INTERNATIONALSPORT(S) MARKETING

Lecture at the Ghent University, January 22, 2016

Bert Van der Auwerabert@rsca.be | @Bert_VdA

one

THE BASICS

THE SPORTS MARKET IS UNFOLDED BY SPORT(S)MARKETING

Definition?

• Marketing of sports• Marketing through sports

Gray and McEvoy, 2005

• Domains of Sports MarketingFullerton and Russel

Merz, 2008

Sale Image

Spectator Sports Participation Sports

B2C B2B

Sports Products Non-Sports Products

Traditional Approach

Integrated Approach

Licensor Partner

Sponsor Partner

Athlete / Club Organisation

Theme Based

Alignment Based

Product Based

Sports Based

Domains of Sports Marketing

Whatever you want to do…

KNOW WHOYOU ARE

(And write it down in a mission statement)

The Mission Statement

• is sacred

• and the basis of your framework

• which determines your playground

• for everything you do

• and anything you want to achieve.

History can’t be changed

• 1905• Champions: 1955 … 2005/6/10/15• To 2nd division in 1975 ‘til 1989• Financial troubles• Sold to Abramovic in 2003

But the future is yours

If you want to work for a brand

but you can’t live with its past,

then don’t lose any more time

and find yourself another job.

KNOW YOUR FANS

Know your fans

• no two fans are alike

• they all are client and manager in one person

• you have determined the strategy

• they have an opinion

• use it to strengthen your brand

…ALL YOUR FANS

Know your fans

• not all fans are your friends

• not all fans share your values

• fans can destroy your image

• dare to stand up for yourself

• it’s your house, you decide who’s welcome

Know where you are and who’s around you

• know where you operate

• know your opponents

• get a stable spot in your home market

• use that stability to develop yourself

• so you can grow and expand

• no homebase = no base at all

Your origin will always be part of you

• be proud of it

• use the best of it

• claim it

• market it

• it’s the start of your globalisation

two

THE STRATEGY

Never forget…

YOU’LL BE OUTONE DAY

(It’s your role to make sure your brand won’t)

Whatever you want to do…

KNOWLEDGEIS KING

(And lady luck has been replaced by data management as queen)

Individual, linear data Strategyfans and clubs clients and brands

Analytics

Example 1

• Season ticket holder• Regular ticket buyer• Irregular ticket buyer• First time ticket buyer

Different approach but……is there a diversified focus?

And what about invitees, former ticket buyers,…?

Definition of some type of fan

Case: RSCA youngsters

Case: RSCA youngsters

Case: RSCA youngsters

Data management strategies

• are crucial to every other strategic decision

• are a corner stone of whatever CRM system you use

• CRM is a corner stone of your marketing

• CRM gives you the basis to turn your fans into clients

• But… bad data management = bad CRM = bad results

New expectations

New playing field

• you have to win your audience each match night

• the number of options is growing constantly

• consumers pick based on a number of criteria

• but they never pick the option that doesn’t respect them

New possibilities

three

THE BUSINESS

Sports clubs, sports brands…

• are companies

• operating in a market

• competing with other companies

• but sell something all business models hate: emotions

THERE’S ONLY #1

It’s hard to get to the top, but it’s much harder to stay there.

• sports business is about competition

• in a competition, only the best wins

• so try to be the best

• but know your own limits

• and grow step by step

• or all you’ll ever do, is fail.

Know your possibilities

• when your Mission Statement determines

your framework and your vision your goals,

your budget determines your strategy

• work with it and try to make it grow,

complaining about it won’t help anyway.

Know your focus and build around KPI’s

ExperienceDifferentiatePersonalize

ConnectUnite

Quality

Experience

AND THEN EVERYTHING CHANGES

Disruptive moments change the playing field

• Live television & Pay TV

• Bosman arrest

• UEFA Champions League

• Financial Fair Play

• The end of Third Party Ownership ?

The influence of live broadcasting - EPL

• In 1970, the FA Cup final between Chelsea v Leeds United

was watched by a record audience of 20 million people.

• In 1983, the first live match from the Football League since

1960 was screened on ITV.

The influence of live broadcasting - EPL

• In 1992, Sky acquired the rights to broadcast live fixtures

from the newly-formed Premier League in a deal worth

£304 million.

• 2012: BT & Sky - £1.006 / season

• 2015: BT & Sky – £1.712 / season

The Bosman Arrest - Background

• Belgian football player Jean-Marc Bosman wanted to

change clubs at the end of his contract in 1990, but the

high transfer money asked by his ‘former’ club made this

impossible.

• He went to court and win his case in 1995.

The Bosman Arrest - Impact

• From 1995 on, players could change clubs for free at the

end of their contract and nationality clauses ended.

• Players gained the power to negotiate: “pay or I leave”.

• The biggest (and richest) leagues/clubs started to attract

the best players.

TV money & The Bosman Arrest – Best friends

• Due to the growing money coming in from TV, leagues as

the EPL could pay higher wages to players than others.

• Due to the freedom to change clubs, the best players went

to the best paying clubs.

The ultimate league with the ultimate money:THE UEFA CHAMPIONS LEAGUE

• UEFA launched the UCL in 1992 (UEFA Cup 1 before)

• Two big disruptive changes:

• Group Stages (1992) – more top TV matches

• Opening for non-Champions – more famous clubs

The ultimate league with the ultimate money:THE UEFA CHAMPIONS LEAGUE

• 2013 UCL Final: 360 million viewers

• 2012-2015 prize money: € 910 million (2000: € 397m)

• € 500,7m fix + € 409,6m “market pool”

• 2015-2018: +30% but with higher ‘compensation’ towards

UEFA Europa League

UEFA Financial Fair Play to avoid a “banking crisis for clubs”

• Voted in 2009 and implemented from 2011/12 season

• Sanctions to be taken against clubs who exceed spending,

over several seasons, within a set budgetary framework.

• To reduce the huge debts of 3 of the 5 biggest leagues

• To reduce the impact of “investors without limits” (?)

FIFA ending the Third Party Ownership

• Voted in 2014 and implemented from May 1, 2015

• “Third parties” owned “partial rights on players” leading

to the question “who decides on the career of the player”

and leading to criticism of “trading of human beings”.

• Impact will be huge (mainly South America, Portugal,...)

AND THEN… THE WORLD OPENED

Sports are part of a globalised world

• new investors

• new markets

• astronomic budgets

• more and more brands shifted from advertisers to owners

• sports have become an industry

New investors … with new scenarios

International Sports Marketing … by clubs

• The Manchester City case

Vs

• The Manchester United case

Manchester City

• Owned by Sheikh Mansour Al Nahyan (since 2008)

• Abu Dhabi United Group

• Subsidiary: City Football Group (13% sold to Chinese funds)• Manchester City FC (100%)

• New York City FC (w. Yankee Global Ent.)

• Melbourne City FC (100%)

• Yokohama F. Marinos (w. Nissan)

Manchester United

• Owned by [Malcolm] Glazer (USA) (since 2003)

• Also owner of the Tampa Bay Buccaneers (NFL)

• Latest expansion:

Manchester United TV broadcasting in China (2016)

Manchester City

• One brand, many clubs

• Expanding by

local investments

• Building network

of stars

Manchester United

• One brand, one club

• Expanding by

international distribution

• Building network

around stars

Same strategy as… Tomorrowland

THE IMPACT OF REGULATIONS

Many “disruptive moment” are an outcome of (changed) regulations… So, know your legal framework

• it’s looking over your shoulder at whatever you do

• you can try to ignore it but it will knock you down faster

than anything else

• so study it, analyse it, and never forget about it

• and anticipate on changes: be ready first to adapt!

Legislation is everywhere

• Local• National• European• Sports specific (disciplinary / arbitration)• Business• Commercial• IP• Safety & Security• and so many more…

NEVER UNDERESTIMATEEXTERNAL FACTORS

You don’t operate alone

• financial & economical crisis

• investors have smaller budgets, but they want bigger returns

• you know your contacts, but seldom do you know the

decision makers

• the personal connection is gone forever

In a globalised world…

• know what your investors want

• adapt yourself to the market

• analyse all possible risks

• create multiple strategies

• because anything can happen and you can only control yourself,

never the others

In today’s sports

• there is no existing risk management instrument

• there is no existing rating system

• there is no overall licensing system

• UEFA Financial Fair Play might become a first step

Can consumers predict the market?

Track your fans’ actions shift your investmentsspending matrix develop towards the spendings

four

INNOVATION

USE YOUR KNOWLEDGE TO

INNOVATE(AND TO DEVELOP

INNOVATIVE IDEAS FROM OTHERS)

Check where your fans are

And follow them

THE TIMES HAVE NEVER BEEN MORE

EXCITING(SO GO OUT THERE AND EXPLORE)

But… involve your fansif you want them to become customers…

USE YOUR INNOVATION TO

BUILD KNOWLEDGEUSE YOUR KNOWLEDGE TO

INNOVATE

Q&A

Bert Van der Auwerabert.van.der.auwera@rscanderlecht.be

@Bert_VdA