />

predominantly male, 35-65, ABC1 – and our<br />

partners see clear benefits in maintaining open<br />

communication, regardless of the recession. We<br />

are also starting to see momentum in the market<br />

again, which is a reassuring sign.”<br />

A criticism of racing is that its public profile<br />

is all about a select few races in the calendar. The<br />

sport in the UK is slowly recognising this, with the<br />

Racing for Change initiative putting a particular<br />

focus on the complex web of Flat fixtures that is<br />

impenetrable to all but regular fans.<br />

Jump racing’s focus on the Cheltenham<br />

festival and Aintree’s Grand National meeting<br />

provides it with a better structure but efforts<br />

have been made to strengthen the ‘undercard’<br />

events - valuable race days that signpost towards<br />

the end-of -eason championship races.<br />

Cheltenham has made a push to promote its<br />

November `Open` meeting, which marks the<br />

start of a sequence of big occasions leading up<br />

to Christmas at Kempton Park - the traditional<br />

mid-season bookmark that incorporates the<br />

valuable King George VI Chase on Boxing Day.<br />

The narrative of talented horses building their<br />

campaigns to peak in the spring is clearly laid<br />

out. McNeile is keen to put further exclamation<br />

marks against the key events.<br />

Cheltenham Statistics 2002-7 (millions)<br />

“As a racecourse operator, the best way to make<br />

money is to stage a fixture,” McNeile adds. “We<br />

get money from the Levy board, so there’s not<br />

the need to get people through the door. The<br />

bread and butter fixtures during the week are<br />

really betting shop products with a localised<br />

market. The big events need to be given that<br />

‘wow!’ factor, making it a social occasion.<br />

“If you have a quality product people will<br />

tend to oscillate towards it. Our job is to<br />

make as many of the best events as we can<br />

and encourage everyone to enjoy the sport by<br />

watching it close up.<br />

Watching on TV is great but there’s nothing<br />

like seeing what these guys go through - it’s a<br />

very exciting experience.”<br />

Up against the present tough economic<br />

background, marketing becomes all the more<br />

important. However, it doesn’t matter how slick<br />

the promotion if there isn’t the raw material to<br />

engage the punters. McNeile’s biggest concern<br />

comes down to brass tacks - quality competition<br />

on the track.<br />

“The biggest challenge feeding through this<br />

recession is the number of horses in training<br />

and how that impacts on the number of<br />

fixtures,” he says. “Animals may not be replaced<br />

as they reach the end of their careers, and that<br />

would feed down the food chain. When the<br />

economy picks up people may come back into<br />

the sport but there may not be the quality of<br />

animals to buy, and that would cause inflation in<br />

the value of bloodstock.<br />

“At Cheltenham we have a concern about<br />

what is happening in Ireland. The `Celtic Tiger`<br />

has caught a cold in a bad way. All-bar-one of our<br />

Festival sponsors have renewed but it makes us<br />

more vulnerable than other courses.<br />

However, it looks likely that more Irish horses<br />

will come over here to race, as the prize money<br />

in Ireland has taken a severe hit. People are<br />

saying they may as well come to the UK - the<br />

money may at least pay for the boat across the<br />

2002 2003 2004 2005 2006 2007<br />

Prize Money 4,038 4,072 4,268 4,662 4,675 5,613<br />

Race Sponsorship 1,452 1,295 1,495 1,928 2,204 2,7<strong>01</strong><br />

Source: Jump Racing Focus 2009-2<strong>01</strong>0 edition<br />

Jump racing...never a smooth ride - Getty Images Sport<br />

Irish Sea.” Cheltenham is synonymous with the<br />

Irish invasion. - it just wouldn’t be what is without<br />

them - but there’s no resting on laurels at the<br />

UK’s premier Jump racing track.<br />

The industry’s Jump Racing Focus report,<br />

issued last month, states that National Hunt<br />

appeals to `virtually the entire age and sociodemographic<br />

profile of the UK at large` but it’s the<br />

young audience that needs to be strengthened.<br />

The Flat has chased the youth pound with<br />

top musical artists performing after racing, on<br />

hoped- for blissful sunlit summer evenings.<br />

Such schemes have transformed run-of-the-mill<br />

race days into events.<br />

The dark winter days seen in Britain are not<br />

conducive to such outdoor entertainment, but<br />

there are other ways to lure twenty-somethings<br />

into the enclosures.<br />

“Our core audience may be 35-55, but at the<br />

big events there is a significant 20-30 presence,”<br />

McNeile claims.<br />

“We went through a focus group exercise a<br />

few years ago which led to us to re-brand our<br />

junior tickets as 18-24. The research told us that<br />

this group is motivated to come racing but also<br />

wants it to be a big occasion.<br />

Thrilling proposition<br />

“Where we start and finish, and what makes us<br />

attractive to the younger audience, is the quality<br />

of the sport and our heritage. But we widen the<br />

experience for them with our retailing, with a<br />

vast array of shops on course,” said McNeile.<br />

The spirit of Jump racing is literally the<br />

thrill of the chase, the edge of the seat drama<br />

as mighty animals launch themselves over<br />

fearsome obstacles with the bravest of the brave<br />

- the jockeys - risking serious injury every time<br />

they saddle up.<br />

It’s always been a staple of the British winter<br />

and, in turbulent times, is more than holding its<br />

own. However, it must move with the times to<br />

maintain its position in the sporting firmament.<br />

64 SportBusiness <strong>International</strong> • No. 152 • 12.09


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T: +44 (0) 207 954 3484<br />

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INTERNATIONAL FOCUS<br />

MIDDLE EAST<br />

66 SportBusiness <strong>International</strong> • No. 152 • 12.09


INTERNATIONAL FOCUS<br />

MIDDLE EAST<br />

STRATEGY BEHIND THE SPEND<br />

Matthew Glendinning looks at the broader economic and strategic aims behind<br />

the spectacular event hosting success of the Gulf states.<br />

THE SPORTS INDUSTRY may occasionally<br />

feel like it rules the universe, especially when<br />

bankers are having a bad day. But the sheer scale<br />

of the global tourism industry puts even the<br />

sports sector in the shade.<br />

The United Nations states that sport accounts<br />

for as much as three per cent of global economic<br />

activity. Impressive enough, but the UN’s World<br />

Tourism Organisation estimates that tourism<br />

makes up 10 per cent of world GDP.<br />

Small wonder that the new country or city<br />

entrants to sports event hosting in the Middle<br />

East see the promotion of tourism as a major<br />

part of their brief.<br />

At the tourism industry trade show ‘World<br />

Travel Market’, staged at London’s Excel<br />

Centre in November, those UN numbers were<br />

supported by the thousands [50,000 attended in<br />

2008] of delegates swarming the eye-catching<br />

exhibition stands.<br />

In the Middle East section, a falconer in<br />

traditional Arab dress held out a hooded bird on<br />

a gloved arm to intrigue passers-by in front of<br />

the Egypt stand. The Abu Dhabi desk next door,<br />

staffed, admittedly, by three London girls in<br />

flowing golden robes, was located in front of an<br />

artificial waterfall.<br />

On the first floor of Abu Dhabi’s mobile<br />

exhibition unit - the one with the waterfall -<br />

SportBusiness caught up with Ahmed Hussein,<br />

who heads up sports and events marketing for<br />

the Abu Dhabi Tourism Authority (ADTA).<br />

It had been a good few weeks for the<br />

marketer. Yas Island, the $40 billion leisure and<br />

entertainment development containing the Yas<br />

Marina F1 track, had just been selected as the<br />

‘World’s Leading Tourism Development Project’<br />

by the World Travel Awards, the so-called travel<br />

industry ‘Oscars’.<br />

Yas Marina itself had won rave reviews for the<br />

inaugural Abu Dhabi Grand Prix, not least from<br />

Bernie Ecclestone who hailed the track as the<br />

best ever. “What they’ve done is unbelievable,”<br />

said F1’s impresario.<br />

In a month when the UK government<br />

baulked at a request of £5 million funding for<br />

the England 2<strong>01</strong>8 <strong>FIFA</strong> World Cup bid, the<br />

Emirate’s spending of a minimum $400m on<br />

Yas Marina seems from another world.<br />

But there are sound strategic reasons for the<br />

outlay, Hussein explains. “A world-class event<br />

like the F1 Grand Prix was always top of our wish<br />

list and with the right timing and hard work we<br />

have been able to make it happen, “he said.<br />

“The [F1] strategy comes from the<br />

government, which always backs initiatives for<br />

cultural heritage, economic diversity and so on.<br />

“Awareness [of Abu Dhabi] is one of the<br />

priorities and although an F1 Grand Prix sounds<br />

like a one-off, from this kind of activity we can plan<br />

a whole year of intentional motorsports events.<br />

“Before the F1 event, for example, we had three<br />

support races which provide the right seeds to start<br />

promoting the track and motor sports in general:<br />

the Chevrolet V8 Supercar Championship, the<br />

Porsche Supercup and GP2 Asia.<br />

“From F1 to production car racing, to more<br />

training and track days, we’re growing a new<br />

business very fast and in a couple of year’s time<br />

you will see a lot more events here.”<br />

While the event owner, Abu Dhabi<br />

Motorsports Management, a joint venture<br />

between the Government of Abu Dhabi and<br />

ALDAR Properties, has yet to measure the<br />

economic impact of the race, Hussein adds that<br />

“the feedback from normal public access the<br />

feedback from clippings from media and so<br />

on has been amazing. There was a lot of work<br />

done before and a there’s a lot of echo to come -<br />

harvesting the results after the race.”<br />

Ferrari World<br />

Then, of course there is Ferrari World, the<br />

Ferrari-branded theme park on Yas Island,<br />

which is set to open next year. “It’s a one of a<br />

kind,” says Hussein.<br />

“We will create a theme park around<br />

motorsport and Ferrari especially. After football,<br />

motor sport is a priority in Abu Dhabi and F1<br />

provides an opportunity for the industry to grow.<br />

It’s a good start for motor sport in Abu Dhabi.”<br />

If this understatement highlights the almost<br />

fantasy quality of the Emirate’s ambitions, the<br />

Gulf states in general are nevertheless shrewd<br />

operators in the sports industry with an eye on<br />

the big picture.<br />

“To compete in [the wider] economic sense,<br />

we need these kind of activates as a catalyst to<br />

build more infrastructure for better growth,”<br />

says Hussein.<br />

Coming up on the event radar, there is the<br />

<strong>FIFA</strong> Club World Club, hosted by Abu Dhabi at<br />

two venues, which have been upgraded for the<br />

event, the Mohammed Bin Zayed Stadium and<br />

the Zayed Sports City.<br />

Having hosted the AFC Asian Cup in 1996<br />

and with plans for future events in the pipeline,<br />

showcase football is also part of the overall<br />

strategy. “On the tourism side, we leverage on<br />

these kind of events which relate to the Abu<br />

Dhabi government’s strategy and we have a lot<br />

of big plans to get more of them,” says Hussein.<br />

But it’s not just motorsport and football. The<br />

Emirate’s major golf event, the Abu Dhabi Golf<br />

Championship, leads off the so-called ‘Desert<br />

Swing’ series at the start of the year en route to<br />

Doha and Dubai.<br />

So how does Abu Dhabi differentiate this<br />

event from those of its ambitious neighbours<br />

“Being in Abu Dhabi is the point of difference,”<br />

says Hussein bluntly.<br />

“There’s a different feeling here and without<br />

comparing, we complement the region. It’s a<br />

very healthy environment and we would wish<br />

to have a fourth or fifth big tournament held in<br />

the Gulf.<br />

“The golf events are more prestigious, more<br />

B2B, with more government involvement and<br />

stakeholder engagement over four wonderful<br />

days in Abu Dhabi and 12 days in the region.”<br />

As for the longer term, the strategy will be to<br />

keep looking at world class events and building<br />

up infrastructure, perhaps with the intention of<br />

bidding for the Olympic Games, as Qatar did for<br />

the 2<strong>01</strong>6 Games.<br />

But the Abu Dhabi Sports Council is also<br />

pursuing other avenues -creating events of its<br />

own like the Abu Dhabi Adventure Challenge<br />

and Abu Dhabi Triathlon, events that are not<br />

shared with any governing body or organisation.<br />

The Abu Dhabi Adventure Challenge, for<br />

example, is a multi-sports race for teams of four,<br />

who race over six consecutive days across six<br />

disciplines: sea kayaking, cross orienteering,<br />

mountain biking, adventure running and rope<br />

activities (e.g. abseiling).<br />

The aim, says Hussein, is to spread<br />

awareness of the Emirate’s natural assets, from<br />

its water frontage and islands, to its sand dunes<br />

and mountains. This year, he adds, the race will<br />

attract 47 teams, up from 36 last year, and 25<br />

nationalities, up from 11 last year.<br />

Given the marketing savviness of the<br />

interviewee, it seemed reasonable to ask one<br />

more question about Abu Dhabi as a sports<br />

destination. What does the national brand<br />

represent The response was immediate.<br />

“Respect: our brand essence is respect, you will<br />

find more than 180 nationalities with us, and for<br />

visitors, locals, people of any ethnicity or religion,<br />

it’s about respect. It’s our main message.”<br />

Coherent, strategic and high-spending,<br />

western commentators are now anything but<br />

dismissive of the Middle East sports programme,<br />

in general, and Abu Dhabi’s F1, in particular.<br />

SportBusiness <strong>International</strong> • No.152 • 12.09 67


INTERNATIONAL FOCUS<br />

MIDDLE EAST<br />

Alan Switzer, director in the Sports Business<br />

Group at Deloitte, is one analyst who believes<br />

the trend could be a win-win for both the region<br />

and sporting organistions.<br />

“In recent years, emerging nations and<br />

particularly those in the Gulf region have sought<br />

to use sport as a way to raise the profile of<br />

their city, country or region. There is no more<br />

prestigious global sporting event that a country<br />

can host over a single weekend than a Formula 1<br />

Grand Prix,” says Switzer.<br />

“Staging a Grand Prix brings many visitors to<br />

a region, both individual tourists drawn by the<br />

race and commercial visitors from race teams,<br />

sponsors or other partners.<br />

This provides a direct opportunity to<br />

showcase what a country has to offer. Television<br />

<strong>cover</strong>age of the race brings an indirect<br />

opportunity and the Middle East is well placed to<br />

maximise exposure in prime European markets<br />

with the race starting at 5 pm local time, or 1pm<br />

in the UK.”<br />

Looking forward, Switzer is confident the<br />

investement story will run and run. “The trend<br />

for international sporting events taking place in<br />

emerging nations is here to stay, and may even<br />

increase. Sport is being used as a way to market<br />

the hosts to potential new investors or tourists<br />

while bringing new audiences to the sports.”<br />

Giving credit where its due, however, it was<br />

the UAE neighbour Dubai which instigated the<br />

sport tourism revolution in the Gulf with events<br />

like Dubai Duty Free tennis, which is now 17<br />

years old. It has grown up to become an ATP<br />

World Tour 500 series event. Dubai will also<br />

host next year’s SportAccord Convention.<br />

New ground<br />

And Dubai continues to break new ground<br />

with the building of Dubai Sports City, which<br />

includes a 60,000 capacity outdoor stadium, a<br />

25,000 capacity cricket stadium, a 10,000-seat<br />

indoor arena and a 5,000-seat hockey stadium,<br />

all coming on stream within the current<br />

Olympic cycle.<br />

In addition, the multi-billion dollar 60,000<br />

capacity Meydan Racecourse in Dubai is set to<br />

open in 2<strong>01</strong>0 and promises to boast the best<br />

facilities of any racecourse in the world. It will<br />

stage the richest race in the world, the Dubai<br />

World Cup.<br />

Dubai is also hosting the PGA European<br />

Tour’s season-ending World Championship,<br />

while another prestige event for the sports<br />

industry, the annual SportAccord Convention<br />

will be hosted in Dubai next April - the first time<br />

the event has been hosted in the Middle East.<br />

Over 1,500 leading representatives of<br />

international sport, including IOC president<br />

Jacques Rogge, the IOC executive board and<br />

over 100 international sports federations will<br />

gather at the Atlantis resort, host venue for<br />

the event. As Mattar Al Tayer, VC of the Dubai<br />

Sports Council, enthuses, “This is a wonderful<br />

opportunity for Dubai to welcome our existing<br />

sporting partners as well as to showcase, to<br />

new audiences, our advantages as a sporting<br />

community and host location.” But if Dubai has<br />

already made its name as an event and tourist<br />

destination, it’s the small gas-rich peninsula<br />

state of Qatar which continues to astonish with<br />

the scale of its event hosting ambitions.<br />

Although Doha failed to make the<br />

Candidate city cut for its Olympic 2<strong>01</strong>6 bid,<br />

Qatar is bidding with renewed energy for the<br />

right to host the <strong>FIFA</strong> World Cup in 2022.<br />

Doha’s staging of the Brazil versus England<br />

international friendly football match in<br />

November is just one of the initiatives seized<br />

upon to boost the campaign message.<br />

According to Professor Simon Chadwick, a<br />

consultant to sport businesses on the economic<br />

and commercial impact of sporting mega-events,<br />

Qatar’s major event strategy embraces tourism<br />

and economic development but also addresses a<br />

number of national development goals.<br />

“Qatar is getting it right: top-level support,<br />

a coherent national strategy, recognising the<br />

multiple roles that sport fulfils, investing<br />

appropriately, promoting a sporting culture - all<br />

are important in working towards the success of<br />

sport in its broadest terms,” he says.<br />

Indeed, Professor Chadwick argues that the<br />

Middle East is leading the way in terms of a new<br />

integrated sports strategy paradigm, which the<br />

world can learn from.<br />

“Given what I perceive to be a 21st century<br />

global mega-shift eastwards in the world’s<br />

sporting power base, I think the west has to<br />

pay much much more attention to Asian sport<br />

and can, indeed, learn a great deal from the<br />

integrated strategic models of sport now being<br />

implemented across the Middle East,” he says.<br />

“What is required of nations is for them to<br />

integrate the multiplicity of roles that sport<br />

fulfils. To do this requires national political<br />

intervention; this doesn’t mean state-run sport;<br />

it does mean that governments have to stimulate<br />

the creation of an environment … where the<br />

social, economic, cultural, education and health<br />

roles of sport co-exist and mutually strengthen<br />

one another.”<br />

Within this context, he would even advocate<br />

that Qatar tries again for the Olympic Games, as<br />

well as the 2022 World Cup. “I think it [Qatar]<br />

would bring an expertise and a competence,<br />

The England v Brazil friendly in Doha, a campaign coup for the Qatar 2022 bid - Getty Images Sport<br />

as well as a level of investment that would add<br />

a significant new dimension to the industrial<br />

architecture of world sport.<br />

Broad strategy<br />

“I particularly liked the way in which Qatar<br />

had considered how staging the Olympic<br />

Games would contribute to the nation’s broader<br />

strategic objectives.<br />

“In my view, if sport is not to lose its way,<br />

it has to demonstrate that it has a clear and<br />

tangible role to play in the 21st century.”<br />

The speed with which these Gulf states are<br />

turning theory into practice by hosting major<br />

events may be the most difficult for westerners<br />

to comprehend.<br />

The Sony Ericsson Championships, the<br />

season-ending tournament of the WTA Tour, for<br />

example, was successfully held in Qatar for the<br />

second time this year.<br />

In another move more explicitly about<br />

promotion of the country, in October, Qatar<br />

sponsored flat racing’s prestige Qatar Prix de<br />

L’Arc de Triomphe for the second year, a race<br />

won by the phenomenal ‘Sea The Stars’, a result<br />

which also worked wonders for the sponsorship<br />

in terms of international media profile.<br />

Of course, should Qatar or one of the other<br />

Gulf states succeed in a bid for one of the global<br />

mega events that would further increase the<br />

region’s sphere of influence.<br />

But even if they do not, in the medium term,<br />

no one can doubt that then Middle East model<br />

of a state-sponsored sports strategy aligned to<br />

tourism and economic diversity, but also nationbuilding,<br />

health, education and many other<br />

benefits, is here to stay.<br />

“I am not sure that westerners, in particular,<br />

know what is happening in the Middle East,”<br />

Chadwick concludes.<br />

“Indeed, when people here in the UK discuss<br />

Asian sport, they instinctively refer to China,<br />

then India and often don’t consider what is<br />

happening in places like Qatar.<br />

“But patience and perseverance will<br />

ultimately yield the desired outcome [for the<br />

Gulf states]. The strategic intent is there, the<br />

investment is there, and the justification for<br />

wanting to do it is there.”<br />

68 SportBusiness <strong>International</strong> • No. 152 • 12.09


SIR CRAIG REEDIE<br />

IOC EXECUTIVE BOARD<br />

MEMBER<br />

THE SPORTBUSINESS DEBATE<br />

“Golf was the last great, international<br />

game not to be in the Olympics. It is<br />

set to become a significant part of the<br />

Games and that will give a particular<br />

boost to women’s golf.”<br />

“Which incidents, decisions and<br />

developments have had the<br />

greatest impact on the business<br />

of sport during 2009 and how will<br />

they influence the future”<br />

THE DECISION TO AWARD the 2<strong>01</strong>6 Games to<br />

Rio means that Brazil will now hold the world’s<br />

two biggest sporting events - the Olympic Games<br />

and <strong>FIFA</strong> World Cup - in quick succession. That<br />

is real evidence of the country’s emergence from<br />

Third World status and of the way that our world<br />

is changing.<br />

Elsewhere the World Swimming<br />

Championships in Rome provided evidence of a<br />

governing body facing up to a major issue and<br />

making the right decision.<br />

For some time swimming has been dogged<br />

by issues around swimwear. As with any sport,<br />

the difference between success and failure can<br />

be measured in millimetres and thousandths of<br />

seconds and swimming was, to an extent being<br />

determined by swimwear technicians and fabric<br />

developers as well as athletes.<br />

This is one of the world’s great natural sports<br />

and I am delighted that FINA has decided to take<br />

steps to return it to its natural state.<br />

The World Athletics championships in Berlin<br />

provided a fantastic showcase for the phenomenal<br />

talents of Usain Bolt whose exploits on the track<br />

has surely helped to move the sport of athletics<br />

forward. The event itself was very TV friendly.<br />

It looked distinctive and, of course, it helps<br />

when the home team does well. But it was two<br />

magic moments from Bolt which defined the<br />

athletics year and will do so much for the sport.<br />

I am pleased that the IOC completed its journey<br />

from Singapore to Copenhagen by adding two<br />

sports to the programme to replace those lost.<br />

I think golf was the last great international<br />

game not to be in the Olympic programme and<br />

its inclusion will be of an enormous benefit to<br />

the sport. It is set to become a significant part of<br />

the Games and that will give a particular boost to<br />

women’s golf.<br />

Likewise, the inclusion of Rugby Sevens<br />

will help the development of the rugby code<br />

worldwide. The 15-a-side game would be<br />

impossible to accommodate during an Olympic<br />

Games but Sevens will provide a global platform<br />

for some of the emerging rugby nations such as<br />

Kenya, to show what they can do.<br />

On the face of it, 2009 may not go down as a classic sporting year. Of course<br />

there were many, many highlights among the hardy perennials which<br />

decorate the sporting landscape, but it was a year which lacked either of the<br />

two sporting mega-events, the Olympic Games or <strong>FIFA</strong> World Cup.<br />

Yet 2009 remained an important year for sport in many other ways. It<br />

was a year which saw sport breaking new ground in key areas and one<br />

which saw the potential revival of an elemental sporting discipline which<br />

has been too long in the doldrums.<br />

This will go down as a year in which the geography of sport continued to<br />

change. The shock elimination of Chicago in the first round of voting for<br />

the host city of the 2<strong>01</strong>6 Olympic Games sent out a signal that nothing<br />

would ever be the same again.<br />

American influence appears to be on the wane within the Olympic<br />

Movement while that of emerging nations continues to grow. That Rio won<br />

and will be the first South American host of the Greatest Show may be seen<br />

as evidence of a New World Order.<br />

That view is given further credence by the energy and enthusiasm being<br />

demonstrated by the State of Qatar in the sports sector. The tiny but hugely<br />

wealthy Gulf State is busy with an ambitious but ultimately credible bid to<br />

host the 2022 <strong>FIFA</strong> World Cup while news of a bid for the 2020 Olympic<br />

Games has also emerged.<br />

Were the IOC to adopt a more relaxed policy to the timing window for<br />

the Games, the door would be open to serious bids not only from Qatar but<br />

also from the other Gulf States whose stupendously hot summers would<br />

otherwise preclude them.<br />

The IOC also voted to include Golf in the Games, a move which brought<br />

an instant response in China which has embarked on a massive talent<br />

development and course building programme. Anybody prepared to bet on<br />

the next golfing megastar being from China rather than the US<br />

And then there’s athletics. In Berlin this summer, Usain Bolt put on a<br />

one man show which rolled back the years for a sport that had been in the<br />

doldrums. Bolt has helped breathe fresh life into the sport at the right time.<br />

With the new Diamond league set to debut in 2<strong>01</strong>0, track and field may be<br />

on its way back to sport’s top table.<br />

Each of these events and decisions ultimately had an impact on the<br />

business of sport and the opportunities and challenges it faced this year. We<br />

asked our experts for their personal points of view.<br />

70 SportBusiness <strong>International</strong> • No. 152 • 12.09


PETER HUTTON<br />

CHIEF OPERATING<br />

OFFICER, TAJ TV<br />

PAUL SAMUELS<br />

EXECUTIVE DIRECTOR,<br />

AEG SPONSORSHIP<br />

KEVIN ROBERTS<br />

EDITORIAL DIRECTOR,<br />

SPORTBUSINESS GROUP<br />

“The new format [Twenty20] has<br />

certainly led to some huge deals, but<br />

it’s also created problems for the<br />

value of the traditional game.”<br />

“Teams, governing bodies and owners<br />

are going to have to perform, behave<br />

and play by the rules - they need to<br />

make the sponsorship sell easier,<br />

not harder.”<br />

“Whenever government interferes in<br />

the sports market, something goes<br />

wrong. Just look what happened<br />

when the European Union decided<br />

Sky had to give up part of its Premier<br />

League TV package.”<br />

IT’S BEEN A TOUGH YEAR. Even the Indian<br />

cricket board rights have decreased in value. The<br />

one-off tournaments that normally spring up<br />

every month have simply failed to find buyers.<br />

Currency fluctuations in our core markets in<br />

the Indian sub-continent also played a major role.<br />

Most rights were bought in US Dollars, most<br />

income was in Indian or Pakistani rupees, whose<br />

fall increased the pressures.<br />

The Champions League cricket was the most<br />

notable economic failure. ESPN-Star’s ten year,<br />

billion dollar acquisition, failed to excite<br />

advertisers or viewers to the degree expected and<br />

has considerable ground to make up. It was<br />

perhaps a reality check for the value of Twenty20<br />

cricket. The new format has certainly led to some<br />

huge deals, but it’s also created problems for the<br />

value of the traditional game. The smaller cricket<br />

boards have now realised, perhaps too late, that<br />

the IPL’s riches are based on the same<br />

advertisers that have brought them such<br />

increases in their own incomes over the years.<br />

The current arguments over cricket’s next<br />

five-year fixture plan sum up the consequences of<br />

overcrowding in the mind of the viewer and<br />

advertiser. The actual or effective windows for the<br />

ICC or IPL based events mean that the big four<br />

boards (India, England, Australia, South Africa)<br />

increasingly just want to play each other in the<br />

few months that remain.<br />

The power base of cricket has further shifted as<br />

the likes of the West Indies or New Zealand<br />

boards became more reliant on the hand-outs<br />

and favours from the ICC or the Indian board.<br />

Away from cricket, the developments in our<br />

Middle East backyard have been fascinating. Pay<br />

TV has made no business sense in the area.<br />

Rights figures have escalated way beyond the<br />

potential income from a small pay market.<br />

Showtime and Orbit have consolidated the<br />

English speaking audiences. ART and Al-Jazeera<br />

have consolidated the major football rights.<br />

Yet, Abu Dhabi media’s purchase of the Premier<br />

League and development of a major media hub in<br />

the UAE’s capital has led to the potential<br />

emergence of a new force in the region’s<br />

television game. The Abu Dhabi decisions on<br />

distribution and future strategy may well be a<br />

story to watch in 2<strong>01</strong>0.<br />

IT IS MAJOR INCIDENTS off the pitch which have<br />

rocked sport in 2009 - from the allegations of<br />

cheating by Briatore to the Harlequins Bloodgate<br />

scandal. These incidents along with the economic<br />

downturn will have corporate organisations<br />

revaluing their sponsorship spend.<br />

This hit to sponsorship revenue streams, along<br />

with the change to the major sporting television<br />

rights, could stunt sports investment.<br />

The industry needs to weigh up whether a<br />

greater audience watching a sport will lead to<br />

more interest and excitement in that sport, and<br />

ultimately participation at grass roots level.<br />

If it doesn’t, the lack of big money which was<br />

previously poured into sporting bodies through<br />

the purchase of TV rights will be hugely<br />

detrimental. Reducing investment in this area will<br />

see a lack of development across the board - and<br />

we only have to look back at the success of<br />

Beijing to realise how much direct investment in<br />

athletes can achieve.<br />

I am strong believer in naming rights and have<br />

no doubt this will be high on the agenda in 2<strong>01</strong>0.<br />

Spurs, Everton and Liverpool have all talked<br />

about new stadiums and the selling of naming<br />

rights offers brands strong opportunities to reach<br />

new audiences - but this is still in the very early<br />

stages. With established clubs like Chelsea and<br />

Newcastle looking for potential naming rights<br />

partners, they need to take into consideration the<br />

failings of The BT Cellnet Riverside Stadium and<br />

the Friends Provident St Mary’s Stadium, which<br />

have made me wonder if some owners and<br />

management teams really understand what<br />

naming rights is all about. Sports Direct.com @ St.<br />

James Park really sums this up.<br />

Commercially it is going to be another tough<br />

year, so players, teams, governing bodies and<br />

owners are going to have to perform, behave and<br />

play by the rules - they need to make the<br />

sponsorship sell easier not harder.<br />

With greater accountability we need to<br />

demonstrate ROI and the entire industry needs to<br />

be responsible for demonstrating its effectiveness<br />

to keep us at the forefront of marketing decision<br />

maker’s minds.<br />

IT WAS, ON THE FACE OF IT, a meaningless match.<br />

A dead World Cup qualifying rubber between<br />

Ukraine and an England team which had already<br />

qualified for the finals in South Africa.<br />

In fact it was so dead that no UK broadcaster<br />

was willing to meet the asking price for the rights,<br />

an unheard of situation in a football mad nation.<br />

So up stepped digital media company Perform to<br />

stream the game live over the internet at £4.99<br />

($6.30) a pop. The move created ripples<br />

internationally. While some sports events have<br />

routinely been streamed for years, this was the<br />

first time that a webcaster had stepped in to<br />

replace the anticipated television service for a<br />

major football international in quite this way.<br />

Perform claimed an audience of around 500,000<br />

and reviews of the service were distinctly mixed.<br />

But this is a Genie which can never be put back in<br />

its bottle. It provided proof absolute that the rights<br />

market for live sport is no longer a simple<br />

competition between established broadcasters and<br />

that - for certain properties in certain<br />

circumstances - there are new kids on the block.<br />

While this provided a glimpse into the future,<br />

2009 also saw the past re-emerging in the form of<br />

fresh Listed Events recommendations in the UK.<br />

These are the sports events which have to be<br />

shown live on free-to-air television, driving a coach<br />

and horses through the notion of free competition.<br />

The England and Wales Cricket Board is furious<br />

that there are moves for its Crown jewel event - the<br />

home Ashes tests against Australia - to be<br />

returned to the free domain from Sky Sports which<br />

shows ALL its other properties….even the less<br />

popular ones... The Board reckons it may cost<br />

them £100 million which would otherwise be<br />

ploughed back into sport.<br />

Whenever a government interferes in the sports<br />

market, something goes wrong. Just look what<br />

happened when the European Union decided<br />

BSkyB had to give up part of its Premier League TV<br />

package. Fans had to pay more and Setanta<br />

couldn’t make their minority interest work. And<br />

went bust.<br />

The result... chaos and financial misery for the<br />

people in football who can least afford it. So a<br />

memo to governments re 2<strong>01</strong>0: Back Off….Please.<br />

SportBusiness <strong>International</strong> • No.152 • 12.09 71


THE WORLD’S TOP 20 … MOST INFLUENTIAL<br />

INDIVIDUALS IN THE SPORT BUSINESS<br />

Here are the results and analysis of the first SportBusiness poll to identify the individuals who<br />

have done most to shape the business of sport in 2009. The list has been complied from the<br />

results of voting in our readers’ poll on sportbusiness.com and the analysis of an expert panel.<br />

Of course, such lists always engender strong opinions, so we expect you to fully debate the final<br />

Top 20 at www.sportbusiness.com/poll.<br />

SportBusiness<br />

<strong>International</strong>’s<br />

take each<br />

month on<br />

the 20 most<br />

influential<br />

people or<br />

factors within<br />

specific sectors<br />

of sport...<br />

20. Casey Wasserman (WMG)<br />

As CEO of the company bearing his<br />

name, Wasserman is at the reins<br />

of the beast challenging IMG in the<br />

realm of sport representation through<br />

a series of mergers and acquisitions.<br />

Wasserman Media Group represents<br />

high-profile athletes in many US<br />

sports as well as golf, rugby, football<br />

and extreme sports. But management<br />

is only one arm of a company that<br />

also extends notably into the sale of<br />

naming rights. Wasserman set up his<br />

agency in 1998 and, around a decade<br />

later, it has annual revenues that<br />

approach $100 million.<br />

19. Mohamed Bin Hammam (AFC)<br />

As AFC President, Bin Hammam has<br />

overseen the creation and subsequent<br />

revamp of the AFC Champions<br />

League for the top clubs in Asia and<br />

the move of Australia into the AFC. In<br />

the words of no less an authority than<br />

Richard Scudamore, Bin Hammam’s<br />

vision for football development in<br />

Asia is both “progressive and exciting,<br />

providing opportunities to help the<br />

game flourish throughout the AFC<br />

for the benefit of football right across<br />

the region.” Also a member of <strong>FIFA</strong>’s<br />

executive committee, Bin Hammam<br />

has been heavily involved in sport<br />

in Qatar, a small gulf state with big<br />

sporting ambitions.<br />

18. Silvio Berlusconi (AC Milan)<br />

Into his third term as Italy’s prime<br />

minister, Berlusconi’s influence<br />

is undimmed. His investment<br />

company controls Italy’s three biggest<br />

private TV stations and in office,<br />

his appointees run the three public<br />

ones. His private business empire<br />

also spans advertising, insurance,<br />

food, construction and Italy’s most<br />

successful football club, AC Milan. His<br />

investment in the club ushered in the<br />

most successful period in its history,<br />

with seven domestic championships<br />

and five European Cups.<br />

17. Herbert Hainer (adidas)<br />

Under Hainer’s management, adidas<br />

has undertaken the titanic task of<br />

challenging Nike in the American<br />

market through sponsorships of the<br />

NBA, MLS, NFL and NHL, the latter<br />

two through subsidiary brand Reebok.<br />

Hainer was at the forefront of one of<br />

adidas’ finest moments two years ago<br />

when he survived a challenge from<br />

Nike to sponsor the German football<br />

federation, securing the sponsorship<br />

instead for adidas for under half the<br />

cash put on the table by its rivals.<br />

16. Ted Forstmann (IMG)<br />

The chairman and CEO of one of<br />

the world’s leading sports and<br />

entertainment groups, Forstmann’s<br />

influence stretches through<br />

investments in academies for<br />

young sports talent, to ownership<br />

of sports events, to elite athlete<br />

representation. Since acquiring IMG<br />

in 2004, Forstmann has expanded its<br />

business beyond sports and under<br />

his leadership, IMG helped create the<br />

Indian Premier League and signed a<br />

long-term joint-venture with CCTV to<br />

develop sports in China.<br />

15. Richard Scudamore (EPL)<br />

Scudamore heads up the richest and<br />

most powerful football league in the<br />

world. Chief executive since 1999, he<br />

has overseen growth in popularity of<br />

the league on an almost exponential<br />

scale, particularly in the Far East.<br />

Despite being shot down for his idea<br />

of a 39th game played outside of the<br />

UK, Scudamore came out of the latest<br />

domestic TV rights bidding smelling<br />

of roses having achieved a £1.782<br />

billion deal and is set to comfortably<br />

exceed the current international<br />

rights revenue, all despite a faltering<br />

domestic and global economy.<br />

14. Lalit Modi (IPL)<br />

As chairman and commissioner of the<br />

IPL, Modi oversees all that he surveys.<br />

One of the scions of Modi Enterprises,<br />

the industrial conglomerate founded<br />

in 1933, he is currently believed to be<br />

sitting on an empire worth around<br />

$1.5 billion. In 2005 he became the<br />

youngest vice-president of the Board<br />

of Control for Cricket in India and<br />

used this influence to put forward<br />

a proposal for the IPL. Set for its<br />

third season in 2<strong>01</strong>0, the league has<br />

become a by-word for innovative<br />

marketing in the launch of a new<br />

sports property.<br />

13. Philip Anschutz (AEG)<br />

Owner, among other interests, of<br />

the Anschutz Entertainment Group,<br />

Anschutz has built and created some<br />

of the world’s top sports venues,<br />

including the Staples Center and the<br />

Home Depot Center in Los Angeles,<br />

the O2 in London, and O2 World in<br />

Berlin. Through AEG he also owns<br />

stakes in an impressive list of sports<br />

ventures, including basketball teams<br />

the Los Angeles Lakers and the Los<br />

Angeles Sparks; football teams Los<br />

Angeles Galaxy, Houston Dynamo<br />

and Hammarby IF Fotboll; and ice<br />

hockey teams the Los Angeles Kings,<br />

the Manchester Monarchs, Eisbären<br />

Berlin and the Hamburg Freezers.<br />

12. Dick Ebersol (NBC Sports)<br />

As chairman of NBC Universal Sports,<br />

Ebersol is widely known as US TV’s<br />

‘Mr. Olympics’. He has been inducted<br />

into both the US Olympic Hall of Fame<br />

and the Broadcasting & Cable Hall<br />

of Fame. He oversees every aspect<br />

of NBC Universal’s Olympic Games<br />

<strong>cover</strong>age and his most significant<br />

achievements have been establishing<br />

NBC as the home of the Olympics<br />

and negotiating the six-year NFL deal<br />

which through to the 2<strong>01</strong>1 season with<br />

Super Bowls in 2009 and 2<strong>01</strong>2.<br />

11. Roger Goodell (NFL)<br />

Goodell is the top guy at the top<br />

sport in America, making him a<br />

very big fish in a very big pond. He<br />

manages one of the most sprawling<br />

and complex businesses in sports<br />

and is answerable to 32 franchise<br />

owners. The NFL is by far the biggest<br />

TV sports property in the US and its<br />

annual revenues are over $6 billion.<br />

Like the other Major League, US<br />

sports, his imperative of late has<br />

been in spreading the NFL message<br />

overseas. Under Goodell, the NFL<br />

has hosted regular season games<br />

in London and introduced a stripped<br />

down version of the sport into Chinese<br />

schools - moves the Commissioner<br />

hopes will win over new fans.<br />

10. Florentino Pérez (Real Madrid)<br />

A building magnate by ‘trade’,<br />

Florentino Pérez’s marketing vision<br />

for Real Madrid has seen him reprise<br />

72 SportBusiness <strong>International</strong> • No.152 • 12.09


his role as club president with a new<br />

generation of ‘Galacticos’. Pérez<br />

famously signed Zidane, Figo and<br />

Beckham in his first term, but may<br />

have trumped their marketing power<br />

with new signings Kaka and Ronaldo.<br />

On signing with Real, players must<br />

submit to a clause that allows the<br />

club to take fifty per cent of every<br />

endorsement they receive whilst<br />

under contract at the club.<br />

9. Philip Knight (Nike)<br />

Philip Knight and Nike co-founder<br />

Bob Bowerman spawned a revolution<br />

in athletic footwear and a worldwide<br />

marketing powerhouse. Through<br />

astute marketing, including groundbreaking<br />

tie-ups with top athletes<br />

such as Michael Jordan, they built<br />

the company into the world’s leading<br />

athletic shoe and sports apparel<br />

maker. As Nike’s largest shareholder,<br />

Knight continues to take an active role<br />

in the company, overseeing continued<br />

growth, finding new markets and new<br />

products to push out.<br />

8. David Stern (NBA)<br />

Head of the NBA since 1984, Stern<br />

has overseen a period during which<br />

the world’s leading basketball league<br />

has added seven new franchises,<br />

increased revenues fifteen-fold, and<br />

established a full-time women’s<br />

league. The NBA credits Stern<br />

with having a hand in “virtually<br />

every matter that has shaped the<br />

league”. Achievements include the<br />

1976 settlement between players<br />

and league, the introduction of the<br />

salary cap and revenue-sharing,<br />

and the creation of the league’s<br />

media management organisation<br />

NBA Entertainment. Stern has<br />

also overseen the NBA’s $2 billion<br />

investment in NBA China, capitalising<br />

on the sport’s popularity in the world’s<br />

most-populous country.<br />

7. George Bodenheimer (ESPN)<br />

Under his tenure, ESPN has grown<br />

into a multi-media powerhouse<br />

with more than 40 business<br />

entities, including seven US and 25<br />

international networks. Bodenheimer<br />

has notably embraced technology<br />

and is responsible for a variety of<br />

projects focusing on interactive TV,<br />

broadband technology and wireless<br />

products. He can also boast making<br />

ESPN the first TV company in US<br />

history to own rights for all four major<br />

US professional sports leagues at the<br />

same time and has reportedly set his<br />

sights on snatching the rights to the<br />

2<strong>01</strong>4 and 2<strong>01</strong>6 Olympics from rival<br />

network NBC.<br />

6. Rick Dudley (Octagon)<br />

As President and CEO of Octagon,<br />

Dudley has worldwide responsibility<br />

for all functional disciplines of<br />

Octagon, including marketing and<br />

event production and of course,<br />

athlete representation, meaning he<br />

has some of sports biggest names<br />

under his wing, including Michael<br />

Phelps. With clients including brands<br />

such as Sony, BMW and MasterCard<br />

on the roster and a big presence in<br />

South Africa (Octagon SA is one of the<br />

country’s biggest sports sponsorship<br />

groups), Dudley and his team will have<br />

a lot of say in where money is spent in<br />

the global sport market in 2<strong>01</strong>0.<br />

5. Rupert Murdoch (News Corp.)<br />

Murdoch’s broadcasting empire is<br />

a colossal size and through News<br />

Corporation, he has varied interests in<br />

the global sports market including the<br />

National Rugby League in Australia<br />

and pay-TV operators Fox Sports,<br />

BSkyB, Sky Italia and Sky Deutschland<br />

as well as the ESPN Star Sports joint<br />

venture in India. At the age of 78, he is<br />

as ambitious as ever, forever seeking<br />

to expand his business. Murdoch<br />

continues to wield a huge global<br />

influence in sport and he remains the<br />

most progressive mover-and-shaker<br />

in the media business.<br />

4. Bernie Ecclestone (Formula One)<br />

Without question, Ecclestone remains<br />

the most important component in the<br />

global success of Formula One and,<br />

as such, one of the most influential<br />

sporting powerbrokers. A master<br />

marketer, he re-invented the sport’s<br />

relationship with brands when its<br />

marriage with the tobacco industry<br />

timed out and adeptly plays countries<br />

off against each other in the bid to<br />

host grands prix. As UK newspaper<br />

The Guardian put it, Ecclestone’s real<br />

masterstroke has been ‘to persuade<br />

presidents and prime ministers that<br />

no state could look itself in the mirror<br />

unless motorised billboards travelled<br />

round its racetrack at 190mph.<br />

3. Michel Platini (UEFA)<br />

The second-biggest power-broker<br />

in the world’s biggest sport gets a<br />

place on the list due to the European<br />

dominance of football in terms of<br />

the money and talent in its leagues.<br />

Platini often speaks out and has been<br />

vocal in his condemnation of the<br />

commercial ambition of England’s<br />

Premier League, particularly around<br />

the 39th game proposal and the<br />

levels of debt in the English game. He<br />

does not always see eye-to-eye with<br />

<strong>FIFA</strong> President Sepp Blatter, most<br />

significantly disagreeing with him on<br />

the home-player quota plan.<br />

2. Jacques Rogge (IOC)<br />

Re-elected unopposed to another<br />

four years in office, 2009 also saw<br />

Rogge cement his influence within the<br />

IOC and his legacy beyond. Both the<br />

election of Rio as host city for the 2<strong>01</strong>6<br />

Olympic Games and the inclusion of<br />

golf and rugby on the 2<strong>01</strong>6 Olympic<br />

programme were proof of his<br />

influence. He does not vote in bid city<br />

elections, but it seems clear that his<br />

desire to extend the Olympic brand to<br />

emerging world powers was followed<br />

by the membership and Rogge now<br />

stands firmly at the head of an IOC<br />

that moves the way that he leads.<br />

JAPPO<br />

www.jappo.org<br />

AFRICA INTERNATIONAL SPORT CONVENTION ( CISA )<br />

"Sports for Education and Development"<br />

CISA 2<strong>01</strong>0: 22 – 24 April, Ekurhuleni (Johannesburg) Emperors Palace Hotel<br />

The Africa <strong>International</strong> Sports Convention (CISA) , inaugurated in 2007 is an initiative<br />

of JAPPO (www.jappo.org), an Events and Sport Management Company based in Dakar,<br />

Senegal. After Dakar in 2007, Abuja in 2008 and Alexandria in 2009, the City of<br />

Ekurhuleni (Johannesburg) is hosting the 4th edition of CISA from 22—24 April 2<strong>01</strong>0<br />

just few months before South Africa welcomes the world the first ever <strong>FIFA</strong> World Cup<br />

organised in Africa.<br />

Registration and information:<br />

info@cisaconvention.org<br />

Website: www.cisaconvention.org<br />

Do not miss THE ONLY SPORTS BRAINSTORMING SESSION IN AFRICA<br />

CISA represents a unique opportunity for international sport organizations<br />

to meet and network with leaders, decision makers of African sport.<br />

The programme of the Convention includes:<br />

- DISCUSSION FORUM<br />

- A SPORT EXIHIBITION<br />

- The publication of the 400 pages AFRICA SPORTS DIRECTORY book<br />

- The INDUCTION TO THE AFRICA HALL OF FAME during a gala night scheduled<br />

on the last evening of the convention programme<br />

- A CHILDREN SPORT DAY on the opening day of the event<br />

SportBusiness <strong>International</strong> • No.152 • 12.09 73


#1<br />

A MATTER OF INFLUENCE<br />

THE MARGIN of Sepp Blatter’s victory<br />

in the SportBusiness poll to find the<br />

‘Most Influential’ person in the sport<br />

business in 2009 was significant.<br />

He came in ahead of IOC President<br />

Jacques Rogge and both were well<br />

ahead of all other contenders.<br />

What is of greater consequence<br />

to those who study the international<br />

world of sport is that the result<br />

reaffirms accepted wisdom - that<br />

is that when it comes to sport, the<br />

World Cup and Olympic Games stand<br />

head and shoulders above any other<br />

property –above the NFL, NBA and<br />

Premier League, and above even the<br />

UEFA Champions League.<br />

All of which leads to this question:<br />

Is influence in sport to do with<br />

personal qualities and characteristics<br />

or simply a reflection of the scale and<br />

importance of the properties which an<br />

individual represents<br />

In the case of Sepp Blatter, the<br />

answer lies somewhere between the<br />

two poles. His personal influence is<br />

naturally bolstered by the fact that he<br />

oversees the ‘Global Game’ and that<br />

the <strong>FIFA</strong> World Cup is undoubtedly<br />

the greatest single sport event in<br />

the world, generating massive TV<br />

audiences and huge amounts in<br />

commercial sponsorship.<br />

Sir Martin Sorrell, head of<br />

WPP, the global marketing and<br />

communications giant, regularly talks<br />

of the role that major sports events,<br />

notably the Olympic Games and<br />

<strong>FIFA</strong> World Cup have in creating real<br />

economic upturn - not only in the host<br />

country but way beyond.<br />

The fact is that the World Cup,<br />

<strong>FIFA</strong>’s Blue Ribband Event, rocks<br />

the world. Even in those countries<br />

where the national team has not<br />

qualified for the final 32, the television<br />

audiences reach near record levels<br />

and the water cooler conversation<br />

is dominated by the exploits of the<br />

teams and individuals who have<br />

become household names thanks to<br />

the ‘Beautiful Game.’<br />

So how much has Blatter’s<br />

personal influence contributed to the<br />

phenomenal power of football<br />

To come close to an answer it is<br />

important to understand a couple<br />

of things. First that football has two<br />

faces - the public and private side.<br />

<strong>FIFA</strong> is unremittingly political and few<br />

prisoners are taken in the scrabble<br />

for power.<br />

Blatter is master of the politics.<br />

He’s a former PR man and journalist<br />

who speaks four languages likes a<br />

native and who made a seamless shift<br />

from paid <strong>FIFA</strong> employee to elected<br />

President when he succeeded the<br />

Brazilian Joao Havelange in 1998.<br />

The politician<br />

According to his official <strong>FIFA</strong><br />

biography, Blatter decided to stand<br />

for President as a result of the<br />

interest shown by numerous national<br />

associations from around the world.<br />

That in turn was the result of his<br />

innate ability to ‘work the room’<br />

making friends and influencing people<br />

during his time on the other side of<br />

the fence, first as Director of Technical<br />

Development, then as General<br />

Secretary and then as CEO.<br />

Ask almost any football insider and<br />

they will tell you that Sepp Blatter has<br />

never stopped working the room. It’s<br />

just that the rooms have got bigger<br />

and their inhabitants more important<br />

as he has scaled the ladder.<br />

Now into his third term, Blatter<br />

has learned on the job and his<br />

accumulated knowledge is probably<br />

unsurpassed. He is, by all accounts,<br />

the consummate politician -<br />

somebody who knows how to get<br />

things done but who is careful to<br />

deliver on his promises to those who<br />

have helped him.<br />

Blatter’s record at <strong>FIFA</strong> suggests<br />

that he has been smart enough to<br />

alienate as few people as possible<br />

in a 34 year career. In his time he<br />

has seen the World Cup grow to its<br />

all-encompassing 32 team scale and<br />

taken it to Asia (Japan and Korea) for<br />

the first time.<br />

Next year is scheduled to deliver<br />

what may be seen as his crowing glory<br />

- the first World Cup to be staged<br />

in Africa. Delivering a tournament<br />

to the Continent became an article<br />

of faith for Blatter and helped him<br />

win essential African votes down the<br />

years. The draw for the 2<strong>01</strong>0 World<br />

Cup will be held in Durban early this<br />

month and, despite some frantic<br />

paddling beneath the waterline, the<br />

event is expected to be given a clean<br />

bill of health.<br />

South Africa’s success in winning<br />

the right to host the World Cup was<br />

due to Blatter’s ability to push through<br />

a - now abandoned - policy of rotation<br />

which ensured that various continents<br />

would share <strong>FIFA</strong>’s Blue Ribband<br />

event. It was a policy which won him<br />

a lot of friends and built alliances<br />

which have helped him through some<br />

stormy times when his leadership and<br />

even integrity have been in question.<br />

While he has been associated with<br />

many successes he has also been<br />

at the heart of a number of apparent<br />

scandals, although he has walked<br />

away from each with his reputation<br />

officially untarnished.<br />

Despite that, some sections of the<br />

media remain distrustful of the most<br />

powerful man in football and Blatter<br />

is under constant scrutiny from those<br />

who believe there are still questions<br />

to answer over the collapse of ISL,<br />

allegations of voting irregularities<br />

and of his handling of the switch<br />

between Mastercard and Visa as<br />

<strong>FIFA</strong> sponsors. This last drama led to<br />

<strong>FIFA</strong>’s commercial director Jerome<br />

74 SportBusiness <strong>International</strong> • No.152 • 12.09


Valcke leaving the organisation, only<br />

to return some time later in the role<br />

of Secretary General, a position which<br />

Blatter himself had occupied during<br />

his accent of the top office.<br />

But despite the ceaseless attacks<br />

and innuendo, Blatter remains in<br />

position and there is little doubt that<br />

<strong>FIFA</strong> has taken tremendous strides<br />

on his watch. Since assuming the<br />

presidency he has overseen the<br />

re-structuring of <strong>FIFA</strong>’s competition<br />

portfolio, seen women’s football gain<br />

an unprecedented degree of exposure<br />

and credibility and moved the<br />

organisation into a shiny new palace<br />

of a headquarters in Zurich.<br />

All in all that’s not bad going for a<br />

former Swiss amateur league player<br />

who started his professional career<br />

as head of PR for his local tourist<br />

board in Switzerland before becoming<br />

General Secretary of the Swiss Ice<br />

Hockey Federation.<br />

He developed a career in<br />

journalism and PR, ultimately getting<br />

his first shot at the international<br />

sports scene at the Olympic games<br />

of 1972 and ’76 as Director of Sports<br />

Timing and PR for the Swiss watch<br />

brand Longines.<br />

Extra responsibility<br />

It was the springboard to a career<br />

which has shaped <strong>FIFA</strong>, football and,<br />

some would say, the world.<br />

And it is the way that <strong>FIFA</strong> has<br />

reached out beyond football to<br />

harness the power of the sport to a<br />

range of causes and projects which<br />

demonstrate the most positive<br />

exertion of his influence.<br />

“<strong>FIFA</strong> is no longer merely an<br />

institution that runs our sport,” he says.<br />

“It has now taken on a social, cultural,<br />

political and sporting dimension<br />

in the struggle to educate children<br />

and defeat poverty. At the same<br />

time it has also become a powerful<br />

economic phenomenon. The 208<br />

national associations affiliated to <strong>FIFA</strong><br />

represent 260 million people actively<br />

connected to the game, including<br />

players, coaches and administrators.<br />

Based on the reasonable assumption<br />

that each of them has three or four<br />

family members or friends with an<br />

interest in the game that figure rises<br />

to one billion, a seventh of the Earth’s<br />

population. The football family has a<br />

major responsibility and must set an<br />

example.”<br />

The history books<br />

That responsibility is being discharged<br />

in a number of different ways, not<br />

least of which is the Football for Hope<br />

movement which aims to use the<br />

power of football to drive sustainable<br />

social development around the world.<br />

Football for Hope supports and<br />

sustains a wide range of innovative<br />

and imaginative football based<br />

projects on every continent.<br />

These projects are set up to deal<br />

with social issues ranging from<br />

encouraging children to stay in<br />

education to providing a focus and<br />

incentive for long-term unemployed<br />

youngsters. Some promote peace<br />

and conflict resolution, others health<br />

awareness, particularly in relation to<br />

AIDS in Africa.<br />

When historians come to review<br />

Sepp Blatter’s personal contribution,<br />

he will inevitably be regarded as a<br />

controversial character who built<br />

influence and a fiefdom on a mixture<br />

of easy charm, hard bargaining and<br />

tough politics.<br />

But in the villages of Asia, the<br />

townships of Africa and the favellas<br />

of Latin America - places where the<br />

name Blatter probably means next to<br />

nothing - the social work instigated<br />

and supported by his <strong>FIFA</strong> may well<br />

prove to be life changing. And that’s<br />

real influence.<br />

SportBusiness <strong>International</strong> • No.152 • 12.09 75


CONFERENCES www.sportbusiness.com/marketplace/conferences<br />

SAILING ON<br />

A FAIR WIND<br />

world yachT racIng forum<br />

monTe -carlo - monaco<br />

09-10.12.09<br />

Yacht racing and sailing are today<br />

attracting some of the biggest<br />

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as the sport continues to<br />

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The second edition of the World Yacht Racing Forum aims to capitalise on this interest<br />

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yacht racing events around the world to help grow the sport globally and increase its<br />

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Leading speakers from inside and outside the sport will present case studies and<br />

challenge some of the sports most current issues including the value of sailing<br />

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Highlights for the 2009 event include: over 40 international speakers and panel<br />

members; eight market driven panel sessions/debates with audience participation; over<br />

nine hours of networking sessions scheduled; over 35 exhibition showcase stands of<br />

cutting edge solution and technology providers and three evening social functions.<br />

Confirmed speakers include: Peter Gilmour, chairman, World Yacht Racing Forum;<br />

Mark Turner, CEO, OC Events; Knut Frostad, CEO of Volvo Ocean Race and Bruno<br />

Troublé, who founded the Louis Vuitton Cup. As last year, the World Yacht Racing Forum<br />

will be co-located alongside the Motorsports Business Forum.<br />

The annual conference on SporTS law<br />

london- uk<br />

02.02.10<br />

2<strong>01</strong>0 marks the beginning of what some have<br />

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In addition to the 2<strong>01</strong>2 Olympic Games, Britain<br />

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Rugby League World Cup, the 2<strong>01</strong>4<br />

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2<strong>01</strong>8 <strong>FIFA</strong> World Cup.<br />

Sport and the business of sport will take an<br />

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this conference, chaired by Richard Verow, Head<br />

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implementation of the Golden Decade.<br />

legacy lIveS<br />

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03.-05.03.10<br />

Legacy Lives is back and is returning to London.<br />

Firmly established in the annual conference<br />

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Among the topics for discussion are: What<br />

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Delegates will represent bidding cities; cities<br />

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daTe evenT locaTIon organISerS conTacT<br />

decemBer 2009 - SepTemBer 2<strong>01</strong>0<br />

Dec 8-9 Motor Sport Business Forum USA Orlando - USA IM2 GmbH +44 207 313 9180<br />

Dec 9-10 Motor Sport Business Forum Europe Monte-Carlo, Monaco IM2 GmbH + 351 91 917 2287<br />

Dec 9-10 World Yacht Racing Forum Monte-Carlo, Monaco Informa Yacht Group +44 20 8871 2354<br />

Feb 2 Annual Conference on Sports Law - A Year in Sports Law London - UK Management Forum Ltd +44 1483 730071<br />

Feb 22-23 ISPO SpoBiS Sport Business Summit Munich - Germany ESB Event Sport Business + 41 712237882<br />

March 2-3 Soccerex European Forum 2<strong>01</strong>0 Manchester, England Soccerex +44 208 742 7100<br />

March 3-5 Legacy Lives 2<strong>01</strong>0 London - UK PMP Legacy +44 207 6315500<br />

March TBC Sport and Social Responsibility Summit London - UK SportBusiness Group +44 207 954 3439<br />

April 21 Sport and New Media Manchester - England SportBusiness Group +44 207 954 3439<br />

July 5 <strong>International</strong> Sports Tourism Conference Johannesburg, South Africa SportBusiness Group +44 207 954 3439<br />

July 5-9 The World Sport Destination Expo Johannesburg, South Africa World Sport Destination Expo/SBG +44 207 925 0000<br />

Sept TBC Sports Marketing 360 London- UK SportBusiness Group +44 207 954 3439<br />

76 SportBusiness <strong>International</strong> • No.152 12.09


PEOPLE MOVES www.sportbusiness.com/marketplace/peoplemoves<br />

The SporTBuSIneSS guIde To who’S goIng where In The world of SporT and BuSIneSS ThIS monTh<br />

doug arnot was appointed by the London<br />

Organising Committee of the Olympic Games<br />

(LOCOG) to be responsible for the overall<br />

planning, co-ordination and delivery of London<br />

2<strong>01</strong>2’s Games Time Operations. The position will<br />

include integrating venues, sport, village,<br />

security, games services and broadcast<br />

functions. Arnot, who reports directly to CEO<br />

Paul Deighton, joined LOCOG at end October.<br />

Jean Todt was elected President of the FIA for a<br />

four-year term by the FIA General Assembly at<br />

its annual meeting in Paris. The FIA<br />

membership voted for Todt by a margin of 135<br />

votes to 49 for his rival Ari Vatanen. There were<br />

12 abstentions/invalid votes.<br />

lord mawhinney, Chairman of England’s<br />

Football League informed the League Board of<br />

his decision to stand down from the<br />

Chairmanship on in March 2<strong>01</strong>0, after more<br />

than seven years in the role. Ian Ritchie, the<br />

Board’s independent director will oversee the<br />

process to select a new Chairman, which will<br />

include consultation with League clubs.<br />

mark hargreaves and Steve robinson were<br />

appointed to the management team of boutique<br />

sport and media management consultancy -<br />

Knowledge MGI. Hargreaves will become Chief<br />

Operating Officer and Robinson becomes Chief<br />

Technology Officer. Hargreaves joins from<br />

Manchester United, where he was General<br />

Manager of Man Utd Interactive. Robinson was<br />

an international WebSphere consultant and has<br />

previously been a consultant for both IBM Lotus<br />

Notes and Microsoft.NET technologies.<br />

peter kenyon, former Chief Executive of<br />

Chelsea FC and Manchester United, joined CAA<br />

Sports to lead its international efforts. Kenyon<br />

joins CAA Sports’ leadership team and will be<br />

responsible for guiding the agency’s growth<br />

overseas in areas including athlete<br />

representation, endorsements, sports<br />

properties for sales and sponsorship, media<br />

rights, and corporate consulting, among others.<br />

Additionally, Kenyon will develop CAA Sports’<br />

London operations, helping to build a dedicated<br />

international sales and management team.<br />

michael whan was appointed as the new Ladies<br />

Professional Golf Association (LPGA)<br />

Commissioner. Whan, most recently President<br />

and Chief Executive Officer of Mission-Itech<br />

Hockey, has a background in golf, including<br />

serving as Executive Vice President and General<br />

Manager (North American Region) for<br />

Taylormade-adidas Golf. Whan will officially take<br />

the Commissioner’s office in January 2<strong>01</strong>0.<br />

Jon Teeman was appointed Partner<br />

Development Director for TEAMORIGIN, the<br />

British challenger for the America’s Cup headed<br />

by Air Miles founder Sir Keith Mills. Teeman, a<br />

former Head of Partnership Marketing at<br />

Arsenal FC, will be responsible for securing<br />

commercial partners for TEAMORIGIN.<br />

Suresh kalmadi, the Indian Olympic Association<br />

President was re-elected unopposed as the<br />

president of the Asian Athletic Association (AAA).<br />

He was elected for another four-year term, from<br />

2009 to 2<strong>01</strong>3, at an AAA Annual General Meeting.<br />

He will serve his third consecutive term in office.<br />

Manchester United chief executive david gill,<br />

ex-Birmingham director karren Brady, Sports<br />

Minister gerry Sutcliffe, Sir keith mills, Sir<br />

martin Sorrell and the English Football<br />

Association’s former chief operating officer<br />

Simon Johnson stood down from England’s<br />

2<strong>01</strong>8 World Cup bid team in order to make the<br />

decision-making process more efficient. They<br />

will continue to advise the board. Former FA<br />

chairman geoff Thompson has been added to<br />

the new-look seven-man board, chaired by<br />

current FA chairman Lord Triesman.<br />

magnus malmros joined sport agency IEC in<br />

Sports, to work on special projects. Earlier this<br />

year, IEC agreed a deal with IAAF on World<br />

Athletics Series for Europe and Africa 2<strong>01</strong>0-13.<br />

Malmros formerly worked with major events at<br />

the EBU. The first project for Malmros will be<br />

the international club team tournament in<br />

Marbella, Copa del Sol, where top teams from<br />

Scandinavia, Russia and Ukraine will compete<br />

for at total prize purse of SEK 2 million.<br />

archie norman, a former Conservative MP and<br />

Asda chief executive was named chairman of UK<br />

commercial broadcaster ITV – ending the<br />

two-month search for a successor to Michael<br />

Grade. Norman, who will take up the post in<br />

January, will start by overseeing the search for a<br />

new chief executive.<br />

dr. chungwon choue was elected for a third<br />

term as president of the World Taekwondo<br />

Federation at the General Assembly in October.<br />

Dr. Choue garnered 104 votes against 45 for<br />

Thailand’s Nat Indrapana, with one vote invalid.<br />

ouT and aBouT...<br />

enTrepreneurS are, By naTure, always<br />

looking forward. But, as people often remind<br />

me, it is important to reflect on what has been<br />

achieved. So, as 2009 comes to a close, it<br />

seems an appropriate time to look back at<br />

where we were at the beginning of this year.<br />

UR7s.com was very much a work-inprogress<br />

as 2009 began. Most of my typical<br />

week was spent chasing after every last detail<br />

prior to the site’s soft launch. With the aim of<br />

creating a portal that the Rugby Sevens<br />

community around the globe could call home,<br />

a first-class website was by far the most<br />

important job at hand.<br />

Early on, I had assembled the team of Tom,<br />

Robin and Stewart and at the turn of the year<br />

we moved into our first office after months<br />

rotating between coffee shops. How times have<br />

changed. A year on, we are preparing to move<br />

Diary of a Sport Business Entrepreneur<br />

office again and a typical week recently has<br />

seen me rushing from meeting international<br />

sports broadcasters, discussing the future for<br />

Sevens and their interest in this TV-friendly<br />

format of the game, to dinners with some old<br />

heroes of the game.<br />

I’m in touch with the RFU on an almost<br />

day-to-day basis, collaborating on plans to<br />

bring more structure into the UK Sevens<br />

season, and the press has become a significant<br />

part of my schedule too. Interest is growing<br />

considerably as we move forward.<br />

Add to this conference calls with the IRB<br />

and a number of tournaments around the<br />

world, a reception at the Australian High<br />

Commission, meetings with potential investors<br />

and plans for a business tour of Australia and<br />

New Zealand in Q1... and I should probably not<br />

leave out the smooth running of a global Rugby<br />

Sevens website! One valuable lesson that I have<br />

learned is that patience is key amongst all of<br />

the excitement and drama involved with being a<br />

sports entrepreneur. It is often not until you go<br />

through this process of reflection that you<br />

realise just how far you have come.<br />

Considering the tangibles - whether<br />

financial, our products, website traffic and<br />

employees - and the intangibles - such as<br />

goodwill, relationships, brand positioning and<br />

PR - I can see that giant strides having been<br />

made in an encouragingly busy 2009. We are<br />

still merely in the foothills and can’t climb the<br />

mountain fast enough. But we must take stock,<br />

if just for a moment, and acknowledge how<br />

well we’ve done to get here. Then, I can look<br />

ahead to next year’s ascent with confidence.<br />

Tim Lacey, founder, Ultimate Rugby Sevens<br />

SportBusiness <strong>International</strong> • No.152 • 12.09 77


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KHP<br />

www.khpconsulting.com<br />

OCTAGON<br />

www.octagon.com<br />

MICHEZONET<br />

http://michezonet.org<br />

MTA MEDIA<br />

www.mtamedia.co.uk<br />

PERFORMANCE PR<br />

www.performancepr.com<br />

TWO UP FRONT<br />

www.tuf.com.hk<br />

VERTICAL BANNER<br />

www.event360.co.uk/vertical_banners<br />

CONSULTANCY<br />

BTD INTERNATIONAL CONSULTING<br />

www.btd.de/btd-consulting/en<br />

FAST TRACK<br />

www.fast-track-events.com<br />

GRAPEFRUIT GRAPHICS<br />

http://grapefruitgraphics.co.uk<br />

IMG<br />

www.imgworld.com<br />

Connecting<br />

ambitious host cities<br />

with progressive<br />

sports federations<br />

www.tseconsulting.com<br />

We help cities, LOC’s and<br />

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sporting events.<br />

Contact: Peter Mann<br />

petermann@pmpgenesis.com<br />

www.pmplegacy.com<br />

INFRONT<br />

www.infrontsports.com<br />

JON TIBBS ASSOCIATES<br />

www.jtassocs.com<br />

LEXIS SPORT & ENTERTAINMENT<br />

www.lexispr.com<br />

PMPGENESIS<br />

www.pmpgenesis.com<br />

Q SPORTS<br />

www.qsportsonline.com<br />

SPONSORSHIP CONSULTING<br />

www.sponsorshipconsulting.co.uk<br />

SPORT STRUCTURES<br />

www.sportstructures.com<br />

VERO COMMUNICATIONS<br />

www.verocom.co.uk<br />

WITH-HINDSIGHT ASSOCIATES<br />

www.with-hindsight.com<br />

DESIGN, LICENSING & BRANDING<br />

GRAPEFRUIT GRAPHICS<br />

http://grapefruitgraphics.co.uk<br />

IMG<br />

www.imgworld.com<br />

OCTAGON<br />

www.octagon.com<br />

SENTIO PRINT AND MULTIMEDIA LTD<br />

www.sentio-pm.co.uk<br />

SME EUROPE<br />

www.smebranding.com<br />

SPRINGETTS<br />

www.springetts.co.uk<br />

VERTICAL BANNER<br />

www.event360.co.uk/vertical_banners<br />

PHOTO & VIDEO<br />

CREATIVE TECCREATIVE TECHNOLOGY<br />

www.creative.com<br />

EUROSPORT<br />

www.eurosport-tv.com<br />

GETTY<br />

www.gettyimages.com<br />

IMG<br />

www.imgworld.com<br />

RED PHOTOGRAPHIC<br />

www.red-photographic.com<br />

RESEARCH & EVALUATION<br />

APPLIED IMAGE RECOGNITION<br />

www.air-ltd.com<br />

JON TIBBS ASSOCIATES<br />

www.jtassocs.com<br />

OCTAGON<br />

www.octagon.com<br />

SPONSORMETRIX<br />

www.sponsormetrix.net<br />

SPORTS MARKETING & SPONSORSHIP<br />

ACTION HOUSE INTERNATIONAL<br />

www.actionhouseintl.com<br />

BAT PARROT MARKETING<br />

www.batparrot.com<br />

BRABNERS CHAFFE STREET<br />

www.brabnerschaffestreet.com<br />

BRAND RAPORT<br />

www.brand-rapport.com<br />

CITY OF MANCHESTER<br />

www.visitmanchester.com<br />

DORNA SPORTS<br />

www.dorna.com<br />

EVENT 360<br />

www.event360.co.uk<br />

“Connecting<br />

customers with your<br />

brand”<br />

• Strategic Consulting<br />

• Brand Promotions<br />

• Retail Marketing<br />

• Event Management<br />

• ROI Modelling<br />

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Media Village,<br />

131-151 Great Titchfield St,<br />

London W1W 5BB<br />

Tel: +44 (0) 203 008 7640<br />

londoninfo@teamvelocity.com<br />

www.teamvelocity.co.uk<br />

EVENT SCOTLAND<br />

www.eventscotland.org<br />

EXPERIENCE<br />

www.experience-worldwide.com<br />

FAST TRACK<br />

www.fast-track-events.com<br />

FEI<br />

www.fei.org<br />

FOUR COMMUNICATIONS<br />

www.fourcommunications.com<br />

GRAPEFRUIT GRAPHICS<br />

http://grapefruitgraphics.co.uk<br />

HALLY SPORTS INTERNATIONAL<br />

www.hallysports.com<br />

HAVAS SPORTS & ENTERTAINMENT<br />

www.havas.com<br />

ILUKA<br />

www.iluka.co.uk<br />

IMG<br />

www.imgworld.com<br />

INFRONT<br />

www.infrontsports.com<br />

INTERFUSE<br />

www.interfuse.net<br />

JARDINE INTERNATIONAL<br />

www.jardine-international.com<br />

KENTARO<br />

http://kentaro.hdlab2.de<br />

KHP<br />

www.khpconsulting.com<br />

78 SportBusiness <strong>International</strong> • No.152 • 12.09


CLASSIFIED www.sportbusiness.com/marketplace/organisations<br />

LEXIS SPORT & ENTERTAINMENT<br />

www.lexispr.com<br />

PLUS EVENT MARKETING<br />

www.plus-em.com<br />

PMPGENESIS<br />

www.pmpgenesis.com<br />

PROMO SEVEN<br />

www.promosevensports.com<br />

RELAY DUBAI<br />

www.relayworldwide.com<br />

RESULTINC<br />

http://resultinc.co.uk<br />

RT MARKETING<br />

www.rtltd.com<br />

POPULOUS<br />

www.populous.com<br />

TICKETING, CRM & SMART CARDS<br />

IMG<br />

www.imgworld.com<br />

MIKE BURTON SPORTS TRAVEL<br />

www.mikeburton.com<br />

UK T & I<br />

https://www.uktradeinvest.gov.uk<br />

EDUCATION & TRAINING<br />

EDUCATION & TRAINING<br />

RECRUITMENT<br />

ISM<br />

www.ismsearch.com<br />

RESULTINC<br />

http://resultinc.co.uk<br />

SPORT STRUCTURES<br />

www.sportstructures.com<br />

SPORTING APPOINTMENTS<br />

www.sportingappointments.com<br />

UK T & I<br />

https://www.uktradeinvest.gov.uk<br />

UNITED MEDIA ENTERTAINMENT<br />

www.umegroup.net<br />

KHP<br />

www.khpconsulting.com<br />

MICHEZONET<br />

http://michezonet.org<br />

MIKE BURTON SPORTS TRAVEL<br />

www.mikeburton.com<br />

PLAYMAKER<br />

www.playmaker.com.tr<br />

PLUS EVENT MARKETING<br />

www.plus-em.com<br />

PROSKE GROUP<br />

www.proskegroup.com<br />

RUSHMANS<br />

www.rushmans.com<br />

SCHILLINGS<br />

www.schillings.co.uk<br />

EVENTS<br />

CONFERENCES, EXHIBITIONS & VENUES<br />

SHEFFIELD CITY COUNCIL<br />

www.sheffield-lightingtheflame.com<br />

SELA SPORT<br />

http://sela-sport.com<br />

ACC LIVERPOOL<br />

www.accliverpool.com<br />

SLS GROUP<br />

www.sls-group.com<br />

SINE QUA NON<br />

http://sinequanon-intl.com<br />

BIRMINGHAM CITY COUNCIL<br />

www.birmingham.gov.uk<br />

SPORT EVENT SOLUTIONS<br />

http://sporteventsolutions.com<br />

SPONSORSHIP CONSULTING<br />

www.sponsorshipconsulting.co.uk<br />

CITY OF MANCHESTER<br />

www.visitmanchester.com<br />

SPORTSMARK EUROPE<br />

www.sportsmark.com<br />

SPONSORSHIP IDEAS<br />

www.sponsorshipideas.com<br />

SPORT DRIVEN LTD<br />

www.sportdriven.co.uk<br />

SPORTBIZ<br />

www.sport<strong>sbi</strong>z.gr<br />

UCD MSc Sport & Exercise<br />

Management<br />

LEISURE INDUSTRY WEEK<br />

www.liw.co.uk<br />

SHEFFIELD CITY COUNCIL<br />

www.sheffield-lightingtheflame.com<br />

THE CO-OPERATIVE<br />

www.co-operativetravel.co.uk<br />

SPORTSWORLD<br />

www.sportsworld-group.<br />

comswgsportsworldindex.html<br />

THE CO-OPERATIVE<br />

www.co-operativetravel.co.uk<br />

SECURITY<br />

SPORTFIVE<br />

www.sportfive.com<br />

UK T&I<br />

https://www.uktradeinvest.gov.uk<br />

THE SPORTS CONSULTANCY<br />

www.thesportsconsultancy.com<br />

UK T & I<br />

https://www.uktradeinvest.gov.uk<br />

VERO COMMUNICATIONS<br />

www.verocom.co.uk<br />

VERTICAL BANNER<br />

www.event360.co.ukvertical_banners<br />

WITH-HINDSIGHT ASSOCIATES<br />

www.with-hindsight.com<br />

WORLD SPORT GROUP<br />

www.worldsportgroup.com<br />

CAPITAL PROJECTS<br />

ARCHITECTS, CONSTRUCTION &<br />

ENGINEERING<br />

FRANKLIN + ANDREWS<br />

www.franklinandrews.com<br />

NUSSLI GROUP<br />

www.nussli.com<br />

POPULOUS<br />

www.populous.com<br />

POYRY ARCHITECTS OY<br />

www.architects.poyry.fi<br />

SERVICE & EQUIPMENT PROVIDERS<br />

AGGREKO<br />

www.aggreko.com<br />

ES GROUP<br />

www.esgroup.uk.com<br />

NUSSLI GROUP<br />

www.nussli.com<br />

Sport, Golf and Exercise<br />

Management Streams<br />

www.ucd.ie/css<br />

Ph+353 1 7163430<br />

AISTS<br />

www.aists.org<br />

BIRKBECK UNIVERSITY<br />

www.bbk.ac.uk<br />

BRABNERS CHAFFE STREET<br />

www.brabnerschaffestreet.com<br />

<strong>CIES</strong><br />

www.cies.ch<br />

ESSEC GROUPE<br />

www.essec.eduhome<br />

INSTITUTO DE EMPRESA<br />

www.ie.edu<br />

MIDDLESEX UNI<br />

www.mdx.ac.uk<br />

NOTTINGHAM TRENT UNIVERSITY<br />

www.ntu.ac.uk<br />

SCOTTISH UNIVERSITIES SPORT<br />

www.susport.org.uk<br />

SPORT STRUCTURES<br />

www.sportstructures.com<br />

SPORTS MANAGEMENT WORLDWIDE<br />

www.sportsmanagementworldwide.com<br />

STREET LEAGUE<br />

www.streetleague.co.uk<br />

EVENT MANAGEMENT & CORPORATE<br />

HOSPITALITY<br />

BIRMINGHAM CITY COUNCIL<br />

www.birmingham.gov.uk<br />

CITY OF MANCHESTER<br />

www.visitmanchester.com<br />

CORPORATE LEISURE LIMITED<br />

www.corporateleisureltd.com<br />

DORNA SPORTS<br />

www.dorna.com<br />

EVENT 360<br />

www.event360.co.uk<br />

EVENT SCOTLAND<br />

www.eventscotland.org<br />

FAST TRACK<br />

www.fast-track-events.com<br />

FEI<br />

www.fei.org<br />

GB CREATION & ADVICE CONSULTING<br />

www.gbpresentaciones.com<br />

GRAPEFRUIT GRAPHICS<br />

http://grapefruitgraphics.co.uk<br />

IMG<br />

www.imgworld.com<br />

INFRONT<br />

www.infrontsports.com<br />

INNOVISION<br />

www.innovision.eu<br />

KENTARO<br />

http://kentaro.hdlab2.de<br />

In today’s environment it has become<br />

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bodies to achieve this outcome.<br />

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Contact: Mark Saliba<br />

Director of Operations<br />

+61 (2) 9907 3800<br />

Email: mark_saliba@shodan.com.au<br />

www.shodan.com.au<br />

SPORT EXPERIENCES<br />

GLOBAL GAMES ONLINE<br />

http://globalgamessports.com<br />

MEDIA<br />

DATA & INFORMATION SUPPLIERS<br />

EURODATA<br />

www.eurodatatv.com<br />

SPORTS STATISTICS & INFORMATION<br />

SYSTEMS<br />

www.sportstat.co.uk<br />

STATS<br />

www.stats.com<br />

SportBusiness <strong>International</strong> • No. 152 • 12.09 79


www.sportbusiness.com/marketplace/organisations CLASSIFIED<br />

MEDIA OWNERS<br />

We analyze<br />

all Sport TV ratings<br />

worldwide<br />

Contact<br />

Florent SIMON<br />

fsimon@eurodatatv.com<br />

We speak TV<br />

BRABNERS CHAFFE STREET<br />

www.brabnerschaffestreet.com<br />

EUROSPORT<br />

www.eurosport-tv.com<br />

NEW MEDIA<br />

DIGITAL INK SOLUTION LTD<br />

www.digital-ink.co.uk<br />

INFRONT<br />

www.infrontsports.com<br />

STATS<br />

www.stats.com<br />

PROFESSIONAL SERVICES<br />

ATHLETE MANAGEMENT<br />

UK T&I<br />

www.uktradeinvest.gov.uk<br />

LAWYERS<br />

BRABNERS CHAFFE STREET<br />

www.brabnerschaffestreet.com<br />

CLARKE WILLMOTT<br />

www.clarkewillmott.com<br />

DAVIES ARNOLD COOPER<br />

www.dac.co.uk<br />

DLA PIPER<br />

www.dlapiper.com<br />

EATON SMITH LLP<br />

www.eatonsmith.co.uk<br />

HAMMONDS<br />

www.hammonds.com<br />

RAJAH & TANN LLP<br />

www.rajahtann.com<br />

ROCKSTAR LEGAL<br />

www.rockstarlegal.co.uk<br />

SCHILLINGS<br />

www.schillings.co.uk<br />

SPORT RESOLUTIONS<br />

www.sportresolutions.co.uk<br />

THE SPORTS CONSULTANCY<br />

www.thesportsconsultancy.com<br />

KENTARO<br />

http://kentaro.hdlab2.de<br />

PGA EUROPEAN TOUR<br />

www.europeantour.com<br />

PROSKE GROUP<br />

www.proskegroup.com<br />

UFC<br />

http://uk.ufc.com<br />

UK T & I<br />

https://www.uktradeinvest.gov.uk<br />

VERO COMMUNICATIONS<br />

www.verocom.co.uk<br />

WORLD SPORT GROUP<br />

www.worldsportgroup.com<br />

SPORTS APPAREL<br />

HIGH STYLE MANUFACTURING<br />

www.hi-style.com<br />

GREEN LIGHT TV<br />

www.greenlight.tv<br />

HOST BROADCAST SERVICES<br />

www.hbs.tv<br />

IMG<br />

www.imgworld.com<br />

MICHOZENET<br />

http://michezonet.org<br />

WORLD SPORT GROUP<br />

www.worldsportgroup.com<br />

SERVICE & EQUIPMENT PROVIDERS<br />

AERIAL CAMERA SYSTEMS<br />

www.aerialcamerasystems.com<br />

BOWTIE<br />

www.bowtietv.com<br />

CREATIVE TECHNOLOGY<br />

www.creative.com<br />

EVS BROADCAST<br />

www.evs-global.com<br />

MITSUBISHI ELECTRIC EUROPE<br />

www.diamond-vision.com<br />

SPORTS STATISTICS & INFORMATION<br />

SYSTEMS<br />

www.sportstat.co.uk<br />

STATS<br />

www.stats.com<br />

CLOVER MARKETING<br />

www.cmlsports.co.uk<br />

MANAGEMENT CONSULTANTS<br />

TRAVEL & TOURISM<br />

IMG<br />

www.imgworld.com<br />

INTER SPORT CLUBE<br />

www.internacional.com.br<br />

KENTARO<br />

http://kentaro.hdlab2.de<br />

MICHEZONET<br />

http://michezonet.org<br />

PACE SPORTS MANAGEMENT<br />

www.pacesportsmanagement.com<br />

TYLER SPORTS<br />

http://tylersports.co.uk<br />

FINANCIAL SERVICES & ACCOUNTANTS<br />

FX4SPORT<br />

www.fx4sport.com<br />

GRANT THORNTON<br />

www.grantthornton.com<br />

PROSKE GROUP<br />

www.proskegroup.com<br />

SAFFERY CHAMPNESS<br />

www.saffery.com<br />

INSURANCE & RISK MANAGEMENT<br />

AIRTON RISK MANAGEMENT<br />

www.airtonrisk.com<br />

MARSH SPORTS PRACTICE<br />

www.marsh.co.uk<br />

TAKE FIVE SPECIAL RISKS<br />

www.takefiveinsurance.com<br />

IT, SOFTWARE, TECHNOLOGY<br />

INTERFUSE<br />

www.interfuse.net<br />

COFFEY COMMERCIAL ADVISORY<br />

www.coffey.com<br />

JON TIBBS ASSOCIATES<br />

www.jtassocs.com<br />

PMPGENESIS<br />

www.pmpgenesis.com<br />

STRATEGIC LEISURE<br />

www.strategicleisure.co.uk<br />

TRANSLATION AND LOCALISATION<br />

KOMMUNICERA<br />

http://corporate.kommunicera.se<br />

PROPERTIES<br />

RIGHTS HOLDERS<br />

DORNA SPORTS<br />

www.dorna.com<br />

ENGLAND & WALES CRICKET BOARD<br />

www.ecb.co.uk<br />

EUROSPORT<br />

www.eurosport-tv.com<br />

EVENT SCOTLAND<br />

www.eventscotland.org<br />

FAST TRACK<br />

www.fast-track-events.com<br />

FEI<br />

www.fei.org<br />

IMG<br />

www.imgworld.com<br />

INFRONT<br />

www.infrontsports.com<br />

JON TIBBS ASSOCIATES<br />

www.jtassocs.com<br />

SPORTS TELEVISION<br />

DISTRIBUTION COMPANIES &<br />

SYNDICATORS<br />

APPARENT GRAVITY MEDIA<br />

http://apparentgravity.com<br />

COTTERILL & ASSOCIATES<br />

www.cotterillassociates.com<br />

EUROSPORT<br />

www.eurosport-tv.com<br />

GREEN LIGHT TV<br />

www.greenlight.tv<br />

IMG<br />

www.imgworld.com<br />

INFRONT<br />

www.infrontsports.com<br />

PRODUCTION COMPANIES<br />

APPARENT GRAVITY MEDIA<br />

http://apparentgravity.com<br />

FAST TRACK<br />

www.fast-track-events.com<br />

LOGISTICS: AIR, COACH, RAIL<br />

AIR PARTNER<br />

www.airpartner.com<br />

DUBAI DUTY FREE<br />

www.dubaidutyfree.com<br />

MIKE BURTON SPORTS TRAVEL<br />

www.mikeburton.com<br />

THE CO-OPERATIVE<br />

www.co-operativetravel.co.uk<br />

SPORTS TRAVEL MANAGEMENT<br />

GULLIVERS SPORTS TRAVEL<br />

www.gulliverstravel.co.uk<br />

TRAVELEADS<br />

www.traveleads.co.uk<br />

TOURIST BOARDS<br />

ACC LIVERPOOL<br />

www.accliverpool.com<br />

CITY OF MANCHESTER<br />

www.visitmanchester.com<br />

EVENT SCOTLAND<br />

www.eventscotland.org<br />

SHEFFIELD CITY COUNCIL<br />

www.sheffield-lightingtheflame.com<br />

80 SportBusiness <strong>International</strong> • No.152 • 12.09


THE GLOBAL SPORTS SERVICES DIRECTORY<br />

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THE<br />

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Contact: brian.williams@sportbusiness.com<br />

+44 (0) 207 954 3415


PEOPLE<br />

hard work. On a personal level I would have to<br />

choose attending the two UEFA Champions<br />

League winning finals in 1999 & 2008.<br />

And the worst<br />

Two come to mind: pulling some exhausting<br />

all-nighters to complete the foreign language<br />

web sites in time for the team’s Asia Tour in<br />

2007 and on a personal note, seeing the huge<br />

disappointment on my daughter’s face after the<br />

FA Cup final defeat to Chelsea at Wembley.<br />

MR INTERACTIVE<br />

Mark Hargreaves, COO, Knowledge MGI, on the new challenge<br />

of working within the wider sport and technology space and the<br />

joys, after over 12 years spent working at Manchester United, of<br />

reverting to being simply a fan.<br />

Mark Hargreaves has headed south to join the<br />

London-based consultancy company Knowledge<br />

MGI as Chief Operating Officer after over a<br />

decade’s service with the reigning Premier<br />

League Champions.<br />

At Manchester United he headed up the New<br />

Media division, becoming the General Manager<br />

of Manchester United Interactive where he ran<br />

ManUtd.com one of the world’s most successful<br />

sports websites for over seven years.<br />

He also spearheaded the development of four<br />

sister multi-lingual sites for Asia and the Middle<br />

East, working with major brands, support<br />

service companies, major domestic and global<br />

sponsors, licensees and the club’s charity arm,<br />

the Manchester United Foundation.<br />

What was your introduction to the world of sport<br />

and business<br />

My transition to the new media arm of sports<br />

business was a natural segue from the telecoms<br />

industry where I began my career in the mid<br />

80’s - a time that saw exponential growth year on<br />

year in the technology space. Then the attraction<br />

to work for the football club that I also supported<br />

was an enormous draw and I found Man Utd’s<br />

aspirations both on and off the field irresistible.<br />

Being able to now take that accumulated<br />

sports industry and new media acumen, and<br />

work with a boutique management consultancy<br />

within the wider sport and technology space is<br />

my latest irresistible challenge.<br />

Who would you say has had the biggest<br />

influence on your career<br />

Having worked for the club for over 12 years and<br />

witnessed the CEO, David Gill, at close quarters,<br />

I would have to pick him. The dignified way in<br />

which he has managed the business over the<br />

years and especially during the contentious<br />

period of transition when the club went from<br />

being a public company to Glazer-family private<br />

ownership has always been very inspiring.<br />

What has been the best moment in your career<br />

in the sport industry<br />

From a business perspective - winning a Webby<br />

Award. The Webbys are the leading international<br />

awards that honour excellence on the Internet.<br />

ManUtd.com won one in 2007 and I flew over<br />

to New York receive it on behalf of the club. A<br />

fantastic experience if a surreal one too - getting<br />

to share the stage with David Bowie and the You<br />

Tube founders. The win was a huge boost for all<br />

involved in the gargantuan build of ManUtd.com<br />

and a terrific acknowledgement of everyone’s<br />

How was the experience of working for such an<br />

expressive football brand as Manchester United<br />

Well during this halcyon period for the club I<br />

have accumulated six Premier League titles, two<br />

European Cups, two FA Cups, two League Cups<br />

and numerous other trophies! It goes without<br />

saying that to work for Manchester United was<br />

an honour and a fantastic experience. I am<br />

however now looking forward to being able to<br />

watch a match without obsessively checking<br />

the digi-boards, looking at my phone for alerts,<br />

or monitoring the website to make sure that<br />

everything is working and instead become a<br />

fan again. I’ll let you know how long it takes to<br />

reverse the process.<br />

What is on the horizon for you in the next phase<br />

of your career at Knowledge<br />

Knowledge is an ideas driven service. We analyse<br />

business problems, then tactically problem-solve<br />

to create strategy and operational improvements<br />

through objective business insight and<br />

mentoring, ultimately making positive changes<br />

for our clients.<br />

Straight out of the gate I am working on<br />

a project for a client called Ve Interactive, a<br />

company delivering online efficiency solutions<br />

(CEM - Customer Experience Management)<br />

which has developed a patent-pending shopping<br />

cart/form abandonment software. Abandonment<br />

is one of the biggest problems that website<br />

operators face in terms lost online revenues.<br />

What do you see as the biggest challenges and<br />

opportunities for sports in the interactive arena<br />

Two of the biggest challenges and opportunities<br />

for sports and new media remain those of how to<br />

monetise content (ie. turn fans in to customers)<br />

and how to transact abroad. Knowledge is<br />

working with a client, Krores which is a global<br />

supplier of bespoke technology-based financial<br />

services, (including payment technologies) that<br />

is breaking into this very space.<br />

Another area of opportunity is the harnessing<br />

of social media from fan base, marketing<br />

reach, brand awareness and online revenue<br />

perspectives. The benefits of which can leak into<br />

other areas of a sport’s brand too, for example<br />

boosting sponsorship opportunities.<br />

82 SportBusiness <strong>International</strong> • No. 152 • 12.09


Because Sport<br />

Reflects Society<br />

Jorge Andreu, A. Bahi – Cimo.<br />

The Global Sports Forum Barcelona 2<strong>01</strong>0 will once again<br />

unite over 1000 delegates and media representatives<br />

from around the world, to encourage and provoke<br />

debate, action and reaction on today’s hottest issues<br />

facing sport: sustainability, education, politics, culture<br />

and business.<br />

Juan Antonio Samaranch<br />

Together we will produce considered policy<br />

recommendations to be shared by the wider<br />

international sporting community.<br />

Donna de Varona<br />

Join us in Barcelona<br />

8-10 March 2<strong>01</strong>0,<br />

and become a player<br />

for change.<br />

Samuel Eto’o<br />

For information and registration visit us at:<br />

WWW.GLOBALSPORTSFORUM.ORG<br />

MAIN PARTNER INTERNATIONAL MEDIA NATIONAL MEDIA<br />

<strong>Network</strong>ing area


PRETORIA, SOUTH AFRICA - JUNE 18: Gilberto Silva of Brazil battles with Jonathan Spector of USA during the <strong>FIFA</strong> Confederations Cup Group B<br />

match between USA and Brazil at the Loftus Versveld Stadium on June 18, 2009 in Pretoria, South Africa.<br />

88561627, Mike Hewitt/<strong>FIFA</strong> via Getty Images<br />

SINGAPORE - SEPTEMBER 26: Heikki Kovalainen of Finland and<br />

McLaren Mercedes drives during qualifying for the Singapore<br />

Formula One Grand Prix at the Marina Bay Street Circuit on<br />

September 26, 2009 in Singapore.<br />

91168528, Clive Mason/Getty Images Sport<br />

VAL D'ISERE, FRANCE - FEBRUARY 04: Lars Elton Myhre of Norway<br />

competes during the Men's Super G event held on the Face de Bellevarde<br />

course on February 4, 2009 in Val d'Isere, France.<br />

84621915, Clive Mason/Getty Images Sport

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