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                                       THE MAGAZINE OF SPORTS MARKET INTELLIGENCE                  Q3 2016

                                              THE FUTURE
                                              OF OLYMPIC
                                              VIEWING

                                       PLUS EUROSPORT OVERHAULED • ITF’S DAVID HAGGERTY • VIRTUAL REALITY
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         “Closer working partnerships are
         required between the organising
         committee and the IFs”
               Behind the scenes, the Rio 2016 Olympics           So what lessons should be learned from all this?
               were the WhatsApp games, the Uber games               The international federations: Closer working
         and the AirBnB games – not to mention the stray          partnerships are required between the organising

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         bullet games, the venue-staff-become-construction-       committee and the IFs. Although the funding crisis
         workers games and the anything-goes-in-the-stadia        was widely discussed as the games drew near,
         games. Oh, and the Games of Floods.                      some IFs were more prepared for it than others.
            In several of the venues, the funding shortfall          That said, Rio 2016 provided a great example
         that resulted from the country’s overall political       of collaborative working on the ground for event
         and economic crisis meant that contractors were          delivery. Some IFs sent additional competition
         simply not hired to complete the ‘field of play’ in      staff of their own to bolster the staff of what was a    Callum Murray
         competition and training venues, so untrained sport      relatively young LOC. On the other hand, IF staff        Editor
         competition and venue management staff had to            did not always fully understand the processes            Sportcal Insight
         roll up their sleeves and become inexpert builders in    involved in delivering a competition as part of a
         the days before their events were due to start.          multi-sport games.
            Similarly, towards the end of the games, the             The IOC: More understanding of the host city
         day for many of the competition staff began with         and nation is required when taking the games to
         buckets, mops and squeegees, thanks to flooding          new territories. More time and research should
         caused by heavy rain falling on inadequately-sealed      be invested in seat-filling programmes and
         temporary venues.                                        opportunities to sell tickets for less favoured sports
            Meanwhile, a ruling by a Brazilian judge              (the Paralympics are obviously completely different,
         allowing peaceful protests in stadia meant that          but their campaign to ask the world to fund tickets
         the usual strict ‘clean venue’ policy of the IOC was     for Brazilian children was innovative and unique).
         compromised, with political propaganda, football            Brazilians love and follow religiously a limited
         colours and the flags of non-IOC-recognised nations      number of sports: football and volleyball, if the
         and territories visible at many venues.                  prime-time output of Olympic broadcaster Globo
            Prizes for unacknowledged heroes of the games         is anything to go by. Although the Olympics were a
         go to WhatsApp, the social networking site, Uber,        great opportunity to showcase alternative sports in
         the online taxi service and AirBnB, the online home-     the country, there are fears that nothing will be done
         sharing service, whose apps became the mainstay of       now to improve the participation and the following
         teams working at the venues.                             of these sports in Brazil. The only major event Brazil
            WhatsApp was used by venue management                 has signed up for the future is the canoe slalom
         teams for fast and effective group communication,        world championships in 2018.
         with traditional (and official) radio communications        Tokyo 2020: Transport is an issue at every multi-
         mostly neglected because WhatsApp simply                 sport games, so Tokyo has an opportunity to be
         delivered a more direct and reliable option for          the best yet in terms of transport infrastructure. The
         the international workforce communicating in             LOC will need to focus on spectator movements,
         Portuguese and English.                                  and ingress and egress patterns for its venues from
            Uber set up mobile support centres on the edge        an early stage.
         of Olympic venues to ensure people could travel             Temporary venues are not always the best option,
         around the city, avoiding the road closures, a service   as Rio’s unpredictable weather conditions showed.
         regarded by many as more reliable and up to 40 per       The weather in Tokyo changes in mid-July from the
         cent cheaper than local taxis.                           rainy-season to summer. With the games taking
            And AirBnB – admittedly an official                   place in July and August, it would do well to look
         accommodation provider for the games – offered           into contingency planning to mitigate the weather
         a vital source of alternative accommodation for          after what happened in Rio, where rowing was
         spectators, workforce, volunteers and delegations        affected by the wind, and rugby and many other
         after the supply of traditional hotel rooms              outdoor sports were played in the rain. Organisers
         was exhausted.                                           should think hard about whether to repeat Rio’s
                                                                  open-air diving pool experiment.

                                                   TALK DIRECT callum.murray@sportcal.com
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                                                                                                                                  Contents                                                                                                           Contributors

                                                                                                                                                                                                                                                     Rachel Gary
                                                                                                                                                                                                                                                     heads up communications
                                                                                                                                                                                                                                                     and marketing for ONE
                                                                                                                                                                                                                                                     World Sports.

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                                                                                                                                                                                                                                                     Nigel Currie
                                                                                                                                                                                                                                                     has worked across all aspects
                                                                                                                                                                                                                                                     of the sponsorship, PR and
                                                                                                                                                                                                                                                     sports marketing business.

                                                                                                               Visit us at our
                                                                                                            SPORTELMonaco booth
                                                                                                              # E01-04, E13-15                                                                                                                       Mike Laflin is chief
                                                                                                             24-27 October 2016                                                                                                                      executive of Sportcal

    BUILDING THE                                                                                                                                                                                                                                     Callum Murray
                                                                                                                                                                                                                                                     Editor, Sportcal Insight,

    BIG MOMENTS
                                                                                                                                                                                                                                                     specialises in the IOC and
                                                                                                                                                                                                                                                     international federations.

                                                                                                                                  News analysis                                              Eurosport                                               Jonathan Rest
                                                                                                                                  06 The industry watches to see if Perform’s                28 We analyse the overhaul at the                       Deputy editor,
    Through innovative ideas, inspired concepts and comprehensive services,                                                       DAZN will succeed.                                         broadcaster since the Discovery takeover                Sportcal Insight, writes
    Infront Sports & Media supports 170 rights holders worldwide to deliver                                                       08 Oliver & Ohlbaum proposes a new                         and ask Peter Hutton about future strategy.             on events, bidding and
    unforgettable sports events.                                                                                                  Champions League format.                                                                                           US major leagues.
                                                                                                                                  10 Cricket’s Caribbean Premier League                      LaLiga
    With an extensive portfolio and highest standards of        Infront provides top-level services to the world’s greatest       targets US audiences.                                      36 What do social media tell us about how               Krzysztof Kropielnicki
    delivery, Infront Sports & Media is one of the most         events including CBA League games, DFB national team              12 Will Russia’s appeal against Paralympic                 Spain’s elite soccer league and its rivals are          Head of research and
    respected sports marketing companies in the world.          matches and the DFB Cup, FIS World Cups and World                 exclusion succeed?                                         being consumed?                                         intelligence, oversees global
    As a major distributor and producer of sports content, it   Championship events, Lega Serie A, EHF EURO events,                                                                                                                                  data analysis and research.
                                                                the World Marathon Majors, the IIHF Ice Hockey World
                                                                                                                                  Opinion                                                    Interview
    enables media partners to share the biggest and best
                                                                                                                                  16 Rachel Gary on the new digital                          38 New ITF president David Haggerty talks               Martin Ross
    moments in sport with audiences across the globe.           Championship and many more.
                                                                                                                                  opportunities for sports.                                  doping, match-fixing and the future of the              Online news editor, is a
                                                                                                                                  17 Nigel Currie says broadcasters must                     Davis and Fed Cups.                                     broadcast rights and sports
                                                                                                                                  react to sports scandals.                                                                                          agencies expert.
                                                                Our experience. Shared passion.                                                                                              Virtual reality
                                                                Your success.                                                     Cover story                                                40 Rightsholders are increasingly eager to              Simon Ward
                                                                                                                                  20 With traditional linear TV figures falling,             capitalise on the opportunities presented               Deputy editor, Sportcal,
                                                                                                                                  Sportcal Insight asks: What’s the future for               by sport’s latest game-changer.                         specialises in sponsorship,
                                                                                                                                  Olympic viewing?                                                                                                   Asian TV, agencies market
                                                                                                                                                                                             Index                                                   and US sports.
                                                                                                                                                                                             45 Key information on the events, people
    www.infrontsports.com
                                                                                                                                                                                             and deals driving the sports business.
    Twitter @infrontsports
                                                                                                                                  Subscriptions: Sportcal Insight is a quarterly publication. An annual subscription costs
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                                                                                                                                                                                                                                        TALK DIRECT mike.laflin@sportcal.com
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Insight
6   News                     Analysis                                                                                      www.sportcal.com                                                                                Q3 2016            Sportcal Insight   7

                                                                                                                                    “The changes to the Champions          “Our long-term aim               “The CAS ruling can only be
                                                                                                                                    League from 2018 appear                is to take this into             overturned on the basis of a
                                                                                                                                    relatively minor.” Nick Beazley,       multiple markets.”               procedural mistake and not
                                                                                                                                    author of Oliver & Ohlbaum’s           John Gleasure, chief             on the merits of the case.”
                                                                                                                                    Champions League report                commercial officer,              Olivier Ducrey, Baker &
                                                                                                                                                                           DAZN                             McKenzie, Geneva

    09-10-2016                                                                                                              IMAGE CAPTION TO GO IN HERE

                                                                                                                              Perform’s DAZN (pronounced and           Handball Bundesliga, ATP Tour, ice           much lower [than other major markets].
                                                                                                                           marketed as ‘Da Zone’) is designed          hockey, darts, UFC and boxing) at the        Our market research showed a price

                                                                                            €9.99
                                                                                                                           to shake up markets bereft of pay-TV        cost of surrendering exclusivity over live   sensitivity in the market.
                                                                                                                           competition and replicate the success       rights to some of its European soccer           “We feel it’s a great proposition in
                                                                                                                           enjoyed by online players in the            leagues or allowing highlights to be         terms of the price, the free month when
                                                                                                                           music and entertainment industries.         shown by Germany’s more established          you come in and trial it and the fact
                                                                                                                           Predictably dubbed the ‘Netflix of          media outlets.                               you’re not on a long-term contract.
                                                                                                                           Sports’, DAZN hit the mainstream press         John Gleasure, chief commercial           When you look at other sectors, there is
                                                                                                                           with its German launch and generous-        officer of DAZN, tells Sportcal Insight      a similarity in that offering which we’ve
                                                                                              PRICE PER MONTH OF DAZN
                                                                                                                           looking €9.99 ($11.16) per month price      that creating content partnerships, not      taken note of as well.” Priced as it is,
                                                                                              SUBSCRIPTION IN GERMANY
                                                                                                                           point and portfolio of over 8,000 live      recouping rights fees by sub-licensing       DAZN is not necessarily designed to

                                                                                            8,000
                                                                                                                           events per year. The launch has not been    rights elsewhere, is the motivation.         lure customers away from Sky,
                                                                                                                           without its problems, however, with a          He notes: “Our belief is that the         Germany’s dominant pay-TV player,
                                                                                                                           server issue causing a blackout during a    [mainstream] free-to-air broadcasters        but instead encourage fans to take out
                                                                                                                           busy September weekend of coverage,         and digital free-to-air broadcasters can     two subscriptions.
                                                                                                                           prompting social media complaints and       really engage and bring in an audience          The Japan launch was guaranteed
                                                                                                                           jibes of ‘It DAZN’t work!’                  and drive awareness of our proposition.      additional interest after Perform’s
                                                                                                                              Already armed with live rights to the    Exclusivity is of course very important,     $2-billion, 10-year rights deal with
                                                                                               NUMBER OF LIVE EVENTS       Premier League, LaLiga, Ligue 1 and         but we will look at ways to drive            the J.League, and DAZN will go live
                                                                                                 A YEAR ON DAZN            Serie A, Perform completed a sharing        interest, engagement and ultimately          in other markets in due course. Just
                                                                                                                           deal with publishing group Axel Springer    drive subscribers to us by raising the       where Perform goes next has not been

                                                                                            $2BN
                                                                                                                           to get its hands on clips from the          awareness about these competitions.”         revealed, although the securing of
                                                                                                                           Bundesliga this season and catch the           Germany - along with neighbouring         internet domain names for ‘DAZN’ in
                                                                                                                           attention of German fans in the process.    Austria and Switzerland - and Japan          the UK, Scandinavia, Russia, Canada and
    OTT’s time                                 two years in the planning and first made
                                               headlines in the middle of 2015 as initial
                                                                                                                           Having already landed Bundesliga
                                                                                                                           internet clips rights from 2017-18, DAZN
                                                                                                                                                                       were selected as Perform’s first markets
                                                                                                                                                                       after analysis of mobile, 4G and high-
                                                                                                                                                                                                                    Oceania offers some clues.
                                                                                                                                                                                                                       Gleasure remarks: “Our long-term
    to perform                                 rights deals were struck.
                                                  The launch has raised eyebrows,
                                                                                                                           is offering the service one year earlier
                                                                                                                           than expected thanks to the deal with
                                                                                                                                                                       speed broadband internet penetration,        aim is to take this into multiple markets.
                                                                                                VALUE OF PERFORM'S                                                     coupled with the availability of rights      We understand and have done huge
                                               given the hefty spend on rights, product      RIGHTS DEAL WITH J.LEAGUE     Axel Springer, which shows the clips on     and level of pay-TV competition.             research across the globe in terms of
    The industry waits to judge the            development and marketing, and has                                          its Bild website (via a subscription)          Perform will also have also been          the technological accessibility and the

                                                                                            1.75m
    success of Perform’s long-awaited          been viewed as a watershed moment                                           as part of its own €5.5-million-per-        buoyed by viewing figures enjoyed            content availability. That’s ongoing. We
    ‘DAZN’ service as it goes live in          for an industry already reshaped by                                         season contract.                            by Laola1.tv, the internet portal that       want to grow and do even more…this is
    major markets.                             cord-cutting and ‘skinny bundles’.                                             Axel Springer will showcase clips from   is a sister company of rival agency the      not a short-term venture.”
                                                  With streaming having been seen as                                       the European leagues shown live on          Sportsman, when streaming exclusive             He gives a nod to the support of
    By Martin Ross                             a secondary or complementary offering                                       DAZN, along with the likes of the NBA       LaLiga games in Germany and                  majority shareholder Access Industries,
                                               to ‘traditional’ TV coverage, have the                                      and NFL, in a move to boost awareness       Austria since 2009 (the audience for a       and the backing of the investment firm
      Perform’s ‘over-the-top’ sports          viewing habits of an increasingly tech-                                     of the offering. The cross-marketing        Barcelona-Real Madrid clash in March         owned by billionaire Leonard Blavatnik
                                                                                             LAOLA1.TV'S ONLINE AUDIENCE
    subscription service has been a long       savvy audience in a converged world          FOR BARCELONA V REAL MADRID
                                                                                                                           approach was replicated in content          2015 was estimated to be 1.75 million).      is no surprise given its music industry
    time in the making. The operation, which   shifted enough to make a paid online                                        agreements with German broadcasters         Discussing the price point in Germany,       involvement. As owner of Warner Music
    launched in German-speaking countries      service at a low price point a go-to                                        Sport1 and ProSiebenSat.1, supplying        Gleasure expands: “If you look at the        and an investor in the Deezer music
    and Japan in August, has been over         destination for sports fans?                                                DAZN with more live rights (including       pay penetration in Germany it has been       streaming subscription service, Access
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8   News                        Analysis                                                                                                          www.sportcal.com                                                                             Q3 2016        Sportcal Insight   9

    Industries will be acutely aware of the                                                            However, in the report Oliver and          Consumer willingness to pay for a            its own changes to the format that
    changes in the consumption of music            Reform, not                                      Ohlbaum claims that such proposals            reformed Champions League                    apparently go some way to addressing
    amid a young demographic.                                                                       “would be detrimental to European                                                          the problems identified by Oliver &
                                                   revolution

                                                                                                                                                                                                                                            €600m
       Perform’s DAZN is available on                                                               football. They would require a large                  NEW CHAMPIONS LEAGUE                 Ohlbaum. These include awarding
    connected devices including Smart                                                               amount of fixtures and would undermine                FORMAT (WITH 24 TEAMS)               four places each in the competition to

                                                                                                                                                         24                       8
    TVs, personal computers, tablets,                                                               the current calendar balancing league,                                                     clubs from the four top leagues and the
    smartphones and games consoles and             UK-based sports policy and strategy              cup, European and international football;                                                  introduction of two kick-off slots per
    Gleasure underlines that the offering          adviser Oliver & Ohlbaum argues for              any large gain in rights values would                                                      match day from the 2018-19 season.
    “is still all about the TV and big screen      a Uefa Champions League format                   require weekend fixtures, which would                                                         However, Oliver and Ohlbaum’s
    experience.” Providing Ultra HD                change that will head off renewed                undermine the domestic leagues and                   TEAMS                CLUBS GAMES      Nick Beazley, the report’s main author,
    coverage is not in the pipeline, although      threats of a breakaway                           their existing (and highly successful)                                   ON PAY TV ONLY    was sceptical that these changes go          POSSIBLE INCREMENTAL VALUE PER

                                                                                                                                                         3
    Gleasure insists that it can be delivered if                                                    rights models. Importantly, it is not clear                                 (UK) BUT       far enough, telling us: “Compared to          SEASON OF CHAMPIONS LEAGUE
                                                   By Callum Murray

                                                                                                                                                                                  1
                                                                                                                                                                                                                                              24
    rights-holders provide the feed.                                                                that there is significant fan demand                                                       previous reforms, the changes to the
       So does the exclusive broadcasting of                                                        for a league-type format which would                                                       Champions League from 2018 appear
    premium live content via OTT in major             The Uefa Champions League could               undermine the importance of the                  MATCH DAYS                                relatively minor, especially in terms
    markets like Germany and Japan indeed          bring in an additional €500 million ($559        domestic leagues and cups.”                       PER WEEK                                 of broadcast value. The rumoured
    represent a watershed moment? For so           million) to €600 million a year in the first        Oliver and Ohlbaum’s proposal would                                     FTA GAME        introduction of two TV slots per match

                                                                                                                                                         3
    long, streaming services - on whichever        rights cycle following an overhaul that          itself be controversial, nevertheless,                                    PER WEEK IN      day will increase the value to free to air
    device - have been regarded as                 would involve reducing the number of             because it would award 20 places in                                        THE OTHER       broadcasters, but in markets where the
    additional offerings by TV broadcasters        competing clubs to 24 and increasing the         the competition to teams from the five                                     COUNTRIES       rights have gone exclusively to pay TV,          NUMBER OF COMPETING
    already showing the main action on their       number of kick-off slots to six per week         largest leagues – England’s Premier                                                        such as the UK and France, the difference     CLUBS UNDER O&O’S PROPOSAL
                                                                                                                                                  GROUPS OF EIGHT
    channels, or a solution for displaced          (including two for the second-tier Europa        League, Spain’s LaLiga, Germany’s                                                          in broadcast value is negligible.

                                                                                                                                                                                                                                              20
    fans unable to watch a match or                League), according to a controversial            Bundesliga, Italy’s Serie A and France’s      Uplift on current pricing                       “The changes to clubs’ qualification
    tournament elsewhere.                          new proposal by Oliver & Ohlbaum                 Ligue 1 – leaving just four places to be      Value placed by current subscribers          should not have much material impact,
       Gleasure remains focused on making          Associates, the UK-based sports policy           distributed between all of Europe’s other     to the new format (uplift in price per       especially for Premier League clubs,
    DAZN a success before judging its wider        and strategy adviser.                            leagues. But restricting the competition      subscriber per month)                        who have not had many difficulties in
    significance. “The industry is definitely         The changes compare with the                  to clubs “that consumers want to watch                                                     qualifying via the play-offs anyway. Uefa
    looking at what we’re doing and if we          present structure which comprises                (and pay for)… would ensure high                                                           have promised a substantial increase in
    can make this work,” he notes. “We’ve          32 teams and two kick-off slots for              competition for rights in Uefa’s major                                                     payments to clubs but if this is achieved       NUMBER OF PLACES TO BE
                                                                                                                                                          +0.8€                  +2.8€
    been building up to this for a long time       the Champions League (one each on                European markets as well as the lucrative                                                  it will be due to underlying market           AWARDED TO TOP FIVE LEAGUES
    with the infrastructure we’ve put in place     Tuesdays and Wednesdays) and two                 and growing markets in Asia and the                                                        conditions rather than the changes Uefa
    and the backend.                               for the Europa League (two successive            Americas,” according to the report.                                                        has made.
       “We felt now is the right time to do        slots on Thursday nights). Under the new            The report also claims that six kick-off                                                   “Overall we do not think that the
    this. Is it a watershed moment? I think        proposal there would be two successive           slots per match week “would be more                    UK                  GERMANY         reforms are enough to meet consumers’
    time will dictate that. When you look at       slots on each match day on Tuesdays,             attractive to free-to-air broadcasters in                                                  clearly stated preferences for more,
    what has happened in the music and             Wednesdays and Thursdays.                        the European markets, giving them the                                                      better fixtures, nor will they avert the
    entertainment industry, you’ve seen the           The proposal, contained in a document         ability to show at least two top matches                                                   long term threat of a breakaway.”
    growth of major new players five or 10         entitled ‘The Uefa Champions League:             per week. The increase in kick-off slots              +3.8€                  +2.0€            An alternative to Uefa’s reform plans

                                                                                                                                                                                                                                                  50%
    years ago. That’s what we’re hoping to         Time for a new formation – the need for          would also appeal to pay TV operators,                                                     took on a new urgency in September,
    create with DAZN.”                             reform, not revolution’, is conceived as         who currently find themselves having                                                       when the European Professional Football
                                                   a response to a long line of proposed            to simulcast matches. There would be                                                       Leagues, the body that represents
                                                   breakaway leagues. The latest is from            additional airtime value for non-European            SPAIN                   ITALY         the continent’s top soccer leagues,
                                                   Wanda Group, the powerful China-based            broadcasters too, however with matches                                                     threatened to rip up its memorandum
                                                   multinational conglomerate that owns             taking place in the morning or during the     Source: Oliver & Ohlbaum                     of understanding with Uefa and stage
                                                   the Infront Sports & Media agency, and           night in many markets, any incremental                                                     domestic matches at the same time as
                                                   has been lobbying European leagues and           gain would be limited.”                       more than a continuation of the current      Champions League games as a result of               POTENTIAL UPLIFT
                                                   clubs, particularly in Italy and Spain, in its      If both reforms were implemented,          format. Further increases in value can be    the governing body’s planned changes.               IN TV AUDIENCES
                                                   move to create a new competition.                the report says, “each of the current         expected for Uefa and club commercial           The dramatic intervention followed a
                                                      It has been reported that Wanda’s             100 Champions League fixtures per             revenues as the revised structure would      meeting of the EPFL board of directors

                                                                                                                                                                                                                                               €3.2B
                                                   proposal would create an expanded                season, that are currently non-top tier       have more global sponsor appeal and          in Amsterdam in which it said it wanted
                                                   competition with more than 32 teams              fixtures, could benefit from a 50% uplift     would attract larger audiences.              Uefa to reconsider the reforms. Although
                                                   but fewer than 64, and would guarantee           in audiences. Likewise, we estimate slots        “However, it might take two more          the changes were supported by the
                                                   at least six places for each of the big five     for current mid-tier fixtures featuring       rights cycles to achieve this uplift, with   European Clubs Association, 12 top
                                                   leagues (in England, France, Germany,            a domestic club would see a 25%               a more likely 15-to-20-per-cent short-       leagues voiced their opposition: Spain’s
                                                   Italy and Spain), dealing a blow to clubs        increase in audiences if those fixtures       term increase in Champions League            LaLiga, Germany’s Bundesliga, England’s
                                                   from smaller nations. The proposal               were guaranteed to be between top             and Europa League annual value to            Premier League, France’s LFP, Russia’s          POTENTIAL ANNUAL VALUE
                                                   is designed to be more attractive to             tier clubs.”                                  €3.2 billion. Longer term, leading clubs’    Premier League, Liga Portugal, the Dutch       OF CHAMPIONS LEAGUE AND
                                                   broadcasters, creating more high-profile            The report admits that it would take       guaranteed income from the Champions         Eredivisie, the Swiss Football League, the          EUROPA LEAGUE
                                                   clashes that would attract audiences             several rights cycles for the full value of   League could increase by 40 to 50 per        Swedish Professional Football League,
                                                   in Europe’s largest markets and drive a          the new structure to be realised, saying:     cent, but the status and earning power of    the Danish Professional Football League,
                                                   revenue increase of between 30 and 35            “O&O analysis suggests that in 10             national leagues would be preserved.”        the Scottish Professional Football
                                                   per cent.                                        years’ time, the competition could be            Since the report was published, it has    Leagues and Italy’s Lega Serie B.
                                                                                                    worth a minimum of 30 to 40 per cent          emerged that Uefa is considering making
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10                            News                        Analysis

                                                                                  In the absence of trusted domestic            He admitted that the suspension of the
                                                                              leadership, it has been left to foreign        national association was also a handbrake
                                                                              entities to spread the word of cricket and     to development, saying: “We’ve got to
                                                                              one of the latest pioneers is the CPL,         sit down with the ICC, and sort out the
                                                                              which staged a block of six games at the       governance in USA.”
                                                                              Central Broward Regional Park Stadium             However, the international governing
                                                                              in Lauderhill in South Florida, the only       body believes that matches such as
                                                                              ICC-approved ground in USA, at the end         those in August will help bring about the
                                                                              of July.                                       necessary stability.
                                                                                  The CPL regarded the experiment as            Speaking after it agreed to sanction
                                                                              a triumph, attracting 30,000 spectators        the games, ICC chief executive David
                                                                              over four days, to sample what is              Richardson said: “We believe they can
                                                                              marketed as the ‘Biggest Party in Sport’,      play a significant role in the long-term
     CREDIT: CPL/Sportsfile

                                                                              with a mixture of big hitting,                 development of cricket in the USA and
                                                                              Caribbean-themed music and food                our ongoing efforts to unify the USA

                                                                                                                                                                                                    HOSTING
                                                                              and drink and cheerleaders.                    cricket community… but perhaps more
                                                                                 The league also showed a commitment         importantly, the sanction fees will be
                                                                              to grassroots cricket by organising clinics    invested into the ICC’s ongoing work
                                                                              for children with US coaches, and is           to lay a sustainable foundation for the
                              CPL hopes to lead                               keen to return to Central Broward next         development of cricket in America.

                                                                                                                                                                                                    WINNERS
                                                                              year, while also eyeing up other North            ”Once the governance situation is
                              US gold rush                                    American markets such as Toronto. There        fully resolved, O’Donohoe is convinced
                                                                              has also been talk of franchises based in      there is a large potential market for
                                                                              North America in the longer term.              broadcasters and sponsors of cricket
                              The Caribbean Premier League,                      On the back of what he said was the         in USA, citing the audience of over
                              the burgeoning Twenty20 cricket                 CPL’s “best year by a mile,” Damien            110 million for CPL matches on One
                              competition, is keen to contribute to           O’Donohoe, the chief executive of the          World Sports, the US cable and satellite
                              the growth of the sport in USA, the             league, told Sportcal Insight that the         broadcaster, a figure he said “is great for
                              market widely regarded as the holy              games in Florida were “not just one-offs,”     a tournament that is four years old.”                                  Everyone’s a winner when hosting events in Denmark.
                              grail for the sport.                            and that the league was best-placed of            O’Donohoe is also confident of
                                                                                                                                                                                                    Volunteers, spectators, businesses and politicians
                                                                              any to be a missionary for cricket as “the     attracting US sponsors for the CPL,
                              By Simon Ward                                   US is an extension of the West Indies.”        saying: “We’ve proved that we can                                      all come together to empower your world class event.
                                                                                 Asked if the primary target remained        put on games and proved we can be                                      Everyone plays on your team to take it to a higher level.
                                 The CPL, which launched in 2013,             expatriate fans, he said: “I think you         a success. There’s a lot of brands who
                              has helped to reinvigorate cricket in the       always have to focus on that market.           we’ve been speaking to who want to                                     When you place your event in Denmark, you’re bringing
                              West Indies, once a powerhouse in the           They’re going to be the majority who           connect with Asian and Caribbean
                              game; but its ambitions do not stop             come through the gate, but we were             audiences, and want to be involved in                                  it to a vibrant atmosphere served by a wealth of trust-
                              there and, on the back of fixtures played       surprised at the number of Americans           cricket as it’s the second-biggest sport in                            worthy and experienced partners. Together we’ll make
                              in Florida this year, the league hopes to       [who attended the CPL games].”                 the world [in terms of fans]. The US, being                            your event a winner.
                              play a key role in development efforts in          The perceived success of the                the most mature media market, is an area
                              the country regarded as having the most         Caribbean league’s incursion will have         in which we want to attract brands.”
                              untapped potential.                             been a factor in the decision of the West         The CPL will have taken some
                                 While cricket is at best a minority sport    Indies Cricket Board and the Board of          encouragement from the Cricket All-Stars
                              in USA, where even soccer struggles for         Control for Cricket in India to organise       matches, involving famous retired stars,
                              attention in a marketplace dominated            a two-match Twenty20 international             played at baseball stadiums in New York,
                              by the major leagues of the NFL, MLB,           series at the same Florida venue at the        Houston and Los Angeles last November,
                              NBA and NHL, the size of the media and          end of August.                                 which were shown live on ESPN3, the
                              advertising market and large Caribbean              The games, the first top-level cricket     online streaming service, in USA and
                              and south Asian expatriate populations          matches to be played in USA in four            attracted prominent sponsors such as
                              across the nation mean that it has long         years, attracted near-capacity crowds and      MasterCard, Pepsi, State Farm and Citi.
                              been seen as the next major frontier.           despite the mixed experience – one game           The Indian Premier League, the glitzy
                                 The International Cricket Council            ended in an exciting one-run victory for       Twenty20 competition from which
                              is naturally eager to capitalise on the         the West Indies and the other had to be        the CPL took its cue, can also see
                              opportunities, but has been frustrated by       abandoned because of rain – both teams         opportunities in USA, in part through its
                              infighting in the administration of the US      expressed an enthusiasm to return.             rights deal with ESPN.
                              game, which resulted in the suspension of          Asked about the prospects for the              However, the BCCI has put on hold
                              the USA Cricket Association in June 2015,       sport in USA, O’Donohoe said: “Cricket         plans for a ‘mini-IPL’ in USA, citing the
                              a ban that remains in place. It was the third   is going to be a success, I’ve no doubt        time difference, which it claims creates
                              time that the ICC had been compelled
                              to take such action, the other occasions
                              having been in 2005 and 2007, meaning
                                                                              [But] we’ve got to get into the schools.
                                                                              If you look at football [soccer], it’s 10 to
                                                                              12 years ahead. The other thing is the
                                                                                                                             difficulties in scheduling matches so they
                                                                                                                             can receive the largest possible audience
                                                                                                                             back home.
                                                                                                                                                                           WELCOME
                                                                                                                                                                           SPORTACCORD CONVENTION
                              that it has been difficult to maintain a        infrastructure. There’s only one stadium                                                     AARHUS, 2–7 APRIL 2017
                              cogent strategy on development.                 [approved by the ICC].”
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                       Legal experts question the basis for the               and Paralympics that extended to various
                       Russian Paralympic Committee’s retrospective           summer sports.
                       appeal, after the team misses Rio 2016.                   The IPC said that the RPC had failed to fulfil

        Russian
                                                                              its membership responsibilities, including its
                       By Callum Murray                                       obligation to comply with the IPC Anti-Doping
                                                                              Code and the World Anti-Doping Code, of which
                          Legal experts are sceptical over whether the        it is a signatory.
                       Russian Paralympic Committee will succeed                 In the face of some opposition from

        legal
                       with an appeal to the Swiss Federal Court              international sports federations, the IPC took
                       against a decision by the Court of Arbitration for     a harder line than the International Olympic
                       Sport to uphold the national Paralympic body’s         Committee, which did not issue a blanket ban
                       controversial suspension in a wide-ranging             on Russian athletes at the Rio Olympics, instead
                       doping scandal.

        challenge
                                                                              putting the onus on the federations to decide
                          The suspension meant that the Russian team          who should be able to take part based on further
                       was banned from competing in last month’s              analysis. As a result, over 270 Russian athletes
                       Paralympic Games in Rio de Janeiro, after the          did participate in the games.
                       Swiss court declined to issue a preliminary               Vladimir Putin, the Russian president, claimed

        set to fail
                       injunction that would have overturned the              that the Paralympic ban was “outside the bounds
                       CAS decision.                                          of law, morality and humanity,” calling it “cynical”
                          The Swiss court said that it would rule later on    and one that “humiliates those who take such
                       the ban, an outcome which had been expected by         decisions.”
                       the RPC itself, whose lawyer had said: “There is a        He added: “Unfortunately we witnessed how
                       violation of human rights, so the RPC will appeal      the humanist foundation of sport and Olympism
                       against the CAS decision in Switzerland’s Supreme      was brazenly violated by politics,” claiming
                       Court. However, the process will take between          that “greed and maybe cowardice” had taken
                       one and two years. Due to this, Russian Paralympic     precedence over Olympic principles.
                       athletes will not compete in the 2016 Games.”             A spokeswoman for the foreign ministry said
                          But in a statement that sounded ominous             that Russian Paralympians had been forced to take
                       for the RPC’s hopes, the Swiss court said in           “collective responsibility for an unproven crime.”
                       its preliminary ruling at the end of August:              However, the IPC subsequently decided to
                       “The Russian Paralympic Committee would                extend the blanket ban on Russian athletes
                       have needed to demonstrate it had fulfilled its        to cover the 2018 winter Paralympic Games
                       obligations in upholding... anti-doping protocols,     in PyeongChang as well. The alleged state-
                       and that its interests in an immediate lifting         supported doping programme was specifically
                       of its suspension outweigh the International           said to involve athletes taking part in the 2014
                       Paralympics Committee’s interests in fighting          winter Olympics in Sochi in southern Russia.
                       doping and in the integrity of athletics. It did not      Sportcal Insight spoke to two legal experts
                       succeed in this in any way.”                           about the likelihood of the RPC’s appeal to the
                          Senior Russian politicians and sports officials     Swiss Federal Court succeeding.
                       had accused CAS of ducking its responsibilities
                       by restricting its judgement to a narrow ruling on
                       whether the IPC had breached its own rules by
                       excluding the Russian team from the games.
                          The RPC had gone to CAS to challenge the
                       suspension imposed earlier in August by the
                       IPC, based on allegations of a state-sponsored
                       doping programme. However, CAS upheld
                       the IPC’s decision, saying: “The CAS panel in
                       charge of this matter found that the IPC did
                       not violate any procedural rule in dealing with
                       the disciplinary process leading to the RPC’s
                       suspension and that the decision to ban the RPC
                       was made in accordance with the IPC Rules and
                       was proportionate in the circumstances.
                          “The Panel also noted that the RPC did not file
                       any evidence contradicting the facts on which the
                       IPC decision was based.”
                          The IPC took the decision to ban the RPC on
                       the basis of the findings of the independent
                       McLaren report, which was commissioned by
                       the World Anti-Doping Agency and issued ahead
                       of the Rio Olympics, highlighting a Russian
                       doping programme at the 2014 winter Olympics
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                                                       of fact, proof or law that were properly     its decision. That decision is pivotal to
                                                       submitted in support of its conclusions      the possibility of any claim before the
                                                       and establish that these elements were       Swiss courts.
                                                       likely to influence the outcome of the          “Whether the rights of individual
                                                       dispute. A violation of the right to be      athletes have been violated is I believe,
                                                       heard is not established simply because      and I am sorry to say it, less a matter of
                                                       some obvious oversight of the arbitral       law than appears to be argued by some.
                                                       tribunal leads to a wrong award. The         That is because, in this case, I wonder

                                                                                                                                                   ALWAYS AHEAD
                                                       right to be heard does not guarantee a       what rights individual athletes might
                                                       substantively accurate award.                claim? I know of no actionable right
                                                          “The Federal Tribunal will not check      in international law that provides for
                                                       whether or not the CAS Panel took            appearance of a person at a sport event.
                                                       into account and correctly understood        What statements there are, are merely
                                                       the whole file. A violation of the right     declaratory. Any other claim to appear
        Olivier Ducrey,                                to be heard occurs only if the party is      depends on eligibility. In this case, it
                                                                                                                                                   Reliable, experienced, cost-effective.
     Baker & McKenzie, Geneva                          prevented from participating in the case,    means eligibility established by the rules
        “There is a limited number of                  influencing its outcome, and presenting      of the IPC.                                    Your one-stop shop for multi-platform broadcast services, production,
     circumstances under which a party that            its position. Only this justifies the           “We must appreciate that the IPC is
     has lost a CAS case can try to obtain the         annulment of the award without regard        a private organisation. Its rules accord       satellite and fibre content distribution.
     annulment of the award. Basically, only           to its chances of success on the merits.     membership only to organisations.
     the following grounds grant to a party            By alleging a violation of the right to be   Other than a few individual people who
     the possibility to challenge a CAS award          heard, the RPC will need to prove that       are awarded life membership, individuals
                                                                                                                                                   The Eurovision network uniquely combines satellite
     before the Federal Tribunal:                      the oversight on the part of the CAS         do not have membership or any of the           and fibre in a dedicated, fully-managed
                                                       Panel made it impossible to present and      rights that accrue from it. Moreover,
       1.	“if the sole arbitrator was                to prove its point of view in respect of a   the member organisations with sole             environment, recently complimented by
            designated or the arbitral tribunal        pertinent issue in the case.                 responsibility for selecting athletes to
            was constituted in an irregular way;          “While we do not have the full award      compete in a Paralympic Games are              internet and mobile networks.
       2.	 “if the arbitral tribunal wrongfully       at the time of writing, it is most likely    National Paralympic Committees, which
            accepted or declined jurisdiction          that the CAS Panel did not simply omit       in this case, of course, is the RPC. The
       3.	 “if the arbitral tribunal ruled            to consider the legal arguments put          RPC loses membership rights, including
            on matters beyond the claims               forward by the RPC, but did not consider     the selection of athletes to represent
            submitted to it, or if it failed to rule   it as relevant to the outcome of the         it and compete in the games, if it is          Come visit our stand at
            on one of the claims;                      dispute. As appeal on the merits is not      suspended from membership of the IPC.
       4.	 “if the principle of equal treatment       available and the grounds are limited           “Of course, like many others, I             SPORTELMonaco 2016
            of the parties or the right to be          and narrowly interpreted, the chances        am concerned by the effect that this
            heard was violated;                        of success of the RPC before the Swiss       decision will have on individual athletes.
       5.	“if the award is incompatible with          Federal Court seem very limited.”            I am not in favour of imposing collective
            public policy.                                                                          punishment for the actions of some. It
                                                                                                    goes against basic principles of fairness.
       “The Federal Tribunal issues its                                                             That, though, cannot exist in isolation
     decisions only on the basis of the facts                                                       and has to be balanced against the
     that were established by the CAS Panel.                                                        specific context of the issues in dispute
     In other words, the RPC can appeal to                                                          which in this case are, given the findings
     the Federal Tribunal but it can only try                                                       of the McLaren and Pound reports,
     to overturn the CAS award on the basis                                                         pretty shocking.
     of a procedural mistake and not on the                                                            “It may be that there is a discussion
     merits of the case.                                                                            as to whether the constitution of the
       “We believe that the RPC is                                                                  IPC ought to be changed to allow for
     complaining because it believes the                                                            individual recognition or at least to make
     CAS Panel did not address some of its                                                          provision for special arrangements for
     legal arguments. In such a case, the RPC                                                       the participation of athletes at IPC-
     might want to challenge the CAS award                                                          sanctioned events, in case of an NPC
     because its right to be heard was not                                                          being suspended. That, though, is
     respected. Basically, this is a protection        Mark Jordan, lecturer in sport and the       something for the future rather than
     of the parties’ procedural rights which           law at the University of Brighton            forming a basis for an action in this case.”
     give the Federal Tribunal the possibility            “We have not yet seen the decision
     to annul an award if there exists a               of the CAS Appeal Panel [at the time of
     violation of due process during the               writing] and so we are at something of
     arbitral proceedings.                             a loss to know the precise terms of the
       “If a party wants to raise successfully         agreed arbitration, the relief claimed
     a claim of violation of the right to be           by the RPC, the arguments that were
     heard, it must demonstrate that the CAS           put by the parties to the action and
     Panel failed to examine certain elements          the reasoning of the panel to underpin                                                      marketing@eurovision.net
                                                                                                                                                   www.eurovision.net
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16   Columnist                   Opinion                                                                                                       www.sportcal.com                                                                                     Q3 2016            Sportcal Insight    17

     ‘A new king born out of a                                                                                                                 ‘It’s time for
     digital womb has come on                                                                                                                  broadcasters to make a
     the scene’                                                                                                                                stand for fair and honest
                                                                                                                                               competitive sport’

        With the embers of the Olympic flame barely          of cable TV cord-cutting and decreasing traditional      Rachel Gary                 Why is it that whenever there is some sort                Over the past few years, the Fifa fiasco has        Nigel Currie
     extinguished and the thought of Super Mario Bros        linear audiences.                                        heads up                 of scandal in sport, it’s the major sponsors that        rarely been out of the headlines and the Russian        has worked across
     welcoming the 2020 Tokyo Games still on our mind,          The good news for rights-holders is that there is     communications           are expected to react and take decisive action?          doping scandal dominated the build-up to the Rio        all aspects of the
     the discussion of how we consume live sports has        a growing number of emerging networks, platforms         and marketing for        Surely it’s time for the broadcasters to take a stand    Olympics. Then the Ryan Lochte incident happened        sponsorship, PR and
     become ever-present.                                    and digital providers eager to partner and help          ONE World Sports.        and start flexing their muscles to ensure that they      and it became such a huge story that it threatened      sports marketing
        NBC touted its coverage of the 2016 Rio              them grow their fanbase and bottom lines. Not            ONE World Sports is      and their customers are watching fair and honest         to completely overshadow some of the sporting           business. He was
     Olympics as “the most ambitious media event in          to mention there is a burgeoning AVOD/SVOD               America’s Network        competitive sport?                                       events which were still taking place.                   Chairman of European
     history,” noting that 78 per cent of US TV homes        (advertising video-on-demand/subscription video-         for Global Sports,          One of the most worrying consequences of the              In 2007, to their great credit, German state        Sponsorship Association
     tuned into NBC Olympics’ Rio games coverage,            on-demand) digital marketplace that, when coupled        serving sports fans      greatly increased levels of financial reward available   networks ARD and ZDF, in an unprecedented               for eight years up until
     and claiming a TV-only audience of 198 million          with social media outlets, is allowing rights-holders    across all platforms     from playing sport at the top level has been the         move, did pull the plug on Tour de France live          2009 and is regularly
     viewers, according to Nielsen national data.            to cut out the ‘network middleman’ and directly          with marquee, live and   huge increase in the levels and in new and different     broadcasts. This was a reaction to a positive doping    asked to comment on
        NBCSN ranked as the top sports cable network         interact with their fans like never before.              original, content from   ways of cheating that have emerged.                      test involving German rider Patrik Sinkewitz which      major sports marketing
     in primetime over the 14 days it presented live            As a result of the shifting distribution landscape,   the US and around           The temptations are greater than ever, as athletes    came on the back of several other high profile          and sponsorship
     Rio 2016 coverage, averaging 1.32 million viewers       some sports are not only surviving in this ever-         the globe.               know that breaking a world record or winning             failed drugs tests by leading (especially German)       issues in the media.
     for its primetime coverage. Telemundo and NBC           changing media climate but are thriving. Soccer,                                  a gold medal can be a passport to great riches.          cyclists. But the viewers had other media options       He is now a freelance
     Universo’s coverage of the Rio Olympics reached         cricket and rugby are growing in momentum with                                       But where is this all going to end, how can the       available to them to watch the Tour and this was an     PR, Marketing and
     16.6 million viewers. Across NBCOlympics.com and        the US TV viewing audience, due in part to new                                    cheats be stopped and who has the power to stop          isolated and rare protest by a media rights-holder.     Sponsorship Consultant
     the NBC Sports app, there was a record 3.3 billion      partners that are devoted to marketing to and                                     them? In recent times there has been a very much             So-called ‘embarrassment clauses’ are now fairly
     total streaming minutes for the company.                attracting millenials.                                                            quicker and more decisive reaction from major            standard within major sponsorship agreements.
        However, despite these impressive results, all the      The 2015 Women’s World Cup final amassed a                                     sponsors affected by any sporting scandals.              These have become increasingly significant in
     media pundits focused on was that the TV numbers        record-setting 25.4 million viewers on Fox. More                                     The corporately- and socially-aware world in          helping to protect the images of major brands, as
     were down 17 per cent from the 2012 games in            than 1.4 million households tuned in to Willow                                    which we now live puts increasing pressure on big        more and more athletes and teams are accused
     London and, more significantly, that the drop-off       TV to watch the ICC World Twenty20 cricket                                        brands and global corporations to make sure their        or found guilty of misdemeanours both within and
     was 25 per cent in the highly-coveted 18-to-49-         competition in March. PRO Rugby, the only                                         house is in order and that sports or ambassadors         outside the playing arena. Surely there must come
     year-old demographic.                                   US-sanctioned rugby league, just completed its                                    that they partner with are squeaky clean and             a time when broadcasters start to insist on the same
        While the Olympics is just the latest sports         inaugural year with carriage on both ONE World                                    operating completely within the laws and rules of        sort of protection?
     media event coming under TV ratings scrutiny, the       Sports and AOL.                                                                   their sport.                                                 Somehow the integrity and honesty of sport
     overlying question of whether sports rights have hit       In a story line suited for ‘Game of Thrones’,                                     Sponsors are a very powerful collective group that    has to be maintained. It is the duty and the role
     their ceiling as sports consumption habits change       TV’s rule over smaller properties is waning and a                                 provide an increasing and an increasingly important      of governing bodies and rights holders to do this.
     continues to loom large. More importantly, what         new king born out of a digital womb has come                                      revenue stream, but it is the broadcasters that really   If these governing bodies were to face the threat
     does this mean for leagues or governing bodies          on the scene.                                                                     hold the power. When it comes to watching sport          of legal action or significant financial penalty for
     that are not the NFL, EPL or Olympics in stature?          The entry of digital providers, like Facebook and                              the really meaningful numbers come through the           not delivering fair and honest competition, it would
        The prices of the above properties and other         Twitter, with designs to serve fans with live sports                              media, and in particular on television and online.       surely have a major impact. As the number of major
     marquee events are continuing to escalate at a          will make the next round of negotiations interesting                              Broadcasters are also being cheated, but unlike the      crises impacting on sport continues with no solution
     rapid rate which limits the number of players willing   for the major sports leagues. While we wait to see                                millions of individuals who pay money to watch sport     in sight, it must now be time for broadcasters to use
     or able to compete with such high stakes. Smaller       if a new distributor like Amazon or Google emerge                                 live at different venues, they potentially have the      their power to take a decisive and collective stand
     sports properties that may have been the centre of      as the Netflix of Sports, what does this mean for                                 power to do something about cheating in sport. They      to sort out the problem.
     bidding wars during the proliferation of sports cable   emerging sports properties and content providers                                  provide the lion’s share of sports funding, so why are
     networks several years ago are now becoming the         looking for programming?                                                          they not making a stand and working to ensure that
     casualties of some of these same providers being                                                                                          what the public watch on their screens is honest and
     judicious in spending amidst the increasing pace          A win-win proposition.                                                          fair competitive sport?

                                                                                                                                                                                                               LEADING INDUSTRY VOICES FEAURE DAILY AT wwwsportcal.com/news
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                                                      YMPIC
                                                    OL
                                                          G
                                                          E WIN
                                                        VI       TH   E FU T U R E
                                                                                                       By Call
                                                                                                              um Mu
                                                                                                                   rray

                                                                    “We consciously went into these           On the final day of this summer’s Olympic
                                                                  Olympics with a strategy to put content     Games in Rio de Janeiro, NBC, the US
                                                                  across all platforms. We committed to       Olympic broadcaster announced, ahead
                                                                  stream every event live and put Olympic     of the closing ceremony, that the average
                                                                  content in prime time on our cable          audience for its prime-time coverage of the
                                                                  networks for the first time.”               sports competitions on its main television
                                                                    Mark Lazarus, chairman of the             channel, cable channels and online platforms
                                                                  NBC Sports Group                            was 27.5 million across the 15 nights.
                                                                    “Our primary broadcasting objective          This figure was down by over 9 per cent on
                                                                  has always been to ensure that as           the figure of 30.3 million for London 2012,
                                                                  many viewers as possible are able to        even though the more favourable time zone
                                                                  experience the games. Recent games          meant there was more live coverage in prime
                                                                  have demonstrated that through our          time this year.
                                                                  partnerships with the world’s leading          What’s happening to Olympic viewing –
                                                                  broadcast organisations, we can             and what do NBC’s figures mean for the rest
                                                                  successfully use new technology and media   of the world?
                                                                  platforms to reach more people with more       NBC itself pointed out that this year’s
                                                                  coverage than ever before.” Timo Lumme,     figure was still the second highest for a
                                                                  managing director, IOC Television           summer Olympics not held in USA, yet the
                                                                  and Marketing Services                      audience decline came despite the fact
                                                                                                              that USA enjoyed its best-ever Olympics
                                                                                                              on foreign soil, topping the medals table,
                                                                                                              with 121 medals, including 46 golds, with
                                                                                                              highlights including swimmer Michael Phelps
                                                                                                              winning five more golds to take his record-
                                                                                                              breaking career tally to 23 and gymnast
                                                                                                              Simone Biles impressing judges and TV
                                                                                                              viewers as she picked up four golds.

     The IOC's Timo Lumme
22   Media                         Olympic Viewing                                                                                                 www.sportcal.com                                                                                    Q3 2016             Sportcal Insight     23

                                                                                                       In an exclusive interview with Sportcal     invested $200 million last year. Snapchat     broadcaster. What NBC wanted was to                The IOC is itself agreeing deals directly
                                                                                                    Insight, Timo Lumme, the IOC’s managing        also created daily ‘live stories’, using      grab the audience and motivate them to         with social media, having recently finalised
                                                                                                    director of IOC Television & Marketing         content from NBC, athletes and sports         come onto NBC platforms.”                      deals with Facebook and Google.
                                                                                                    Services, said: “Clearly what people           fans at the scene.                               Olympic broadcasters, Lumme                 Agreements with Twitter and Snapchat
                                                                                                    access and consume in the media is                The deal was pioneering because, in        said, “have complete freedom to do             are also in the pipeline, according to
                                                                                                    changing. If you have kids, you can            the words of Gary Zenkel, president of        social media deals. But where there            Lumme, who said: “We have agreements
                                                                                                    observe how they tend to have their            NBC Olympics, “We have never allowed          is a component of Olympic rights               with the major platforms to use them as
                                                                                                    mobiles tied to them, they consume             the distribution of any game highlights off   involved, we get to approve them.              promotional platforms. For the benefit of
                                                                                                    through digital means.”                        NBC’s own platforms.” However, Zenkel         Any sub-licences by gatekeepers to             our broadcasters, on Google searches you
                                                                                                       Lumme pointed out that the growth of        said that Snapchat “really effectively        other platforms are subject to approval        get a framed content box linking to the
                                                                                                    digital viewing has not brought an end to      reaches a very important demographic in       by the IOC, that’s our general way of          digital coverage of the broadcaster in your
                                                                                                    the growth of traditional linear television    the United States, and is very important to   doing business. We want to support             territory. If the search is superficial, you
                                                                                                    coverage of the Olympics, with 125,000         our efforts to assemble the large, massive    our partners, but also be protective           may stick on the social media platform. If
                                                                                                    hours being shown via this means from          audience that will show up to watch the       of our brand and rights, which can be          it’s deeper, you go the official broadcaster
                                                                                                    Rio, compared with just under 100,000          Olympic Games.”                               somewhat complex. Ultimately, though,          or website.”
                                                                                                    hours from the London 2012 games.                 Ben Schwerin, Snapchat’s director of       we encourage agreements to amplify
                                                                                                       He said: “It’s not necessarily the number   partnerships, added: “It’s as much about      and broaden the reach of the games.”
                                                                                                    of channels, which is peaking at just over     what’s going on on the field as what’s

                                                                                                                                                                                                                           AT
                                                                                                    500 channels, but they continue to pump        going on in the Olympic village and

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                                                                                                                                                                                                              SNA
       The Olympic Channel's Mark Parkman                                                           out more programming. That’s a good            Rio and really feeling like you’re there -

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                                                                                                    thing. It’s partly a function of two more      seeing it through the fans’ eyes and the
        What’s happening, Alan Wurtzel,                 Lazarus told Bloomberg that NBC             new sports [golf and rugby sevens were         athletes’ eyes. Billions of people watch

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     the president of research and media             plans to expand the options at future          added to the Rio programme, bringing

                                                                                                                                                                                                               I
                                                                                                                                                   the Olympics on TV but a small fraction
     development at NBCUniversal, NBC’s
     parent company, has acknowledged,
     is that the Olympics are being affected
                                                     games, saying: “We… understand that
                                                     to millennials and younger viewers,
                                                     prime time is really ‘my time’. They want
                                                                                                    the total number of sports to 28]. The
                                                                                                    Olympic programme is very attractive.”
                                                                                                       However, digital growth, Lumme said,
                                                                                                                                                   actually get to attend them in person.”
                                                                                                                                                      Matthew Henick, BuzzFeed’s head of
                                                                                                                                                   development, said that young people “are          DE AL : D
     by major technological and behavioural          to watch on their terms, and that’s why        is “even more dramatic. At London 2012,        not necessarily glued to their televisions
     shifts in the viewing of live sport. Wurtzel    moving forward we’ll continue to adapt         80,000 hours of coverage were screened.        anymore, and Snapchat is something they
     said: “The Olympics are not immune              to viewer behaviour with our coverage on       In Rio, this had more than doubled to          check in with multiple times a day.”             NBC attracted 35 million viewers and           “What we discovered was that
     to the tectonic changes in consumer             multiple platforms.”                           211,000 hours. Lumme said: “More                  As the games began, it emerged that         2.2 million views for clips of its coverage   there was such an appetite for this,
     media behaviour.”                                  Lazarus rejected the suggestion that this   and more broadcasters are becoming             Globo, the prominent Brazilian commercial      of the Rio 2016 Olympics offered              that it made sense to create several
        During Rio 2016, for the first time,         new and growing audience represents a          digitally capable, putting as many hours       broadcaster and Olympic rights-holder,         through its partnership with Snapchat,        Live Stories during the day. They
     NBC risked ‘cannibalising’ its own              ‘cannibalisation’ of NBC’s traditional TV      as possible on digital platforms. If London    had also partnered with Snapchat to offer      the media and messaging app.                  would spend one Live Story on beach
     audiences by showing live, prime-time           audience, saying: “I don’t like the word       was the digital games, Rio was the super-      clips from the games, the first time that        The clips were viewed via the pop-up        volleyball alone.”
     coverage of Olympic sports –often the           ‘cannibalisation’. But would some watch        digital games: games that were even more       Globo had offered exclusive coverage on        Snapchat Discover channel and through            Despite fears of ‘cannibalisation’
     so-called minority sports – on its cable        NBC if we didn’t put the sports on cable?      digital than before.”                          social media, with Snapchat publishing         Snapchat’s daily Live Stories facility,       of NBC’s prime-time Olympics
     channels. And it was rewarded with small        Almost certainly. But they’re going to            In Italy, for example, fans were able       Globo content on its Live Stories page.        which scored a total of 230 million           TV coverage, a study that NBC
     but nevertheless significant audiences          similar content - to the Olympics, not to      to watch more than 1,100 hours of Rio             Meanwhile, in Australia, Twitter,           minutes of consumption, Snapchat said.        commissioned from Shareable found
     for those events. For example, on the           entertainment programming, other sports        2016 coverage across public-service            the social networking site, signed a           BuzzFeed, the media company in which          that 84 per cent of ‘millennials’ who
     final Tuesday of the games, 33.4 million        programming or news programming.”              broadcaster RAI’s three free-to-air            partnership with Seven Network, the            NBC invested $200 million last year, was      watched Olympic highlights on social
     viewers watched NBC’s prime-time                   The trend is not being ignored by           channels, as well as 2,400 hours of live       Australian commercial broadcaster,             given near total production control over      media also watched NBC’s prime-time
     Olympic coverage, a fall of over 5 million      rights-owner the International Olympic         event broadcasts via online, mobile and        to stream highlights broadcast by the          the content by NBC.                           coverage. Zenkel said: “We have a
     on the figure for the equivalent day at the     Committee. Yiannis Exarchos, chief             video-on-demand. Meanwhile, in France,         channel from the games.                          NBC’s Zenkel said: “We would talk           better sense of what’s working here,
     London 2012 games. However, a further           executive of Olympic Broadcasting              fans could follow the games on four               Under the agreement, Seven streamed         to them every morning - what we were          and we’ll take that and add it into the
     2.3 million were watching on cable, and         Services, the IOC’s host broadcasting unit,    free-to-air France Télévisions channels,       videos using Twitter Amplify, the social       focusing on and the stories that were         sponsorship and advertising equation
     the equivalent of 404,000 were streaming        said: “Today, most [broadcasters] have         showing a combined 700 hours of                media site’s platform which allows             emerging, and there would be some             that we offer advertisers across TV,
     live video and earlier events. That means       their own digital platforms and we see         coverage, while 2,400 hours of live event      publishers to monetise video content           coordination that way. But we did not         mobile, web and now social.”
     that over 8 per cent of NBC’s prime-time        that they’re using these to bring the public   coverage was available online and on           through advertising, with Twitter and          want to impair their ability to exercise         The Snapchat footage was only
     Olympic audience on a given night had           to their traditional channels. Digital feeds   mobile, and 1,200 hours on connected           Seven sharing advertising revenues.            and flex their creative muscles for that      available in USA, where NBC paid about
     migrated to digital or cable coverage of        traditional TV and vice versa.”                TV platforms.                                     Lumme said of the NBC-Snapchat              day’s edition.                                $1.23 billion to acquire the rights for
     games – a figure the broadcaster knows             And there’s another factor: social             Rio 2016 “was also the most                 deal: “It was clearly designed for NBC           “They took athletes and presented           the Rio Olympics. Snapchat did not pay
     that it can no longer afford to ignore.         media, which do not even need to acquire       connected games,” according to                 to go where young people are and               them in a way that we historically            a rights fee, but shared the advertising
        Up to that same Tuesday, some 78             broadcast rights to create huge virtual        Lumme, who added: “Now we’re                   attract them through offerings appealing       haven’t. It was designed for the              revenue it generated with NBC, which
     million unique users had streamed               online communities which are engaging          seeing the development of partnerships         to them; putting the Olympics in front         Snapchat audience.                            took the lead in selling advertising.
     Olympics coverage on the NBC Sports app         with the action, attracting the attention      between broadcast rights-holders and           of them. Either they could continue
     and NBCOlympics.com website, up 24 per          of advertisers and of the IOC itself.          digital platforms.”                            to consume the Olympics there [on
     cent on the same point at London 2012.          Exarchos referred to the “very aggressive         In May, NBC agreed a pioneering deal        Snapchat] or also consume them on
        Elsewhere in the world, the time             emergence of some media, especially            for Snapchat, the social media image           traditional TV, whichever was the most
     difference meant that catching up on the        on social networks, that are completely        messaging app, to show clips from the          convenient screen.
     action via phones or tablets was arguably       changing the environment and represent a       Rio Olympics, with Snapchat setting up            “We’re talking about promoting
     even more attractive than in USA, which         risk to traditional media.”                    a dedicated channel to show short clips        to the audience and teasing them
     is located in broadly the same time zone           So how is the IOC adapting to this          and behind-the-scenes content curated by       to drive them to NBC platforms, not
     as Brazil.                                      changing world?                                media company BuzzFeed, in which NBC           live streaming. Snapchat was not a
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