Barbarians at the Pitch: Private Equity and the move into the NFL

Ian Whittaker, Twice City AM Analyst of the Year writes about the recent decision of the NFL team owners voted to allow a select group of private equity firms to acquire up to 10% of teams as valuations rise in recent deals.

Private Equity – or PE as it is shortened to often – is often viewed with mixed feelings by many, a source of well-needed discipline and finance to some, a ruthless money generating machine with no regard for past traditions to others. One only has to look at what has happened in the European football leagues to see both contrasting signs of the coin, as well as mixed successes. However, last month none of this deterred the owners of the National Football League (NFL) in the US from voting to allow PE firms to invest in the franchises. 

I would argue this is probably one of the most fundamentally important announcements when it comes to sports rights globally. 

The agreement may not look much at first sight, given the stringent conditions. The NFL will allow PE firms to buy up to 10% stakes and no more. Moreover, such stakes will be in common equity and not in so-called preferred shares, which often give such holders special rights or privileges. There are only a select – and small – number of PE firms (and one consortium made up of several entities including retired NFL player Curtis Martin) that have been approved to invest and each approved investor has committed to investing at least $2bn in the league, which can be spread across teams. Investors will have to hold their stakes for at least six years and will be capped at investing in a maximum of six teams. 

However, it is more the principle that counts rather than the actual terms. There may be a question of why PE is so interested in expanding its exposure to sports rights given the issues that have arisen in Europe and the financial problems that several of Europe’s football leagues are facing. The simple reason for that is, unlike the European football clubs, the financial stability of NFL clubs has never been stronger.  In Europe, the football clubs are reliant on traditional Pay-TV operators who are now facing major challenges to their business models and who can no longer afford to pay ever increasing amounts for the rights. Crucially, Tech giants have not stepped into the fray because the economics of buying expensive football rights just do not work for these players. 

That is not an issue in the United States. The appeal of the NFL for advertisers is that the NFL dominates live TV viewing in the United States – of the top 100 most watched live TV programmes in the US in 2023, 93 were NFL games. And, with the Tech giants such as Amazon and YouTube looking to seize TV advertising money, the ownership of NFL games has never been more valuable. To put it simply, the economics of paying out considerable amounts of money for live US sports rights work in the United States because of the size of the advertising market. Magna estimates that national US linear TV advertising will generate $38bn in revenues in 2024 despite its structural problems, with another $18bn sitting in local TV.  All this means that NFL franchises are likely to remain very lucrative properties for a long time to come. 

Where does this end? Now the principle has been agreed i.e. that PE firms be allowed to invest in the NFL rights, the PE firms are likely to agitate – over time – for changes to the rules, especially around the stakes. My guess is over time that the caps will be raised and that PE firms will become more active players in the market. This may take a considerable number of years to come through and I do not think it will lead to PE firms owning franchises any time soon (there are also regulatory issues to consider). However, the trend of travel looks clear. 

As usual, this is not investment advice.

ISU inks strategic partnership with Chinese National Sports Group

The International Skating Union (ISU) has announced a strategic partnership with the Chinese National Sports Group (CNSG), as it continues to innovate and grow Short Track Speed Skating globally.

This partnership sets the stage for a new era of growth in the world of Short Track, a sport that enjoys tremendous popularity in China, especially after the successful delivery of the Beijing 2022 Olympic Winter Games.

By joining forces with CNSG’s extensive reach and expertise, the ISU is confident that this collaboration will further enhance visibility and passion for the sport, while deepening connections with the fans’ community in China and worldwide.

The ISU President, Jae Youl Kim, expressed great enthusiasm about this partnership, stating: “We are thrilled to embark on this new partnership with CNSG. Together, the ISU and CNSG share a strong commitment to unlocking the full potential of Short Track around the world, offering greater opportunities for our skaters, and creating more value for our commercial partners.”

The ISU Director General Colin Smith underscores the promising changes ahead for Short Track as from season 2024/2025: “The debut of CNSG’s partnership across multiple ISU Championships will coincide with the launch of the Short Track World Tour, a new dynamic, entertaining and highly engaging series of global events across North America, Asia and Europe. The collaboration with CNSG aligns with ISU’s goals to re-imagine the spectators’ experience, increase fan engagement as well as bring a fresh and innovative dimension to the sport.”

The Chairman of CNSG, Mr. Gu Haoning, further shares Mr. Smith’s excitement: “CNSG, being the pioneer of Chinese sports industry, is excited about the partnership with the ISU. We are committed to continue promoting skating after the Beijing 2022 Winter Olympic Games and unlock further the potential of Short Track Speed Skating in China and beyond.”

iSportConnect Sports Tech Partnership Index powered by SportsTech Match – August 2024

Who’s hot in sports tech? Who is doing deals? Who is creating new, innovative partnerships? That’s what the Index attempts to dig into on a monthly basis. Whether established players or the up-and-coming stars, we go a little deeper for you…

SportsTech Match recorded 56 new or renewed deals and partnerships featuring tech companies in sport during the month of August. Once again this month’s index is topped by fan engagement platform, Fanbase, who announced a series of new deals with lower league clubs in basketball and football. Lower league sports leagues and clubs continue to prove to be a focus for many of the companies on our index as tech becomes more accessible to lower budgets. 

Most notable amongst the companies serving lower tiers of sport is AI automated video highlights company Magnifi (second in this month’s index) and ‘sports intelligence and data management’ platform Iterpro (fifth in this month’s index). 

Also in our top five this week are Future Ticketing who announced three technology partnerships and IC360 who continue to grow in the integrity field with new business wins and partnership extensions in the US market.

Want to get access to the full and ‘near-live’ Tech Feed that drives the index?

The data powering the SportsTech Partnership Index derives from SportsTech Match’s automated, daily Tech Feed. It’s the first and only feed dedicated to sports tech partnerships from around the world designed to help tech companies and rights owners stay on top of the deals and partnerships being struck across the ecosystem. 

Contact info@sportstechmatch if you would like to get early access to the feed and, for tech companies, to make sure that your announcements are being included in our monthly Index.

Leeds United extends partnership with Hisense for three years

Leeds United have extended our partnership with Hisense, one of the world’s leading consumer electronics and home appliance brands, for a further three years.

The extended partnership will see Hisense, who have their UK headquarters in Leeds, continue as an Official Partner of the club, having first linked up with the Whites during the 2020/21 season.

Hisense branding will remain on the iconic Jack Charlton East Stand during the three-year deal, after they handed over the branding rights in honour of the late Leeds United legend in 2020.

Working closely alongside the team at Hisense, Leeds United will lead on various innovative brand activations to help increase brand awareness and develop exclusive offers for supporters across a wide range of Hisense products.

Through the partnership, a LUTV app will also be launched onto the Hisense VIDAA Smart TV platform, providing fans with easier access to Leeds United related content. There will also be further award-winning Hisense product integrations at both Elland Road and Thorp Arch Training Ground throughout the tenure of the partnership.

Arun Bhatoye, Head of Marketing for Hisense UK, said: “Leeds United is a very special football team and we’re incredibly proud to extend our partnership with a club that is at the heart of a vibrant and passionate community.

“This ongoing collaboration highlights our dedication to sports partnerships, especially following the success of UEFA EURO 2024, where Hisense was an official partner. It also presents a fantastic opportunity to connect with fans in fresh and innovative ways – enhancing their viewing experience both in the stadium and at home.

“The club embodies passion, resilience, commitment to excellence and attention to detail – all things that resonate directly with Hisense across our range of categories – from refrigeration through to 100” premium Mini LED TVs.”

Morrie Eisenberg, Chief Operating Officer at Leeds United, added: “We are delighted to see Hisense extend their partnership with the club for another three years. Alongside their high-profile branding on the Jack Charlton East Stand, the club are excited to work closely with Hisense on more partner activations and other brand awareness campaigns to help support their growth.

“Hisense is a world-renowned brand in the electronics and home appliance sphere, and we are thrilled to help maintain their strong connection to football. We’re looking forward to continuing our journey alongside them.”

LaLiga inks multi-year deal with SportyBet

SportyBet and LALIGA have announced a landmark multi-year partnership by which SportyBet becomes the new “Official Betting Partner” of LALIGA across Africa. Effective this season, this groundbreaking agreement firmly establishes SportyBet as the leading sports betting platform in the region, marking a new chapter in its mission to deliver world-class football content to fans across the continent.

The partnership will kick off with an unforgettable launch event in Africa featuring one of LALIGA’s most iconic ambassadors—a football legend recognized worldwide. This spectacular event will set the stage for a collaboration that promises to revolutionize the betting landscape for millions of fans in the continent.

Among the most prominent LALIGA ambassadors are legends like Malian star Frédéric Kanouté, David Villa, Luis Figo, Samuel Eto’o, Carles Puyol, and Iker Casillas, among others.

SportyBet will take LALIGA betting experiences to new heights, introducing cutting-edge features that are unique in the sports betting world. Fans can look forward to innovative, first-of-their-kind betting options that will redefine their interaction with the game, offering unprecedented engagement and excitement.

As part of this partnership, SportyBet will gain prominent exposure during LALIGA match broadcasts, with advertising billboards and cam carpets displaying the SportyBet brand around the stadiums. This presence will be especially noticeable during matches where Real Madrid, Barcelona, and Atlético Madrid play as the visiting team, marking a major leap forward for the SportyBet brand in the world of football.

Additionally, SportyBet will provide exclusive access to LALIGA content, offering fans richer, more immersive ways to experience the league through its platform and social media channels. With enhanced, dynamic features, users will feel closer to the action than ever before.

Moreover, SportyBet’s users will have the opportunity to participate in extraordinary, once-in-a-lifetime experiences. These unique opportunities may include VIP stadium tours, watching player warm-ups from the sidelines, taking photos with football idols, or even stepping onto the pitch to take a penalty after a match.

The partnership will also see SportyBet and LALIGA collaborate on a range of promotional activities across multiple African territories, further cementing SportyBet’s influence in the region.

SportyBet has been the most visited betting platform in the world in recent months, a testament to its cutting-edge technology, unparalleled market odds, and the security and speed of its payments. This partnership with LALIGA not only reinforces SportyBet’s global reach but also highlights its commitment to offering fans the ultimate sports betting experience.

Elías Gallego, VP of Media, Marketing, and Business Development at SportyBet: “This partnership represents a powerful alignment between SportyBet’s leadership in the African market and LALIGA’s immense potential to grow its footprint across the continent. By leveraging our deep understanding of the African audience, we’re confident that together we can elevate the fan experience, fuel the passion for football, and drive unprecedented growth for LALIGA and SportyBet in this vibrant region.”

Jorge de la Vega, Executive General Manager of LALIGA said “Partnering with SportyBet is an exciting milestone for LALIGA as we continue to expand our global footprint, particularly in Africa. This collaboration not only brings LALIGA closer to millions of passionate football fans across the continent but also underscores our commitment to delivering world-class football experiences to diverse audiences. Together with SportyBet, we aim to create new opportunities for engagement, inspire the next generation of football enthusiasts, and celebrate the shared love of the beautiful game.”

Ferrari onboards UniCredit as sponsor

Ferrari N.V. has announced that, effective January 1, 2025, UniCredit S.p.A. will partner with Ferrari S.p.A., its wholly-owned subsidiary, to be at its side in its Formula 1 racing activities under a multi-year agreement.

UniCredit has replaced Santander and has previously sponsored tennis tournaments and the UEFA Champions League and will now enter the world of F1.

iSportConnect welcomes Ably as latest client

iSportConnect is delighted to announce Ably as the latest client of its Advisory division.

Ably is the definitive realtime experience platform, reaching over 1.5BN devices every month. Through their infrastructure, platform and products, Ably enables thousands of companies to deliver live streams, chat, collaboration, and notifications using simple APIs. 

Ably’s reliability, security, and scalability makes them the platform of choice for some of the world’s biggest brands, including Stadion, Genius Sports, NASCAR, Sportsbet, Tennis Australia, FansUnite and 17Live.

Joe Rowland, Head of Partnerships, iSportConnect: “We are delighted to welcome Ably to the iSportConnect network. It’s clear through the work they’ve done with customers over the last few years that they have a compelling proposition for sports organisations seeking to engage fans, and we are excited to support them as they continue to grow.”

Matthew O’Riordan, CEO and Co-Founder: “We’re thrilled to be partnering with iSportConnect. We have been working with clients in the fan engagement industry for a number of years, and we are confident that the insights and network that iSportConnect offers will unlock new opportunities in this space.”

iSportConnect Advisory is a full-365 service offering strategic guidance, market positioning and relationship building in sport. iSportConnect is helping many organisations, such as InCrowd, ATPI, Magnifi, Tixr, EXL, mycrocast and many more, drive new business in sport.

ATX Open signs Tixr as ticketing partner

The ATX Open has partnered with Tixr for ticketing services for the WTA 250 tournament that takes place in Austin Feb. 22 to March 2, 2025, at Westwood Country Club.

The third edition of the ATX Open will include a new general admission ticket product, including, for the first time, junior GA tickets starting at $5. The tournament will use Tixr’s ticketing and eCommerce technology to offer interactive reserved seating and a highly visual, mobile-friendly purchase experience. The ATX Open is operated by DropShot LLC, which has run ITF-level tournaments in the region since 2019.

The new deal is the latest for Tixr, which continues to gain sports ticketing ground outside of the biggest North American sports leagues. The 11-year-old company has inked deals with World Wide Technology Raceway, Thrill One’s Nitrocross, and a handful of pro golf events in 2024.

Superhuman athletes have arrived in the French capital for the Paris 2024 Paralympic Games, a revolutionary sporting event about life, death, survival & ‘Murder Ball.’

As the Paralympics get under way in Paris, Michael Pirrie explains why the world’s third biggest sporting event is also a global movement that transcends sport

For those who thought they had witnessed – or missed – the most exciting, thrilling and joyful experiences that sport could offer at the recent Olympic Games, the message on billboards around Paris was to keep watching as “the Game is not over.”

It’s a brave, audacious thing to follow in the footsteps of Olympic athletes and the world’s biggest and most watched sporting event, especially one so recent and so successful as the Paris Olympic Games.

But that’s just what’s happening in the French capital. The Paralympic Games is underway. Just two weeks after the Olympics.

Paralympians are brave and audacious.

They came in their thousands, from more than 160 nations, for the opening ceremony on the Champs-Elysees, one of the world’s most beautiful avenues, which connects, appropriately, to the Arc de Triomphe, as Paris celebrated the triumphant arrival of a new intake of sporting champions in style

This time, on a perfect photoshopped Paris evening, the teams floated down the iconic avenue on adrenaline, hope and national expectations, avoiding the rain that drenched the boats and athletes that floated down the Siene in the Olympic opener.

The Paralympic Games, which now follows the Olympic Games in each new host city, did not exist the last time the Olympic Games were held in Paris 100 years ago.

The Paralympic event, which has evolved into a global sporting and social movement, found a kindred culture and spirit of support for the Games in Paris as thousands turned out for the opening in the streets of the French capital, synonymous with the fight for human and civil rights and liberties.

“Welcome to the country of love and revolution,” said Tony Estanguet, president of the Paris 2024 organising committee.

“This is the start of the most beautiful of revolutions, the Paralympic revolution,” he said to crowds of spectators cheering on the visiting teams as French President Macron formally opened the Games.

The Paralympic athletes are now making their way into some of the most beautiful venues in the world, recently vacated by Olympians, into Stade de France for Para athletics and other iconic settings including the Eiffel Tower stadium, converted into a field for blind football from the Olympic beach volleyball court.

A GAMES REVOLUTION IN SPORT & SOCIETY

But this is not a follow up or add on to the Olympic Games.

In a fractured world that is politically, socially, and economically divided and attention exhausted, the Paralympians are stepping out of the shadows of their Olympic counterparts with jaw dropping, uplifting, and soul stirring displays of sport.

The Paralympic Games is about much more than sport, reflecting the beauty, suffering and survival that sport can embody.

The Paralympians are making their own statements in Paris about the world we live in and what is possible in life and in sport.

While some Paralympians might die younger and earlier in their careers, the athletes have blazed comet-like trails across the sporting universe.

Paralympic athletes have defied society’s conventions and expectations around disability with performances that often transcend Olympic outcomes, surpassing customary thinking about what is possible in the aftermath of some of the most crippling injuries and conditions that can befall the human body.

Advances in medicine, artificial body parts and adaptable sporting infrastructure and equipment, combined with resilience and creativity of traumatic injury and disability survivors have produced a new global sporting and social inclusivity movement spanning the full spectrum of human experience and emotion.

Paralympic performances, like the athletes themselves, may exceed what many elite, able bodied athletes might struggle to achieve if confronted with similar adversity.

There are no sports seemingly out of bounds nor beyond the reach or imagination of Paralympic athletes, despite often catastrophic injury or circumstances.

These include canoeing, archery, athletics, and road cycling, to equestrian, rowing, powerlifting, swimming, and many others including wheelchair rugby, involving such fierce rivalry, collisions and crashes it was initially known as murderball.

The 100 metres sprint will be the fastest tango in Paris, with blade runners likely to fly down the fast Stade de France track in record time, below the current amazing 10.53 seconds benchmark for a single or double leg amputee athlete.

HAVEN SENT

The Paralympians are extraordinary athletes who have overcome almost seemingly insurmountable odds – from the cruel genetic lottery in life to the randomness of time, places and people involved in life altering accidents and incidents.

Let me tell you one of the most remarkable, one of the most heart breaking, and one of the most inspiring stories and athletes you may ever come to know about: her name is Haven Shepherd and she’s a swimmer on the American Paralympic team in Paris

Haven was born in Vietnam and adopted as a double amputee by an American family when she was 20-months old after losing her lower legs when a bomb was detonated by her birth parents trying to commit a family murder/suicide.

Haven’s biological parents died in the explosion but she survived with horrific leg injuries. Her grand-parents were so poor they asked families of other patients at the hospital to help pay the medical bills.

Haven, who developed an affinity with water and swimming after her new parents put her in a pool as a young child, will compete in swimming at her second Paralympic Games.

The young woman, who is not meant to be alive, is also a successful motivational speaker, model, brand ambassador and a dedicated advocate for people with disabilities.

“Definitely going through an amputation or just growing up without limbs in general, it makes you grow up really fast,” Haven said in a recent interview.

“You need to choose what you want the world to be to you. Is it going to be somewhere where its not safe and you never leave your house and you don’t want people to look at you? Or do you want the world to know that hey, we exist.”

“I’ve got to live this amazing life,” said the athlete who was supposed to be dead.

“I’m here at the Paralympics. I got to have an amazing childhood. The very first time I ever smiled when I first got adopted was when my parents put me in the swimming pool. I love how it comes the full circle”

Like Olympic athletes, the Paralympic athletes are among the best in the world at what they do.

Haven’s journey from adoption to international athlete revived memories of the swimmer who won Canada’s first gold medal at the Tokyo Olympics, defeating a swimmer from China, the birth country that had abandoned her as a baby under its former controversial one child policy and later adopted by a Canadian couple.

The stories and the achievements of athletes in Paris like Haven are truly extraordinary.

They include a freestyle swimmer and former cyclist who almost died eight times while in intensive care after a near fatal accident while triathlon training; a table tennis player who lost his right arm after being mauled as a child by a bear at a zoo in China when he tried to pat the animal though a gap in the enclosure; and an athlete, who, due to a hormone abnormality, will compete in Iran’s sitting volleyball team as the world’s second tallest living man at 246 centimetres.

Like the Olympics, the Paralympic Games reflects much about the human condition as well as the condition of the planet, with a growing number of athletes competing after sustaining horrific injuries in a growing number of combat zones.

The involvement of war damaged competitors reflects the historical origins of Paralympic sport in England as therapy for injured soldiers returning from the second world war.

SPORT’S UNCONQUERED SPIRIT

The Paralympic Games also highlights the important role sport can play in the recovery of war disabled veterans while bringing the international community together in a spirit of peace.

These are the twin themes of Prince Harry’s widely acclaimed Invictus Games, which involves participants who will also feature at the Paralympic Games.

The Invictus and Paralympic Games have helped to redefine the role and relevance of sport in positive and life affirming ways in this prolonged era of conflict, terrorism, and institutional failure.

Despite suffering horrific war-related injuries and setbacks such as lost limbs, brain damage, depression and post traumatic stress, Invictus and Paralympic participants have found in sport the motivation to persevere, overcome, recover, to conquer and to carry on.

“I don’t think anything could be more inspiring than seeing a guy who lay bleeding to death in a ditch in Afghanistan now running 100 metres in Paralympic time,” said Royal Marine Andy Grant, an original Team GB Invictus Games participant.

SPORT’S NEW AGE OF ENLIGHTENMENT

CONCLUSION

The Paralympic Games, like the athletes, have defied and reshaped commercial and social expectations surrounding sport because they embody the essence of sport and the human spirit at the heart of sport, which connects audiences and communities around the world to all great sporting events and endeavours.

The Paralympians epitomise the power of the human spirit to strive to overcome and to survive even the deepest adversity and afflictions like actors Michael J Fox and Christoper Reeve, singer Andrea Bocelli, boxer Muhammad Ali, and many others.

While addressing the Opening Ceremony of the London 2012 Paralympic Games, the acclaimed late British physicist, Stephen Hawking, said competition was “all about transforming our perception of the world.”

In calling for a new age of enlightenment, Hawking implored audiences to “look up at the stars and not down at your feet.”

“We are all different, there is no such thing as a standard or run of the mill human being, but we share the same human spirit,” said Hawking, a brilliant scientist who struggled with a crippling brain disease.

That spirit will be luminated brightly in Paris by the Paralympians as a beacon of hope to a world in crisis during the Games.

Michael Pirrie is an international communications strategy advisor who has worked in senior roles on several major international events, including the London 2012 Olympic and Paralmypic Games and Invictus Games.

Ascot Racecourse signs InCrowd for digital transformation project

Ascot Racecourse have selected InCrowd to run a new, long-term digital transformation project.

Ascot Racecourse are working with InCrowd to develop a new premium web destination for racing fans that will ultimately strengthen the world renowned Ascot brand, grow their global database and present new commercial opportunities for both Ascot and brand partners.

Central to the project are a new Content Management System, Single Sign On (SSO) solution and Fan Data Platform (FDP) powered by sports marketing technology provider Cortex. Seamlessly integrated with the new website, these tools will enable the Ascot team to capture and collate new zero, first and third party fan data paired with digital usage tracking, giving them the power to create seamless and highly personalised digital content experiences for every fan, proven to maximise engagement and increase conversion rates.

As part of the website build, Ascot and InCrowd will be streamlining key commercial journeys across ticketing, premium hospitality and membership, alongside the introduction of customisable and fully brandable digital inventory and fan activations.

Unlocking exciting new commercial opportunities for Ascot and their partners, these new personalisation tools allow brands to become an organic part of the story, creating deeper connections and developing stronger brand advocacy with racing fans.

In addition, this scalable and centralised digital ecosystem will help Ascot increase operational efficiency across the business, from content management to customer support, with enhanced Insights Dashboards supporting key decision making across multiple departments with dynamic and customisable reporting, tailored to key stakeholders and objectives.

“We are really excited to embark on this digital transformation project with InCrowd.” Says Head of Sales, Rob Paddon. “Our strategies for collecting new fan data will enable us to better understand our audience and improve customer journeys with personalisation tactics driven by insights that we didn’t have access to before.”

“Elevating our new website with InCrowd’s recommended content and digital inventory tools will revolutionise how we communicate and connect with racing fans around the world, as well as drive significant value for both Ascot and our brand partners”.