October Success for the Confederation of African Football: New Sponsorships and Partnerships

In this week’s View From Africa piece Cynthia Mumbo, CEO of SportsConnect Africa pens down how October has witnessed a series of significant milestones for the Confederation of African Football (CAF), with the announcement of crucial sponsorships and partnerships that promise to transform African football and have a broader impact on the global soccer landscape.

1. IMG: Official Sales Partner for CAF’s 11 Competitions

In a significant development for the Confederation of African Football (CAF), IMG has been appointed as the official sales partner for CAF’s 11 competitions. IMG will provide marketing intelligence, data analysis, and consultancy services to CAF, helping to maximize the commercial potential of its competitions and generate new revenue streams.

The appointment of IMG is a significant coup for CAF, as it is one of the world’s leading sports marketing and media companies. IMG has a proven track record of success in helping to commercialize sports competitions and events, and its expertise will be invaluable to CAF as it seeks to grow its reach and revenue.

2. Visa: Official Payment Partner for CAF Competitions

In another notable development, CAF has chosen Visa as the official and exclusive payment partner for several of its competitions, including the next two Africa Cup of Nations and Women’s Africa Cup of Nations.

This partnership represents a significant win for Visa, as it provides the company access to a massive audience of soccer enthusiasts throughout Africa. CAF competitions are among the most popular sporting events on the continent, presenting Visa with an ideal platform to promote its payment services to African consumers.

The agreement also reflects CAF’s growing commercial ambitions as the organization actively seeks more sponsorships and investments. The Visa partnership is a significant stride in this direction.

3. PUMA: Official Technical Partner of CAF

In a groundbreaking announcement, CAF and the renowned sports company PUMA have established a new partnership that designates PUMA as the official technical partner for several CAF events, including the TotalEnergies CAF Africa Cup of Nations Côte d’Ivoire 2023.

This collaboration, effective from November 1, 2023, will see PUMA supplying the official match ball for CAF tournaments and providing referees’ kits. Moreover, PUMA will engage in various marketing opportunities both inside and outside the stadium.

CAF President Dr. Patrice Motsepe expressed his delight in welcoming PUMA as a partner and highlighted how the agreement would aid in the development and growth of football in Africa. Johan Kuhlo, General Manager EEMEA Distribution at PUMA, emphasized PUMA’s commitment to working with CAF to create exciting products tailored specifically for African football.

4. Visit Saudi: Main Sponsor of the New African Football League

In a major development, the tourism board of Saudi Arabia, Visit Saudi, has stepped up as the primary sponsor for the recently established African Football League (AFL). This sponsorship agreement, initiated by CAF, encompasses the league’s inaugural season and holds the potential for multi-year extensions.

The partnership marks a significant achievement for Visit Saudi, aligning its tourism brand with one of Africa’s most prestigious soccer competitions. The AFL is set to attract fans and players alike, offering Visit Saudi an excellent opportunity to promote Saudi Arabia as a top travel destination.

This move also underscores Saudi Arabia’s burgeoning interest in soccer, with the country having already hosted several high-profile soccer events in recent years. It’s clear that the Saudi government is eager to position the nation as a key player in the global soccer landscape.

These recent sponsorships and partnerships achieved in October are encouraging developments for both CAF and the organizations involved, setting the stage for an exciting future in African football.

Streaming Leaders Post Subscriber Gains But Profitability Remains Elusive

Carlo De Marchis, ‘a guy with a scarf’ pens down this month’s business index.

Overall our index sees more positives than in the past months but the Sports category is the one doing less well. We want to focus our attention on the media and streaming sector with Netflix seemingly doing the right things in the current scenario and is up nearly 15% on the month alone. That’s a big move and continues a strong performance as Netflix is up around 50% this year vs the S&P 15%. .

Another notable winner is Draftkings but that we will cover in the next episode.

The latest quarterly earnings reports from major streaming platforms offer crucial insights into the state of the industry. By analyzing subscriber, revenue and profitability data, we can assess which players like Netflix and Disney are leading the pack. Streaming’s transition continues, but these financial results help gauge progress monetizing users amid economic uncertainty. Though challenges remain, the numbers reveal how media giants are adapting their business models to gain dominance as consumer behavior shifts. The earnings spotlight key inflection points in streaming’s competitive evolution.

What we learned:

In brief we were surprised by subscribers numbers going up and in many cases beating estimates
Price hiking has not scared too many customers
Password sharing restriction has not scared too many customers
The hybrid AVOD/SVOD/FAST model is in the works, too early to judge

Major streaming platforms Amazon, Disney, and Netflix reported third quarter earnings this month, highlighting ongoing subscriber momentum amid intensifying competition for market share. However, turning streaming to profit remains an uphill battle.

Netflix remains the leader in the streaming space with impressive Q3 subscriber additions showing its continued momentum. The company added 8.8 million global paid members, ending the quarter with over 247 million total subscribers. Growth was fueled by hit content like Stranger Things and Virgin River as well as new initiatives around advertising and account sharing. Netflix also posted improved profitability driven by price hikes and subscription monetization. However, the company still faces rising competitive threats as deep-pocketed rivals like Disney, Apple and Amazon ramp up investments in exclusive original content.

Though Netflix retains pole position for now, its content costs remain extremely high at over $17 billion per year. As economic conditions tighten and consumers reel in spending, Netflix will need to judiciously balance content budgets and regional strategies to maintain growth. Profitability gains are encouraging but larger challenges loom to defend its streaming dominance worldwide in the years ahead. Overall, Netflix remains the giant to beat, but its long-term trajectory will be shaped by how well it can evolve its business model and avoid missteps against hungry competitors.

Amazon also posted robust ad sales of $12 billion, up 26% year-over-year. This sets the stage for the retail giant to introduce an ad-supported version of Prime Video in 2024, further diversifying revenue.

Disney+ grew subscribers 12% to 152 million, but at a slowing rate of just 4 million adds last quarter. High content and marketing costs continue to weigh on profitability. Disney’s direct-to-consumer unit posted a $387 million loss for Q3.

Results underscore streaming’s transition pains. Subscriber gains highlight platforms’ growing scale and demand for on-demand video. Amazon and Netflix in particular showcased their ability to monetize engaged users through ads, price hikes and account policies.

But turning a profit remains an uphill battle, especially for Disney. With economic uncertainty ahead, financial discipline and savvy spending will determine which players emerge on top in the streaming wars.

For now, Netflix and Amazon look best positioned given their subscriber monetization progress and ad capabilities. But Disney’s unmatched brands and IP present an opportunity to play catchup if the company can judiciously rein in costs.

The path ahead will test streaming’s leaders as consumer budgets tighten. But quarterly momentum underscores these giants’ pole position as cord cutting accelerates. Where streaming’s profit puzzle will ultimately land is still coming into focus.

Looking into the categories

Streaming:

Divergent trajectories with players like Netflix and Paramount+ adding subscribers but also facing cost/profitability pressures.
Roku growing accounts and revenue signaling advertising rebound.
Pay-TV providers like Dish and Altice continue to lose subscribers to cord-cutting.

Media/Content:

Traditional media firms face growth struggles compared to digital/streaming.
Ad measurement provider Comscore saw modest revenue decline.
AMC Networks grew streaming revenue but overall company under pressure.

Tech:

Cloud services firms like Akamai saw solid enterprise security revenue but media delivery lagged.
Apple saw iPhone sales growth but slowdowns in other units like Mac.
Vimeo struggled with bookings/pipeline especially among SMB customers.

Overall themes:

Streaming services and digital media outperforming traditional media.
Economic uncertainty creating churn – winners adapt and highlight value.
Cost control and financial discipline critical in turbulent environment.
Choppy conditions persist but opportunities exist for firms able to execute.

AOB – Crypto back in fashion?

It will be very interesting to see if the momentum gathering in the crypto markets has any effect on areas of the Index. For those not watching Bitcoin (that tends to be the wider barometer) it has pretty much doubled this year and has steadily risen all year. It’s been out of the news and is it a coincidence that Roblox has also been very strong recently? One to watch….

Here’s the full index:

iSportConnect Welcomes EXL As New Partner

iSportConnect are pleased to announce EXL, a company that specialises in helping businesses to make sense of data and leverage AI to drive business growth, as the latest company to become an iSportConnect Advisory partner.

EXL, a publicly listed company (Nasdaq:EXLS), is an established leader in data and analytics and a global professional service provider. They hold a leading position in the sports analytics industry and work with several leading sports leagues and clubs, leveraging cutting-edge analytics to drive growth.

Besides sports, media and entertainment, EXL works with over 800 clients worldwide across a variety of industries including insurance, health, banking and financial services. They are bringing vast experience from these dynamic and hugely challenging verticals into the world of sport to help fuel sports’ digital and business transformation.

Anuroop Talwar, Vice President – Sports, Entertainment & Retail Analytics, EXL Analytics commented: “We are ecstatic to partner with iSportConnect to expand our reach within the global sporting community. We are looking forward to having the expert guidance of the iSportConnect team members in helping us build new and meaningful connections within sports”

Welcoming EXL as iSportConnect’s newest Advisory partner, Sandy Case, CEO of iSportConnect said, “A key component of working with any of our Partners is around both their product and their people. EXL are genuinely doing world class work with world class clients and our first meetings with the team reinforced the opportunity across the sport industry. We look forward to being part of the next stage of EXL’s growth in sport.”

iSportConnect Advisory

iSportConnect’s Advisory service works to help our clients grow – through commercial development, marketing and communications, global sports market entry and business strategy. Our global consultancy clients have included the likes of LaLiga, ITF, Vindicia, IAAF, Tata Communications, ITF and InCrowd among many others.

About iSportConnect

iSportConnect is all about helping organisations grow in the business of sport. Whatever the organisation. We launched in 2010 with the aim of bringing together sports business professionals around the world in a networking community enabling them to meet one another, find information and obtain access to a wide range of relevant services. The platform is now the largest global private network of sport business executives, where membership is exclusive and follows a strict door policy.

Topgolf Callaway acquires BigShots for $29m

Topgolf Callaway Brands Corp. has purchased certain assets from Invited, Inc. (“Invited”), the largest owner and operator of private golf clubs in the US, related to its BigShots Golf (“BigShots”) business.

The acquisition adds the BigShots brand and certain locations to the Company’s portfolio of U.S. venues, expanding its leadership position in off-course golf. The acquired BigShots’ portfolio includes four domestic venues, comprised of one owned venue and three franchise venues, as well as certain other development rights for other potential venues. Concurrent with this transaction, the Company has also entered into a preferred vendor agreement with Invited in which Topgolf Callaway Brands’ products and merchandise will be featured at Invited’s more than 140 golf and country clubs.

The purchase price for the initial closing is approximately $29 million. The Company expects the acquisition to be nominally accretive in its first year and contribute to scaling economics thereafter. The transaction is viewed as both financially and strategically attractive to both sides.

Chip Brewer, President and CEO of Topgolf Callaway Brands, said, “This acquisition will benefit all three segments of our business. We are essentially purchasing an additional off-course venue and the royalty stream from three franchise venues, including the option to convert those to Toptracer technology in the near future, as well as further building out and strengthening our future venue pipeline and growing our partnership with an important golf equipment and apparel partner, Invited – all for the price of approximately one Topgolf venue. This deal is a great example of the synergies associated with our portfolio of brands and its leadership position in Modern Golf. It is also just the beginning of what’s possible when two great brands combine their resources and creativity to develop programs that foster growth and further fuel the momentum in our game.”

San Francisco 49ers signs deal with Foliatti Casino

The San Francisco 49ers have announced a new partnership with Foliatti Casino, a Mexico-based casino brand with more than 15 years of market leadership.

The collaboration marks the first of its kind across the league and underscores the team’s ongoing commitment to bringing the team closer to its Mexican fanbase.

As part of this unique partnership, Foliatti Casino will serve as the presenting sponsor of 49ers Lucky Six via the team’s Spanish-language website, 49ers.com/esp. The free-to-play game will enable Spanish-speaking members of the 49ers Faithful to compete each week for the opportunity to win prizes such as official merchandise and casino credit. Furthermore, in the coming months, Foliatti Casino will be the presenting sponsor of an official 49ers Watch Party event for 49ers fans in Mexico.

“Our collaboration with Foliatti Casino represents an exciting milestone as the first partnership of its kind,” said Ryan Connors, Senior Director, San Francisco 49ers. “We’re thrilled to be pioneering this path with an authentic Mexican brand like Foliatti Casino, and grateful that it will enable us to engage with new communities in Mexico and provide unique experiences for 49ers Faithful across the country.”

As one of the most popular NFL teams in Mexico, this announcement represents a continued expansion of the 49ers brand into the Mexican market. Just last season, the organization hosted several events ahead of the NFL International Game in Mexico City, including fan rallies, watch parties, and a youth camp hosted by the 49ers Foundation.

“American football is one of the most followed sports in Mexico, so this is an exciting opportunity to connect with one of the most iconic teams in the league,” said Pamela Loman Huerta, Operations Director, Foliatti Casino. “The 49ers Faithful are remarkably passionate, and we look forward to showcasing our state-of-the-art casinos with them, while creating new joint experiences for our players and VIPs.”

Time To Face Reality: Why The Major Football Leagues Need To Get Used To The New Dynamics

Ian Whittaker, Twice City AM Analyst of the Year pens down why the major football leagues need to get used to the new dynamics.

We are truly into the flow of renegotiating the top tier football rights in most of the major European markets (except for Spain). So far, the picture does not look particularly pretty. In Italy, DAZN and Sky Italia have extended their hold on the Serie A rights up until 2029 and, while the headline price is only slightly below the current levels by low single-digits, once the inclusion of features such as archive rights (once bought separately) is factored in, then the decline is closer to 10%.

However, Serie A has got off lightly compared with the disaster of the Ligue 1 rights where the LFP (France’s footballing body) has scrapped the auction process and faces a potentially significant decline in revenues. It highlights how major football rights holders need to change their mindsets to reflect the growing economic reality of their traditional buyers.

To recap, the LFP was targeting €1 billion in revenues from the sale of the rights, a figure originally promised by Spain’s Mediapro in 2018. The hope was a familiar one namely that the entry of Tech giants would offset the relative decline of the power of the traditional Pay-TV platforms such as Canal+ and the sports-focused beIN and DAZN. After all, both Amazon and Canal+ already held the rights under the existing deal.

However, the LFP appears to have made two fatal flaws in its thinking. The first is a fundamental misunderstanding of why companies invest in rights. The second (and related) is to be caught in a mindset where it believed it could dictate the value of the rights to the market.

Commercial organisations are not charities. They buy rights because they believe – ultimately – they will make money from showing them. Timeframes may differ – Sky has an established subscriber base while DAZN may be thinking of the longer-term economics. Routes to profitability may also differ. A Canal+ may be thinking about how many subscribers and / or how much ARPU it can grow / keep but Amazon may be thinking more about the overall value from a consumer relationship such as additional retail sales. However, the need to make money (eventually) is the fundamental driver.

I mention what should be an obvious point because the clear reason why the bids did not attract the asking price was because economics for buyers simply do not make sense. Amazon may hold the rights now – only because it stepped in – but it could not make the numbers work. Canal+ may still be smarting over been passed over in 2018 for the rights but it will be monetary, not pride, factors that drove its decision. Ditto for beIN and DAZN.

It should also have been obvious if one thought about the wider dynamics. The traditional Pay-TV operators in Europe are seeing structural stagnation and / or decline in the numbers, impacted in part by streaming but also other factors (see below). Demographic trends – particularly around household formation – are less positive than they were. Interest rates, even if they remain elevated, are unlikely to come down to the levels they were which will constrain funding. Everyone is even more mindful of their financials in the current environment.

However, the key point is there is not enough scale in each of the five major markets in Europe to justify mass investment, particularly from the Tech giants. Amazon, Apple and Google have made major investments in US sports rights because the scale of both the advertising and subscriber bases are huge. That is not the case in Europe, including the UK. The advertising / demographic dynamics are smaller and the TV market is different.

That leads onto the second point. In economics, the phrase ‘producer capture’ relates to organisations that are run for the benefit of their employees or ‘producers’ not the end consumer. A similar dynamic seems to have built up amongst major football rights holders over the past few decades, fuelled by what had been until recently fierce competition for rights, with infusions of new money from sources such as the Middle East and Private Equity. The leagues got into the habit of believing they could dictate the price to the buyers. It feels like they are still stuck there to some degree at least.

Yet that will not work anymore. Publicly listed companies are beholden to shareholders who have made it clear they do not see the upside from aggressive bidding for rights. Moreover, as interest rates have risen and the flow of free money ended, the focus has shifted from growth to cash conservation. Even for sovereign-backed Middle Eastern buyers, their changing strategic priorities suggest buying European football content rights is not a core priority, even if they are buying the clubs.

What does this mean for the rights holders? For a start, they need to understand better the structural dynamics of their customers (who buys the rights) and the wider market and macro trends. They also need to face an uncomfortable reality. The days of European Pay TV companies growing as they did 15 years ago have gone and the Tech companies either don’t see sports as a priority (Netflix) and / or do not see the economics working (Amazon / Apple). Meanwhile, the specialist sports platforms (eg DAZN) are financially constrained. It is not an attractive message – but it is one that needs to be said.

As usual, this is not investment advice.

CoachList Forms Advisory Board and Leadership Council to Guide Growth

CoachList, the world’s first online marketplace and management platform for sports training and fitness instruction, today announced the formation of an Advisory Board and Sports, Fitness, and Wellness Leadership Council. These groups will provide invaluable guidance as CoachList pursues its mission of connecting consumers with sports and fitness professionals globally.

The Advisory Board comprises leaders from sports, media, and technology including former NBA executives Kiki Vandeweghe and Charles Rosenzweig, sports and media executive Chris Hannan, media, entertainment, and tech leader Kevin Conroy, former NBA player and coach Vinny Del Negro, and other experts from companies like the NBA, FOX Sports, and MGM Studios. This diverse group will provide critical insights across sports business, media, technology, and product experience to help guide CoachList’s rapid growth.

“We’re thrilled to have industry veterans like Kiki and Chris helping CoachList optimize our platform experience and telling our story,” said Jeffrey Idso, CoachList President & CEO. “Their expertise will be invaluable as we scale.”

The Leadership Council consists of physicians, researchers, broadcasters, and former pro athletes who will lead impact initiatives and advise CoachList on trends in sports science, medicine, media, and instruction. Notable members include physician Dr. Joyce Nuesca, broadcaster Jenny Taft, performance optimization expert Dr. Dustin Nabhan, NBA legends Chris Mullin, Sam Perkins, and Caron Butler, and former NBA player and current host of the Emmy Award winning program Inside the NBA on TNT, Kenny Smith.

“This council puts global experts right on our team so CoachList can continue improving lives through sport and fitness,” added Vandeweghe. “I look forward to working together to shape the future of this industry.”

Upcoming Events In The Sports Industry

We round up the upcoming events within the sports industry.

The New Era of Women’s College Sports

When: 7th November

Women’s sports in the U.S. have never been as popular as they are today. At the college level in particular, we’ve seen a tremendous increase in attendance and viewership for sports like volleyball, softball and basketball.

While there are several factors that have influenced the growth of women’s college sports, one of the most important is simply visibility. In the modern age, capturing viewers and growing a fanbase begins with the ability to create engaging content and distribute it to the masses. After that comes the campus superstars, local heroes, groundbreaking NIL deals, and historic media contracts.

In the latest webinar of Front Office Sports, The New Era of Women’s College Sports, presented by Magnifi, speakers will discuss how women’s college sports have gained momentum in recent years and the impact content and marketing can have on its growth in the future.

Digital TV Europe, TBI and Omdia’s Media & Entertainment Leaders Summit

When: 7 November 2023 in London!

The event will be held at the iconic Church House Westminster and promises to be an unforgettable experience where key decision-makers in the TV and video industry will share their knowledge and ideas on topics such as FAST channels, live-streaming, sports, super-aggregation, AI and sustainability.

Speakers confirmed include Google, LALIGA, TalkTalk, KPN, Samsung, Liberty Global, EBU and Zee Entertainment. Plus, a special keynote from Natasha Matos-Hemingway, Chief Commercial & Marketing Officer (CCM) of Shahid, MBC GROUP. So don’t miss your chance to interact with these leading tech companies and form new connections.

iSportConnect have an exclusive 15% discount for members – don’t delay, the early bird ends on October 12th. Book your tickets HERE.

iSportConnect Sports Content Protection and Anti-Piracy Summit

When: 9th November

Join us for the “Sports Content Protection and Anti-Piracy Summit,” where we unite to fortify the integrity of sports content distribution against piracy. At Pinsent Mason in London, on Thursday 9th November, we delve into safeguarding platform integrity, preserving media rights, and securing a premium, valued sports media ecosystem for fans.

We commence with insights from Mark Lichtenstein (Chairman, Sports Rights Owners Coalition) into the challenges and solutions for sports media rights protection and secure distribution. The summit will feature panels and discussions, including NBA, DFL, beIN and Warner Bros. Discovery, covering topics such as optimising content distribution through media platforms whilst maintaining defences against piracy threats.

Club América appoints IMG as commercial partnerships agency

Club América, the professional football team based in Mexico City, has appointed IMG as its commercial partnerships agency. The popular Mexican side, more commonly known as Las Águilas, is the most successful team in Mexico’s top professional football division, Liga MX.

Under the new agreement, IMG will look to leverage the club’s widespread popularity across North America to generate exciting new international sponsorship deals, with a particular focus on opportunities in the United States.

Club América, one of the founding members of the Primera División, has won more titles than any other team in Mexican football, winning a record thirteen league titles, six Copa México titles, and seven CONCACAF Champions League. It currently has the highest TV rating average for any soccer club in the United States and one of the largest social media followings and fanbase in North America.

Adolfo Bara, SVP & Managing Director of Football Events at IMG, said, “Club América is a club with an incredibly rich heritage and track record of excellence, both domestically and on the international stage. Its impressive and highly engaged fanbase is testimony to the club’s many successes on the field. We’re proud to partner with Club América to seek new commercial opportunities that can unlock further value for this iconic club in one of sport’s biggest markets and around the globe.”

Héctor González Iñárritu, Club América’s President of Operations, added that the Club is permanently seeking a closer relationship with global brands and agencies like IMG. He said: “We are sure that this alliance will support our growth in the USA and create more commercial opportunities for our Club. We’re also really proud to partner with IMG in a deal that will generate huge value on both sides.”

LA Lakers Dominate The NBA Brand Health Rankings

This month’s Brand Health Index powered by YouGov takes a trip across the pond to focus on NBA franchises with the LA Lakers coming out on top.

LA Lakers saw an impressive jump of 5.8% from 5.9 in October 22 to 11.7 in October 2023. The momentum is upwards despite the Lakers’ being eliminated from the Western Conference finals which led to LeBron James into thinking about his basketball future.

However, in the beginning of the season Los Angeles was one of the NBA’s best teams after its moves at the trade deadline, going 18-8 to end the regular season even without James. The Lakers then made an impressive run to the conference finals, knocking off second-seeded Memphis and defending champion Golden State, but ran out of steam against the powerhouse Nuggets.

Meanwhile, Boston Celtics recorded a 2.9% jump from last 8.3 in last October to 11.3 this October. The 2023-24 Boston Celtics have taken the NBA by storm as the Celtics started their season undefeated, sweeping the opening week with a 3-0 record.

The Boston Celtics will play their first game of the tournament on Nov. 10 against the Brooklyn Nets, and they will do so on a brand new court at TD Garden designed specifically for the NBA’s newest event.

The Golden State Warriors have made a jump of 1.4% from 83 in last October to 9.6 this October. Golden State Warriors have started their new season with a nail-biting 102-101 win over Sacramento Kings.

Here’s the full index: