iSportConnect Sports Business Index – March 2

Welcome to the iSportConnect Sports Business Index, after a couple of difficult weeks for our index we are back on a more positive front this time around, 11 of our 30 companies have had a positive week.

The glaring story around all of sport is of course still the sale of Manchester United, but we will get to them later. 

It was announced yesterday afternoon (sadly after I had crunched the numbers for this week’s index) that James Dolan’s Madison Square Garden Group is launching its own OTT streaming service MSG+. 

Set to launch in the summer MSG+ will provide subscribers with live streams of New York Knicks, New York Rangers, Buffalo Sabres and the New Jersey Devils. This all comes for $29.99 a month and viewers wouldn’t have to pay for a cable service as well. This is going to appeal to a lot of younger audiences who now have more of an ability to pick and choose what they want and just pay for that.

Is this something we are likely to see in other regional sports centres across the US? 

David Beckham’s Guild Esports are up 9.988% this week after announcing the launch of a new in-house production and creative studio this week. This will enable them to provide bespoke content for their sponsors as well as other independent brands and media owners. Potentially a game changer for them if they can realise the potential.

Ok, let’s talk about the big red elephant in the room, Manchester United, whose share price has fallen 9.743%. It has been reported that the bids placed by Ineos owner, Sir Jim Ratcliffe and Sheikh Jassim bin Hamad Al Thani, Chairman of the Qatar Islamic Bank have fallen short of the $6 bn that the Glazer family are looking for. The fall in share price is basically saying that the market doesn’t believe that a sale will go through and that they don’t see  increases in the bids. You wouldn’t put it past Sheikh Al Thani upping his bid would you?

Let’s take a look at the rest of the Index:

DAZN and ITV to share IPL rights for next five years

It was reported by Matt Hughes of the Daily Mail yesterday that the two broadcasters have come together to grab the rights for the next five years.

The new deal means that the IPL will be returning to free-to-air TV for the first time since 2014. ITV are set to have 16 games while the remaining 58 will appear on DAZN.

DAZN hold the IPL rights for South Africa and Australia but this is the first time they will be broadcasting cricket to a UK audience.

Current holders of the rights Sky Sports didn’t match the bid placed by DAZN and ITV, instead choosing to focus on ICC tournaments and cricket played in the UK.

The 2023 IPL season starts with GT vs CSK on 31st March.

Formula 1 and Tottenham Hotspur announce 15-year strategic partnership

Formula 1 has agreed a 15-year strategic partnership with Premier League football club Tottenham Hotspur to help identify and foster a new generation of motor sport talent.

The partnership will also see the delivery of the world’s first in-stadium electric karting facility and London’s longest indoor track, at the state-of-the-art Tottenham Hotspur Stadium.

The high-tech, in-stadium facility, which will be the only one of its kind in Europe, will open later this year with separate tracks for adults and juniors, both accredited by the National Karting Association – making it a potential future venue for national karting championship races. Based below the stadium’s South Stand, the facility will also include interactive motorsport activities and food and beverage outlets.

Together Formula 1 and Tottenham Hotspur will develop a new driver academy programme which aims to widen the motorsport talent pool and help identify the next generation of F1 drivers.

Formula 1 and the club will deliver educational activities for schools to engage local young people in motorsport and showcase career opportunities and pathways in areas such as engineering and software development.

Furthermore, a key focus of the partnership will be to create apprenticeship and career opportunities for local young people and bring greater diversity to the motorsport industry, particularly for women and underrepresented groups.

As part of the partnership, F1 will also collaborate with Tottenham Hotspur on sustainability initiatives that promote environmental responsibility. Formula 1’s commitment to be Net Zero Carbon by 2030 aligns closely with Tottenham Hotspur’s targets, as a signatory of the UN Sports for Climate Action Framework’s ‘Race to Zero’, to halve its greenhouse gas emissions by 2030 and become net zero by 2040.

Stefano Domenicali, President and CEO, Formula 1, said: “As we continue to grow our sport, partnering with world renowned brands like Tottenham Hotspur allows us to take Formula 1 and motorsport to new and more diverse audiences. The karting experience will be a destination and place that families, friends, and aspiring drivers from all over the world will want to visit and enjoy, engaging new audiences and offering an accessible entry point to the world of motorsport.

“Our two brands have a shared vision to create life-changing career opportunities, promote diversity and inclusion, such as through the recently announced F1 Academy, and driving environmental sustainability – our innovative partnership will bring all of this to life.”

Tottenham Chairman Daniel Levy added: “Since building this stadium our ambition has always been to see how far we can push the boundaries in delivering world-class experiences that will attract people from around the world all year round. We have been able to bring the biggest names in sport and entertainment to London N17. We are extremely excited about what this long-term partnership with F1 will bring for our global, national, and local communities.”

David Richards CBE, Chairman of Motorsport UK, the governing body for four-wheel motorsport in the UK, said: “I congratulate Tottenham Hotspur and Formula 1 on this innovative partnership. This new karting facility aligns perfectly with Motorsport UK’s mission to inspire and enable more people to participate in our sport in a safe, fair, fun, inclusive and progressive environment. I look forward to seeing even more people enjoy karting but particularly to see a greater level of diversity amongst the visitors.”

SPORTEL Rendez-vous Bali 2023 successfully setting the scene for 2024 follow up

Following two days of intensive business meetings, networking and high-level conferences, the first SPORTEL Indonesian Rendez-vous wrapped up successfully! Previously held in Hongkong, Shanghai, Singapore and lastly in Macau in 2019, it was the first time that SPORTEL’s Asian event took place in Bali, after four years of absence on the continent, following the global pandemic. 

For this first edition, SPORTEL Rendez-vous Bali welcomed almost 400 participants from more than 200 companies, representing 31 countries. With more than 55% of participants from the APAC market, SPORTEL Rendez-vous Bali has clearly been a great opportunity for the SPORTEL community from Europe and the Americas to reconnect with sports business leaders from Indonesia, Asia and Oceania.

In addition to the traditional business market, characteristic of SPORTEL, delegates were able to attend the Conference Summit at Speakers Corner, covering the state of the industry through the “Big Picture in Asia”, the exponential success of international football properties within Asia, plus how the regional esports and specifically mobile esports sector is brimming with opportunities for savvy media companies. From a business tech perspective, top executives shared the latest in OTT and streaming strategies and the hot trend of FAST channels, plus the influence and innovation the cloud and AI are having on sports and broadcast. On this occasion, Louis Ducruet, Nephew and Official Representative of H.S.H. Prince Albert II of Monaco, presented Monaco as a sporting paradise and Minister of Tourism and Creative Economy of the Republic of Indonesia, Sandiaga Uno, delivered a special keynote “Indonesia Sport Tourism Event on Shaping National Economy”.

To extend networking opportunities and SPORTEL experience, numerous events were held such as the Opening Party at the Grand Hyatt Bali, a Whisky & Cigar afterwork at Bali Collection followed by a Gala Reception at Grand Hyatt offered by Cubmu. In parallel, a Golf Tournament, under the flagship of SPORTEL, took place on two exotic Golf Courses: New Kuta and Bali National Golf as well as two e-sports tournament PUBG (Player Unknown’s BattleGround) and MLBB (Mobile Legend: Bang Bang). SPORTEL participants also had the opportunity to try out the electric cars of the Wuling brand at the Test Drive Area located at Grand Hyatt. Finally, this great event ended by an exclusive party at Cliff at Canna Bali, Nusa Dua.

“I’d like to thank all our attendees, exhibitors and speakers, who’ve followed us in this new adventure! Thank you to our host, Transvision for the hospitality in the outstanding setting of Bali and the Grand Hyatt, and a special thanks to our partners, Java Festival Production and Cubmu, for their support”, stated Laurent Puons, CEO of SPORTEL.

“It is an honor for Transvision to have collaborated with Cubmu and Java Festival Production to organize the first SPORTEL Rendez-vous event in Indonesia. We hope that with this event, we will have a greater influence in the sports industry. In addition, SPORTEL Bali has also been a great opportunity to promote Indonesia as a key potential market for sports content”, said Peter F. Gontha, President and CEO of Transvision.

“Like SPORTEL Miami, SPORTEL Bali is a regional market allowing our community to meet the business leaders from a specific region, who are not attending SPORTEL Monaco. Indeed, in Monaco 2022, the APAC participation only represented 10% of our participants. With 55% of APAC participation in Bali, our goal is achieved. The future of SPORTEL Asia is in Bali. This is why I am pleased and honoured to confirm that SPORTEL Rendez-vous Bali will be renewed in 2024”, concluded Laurent Puons.

After a sold-out edition in March 2022, SPORTEL Rendez-vous Miami will be back from 9 to 10 May, gathering sports decision makers within the Americas.  The SPORTEL flagship event will take place in Monaco from 23 to 25 October 2023, with 7000 square meters of market floor and more than 2000 participants meeting, networking and brokering deals.

SPORTEL Rendez-Vous Bali in numbers :

  • 45% of C-level attendees
  • 32% of content buyers
  • 55% of participants from the APAC region (versus 10% in Monaco) 
  • 40% Europe and the Americas
  • 75 APAC Companies that did not participate to SPORTEL Monaco 2021 and 2022

Member Insights: Lessons must be learnt from the 2022 Champions League Final

In this Member Insights piece, David Alexander the Managing Director of Calacus PR, looks into the shambles that was the 2022 Champions League final and what we need to learn from it.

The events in Paris for the UEFA Champions League Final last season brought back horrible memories of past footballing tragedies.

Liverpool played Juventus in the European Cup Final of 1985 at the Heysel Stadium in Belgium, with disorder leading to 39 fans dying and English clubs being banned from European football for five years.

Four years later, disaster struck again when 97 Liverpool fans died ahead of the FA Cup semi-final against Nottingham Forest at Sheffield Wednesday’s ground.

More than 700 fans were injured and have fought for years to get justice after initially being blamed for the crush which led to the fatalities.

As recently as the end of January this year, police chiefs have apologised for their handling of the situation and the ‘deflection and denial’ which has led to court cases, tribunals and finally a recognition that Liverpool fans were entirely blameless.

History may have repeated itself in Paris last season, though, with the final against Real Madrid delayed after problems for fans getting into the Stade de France.

Witnesses described seeing fans scared for their lives, being pushed and assaulted by the French police, who fired teargas into crowds outside the stadium.

Broadcast coverage then reported that UEFA had blamed the delays to the start of the game on the late arrival of Liverpool fans.

The European governing body later suggested that fake tickets were the cause of the overcrowding and delays and issues a statement saying: “In the lead-up to the game, the turnstiles at the Liverpool end became blocked by thousands of fans who had purchased fake tickets which did not work in the turnstiles.

“This created a build-up of fans trying to get in. As a result, the kick-off was delayed by 35 minutes to allow as many fans as possible with genuine tickets to gain access.

“As numbers outside the stadium continued to build up after kick-off, the police dispersed them with tear gas and forced them away from the stadium.

“UEFA is sympathetic to those affected by these events and will further review these matters urgently together with the French police and authorities, and with the French Football Federation.”

That version of events was questioned by Merseyside police, which said the “vast majority of fans behaved in an exemplary manner” in “shocking circumstances”.

And the French Senate backed up Liverpool’s claims, with a report which identified French police failings, having misjudged Liverpool fans’ conduct and dated in its approach.

The report also found “major shortcomings on intelligence” – noting that there had been “an absence of hooligans” and instead, at a local French level, a “presence of delinquents in large numbers.” 

The senate found there had been a failure to anticipate transport flows of supporters on the night, with pre-screening security points near the stadium leading to checkpoints becoming bottlenecks. 

It was revealed that two French police officers were being investigated for disproportionate use of teargas against Liverpool supporters with the report adding that it “had contributed to a feeling among supporters that excessive force, or even police violence, had been used against them.”

Eight months after the final, UEFA have finally had to admit that the buck stops with them after an Independent Review Panel they had commissioned found that they had ‘marginalised’ their own safety and security unit.

The panel rejected ‘reprehensible’ claims made persistently by UEFA, the French police and government ministers, that thousands of Liverpool fans without valid tickets had caused the problems. 

The report added: “It is remarkable that no one lost their life. All the stakeholders interviewed by the panel have agreed that this situation was a near-miss: a term used when an event almost turns into a mass fatality catastrophe.

“The parallels between Hillsborough 1989 and Paris 2022 are palpable. The similarities include the fact that both events were preventable and both were caused by the failures of those responsible for public safety. Neither was a ‘black swan’ event, or the result of a ‘perfect storm’. Both events were foreseeable.

“In the judgement of the panel, the different outcomes were a matter of chance. In one, nearly a hundred died, the other none — but through no merit of those in charge.”

It was particularly damning for UEFA that UEFA’s safety and security unit played no part in planning for the match, nor in dealing with the crisis as it happened.

The decision to delay kick-off was made by UEFA President Aleksander Ceferin and the Panel added: “The panel has concluded that UEFA, as event owner, bears primary responsibility for failures which almost led to disaster.

“Subsequently, UEFA has not recognised its own role or that of other stakeholders in the problems on the night. The panel is left with a sense of real concern at the lack of insight into what occurred on 28th May and the failure to recognise the role of the authorities. The panel is also troubled by a number of stark differences as to the facts of what happened, and a general default position of blaming the Liverpool supporters, without any proper evidential basis.”

The report makes 21 recommendations for to improve , including for safety and security to be put at the centre of match planning with calls for UEFA to publish an action plan and regular updates on its progress towards implementing all the recommendations.

It was certainly damning and leaves question marks over UEFA’s leadership.

Liverpool posted a statement which said: “We implore UEFA to fully enact the recommendations as outlined by the Panel – no matter how difficult – to ensure supporter safety is the number one priority at the heart of every UEFA football fixture.

“We were determined to make sure a robust investigation was conducted in order that lessons are learned to ensure the safety of football supporters in Europe is never compromised again.

“Shocking false narratives were peddled in the immediate aftermath of that night in Paris; narratives that have since been totally disproven.

“As a football club with proud history in Europe, we call on UEFA to do the right thing and implement the 21 recommendations to ensure the safety of all football supporters attending any future UEFA football match.”

More than two and a half thousand fans were caught up in the drama with lawyers reported to be planning to bring legal action against UEFA, backed by the Review.

The Football Supporters’ Association’s head of policing and casework, Amanda Jacks, said: “This is a total exoneration of Liverpool fans who were smeared by those responsible for this fiasco in an attempt to cover up their own failings.

“The panel has made clear to UEFA that this report has to be taken seriously and cannot be allowed to sit in a drawer gathering dust. Subsequently, the panel recommended that UEFA publish an action plan detailing how they will ensure the recommendations are acted upon.

“Supporter groups across Europe have long called for a higher standard of policing, stewarding and fan experience across all European club fixtures. Fans can continue to play a part by ensuring their own clubs read this report and take note. Lasting, positive change has to come from this.”

UEFA General Secretary Theodore Theodoridis, did at least apologise, but it shouldn’t have needed an independent review for the governing body to show contrition: ”On behalf of UEFA, I would like to apologise most sincerely once again to all those who were affected by the events that unfolded on what should have been a celebration at the pinnacle of the club season. 

“In particular, I would like to apologise to the supporters of Liverpool FC for the experiences many of them had when attending the game and for the messages released prior to and during the game which had the effect of unjustly blaming them for the situation leading to the delayed kick-off.

“UEFA is committed to learning from the events of 28 May, and will cooperate closely with supporters’ groups, the finalist clubs, the host associations and local authorities in order to deliver outstanding finals where everyone can enjoy the game in a safe, secure and welcoming environment.”

When Liverpool and Madrid met again in the Champions League at Anfield last month, it was no surprise that their fans held up banners taking aim at UEFA and accusing them of being liars.

Notably, Ceferin did not make a public comment about the findings of the Panel, a rare communications error from the leader of European football who hasn’t been shy to make statements in the past.

We can only hope that UEFA learns from its failures in Paris and heeds the lessons learnt so that there is no such repeat in future.

As the report concluded: “Institutional defensiveness, putting reputation and self-interest above truth and responsibility, prevents progressive change. 

“A healthy organisation welcomes scrutiny and criticism based on evidence, an unhealthy one hides behind prejudice and baseless assertions and contributes to a carousel of blame, where it is everyone else’s fault. 

“That is why independent investigations based on evidence are so important, because otherwise the same will happen next week or next year with devastating consequences.”

To find out more about the work done by Calacus PR please click here

Meet the Member: “We have set ourselves the target of becoming a top three sport among 12 to 24-year-olds”

The NFL as a sport is growing massively in the UK, all of the 32 franchises have come over and played here since 2007. They are looking to continue to grow with a particular focus on young people, to find out what they’re doing our Content Manager, Alex Brinton caught up with the NFL UK General Manager, Henry Hodgson.

Henry, you’ve been at the NFL since 2003. Tell us a bit about your journey from Digital Media Manager of NFL UK to now the General Manager?

My NFL journey actually started a little bit earlier than 2003 – I started as an intern back in 1996, but it was 2003 when I started working permanently for the NFL. After the league made a decision to bring NFL Europe to an end, I was part of the team that got the opportunity to pitch for and deliver the first game in the UK.

After working on a few London Games, I was really lucky to get the opportunity to take a role for the NFL in the US working on the NFL’s digital properties. After six or seven years of that I got approached to work on the international side again, but from Los Angeles which was great. I was able to take up a position leading the global marketing for the NFL with the aim of growing the global fan base. 

Then, last summer I got the opportunity to come back to the UK and take up the General Manager position, bringing me full circle.  

How has the sport changed in the UK in that time?

It has changed a lot, it is pretty unrecognizable. People were definitely still aware of the NFL back in 1996 and there was a pretty avid fan base back from the 80s when the sport was on Channel 4. But I think the sport had become very niche.  That has certainly changed over the last few years with the London Games helping to broaden the audience, along with efforts to make the sport more accessible and more local. 

We really wanted to help people in the UK find the sport and then once they’ve found it, try to get them to fall in love with it. A testament to the work that’s been done up until now is that you’ve seen the fan base increase, you’ve seen the viewership increase, you’ve seen the engagement across digital and social channels, plus increases in participation.

All of those things are the factors that are going to make the sport more popular and more of a fixture in the UK sporting calendar. And that’s where the focus has been.

The first game in the UK was in 2007, how easy was it to convince the NFL to do that and tell us a bit about the planning process?

All the credit for the vision to do it and then work leading the team that executed it has to go to Alistair Kirkwood who was the Managing Director of NFL UK at the time. He was the visionary that said, ‘let’s try and do this’ and he put in a lot of the work to convince leadership in the US that playing a game in London needed to happen to accelerate the growth of the sport.

We still had a relatively small team then, so we all had to put in a great deal of work into the planning process for the first game. It went really well, but it was a lot of work to get it over the line. 

It got such an amazing reception from the people in the UK and we were thrilled when we found out we were going to get the chance to do it again in 2008. One of the biggest things was taking the learnings from the first game and working out how we would make the next one better. 

That’s been our approach year-on-year really, looking into how we can incrementally improve every aspect of it. We really want to make sure that the fans who come to the games are getting the best experience you can have at a sporting event. We have also put so much work into making sure the games reach further than the fans that are in the stadiums and extend our impact.

Obviously over time the amount of games in the UK has increased, and are now hosted at both Wembley and the Tottenham Hotspur Stadium. How much appetite is there still for NFL games in the UK?

I think there is a gigantic appetite, and that goes back to that first game where 500,000 people registered their interest in buying tickets. We continue to do these registry of interests and we have built to a point where not long after we announced the three London games for this year we had enough demand to sell out all the games. 

Last season, the Green Bay Packers came over and they were the 32nd and final team to come and play over here. I’m not sure we would have believed you in 2007 if you told us every single team would come over here and play over the 15 years. 

We also now have this amazing partnership with Tottenham, where we have committed to playing two matches a year at the Tottenham Hotspur Stadium and through that this partnership will only continue to grow. 

So the demand hasn’t dropped off at all really. And the evolution continued further last year with the Jacksonville Jaguars staging their first game over here on their own rather than it being an NFL-produced game. So you can clearly see what their intent is in trying to make their mark in the UK. 

The time zones don’t make it the easiest watching for fans in the UK, other than having fixtures over here what tools have you used to grow the fan base? 

We did a lot of work with Sky, who we have had a long-term partnership with dating back to 1995, during the off-season. We had a deep dive into viewership and really wanted to try and find out who more about the NFL’s viewership and perceptions of our programming on Sky’s standalone NFL channel. 

One of the things that we needed to correct is the perception that the games are hard to watch. Because actually 6 o’clock on Sunday is the time that most of the games take place and I think if you asked most US sports what time they could choose to be on in Europe, they would probably pick that. Our work with Sky has definitely paid off because this year our viewership in the window has increased significantly.

We also have a great partnership with ITV which started this year, which is a great weekly magazine highlight show. We think this is a really strong way to bring people in because in an hour they cover all the fixtures that happened this week and give a great insight into what has happened in the sport.

We are really active and thoughtful about the content we place on our social media channels as well because we understand that that is where our new audience is and if we can bring young people in through social media that will help us grow. 

One other way we want to grow our fan base is through participation. Flag football participation is increasing globally and it is a great way for kids to get an experience of the game and become fans of the NFL.

Over in the US most fans of the franchises will be concentrated in and around the city they play in, but in the UK they’re scattered around. How easy is it to know who your fans are?

We do market research all year round and that is really important for the way in which we are trying to grow as a sport. Whenever you make a purchase from the NFL, we ask you who you support. This enables us to completely personalize the content we are delivering for you. We can also see through our shop and through our direct-to-consumer offering, NFL Game Pass, which teams are being watched where.

The split is pretty interesting to be honest. The older fans fell in love with the teams who were good back in the 1980s like the Chicago Bears, Miami Dolphins and San Francisco 49ers, while a lot of the younger fans support the New England Patriots because over the last few years they have been participating in the Super Bowl more than any other club.

You’ve been General Manager since July, what has surprised you about the position?

I came into the role with my eyes open having worked at the NFL for so long in a variety of roles. In my time away the amount of London games has increased from one to three, and the amount of work that goes into delivering them at such a high level was definitely eye-opening in my first few months. 

I am extremely fortunate in that the NFL UK team is just fantastic, I need to take my hat off to them really. There’s between 40 and 50 of them and they work so hard to grow and engage our fanbase year-round. That is even more impressive when we are working on delivering the London games. It is kind of remarkable what a relatively small number of people can deliver and deliver to an incredibly high standard.

Looking forward, what can we expect to see from the NFL in the UK in the next few years?

Our focus is still really on growing our fan base in the UK, and we’ve set ourselves a target of becoming a top three sport amongst 12- to 24-year-olds in the UK. So we are myopic about how we reach and engage that younger audience. And really everything that we do is going to be filtered through that lens. 

What are your commercial goals for NFL in the UK and how much support do you get from the main NFL office?

Our commercial goals aren’t that different to the fan engagement ones we just spoke about. If we increase our audience the value of our rights are going to be worth more and we become more attractive to partners.

What are the chances we get an NFL franchise over this side of the Atlantic in the future?

The idea of a franchise in the UK is something that has been talked about a lot ever since we first started playing games in London. We recently started a program that allowed NFL franchises to have their own international marketing rights for countries around the world that they want to focus on. There are six teams that selected the UK as their international HMA market, and they have all made a great impact – albeit in different ways – in the first 12 months of the program.

As I mentioned, one of those clubs, the Jacksonville Jaguars will play their 10th game in London later this year, a real landmark, and last year saw them play one of their own games over here for the first time. Around our London games Commissioner Roger Goodell talked about the idea of a European division of the NFL. And could you bring, not just one team, but potentially even four teams into Europe. 

Could that happen? Yes it could definitely happen, and there is work being done now on the feasibility and various hurdles to get over. But I believe that the biggest thing is continuing to grow the fan base and engagement for the sport and put on high-quality live events. If we keep doing that, we have a real chance of making it happen.

The Bottom Line: The iSportConnect Business Index – February 23

It has been a rough week for the Index, with only a few of our companies coming out on the positive side.

The big story that the majority of the sporting world are focussed on is the sale of Manchester United. Bids for the club have come in from groups in Qatar, USA, Saudi Arabia and the UK’s richest man Sir Jim Ratcliffe. 

Since last week their share price is actually down by 3.646%. It is thought that this is because there is a possibility that the Glazer family might be looking at keeping a part of the club. This news that emerged at the end of the last week has had a direct impact on the share price. Is there an argument that under the Glazers the price could fall back even further. Let’s see when we get clarity at what level the bids were. Expect some volatility.

Away from the bright lights of Manchester, DraftKings are the story of the week. They are up 20.241% this week. That is a huge move. In an effort to remain cash flow positive they have done two things. The first is that they have laid off 140 staff. The second is more interesting, the CEO Jason Robins announced on Friday that they are going to be scaling back their partnerships with sports teams and leagues. 

“It’s really part of an overall effort that we have to be more efficient as a company,” Robins said on the call. “And I think that there is an opportunity in this category to get even better.”  

DraftKings are the official sports betting partner of the NFL, NHL, NBA, PGA Tour and the UFC, none of these would be coming cheap. Robins said that a number of partners had already agreed to reduce fees and they have ended partnerships with others, which ones we don’t know yet.  In 2022, DraftKings spent $1.2 billion on sales and marketing, that is a lot of money that will be coming out of the American sports infrastructure. That has an impact on many levels for North American rights holders

Let’s take a look at the rest of the Index.

The House View – The NBA continue to smash it in tech

The NBA are smashing it in tech, so why are they so far ahead of their peers?

We all saw the amazing launch of the NBA avatar at last week’s Tech Summit. It did look incredible.

I’m sure Adam Silver’s video took hours of production and it’s far from clear what the UX would be but let’s assume it becomes manageable. The ability to watch a live match with friends and insert yourselves into the game is extraordinary. And one that people will willingly pay for.

I want to explore why the NBA is, externally facing anyway, seemingly so smart with their D2C tech offering and I spoke to various rights holders and NBA employees to get their view

The background to this must start by understanding that the holy grail for anyone that owns an audience is around the digital monetisation of that audience. Multiple commentators explain the high prices for recent purchases such as Chelsea and the possible Man Utd sale as a digital opportunity. They will say that if the brand has a supposed 500m global fans and current turnover is $500m (representing $1 per fan income) then surely finding ways through technology to add $1 per fan will be transformational. I appreciate the numbers are rather basic but the belief is that it can’t be hard to do as the opportunities will be forthcoming as technology develops – think web3, NFTs and the use of blockchain etc. The tech, whatever it ends up being, can only enhance the opportunity and we know the tech is advancing fast.

So, back to the NBA. Why do they seem to be so progressive? Why did FAST Company, a couple of years ago, have the NBA at No3 in their Innovative List ahead of SpaceX? The latter build and send rockets to the moon and the NBA plays a game? That seems barely credible. The NBA is regularly ranked as top of the pack among sports innovators. Here are my thoughts with some added contributions

· Leadership

All sports need a point of differentiation and the NBA has been very quick to use tech to advance this differentiation. This is a leadership stance. Well done, Adam Silver.

The NBA commits more resource to the tech space. Do they really? I can’t find a way to measure this except anecdotal comments from NBA employees who certainly felt that there was a concerted push around finding the next technology.

· The sport itself

Basketball as a sport has always played the crossover between music, fashion and sport very well. It’s your trendy friend rather than your reliable mate that is the NFL for example. No knocking the NFL but one person I spoke to did say, “Hell, the NFL still measure 10yds with a chain”. Reliable, solid, but not cool. Sponsors love aligning with the latest trends and storytelling and the NBA fits that bill perfectly

This tech reputation has meant that when companies like SNAP and Meta want to trial new products the NBA is seen as the ideal testing platform. This then becomes a virtuous circle

· Rival sports/Sponsors

I have arbitrarily chosen the EPL, NFL and IPL as major rivals. The general feel from their people is that the NBA needs to be progressive because their biggest local ‘rival’ is the NFL, which is so dominant at extracting media, advertising and sponsorship $$s. And the NFL is progressive too. They have already sold in excess of $50m skins in Fortnite. Yes, they are the reliable old friend but they not standing still either.

As I mentioned previously the NBA has positioned itself as being very fashionable and this sits well with the high roster of tech partners who all want to be associated with a very progressive platform – Google, SAP, ServiceNow, Microsoft, Rakuten and Sportradar.

Of the rival leagues, the NFL has Verizon, Microsoft, Extreme Networks, Zebra Technologies, Intel and Amazon Web Services but their partnerships appear less futuristic. In tech, the EPL can only really boast Oracle and the IPL has Tata group. Neither would be considered advanced in their tech positioning yet. The NBA have deliberately embraced this tech space more boldly than their rivals.

·Owners/Athletes

The NBA have team owners like Mark Cuban, Joseph Tsao, Steve Ballmer and Ted Leonsis, who are super tech savvy and when we interviewed Ted a year or so ago he was very clear that he loved the NBA as they were ‘curious about tech’

 The NBA are also prolific in taking stakes in tech companies and helping them grow. They aren’t the only ones but seem to be very progressive with this model. It’s not about $$ today but building for the future. Easy to talk about but needs good leadership to happen.

Look at how many basketball athletes are serial entrepreneurs from Michael Jordan to LeBron James. These athletes have built empires and tech has played a major role in their investments. Again basketball and tech have become solid bedfellows.

Back to the starting point of digitally monetising global audiences. The new ‘avatar’ tech will bring revenues. How much we don’t know yet and that will depend on the UX, but additional to inserting yourself into live matches there should be an opportunity to insert yourself into an archive game and be the one to score the winning point, run, try, goal, touchdown. I’ll pay for that.

Suddenly the ability to extract money from fans with a genuinely relevant product becomes real. The Chelsea/Man Utd valuation theme makes me think that any club/league/federation that has a large global audience will be able to make serious commercial inroads within a few years to transform their business model. The NBA has now found the ‘avatar’ route and they will find other new ones. Personally I believe the application of web3 technology will be where the monetisation really takes off so it’s an exciting space to be part of.

By Sandy Case, CEO of iSportConnect, if you would like to get in contact about this article or anything else feel free to email me on sandy@isportconnect.com

FIFA publish first CAS report

FIFA has today published a detailed document reflecting the activities of the Court of Arbitration for Sport (CAS) in football-related matters at global level in 2022, and, in particular, in relation to appeals filed against FIFA decisions during that year.

Article 57 of the FIFA Statutes recognises the jurisdiction of CAS to deal with appeals against final decisions passed by FIFA’s legal bodies.

By means of this provision, the various football stakeholders (e.g., member associations, confederations, players, clubs, officials, coaches) can be sure that resolutions passed by FIFA, its member associations, confederations and leagues are reviewed by an independent arbitration tribunal.

As part of FIFA’s ongoing efforts to increase the transparency of its activities, the CAS & Football Annual Report 2022 provides relevant information and statistics related to the numerous appeals filed before CAS in football matters worldwide.

It also offers a detailed description of the most relevant case law from CAS and the Swiss Federal Tribunal as notified last year. The CAS & Football Annual Report 2022 is available here or can be downloaded at legal.fifa.com.

Member Insights: How rights holders’ use of social media has evolved

In this Member Insight article, iSportConnect’s Content Manager Alex Brinton, takes a look at how rights holders’ use of social media platforms is changing. He covers Paul Pogba, Shrek and Warwickshire CCC all in one piece.

Like it or not, social media plays a major role in all our lives – one evening last week I spent four hours on it. 

Rights holders haven’t failed to realise the amount of time members of Generation Z are spending on it, and have changed their digital strategies massively to engage with their fans. 

A great example of this is the way football clubs announce a new signing. We all know the classic image of a star player holding a club shirt or scarf next to the manager, either at the end of a press conference or on the pitch. Rio Ferdinand joining Manchester United, Luis Suǻrez and Andy Carroll signing for Liverpool – every major announcement was marked this way for years. 

The first time this started to change was 2016, when Paul Pogba returned to Manchester United from Juventus for a then-British record fee. United obviously decided that for this marquee signing the scarf and shirt combination wasn’t going to cut it for their fan base. They brought in rapper and Reds fan Stormzy to make a glitzy video with Pogba. Unfortunately for United, this video was probably one of the midfielders best performances in a United shirt.

Now fast forward to January 2023. Burnley’s signing of 22-year-old, Belgian Pro League striker Lyle Foster was unlikely to make major waves in the football community. But Burnley’s reworking of a clip from the film Shrek to announce Foster joining the club pulled in 21.6 million views.

https://twitter.com/BurnleyOfficial/status/1618300188724187136

Not content with that, three days later they used a clip from acclaimed comedy Gavin and Stacey to announce the signing of Michael Obafemi , pulling in another 5.8 million views.

https://twitter.com/BurnleyOfficial/status/1619636479034265601

You have to respect what Burnley have done by bringing attention to signings that would have otherwise, largely, flown under the radar. Their social media team clearly have a great understanding of what the fans and algorithms want. Unsurprisingly, other social media teams jumped on the bandwagon. Warwickshire County Cricket Club announced their signing of Glenn Maxwell for this year’s edition of the T20 Blast by reworking the sorting hat scene from the first Harry Potter film.

https://twitter.com/WarwickshireCCC/status/1625479318141825025

The importance of social media’s algorithms can not be overstated. In a recent interview with iSportConnect, Lamberto Siega, Digital, Media & The Studios Director for AC Milan, said: “Sports clubs don’t choose what is interesting for fans, social trends enhanced by the algorithms, it can be a music, a dance, a behaviour ‘dictates’ how to build content, choosing what works and what follows a specific trend. It is a radical change.” 

It is not just football and cricket teams that are at it, even the official TikTok account for the Paralympics is getting in on the act.

And who can blame them? The job of social media teams is to increase awareness for their sport/team and you can’t say they’re not achieving that.

David Granger who was running the social media channels for Red Bull Racing back in 2009, said: “In 2009, no one really understood what social was  – we still called Twitter a micro-blogging site – and certainly the team principles and half the comms teams either didn’t get its function or were concerned about revealing too much.”

The behind-the-scenes content that has become such a key part of social media for sports teams is what initially engages fans a great deal. Not only do you get to see how your favourite team or driver prepares for a race or a match, you get a real taste of their personality and what life might be like if you were part of the team. 

The England men’s football team are a great example of how, by allowing cameras behind the scenes, they have created a really powerful public image. In days gone by the England team were not popular with the English press and the players weren’t always popular with the public either. Since Gareth Southgate took over as manager, the team have achieved great things on the field and off it. Their social media output at tournaments has changed and at the World Cup in Qatar there were daily interviews with players, challenges and fan Q&A’s – they really became England’s team.

Granger, who now works as Content Director for Cinch, added: “Another key development in recent years is that the age of most social media managers now means they are entirely digitally native, which means they are more likely to understand how conversations between teams and players appeal to a meme culture.”

I have no doubt that in a few years time most of this piece will seem as outdated as Rio Ferdinand wearing a white suit, holding up a Manchester United shirt next to Sir Alex Ferguson. But I am looking forward to seeing where we go next.