Sports Marketing & Sponsorship - FIFA/CIES International University ...

Interview with Orlando Salvestrini“We have enjoyed ten consecutiveyears of positive cashflow andincreased our net equity by 859% fromaround $4 million to $40 million.”their hometown clubs. In order to compensate for thelack of passion from their fans, they are very good atputting on a show. They are as much event managersas they are managers of sports clubs. The facilities areprobably the best in the world and we can learn agreat deal from their sports clubs and their innovationsin loyalty management schemes.OS: We expect to gain income from the sale ofinternational TV rights, some tours to overseas marketsto promote the club and through sales of clubmerchandise overseas. Every July and August we willembark on overseas trips in order to develop ourrelationship with overseas fans. Ticket sales inArgentina average only about $8 or £4, compared tothe £30–£40 for the Premier League. While we attractbig crowds, our total revenue from tickets is minusculecompared to all clubs in the Premier League and eventhe Championship. We are also continuing ourinternational expansion and have set up aninternational division to help increase our presenceand maximise revenue in overseas markets. While wedon’t want to have to sell players, we are confidentthat we will continue to develop excellent playersthrough our development centres. We are proud of ourability to spot and nurture young talent.NW: You spent some time living and working in theUnited States and I know that you admire the waythat professional sports leagues are run, but whatcan we learn from their sports business?OS: I think it is important to bear in mind thatprofessional sport in the USA also benefits fromlucrative TV deals. Nevertheless, there are other thingsto admire about sports marketing there. Theirphilosophy is clearly based on managing consumerrelationships as a way of generating loyalty. Theyseem able to attract new fans to their sports. Americanpeople appear to be more mobile in the pursuit oftheir careers and are attracted by the sports brandsthat have been created and seem to be less loyal toNW: Can you tell us more about the changes at BocaJuniors over the past ten years? I understand thatyou have enjoyed considerable success.OS: Yes, we are very proud of our achievements overthe last ten years. We have enjoyed ten consecutiveyears of positive cashflow and increased our net equityby 859% from around $4 million to $40 million. Ourmarketing revenues have increased by 286% from $2million to $8 million, with a 47% increase in newmembers from 40,000 to 58,000 and an increase inseason ticket holders of 111%, from 7,000 to15,000. We set out a clear plan to turn round theclub and we are pleased with the results so far, butthere is still a long way to go. You also have to bear inmind that our clubs are owned by members, so it isn’tcurrently possible for private investors to buy our clubsand inject capital.NW: I know that you have invested a considerableamount of time in developing merchandising at theclub, but are you able to share the results with us?OS: Certainly. As I said earlier the Boca brand has ahuge following and we have set in placemerchandising strategies to enable more people to buyBoca merchandise. Our research tells us that of all thefootball merchandise sold by Argentinian clubs, wesell an incredible 75% or around $70 million. Wehave around 115 licensees, an increase of 56% inthree years and a range of 935 products. We have adedicated merchandise truck that travels aroundArgentina selling merchandise to Boca fans, a fleet oflicensed taxis, a themed club bar, retail outlets andeven our own cemetery! Our museum has alsoINTERVIEW● APRIL 2009 ● International Journal of Sports Marketing & Sponsorship 201