The World View: Around the world in five insightful articles
April 27, 2023
We have been touring the world in our articles over the past six weeks, from Africa we have flown to Lausanne, the Middle East, Asia, Lausanne and the US. Here is a recap of what we have learnt so far.
Cynthia Mumbo, CEO Sports Connect Africa, explains some of the challenges the sports business has in order to grow in Africa.
Despite Africa’s sports business industry’s potential for growth and development, significant challenges must be addressed. One of the most difficult challenges is infrastructure. Africa has 54 countries, over 2000 languages, and a wide range of cultures and norms. What works in Nigeria may not work in Ghana or elsewhere in Africa to the east. It is critical to comprehend these dynamics.
Read the rest of her piece here
Donal McElwee, Head of Middle East and Africa for Portas Consulting, talks about sports growth in the Middle East.
A recent World Economic Forum report suggested that the Middle East’s sports industry is expected to grow by 8.7% by 2026 – compared with global sector growth of 3.3% over the same period. This is driven by a significant public investment, underpinned by both economic and social policy ambitions, and increasingly supported by local and global private sector investors.
Read the top 10 drivers of sport in the Middle East here
Unmish Parthasarathi, Founder and Executive Director of Picture Board Partners, writes about why India and cricket are a commercial match made in heaven.
Cricket is a whole new ball game when it comes to India, a media market unlike any other in the world – it’s the lone BRIC worth building a house in! One notable international benchmark is the $71.3 Billion sale of 21st Century Fox to Disney, the Hotstar-Star Sports combine was reportedly valued at 20% enterprise value or $14bn.
Read the rest of Unmish’s thoughts here
During March Madness, Sportico’s Eben Nova-Williams and Lev Akabas looked into how it works on a commercial level.
The SEC sent eight teams to this year’s tournament, more than anyone except the Big Ten, and those teams will end the tournament having played 17 games. Each game played will be worth roughly $2 million, according to Sportico’s calculations, paid out in annual installments through 2029, bringing the SEC’s haul to roughly $34 million. The Big 12 is next with 16 games played for $32 million, followed by the Big East with 15 games for $30 million.
Find out more about March madness here
Deputy Secretary General of the World Obstacle Federation, Michel Cutait, looks into the sources of income for sports federations
To understand this reality, it is necessary to discuss the business model of these organisations, which are commonly set up as non-profit associations.
Being a non-profit organisation means that the organisation cannot share its profits among its members. So, unlike a for-profit company or corporation, the purpose of an association (or sports federation) is not to make a profit but to develop its purposes regarding the sport they are governing.
