Member Insights: Beijing 2022, a year on – The prelude to war & The Olympic Games in an era of constant crisis and change

In this Member Insights article, Michael Pirrie examines the legacies and impacts of the Beijing 2022 Olympics in the countdown to the war on Ukraine.

There is a distinctive emotional weather front that accompanies the arrival of the Winter Olympic Games.

This includes high and low pressure zones of anxiety, excitement, and uncertainty in the cold pre-dawn mornings and shortened days that precede Games competition.  

Danger can lurk ominously, hidden beneath snow and ice.

A practice pirouette can break an ankle and a blossoming career; a final training session can end in tragedy and cost you your life  – Nodar Kumaritashvili, a young Georgian luger, died on a rehearsal practice run just hours before the Opening Ceremony of the Vancouver 2010 Winter Olympic Games.

The scale of the threat confronting the world’s best winter athletes and organisers of the Beijing 2022 Games is clearer a year on from the historic event.

The enormity of Beijing’s challenge was grimly illustrated by China’s soaring Covid death toll following the recent lifting of the world’s strictest lock down.

The external forces that shaped Beijing’s global winter spectacle are also clearer on the first anniversary of the Games as the political snow cover continues to dissolve

The Beijing Winter Games marked a new era of super power sport and politics.

Much of the spectacle was delivered on mountains of machine-manufactured snow, giving organisers a level of control over sport and climate matched only by Qatar’s refrigerated desert football world cup stadiums.

The political climate was more difficult to control.

A diplomatic cold front formed over China’s capital in response to more revelations of human rights abuse, while Chinese fighter jets also scrambled Taiwan’s air space in the countdown to the Games, forcing Olympic peace doves to find alternative flight paths into the host city.

The Beijing Games challenged sport’s status quo as well as athletes.

The Communist Party’s focus on total pandemic and political control chipped away at traditional Olympic freedoms and values.

The diplomatic boycotts also forced governments and international audiences to take sides over China’s controversial human rights record.

The political climate in China meant the voices of athletes were quieter on podium platforms and in the mixed zones.

Beijing’s legacies are more complex a year on, complicated by the close relationship between the Chinese and Russian leaders and subsequent war on Ukraine.

While London took the world from war to sport at the 1948 Olympic Games following the devastation of World War Two, Beijing 2022 formed a backdrop to Europe’s first major war this century.

Western intelligence reports indicate Putin may have delayed the invasion of Ukraine until after the Games in a concession to Chinese counterpart Xi.

While the delay gave Russia – and other Olympic nations – time to get teams home from Beijing before troops invaded, the postponement also avoided an international crisis which could have stopped the Games, seen as vital to Xis historic third term campaign for leadership of China.

Beijing 2022 framed the war on Ukraine – from the meeting between Xi and Putin on the eve of the opening ceremony to the commencement of the invasion just days after the Games.

Devastating invasion images quickly united the international community, challenging governing bodies and federations to respond in meaningful ways that reflected the gravity of the situation and sport’s position of influence.

The Ski Federation of Norway was one of the first to respond: “Sport is not detached from this (invasion) and cannot remain passive to what is happening now,” the federation said.  “The Norwegian Ski Federation’s message to Russia and Russian athletes is crystal clear – we do not want your participation.”

Beijing was constantly tense and threatening  – just a two hour flight from the Wuhan epicentre of the pandemic that had crushed the world.

Those risks began to subside as China’s closed loop system moved into overdrive and locked out the virus.

Beijing’s biosecurity bubbles and barriers minimised human contact and infections. 

The loop’s strict isolation and quarantine requirements also overwhelmed several athletes, and organisers scrambled to provide more food and shelter on mountain locations.

Athletes cut through the Covid and geopolitical gloom as Games services and operations became more familiar, finding rhythm and routine.

Electrifying performances generated an overlay of hope and meaning, sought increasing by audiences from sport in uncertain times.

Peggy Noonan, acclaimed speechwriter for late US President Ronald Reagan, once observed that “the bravest things we do in our lives are really known only to ourselves.” 

If so, the Olympic Games brought uncommon bravery to global attention.

Few showed more valour than the young Georgian luger Saba Kumaritashvili, who made good on a profound personal promise to compete at the Olympic Games on behalf of his cousin, Nodar, fatally injured at the Vancouver Games. 

Saba transformed a family tragedy into a towering triumph of the human spirit, realising the Olympic dreams of his beloved cousin 12 years after Nodar’s death. 

“Thinking about him (Nodar) is painful but gives me strength as well,” he said.

The key themes have also come into sharper focus from Beijing as the ‘Gender Games’ – the high impact story lines of many women athletes compelling, relevant and enduring a year on.

They include: 

·     The teenage ski sensation, Eileen Gu, who bridged the growing super power divide between her birth nation of America and Chinese ancestry, with grace, style and almost faultless performances. 

·     The ‘Little Girl Lost,’ teenage Russian skating prodigy Kamila Valieva, who has probably spent more time on the ice rink than in school exams; caught up in an international doping scandal at the Winter Olympics, only 4 editions of which she has been alive for.

·     Fallen but unconquered US world skiing champion Mikaela Shiffrin, who inspired in defeat. Despite failing to win any of the many medals expected of her in Beijing, Shiffrin recently tied for the most medals in Alpine skiing world championship history.

·     The mysteriously lost, found and gone again former Chinese Olympic tennis star Peng Shuai. 

Beijing was a Games of improbable Olympic outcomes.

US snowboarder Lindsey Jacobellis was an Olympic time traveller, who turned a haunting error from her past into a gold medal 16 years later in Beijing.

This was an uncommon story of self-belief and perseverance steeped in Olympic mythology. 

After a last minute swerve robbed her of first place at the Turino Winter Games in 2006, Jacobellis secured Olympic gold in Beijing at her fifth Games attempt.

Beijing also reinforced truisms for major sporting events in turbulent times, especially the interdependence between high performing venues and high performing athletes. 

Giant decommissioned cooling towers formed the surprise post-industrial backdrop to Beijing’s Big Air venue – the most compelling sports setting of 2022.

HIGH FLYERS

Athletes became new aviation pioneers, blessing themselves before launching so high off the slopes on snowboards that a pilot’s license, oxygen mask, and parachute might otherwise have been required for a safe landing.

Fellow boarders waited below to welcome their high flying colleagues back to earth, embracing fellow frequent flyers on landing, composing a new, more youthful image of Olympic sport following surfers and skateboarders from the Tokyo Games just months earlier.

The industrial towers produced high impact global viewing experiences prized by high paying broadcasters, while showcasing stunning sporting images for international federations and world governing bodies.    

RISE OF SMALLER NATIONS

Winter athletes from unlikely destinations in tropical Oceania succeeded against the odds and the weather.

These included two snowboarders from New Zealand who provided a new movie script for local Hollywood Lord of the Rings director Peter Jackson.

The athletes soared high above middle earth to capture their nation’s first two winter gold medals in 70 years, creating a new fellowship of the rings.

CONCLUSION

The Olympic Games in Beijing, like Tokyo, must be seen largely through the prism of the pandemic.

If the primary threat to the Games and the athletes was the pandemic, Beijing was successful with infection levels amongst the lowest in the world

The sports venues, services and operations were organised at a high level amid the most dangerous conditions encountered in modern sport 

While the Pyeongchang Winter Olympic Games generated unlikely gestures and overtures of peace on the heavily nuclearised and politically divided Korean peninsula four years earlier, the Beijing Games was less optimistic in tone and outlook

Beijing 2022 delivered high impact sporting performances and drama in one of the most politically charged environments of modern sport.  

The Beijing Games pointed to new geopolitical challenges and uncertainties for international sport in a rapidly changing and divided world.

This was highlighted by IOC President Thomas Bach in his Beijing ceremony addresses, observing that “division, conflict, and mistrust are on the rise.” 

The Beijing boycotts demonstrated that strong international support is needed for cities and governments to host Games that engage and relate to the world.

While the diplomatic stand offs were condemned and dismissed by China, the boycotts widened the spotlight on China’s human rights record and further challenged its international image.

Along with Beijing, Almaty, the biggest city in the former Soviet Republic of Kazakhstan – where government shoot-to-kill orders were issued in recent times to crush protests – was the only city that completed the bidding process for the 2022 Winter Games.  

The Games did not produce the legacy of international respect and recognition sought by the Communist Party of China for Beijing, as the first city to host the winter and summer Olympiads.

China created a new modern day ice-age for winter sports in Asia built on mountains of artificial snow

While the Beijing Games was the catalyst for a new international winter sports destination, the subsequent war launched on Ukraine by China’s ally has had a more dramatic impact on world sport.

Devastating daily images of the suffering inflicted by Russia continue to test of sport’s capacity to respond authentically to the crisis.

While Olympic stakeholders seek a credible pathway to bring Russia back into the fold for the Paris Games, opposition to Russia’s Olympic return is hardening due to the unrelenting brutality of the invasion.

Russia’s war also continues to disrupt nations and cities involved in the initial application process to host the 2022 Winter Games.

These include especially, Poland, which became a haven for Ukrainian refugees, and Sweden.

And in one of the harshest of modern historic ironies, Lviv, Ukraine – now fighting for its survival – also applied to host the world’s foremost sporting event dedicated to peace, the Olympic Games in 2022, delivered by Beijing, Russia’s ’no limits’ partner!

Michael Pirrie is an international communications advisor and consultant who has worked in senior positions on major global sporting events and campaigns. These include the London 2012 Olympic Games, Brisbane 2032 Olympic Games bid, and the Invictus Games. 

Ear to the Ground announce new US Webinar

Future of Fandom: How can brands tap into the global explosion in fandom of the major US sports leagues?

The power of listening: LIVE From the All Star Weekend in Salt Lake City

US Sport popularity is on a global upward trajectory – How can brands take advantage of this and which brands are already smashing it. Ear to the Ground are a global agency with global opinions from their Fan Intel network – we can help your brand understand how you can tap into this growing market.

Global Fan Intelligence® Network Members will join our own experts to share their opinions on the topic and the opportunity for brands.

Join us from 4PM GMT (11AM EST, 8AM PST) on Friday 17th February.

https://us02web.zoom.us/webinar/register/WN_hJ0B5H5ASyeYNXwwkcIN6A

How can you make your event more sustainable?

The demand for a more sustainable approach to organising events is increasing. As an event planner, you have the ability to make significant changes in your field, because let’s face it, change is in your own hands. What options do you have for a more environmentally friendly event?

Read on to discover several ways in which you can introduce sustainable initiatives into your upcoming event:

Reuse

  • Encourage guests to bring reusable water bottles that they can refill throughout the day. This reduces the amount of waste produced by attendees.
  • Badge holders, lanyards, notebooks and pens are just a few items that can be saved and reused at future events rather than thrown out.
  • Use recyclable materials when creating branded items for the event or create branded items that are not event specific and can be used at multiple events.

Zero Waste

One of the major problems is the event location itself. Choose an event location that is committed to clean energy and take measures to reduce waste.

Reduce the amount of waste generated by your event and its attendees by providing composting for uneaten food and sourcing recyclable materials to use.

Zero waste requires a closed loop. Products should be reused and recycled rather than discarded, burned, or dumped. Waste is inefficient and does not fit into this cycle of sustainability.

Travel & Food

Encourage guests to use public transportation or hire shuttle buses from the accommodation/airport. You could even take it a step further and provide a sporty alternative, such as cycling. This is especially appropriate for hospitality programmes during a city trip.

Say goodbye to meat and instead provide more sustainable catering, such as vegetarian or vegan. Meat consumption is one of the leading causes of CO2 emissions, so limiting suppliers who only offer meat-based meals will reduce the event’s carbon footprint.

Buy and use materials, food and drink from local suppliers and businesses in the community of the event’s location.

Go Digital

An easy way to make a big impact is to go paperless. Instead of sending out physical invitations, send an email invite, or create an event page on social media. Not only does this reduce your footprint, but an event page also allows you to easily communicate with guests. A last-minute change? No problem, it is easily adjusted online!

Following the online invitation, you could create an online registration platform that is paperless and cost-effective. Send registration notifications via email, followed by an e-ticket that can be scanned from smartphones.

Printed invitations, maps, and tickets are a thing of the past. Mobile apps and websites are a much more environmentally friendly way to interact with guests before, during, and after an event.

Article written by ATPI, click here to find out more about the work they do

Meet the Member: “We are trying to short-circuit our growth path as a sport. That is a real challenge”

Last weekend Formula E held their first race in Hyderabad, one of a number of new cities they are racing in this year. Before he flew out to watch the race, Strategy Director Harry Browne sat down with our Content Manager Alex Brinton to talk about the new season of Formula E and where the sport will be in five years time.

To start, let’s take it back five years. What was it about Formula E that so attracted you and made you join the business from Altman Solon?

I was in strategy consulting at Altman Solon for about five years. It was an environment where I learned a hell of a lot, it was quite high pressure and had a lot of tough deadlines. I found that jumping from one business to another was not giving me a lot of in-depth experience. That is why I wanted to go in-house, to get stuck in and take some real ownership. 

The opportunity came up to work in Strategy at Formula E, and it was a really exciting one for me because the subject matter is so interesting and the opportunity and room for growth was massive.

Season 9 of Formula E has just started, how has it changed in your time there?

Over the time I have been here investment in the team has increased a lot, and with that expectations and standards have as well. We have really good people who are subject matter experts in their discipline.

That also means that the focus of my role has shifted a bit from leading on a lot of projects to now making sure that the company is all pulling in the same direction.

In terms of the business of Formula E, the popularity and audience has grown hugely, as has the revenue generation, especially from sponsorship. 

On track, we are now onto our third generation of cars. When I started the GEN1 cars would only last half the race and then the drivers would have to get out and swap. With each iteration the technology has moved on a great deal, and that has allowed us to do more with the racing product as well.

As we just touched on, Season 9 is just getting underway, what’s new this year?

The short answer is lots! It was the busiest off-season since I started.

We have a new GEN3 car, which is a massive step forward in terms of performance (capable of 200mph top speed) and is the most sustainable electric race car ever. We’ve got new venues: we’ve just raced in Hyderabad, India, next up is Cape Town, which will look fantastic. And then Sao Paulo, which is going to be great. Brazil is obviously a huge racing market, so we are really excited to go there. And we also go to Portland in the US for the first time later on in the season. We also have new teams, McLaren, Maserati and Cupra have all joined bringing huge motorsport pedigree.

Another element of the new car is that it is compatible with fast charging. So that is something that we are looking to implement during the season, and with that an update to the ruleset needed. 

Finally, we have a new website and app, and have also been through a whole new brand refresh. The update has a far more entertaining feel and positions us as more of a challenger brand, whereas before if you were being critical you could say that we were coming across as a bit clinical.

So yeah, a lot has changed!

What are the particular challenges that are facing Formula E at the moment?

Firstly, with all those changes we really need to work to maximise each of those opportunities. We really need to make sure we nail every point on the implementation and use data to help us do that. 

Secondly, what we are trying to do is to short-circuit our growth path as a sport, that is the real challenge. Most sports take decades to grow and mature; we are only in our ninth year and we are striving to become a tier one sport. The UFC and perhaps the IPL are the best examples in recent years, but not many people have been successful trying to do what we are doing. 

We have all seen the extra attention that Formula 1 has got as a result of Drive to Survive, is this something that Formula E is looking into?

Drive to Survive has been a massive success for Formula 1, you only have to look at how much the sport has grown in the US in that time. It has also recently spawned a few sports doing similar with Break Point for Tennis and Full Swing for Golf. For it to be a success obviously the content needs to be great to cut-through, but also you need the right platform partner, promotional strategy and the content needs to fit with the strategy of what you are trying to achieve as a rightsholder.

We have been experimenting with our series Unplugged, which is a behind-the-scenes look at the sport, telling the stories of some of the teams and some of the drivers. As a sport that is so young we are highly agile so we can change things depending on what hits and what doesn’t.

Obviously with an electric sport it is important to be as sustainable as possible and you announced that you were Net Zero Carbon since inception in 2020, how difficult was it to get there?

It has always been so ingrained in the company that we have to set the standard when it comes to being sustainable that it was a natural to become Net Zero Carbon. As a company we are acutely aware of where our emissions are coming from and what we need to do minimise them. Becoming Net Zero Carbon was actually more of an extension of what we were already doing than actually changing a lot of practices in order to achieve it. 

We also work with our partners to run local initiatives, including UNICEF and DHL. We want to make ourselves as sustainable as possible, but we also want to make a difference to the communities in which we race through smaller, local projects, for example making drinking water readily accessible in Mexico with the help of UNICEF.

There are so many ways in which you can engage fans digitally, how are Formula E evolving in that space?

Firstly, we have had a complete overhaul of our website and app. We took a step back, looked at all the user journeys and the experience fans would get and then re-designed them with that in mind. We also introduced some gamification elements to the website to keep people coming back again and again. 

Secondly, we want to create really fun and engaging content on third party platforms. TikTok has been a great success for us this year, we are up 600% on last year. It is a great example of a platform where you can be more playful with the brand and show a funny, offbeat side to the sport.

Also when it comes to the licensing side of the business we are definitely looking at more games and products to try and introduce Formula E to a new audience. 

Looking forward then, where do you see Formula E in five years time?

As I mentioned earlier our goal is to become a tier one sport. I think we can achieve that in five years but we will have to be really on it and nail our execution to get there. First and foremost we need to ensure our race product is top-tier, so that when they watch it once they want to come back again and again. If we rewind to two years ago, we completely overhauled the qualifying format. We went from a groups-based system to a head-to-head knockout system, and our qualifying audience increased 50% – it shows the power of making a positive change to the product, and it’s amazing the impact that that can have.

Fundamentally, we need to get the best teams and manufacturers with the best drivers racing in the best locations with the best coverage around that. That’s how we will become a tier one sport.

SEG3 to fuel Sports, Entertainment & Gaming businesses web3 ambitions

Web3 Media Group today announces the first global summit part of its portfolio, the SEG3 Summit.

With the continued blurring of sports, entertainment, gaming and wider culture, the opportunities and challenges web3 and immersive technologies offer are becoming universal across these industries.

Due to that fact, the successful Web3 Summit held in 2022 has been rebranded to SEG3, with the 2023 edition expanding its scope to now also meet the needs of the entertainment and gaming communities, as well as sports.

The summit returns to the Emirates Stadium, London on 28th & 29th June 2023, and will address key themes including:

  • How to futureproof your brand in a web3 world 
  • How to engage and grow a web3 native community through storytelling
  • The impact of the creator economy on content creation, distribution and monetisation
  • Building immersive experiences, and its impact on traditional activation 
  • Raising investment in a bear market, and how to structure the agreement to get the best deal
  • The building of the open metaverse, and the opportunities associated to a interoperable digital identity

Full agenda and industry-leading speakers to be announced in early March.

“We’re really excited to be building on the successes of our inaugural web3 summit in 2022, and feel strongly that by widening the scope of the event, we can play a small part in helping these industries to flourish in the coming years as they look to reimagine their brand, relationship with their audience and revenue models through web3 and immersive technologies” said Co-Founder & Managing Partner of Web3 Media Group, Joe Condon.

Click here to visit the SEG3 website

Sportel Bali announce event programme

An engaging series of Masterclasses and Presentations will take place at the inaugural SPORTEL Rendez-vous Bali international market and summit being held from 23 – 24 February 2023. 

Sessions will dive into trends shaping the future of the sports media and tech industry and provide thought-provoking discussions led by influential sports business executives. The international blend of culture and experience, includes speakers from Indonesia, Asia, Europe, North America and beyond.

Attendees will gain vital insights to complement their meetings during the two-day market and exhibits, to evaluate and help make informed decisions when evolving their business strategies which unlock potential new revenue streams.

Monaco meets Indonesia, with Louis Ducruet, nephew, and Official Representative of SPORTEL’s Honorary President H.S.H. Prince Albert II, joining Laurent Puons, SPORTEL CEO, and event host, Transvision’s President Director Peter F. Gontha, who will officially open the event together on the morning of 23 February.
 
A scene-setting panel “Asia the Big Picture’, in collaboration with SportBusiness’s Kevin McCullagh, will feature Asian sports media industry leaders, including EMTEK’s Sutanto Hartono, SPOTV’s Mitch Hong, AFC’s Andrew Rogers and IMG’s Tom Broom, who will share their expert insights on the state of the industry today, how it got here, and where it is heading in 2023 and beyond.
 
“The “Asia the Big Picture” panel will be an excellent opportunity for AFC to share and debate with industry colleagues the major trends and challenges shaping the future of sports business in APAC and beyond”, said Andrew Rogers, Director, Commercial, Asian Football Confederation (AFC).
 
Another star-studded panel shining the spotlight on “Asian Audiences Embracing International Football Properties” will highlight how European and global properties have established their brands within the region, by expanding digital footprints and working side by side with broadcasters to enhance fan experiences, while adapting to sometimes challenging live sports scheduling times.

The stellar line-up includes FIFA’s Paul Calder, Serie A’s Anna Guarnerio, Bundesliga International’s Peer Naubert and Pitch International’s Henri Kamerling, and will be hosted by SportBusiness’s Imran Yusuf.
 
“This season marks the 10th anniversary of Bundesliga International’s office in South East Asia, and a perfect time to reflect on the lessons we’ve learned, as well as the plans for the future, as the Bundesliga fanbase continues to grow rapidly in Indonesia and across Asia.” announced Peer Naubert, CMO Bundesliga International.
 
Changing gear, Dorna Sports, Alex Arroyo, will share how MotoGP is “Revving up the Motorsports Experience” with Fox  Sports Adam Howarth and Telkom Indonesia’s  Dedi Suherman discussing the massive popularity of motorsports across the region. Harmonic’s Alexandre Paugam will also present a case study along with partner WRC Promotor and Philipp Maenner, titled “Accelerating Motorsports Global Reach with Rally.TV.”

The explosion in women’s sports and the importance of regional focus and innovation, will highlight how “Culture and Diversity are Shifting the Direction of Sports Media in Asia” and will be addressed by executives including, Reddentes Sports & Redd+E’s Mark Chew, RCTI’s (MNC’s) Dini Putri and Sportfive Asia’s Karen Lay and moderated by Magnifi’s Meghna Krishna who will look at best practices and shifts within the region.
 
Asia is the world’s biggest esports market, with a notable explosion in mobile esports and the sector is brimming with opportunities for savvy media companies that truly understand the space.  “The Future of Esports in Asia “panel, will be brought to you by SportBusiness’s Callum McCarthy and includes some of the most game changing organisations in Asia such as ESL Faceit’s Roland Lam, Moonton’s Martinus Manurung and Reddentes Sports & Redd+E’s Ren Kai Yip.
 
“The Esports scene in Asia has seen a rocketed increase in popularity over the years, especially during the COVID period. Now that Asia has came out of the pandemic and many sporting events return, there will be added competition for eyeballs and an increasing spotlight on what opportunities Esports can offer to the market.” commented Ren Kai Yip, Managing Director & Co-founder, Redd+E Pte Ltd.

Turning to tech, WSC Sports Guy Port, will illustrate how they are “Delivering Video Fan Experiences with AI” and how it is increasingly playing a critical role from personalized content to virtual and augmented reality. The tech theme continues with a panel looking at the current state of “The Cloud AI, NDI & Sports” as well as a debate where things are headed. The panel will be led by GSIC’s Raj Sambwani who will be joined by Snipitz’s Denny Darmo, Magnifi’s Meghna Krishna, and Ideal Systems, Fintan McKiernan.
 
The “OTT Streaming & FAST Channels” panel will focus on the FAST TV channels trend and how the model benefits sports content owners and broadcasters. The expert line-up includes Vision +/ MNC’s Clarissa Tanoesoedibjo, Origins Digital’s François d’Azemar and OTTera’s Stephen Hodge and moderated by SoFAST’s Sandrine Durand.
 
“SPORTEL Rendez-vous Bali will be the perfect opportunity for us to share with the international sports community, the opportunities in the OTT and streaming space in Indonesia, as well as MNC’s Vision+ role in the development of the media ecosystem.” said Clarissa Tanoesoedibjo, Managing Director, PT. MNC OTT Network (Vision+)
 
“I’m honored to be part of a diverse panel that brings together voices from many different backgrounds, genders, and ethnicities. It’s incredibly empowering to see how our collective experiences offer insight, encouragement, and represent the wonderful diversity that our world has to offer.” Stephen L. Hodge, Chairman & CEO, OTTera

A new concept for the conference programme will see the introduction of a “Pitch Session” featuring selected innovative newcomers to SPORTEL who will present quick fire pitches in front of a jury and event attendees.

The House View – Why might Apple enter the race for Premier League rights?

Last month, it was widely reported that Apple TV are going to enter the bidding war for the next round of English Premier League TV rights that will be going out for tender towards the back end of this year. Is this for real or just a rumour? Let’s look at some of the facts.

The American tech giants have already made some moves into sport with a 10-year MLS deal that starts next year – was that just them whetting their appetite to grab a part of the action on this side of the pond and get into sport on a global rather than a regional basis?

If the plan is to get into sport in a major way then the Premier League is clearly one of those crown jewel rights packages so it would be strange that a global company such as Apple would leave this as a US sporting play and would therefore be taking a far bigger global approach to sport. And no sport is bigger globally than soccer/football. Of course the NFL is just one elephant in the room and even the IPL audiences are worth keeping an eye on but neither attract genuine global eyeballs. But I think all of the above misses the point of Apple’s strategy…

There is no doubt that Apple has deep enough pockets that they are more than able to compete in this space. 

One thing is for sure they won’t be lacking for options when it comes to which rights to go after. Live Premier League rights are split into seven packages. In the current cycle Sky own four of them broadcasting 128 matches. BT Sport own two of them, broadcasting 50 games a season. Amazon Prime picked up Package F and show 20 games every campaign. Then there’s delayed rights with Sky showing match replays in full later on in the day and obviously Match of the Day running on Saturday and Sunday nights every weekend of the season. Then there’s the clips. Sky currently own these rights and upload three-minute highlights of every Premier League match a matter of moments after the referee blows the final whistle.

Sky is in at least 12 million homes in the UK according to Advanced-Television.com and only 8 percent of households have Apple TV according to Finder. A figure that hasn’t moved since 2019. Although the Apple TV app is already available on Sky’s EPG (Electronic program Guide) there could also be interesting possibilities around Apple doing some form of deal with Sky that would mean Apple TV becomes embedded and visible on more devices  as well. It would be complicated but aggregation, or re-aggregation, is still the likely end goal as it’s impossible for consumers to continually be asked to sign up for yet more platforms

Away from Apple, Warner Bros. Discovery completed their acquisition of BT Sport back in September, they are another company with deep pockets that could be looking at acquiring more than their current 52 games. Additionally the recent news about DAZN and the NFL GamePass International is really exciting as DAZN make their move towards the title of the “Netflix of Sport”

For what it is worth, I don’t think Apple are likely to come in and try to take over from Sky as the Premier League’s main broadcaster, I would wager they have their eye on taking BT Sport’s share or even trying to carve out a niche package similar to Amazon Prime’s.

I don’t believe Apple would be able to make commercial sense through an increase in subscriptions or advertising to make the numbers work were they to take Sky’s position. Apple will use the MLS as an experiment to understand the experience and gather the data and they may well do the same with the Premier League rights. But I believe it is no more than a small stepping stone rather than an outright play into sport. I don’t think there are any plans for Apple to make a major move in sport but instead they have the ability to play the long game and learn from small stakes.

But one thing is for certain the clubs will be licking their lips at another major player entering the race for rights. Whether this is actually good for the sport is questionable given the richness of the Premier League versus all their rival leagues. Sport needs competition so this might even enhance support for some form of European Super League. It’s a complex old space.

By Sandy Case, CEO of iSportConnect

The Bottom Line: The iSportConnect Business Index – February 9

Welcome to this week’s edition of the iSportConnect Business Index, in a week the FTSE has hit a record high surpassing its previous peak in 2018.

That means it has been a positive week for the majority of the Index. We are getting rid of the winners and losers section and instead are going to focus on the stories that have caught our eye this week, in a section we are calling the movers and shakers. Index figures correct as of 8/2 am.

Movers and Shakers

DraftKings – up 16.945%

It’s amazing how a Super Bowl can generate huge betting interest and with LV11 on the horizon the numbers being gambled continue to astound and resulting in upgraded predictions for DraftKing’s upcoming quarterly results. It has been a hard Super Bowl to predict the Philadelphia Eagles are the better team and therefore command slight ‘favourite status’ but punters are reluctant to bet against the star power of Kansas City Quarterback Patrick Mahomes.

It’s promising to be a hugely positive commercial Superbowl on all fronts as advertising has replaced all the crypto brands revenues and figures being quoted remain very strong across all commercial channels.

Manchester United – down 6.341%

The timing of our Index means we miss out on the news that Qatari investors are potentially already in talks. This has seen a near 15% spike in the price. Given the Glazers want a reputed $6bn there is massive upside if they can achieve that. The market is saying they wont…..

Madison Square Garden Sports Group – down 0.418%

The New York based group have revealed they would be open to selling stake’s in both their Basketball team the New York Knicks or the Ice Hockey team the New York Rangers. “We have no plans to sell either team … but we would certainly not rule out the possibility of selling a minority stake in the Knicks or the Rangers,” said Madison Square Garden Sports president and COO David Hopkinson on Tuesday.

Disney – up 2.894%

Yesterday, CEO Bob Iger announced plans to cut the company’s workforce by 7,000 as part of a restructuring plan he believes will save the company $5.5 billion over the next few years. Their share price jumped 9% after the news was announced, unfortunately too late to be included in this week’s index.

Institutional investment in sport to grow in the next five years according to PwC Global Sports Survey

Institutional investment in sport to grow in the next 3-5 years with overall sports industry growth prospects more positive compared to last year – PwC Global Sports Survey

  • Continued levels of investment in sport forecast and valuations are expected to rise
  • Women’s sport revenues expected to grow significantly over the next few years
  • Big tech companies are predicted to become more active in the sports media rights market 
  • Nearly 40% of sports executives reported prioritising a balanced approach to E, S and G moving away from ad-hoc initiatives 

The PwC Global Sports Survey, now in its seventh edition, features responses from 507 senior sports executives from across 43 countries and analyses the market forces likely to transform the sports sector over the next three to five years and looks at how those perceptions have changed in the last 12 months.

Overall, the survey respondents reported optimism about the future of the sports sector following the debilitating impact of the COVID-19 pandemic, with the outlook for growth improving in the last year from 5 to 6.5%. The key revenue drivers of the improving growth are increased media rights, the resumption of ticketing and hospitality and growing betting related revenues. 

Clive Reeves, Global Sports Leader at PwC, said:

“Following a difficult few years due to the COVID-19 pandemic, the sports industry is on the path to recovery and it is great to see in our survey results that the spirit of optimism has returned. With fans now back in stadiums and strong consumer demand for sports content, growth expectations have increased compared to previous years”

Sports Investment

Following a number of significant investments in sports leagues and teams in the past year, the PwC Global Sports Survey reveals that more than three quarters (83%) of senior sports executives believe institutional investment (Private Equity and sovereign wealth funds) will continue to grow in the next three to five years.

More than two-thirds (68%) of respondents believe the focus for Private Equity and sovereign wealth investment will be on premium sports properties.  The view is that further value can be unlocked through seizing new streaming and digital opportunities, creating alignment across stakeholders and transforming ways of working.

Clive Reeves, said:

“More than ever sports organisations are looking for additional resources to remain competitive both on and off the pitch, while investors have been buoyed by the underlying resilience of consumer demand. Institutional investment has the potential to transform sports organisations and help capitalise on new market opportunities.”

“However, sports organisations face a dilemma as they balance the level of control they are willing to give up in return for investment. This is evident in the results of our survey which show that almost two thirds of respondents believed investors, sports organisations and fans may have misaligned objectives.”

Rising valuations

The value of sports clubs and franchises are expected to rise according to those surveyed amidst growing interest from investors and the increase in sports M&A activity across the globe. For the first time in the survey, PwC analysed the expected growth in sports club franchise valuations with respondents predicting a 6.6% growth rate over the next three to five years. Driving this demand is the scarcity of assets which combined with increasing demand from investors and a strong media rights market is driving valuations higher. In the last 12 months, teams in the NBA, NFL, Premier League and Serie A have all sold for record sums.

Clive Reeves, continued: 

“With strong expectations on the media rights market and the belief that further commercial potential is still to be unlocked, the number of parties interested in investing in teams or leagues is expected to rise, driving up valuations further. We have seen from recent transactions that the valuations of premium sports properties are increasing, which reinforces the views gathered in our survey.”

Women’s sport on the rise

The majority of sports executives view the women’s sport market as a critical part of future industry growth with over 70% believing revenues will grow by more than 15% in the next three to five years. This forecast is supported by the growing interest from media companies and sponsors who are increasingly seeking to realise the opportunities women’s sport offers, with a number of improved partnerships formed in the past year. However, institutional investment is yet to follow this trend, adopting a more cautious wait and see approach.

In order for women’s sport to accelerate its growth, 50% of respondents indicated that greater media coverage is the most impactful driver of growth. Increasing live coverage and achieving wider reach is essential to set the flywheel in motion as increased visibility will attract more commercial partners which in turn will stimulate revenue growth and enable greater investment in talent and sport development. 

Clive Reeves, said:

“Increasing the visibility of women’s sport on high-reach networks can set a powerful flywheel in motion. Extending reach and growing fandom are essential to attract commercial partners and investors who are willing to invest in women’s sport and provide the required financial resources to enable growth at all levels”

“It is essential that all stakeholders work together to accelerate the growth of women’s sport and build a strong, sustainable platform for long-term success”

Big tech companies becoming more active

In the last 12 months the sports industry has seen tech giants, such as Apple and Google, make significant moves in the sports media rights market. In our survey, 76% of sports executives stated that large tech companies are best positioned to win the battle for sports rights in the next 3-5 years. In addition, 75% of respondents also reported that rights owners will need to be more creative in their media rights distribution models to succeed in the future. 

Clive Reeves added:

“The recent rights acquisitions from the big tech companies are great for sport, having new media partners investing in sport and helping grow reach, engagement and fandom can only be good for the sector. It will be interesting to see how the fan experience evolves and new monetisation models emerge over the next few years.”