SPORTEL BRIEFING TVSPORTSMARKETS - Rio de janeiRo March 2012 - EVS Broadcast Equipment
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TVSPORTSMARKETS
SPORTEL BRIEFING
Rio de janeiRo March 2012
• No.165 • 11
TVSPORTSMARKETS
spoRtel bRiefing | March 2012
Dear Sportel Delegate, contents
A warm welcome to the TV Sports Markets Sportel Briefing for Sportel 48 bEyoNd thE old coNtiNENt
Rio 2012. The Briefing is designed to provide delegates with a recap of the The big sports rights agencies are gaining strategic
big stories since the last Sportel conference, and a snapshot of the in-depth footholds in the ‘Brics’ and other emerging markets.
coverage of the industry that is available to TV Sports Markets subscribers.
50 MEtEoric riSES for local football
You’ll find a selection of articles from the TV Sports Markets newsletter South America’s football leagues are enjoying huge
beginning on page 18. The selection covers some of the most significant and growth in domestic rights fees.
intriguing stories in the industry since last October, including: Eurosport’s
big deals to hang on to French and US Open tennis rights; Al Jazeera’s grab 53 thE top 10 dEalS
of Champions League rights in France from Canal Plus; the International The 10 most valuable sports rights deals since Sportel
Association of Athletics Federations ditching IEC in Sports for the European Monaco 2011.
Broadcasting Union; and Fifa’s big fee increases for World Cup football in Asia.
54 califorNia StrEaMiNg
We have also produced a selection of feature articles exclusively for the briefing, Google and Apple have been linked with major rights
including a top 10 of the most valuable sports rights deals in the world since buys, but are not expected to seriously challenge yet.
Sportel Monaco last October, a map and analysis of the explosive growth in
domestic league football rights fees in South America, and a feature on the 56 ioc aNd uEfa warM to pay-tV
companies trying to stimulate the rights market in sub-Saharan Africa. How pay-television shifts could impact audiences for
this summer’s biggest sports events.
For the very latest news from the sports television business, look out for the
58 thE froNtiErSMEN
new edition of the TV Sports Markets newsletter, copies of which will be freely
The companies that could reignite rights fee growth
available from the press stand at Sportel Rio.
in sub-Saharan Africa.
Our staff will also be present at the conference. Please feel free to get in touch 60 thE big dEbatE
using the contact details below. For enquiries about accessing TV Sports Four industry leaders on the impact of the mounting
Markets content, or advertising in the next edition of the Sportel Briefing, Eurozone economic problems on rights fees.
call Paul Santos, our business development manager.
62 NEwS rEViEw
We wish you a productive and enjoyable Sportel Rio 2012. Cuttings from the news pages of TV Sports Markets
since October 2011.
Frank Dunne
Editor 66 adVErtiSEr profilES
TV Sports Markets Profiles and contact details of our advertisers.
the tV spoRts MaRkets teaM
frank dunne kevin Mccullagh dan horlock paul santos hady al-Malazi
Editor digital News Editor Senior reporter head of Sales & commercial Senior account Manager
frank@tvsportsmarkets.com kevin@tvsportsmarkets.com dan@tvsportsmarkets.com paul.santos@tvsportsmarkets.com hady@sportbusiness.com
(mob) +39 34 95 84 64 23 (mob) +44 78 55 36 37 06 (mob) +44 75 05 73 67 30 (mob) +44 79 31 39 05 02 (mob) +44 7866689444
+39 051 523 815 +44 207 954 3509 +44 207 954 3283 +44 207 954 3483 +44 207 954 3484
www.tVSportSMarkEtS.coM
SportBusiness International • No.176 • 03.12 47
spoRtel bRiefing | March 2012
BEYOND ThE
OLD cONTINENT
fRank dunne, Editor of tV SportS MarkEtS, lookS at how SEVEral of
thE iNduStry’S Major SportS rightS agENciES arE gaiNiNg a StratEgic
foothold iN thE world’S MoSt rapidly dEVElopiNg MarkEtS.
The bulk of the value of the global sports and a good economic growth rate. It is a typically run for between 10 and 20 years.
rights market lies in two regions, the US and market which is good for sport, particularly “We position ourselves as a one-stop solution
Europe, and will continue to do so for many football. There is a really strong emotional for stadium owners. We have a background in
years. But the tectonic plates of the world’s attachment to the game there. So it’s a country football marketing with many top European
economy have been shifting irreversibly which is attractive for the entire Lagardère football clubs, so we understand marketing
over the last 20 years and while the US and Unlimited group.” A successful stadium and sales and how to manage match-day
European economies flatline, there has been venture could open up opportunities in the activities. We want to actively demonstrate
exuberant growth in Asia and Latin America. region for other Lagardère activities, such what we say when consulting. We are not just
Agencies have been forced to expand as football club or federation marketing. some theoretical guys, we are hands-on. We
their horizons to make sure that know how to plan intelligently so that
they do not miss out on the a stadium can deliver for its owners in
potential these markets represent. “China, Brazil and India are complex and the long term, not just for three to five
Major players like IMG Media, matches during a World Cup,” he said.
Infront Sports & Media, Lagardère difficult markets, and having powerful, well- While the rewards in the stadium
Unlimited and MP & Silva are resourced and influential partners is vital.” business can be high, Ruhnau pointed
jostling to secure strategic long- out that there are also risks. “In football
term positions in these territories. iMg Media stadiums, about 70 to 80 per cent
Lagardère Unlimited has been of the economic success is related to
expanding its Stadium Solutions the key tenant. In Brazil, as in other
division on the bedrock of the work that The Brazilian football federation has selected football countries, that usually means the
its Sportfive subsidiary has done in Europe 12 stadiums for the 2014 World Cup and well home club. A further 10 to 15 per cent
in the sector. With Brazil and Russia set over $1 billion (€763 million) is expected could be linked to concerts and other
to host the Fifa World Cup in the next six to be spent on stadium renovation alone. major events hosted by the stadium. The
years, two of the world’s growth markets Ruhnau said that Lagardère had “identified rest comes from conferences, stadium tours
are presenting a golden opportunity. Ulrik several projects where we can integrate our and other activities. There is insecurity in
Ruhnau, managing director of Lagadère know-how. We want to be involved, post- the business plan because a club could be
Unlimited Stadium Solutions, told TV construction and after the World Cup, in relegated to the second- or third-tier league.”
Sports Markets that the company intended the usage and management of facilities for MP & Silva is another agency with a
to be fully involved in both countries. The the long term. Over the last 24 months all European DNA which is increasingly looking
company is currently heavily involved in the big players have been in Brazil, but with further afield. The agency has expanded its
talks with potential partners in Brazil. a few exceptions, things are still open.” operations in Asia to the point where business
“Brazil is a highly attractive market for The company’s preference is to agree long- in the region now accounts for over a third
us,” Ruhnau said. “It has a young population term stadium management agreements, which of its turnover. Among other sports content,
48 SportBusiness International • No.176 • 03.12
Getty Images Sport
the agency distributes football rights for top innovation – including digital strategy and the attractive Asian market and vice versa.”
leagues such as England’s Premier League, on social media portals. Our objective is to The key strategic instrument in the global
Italy’s Serie A and Spain’s La Liga. “Today, contribute to the success of the Olympic expansion of IMG Media has been the
we are the leading international agency in Asian sports movement and improve its joint venture, which has been the agency’s
Asia for football,” company chief executive reach to other regions of the world.” gateway to China, Brazil and India. “Each
Andrea Radrizzani told TV Sports Markets. Infront Sports & Media has looked is a complex and difficult market for a
The agency has created strong broadcaster to China and to basketball as part of its combination of political and cultural reasons
relationships in two Asian markets – Japan expansion. It began working on marketing and having powerful, well-resourced and
and Vietnam – where other rights-holders and development with the Chinese Basketball influential partners,” a director of IMG said.
have sometimes struggled to get value. Association in 2005 and last year renewed The contacts book of the late Ted
“Our success in those two markets is its deal through to 2018. The agency has Forstmann, the former owner of IMG,
based on an innovative approach: we offer helped to secure more live coverage for the ensured that the agency’s chosen partners
customised content packages based on CBA league on state channel CCTV5 and had those qualities – power, influence and
the scheduling possibilities and budgets increased exposure on regional networks money – in abundance. In 2011, IMG’s Indian
of broadcasters,” Radrizzani said. across China. Perhaps more significantly as a joint-venture partner Mukesh Ambani was
“The first phase of our Asian presence,” staging post in the league’s growth, it is being ninth in the Forbes rich list, with a net worth
he added, “was based on supporting broadcast for the first time to the North of $22.6 billion. One place ahead of him
rights-holders to penetrate in new and American market through a deal with One was IMG’s partner in Brazil, Eike Batista,
unknown markets. The next phase was to World Sports, the Asian sports broadcaster. chairman of the EBX group, with a net worth
build MP & Silva’s wide portfolio of rights Basketball is likely to be just the of $30 billion. In China, IMG has partnered
and provide additional services to rights- bridgehead, with the agency now studying with the state broadcaster CCTV which,
holders in terms of financial guarantees, other sports properties in the country. directly or indirectly, controls pretty much
distribution, reports and marketing.” Infront told TV Sports Markets: “Since everything that moves in the broadcaster
The most recent example of the agency’s the beginning of our collaboration with market of the world’s most populous nation.
development in the region came with the deal the Chinese Basketball Association, we In India, the fruits of the venture have
in January with the Olympic Council of Asia have established a strong position and been a 15-year, $160 million agreement with
to distribute the global media rights for the reputation in the Chinese sports market. the All India Football Federation to develop
2014 Asian Games. “Having the chance to This leading position in China is of high the game at all levels in the country, and a
be part of the Asian Games’ media strategy strategic importance for the Infront Group, 30-year deal with the Basketball Federation
and distribution is incredibly rewarding as it guarantees access to one of the world’s of India to do the same. IMG recently held
for us,” Radrizzani said. “We will also act strongest growth markets and a flourishing talks with David Stern, commissioner of US
as media adviser in order to guarantee the economy. Infront is connecting internationally basketball league the NBA, about establishing
highest level of production guidelines and successful sport disciplines and brands to a professional basketball league in the country.
SportBusiness International • No.176 • 03.12 49
spoRtel bRiefing | March 2012
METEOrIc
rISES FOr dan hoRlock lookS at thE big
iNcrEaSES iN doMEStic football
rightS fEES iN South aMErica
LOcaL FOOTBaLL
the south aMeRican sports media cable operators Une and Telmex, and telco year, the Asociación Uruguaya de Fútbol,
market is booming and the region’s Telefónica, which is significantly lower than the Uruguayan football association, which
dominant sport – football – is central to the the proposed figure of more than $200 million. sells the rights for Uruguay’s first- and
rise, dominating the sporting landscape. The other reason for the scale of the second-tier football leagues, accepted an
International football properties increase was the extremely low fee in the offer from incumbent rights-holder the
including the Uefa Champions League/ previous five-year contract from 2007 to Tenfield agency to extend its contract until
Europa League, Italy’s Serie A and Spain’s 2011, which was the first ever pay-television 2021. The offer included an increased fee
La Liga have all recently seen huge increases contract for Colombian football. for the remainder of the current contract
in the region in their new deals. But the First and second-tier league football in period, running until 2016, as well as an
most valuable football properties in each Chile is shown on the Canal del Fútbol, the increase in the new term, beginning in 2017.
territory are the domestic leagues. league’s own channel. The 295 per cent However, the association has now taken the
The size of some of the percentage increases increase is based on a comparison of the unusual step of giving up its collective selling
(see map) highlights the infancy of the media rights fee in the last season of the last rights role to allow the 29 clubs to individually
markets in some of these territories and agreement between the league and pay- negotiate their own media-rights deals. It
the rapid growth they have experienced in television broadcaster DirecTV in 2002, and made the decision, some local experts claim, in
recent years. Brazil and Argentina have the the two revenue streams (the rights fee and an attempt to scupper the collectively-agreed
most valuable leagues but, as more mature the profits from the channel’s distribution) extension with Tenfield. The association
markets, their rate of growth is slower. generated by the channel in 2011. has been working behind the scenes to put
In Colombia, the league’s governing The channel was launched in 2003 together a better offer for the clubs, which
body has targeted a 1,500-per-cent fee and turned profitable in 2008, after could include launching its own channel.
increase for the five-year period from 2012 five years of either making losses or Brazil, the biggest market in the region
to 2016, compared to the previous contract. breaking even. In October 2010, the by some margin, has by far the most
At time of going to print, the Dimayor consultancy PricewaterhouseCoopers valuable domestic league, Campeonato
(División Mayor del Fútbol Profesional valued it at close to $700 million. Série A, worth about $600 million per
Colombiano), the body responsible for In terms of a straight broadcaster/rights- season. It is also the most valuable sports-
the country’s top two divisions, had only holder agreement, the biggest percentage rights property in Latin America.
managed to raise close to 20 per cent of its increase in the region was in Paraguay, at The 140-per-cent increase in rights fees
$260 million (€198 million) target, signing 275 per cent. The steep increase from the from the previous deal followed the move
non-exclusive deals with pay-television previous deal was due to intense competition from collective selling with Clube dos
broadcasters DirecTV and Supercable, in the market between incumbent rights- 13, the organisation which had previously
and cable operator Comunitarias TV. holder, sports broadcaster Teledeportes, represented the top 20 football clubs in Brazil,
The Dimayor, until now, has stood firm owned by the Argentinian media group to individual selling by the clubs. Brazilian
on its strategy of selling the rights on a Grupo Clarín, and telco Tigo, a subsidiary of media group Globo negotiated deals ranging
non-exclusive basis, setting a price for each Millicom International Cellular. Teledeportes’ from three to four years with individual
bidder related to the size of the operator’s new eight-year deal will begin in 2013. clubs, covering the period 2012 to 2015.
customer base. It has refused to accept a joint The projected 240-per-cent increase The Clube dos 13 had issued a
bid from incumbent rights-holder Alianza, a in Uruguay is based on a value that is yet tender in mid-February 2011, which
joint venture between Colombia’s two largest to be realised in the new deal. Earlier this was cancelled after Globo and rival
50 SportBusiness International • No.176 • 03.12
broadcaster Record refused to take part. PrOJEcTED aND SEcUrED PErcENTaGE INcrEaSES IN
The Argentinian Primera División DOMESTIc rIGhTS FEES FOr LOcaL FOOTBaLL LEaGUES
is the region’s second-biggest league
in terms of rights value, although the
140-per-cent increase it achieved for
its most recent contract was inflated
due to political intervention.
In 2009, the Argentinian government
launched its ‘fútbol para todos’ (‘football for
20%
everyone’) scheme in which it acquired the
broadcasting rights to the league from 2009- 1500%
10 to 2018-19 to ensure matches were shown
on free-to-air television. The government
has made huge losses on the rights.
The government deal replaced a
35%
seven-year agreement, from 2007-08 to
2013-14, between Televisión Satelital
Codificada, which is owned by the
Torneos y Competencias agency and
Grupo Clarín, and the Asociación del
Fútbol Argentino, the Argentinian football
association. The matches were broadcast 140%
on pay-television under the old deal.
In Ecuador, the expected 35-per-cent rise
in the fee for the top-tier football league, Serie
A, is based on the prospective centralisation 5%
of the league’s media rights from next season
by the Federación Ecuatoriana de Fútbol, the
275%
Ecuadorian football federation. At present the
clubs sell their own media rights. However,
the federation faces serious opposition to
the centralisation plan. The seven clubs that
oppose it at present earn close to 80 per
cent of the total value of the Serie A rights.
Venezuela is the only South American
country where football is not the national
140% 240%
sport, although interest is growing, especially
in light of the country’s improving national
team. Venezuela reached the semi-final
stage at last year’s Copa América.
DirecTV and free-to-air broadcaster
Meridiano Televisión jointly acquired 295% coloMbia
rights for the Primera División from the
Federación Venezolana de Fútbol, the chile
Venezuelan football federation. DirecTV is paRaguay
the senior partner in the agreement, which
covers 2010-11 to 2012-13. The fee is a uRuguay
20-per-cent rise on the previous three-year
bRaZil
deal with pay-television operator Sport Plus.
The top-tier league in Bolivia, the region’s aRgentina
poorest nation, has the smallest media-rights
value. State-owned telco Entel signed a six-year ecuadoR
deal for the rights, from 2010 to 2015, which VeneZuela
was up only five per cent from the previous
deal with commercial broadcaster Unitel. boliVia
spoRtel bRiefing | March 2012
ThE TOP 10 DEaLS
dan hoRlock lookS at thE MoSt ValuablE SportS rightS dEalS SiNcE SportEl MoNaco 2011
the biggest deal of 2011 was signed
top ten deals since Sportel Monaco 2011
at the end of the year, as US networks CBS,
Territories Duration
Fox and NBC acquired rights for American Property Sport covered Value (years) Buyer
football’s National Football League worth 1 NFL American Football US $27.9bn 9 CBS/Fox/NBC
a combined $27.9 billion (€23.3 billion) 2 MLB: Los Angeles Angels of Anaheim Baseball US $3bn 20 Fox Sports West
over nine years, or $3.1 billion per year. The 3 Fifa World Cup and other events Football US $1.1bn 8 Fox/Telemundo
deal, which will begin from the 2014-15
4 Fifa World Cup and other events Football Asia* $600m 8 Infront Sports & Media
season, was a 63-per-cent increase on the
5 NCAA US College Sport US $500m 13 ESPN
three broadcasters’ current deals worth
6 Italian Serie A Football International $460m 3 MP & Silva
$1.9 billion per year. The three networks will
7 Uefa Champions League Football France $436m 3 Al Jazeera/Canal Plus
each televise three Super Bowls during the term
of the deals, continuing the current rotation. 8 England and Wales Cricket Board Cricket UK $377m 4 BSkyB
Another deal signed in December was US 9 French Ligue 1 Football France $314m 4 Al Jazeera
regional sports network Fox Sports West’s 10 Six Nations Rugby Union UK $257m 4 BBC
reported $3 billion agreement with Major Based on the exchange rates on January 31: €1 = $1.31 / £1 = $1.57
*Deal excludes the markets of Japan, Korea and Malaysia.
League Baseball’s Los Angeles Angels of
Anaheim. The Angels had market conditions in
their favour during the negotiations, with Fox dominance at the top of the deals table, was European football’s governing body, agreed for
keen to secure the rights due to a dispute with pay-television sports broadcaster ESPN’s all live matches except the final to be shown
another MLB team, the Los Angeles Dodgers, 13-year extension, from 2011 to 2024, to its exclusively on pay-television for the first time.
which could have resulted in the broadcaster deal with the National Collegiate Athletic The biggest deal in the UK over the
losing the rights to Dodgers matches. Fox had Association, the US college sport organising period was the England and Wales Cricket
also lost the rights for National Basketball body, worth just over $500 million. The deal Board’s renewal with pay-television operator
Association team the Los Angeles Lakers to covers non-exclusive rights outside the US, BSkyB, understood to be worth about
rival network Time Warner Cable earlier in its territories and Bermuda to the Division I £240 million (€286 million/$377 million)
the year. The Angels’ new deal begins in 2012. men’s basketball championship – the annual over four years from 2014 to 2017. The amount
Completing a US top three was the Fifa ‘March Madness’ tournament – and rights in was down by eight per cent on the value of the
World Cup deal for 2018 and 2022 with the US to 24 other NCAA championships. ECB’s current deal, which expires in 2013.
pay-television broadcaster Fox, Spanish- The MP & Silva agency’s acquisition The second deal in France to make
language broadcaster Telemundo, owned by of the international rights for Lega Serie the top 10 was Al Jazeera’s €240 million,
NBCU, and Spanish-language radio operator A, Italy’s top football league, worth four-year deal with the Ligue de Football
Fútbol de Primera, worth a combined €351 million ($460 million) over three Professionel, the French football league, for
$1.1 billion. The deal represented a 159-per- seasons from 2012-13, was the most valuable a package of live domestic rights for the
cent increase on the $425 million that football’s European deal over the period. The deal top-tier Ligue 1. The deal covers pay-per-
world governing body generated from the US represented a 29-per-cent increase on the view rights for six live Ligue 1 matches per
market for the 2010 and 2014 tournaments. €90.75 million per season MP & Silva pays week, plus a weekly highlights show. Al
Fifa’s second entry in the top 10 was in its current two-year deal for the rights. Jazeera is paying a further €360 million in
for its 2018 and 2022 World Cup rights The first of two French deals in the top the same cycle for two other live matches
in Asia, in a deal with the Infront Sports 10 was for the rights to the Uefa Champions per week under a deal with the league agreed
& Media agency worth $600 million. League for three seasons from 2012-13. last year. Al Jazeera plans to launch two
The deal was up over 70 per cent from the Pay-television broadcasters Al Jazeera pay-television channels in France this year.
$350 million paid by Football Media Services, and Canal Plus paid €183 million and Concluding the top 10 is UK public-
a joint venture between the Dentsu agency €150 million respectively for the rights, service broadcaster the BBC’s £41 million-
and Infront, for the 2007-2014 rights giving Uefa a combined income of per-year deal for Six Nations rugby union
period, covering the 2010 and 2014 World €333 million, or €111 million per season, rights. The fee remained flat from the
Cups. Both deals excluded the lucrative up from about €56 million per season at previous agreement and shed light on the
markets of Japan, Korea and Malaysia. present. The deal marked a new era for the broadcaster’s priorities, as it implements a
At number five, and ensuring US competition in France, as rights-holder Uefa, 15-per-cent cut in its sports-rights budget.
SportBusiness International • No.176 • 03.12 53
12:03:56
sportel briefing | march 2012
THE TOP 10 DEALS
DAN HORLOCK LOOKS AT THE MOST VALUABLE SPORTS RIGHTS DEALS SINCE SPORTEL MONACO 2011
THE BIGGEST DEAL of 2011 was signed
Top Ten Deals since Sportel Monaco 2011
at the end of the year, as US networks CBS,
Territories Duration
Fox and NBC acquired rights for American Property Sport covered Value (years) Buyer
football’s National Football League worth 1 NFL American Football US $27.9bn 9 CBS/Fox/NBC
a combined $27.9 billion (€23.3 billion) 2 MLB: Los Angeles Angels of Anaheim Baseball US $3bn 20 Fox Sports West
over nine years, or $3.1 billion per year. The 3 Fifa World Cup and other events Football US $1.1bn 8 Fox/Telemundo
deal, which will begin from the 2014-15
4 Fifa World Cup and other events Football Asia* $600m 8 Infront Sports & Media
season, was a 63-per-cent increase on the
5 NCAA US College Sport US $500m 13 ESPN
three broadcasters’ current deals worth
6 Italian Serie A Football International $460m 3 MP & Silva
$1.9 billion per year. The three networks will
7 Uefa Champions League Football France $436m 3 Al Jazeera/Canal Plus
each televise three Super Bowls during the term
of the deals, continuing the current rotation. 8 England and Wales Cricket Board Cricket UK $377m 4 BSkyB
Another deal signed in December was US 9 French Ligue 1 Football France $314m 4 Al Jazeera
regional sports network Fox Sports West’s 10 Six Nations Rugby Union UK $257m 4 BBC
reported $3 billion agreement with Major Based on the exchange rates on January 31: €1 = $1.31 / £1 = $1.57
*Deal excludes the markets of Japan, Korea and Malaysia.
League Baseball’s Los Angeles Angels of
Anaheim. The Angels had market conditions in
their favour during the negotiations, with Fox dominance at the top of the deals table, was European football’s governing body, agreed for
keen to secure the rights due to a dispute with pay-television sports broadcaster ESPN’s all live matches except the final to be shown
another MLB team, the Los Angeles Dodgers, 13-year extension, from 2011 to 2024, to its exclusively on pay-television for the first time.
which could have resulted in the broadcaster deal with the National Collegiate Athletic The biggest deal in the UK over the
losing the rights to Dodgers matches. Fox had Association, the US college sport organising period was the England and Wales Cricket
also lost the rights for National Basketball body, worth just over $500 million. The deal Board’s renewal with pay-television operator
Association team the Los Angeles Lakers to covers non-exclusive rights outside the US, BSkyB, understood to be worth about
rival network Time Warner Cable earlier in its territories and Bermuda to the Division I £240 million (€286 million/$377 million)
the year. The Angels’ new deal begins in 2012. men’s basketball championship – the annual over four years from 2014 to 2017. The
Completing a US top three was the Fifa ‘March Madness’ tournament – and rights in amount was slightly down on the value of the
World Cup deal for 2018 and 2022 with the US to 24 other NCAA championships. ECB’s current deal, which expires in 2013.
pay-television broadcaster Fox, Spanish- The MP & Silva agency’s acquisition The second deal in France to make
language broadcaster Telemundo, owned by of the international rights for Lega Serie the top 10 was Al Jazeera’s €240 million,
NBCU, and Spanish-language radio operator A, Italy’s top football league, worth four-year deal with the Ligue de Football
Fútbol de Primera, worth a combined €351 million ($460 million) over three Professionel, the French football league, for
$1.1 billion. The deal represented a 159-per- seasons from 2012-13, was the most valuable a package of live domestic rights for the
cent increase on the $425 million that football’s European deal over the period. The deal top-tier Ligue 1. The deal covers pay-per-
world governing body generated from the US represented a 29-per-cent increase on the view rights for six live Ligue 1 matches per
market for the 2010 and 2014 tournaments. €90.75 million per season MP & Silva pays week, plus a weekly highlights show. Al
Fifa’s second entry in the top 10 was in its current two-year deal for the rights. Jazeera is paying a further €360 million in
for its 2018 and 2022 World Cup rights The first of two French deals in the top the same cycle for two other live matches
in Asia, in a deal with the Infront Sports 10 was for the rights to the Uefa Champions per week under a deal with the league agreed
& Media agency worth $600 million. League for three seasons from 2012-13. last year. Al Jazeera plans to launch two
The deal was up over 70 per cent from the Pay-television broadcasters Al Jazeera pay-television channels in France this year.
$350 million paid by Football Media Services, and Canal Plus paid €183 million and Concluding the top 10 is UK public-
a joint venture between the Dentsu agency €150 million respectively for the rights, service broadcaster the BBC’s £41 million-
and Infront, for the 2007-2014 rights giving Uefa a combined income of per-year deal for Six Nations rugby union
period, covering the 2010 and 2014 World €333 million, or €111 million per season, rights. The fee remained flat from the
Cups. Both deals excluded the lucrative up from about €56 million per season at previous agreement and shed light on the
markets of Japan, Korea and Malaysia. present. The deal marked a new era for the broadcaster’s priorities, as it implements a
At number five, and ensuring US competition in France, as rights-holder Uefa, 15-per-cent cut in its sports-rights budget.
SportBusiness International • No.176 • 03.12 53
upfront guarantees for the IPL and Copa market. Especially considering the only worked closely with the companies say
America on YouTube are understood to broadcaster offering nationwide free-to-air that neither Google nor Apple is yet in a
have been about $1 million – relatively coverage – state broadcaster CCTV – is position to challenge established television
small figures for live and international notorious for paying low rights fees. broadcasters for exclusive premium pay-
rights for top sports content. Given Apple Google’s recent recruitments suggest that television sports rights in major markets.
and Google’s standing in the smartphone its appetite for sport is growing. Stephen Both say that Apple and Google’s positions
market and need to push their television Nuttall, former commercial director at in the mobile, tablet and connected
products, how close are they to ramping BSkyB, joined in January as YouTube’s television spaces mean the two already
up their interest in sports rights, and senior director for sport in the Europe, make money from live sports broadcasting
competing for top-end content like English Middle East and Africa region. He will work without having to pay rights fees. There
Premier League domestic live rights? alongside the likes of former Eurosport is as yet no need for them to make the
The evidence to date suggests that the head of business development Tomos leap from being the partner of sports
world’s leading sports broadcasters are not Grace (strategic partner and development broadcasters to being their competitor.
under threat from Apple’s and Google’s manager of sport for Europe, Middle East “YouTube would be crazy to go ahead
billions in the short term. Google looks most and Africa) and former Terra head of content and compete with established broadcasters
likely to acquire sports content, but only distribution and Globosat head of content for high-value sports rights, competing
where it can do so cheaply and the content sales and distribution Federico Goldenberg against people that they are and should be
will drive large audiences to YouTube. (content partnerships at YouTube Brazil). working with,” said one. “And why should
YouTube is understood to be having Apple is considered less likely to enter the they pay to acquire second- or third-tier
conversations with most major rights-holders. races for premium exclusive sports content. sports rights when they don’t have to? The
The company’s focus is on live rights for For a start, it has no online streaming business model they have at the moment
premium sports in territories where internet platform like YouTube. Apple’s iTunes media – partnering with rights-holders and
penetration is high and so the potential download service is a successful retail system broadcasters and giving them a revenue
audience large. However, it is thought to but is set-up for on-demand, not live content. share of advertising – is a good one.
be targeting rights valued with “six or seven There are similarities in the two “The broadcasters remain in the best
zeros rather than eight,” one insider said. companies’ current business models that position to keep control of the sports
The English Premier League rights in suggest the time is not right for them to take distribution business, as the visionary ones
China would fall perfectly into this bracket. a big step into sports content acquisition. continue to grow their service offering to
The rights are currently valued at $12 million Both Apple’s and Google’s television consumers. They have existing rights and
per year and have the potential to attract tens products are so far targeting the video-on- they are in the best position to extend
of millions of viewers. Streaming the matches demand market rather than the live content their reach to additional platforms.
for free on YouTube in an advertising-funded market. As such, Apple TV and Google TV Adding a new platform – web, tablet,
business model would be sensible business are considered platforms that consumers use smartphone and even OTT (over-the-
for Google and could also be attractive in addition to pay-television, rather than top – television delivered via the internet)
for the Premier League as it would mean offering an alternative to existing services. – is less effort for them because they’re
wide exposure in a strategically-important Two digital media experts who have already investing in the sports business.”
SportBusiness International • No.176 • 03.12 55
sportel briefing | march 2012
IOC AND UEFA
WARM TO PAY-TV
CHANGING RIGHTS-HOLDER STRATEGIES could HIT TELEVISION AUDIENCES
FOR THIS YEAR’S FOOTBALL EURO AND OLYMPICS. Sportbusiness
intelligence and eurodata tv worldwide EXPLAIN WHY.
UEFA, EUROPEAN FOOTBALL’S governing approach for the 2014 and 2016 Olympics. by the fact that public-service broadcaster
body, and the International Olympic The EBU’s grip had slipped already in the the BBC will be showing coverage across a
Committee have enjoyed massive and sale of 2012 Olympics rights. Italy was carved number of channels, fragmenting the audience.
growing television audiences in Europe’s out of the deal between the EBU and the The fragmentation should on the other hand
top five markets for the European football IOC for the 2012 Olympics because Italian boost the cumulative audience figure.
championships and the Summer Olympic public-service broadcaster Rai refused to For the IOC, while average and
Games in the last two decades. make the financial commitment expected cumulative audiences across Europe
But changes in broadcast rights sales by the EBU. The IOC was left to negotiate may not match previous Olympics, it is
strategies by both rights-holders is set a deal for the Italian rights itself and did achieving the widest possible exposure
to hit the overall number of television so with pay-television operator Sky Italia. in Italy in terms of the sports that will be
viewers for each event this year. Coverage Rai will still show 200 hours of coverage shown on television, and also maximising
in some territories has shifted to pay- of this year’s Games as Sky was obliged – its financial return in terms of rights fees.
television for the first time as the rights- both by the IOC and Italian listed events Public-service broadcasters with a wide
holders have sacrificed viewer numbers legislation – to sublicense some rights to programming remit like Rai are limited
to protect their rights fee income. a free-to-air broadcaster. In 2008, when it in how much Olympic coverage they
Until now, the Euro and the Summer had the rights via the EBU, Rai broadcast can show on their free-to-air channels.
Olympic Games were staple programming 328 hours on its Rai 2 channel. With the Although some show additional content
for free-to-air broadcasters. The free- majority of coverage this year being on on digital channels and their websites,
to-air exposure yielded big audiences in Sky Italia’s premium channels, which have they cannot match the combination of
France, Germany, Italy, Spain and the UK. a limited penetration, the average Italian breadth of coverage and the money pay-
For Euro 2008, the last edition of Uefa’s audience for the Olympics will drop. television broadcasters are willing to offer.
European football championships, the The IOC will hope that Sky Italia’s
total average live audience per match across commitment to extensive coverage – it has uefa considers pay-TV
the five markets was 40 million viewers, said it will show as much of the 5,000 hours Uefa has indicated that it may consider a sales
according to a special survey by Eurodata available as it can, backed up by aggressive strategy mixing free-to-air and pay-television
TV Worldwide. The highest average in marketing and promotion – combined with in the top five European markets. Uefa, along
the period surveyed was for Euro 2004, Rai’s exposure will ensure the cumulative with football’s world governing body Fifa, has
which attracted 41 million per match. number of viewers in Italy across the 17 unsuccessfully challenged the UK’s listed-
By comparison, the Olympics in 2008 days of the event will remain unchanged. events legislation, which states all matches
attracted a total average audience for live One factor which could increase audiences at the Euro must be broadcast free-to-air, in
coverage of 7.6 million viewers. The top for the event in the top European markets the General Court of the European Union.
average of the last 20 years for an Olympics beyond the 2004 record is the two-hour As this publication went to press in
was also in 2004, drawing just over 11 million. time difference between the 2004 Olympics late February, the Qatari pay-television
and this year’s event, which means that there broadcaster Al Jazeera was reported to be
Olympics pay-TV shift will be more live coverage later in central bidding strongly to acquire the rights for
The European Broadcasting Union, the European primetime schedules, when many Euro 2012 and Euro 2016 in France. Uefa
consortium of public service broadcasters, has more viewers will be watching television. has faced tough negotiations in the country
been the traditional buyer of Olympics rights In addition, it is likely that viewing in the after free-to-air broadcasters failed to meet
in Europe. But the 2012 Olympics could UK will be unusually strong as it is the host the federation’s financial expectations.
be the last bought by the EBU, as the IOC country. The extent to which UK average If Al Jazeera acquires the rights, French
has embarked on a market-by-market sales audience levels will increase will be mitigated listed events legislation and Uefa’s own rules
56 SportBusiness International • No.176 • 03.12spoRtel bRiefing | March 2012
will ensure that a certain number of matches total average audience in the top five european markets for the uefa
are shown on free-to-air. Listed events european championships and the summer olympic games
legislation says that the final and semi-finals
must be free-to-air. The French press has 45,000
reported that Uefa would demand 19 matches
were shown free-to-air. If the remaining 40,000
matches were on pay-television, the average
French audience would drop significantly. 35,000
By selling Euro 2012 rights to Al Jazeera
in France, Uefa would also scupper any 30,000
chance of beating the total average audience
record in the top European markets set in 25,000
2004. If free-to-air coverage in France is (000’s)
20,000
maintained, the record could be challenged.
The UK audience for the tournament
15,000
will increase as the England team, which
missed out on Euro 2008, has qualified. 10,000
Audiences for Euro 2008 in the UK dropped
by 35 per cent compared to the previous 5000
event thanks to England’s absence from
the tournament. The cumulative average 0
across Europe didn’t drop significantly 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010
only because of increased audiences in Summer olympic games uefa European championship
Germany and Spain as the respective
Source: Eurodata TV Worldwide/Mediametrie/AGF Fernsehforschung/Auditel/BARB/Kantar Media
national teams progressed to the final.
Eurodata TV Worldwide
The only official provider
of sport TV audiences
across all competitions
Order your Yearly Sport Key Facts from all over the world
2011 issue including RWC, F1, UEFA CL
WE SPEAK TV
Contact:
Louis MAURAN, Head of Sport Services
Tel: +33(0) 1 47 58 36 56 - +33(0) 6 46 38 42 47
Email:lmauran@eurodatatv.com www.eurodatatv.comGetty Images Sport
ThE keVin Mccullagh oN thE coMpaNiES
who could kick-Start rightS fEE
growth iN Sub-SaharaN africa.
FrONTIErSMEN
spoRts Rights-holdeRs and agencies rights. The Octagon agency is going softer on Rising staR
pondering the future of rights fees in sub- rights fee demands, and boosting revenues StarTimes is the focus of hope for growth
Saharan Africa should keep a close eye on three by taking control of advertising inventory. in pay-television rights fees. European club
projects currently underway in the region. Sub-Saharan Africa ’s recent economic football rights fees in particular soared
The pay-television sector, which development, and its population and from 2007 to 2009 when two pay-television
looked monopolised by pan-regional number of television homes, point to huge operators emerged to challenge Supersport,
operator Supersport after the withdrawal potential for rights fee growth. The region the dominant force in the sector.
from the market of would-be rivals GTV contained six of the world’s 10 fastest growing But the massive rights fee commitments
and HiTV, contains several ambitious economies in 2000 to 2010 according to The made by pan-regional operator GTV and
new players, with the chasing pack led Economist. It has 152 million households, Nigerian operator HiTV proved too much
by Chinese company StarTimes. of which only 37.5 million have a television for the companies. GTV went bust in
In free-to-air television, two agencies are and 7.5 million have pay-television. 2007. HiTV withdrew from the market
pursuing two very different sales strategies However, the region still contains many for top sports rights in 2010 after having
to generate fees from a notoriously difficult of the poorest and most corrupt countries difficulty making payments for its English
sector. The Sportfive agency, selling the Africa on earth, and the under-developed media Premier League and Uefa Champions
Cup of Nations and qualifiers, has taken a industries mean that securing good rights League rights. Local press reports have
controversially hard line on rights fees with fees, and rights fee growth, is anything said the company has subsequently
broadcasters that are not used to paying for but guaranteed. experienced further financial difficulties.
58 SportBusiness International • No.176 • 03.12spoRtel bRiefing | March 2012
StarTimes has shown more caution in the which owns cable-television platform sponsorship and 30-second spots to
rights market so far. But it has played a role Zuku, plans to challenge Multichoice’s advertisers. Soft drinks company Coca-
in recent fee growth. It bid for pan-regional dominance by launching a satellite Cola and mobile phone operator MTN
rights for the English Premier League and the platform. Satellite delivery will allow Zuku acquired a mixture of both, while
Uefa Champions League – two of the region’s to reach more homes at a lower cost. pan-African bank Ecobank agreed
biggest pay-television subscription drivers – Supersport is not expected to be a deal for 30-second spots only.
the last time they were sold. It only narrowly dislodged from its position as the region’s Octagon charged about $11,000 (€8,400)
lost out to Supersport last year in the bidding strongest sports broadcaster in the short for a 30-second spot on the pan-regional
for Champions League pay-television rights. term. The good news for rights-holders is feed. Audience measurement in the region
StarTimes is one of a new breed of that it has traditionally been aggressive in is unreliable, so airtime cost cannot be sold
pay-television operators in sub-Saharan keeping hold of its content, paying rights- on the usual cost-per-thousand (viewers)
Africa trying to tap the market by offering fee increases to keep out would-be rivals. standard. As one rights-holder said, deal
a low-cost service – Star’s typically costing valuations are therefore often “seat of the
around $10 per month – with a relatively fRee-to-aiR battles pants stuff.” Octagon set the prices for
small number of channels. Multichoice, The Octagon agency is currently pursuing an its 2010 World Cup advertising spots
Supersport’s parent company, has built its experimental sales strategy with the free- by surveying broadcasters’ rate cards for
business on expensive subscriptions – up to to-air rights for the London 2012 Olympic advertising at the 2006 World Cup, and
over $60 per month – and a larger selection Games that it hopes will generate profits drawing on its own experience representing
of channels. Multichoice last year followed in a notoriously difficult market. Free-to- corporations advertising in the region.
the new players into the low-cost market air broadcasters in the region generally Crucially for advertisers in such an
with a new service called GoTV, launched have little money, and a reputation for late unstable market, Octagon provided
in Kenya, Nigeria, Uganda and Zambia. and non-payment of rights fees. Octagon accurate measurement of the amount of
Multichoice’s small number of subscribers is selling the rights at relatively low prices airtime exposure advertisers got during the
outside its home territory of South Africa to maximize exposure, then topping up World Cup. This turned up some worrying
is indicative of the small size of the market its revenues by selling advertising on the results for the agency, and the future of
ages Sport for expensive pay-television in the region. pan-regional Olympics broadcast feed. their model. Some broadcasters did not
The company had 5.2 million fulfil commitments to show all the
subscribers at the end of September central advertisers’ advertisements.
2011, of which 3.7 million were in “StarTimes understand what it takes to The agency ended up having to pay
South Africa, and 1.5 million in the compensation to the advertisers.
rest of the region, of which around survive in sub-Saharan Africa. If anybody The project was a success for
600,000 are thought to be in Nigeria. competes with Supersport in Africa, Fifa, which is understood to have
One of the reasons for local quadrupled its income from the
industry watchers’ confidence that it will be them.” free-to-air rights in the region. It was
StarTimes will seriously challenge considered a success for broadcasters,
Supersport is the Chinese company’s who got the rights at a low price, and
heavy infrastructure investment. It distributes Octagon hopes to avoid the problems also benefited from a Fifa-funded training
its service on digital-terrestrial television that the Sportfive agency had in the programme in football television production.
networks which it builds itself, and via last year selling rights for the Africa Fifa used revenues from the sales to pay
set-top boxes which it also builds itself. Cup of Nations football tournament for workshops in match production and
StarTimes is the “one credible competitor” and its qualifiers. Several broadcasters commentary which were attended by over
to Supersport, said one local agency balked at the prices Sportfive was asking. 1,000 television industry professionals.
executive. “They understand what it takes to Corporate sponsors and governments The project was not a total success for
survive in sub-Saharan Africa. They have the stepped in to help the broadcasters pay Octagon – the agency is understood to
economic capacity. They are building their the fees, and the agency suffered a storm have at best broken even, partly because of
own infrastructure. If anybody competes of negative publicity in the local press. the compensation paid to the advertisers.
with Supersport in Africa, it will be them.” Octagon’s model was pioneered by the However, the sales were encouraging
Star is not Multichoice’s only up-and- agency and Fifa, football’s world governing enough that it is pursuing the model
coming pay-television rival in the region. In body, in the sale of the free-to-air rights again in the 2012 Olympics sales.
Angola, satellite service Zap TV launched for the 2010 football World Cup. Under “We know there is a market. There
in the first quarter of 2010, joining DSTV a three-way deal, Fifa and the African are pan-African brands crying out for
and cable operator TV Cabo in the market, Union of Broadcasters – the pan-regional pan-African television exposure,” said
and had over 90,000 subscribers at the end consortium of free-to-air broadcasters Jonathan Riley, Octagon’s head of
of the second-quarter of 2011, paying an – worked together to sell the rights to sales, broadcasting and media in the
average of over $35 per month each. In East broadcasters, and Octagon sold advertising region. “We just have to make sure the
Africa, where the key territories include time on the World Cup broadcast feed. broadcasters comply with the agreements
Kenya and Uganda, the Wananchi Group, The agency sold a mixture of broadcast to show centrally sold advertisements.”
SportBusiness International • No.176 • 03.12 59spoRtel bRiefing | March 2012
daVid MuRRay
thE big hEad of rightS,
DEBaTE
thE bbc
we all know the rights market is a game
of long-term deals. This, in theory, should
help smooth any economic impact. However,
the cyclical economy means rights-holders
inevitably sell rights at the top of the market,
how Much of a NEgatiVE EffEct will thE EuropEaN EcoNoMic
potentially to bullish new entrants or agencies
criSiS haVE oN thE ValuE of SportS MEdia rightS iN thE that do not have the stability of an established
coMiNg yEarS? broadcaster. And these are the players who suffer
when the downturn comes, as ITV Digital
the current economic European crisis, during which the Eurozone will shrink by and Setanta have demonstrated in the UK.
0.5 per cent in 2012 according to the international Monetary fund, could lead Reduced competition, and falling
advertising revenue leads to a downward
to a 1930s-style great depression across the continent if some economists are to
adjustment in rights fees, before rights prices
be believed.
continue their seemingly ever increase upwards.
But this pick-up hasn’t materialised given the
financial experts are trying to accurately predict how protracted and how profound
wider economy flat-lining. To make matters
the economic contraction will be, but one thing is certain: the notion that the worse, the ad market continues to shift from
trading of media rights for top sport is a recession-proof business will be put to the television to online. And let’s throw in Karen
test in 2012 and beyond. Murphy to complicate matters further.
a director at one sports rights agency told TV Sports Markets in january that although
some premium properties like the fifa world cup, and some territories “With sponsors seeking quality,
such as brazil, russia, india and china, would still enjoy significant growth, the a broadcaster with a wide reach
“fundamental paradigm” of the industry had changed for the worse since the appeals in a downturn.”
recession of 2008 and was likely to deteriorate further this year.
the recession of four years ago left its mark on the sports industry, as advertisers What does this mean for rights-holders?
slashed budgets, sponsors and investors throttled back and local currencies Paradoxically, for premium rights we are
deflated against the dollar. in 2008, even the uS National football league, the seeing values holding up fairly well, as
broadcasters allocate scarcer resources to
world’s most wealthy sports rights-holder, had to trim its work force by 10 per
quality events. For rights-holders too, a
cent as a direct response to the recession, and two of Europe’s biggest domestic flight to quality makes sense, potentially
football leagues, germany’s bundesliga and france’s ligue 1, were only able to sacrificing income to secure a stable broadcast
maintain existing rights income by agreeing four-year instead of three-year deals. partner. With sponsors also seeking quality,
other examples of belt-tightening and streamlining of business are plentiful. a broadcaster with a wide reach also appeals
more in a downturn. The advantages to those
if the rate of growth for most sports rights in most European territories is going rights-holders who have maintained long-
to be slower in coming years than it was from the 1990s until 2008, what does term broadcaster relationships rather than
that mean for sport generally? for many observers, dark clouds are gathering chasing the cash now become apparent.
over the agency business given wider industry trends that, in addition to the harsh But there are positive trends. Those sports
economic climate, could have a negative impact on traditional agency business growing in Asia are partially insulated from the
models. these include ‘disintermediation’ – the process by which content
European malaise. How long before premium
rights such as the English Premier League
owners cut out intermediaries – which is likely to grow as sports rights-holders
start generating more income outside Europe
get increasingly savvy about rights exploitation, and the removal from agency than in? With the likes of Apple, Google and
portfolios of European national football team qualifier rights as the rights become Microsoft sitting on huge cash mountains,
centralised under uefa control. So will it be the agencies, the rights-holders or and Middle Eastern companies entering the
the broadcasters that are the biggest losers of the European recession? and market, there will always be competition.
what strategies need to put in place to minimise losses? or is anyone immune? Amidst the gloom, let’s not lose sight of the
fact in the multi-platform world, live sport will
here’s what our panel of experts had to say. continue to out-perform other content genres.
60 SportBusiness International • No.176 • 03.12spoRtel bRiefing | March 2012
oliVeR ciesla geRaldine paMphile
MaNagiNg philipp gRothe SENior dirEctor,
dirEctor, thE chiEf ExEcutiVE, iNtErNatioNal
SportSMaN kENtaro MEdia diStributioN,
MEdia group Nba aSia
spending on television rights is generally the cuRRent econoMic situation in MajoR Rights-holdeRs should maintain
directed more and more towards premium Europe is focusing minds at all levels and most of their value. Minor sports do not
must-have sports content that is of high across all sectors. However, it is important to rely on television revenue to any
domestic demand and of global appeal. note that the global sports rights market – and great extent so it is those in the
For premium sport, there remains strong Kentaro for that matter – has continued to middle who will be squeezed.
competition in most markets and for premium enjoy positive growth across 2011, albeit at At the National Basketball Association
rights-holders, television income shows little a rate lower than was experienced in Latin we focus on deep, longer-term partnerships
sign of decreasing despite the economic crisis. America, the US, Africa and parts of Asia. with broadcasters, that give them a large
In markets where this is not the The absolute value of broadcast rights say in how the property is scheduled and
case, global rights-holders may still in Europe, especially within football, marketed. We have also made a solid local
find that “over-performing” emerging remains extremely high relative to the commitment – we have multiple offices
markets elsewhere reduce any immediate other growth markets across the world and, worldwide including a Europe-wide presence
negative financial impact. other than certain US league properties, – which supports the growth of the NBA.
A concentration of broadcasters’ budgets the bulk of income for sports media rights
and airtime on premium sports can, however, still comes from Europe. This is unlikely
create difficulties for “second-tier” rights- to change dramatically moving forward. “Rights-holders need to integrate
holders, who, as a consequence, risk suffering Much of the reason for this continued in media strategies changes in
diminished television income and exposure. growth is the strength of the very top
properties which consistently aim to refine
the consumption habits of fans.”
and sharpen their product offering and
“Streaming via internet and benefit accordingly. As always, the process To minimise losses, rights-holders need
mobile devices increasingly tends to be more challenging for the to integrate in their media strategies the
smaller properties in difficult economic trends and the changes in the consumption
offers a valuable solution.” times and often it is the smaller sports for habits of fans and an understanding of the
which the effects of an economic slowdown television industry’s adoption of digital.
In response to reduced financial offers from are felt most, often in the sponsorship This migration is gradual, but has a deep-
broadcasters, creating tailor-made rights space as well as within broadcast. seated impact on the industry. The NBA,
packages for television and new media for example, has robust digital assets in nba.
platforms is key for rights-holders; their media com and nba.tv – our direct-to-consumer
offer must optimise the balance between “Those who are most creative, portal – which are both destinations of
revenues and the best possible exposure for and forward-thinking will have choice for our fans. They provide excellent
fans, their own brand and their sponsors. complementarity to our television offer and
Alternative revenue sources can be
the best opportunity to grow.” are great platforms for global partners.
developed by focusing on the broad No-one is immune to the economic
exploitation of available video material, Broadly, I see no significant change in the crisis. But a slower rate of growth in media
video streaming on rights-holders’ own underlying rate of growth in broadcast rights, revenues does not imply that growth for a
platforms, direct interaction with fans as the bigger properties will need to continue league or a property as a whole will slow
through social media, improved online- to internationalise and innovate to remain down. Sports properties should build
marketing and cost-efficient signal at the top of the sports-rights tree. Those sustainable businesses that spread across
production. Here the Sportsman Media that do not have global appeal, however, will several business lines: media rights,
Group and its sister company Laola1 provide need to be consistently more innovative in sponsorship, events, merchandising and
interconnected solutions “out of one hand.” finding ways to create new income streams. so forth. It is important to build and
Moreover, streaming via internet and I would never suggest that any rights- maintain the local affinity of the sport via
mobile devices increasingly offers a valuable holder, sport or indeed business will ever initiatives like grassroots operations where
solution for premium rights-holders in be totally immune from the effects of an the public can interact with the game.
conjunction with their television agreements, economic slowdown; but those who are most Each season, we organise international
and to all other rights-holders as a valuable creative, innovative and forward-thinking events, from overseas pre-season and
up-to-date alternative to television. The in their strategic approach will surely have regular-season games – which Europe
offering of sports content across new media the best opportunity to grow and, indeed, has been hosting since 1985 – to ‘clinics’
platforms and its acceptance among fans, exploit the many opportunities an uncertain where NBA players, coaches and doctors
users and sponsors is growing rapidly. economic outlook so often brings. provide NBA expertise for local athletes.
SportBusiness International • No.176 • 03.12 61You can also read
