PwC’s Sports Survey 2017: Sports – the most disrupted of all industries

Sports industry leaders expect the sector’s growth rates to slow down from 8 to 6.4% per year. While football appears to be too big to fail and eSports is seen as a key growth area, respondents view the Olympics as having a less certain future.

More than two-thirds of respondents believe virtual reality is here to stay and will enhance the sports viewing experience. These are some of the key results of the 2017 edition of PwC’s Sports Survey.

Zurich, 27 September 2017 – The 2017 edition of PwC’s Sports Survey asked a wide variety of sports industry stakeholders about the challenges and disruptive forces that are prevalent today. The report focussed on a number of topical industry matters, such as the future of the sports right market, wearable and sensor technology, and virtual and augmented reality.

Hot growth rates cooling off?

Survey respondents across the board still expect the sports industry to continue to grow. However, they foresee this growth to slow down by over 20% to an average of 6.4% per year over the next three to five years.

David Dellea, Director of PwC Switzerland’s Sports Business Advisory Team, explains “the results of the survey confirm that the sports industry is reaching a decisive inflection point, where sustained growth will be the privilege of a few premium properties. Media is being consumed differently especially among the younger generation, and sport finds itself in competition with an increasing number of alternative entertainment formats”.

eSports growing fast, Olympics facing challenges

While most of those answering the survey expect football to continue dominating the global sports market, eSports ranked as the second highest format in terms of forecasted growth potential. The Olympic Games and winter sports, on the other hand, are showing signs of slipping down the appeal rankings of global sports properties.

This is also evidenced by their apparent decline in TV ratings, especially among the younger population. More generally, 57% of respondents consider the shift in consumer behaviour among younger generations as the top threat faced by the industry.

How real is virtual reality in sports?

68% of respondents believe virtual reality (VR) is here to stay and will enhance the sports viewing experience. They see it more as a question of ‘when’ rather than ‘if’ VR will have an impact on traditional TV broadcasting. VR and augmented reality (AR) have the potential to revolutionise the fan experience when it comes to sports events, but also the way sports content will be broadcast. However, the survey also shows that further technological advances are needed if VR and AR are to reach their full potential in sports broadcasting.

Download: The full study is available here

2017 rugby finals weekend generates major income boost for Edinburgh

The 2017 European rugby finals weekend generated a total economic impact of £29.5 million (€32.7m) for the host city of Edinburgh, illustrating the strong legacy of the event beyond the field of play.

The showpiece finals of the European Rugby Champions Cup and Challenge Cup were hosted by Scottish Rugby at one venue (BT Murrayfield) on a single weekend for the second time and the direct economic benefits for the Scottish capital were recorded at £21.3m (€23.7m) in a report by The Sports Consultancy, an increase of 58% when compared with the previous season in Lyon.

EPCR Director General, Vincent Gaillard, said: “EPCR has seen a considerable boost in interest from cities, leagues and unions for hosting the outstanding rugby experiences of our finals weekend and this is reflected in the economic impact on Edinburgh.

“It shows that the event engages with all sectors of the rugby community and particularly, the fans, whose passion helps to make the competitions what they are.”

Scottish Rugby’s Chief Operating Officer, Dominic McKay, said: “It is fantastic that our successful bid to bring the pinnacle of European club rugby to Edinburgh and BT Murrayfield generated such a positive financial impact of £21.3 million for the city and £29.5 million for the wider Scottish economy.

“The event drew over 80,000 rugby fans from across the world to the finals and that demonstrates how attractive visiting Edinburgh is, and the huge role that sport plays in the economy. We were delighted to host such a prestigious occasion in the country’s biggest stadium and intend to bring other similar international events to Edinburgh, and Scotland, in the coming years.”

The strengthened and more robust tender process for the finals weekend saw unprecedented interest from cities in both emerging and traditional rugby markets, culminating in the landmark award of the 2018 event to Bilbao and 2019 to Newcastle.

EPCR has received a further boost for 2020, with 18 expressions of interest received for the weekend that will showcase the 25th final of what is now the Champions Cup. The successful venue will be revealed in summer 2018.

Matthew Wilson, Director of Consulting at The Sports Consultancy, added: “Our research shows that hosting the European club rugby finals weekend left a strong legacy locally and a positive impression of Edinburgh as both a holiday and business destination.

“Hosting such a prestigious weekend of sport not only brings significant income into the local economy, it offers a year-round global marketing opportunity, substantially boosting future tourism.”

Birmingham Airport unveiled as first National Partner for IAAF World Indoor Championships 2018

Birmingham Airport has been unveiled as the first National Partner for the IAAF World Indoor Championships Birmingham 2018.

The international airport is located just a few miles from Arena Birmingham, the venue for the four day Championships, which will welcome more than 400 athletes from 150 countries.

The Championships, which will be staged from 1 to 4 March 2018, will be the biggest indoor sports event to be held in the city for 15 years and it will be the first time that any country has held the outdoor and indoor world championships back to back, following London’s successful staging of the IAAF World Championships last month.

Championships Director Joan Durose said: “We are delighted that Birmingham Airport has come on board as a national partner for the IAAF World Indoor Championships.

“The airport has a key role to play in welcoming our international visitors to the city and with the expansion of their route network, and an increase in the number of airlines operating from the airport, more athletes than ever before will be able to fly direct to Birmingham.”

Jo Lloyd, Birmingham Airport’s Commercial Director, said, “We are extremely proud to be able to support this significant sporting event and become its first official National Partner.

“The Championships are a natural fit for us given the close proximity to the Arena and the fact that we will be the ideal gateway for those attending. It will allow us to showcase our airport brand to global audiences and as a gateway to the many wonderful places to visit within the Midlands region.”

Sky Sports agree rights deal for Wilder-Ortiz heavyweight title fight

Sky Sports have agreed a deal to show the upcoming world heavyweight title fight between Deontay Wilder and Luis Ortiz.

The American is set to put his WBC belt on the line at the Barclays Center, Brooklyn, in the early hours of Sunday, November 5.

The undercard includes the likes of Bermane Stiverne, Dominic Breazeale, Sergey Lipinets and Akihiro Kondo.

“We’re thrilled to be showing this huge heavyweight fight on Sky Sports, just a week after Joshua-Pulev,” said Sky Sports’ Head of Boxing, Adam Smith.

“Wilder is the WBC holder and is always exciting to watch and Ortiz is tricky and talented.”

 

UNILAD agree deal to live stream British Basketball League games

British Basketball League (BBL) has announced a deal to live stream a game each week on UNILAD and UNILAD Sport’s Facebook pages, the former of which has 32 million followers worldwide.

UNILAD is set to show live BBL games in full for the entire 2017-18 season and will also feature highlights packages to help ensure the sports secures more coverage than ever before.

Every BBL fixture is already being shown on LiveBasketballTV (242 games in total) and BBC Sport will be broadcasting 23 live games from December.

Ed Dowdell, UNILAD’s Sports Commissioner, said: “We are really excited to be working with the British Basketball League and can’t wait for the season to get underway from Worcester on Friday.

“We’re looking forward to bringing our fans a game each week and showcasing the best of British basketball to our global audience.”

Bob Hope, BBL Commercial Director, added: “This is yet another chapter in the story of BBL’s unrelenting pursuit to become a major professional sports league in the UK.

“Our agreement with UNILAD is a great opportunity and also links closely to our Digital Strategy, which is evolving rapidly as we try to maximise the growing popularity of the sport.”

The first game to be streamed will be on Friday 29 September when Worcester Wolves entertain London Lions.

Saracens agree three-year partnership with Thomas Cook Sport

Aviva Premiership rugby union side Saracens have announced a three-year partnership with Thomas Cook Sport.

The travel agent will become the club’s ‘Team Travel supplier’ for the Senior Squad as well as Supporter Travel.

As part of the deal, Thomas Cook Sport will develop a range of exclusive offers for Saracens fans, many of whom will be following the team in Europe this season.

Mitesh Velani, CEO of Saracens, said: “On behalf of everyone here at Saracens we are delighted to announce Thomas Cook Sport as our Preferred Travel Supplier. Thomas Cook Sport are a leader in sports travel for both professional sporting organisations and fans so it’s great to have them on board as we begin another exciting season both at home and abroad.

“Their commitment to our fans, players and everyone connected with the Club will play a vital role in bringing Saracens fans around the world closer together, both at the Allianz Park and on the road.”

 

Rob Slawson, Head of Thomas Cook Sport, added: “Saracens have proved themselves as a top side in the English & European game in the last few seasons, their Premiership win in 2015/16 followed by two back to back European titles is a truly incredible feat and we’re delighted to add them to our growing Rugby Union & Team Travel portfolio.

“We are looking forward to contributing as much as we can to the team’s continued success by delivering our best in class Team Travel service for the Saracens squad and offering excellent travel packages for their passionate supporters.”

FA announces Women’s Super League restructure

The Football Association (FA) has today approved changes to Women’s Super League licences, meaning the top tier of English women’s football will be only for full-time clubs from the 2018-19 season.

All clubs will be required to re-apply for their places, while new teams will have an opportunity to secure a license and join the top tier.

Current WSL tier one clubs have until 10 November to submit their applications and teams outside tier one will be able to apply in March 2018.

In an official statement the FA said the restructure had been sanctioned to create a “stronger commercial model” and to “improve the performance of the women’s game on and off the pitch”.

Katie Brazier, The FA’s head of women’s leagues and competitions, said of the news: “This announcement is a landmark moment for women’s football in this country. The changes will continue our journey to transform key elements of the women’s game.

“Providing an elite performance environment that will produce more and better players, increase the interest and excitement via a more competitive league, attract a greater number of fans and in turn deliver improved commercial viability for clubs and the leagues.

“The decision was made following a full review of women’s and girls’ football competitions and extensive and valuable dialogue with the clubs, who have been really supportive of the changes being introduced.”

New Orleans Pelicans partner with Coca-Cola

The New Orleans Pelicans have announced an agreement with Coca-Cola Bottling Company UNITED, Inc., naming Coca-Cola the Official Soft Drink Partner of the New Orleans Pelicans.

Pelicans President Dennis Lauscha, said: “With over 100 years in the beverage industry, Coca-Cola UNITED and its local bottling companies have earned a world-renowned reputation as a leader in the community. I particularly want to thank the great people of Coca-Cola UNITED and its New Orleans associates.

“We are thrilled to partner with Coca-Cola and bring its products to the Smoothie King Center, which will only further enhance the fan experience.”

Coca-Cola Bottling Company UNITED has been active in partnering with local teams, organizations and institutions for more than 115 years.

Similar to the Pelicans, the goal of Coca-Cola Bottling Company UNITED has always been to help provide memorable experiences through the enjoyment of quality products, promotions and entertainment.

Rocky Weigand, Crescent City Division Director, Coca-Cola Bottling Company UNITED, Inc., added: “Pelicans fans will now get to take in a winning Pelicans season while enjoying refreshing Coca-Cola products.

“We are so proud of this partnership because it’s an expression of the pride we take in New Orleans. We’ve partnered with the New Orleans Saints since day one of the team’s inception so this is really a natural fit for Coca-Cola UNITED.”

Eurosport announce record-breaking year for cycling coverage

Eurosport today pledged to continue to invest in its industry-leading coverage of cycling after it was announced more fans tuned in to the sport’s flagship events in 2017 than ever before.

Record numbers switched on Eurosport’s unrivalled coverage of cycling’s Grand Tours – the Giro d’Italia, Tour de France and Vuelta a España – with the broadcaster reporting a 26% increase in average live audience numbers versus 2016.

The 2017 Vuelta a España alone saw Eurosport achieve an average live audience of 1.3 million, a 46% increase on the previous year. The broadcaster’s average audience across all Vuelta coverage (live and non-live) reached 1.1 million, up a staggering 81% from 2016.

An average live audience of 785,000 watched the 21 stages of Eurosport’s coverage of the Tour de France in July, a 10% rise from 2016. Eurosport’s innovative, all-screens approach to covering the sport’s biggest race in 2017 – which for the first time saw every minute broadcast live – was recently rewarded with a nomination in the ‘Best Live Event Coverage’ at this year’s TV Sports Awards.

In May, an average of 1.3 million viewers watched Eurosport’s live coverage of the Giro d’Italia (+21% vs 2016) with 4.8 million fans tuning in during the final stage. During the event, Eurosport partnered with CA Technologies to take fans closer to the peloton than ever before with upgraded App experience providing individual rider GPS and biometric data, such as their altitude, speed, power, cadence and heart rate, in real-time.

Eurosport CEO, Peter Hutton, said: “We pushed the boundaries of innovation in 2017 with the first live broadcast in 360 Virtual Reality during a professional race at La Route du Sud in June and we believe there is room for even more innovation in our coverage.

“We are also aiming to feature more local experts on-site at future major events who’ll discuss the big stories of the day to their local audiences, while we will look to further unlock the power of data to explain the sport and help meet our goal of being the natural home of every cycling fan on digital and broadcast platforms.”

Hutton added: “It’s been a fantastic year for cycling on Eurosport and our investment in local production and data continues to pay dividends. Our numbers are all the more impressive when you consider we broadcast 40% more live hours of coverage for the Giro d’Italia and an additional 28% for the Tour de France, meaning we essentially have more fans watching for longer.”

READ MORE: Peter Hutton interview | Linear TV channels and the importance of exclusive content

Premier League and EFL clubs invest in virtual replacement perimeter technology

A number of Premier League and English Football League (EFL) clubs have invested in new perimeter technology this season, which gives them the ability to integrate ADI and Supponor’s virtual replacement technology.

Virtual replacement technology makes it possible to deliver traditional LED perimeter advertising to fans within the stadium, whilst virtually overlaying the content seen by viewers watching in different countries.

The new platform adds value to the media space by creating a highly targeted platform for brands to localise their message for audiences around the world.

These systems have already been installed at Everton, Derby County and Crystal Palace, with another due for delivery at Brentford Football Club in October.

New systems will also be installed at three more Premier League and Championship clubs during the current season.


ADI’s CEO, Geraint Williams, said: “It’s an incredibly exciting time for the commercial potential of perimeter media value.

“Virtual Hybrid technology makes it possible for media rights owners to commercialise the same in-game inventory in multiple markets, on many different platforms, and offer a highly targeted solution for partners.

.”Whilst our Virtual Hybrid technology is already well proven in a live stadium environment and on commercial broadcast feeds, the next step now comes in bringing more clubs, leagues, federations and broadcasters together to define the commercial model to make virtual overlay a reality.”

Charlie Marshall, COO at Supponor added: “There is a clearly a demand from clubs and brands across the world for a solution that integrates virtual overlay technology with LED.

“Our technology has been deployed on non-LED signage throughout La Liga, NHL, and Serie A over several seasons and will now accelerate the rollout on LED.”

Virtual Hybrid digiBOARD was awarded Gold at the Sports Business Awards in 2017 and is a finalist for this year’s Football Business Awards, taking place in London.