EXCLUSIVES: Top 5 Opinions of the Week – 22/5/16

 
A New Dawn for West Ham

West Ham co-chairman David Gold has spoken to iSportconnect about a new dawn for West Ham, ahead of their move to the Olympic Stadium.

 

 

From the 2016/17 Premier League season they will have one of biggest club grounds in the UK – and are planning to make it the biggest in London.

Having already increased capacity to 60,000 from the original 54,000, due to demand, Gold revealed the club had even bigger plans, and believes it will elevate the team to previously unseen heights.

“Commercially it stands to reason that this is an iconic stadium that will attract players so we’re looking to bring in top quality players”

“A corporate advantage is endless to come to such an iconic stadium. We’ve gone from a 35,000 stadium at Upton Park to now a 60,000 seater stadium, of which 52,000 of those are season ticket holders; we have another 20,000 fans on the waiting list so you can see these are incredible opportunities for the football club”

Read more HERE.

The Next five years for British Rowing

It’s the age-old problem in sports broadcasting. How do you cover a sport that doesn’t take place in one enclosed place?

It’s a logistical nightmare. Particularly for rowing – TV crews have to cover up to two miles of water, which does not mix well with cameras.

British Rowing’s CEO Andy Parkinson admitted it was an area of concern for rowing. If events can only be covered by spending large amounts of money, clearly less events will be covered, which isn’t good for the growth of the sport.

“It’s one of the areas we’re looking at, we’re looking at how other sports do it. Our field of play is big, we need a lot of cameras. But the development of drone technology is something we’re looking at, we’re starting to look more at cameras on boats, which I think would be a great initiative. I think the general trend to sports presentation lends itself to representing the sport in a better more dynamic way.”

Find out more HERE.

Brands must respond to the rise of eSports

The man in charge of the famous Football Manager computer game series, Miles Jacobson of Sports Interactive, has warned the sports business world to ignore eSports at their peril.

Jacobson is studio director of Sports Interactive, owned by Sega, who develop the famous football simulation series.

The rise of professional gamers and eSports globally, has caught many traditional advertisers and brands by surprise. Although Jacobson thinks the industry is now reacting:

“Advertisers are really taking games seriously now, as they realise the amount of eyeballs they can reach… Part of that is through opportunities inside games.”

“So with Football Manager we have advertising hoardings around the side of the pitch, and it’s a key part when we’re looking at getting rights, is letting leagues know how many eyeballs their brands are going to be seen by.  The leagues and the clubs can use that to get their sponsorship deals up, because of the amount of eyeballs.”

Read more HERE.

Expert Reaction to Facebook agreeing live streaming deal with La Liga

The Spanish Women’s First Division fixture between Atletico Madrid and Athletic will be the first major European fixture to be streamed to Facebook by La Liga.

The match will be available worldwide in every country with no geo-blocking of content in place.

Stuart Ferreira-Cole is Regional Director of Western Europe for video technology experts Ooyala.

He believes this will be a trend for broadcasters in the future.

He said: “It is clear that audiences are becoming more and more fragmented as to where they consume content and so publishers are evolving their distribution strategies to follow their audiences.”

“As we saw with the Europa League and Champions League finals streamed by BT Sport on Youtube, so more and more rights holders will look to Facebook Live, where Ooyala is an official partner, to target a growing and highly engaged social audience.”

Read more HERE.

F1 needs change – Whitmarsh

One of Formula One’s most important figures in the last 20 years, former McLaren team principal Martin Whitmarsh, says F1 needs to rethink its strategy.

Whitmarsh spent almost a decade working for McLaren Racing, as CEO, and later as team principal, before leaving the sport in 2013 to work for Ben Ainslie Racing.

The main issue Whitmarsh has with the sport is the level of dominance Mercedes are enjoying – which is affecting interest levels.

“Formula One is a real challenge. It’s a technically advanced sport, it’s a great sport, and I had the pleasure of being involved in it for 25 years.”

“I look at it now with some sadness. What’s happened is the regulations have led down a path where you have a dominant team, and all credit to Mercedes, they’ve made a tremendous investment and commitment to that sport.”

Read more HERE.

ASOIF Seeks New Head of Administration & Projects

After nine years with ASOIF, health Tim Goethals, try the current Head of Administration & Projects, abortion has announced his departure from the role in order to seek out new challenges and take his career in new directions.

He will remain in the post until the end of April. Goethals has played a major role in the development and expansion of ASOIF during his time there and has overseen the establishment of several technology-based solutions which have enabled ASOIF to take on an increasing work-load in response to new challenges faced on behalf of the 28 International Federations which govern disciplines on the programme of the summer Olympic Games.

The processes and working systems he has established have laid the foundations for ASOIF’s future work through projects such as the development of the Olympic Games issue-tracking system and the ongoing IF Data Project now under cooperation with the IOC.

Although leaving ASOIF Goethals explained: “My new role, which will be confirmed shortly, will keep me working close to the IFs in Lausanne so this will not be a complete change of environment for me.”

ASOIF will immediately begin the search for a replacement whilst adjusting the role to bring it into line with the anticipated changes needed in the coming period in response to the rapidly evolving world of sport and its associated environment.

Details of the job description and application procedure can be found HERE.

RFU Posts Record £208m Revenue and Profit

The Rugby Football Union (RFU) has announced a record revenue of £207.9m for 2014/15 with a profit of £7.7m.

This is the first time the RFU has exceeded £200m in terms of its revenue. 

Read more HERE.

WADA Doping Report: Sports Business Industry Reacts

The sports business industry, like the entire sports industry, has been reacting to the findings of the report by the WADA Independent Commission.

WADA has recommended that the IAAF suspends the Russian Athletics Federation.

The WADA commission has also recommended that five athletes and five coaches be given lifetime bans.

 

Here are some of the reactions following the report…

UK sports minister Tracey Crouch

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Ian Prior, Head of Sport at the Guardian and the Observer

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Adrian Palmer, Managing Partner at Proven Legal Technologies said:

“Today’s report from WADA has exposed the extent to which both doping and bribery issues are running through the very heart of the athletics world . The industry must now identify anyone guilty of conducting such illicit behaviours and it is time to stop relying on just scientific tests to do so.

“Investigators have a responsibility to look at communications going back a number of years, from people at all levels within the industry. The key source of evidence to identify those involved will come in the form of emails, telephone calls and messages, not only to assess their content but also to detect who has been speaking and meeting with whom. This evidence will be used to gather a case against any further individuals, teams or even entire organisations.  

“Going forward, it is imperative that the sports industry now implements a more proactive method of monitoring the activity of individual athletes, teams and management. Investigators must be given permission to receive disclosure of communications and potentially require access to personal devices and location data where necessary.

“This approach, combined with tougher sanctions for those caught or aiding cheating, or manipulating finances, will be our best hope for stopping these violations occurring in the first place, and ensure the focus of competitions remains on sporting talent, rather than potential corruption. ”


IAAF statement:

In response to WADA’s Independent Commission report issued today, the IAAF President, Sebastian Coe, has taken the urgent step of seeking approval from his fellow IAAF Council Members to consider sanctions against the Russian Athletics Federation (ARAF).  These sanctions could include provisional and full suspension and the removal of future IAAF events.

Commenting on the report, the IAAF President said: “The information in WADA’s Independent Commissions Report is alarming. We need time to properly digest and understand the detailed findings included in the report.

However, I have urged the Council to start the process of considering sanctions against ARAF. This step has not been taken lightly. Our athletes, partners and fans have my total assurance that where there are failures in our governance or our anti-doping programmes we will fix them.

We will do whatever it takes to protect the clean athletes and rebuild trust in our sport. The IAAF will continue to offer the police authorities our full co-operation into their ongoing investigation.


Statement from USADA CEO Travis T. Tygart on the Russia report by WADA:

“USADA applauds the work of the WADA Independent Commission, led by Mr. Pound, in exposing a Russian effort to takeover sport through unlawful means. The evidence released today demonstrates a shocking level of corruption, and sends a clear message to Russia that they will not be allowed to cheat the world’s athletes and escape justice behind a wall of deception and lies.

If Russia has created an organized scheme of state supported doping, then they have no business being allowed to compete on the world stage.

The world’s athletes deserve better, and all who love clean sport must rise up and confront this threat.  We will continue to fight on behalf of all clean athletes to ensure that clear and decisive action is taken to sweep out anyone who has been involved with this scheme.”

USADA is responsible for the testing and results management process for athletes in the U.S. Olympic and Paralympic Movement.  USADA is equally dedicated to preserving the integrity of sport through research initiatives and educational programs.


Former British long-distance runner Paula Radcliffe

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Great Britain athlete Jenny Meadows

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DraftKings Teams up With Opta to Provide Soccer Data

Daily fantasy sports (DFS) platform DraftKings have signed a partnership with sports data provider Opta to supply all their live soccer performance statistics.

Opta will be providing live data coverage for all of the three leagues that DraftKings currently offers: Major League Soccer, symptoms English Premier League and UEFA Champions League.

More info HERE.

SportAccord Convention Elects ASOIF’s Ricci Bitti as new President

The SportAccord Convention has elected ASOIF President Francesco Ricci Bitti to serve as the new President of SportAccord Convention.

Gian Franco Kasper, AIOWF President and Senior Vice-President/Interim Chairman of the SportAccord Council, was elected to the Executive Committee of SportAccord Convention at the meeting of the SportAccord Convention General Assembly which was held earlier today.

“The SportAccord Convention has become a major event in the international sporting calendar, not only for the sports movement but also for the industry,” said Mr. Ricci Bitti.

“I have always been one of its greatest supporters. When I was asked to consider the position of President, I accepted the honour and I am fully committed to continuing the successful development of the SportAccord Convention.”

Ricci Bitti replaces Marius Vizer, who resigned from the position last month. 

SportAccord Convention have also confirmed that plans are underway for the 14th SportAccord Convention which will take place in April 2016, but as yet a host city hasn’t been found. 

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PGA Tour and EZLinks Golf Form New Company

The PGA TOUR and EZLinks Golf have announced the creation of a new company EZLinks Golf LLC.

The PGA Tour will team up with the golf course technology and services company to to grow the game through the production of industry-leading technology and marketing.

Full story HERE.

Pricing – The Ultimate Profit Maker – Jake Jones

Last month Wales played England in a Rugby International in Cardiff where match tickets cost around £65.

In just 5 months’ time the two teams will meet again in a World Cup group match at Twickenham where tickets on average are up to 5 times as expensive.

Two Circles’ Jake Jones looks at pricing, how to get it right and just how important it is to the bottom line.

So what makes the cost of tickets for a World Cup match so much higher than a Six Nations game?  Pricing is very often the marketing discipline that is the last to be considered.

Many marketers are more interested in the dynamic and exciting elements – branding, promotions, targeting – as the easiest way to unlock value, as opposed to a complex subject like pricing.

Simply said, of the three profit drivers – Price, Cost, Volume – pricing yields the biggest impact. The right price strategy has longer-lasting impact than cost reductions, is easier to implement than volume growth and has an immediate impact on profit.

This is as relevant for the sport industry as any other. There is a price component to all aspects of a sport’s strategy, whether it’s finding the balance of price points between season ticket and match day ticket prices, setting revenue targets for a membership product offer, or growing hospitality sales.

Handle this poorly in today’s digital era and your customers will tell you quicker than your balance sheet, giving you opportunity to get it right before it’s too late.

The challenge is maintaining sustainable margins in an ever-changing market, with high competition for a share of the customer’s wallet, whilst maintaining a healthy business, and ultimately a happy customer.

Da Vinci Delight – Art & Science United

Good pricing capability needs a blend of left and right brain application, creative and scientific, to deliver sustainable value.

The skill is to manage the tension between what is ‘Value’ and what is ‘Price’. Two Circles believe that competing on value derives a greater long-term return than implementing a short term tactical price change.

‘Value’ gives the customer what they want, at a price that they feel reflects the quality of the experience they are receiving. ‘Price’ is the transactional mechanism to put a financial number on this value exchange.

A deep-dive of customer behaviour using the right analytical capability is required to understand value.

This creates insight and evidence to determine the drivers of perceived value, allowing for creativity in determining the relevant customer offer. Technology can then be an enabler of providing this customer offer at a personal level.

Customers subconsciously create their perception of what is good value. Guiding them to the right offer is the responsibility of the organisation.

Being transparent by offering the customer clear minimum and maximum prices (in essence a  price corridor), understanding the relationship between price and demand, and testing pricing scenarios signals that guidance to the customer, and creates the opportunity to deliver real value.

The blend of left and right brain comes to play here. Left brain for the deep-dive analysis, right brain to help educate and communicate the value to the customer. They need to work in harmony to ensure the customer is satisfied.

Further value can be unlocked at a customer level. Creating a bundled offer that’s relevant to individuals, derives opportunity to monetise with further value-add packages.

If this understanding can be successfully built, sports organisations can use pricing to deliver sustainable value to themselves, and their customers. 

Deliver The Value

Data Driven Pricing is a not a new concept, but to do it well requires customer insight, data analysis and ownership of value by the customer relationship holder.

The uniqueness of a Rugby World Cup in the UK coupled with an in depth knowledge of rugby fans is the key to the pricing of the tickets for this event.

It is this knowledge and insight that maintains the balance between long-term value and short-term pricing, ensuring the customer stays happy.


Jake is Lead Consultant at data driven sports marketing agency, Two Circles, leading projects which include International and National Governing Bodies. Prior to Two Circles, Jake worked for 14 years at BP, developing expertise in strategic pricing, process improvement, and relationship & change management across its downstream business, culminating in managing the strategic relationship between BP and its Athlete Ambassadors at the 2012 Olympic & Paralympic Games. Jake has participated in triathlons for the past 14 years, and is a qualified coach in both triathlon, and running.

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